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T O U R I S M V I C T O R TOURIS M VICTORIA INVESTMENT GUIDELINES FOR WINE TOURISM MINISTER’S FOREWORD Tourism is a big also receiving increasing inquiries from medium to small contributor to Victoria’s investors wanting to explore the possibility of investing economy representing in food and accommodation infrastructure in Victoria’s 5% of Victoria’s Gross wine regions. Inquiries like these provided the basis State Product and 6% for preparing these Guidelines, with wine producers, of all employment. investors, developers, local government, and community There are many factors groups being the target audience. behind Victoria’s increasing success in The Guidelines are thought to be the first of their kind by tourism, but one is the any Australian tourism agency, thus highlighting Victoria’s spectacular growth in interest in leading this important segment of Australia’s wine tourism. This small but growing segment of our tourism market. The Guidelines summarise the issues that tourism industry is becoming more and more visible need to be considered in investing in wine tourism - from to our domestic and international markets. concept to reality. Victoria claims to be Australia’s food and wine capital, I commend the Investment Guidelines for Wine Tourism. supported by some 22 wine regions and over 400 wineries. Encouraging visitors to Victoria to experience our provincial food and wine first-hand, spreads tourism benefits across the State and generates many flow-on benefits to regional cities and towns. Wine-related tourism is not new. Visitor infrastructure at many regional wine areas is first-class. Many established vineyards are now upgrading cellar doors and new projects are under development or being scoped. JOHN PANDAZOPOULOS MP These include significant investment in restaurants and Minister for Tourism and Major Events accommodation which are new business activities for many vineyard owners. In some cases, new investors are behind these proposals, forming innovative partnerships with the vineyards and adding to the marketing of Victoria’s wine regions. Associated off-vineyard investment in wine tours, food and accommodation in regional wine centres, and small town master plans that highlight wine production are also adding to Victoria’s momentum in wine tourism. While Victoria is making good progress in wine tourism, as Tourism Minister, I want to quicken the pace. Tourism Victoria is receiving more and more inquiries from vineyards big and small about how to develop their investments into tourism destinations. We are 1 TABLE OF CONTENTS Introduction 03 1. Context for Investment in Wine Tourism 05 1.1 International 05 1.2 What’s on Offer - Victoria’s Wineries 05 1.3 Importance of Tourism at Regional and Local Levels 06 1.4 Strategic Direction 06 2. The Regional Context 07 3. The Market at a Glance 09 4. Developing the Concept 11 4.1 Assessment of a Wine Tourism Project 11 4.2 Key Factors 12 4.2.1 Regional Character 12 4.2.2 The Customer Base 13 4.2.3 Competition 13 4.2.4 Brand Positioning 13 4.2.5 Financial Resourcing 14 4.2.6 Staff Resourcing 14 4.2.7 Alliances 14 4.2.8 Promotional Support 14 4.2.9 Product Mix 15 5. Financing Wine Tourism 16 5.1 Who is investing in Wine Tourism? 16 5.2 Why invest in Wine Tourism? 16 5.3 Business Planning and Obtaining Finance 18 5.4 Issues for Obtaining Finance 18 5.5 Structural Options 19 6. Planning and Design 21 6.1 The Planning Framework 21 6.2 The Planning Process 22 6.3 Other Approvals 22 6.4 Planning and Design Issues 22 6.5 Local Government 24 7. Case Studies 25 7.1 Red Rock 26 7.2 Hanging Rock Winery 28 7.3 Lyre Bird Hill 30 7.4 Warrenmang 32 7.5 Pettavel 34 7.6 Brown Brothers 36 8. Project Development - Summary Checklist 38 9. Key Contacts 40 10. Selected References 42 Disclaimer 42 2 Investment Guidelines for Wine Tourism Chateau Tahbilk INTRODUCTION Writer and humorist, Fran Lebowitz, has noted that: “... food is an important part of a balanced diet”. Increasingly, it seems, wine is becoming an ‘important part’ of the Victorian tourist experience. What is wine tourism? It is usually not the sole reason we travel yet Victoria’s Wine and food seems to focus regional cultural burgeoning wine (and food) industries are adding differences in a way that no other pursuit does. new dimensions to the enjoyment of regional Victoria. One thinks of the fortified wine (and characters) Travellers are increasingly seeking a more rounded of Rutherglen; the Italian heritage of the King Valley; engagement with the characters, places and culture Yarra Valley sophistication; Mornington’s professionals. of their chosen tourist destinations. Wine - its growing, It is also a logical partner to the other things for which production, tasting and consumption - provides an we travel - rest, business, seeing friends, golf, fishing, easy social entry point for most of us and an absorbing landscape, adventure and so on. enthusiasm for others. 