Review of Tourism - The Cocos (Keeling) Islands and Christmas Island Indian Ocean Territories Regional Development Organisation - Action Plan
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Review of Tourism – The Cocos (Keeling) Islands and Christmas Island Indian Ocean Territories Regional Development Organisation – Action Plan July 2020
Contents
Executive summary 3
Foundations of the Action Plan 7
Action Plan 12
Appendices 26
Deloitte Touche Tohmatsu IOT Tourism Review: Action Plan 2
Executive Summary Deloitte Touche Tohmatsu IOT Tourism Review: Action Plan 3
Executive Summary
Tourism in the Indian Ocean Territories
Background Opportunities
The Indian Ocean Territories (IOTs) are a unique part of Australia. Closer to Asia than mainland The opportunities identified to further develop a sustainable tourism industry in the IOTs that
Australia, the Cocos (Keeling) Islands and Christmas Island are abundant with natural beauty will support local businesses and provide employment opportunities are:
and are a bucket-list destination for many travellers. The IOTs receive nearly 5,000 visitors each
year and are serviced with flights from Perth, Jakarta and Kuala Lumpur. The Cocos (Keeling) Short-term opportunities
Islands and Christmas Island have an opportunity to diversify their economies by developing a • Conduct business upskilling workshops
profitable and sustainable tourism industry that creates long-term employment and supports
• Develop a strategy to support SMEs seeking financial support
business.
• Improve the hospitality culture by providing hospitality skills training
The Cocos (Keeling) Islands and Christmas Island are world class natural environments • Facilitate a Home Island tourism industry forum
providing visitors with unspoiled surrounds and respite from technology. Each year, visitors • Streamline approval process for development
from around the world are attracted to Christmas Islands’ incredible natural phenomenon, • Establish a regional IOTs Tourism Association responsible for managing and coordinating
including the annual crab migration, the opportunity to swim with whale sharks and chance to tourism
view rare birds. The Cocos (Keeling) Islands are home to Australia’s best beaches including • Create an IOTs tourism website
Cossies Beach on Direction Island, voted Australia’s best beach in 2017. The IOTs are also
• Develop a strategic investment prospectus
home to unique cultures, including the Cocos Malay, descendants of the original settlers of the
Cocos (Keeling) Islands. • Create a Destination Management Plan
• Schedule a calendar of events
Approach • Develop a history and heritage product offering
Deloitte was commissioned by the Regional Development Organisation (RDO) with funding • Develop an IOTs Food Trail to enhance food and cultural experiences and product
from the Australian Government to undertake a review of tourism in the IOTs and develop an packaging
Action Plan. This project has been underpinned by four key phases: • Promote the IOTs as a wedding destination
• Review existing documentation, best practice tourism methods and global tourism trends • Develop multi-day regional itineraries
• Consult with identified stakeholders • Develop a comprehensive marketing and communications strategy
• Analyse outcomes from consultations with Review Phase findings to identify new products, • Use micro influencers for marketing campaigns
future strategies and directives for sector growth • Upgrade signage and erect signage for island navigation
• Deliver a Review and Action Plan to drive a sustainable tourism sector • Develop a bird hide to further develop bird watching
• Develop infrastructure for semi-permanent campsites and glamping facilities
This Review and Action Plan was developed prior to the outbreak of COVID-19. The
consequences and impact to travel has not been considered as part of this Review or Action
Plan. Although there will inevitably be short-term interruptions to domestic and international
travel, the findings, recommendations and actions identified in this Action Plan remain critical
to developing a sustainable tourism sector across the IOTs.
