CASE PROGRAM 2011-76.1

Werribee Open Range Zoo (A)

In April 2008, plans to construct an African-themed amusement park at the Werribee Open Range Zoo became public. The proposal for the $220 million, 40 hectare park was devised by Village Roadshow, a company which ran a number of successful theme parks on Queensland’s Gold Coast. In return, the company was reportedly seeking a 99- year lease on the publicly-owned park plus a $100 million contribution from the Victorian Government. The plan had in-principle support from the Premier and Tourism Minister who believed it would be an important addition to the state’s tourism offerings and had the potential to attract an additional one million tourists to the park each year. However, a number of former Zoo directors and interest groups, including Friends of the Zoo, had serious concerns about the proposal. They felt that it was an inappropriate use of a public asset and would detract from the Zoo’s core purpose – education and animal conservation.

Zoo background

Located approximately 30kms south-west of Melbourne, the Werribee Zoological Park (later renamed Werribee Open Range Zoo) was opened in 1983. Set on 200 hectares of grassland, the Zoo aimed to recreate the African savannah. Its animal collection of 56 different species featured cheetahs, lions, hippos, giraffes and the largest herd of zebra outside Africa. Widely recognised as one of the most significant collections of its kind, the Open Range Zoo was home to a number of threatened species including Southern White rhinos. Furthermore, several of those species could no longer be brought into Australia. The zoo also boasted many rare indigenous plants and acted as a seed bank for local revegetation projects.

This case was written by Marinella Padula, Australia and New Zealand School of Government for Professor John Alford as a basis for class discussion rather than to illustrate either effective or ineffective handling of a managerial situation. Cases are not necessarily intended as a complete account of the events described. While every reasonable effort has been made to ensure accuracy at the time of publication, subsequent developments may mean that certain details have since changed. This work is licensed under Creative Commons Attribution- NonCommercial-NoDerivatives 4.0 International Licence, except for logos, trademarks, photographs and other content marked as supplied by third parties. No licence is given in relation to third party material. Version 30052011. Distributed by the Case Program, The Australia and New Zealand School of Government, www.anzsog.edu.au

Aside from its conservation activities, the Zoo was also a significant tourist destination attracting close to 270,000 visitors annually (Exhibit A). It had also won numerous industry accolades for its innovative and unique tourist offerings which allowed the public to view animals at relatively close range in a naturalistic setting. Activities included slumber safaris where visitors camped overnight in tents within the facility.The zoo complex also featured a replica African village and function centre used for private and corporate events. Admission fees in February 2007 were $22 (adults), $11 (children) and $52.40 (family pass).

The Open Range Zoo (along with Melbourne Zoo and Healesville Sanctuary) was managed by Zoos Victoria, which in turn was governed by the Zoological Parks and Gardens Board – a statutory authority established in 1973. Board members were appointed by the Victorian Minister for Environment and Climate Change. The Board’s role, as outlined by the Zoological Parks & Gardens Act 1936, was to oversee and facilitate the:

• exhibition of zoological specimens to the public; • scientific study of zoological specimens; • instruction and entertainment of the public; • protection, preservation, management and care of wildlife; • protection or preservation of wildlife habitat including native plants and trees.1

While financial statements specific to Werribee were not publicly available, the Zoos Victoria 2006-2007 Annual Report revealed that the three zoos combined operated at a loss of $455,000 (Exhibit B). Donations, sponsorship and government grants constituted a significant source of revenue but in the face of rising operating costs, some close to the Open Range Zoo privately worried about its financial future.

The Zoo (Exhibit C) was part of the larger Werribee Park Tourism Precinct which included the National Equestrian Centre, Shadowfax Vineyard and Winery, Werribee Park Golf Club, the Victorian State Rose Garden and the historic Werribee Park Mansion. The latter incorporated the Sofitel Boutique Hotel and Day Spa. Another facility immediately adjacent to the Zoo was Melbourne Water’s Western Treatment Plant – an 11,000 hectare site which treated over 50 percent of Melbourne’s sewerage and yet was also one of Australia’s most important bird sanctuaries.

Situated within the City of Wyndham, the Zoo was also located near some of Melbourne’s fastest growing residential areas. Werribee was the closest major suburban centre where families with dependent children made up almost 45 percent of households.2

African Safari World

In 2007, Village Roadshow submitted a proposal to the Victorian Government to construct a $220 million, 40 hectare theme park called African Safari World within the Werribee Open Range Zoo. Village Roadshow was a Melbourne-based company whose

1 ‘Zoological Parks & Gardens Board’ Zoos Victoria, www.zoo.org.au Accessed July 2008. 2 Population Forecasts, Wyndham City Council www.wyndham.vic.gov.au Accessed July 2008.

