LC EIC Inquiry into the impact of the COVID-19 pandemic on the tourism and events sectors Submission 084 INCORPORATED Level 1, 48 Brougham St Australia 3220

T: 03 5223 2588 F: 03 5223 2069 I: 61 3 5223 2588

ACN: A00 286 22D ABN: 26990 691 173 14 April 2021

The Secretary Economy and Infrastructure Committee Parliament House, Spring Street EAST VIC 3002

Dear Secretary,

RE: INQUIRY INTO THE IMPACT OF THE COVID-19 PANDEMIC ON THE TOURISM AND EVENTS SECTORS

Thank you for this opportunity to contribute to The Legislative Council’s Economy and Infrastructure Committee’s inquiry into the impact of the COVID-19 pandemic on the tourism and events sectors. This inquiry is a welcomed recognition of the challenges that are being faced and the struggles still ahead for the tourism and events industry, as the country establishes its COVID-normal behaviours and lifestyle changes. The Visitor Economy in Victoria needs support with its recovery and resilience building in the wake of the pandemic’s direct impacts on our tourism and events industries. Tourism Greater Geelong and The Bellarine is the regional tourism organisation spanning from Werribee to Armstrong Creek including Geelong, The Bellarine, Queenscliff and the Moorabool Valley. Our submission has been developed on behalf of and in support of the local tourism and events industry represented by our 800- strong membership base and in partnership with our municipal partners, the City of Greater Geelong, and Golden Plains .

Pre-COVID the $1.1 billion Greater Geelong visitor economy was a significant contributor to the local GDP representing 25% of total spend and supporting 1 in 10 jobs attracting over 6.4 million visitors who spent 5.7 million nights within the region in 2019. Primarily a domestic short break market, Victorians made up 84% of total visitation to the region, half of which came from as close as Melbourne, an hour drive down the highway. In addition to the region’s strong business and leisure travel, Geelong welcomed over 4,000 international students who resided in the region during 2019 and whom contributed in excess of $128m to the region’s economy on top of course fees.

With the addition of international flights through from 2018, increased connectivity to Melbourne via road, train and ferries plus a looming convention and exhibition centre, the region was on track to surpass it’s 2027 targets of becoming a $1.7b economy attracting over 7.5 million visitors.

COVID-19 has directly impacted the visitor economy through restrictions on travel and social distancing and an indirect impact due to a deep, if expected to be brief, Australian economic recession. The pandemic has proven detrimental to the prosperity of the tourism industry within Greater Geelong forcing mass business closures, lost income and unemployment, all underpinned by great uncertainty.

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LC EIC Inquiry into the impact of the COVID-19 pandemic on the tourism and events sectors Submission 084 INCORPORATED Level 1, 48 Brougham St Geelong VICTORIA Australia 3220

T: 03 5223 2588 F: 03 5223 2069 I: 61 3 5223 2588

ACN: A00 286 22D ABN: 26990 691 173 The key challenges our region is set to face through the second phase of recovery include:

• Greater concentration of visitor spending on weekends away from weekdays; • Increased profitless volume in 2020/21 – with visitation doing better than spending and restricting visitor economy profitability; • Visitor accommodation properties in the Greater Geelong region will have a highly variable recovery depending on their market mix and financial reserves; • Staffing the Greater Geelong region visitor economy will have fresh challenges of training and recruitment of Australian workers in the recovery phase; • Expected shifts in international visitation once borders re-open; • Increased need for more urgent Government delivery of investment in visitor economy game changing projects in the Geelong region. E.g. progressing Geelong City Deal Projects such as the Geelong Convention and Exhibition Centre and need to attract private investment in product and experience development projects that will drive visitation.

It is also expected that the regions visitor profiles will significantly change over the next three years. The fastest markets to recover will be the lower yielding markets of domestic day trips and visiting friends and relatives (VFR) travel. Following the extended lockdown period, the region has noticed a flurry of holiday bookings, particularly for weekend travel and very minimal for mid-week.

What is certain is that tourism will not come back the same nor will traveller patterns, profiles and booking behaviours. We need to support the tourism and events industry in preparing for and adjusting to a new normal.

To echo the comments made by the Victorian Tourism Industry Council, ‘the recent events in southern Queensland and northern NSW are a stark reminder that the impacts of this pandemic continue to challenge our operations and reinforce the fragile nature of any recovery for our industry. These ongoing disruptions only serve to substantiate why the industry needs continued support at both the State and Federal level to sustain a solid pathway to recovery.’