Deloitte Touche Tohmatsu IOT Tourism Review: Action Plan 4
Executive Summary
Tourism in the Indian Ocean Territories
Medium-term opportunities Target markets
• Actively test target marketing and product development The IOT Tourism Review has identified several target markets based on the IOTs’ current tourism
• Develop health, relaxation and wellness retreats capacity, product offerings, potential to develop offerings and stakeholder consultations. The
• Develop a prospecting competition for promotion and increased visitation Actions identified in this Action Plan are based on attracting visitors from the following target
• Encourage investment in five-star accommodation properties markets:
• Promote Muslim Friendly tourism • High-end visitor markets. The IOTs’ limited accommodation and product offerings, high cost of
• Build infrastructure to support sports tourism opportunities, including mountain biking and flights and exclusivity of the destination provide an opportunity to position the IOTs as a high-
golf end tourism destination. The IOTs cannot support mass saturation of visitors and should model
the market on successful high-end Australian locations such as Lord Howe Island.
• Improve pedestrian access around and between settlements on Christmas Island
• Asian middle class market. The growing Asian middle class has been driving the increase in air
• Provide an additional evening ferry service between Home and West Islands
travel throughout the region. This cohort is seeking high quality experiences and unique and
• Analyse the viability of supporting direct flights from Asia exotic destinations.
• Request the government remove cabotage restrictions for the IOTs • Muslim friendly travel. Muslim friendly travel is the one of the fastest growing visitor segments
• Explore opportunities with VARA to offer a free layover extension on either island to in the global tourism industry. Research indicates the typical Muslim traveller is young and
encourage tourism on both islands affluent. The IOTs have several characteristics that appeal to Muslim visitors including cultural
• Improve affordability and availability of insurance synergies, prayer facilities, privacy and halal food.
• Adventure/recreation visitor markets. The IOTs have world-class natural attractions and product
Long-term opportunities offerings/potential to develop products for adventure travellers, such as kite-surfers, divers,
• Repair and improve Pondok infrastructure bird-watchers, hikers, mountain-bikers and golfers. Research identifies many of these segments
are high-spending tourists seeking new and exotic locations.
• Develop a long-term succession planning strategy
• Expand retail precinct for locals to set up co-operative to sell locally made goods
Responsible Entities:
• RDO (Regional Development Organisation)
• Parks Australia
• Shires (The Shire of the Cocos (Keeling) Islands and the Shire of Christmas Island)
• Tourism Associations (The Cocos (Keeling) Islands Tourism Association and Christmas Island
Tourism Association)
• The Department of Infrastructure, Transport, Regional Development and Communications
(DITRDC)
Deloitte Touche Tohmatsu IOT Tourism Review: Action Plan 5
Background
Tourism in the Indian Ocean Territories
How to read this Action Plan the actions identified in the Action Plan and ensure the entity assigned responsibility has
This Action Plan has been developed following a review of the IOT tourism industry. The adequate support and resources to deliver assigned actions.
objective of the review was to critically assess the state of the tourism sector in IOTs, identify
opportunities for sustainable growth, and develop a Tourism Action Plan to capitalise on Recognising that developing tourism across the IOTs requires a collaborative approach, the
these opportunities, drive economic activity and support long-term sustainability. This Action Leadership Committee should comprise of members from the Shire of the Cocos (Keeling)
Plan has been informed by the following activities: Islands, the Shire of Christmas Island, the Commonwealth government, a tourism industry
• A comprehensive consultation engagement process on the Cocos (Keeling) Islands and representative from each island and a member of the recommended regional tourism
Christmas Island with stakeholders including tourism industry operators and providers, organisation. The Leadership Committee should meet bi-monthly and receive progress
local organisations, Shire staff and Board members, Western Australia government reports from organisations with assigned responsibilities. Where possible, data should be
agencies, Commonwealth government agencies and interested community members collected to track benefits and capture value from implemented actions.
• A literature review analysing key global tourism trends that identifies new and emerging
markets (regions, countries, demographics) and customer profiles for these markets; and Implementation
• A jurisdiction review that compares the IOTs against similar jurisdictions and identifies best Actions have been prioritised according to the following timing classifications:
practice methods.
The Action Plan has been created with the strategic goal to build the IOTs tourism industry Short Term. Action should be prioritised for immediate implementation within the
into a sustainable industry. Although these opportunities will increase the volume of visitors next 3 years.
to the IOTs, they are not intended to increase visitation at unsustainable levels. The Medium Term. Action should be implemented within 3 – 5 years
opportunities outlined in this Action Plan have been designed to meet the specific
requirements of the IOTs, taking into consideration scale, budget, timing and suitability.
