LC EIC Inquiry into the impact of the COVID-19 pandemic on the tourism and events sectors Submission 132 Bass Coast

Located 90 minutes south east of , Bass Coast is a much loved tourist destination, with the appeal of 177 kilometres of spectacular coastline complemented by rich farmland, tranquil hinterland and unique nature reserves. Bass Coast has an estimated residential population of 36,320 (2021) an enjoys an increase in population during the summer season to well over 80,000 people. Natural attractions and unique wildlife experiences include the world-famous Penguin Parade, the Nobbies, Phillip Island Nature Parks, fishing, camping, walking and cycling as well surfing this magnificent coastline. These key tourism strengths are supported by a year-round major events calendar with the Australian Motorcycle Grand Prix, World Surfing League’s Phillip Island Pro and a number of other key community and commercial events.

Importance of Tourism

Bass Coast is one of the most Tourism reliant communities in Australia with significant local, national and international visitation. For over 150 years Bass Coast has been accommodating people from all over the world as a destination to explore, travel and experience all that this region has to offer. Over this time our communities have grown, adopted and embraced the visitor economy. Recognition of this unique visitor experience has led to hundreds of thousands of international visitors arriving each year to experience the region, including the world- renowned Phillip Island Penguin Parade. This unique wildlife experience contributes to the international awareness and brand for Phillip Island and as a major primary reason for visitors to come to the state of . Tourism in Bass Coast has driven greater access to natural environments and the increase of supporting infrastructure. A focus on eco-tourism has also enabled greater preservation of natural environments including the Summerlands buyback scheme and the greater protection of critically endangered species.

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According to the Phillip Island Regional Tourism Summary as released by the Department of Jobs Precinct and Regions, the value of tourism was worth an estimated $529 million to the region’s economy, representing 43.9 percent of the region’s economy for 2018/19. Approximately 2.7 million domestic and international visitors travelled to Bass Coast and spent an estimated $578million in the year ending December 2019. Tourism accounted for an estimated 4,500 direct jobs and supported a further 1,400 indirect jobs totalling 46.8 percent of the region’s employment.

COVID-19 Impacts

The COVID-19 pandemic has had a significant impact on the Bass Coast economy and community. Impact from the pandemic has varied depending upon industry, location, customer base, business-preparedness and ability to respond. In the lead up to the pandemic, key economic indicators in Bass Coast were strong;  the unemployment rate at December 2019 was estimated at 3.7 percent;  strong population growth with average annual growth of 1.67%; and  significant Federal, State and private investment into the region. In response to the COVID-19 pandemic, Governments initiated a number of measures to contain the virus that had adverse impacts on business. Measures implemented included lockdowns, travel restrictions, international travel suspended, state & territories border closures, and capacity limits. The measures had significant and lasting impacts on tourism and events.

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Regions that have significant tourism industries and a reliance on international visitors including Bass Coast will likely be impacted greater and for a prolonged period compared with other regions. The COVID 19 pandemic, has put jobs at risk, many in micro, small, and medium-sized businesses that employ a high share of women, who represent 54 percent of the tourism workforce, according to the United Nations World Tourism Organization. The pandemic has led to widespread disruption and hardship to Bass Coast businesses and the community overall. Businesses in the entertainment/arts sectors, recreation, retail, hospitality, accommodation, tourism attractions, eateries and many others have been severely impacted and in many cases only survived due to government subsidies. Whist formal data is not available in many cases, the following provides generic indictors of impact.

Visitors: Bass Coast Shire Council manages three accredited Visitor Information Centers located in Cowes, Newhaven and Inverloch. The VIC Network welcomed a total of 108,008 visitors to the Bass Coast region in 2019/20, contributing $808,000 to the local tourism economy. Revenue comes back to Council from commissions on accommodation, attraction and event tickets bookings as well as advertising and retail sales. The Visitor Information Centres were closed to walk-in visitors from March until December 2020.

Cruise Industry Phillip Island welcomed 14 cruise ships and over 14,000 passengers to the Island in 2019/20 for an estimated economic impact of $2.5m. Phillip Island was the preferred regional port and second busiest cruise ship destination in Victoria behind Melbourne. Staff have worked closely with the cruise ship industry and Destination Phillip Island that resulted in this season’s increase from five visits in 2018/19. 19 ships were pre-booked for 2020/21 and cancelled their visits due to COVID-19 impacts on world cruise itineraries.

