1"3-*".&/50'7*$503*" RURAL AND REGIONAL COMMITTEE RURAL AND REGIONAL COMMITTEE INQUIRY INTO RURAL AND REGIONAL */26*3:*/50363"-"/%3&(*0/"-5063*4. TOURISM FINAL REPORT JUNE 2008 wish you were FINAL REPORT here! Mum and Dad 12 Cooke Close xxxxx Rowville QLD 4000 J U N E 2 0 0 8 RURAL AND REGIONAL COMMITTEE PARLIAMENT HOUSE, SPRING ST, EAST MELBOURNE VIC 3002 5613 8682 2884'613 8682 2858www.parliament.vic.gov.au/rrc RURAL AND REGIONAL COMMITTEE FINAL REPORT Inquiry into Rural and Regional Tourism ORDERED TO BE PRINTED July 2008 by authority Government Printer for the State of Victoria Parliamentary Paper No. 124 Session 2006 – 2008 Copyright © 2008 Rural and Regional Committee. All rights reserved. Cover design by Geronimo Creative Services, Melbourne. Image on cover (bottom left) photographer: Holger Leue. Printed in Victoria, Australia by Minuteman Press, Melbourne. National Library of Australia Cataloguing-in-Publication entry Author: Victoria. Parliament. Rural and Regional Committee. Title: Final report : inquiry into rural and regional tourism / Rural and Regional Committee. ISBN: 9780975705841 (pbk.) Notes: Bibliography. Subjects: Tourism--Victoria--Evaluation. Tourism--Government policy--Victoria. Dewey Number: 338.479109945 This Report is also available from the Committee’s website at: http://www.parliament.vic.gov.au/rrc Parliament of Victoria Rural and Regional Committee Inquiry into Rural and Regional Tourism ISBN 978-0-9757058-4-1 (paperback) ISBN 978-0-9757058-5-8 (online) Rural and Regional Committee Members Mr Damian Drum MLC, Northern Victoria Region (Chairman) Ms Gayle Tierney MLC, Western Victoria Region (Deputy Chair) Ms Kaye Darveniza MLC, Northern Victoria Region Ms Wendy Lovell MLC, Northern Victoria Region Ms Kirstie Marshall OAM MP, Forest Hill Mr Russell Northe MP, Morwell Mr John Vogels MLC, Western Victoria Region Staff Ms Lilian Topic, Executive Officer Dr Cheryl Hercus, Research Officer Mr Jason V Ngam, Secretariat Officer Dr Yan Zhang, Research Assistant (June to July 2008) Mr Nathaniel Reader, Committee Administration Officer (June to August 2007) Parliament House, Melbourne VIC 3002 Telephone: 1300 787 202 (Victoria only) or (03) 8682 2884 Facsimile: (03) 8682 2858 Email: [email protected] Website: www.parliament.vic.gov.au/rrc Rural and Regional Committee Page i Inquiry into Rural and Regional Tourism Page ii Rural and Regional Committee Terms of Reference PARLIAMENTARY COMMITTEES ACT 2003 REFERAL OF INQUIRY TO THE RURAL AND REGIONAL COMMITTEE OF PARLIAMENT INQUIRY INTO RURAL AND REGIONAL TOURISM That the Rural and Regional Committee inquire into, consider and report to Parliament on — (1) the economic benefits of tourism in regional areas, including tracking the flow-on benefits through other regional businesses and industry; (2) potential impediments to the sustained growth of regional tourism, economic activity and jobs; (3) the effectiveness, at a National, State and local level, of current programs to promote and enhance tourism in regional Victoria; (4) initiatives to increase both international and domestic visitor nights in regional Victoria; (5) the efficacy of existing mechanisms at a National, State and local level to address the impact on regional tourism of natural events such as bushfires, floods and drought, and effective measures to drive long term economic recovery; and (6) opportunities to leverage private investment and commercial activity in regional tourism infrastructure, including ecotourism. Referred: 15 March 2007 Rural and Regional Committee Page iii Inquiry into Rural and Regional Tourism Page iv Rural and Regional Committee Table of Contents Members and Staff ......................................................................................... i Terms of Reference...................................................................................... iii Chairman’s Foreword .................................................................................. ix Recommendations ....................................................................................... xi Case Studies............................................................................................... xxi Tables and Figures................................................................................... xxiii Chapter One : Introduction............................................................................. 1 The Committee...................................................................................................3 Terms of Reference ............................................................................................3 The Evidence gathering process ........................................................................4 Submissions Public hearings Report structure..................................................................................................5 Chapter Two : Tourism in Context ................................................................. 7 Historical overview of travel and tourism ............................................................7 Travel ideas and motivations Transport revolutions The changing world of work Government involvement in tourism Regional development of tourism Country tourism offices Chapter Three : The Contemporary Institutional Framework ....................... 17 Introduction.......................................................................................................17 Australian Government.....................................................................................17 The Department of Industry, Tourism and Resources Australian Tourism Development Program Tourism Action Plan on Climate Change Tourism Australia Victorian Government.......................................................................................20 Tourism Victoria Rural and Regional Committee Page v Inquiry into Rural and Regional Tourism Parks Victoria Victorian Government support programs Local Government............................................................................................ 25 Industry organisations...................................................................................... 26 Research organisations.................................................................................... 28 Chapter Four : The Benefits of Tourism to Rural and Regional Victoria.......31 Introduction....................................................................................................... 31 Measuring benefits........................................................................................... 32 Visitor surveys Tourism satellite accounts Measuring tourism employment Modelling flow-on benefits Leakages and linkages Tourism yield Tourism’s contribution to the Victorian economy.............................................. 40 Official data Perspectives from rural and regional Victoria................................................... 43 The economic significance of tourism Tourism Impact Model Tourism and economic diversity The importance of flow-on benefits Poor recognition of tourism benefits Data gaps and needs The social, cultural and environmental benefits of tourism............................... 54 Chapter Five : Enhancing Infrastructure .......................................................59 Introduction....................................................................................................... 59 Telecommunications......................................................................................... 59 Utilities – sewerage, water and power.............................................................. 61 Transport .......................................................................................................... 61 Roads Air services Public transport Interstate buses Visitor facilities and services............................................................................. 74 Chapter Six : Enhancing Tourism Infrastructure – Road Signage ................79 Introduction....................................................................................................... 79 Administration of tourist signage ...................................................................... 80 Industry and operator concerns........................................................................ 80 VicRoads perspective....................................................................................... 85 Moving forward................................................................................................. 86 Chapter Seven : Developing Accommodation and Attractions .....................91 Introduction....................................................................................................... 91 Gaps and opportunities .................................................................................... 91 High-end accommodation and conference facilities Coastal caravan parks Ecotourism and nature-based attractions and accommodation Cycling and walking tracks Heritage and cultural attractions Filling the gaps—challenges and solutions .................................................... 101 The role of government funding The role of private investment Impediments to private investment on Crown Land Impediments to investment on private land Page vi Rural and Regional Committee Table of Contents Conclusion......................................................................................................122 Chapter Eight : Building Service Capacity in Country Victoria..................