Long Term. Action should be implemented within 5 – 10 years
The Action Plan is an organic document that should be regularly monitored and updated.
Each opportunity in the Action Plan has been documented as a ‘Theme’ with ‘Actions’
underpinning each Theme. An explanation why each Action has been identified and the Cost of implementation
benefits derived is outlined to provide context how an Action fits within the broader strategic The costs calculated in this Action Plan are:
context. Accompanying each Theme is an indicative timeframe for implementation. Themes 1. Estimated based on consultant rates for similar projects
have been separated into either ‘Short term’ opportunities: opportunities that can be rapidly 2. Estimated number of FTE hours
implemented for minimal investment, ‘Medium Term’ opportunities to be implemented within 3. Estimated based on desktop research
3 – 5 years and ‘Long Term’ opportunities to be implemented within 5 – 10 years to coincide 4. Estimated based on current spending of IOTS organisations; and
with existing Strategic Plans. 5. Estimated based on similar projects in regional Australia.
Progress and monitoring The costs provided are estimations only and may not reflect the true cost. Costs are based on
The ongoing monitoring of the Action Plan should be coordinated by a Leadership evidence obtained and are to be used as an indicative guide for budgeting purposes. There
Committee. The role of the Leadership Committee is to monitor the progress of implementing has been no external expert validation undertaken of costs.
Deloitte Touche Tohmatsu IOT Tourism Review: Action Plan 6
Foundations of the Action
Plan
Deloitte Touche Tohmatsu IOT Tourism Review: Action Plan 7
Tourism in the IOTs
Building on the IOTs’ strengths
The current context Consumer context
Tourism is a critical sector for the IOTs’ economy, driving activity and growth across the region. The rise in social media and online platforms are changing the way travellers consume and
The uniqueness of the IOTs and its comparative advantages provide significant potential for the contribute to tourism. Visitors are using an increasing number of digital channels throughout
industry. their purchase journey, with various online and social media platforms creating new ways for
travellers to plan their trips and share their experience. Among US travellers, 60 per cent are
The IOTs are culturally rich with large populations of Cocos Malays, Malaysian, Chinese and using platforms like Facebook and Instagram to plan their trips.
Singaporean residents. The natural and undiscovered landscapes of the IOTs make it an
appealing location for visitors. Tourism Research Australia’s Consumer Demand Project found The way consumers are purchasing goods and services is also changing. Consumer decision-
that world class nature and wildlife are growing in importance as factors in travel decisions. The making has shifted away from a linear process requiring traditional advertising and sales
IOTs are home to rare species of flora, native wildlife and birds. These offerings along with the approaches, as travel buying practices have changed and the number of choices have increased.
exclusivity of the IOTs make it an ideal destination for visitation. This is further strengthened by Although travel has always centred on experiences, even economy flights and standard hotel
the IOTs’ proximity to Asia. In the coming decades, around two billion people in Asia will join the rooms have been marketed as experiences rather than products – suggesting a change in how
middle class, while the number of Chinese citizens holding passports is predicted to grow from consumers respond and behave in the buying process. Social media influencers have also
120 million today to 240 million by 2020. As people become wealthier, they are more likely to become a marketing tool: the tourism industry is constantly shifting marketing and advertising
spend more on discretionary goods such as entertainment or tourism. Provided aviation links methods to incorporate new ways of reaching potential consumers.
are suitable, this places the IOTs in a position to capitalise on an increasing pool of global
travellers. Visitors are also changing how they travel. The rise of the Chinese free and independent traveller
is one example, as Chinese consumers become more experimental and make return visits to
During stakeholder consultations, stakeholders were asked what makes the IOTs special and an Australia – although group travel remains popular as a safety net outside Asia. Destinations
ideal tourism location. Common themes emerged that focused on the regions unique landscape, need to continue to cater for a range of travellers, both from Australia and overseas, as different
culture and disconnection. These themes are capture in the box below. source markets, demographics and psychographics influence consumer behaviour.
