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National Trust of Australia Victoria1.05 LC EIC Inquiry into the impact of the COVID-19 pandemic on the tourism and events sectors Submission 094 16 April 2021 6 Par iament P ace East Me bourne VIC 3002 Emai : [email protected] The Secretary Web: www.nationa trust.org.au Economy and Infrastructure Committee Parliament House, Spring Street T 03 9656 9800 EAST MELBOURNE VIC 3002 E: [email protected] Re: Inquiry into the impact of the pandemic on tourism and events Dear Committee, Thank you for the opportunity to provide a submission regarding the inquiry into the impact of the pandemic on tourism and events. The National Trust of Australia (Victoria) (National Trust) is Victoria’s largest community- based heritage advocacy organisation actively working towards conserving and protecting our heritage for future generations to enjoy, representing 35,270 members throughout Victoria. The National Trust is Victoria’s leading operator of historic properties and heritage attractions, managing over 40 historic properties across the state, with 26 open to the public prior to the 2020 COVID-19 pandemic. Our property portfolio is diverse, including historic mansions, a remnant rainforest, a tall ship, a gaol, and a mill, just to name a few. The National Trust prides itself on providing public access to our sites and running a range of exciting events and attractions for visitors both local and international. As Victoria’s premier heritage tourism organisation, the National Trust has an interest in ensuring that tourists can continue to enjoy access to our significant locations and events. We are an independent, non-government and not-for-profit organisation. While independent of government, we work collaboratively with Government, local councils, businesses, local communities and individuals to strengthen heritage protection, increase community involvement and understanding of, and the need for heritage conservation and provide tourism and engagement experiences for diverse audiences. The National Trust believes that cultural heritage has an essential role in providing and strengthening tourism and events access in Victoria and Australia, and that there are many untapped opportunities that could be explored by the State Parliament moving forward. The protection and activation of heritage places and spaces, including places of Aboriginal, non- Aboriginal, cultural, and social significance, provides significant economic benefits, as well as non-economic benefits including supporting social wellbeing, and community identity. Heritage tourism has far-reaching advantages, including injecting new money into the economy through developments; creating jobs, work opportunities for volunteers, events and attractions. It promotes conservation and presentation of heritage; and helps build vital relationships within local and regional communities. Socially, heritage tourism helps to build social capital; promotes preservation of local traditions, customs and cultures; provides opportunities for research, education, life-long learning; and boosts local and regional 1 LC EIC Inquiry into the impact of the COVID-19 pandemic on the tourism and events sectors Submission 094 investment in heritage resources and amenities that support tourism services. While environmentally, it encourages a culture of sustainability; increases the knowledge, awareness, understanding and commitment to the value of places and attractions; and encourages locals and visitors to be more mindful about their impact on the natural and built environment. Visitor benefits include, heritage tourism experiences that create a deeper understanding of a place; greater satisfaction gained from well interpreted heritage tourism experiences; and visitors feeling as though they are contributing to the history of a place and its culture through participation in heritage experiences.1 Globally, heritage tourism has become one of the largest and fastest growing tourism sectors, with the United Nations World Tourism Organisation estimating in 2017 that more than 50% of tourists worldwide are now motivated by a desire to experience a country’s culture and heritage. Research indicates that visitors to heritage-based activities are more likely to seek high value experiences and deliver a higher spend than nature-based activities. Within the context of tourism and events, cultural heritage organisations such as the National Trust of Australia (Victoria) have the capacity to provide significant value to the community, and economy. The impact of COVID-19 on tourism and events Like many other institutions, the National Trust has been hit hard by COVID-19. Approximately 70% of our revenue is derived from the interaction of people with our sites (such as tourism activity, admissions, events, and filming). Lengthy closures due to COVID-19 restrictions have had a significant impact on our bottom line. While JobKeeper has enabled us to keep most of our employees engaged, and “keep the lights on”, to date we have not received additional funding from the Federal or State Government. As a case study example, the Old Melbourne Gaol is