3 As time goes on it is becoming difficult to separate in 1974 pioneered the concept of a major ‘ground-up’ out ‘wine tourism’ from just ‘tourism’. However for wine tourism complex with restaurants, merchandise, the purposes of these guidelines investment in wine farmers markets, reception facilities, cellar door, concerts tourism is taken to mean: (and even a ‘model farm’) established to lure the visitor to the Goulburn. • Direct investment in a winery or vineyard to service tourists. Examples are: cellar door sales, As visitation has grown, the question of accommodation accommodation, café/restaurant/epicurean has become increasingly relevant to some wineries’ centre, education, conference facilities, etc. development. Different responses have emerged - B&B’s have suddenly become part of the Victorian culture • Investment in infrastructure not at the winery but and can now be found as a part of many wineries’ developed as an adjunct to a winery experience offer; Natalie Pizzini has made the Whitfield pub an or trading in support of a winery experience - easy way to spend another day in the King Valley; All hotels, gourmet foods, restaurants, specialty Saints specialises in weddings and receptions; Chateau shops, attractions. Yering and the Lancemore Group’s hotels have elevated • Investment in promotional ventures designed to wine touring to a five star experience and opened up encourage tourism based on the attractiveness of wine possibilities for corporate conferences. imagery or product - trails, festivals, concerts, and so on. Why Invest in Wine Tourism? Background to wine tourism in Victoria The last ten years have seen an explosion in planting and Travelling through rural areas has been part of the wine production in Victoria. Competition is fierce and Victorian scene since earliest European settlement. In many small and medium size growers must establish the 1846 the Argus notes that visiting Bendigo vineyards to ‘next step’ for their business. Wine and food tourism purchase wine and grapes was a popular part of everyday gives winemakers an opportunity to relate directly with provisioning. More recently, W.S. (Sam) Benwell’s Journey their customers building brand loyalty and providing into Wine (1961) reported the special joys of sampling direct income from restaurants, accommodation and the winemaker’s art on site - even if he was speaking at, the other ancilliary businesses. For the investor, the perhaps, the lowest point of the Victorian wine-making growth in regional tourism and the interest in lifestyle industry’s history. He wrote: “A list of the wines which product - especially food and wine - can offer a rewarding have gone forever from our tables would make mournful investment vehicle. reading ... What is left in Victoria that is drinkable? ... Who makes it, and how did the vineyard come to be there? ... Purpose of These Guidelines To find the answer to these questions, one must make Tourism Victoria works to position Victoria as the leader a journey ... wine is always best when it is drunk near its in attracting investment in quality tourism infrastructure. own soil”. Wine and food writers also encouraged the It facilitates projects by providing strategic focus and advice gourmet tradition - Peter Smark, Dan Murphy, Len Evans, to public and private sectors. Investment Guidelines for David Dunstan, James Halliday and others all contributed Wine Tourism is the second in a series, following Tourism to a new public interest in wines and winemaking. But it Victoria’s Building Tourism from Concept to Reality published was Rutherglen’s Wine Festival of 1967 (later the Winery in 2000. The establishment of the Victorian Wineries Walkabout) which heralded the possibilities for a new Tourism Council (VWTC) in 1992 to provide advice relationship between wine, travel and recreation. The to the Minister has been pivotal to the growth and introduction of the Wine Equalisation Tax with subsequent importance of wine tourism. concessions for cellar door sales has re-enforced the financial significance of on-site sales to most growers. Tourism Victoria assists in the improvement of Victoria’s tourism assets by identifying economically and socially Most typically, the development of wine tourism in sustainable infrastructure opportunities which will maintain Victoria has been an incremental process. Sales from the the state’s competitive edge. The wine industry is rapidly winery have led to basic cellar door facilities perhaps with emerging as an area in which Victoria has special strengths access to ‘behind the scenes’ wine-making. Bill Chambers’ and potential. Rosewood Winery at Rutherglen retains the informal charm of this first step whilst places like Chateau Tahbilk Wine producers and investors both require background introduced cellar door sales into historic buildings to information to make informed assessments of the wide provide genuinely world class environments, bursting range of wine tourism options and approaches available to with heritage and a real sense of place.
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