Version 30052011 2 www.anzsog.edu.au businesses activities included movie production and film distribution, both in Australia and overseas. The company also owned and operated several Gold Coast theme-parks: Warner Bros. Movie World; Sea World; Wet ‘n’ Wild Water World; and the Australian Outback Spectacular.

The company planned to base the project on parks such as Florida’s Disney Animal Kingdom and include state-of-the-art rollercoasters, water rides, live shows, shopping and restaurant facilities. The plan also included increasing animal numbers, creating an educational conservation centre and improving park habitat. Village Roadshow anticipated that African Safari World would generate 6,700 jobs during construction, employ approximately 500 staff3 and attract 1.3 million tourists annually.4 In turn, it sought a 99 year lease on the Zoo and a reported $100 million contribution from Government.5 The company hoped to start work on the park in 2009 for a late-2010 opening. Village Roadshow’s International theme parks chief John Harnden (former Melbourne 2006 Commonwealth Games boss and Australian Grand Prix CEO) believed the park represented a major opportunity for the state:

“It’s about giving all of those millions of existing tourists even more to do in Victoria, and to stay longer and spend more money…Theme parks are one of the most popular things people want to do on their holiday, so this is about branding Melbourne and indeed Victoria to the world. This is something that is going to be iconic, something that we can be proud of.”6

Anthony McIntosh, chief executive of the Victorian Tourism Association, a peak body representing more than 650 operators, agreed saying that, “This is a product which we know works. This particular proposal is based on an American model and that works. Village Roadshow theme parks have a good track record.”7 He felt that the proposal had been well developed and noted that the animals would be kept quite separate from entertainment-type activities.

Tourism Minister Tim Holding also supported the proposal. “From our perspective, this is a very exciting proposal…We have been concerned for some time that without a theme park here in Victoria, we are losing potential visitors from interstate and overseas… We think it’s a fantastic proposal, it’s one that we want to give very serious consideration to…It’s one that we think can bring great benefits, not only to Victorian families who have to fly...all the way to the Gold Coast, to see world-class theme parks.”8 Previous governments had attempted to draw a major theme park to the state without success – Melbourne’s unstable weather had been cited as a factor.9

3 Tait, C ‘Not so wild about zoo theme park’ Herald-Sun 7 May 2008 4 Bowlen, K. ‘Theme Park plans for Werribee Zoo’ Stateline Victoria ABC Television, Broadcast: 30 May 2008. 5 ibid. 6 Rolfe, P. ‘Melbourne's $220m plan for super park’ Herald-Sun 6 April 2008. 7 Bowlen, K. ‘Theme Park plans for Werribee Zoo’ Stateline Victoria ABC Television, Broadcast: 30 May 2008 8 ‘Victoria's African Safari World to pinch Qld theme park crown’ Courier Mail, 6 April 2008. 9 Millar, R ‘Red flag over zoo theme park’ The Age, 1 July 2008.

Version 30052011 3 www.anzsog.edu.au Nonetheless, Premier John Brumby was positive about the proposal, provided adequate safeguards could be put in place to protect the animals and the zoo: “People keep saying we need more jobs in the western suburbs where people live, where the population is growing. This meets those objectives. [Village Roadshow] put a huge amount of work into [the plan]. They have a reputation nationally and internationally. I guess Sea World is the best example, where they do these things well, where their standard of care of animals is considered to be amongst the very best in the world.”10 Wyndham Council also gave the plan in-principle support, providing a number of issues were addressed. Said Mayor Kim McAliney:

“While the African Safari World proposal would provide a number of exciting opportunities for Wyndham, Council’s support for the project is dependent on the provision of adequate road infrastructure and public transport services.…Council will also seek clarification as to how the proposal will be designed to maintain the visual amenity of the area while addressing the acoustic impact on surrounding residents. Minimising negative impacts on existing residents is a key issue that Council will highlight to the State Government.”11

Howls of protest

When the park plans became public in April 2008, there was also immediate opposition. Christina Dennis was President of Friends of the Zoo, a volunteer organisation with some 65,000 members. She had grave concerns over the proposal: “Giving away the land, the animals, the infrastructure to a private company? I can’t see how if you’ve got a conflict between shareholders’ profits and breeding programs, that the shareholder profits wouldn’t come first…To have screams and shrills that you would get from a roller coaster ride, I think would be upsetting for them [the animals]…I can’t imagine any animal, even humans, getting used to that sort of noise.”12