The rise of the experience economy has seen consumers seek experiences over other purchases.
Beautiful and pristine Cultural synergies to Asia According to the CSIRO, material consumption is declining in advanced economies. As people
become wealthier, they are more likely to spend their disposable income on travel, education or
Untouched natural surroundings entertainment, rather than physical products. This highlights the importance of the tourism
Adventure Settlement heritage industry adapting its approach to consumer demands and trends, as focus starts to shift towards
Community the post-experience economy – that is, differentiation when all travel-related purchases are
Unique culture Relax
marketed as experiences.
Sun and surf Disconnect Proximity to Asia
Tourism industry context
Tropical weather Competition for tourists is growing both nationally and globally. The United Nations World
Birdlife and marine nature Military history
Tourism Organisation reported that 1.3 billion international arrivals travelled in 2017, with
arrivals expected to reach 1.8 billion by 2030. The IOTs will need to continue to differentiate its
product and target its marketing to reach a growing pool of tourists: a pool which is open to
choosing more locations than ever before.
Deloitte Touche Tohmatsu IOT Tourism Review: Action Plan 8
Tourism in the IOTs
Building on the IOTs’ strengths
The aviation sector is changing, with airlines redesigning routes to optimise capacity and The Australian dollar is expected to remain low, hovering around 70 US cents. The low dollar will
efficiency. Aviation access has been a key challenge for the IOTs. Despite the close proximity to make Australia an even more attractive destination for international tourists and Australians,
Asia, flight routes and schedules to the IOTs have historically been unreliable. However advances who choose to take a domestic holiday, rather than travel overseas.
in aviation and bilateral government agreements provide an opportunity for the IOTs to
capitalize on industry tends. In 2016, the Australian Government and the Chinese Government Crude oil prices have been rising in recent months as global economic activity strengthens, but
reached an agreement to establish an open aviation market between the two countries, with a are expected to remain flat in the future and unlikely to return to previous highs seen earlier in
number of routes established between Australian and Chinese cities in the subsequent years. As the decade. Should crude oil prices continue to rise above forecasted levels, the price of airfares
aircraft technology improves, more destinations become accessible using narrow-body aircraft, could rise, affecting the tourism industry.
opening up the region to tourists from new Asian destinations. For example, Norwegian Air is
The availability of business finance became challenging during the global financial crisis,
introducing new single-aisle aircraft (such as the Airbus A320neo and Boeing 737MAX) on trans-
although it has improved in recent years. However, small businesses continue to face challenges
Atlantic routes; similarly, these fuel-efficient, mid-range aircraft could connect the IOTs with
in accessing finance, as the reduction in risk appetite of lenders appears to have had a ‘more
smaller Asian markets and service routes more efficiently.
significant and persistent’ effect on the cost of finance for small businesses. As many businesses
Digital technologies and data-driven insights are also changing how the tourism sector require finance during the start up or expansionary phases, this may present challenges for the
operates. Marketing to consumers can be undertaken in a more targeted and efficient manner, tourism industry, as the vast majority of IOT tourism businesses are small.
while digital platforms offer smaller tourism markets global access to consumers, providing the
Climate change is likely to impact travel and economies in the long term. It will potentially result
opportunity for them to expand.
in a warmer climate, more extreme rainfall events and flooding, the flooding of freshwater
The rise of the sharing economy and collaborative consumption is affecting components of the wetlands with salty water, and fewer tropical cyclones overall, but an increase in the proportion
tourism industry and introducing new opportunities for consumers. Online travel platforms such of more powerful cyclones. All of these events can affect consumer travel behaviour, either
as Airbnb are generating new ways for travellers to book trips and experiences in a peer-to-peer acting as a deterrent, or affecting the customer experience while on holiday. It is important that
environment. In 2018, peer-to-peer accommodation comprised approximately 7% of future decision-making takes climate change into account, addressing its potential effects on
accommodation globally. Sharing economy platforms can assist in meeting higher demand the tourism industry.