Events Council’s Events team support over 100 major and community events annually. All events were cancelled from March 2020 and some cancelled in the first quarter of 2021. A number of community-led event organizers have elected not to host events in 2021, given the additional compliance requirements and uncertainty. Since March 2020, the global outbreak of coronavirus (COVID-19) deeply affected the Bass Coast tourism landscape. In the six months ending June 2020, visitors (not including

Bass Coast Shire Council Submission into COVID19 effects on Tourism and Events April 2021 4 | P a g e LC EIC Inquiry into the impact of the COVID-19 pandemic on the tourism and events sectors Submission 132 international day trip) to the Phillip Island region (including Bass Coast) was 950,000, a decline of 484,000 visitors (-51%) compared to the same period in 2019. In the year ending September 2020 Bass Coast domestic overnight spend had fallen by 34% to $260 million, domestic daytrip spend had fallen 22% to $103million and international overnight expenditure in Phillip Island was estimated to be $19 million in the year ending September 2020, a decrease of 23 per cent year-on-year.

Bass Coast Shire Council Response

In response to the impacts of COVID-19, Bass Coast Shire Council (BCSC) established a COVID-19 Community Leadership Recovery Group to support BCSC decision making. BCSC responded to the challenges presented by the pandemic, acting decisively and allocated $965,000 for a Response and Recovery Package. A key feature of the Package was a Business and Community Resilience Grants Program, which delivered more than $700,000 to 133 businesses and community organisations across the Shire. The majority of the businesses applying for support from Council were accommodation providers, businesses in food and beverage, attraction and retail businesses.

Industry feedback Council Officers met directly with businesses, established the business engagement survey with over 120 local business representatives responding, and held ongoing discussions with local trader groups. From this engagement with the business community, the following key issues were identified;

 confusion and lack of clarity over COVID restrictions,  challenges with changing of restrictions and how they impacted their business;  lack of forward bookings to allow them to plan ahead;  managing cash flow;  retaining staff, managing staff throughout peaks and troughs of the pandemic;  managing cancellations and increased pressure from customers regarding restrictions  mental health and wellbeing of staff and owners;  constant need to adapt products and services with so much uncertainty;  significant reliance on Federal JobKeeper financial assistance;  uncertainty about the long-term future of tourism for the region;  difficulties sourcing material/products from overseas markets; Bass Coast Shire Council Submission into COVID19 effects on Tourism and Events April 2021 5 | P a g e LC EIC Inquiry into the impact of the COVID-19 pandemic on the tourism and events sectors Submission 132

 challenges accessing finance particularly from tourism related businesses;  Melbourne travel restrictions and State/Territory border closures, and international border closures; and  lack of consumer confidence to travel and host events.

Recommendations

It is crucial that all levels of Government support initiatives to build resilience in the tourism and events industries. This support will enable the sector to play its role in regrowing the economy and rebuilding our community. The aim is to develop better and stronger regional tourism products and experiences to meet the needs of post-COVID consumers. The Bass Coast Shire Council officers who prepared this response recommend the following:

1. Planning:: Develop a a state-wide and region specific recovery plan to guide the recovery of the visitor economy over the next five years,

2. Communications: Clear and timely information, to the tourism and events sector to enable certainty and consistency for their business operations,

3. Infrastructure investment: Work with Bass Coast Shire Council to fund priorities that will have lasting impact on the economy,

4. Fund: the signature visitor economy and town revitalisation projects in , Cowes and the proposed Dinosaur Trail identified in the Bass Coast Shire Council advocacy priorities,

5. Support: Fund and support initiatives of Phillip Island and San Remo Visitor Economy Strategy 2035, Growing Tourism and the Destination Management Plan,

6. Marketing: Provide a COVID recovery marketing fund to regional tourism boards specifically Destination Phillip Island and Destination Gippsland for brand marketing campaigns to drive visitation from domestic markets,

7. Events: Invest in a recovery package for the events sector and related supply chain businesses that support events. Expand the Gippsland Regional Events Acquisition Fund,

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8. Red tape:: Streamline the Public Events Framework and approvals process for event organisers; develop technology for events and venues to use large crowds.

9. Capacity building: Provide data and research that builds the capacity of businesses to inform business decisions,

10. Insurance:: Provide access to insurance protection through the Victorian Managed Insurance Authority for tourism businesses affected by the lack of access to, and affordability of, insurance coverage,

11. Labour market:: Address critical workforce shortages that have emerged as a consequence of the pandemic and deliver regional targeted skills and workforce planning to overcome skills shortages in the visitor economy,

12. Product development:: Develop an assistance program for operators looking to respond to COVID related changed travel and experience preferences so they can deliver new or improved experiences and products,

13. Innovation: provide a Product Development and Innovation Fund to support major attractions and infrastructure improvement,

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