We strongly support the initiatives and recommendations outlined in the latest version of the Visitor Economy Recovery Plan set by the Victorian Tourism Industry Council as a blueprint for recovery designed to rescue jobs and rebuild our industry as we face the ongoing challenges of COVID-19.

Economic Impact

Data presented by ID Consultancy showed three of the top five sectors impacted by COVID-19 in Greater Geelong are part of the tourism industry with the accommodation and food services by far the greatest hit, with a combined loss of $127m for the June 2020 quarter alone. Other sectors within the tourism industry included retail which recorded a loss of $87m and the Arts with a loss of $67m, close to 26% of Greater Geelong’s $1.1b visitor economy.

Prepared by Decisive Consulting in March 2021 on behalf of Tourism Greater Geelong and The Bellarine, the following table details forecasts under both a slow and fast recovery scenario for the Greater Geelong region.

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LC EIC Inquiry into the impact of the COVID-19 pandemic on the tourism and events sectors Submission 084 INCORPORATED Level 1, 48 Brougham St Geelong VICTORIA Australia 3220

T: 03 5223 2588 F: 03 5223 2069 I: 61 3 5223 2588

ACN: A00 286 22D ABN: 26990 691 173 Mental Health and Wellbeing Impact

This is one of the most critical issues facing the tourism and events industry post lengthy business closures, ongoing financial strain, staff cuts and lost livelihoods. Mental health and wellbeing will be a significant side- effect to COVID-19 and one that will impact small to medium business owners most, those who have invested their life into these businesses. The drawn-out impacts of mental health and wellbeing of those invested in and working within the tourism and events industry will be long lasting and extend well beyond the expectations for economic and visitor recovery.

Tourism Greater Geelong and The Bellarine have identified this as a critical element within our recently developed four-year Corporate Plan and will dedicate time, budget and effort to supporting both the people and businesses of the local tourism and events industry with a heightened focus on collaboration, wellness and connection.

Workforce and Business Impact

The local visitor economy of Greater Geelong directly supports 1 in 10 jobs across 1,486 employing tourism dependant businesses. With a workforce pre-COVID of 7,551 directly employed within the Greater Geelong tourism industry and a further 3,713 indirectly, backed by a visitor economy experiencing double digit growth the region was set to grow to $1.7b and employ more than 17,200 people by 2027, an increase of 53% on 2019.

Following the fallout from COVID-19 and resulting business closures it has been estimated that around 2,618 to 3,635 total jobs are predicted to be lost due to falls in visitor economy spending by the end of 2020/21. Even a further two years later a further 348 to 935 will be lost by the end of 2022/23 under the two forecast scenarios due to reduced visitor economy spending in the Greater Geelong region by 348 or 935 jobs compared to 2018/19. These numbers have a significant and long-lasting impact on the local community equating to 70% of the overall direct tourism workforce in Geelong.

As explained by Decisive Consulting, Australians are living in an artificial bubble right now awaiting the second hit on employment when business insolvencies and job cuts are likely to surge as: • Insolvencies are again allowed from the beginning of 2021; • Emergency Job Keeper and temporary additional JobSeeker income support is progressively reduced from early October and concluded in March 2021; and • Mortgage, and rent repayment holidays and cash boost funding for small businesses are unwound over a similar timeframe. • These short-term realities have had a medium to long term impact on the local businesses, many of whom are facing staffing supply issues to meet the upbeat demand over summer alone. Local education institutions and industry have indicated that there has been a noticeable shift away from the sector to more ‘secure’ industries. This will see a significant portion of those who benefited on Job Keeper within the hospitality sector are less likely to return to the jobs they left.

It is also highly expected that industry will face a further impact of attracting ongoing staff to new products and tourism assets in the region when they open. There are 55 major infrastructure projects and 9

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LC EIC Inquiry into the impact of the COVID-19 pandemic on the tourism and events sectors Submission 084 INCORPORATED Level 1, 48 Brougham St Geelong VICTORIA Australia 3220

T: 03 5223 2588 F: 03 5223 2069 I: 61 3 5223 2588

ACN: A00 286 22D ABN: 26990 691 173 masterplans in the pipeline supporting the Greater Geelong visitor economy totalling $1.7 billion. This includes:

• 22 accommodation developments worth $526m adding an additional 1,835 room stock to an existing 3,075 stock. • 14 attraction and experience developments worth $290m • 13 visitor infrastructure developments worth over $460m plus an addition $1b development town centre development. • 6 projects aligned to the City Deal including a Convention and Exhibition Centre totalling $420m It is expected the region will reach 2027 accommodation supply targets by 2025 due to the recent growth and diversity in accommodation investment and developments, with a projected total room stock of 4,910 by 2027. We need to consider and plan for the strengthening of tourism a desirable industry and pathway to have a career in.