Former Werribee Open Range Zoo Director David Hancocks also had significant issues with the plan: “Although I have nothing against theme parks,” he said, “the idea of locating a theme park on top of a zoo is reckless, because they’re incompatible with one another. It would completely destroy the whole purpose of the zoo, which is to provide education and forge links between people living in the suburbs and wildlife. The thrill rides will completely overwhelm the zoo experience. From my point of view, the whole idea is ludicrous and it would be an enormous backward step for the zoo.”'13 He also added that:

“There’s some sort of tragic element to all this. What the theme park ends up saying is that the animals have no value, they’re there just [as accoutrements] to a day out and... don’t play a central role in the zoo’s focus.”14

10 Bowlen, K. ‘Theme Park plans for Werribee Zoo’ Stateline Victoria ABC Television, Broadcast: 30 May 2008 11 Media Release ‘Council Supports Further Investigation of Theme Park Proposal’ Wyndham City Council 3 June 2008. 12 Tait, C ‘Not so wild about zoo theme park’ Herald-Sun 7 May 2008 13 ibid 14 Hutchinson, T ‘Victoria's state zoo to become an amusement park’ The 7.30 Report, ABC TV Broadcast: 1 May 2008.

Version 30052011 4 www.anzsog.edu.au Another former director, Peter Stroud, believed Village Roadshow had failed to value Werribee Zoo properly: “If it was any other sort of takeover, they’d pay for the asset and therefore perhaps they should pay for the animal collection,” he said. “It’s just very difficult to arrive at a realistic figure. I think effectively the collection is priceless.”15 Andrew Vizard, a former board member with Zoos Victoria agreed:

“Let’s have a look at exactly what Village Roadshow has put on offer. What is it they're actually offering to the people of Victoria? Is it something unique? Are they coming with new and novel intellectual property that they hold? And, I think the answer to that is, ‘No’…Literally, we’re sitting on [an animal collection] which could not be replicated by a private company, but if they tried to do it, would take probably 10 years and probably hundreds of millions of dollars in the end…I’d imagine that other organisations such as the art gallery or whatever might be wondering if it could happen to them. If an organisation might come along...and say, ‘Can we put a whirligig next to them and give us the art gallery?’”16

While it was not yet clear exactly how the partnership would work, Zoos Victoria Chairman Andrew Fairley said that although he was not opposed to a theme park adjoining the zoo, he believed control of the zoo should remain in public hands: “There is no need for that to include this obligation, or this takeover of the Werribee Open Range Zoo. We think we do it much better,” he said.17

Critics expressed concern that, thus far, Zoos Victoria had not had any input in drafting the plans and that the process had been handled in a secretive fashion. A television report on the theme park revealed that Senior Village Roadshow executive Robert Kerby had been board member of Zoos Victoria from August 2006, until resigning in October, 2007 after telling the chairman about his company’s plan to take over the zoo.18 Meanwhile, The Western Region Environment Centre told the State Government it would only support a theme park in the area if the park was carbon-neutral and protected the area’s biodiversity.19

In May, it was revealed that an interdepartmental committee set up by the Victorian Government was examining the proposal and due to deliver its findings over the next few months. From there, the Government would decide whether to proceed with the theme park.

15 Bowlen, K. ‘Theme Park plans for Werribee Zoo’ Stateline Victoria ABC Television, Broadcast: 30 May 2008 16 Bowlen, K. ‘Theme Park plans for Werribee Zoo’ Stateline Victoria ABC Television, Broadcast: 30 May 2008 17 ‘220m theme park proposed for Werribee Zoo’ ABC Melbourne, www.abc.net.au/news 6 April 2008, Accessed July 2008. 18 Hutchinson, T ‘Victoria's state zoo to become an amusement park’ The 7.30 Report, ABC TV Broadcast: 1 May 2008. 19 Zonneveldt. M ‘New attack on Werribee Zoo theme park transformation’ Herald-Sun, 6 June 2008.

Version 30052011 5 www.anzsog.edu.au Exhibit A: Zoos Victoria Visitor Numbers 2006-2007

Source: Zoos Victoria Annual Report 2006-2007.

Version 30052011 6 www.anzsog.edu.au Exhibit B: Zoos Victoria 5 Year Financial Summary

Source: Zoos Victoria Annual Report 2006-2007.

Version 30052011 7 www.anzsog.edu.au Exhibit C: Werribee Open Range Zoo Map

Version 30052011 8 www.anzsog.edu.au