located in the Melbourne CBD and was open daily from 10am till 5pm prior to the pandemic. Before restrictions the Gaol was the most profitable metropolitan property under National Trust management, providing essential revenue to support the National Trust’s mission and operations. The site runs tours and interpretive experiences for visitors and a range of educational activities are available for school groups. In 2019, the last full year the National Trust operated without the impacts of the COVID-19 pandemic, the Old Melbourne Gaol generated $3.2M in revenue. This was a profit of $1.6M, while other National Trust operations were at a loss of $1.1M. The result was that the Old Melbourne Gaol accounted for 320% of National Trust profits for 2019. Any revenue loss at the Old Melbourne Gaol has a far greater impact on profit for the National Trust than any other property. Before international border restrictions in February 2020 the Gaol had been averaging visitation of approximately 10500 people a month since July 2019. In early February 2020, Australia closed its borders to travellers who had left from, or travelled through, mainland China. Between January and February 2020 visitation at the Gaol dropped by 51%. This was followed by an entry ban on all non-citizens and non-residents to Australia on March 20th. Between February and March visitation at the Gaol reduced by a further 33%, and at 12pm on March 23rd 2020 the Old Melbourne Gaol closed its doors to visitors entirely. These statistics on visitation show the reliance on international and especially Chinese tourism that a CBD based site like the Old Melbourne Gaol has. 1 Department of Jobs, Precincts and Regions, Regional Tourism Review, 2019 2 LC EIC Inquiry into the impact of the COVID-19 pandemic on the tourism and events sectors Submission 094 Despite a brief two week opening in June 2020, the Gaol was essentially closed from late March until late November 2020. During the closure the interpretation available at the Gaol was redesigned and a new activity, the Cluedo Experience was launched. This activation was in partnership with the global Cluedo brand. The Gaol is now open 5 days a week and average visitation over January, February and March 2021 is at 21% compared to average visitation at the same time last year. Without further support, or significant increases in revenue, the Trust faces an existential crisis. The places we manage, that Victorians assume will always be preserved, are under threat if we cannot maintain financial stability. The National Trust is in need of urgent support to ensure our capacity to protect our properties for future generations of Victorians. As the previously most successful area and the hardest hit by the absence of international tourism, our CBD sites require new promotion, activation and support. Furthermore, the Trust’s capacity to maintain and protect our properties needs to be strengthened. We currently act as Committee of Management for 9 State owned properties, including the Old Melbourne Gaol. Whilst some funds are provided through the Department of Environment, Land, Water and Planning, this support is insufficient to sustain the ongoing protection and engagement of the properties for the enjoyment of the Victorian public. The National Trust has been trying to negotiate management agreements with the Department of Environment Land Water and Planning, to guarantee protection of these important heritage assets, thus ensuring the funds the Trust spends in addition to running and operating the premise could be used to greater maximise and provide return for the Trust and the visitor economy. There is a significant need in the short-to-medium term to support the National Trust’s capacity to reopen our remaining sites to the public and to run engaging events, to ensure our recovery and survival from the effects of COVID-19. We can no longer rely on international travellers to boost visitation at our metropolitan sites and therefore we must look to encourage and sustain visitation with our available domestic audience. Due to the drastic loss in revenue we have endured over the past year, this can only be achieved through funding support. The National Trust is also exploring new avenues to capitalise on our ability to attract visitors and advertise our brand throughout Victoria. Below we discuss opportunities which could be considered by Government to support heritage tourism in the current climate. 1. Tourism As an organisation we have suffered with a decrease in attendance to our metropolitan ticketed venues. We have also become aware of the public need to discover local regions and their offerings due to the restrictions on travel, especially through cultural and natural experiences. To come back from this remarkable situation caused by the pandemic and demonstrate relevance and importance, the National Trust will continue to highlight its contribution and significance in the tourism sector. In 2019 the Regional Tourism Review Discussion Paper noted: Only 1 per cent of visitors to the regions are international, compared to 9 per cent in Melbourne.
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