Key challenges for the industry include:

Uncertainty on future There is a strong sense and reality behind an uncertainty within Victoria regarding and timelines COVID-19 and eased restriction timelines, parameters of restrictions and life of current government relief measures. This uncertainty has been further cemented following the re-strengthening of restrictions at the end of June. Managing and With the phased changes to restrictions, sometimes week by week, it can be understanding difficult for industry to interpret, implement and manage. restrictions Government support It has been identified at both a local industry and TGGB Board level that Job Keeper i.e. Job Keeper has been a valued lifeline for the tourism industry and with the uncertainty surrounding phased restriction easing, especially within Victoria, there is worry the Job Keeper program which is planned to conclude in September will hurt many businesses. COVID-19 Understanding the requirements of what a COVID19 safe workplace looks like, requirements and what standards are in place and what compliance looks like. how to reopen safely Financial A significant impact of COVID-19 and business closures is that related to financial management and distress. Businesses are requiring specialised financial advice and support. support Transitioning back When is it considered safe to do so, what are the requirements to ensure a safe into the workforce workplace and how to handle customers in this new environment. Mental health and This is one of the most critical issues facing the tourism industry post lengthy wellbeing business closures, ongoing financial strain and lost livelihoods. Mental health and wellbeing will be a significant side-effect to COVID-19. Overwhelmed with This recognises the range of information sources supplying content. For TGGB it is information and about being clear on our role as a channel for valuable information that industry resources can access but do not act as an expert. Government websites also provide conflicting information regarding restrictions.

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LC EIC Inquiry into the impact of the COVID-19 pandemic on the tourism and events sectors Submission 084 INCORPORATED Level 1, 48 Brougham St Geelong VICTORIA Australia 3220

T: 03 5223 2588 F: 03 5223 2069 I: 61 3 5223 2588

ACN: A00 286 22D ABN: 26990 691 173 Over the last year, at a local level, the region has benefited from a series of short-term business relief measures provided by our municipal partners which includes:

• Temporary outdoor dining permits: Supporting hospitality businesses to apply for free temporary outdoor dining permits, to temporarily expand or create outdoor dining spaces that comply with Victorian Government restrictions. • Free expert advice: Local businesses can apply to receive free expert help with marketing, finance, grant writing, human resources, legal issues, and occupational health and safety. • Small business mentoring: Free one-hour remote mentoring session from the Small Business Mentoring Service. Mentoring sessions cover a range of business topics and industry sectors. • Health and wellbeing support: employees can access free, confidential health and wellbeing support and coaching from Converge International through Geelong Business Support. • COVID-19 workplace training: Business able to access free COVID-19 workplace training for up to 20 employees. Delivered by DeakinCo through Geelong Business Support, the Occupational COVID-19 Workplace Training Scheme is designed to help businesses manage their return-to- work as safely and efficiently as possible. • Local campaign support - It's Our Backyard: It’s Our Backyard is designed to inspire our community to back Geelong and think local first when seeking supplies and essential services.

The City of Greater Geelong also agreed to the development of a medium to longer-term package to be funded in the 2020-2021 financial year which includes $633,000 in recovery marketing and project funds to support the tourism, international student and business events industry of Greater Geelong.

To date around 600 Greater Geelong businesses have directly received support through the Geelong Business Support package.

Considerations for the Legislative Council’s Economy and Infrastructure Committee

Noting the extreme and confronting challenges our industry has been through and are yet to experience, we propose the following support initiatives that will aid the recovery of both the tourism and events industries for the Legislative Councils consideration.

Events Activation and Insurance Support

Arguably, one of the most significant impacts the pandemic has had on the events industry is the doubt it casts for organisers to take a risk and stage their events in 2021. Support measures are needed to continue to sustain these businesses and their supply chain businesses (for whom many had little or no work for 12 months) by offering an alternative to the Job Keeper scheme which was (for many) their lifeline for the past 12 months. In addition, supporting strategies need to give event organisers the confidence to once again plan and deliver their events. Once most events are back up and running, the funds will start to flow through the supply chain again, but as many events are on an annual rotation, that may be not until next Summer.

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LC EIC Inquiry into the impact of the COVID-19 pandemic on the tourism and events sectors Submission 084 INCORPORATED Level 1, 48 Brougham St Geelong VICTORIA Australia 3220

T: 03 5223 2588 F: 03 5223 2069 I: 61 3 5223 2588

ACN: A00 286 22D ABN: 26990 691 173 Support to boost confidence for the industry could include a form of financial underwriting for the events sector which in effect replaces the event-cancellation insurance, which is now no longer available, when the cause of cancellation is COVID-19 related. Many event organisers require significant cash flow to book venues and services and pay deposits. For many, they either don’t have the cashflow to get started or they cannot afford the loss of those deposits, should their event be cancelled/affected by COVID-19. Innovation and Business Development Support During 2020 Tourism Greater Geelong and The Bellarine recorded close to 100 member businesses who were able to adapt to the changed conditions and pivot their ‘bread and butter’ operations with value-add services. The vast majority of these were in the food and wine industry with a smaller selection from the entertainment industries.

A recent industry snapshot survey indicated a third of consumers had transitioned their habits to casting online bookings with many businesses having to increase or enhance their online booking capability and use third party sites they have not traditionally needed. The successes of these adaptions have seen many business continue such services in an ongoing capacity.

This is an opportunity for the industry to hit the reset button and address the challenges and opportunities of the past through forced need for adaption. We need to support this and foster future innovation amongst the industry so they can continue to meet the needs of the new normal.

Adoption of the Visitor Economy Recover Plan 2.0 The Victorian Tourism Industry Council recovery blueprint calls for further investment in marketing initiatives to drive demand; support for our events sector; industry strengthening; product development and aviation; along with committed long-term funding for Visit Victoria, Melbourne Convention Bureau and Business Events Victoria. Key initiatives include: • A $100 million investment in a Relief and Survival Package for the supply chain that supports our multi-million-dollar events sector. • Development of a government-backed events deposit scheme to restore booking confidence and get cash flowing into the business events sector. • Access to the Victorian Managed Insurance Authority for tourism businesses affected by the lack of access to, and affordability of, insurance coverage. • A contestable Product Development and Innovation Fund valued at $200 million per annum for four years to support major attractions and infrastructure improvement – this would include investment in regional airport infrastructure, allowing for additional entry points to encourage wider regional dispersal. • Development and funding of an aviation recovery strategy to attract direct airline services back to Melbourne and Avalon airports.

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LC EIC Inquiry into the impact of the COVID-19 pandemic on the tourism and events sectors Submission 084 INCORPORATED Level 1, 48 Brougham St Geelong VICTORIA Australia 3220

T: 03 5223 2588 F: 03 5223 2069 I: 61 3 5223 2588

ACN: A00 286 22D ABN: 26990 691 173 Increased funding for demand driving initiatives Significant investment needs to be made in the short and medium term to drive demand and reposition the state, and the regions within it, in the hearts and minds of domestic and eventually international travellers. Visit Victoria requires the marketing resources to have an impact on key markets and encourage travel to the state for new reasons. Melbourne and major events had been the hero of the interstate story for a long time. Exploring new markets and highlighting the compelling reasons to visit Victoria are imperative as the competition for domestic travel among destinations across the country becomes tougher. Regions need support in telling their own stories better and working to drive awareness of the product and experiences available outside the capital city. Intrastate still presents the best opportunities for regions; Victorians love regional Victoria. The Regional Tourism Boards need support to stay top of mind and be a legitimate option against the aggressive marketing efforts coming from other states. In closing and despite the enormous challenges the COVID-19 pandemic has thrown at our industry, we marvel at the resilience and creativity of the people who work in it, we believe that what our industry and region offers is valued, and we are confident that the tourism and events industry is robust enough to come back stronger than ever. It won’t happen by accident though. On behalf of the tourism and events industry of Greater Geelong and The Bellarine and our municipal partners of City of Greater Geelong, Borough of Queenscliffe and I would like to thank you for the opportunity to feed into this process and welcome the opportunity to discuss the challenges our industry faces and the opportunities for strengthened recovery further.

Yours Sincerely

Brett Ince Executive Director Tourism Greater Geelong and The Bellarine

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