during peak periods, as well as aligning with consumer needs and preferences. Research in the
The IOT context
US found that Airbnb limited the ability of the hotel industry to raise prices during peak periods,
with Airbnb positioned to absorb additional demands. The IOTs remoteness and small population means that there is a smaller base of travellers to
support aviation services, creating a perception that it is difficult to access. Tourism Australia’s
Global and national context
Consumer Demand Project found that international visitors considered long flights and
Asia’s growth among global markets is set to continue, although the outlook at a global level is
expansive geography are a deterrent for travellers. There has been an increase in visitation to
somewhat subdued with uncertainties around the US-China tariff dispute and the impact of
the IOTs in recent years, partially due to the increased popularity of kitesurfing, bird watching
Brexit. Growth in Australia’s economy is forecast to continue steadily at over 3% per annum over
and a successful marketing campaign into regional Western Australia.
the next three years, with solid job gains and unemployment edging down.
Deloitte Touche Tohmatsu IOT Tourism Review: Action Plan 9
Tourism in the IOTs
Building on the IOTs’ strengths
Action Plan framework Core considerations underpinning the Action Plan framework include a view towards building
The Action Plan framework is designed to unite efforts across the public and private sectors, industry capability, establishing an overarching organisation responsible for managing tourism,
with priorities and actions targeted towards shifting the current performance of the tourism and driving investment in tourism product and infrastructure. Reflecting the perspectives and
sector in the IOTs to one of sustainable growth. The strategic framework reflects perspectives insights of stakeholders and the ambition to move towards sustainable tourism, the Action Plan
shared during consultations, and was confirmed in collaboration with both industry and aims to shift from a seasonal mindset: actions are geared towards extending the IOTs peak
government. tourism season, or mitigating seasonal impacts in their entirety.
The Action Plan framework incorporates four key priorities that, if delivered, will make a material Implementing the priorities and pillars will require action from both the tourism industry and
impact on the trajectory of tourism in the Northern Territory, and four pillars which underpin the levels of government. Collaboration across and within industry and government will be crucial to
framework. Within each priority and pillar are specific actions to achieve identified goals in the the Action Plan’s success. Specific actions outline responsibilities across industry and local, and
short, medium and long term. These priorities, actions and pillars are described over the Commonwealth governments.
subsequent sections in the strategy.
The overarching responsibility for coordinating the implementation, reporting and regular
Action Plan Framework review of the strategy will lie with the newly established organisation responsible for managing
tourism. Industry will play a core role in these activities, with the RDO supporting industry in
Key priorities that taking action to meet the Action Plan’s objectives.
will make an
impact on tourism Build on the
in the IOTs IOTs unique Attract Leverage and
natural investment to build events Improve access Strong leadership and management from a regional tourism organisation representing
offerings and grow industry to drive to the IOTs
the interests of tourism operators, providers and stakeholders across the IOTs
distinctive offerings visitation
culture
Increased accessibility to the IOTs with travel routes into new markets and a reliable air
service that supports the development of tourism
A suitable skilled and competent workforce with sufficient business skills and hospitality
Increase the value of tourism to the IOTs training to meet the expectations of visitors
Pillars that Diversified products and offerings catering to the needs of target markets and
underpin the demographics
strategic Industry
Governance Marketing and
framework development Collaboration
and leadership promotion Increased value and expenditure in the tourism sector across the IOTs
and upskilling
Deloitte Touche Tohmatsu IOT Tourism Review: Action Plan 10IOTs Tourism Action Plan
Developing a sustainable tourism industry
Short Term Medium Term Long Term
Embrace the IOTs unique natural characteristics and develop supply-side capability Build capacity and increase product offerings Establish the IOTs as an exclusive destination with accessibility into Australia and Asia
Industry services and support (business services, financial support)
Conduct business upskilling workshops
Develop a strategy to support SMEs seeking financial support
Improve the hospitality culture by providing hospitality skills training
Facilitate inter-island tourism industry forums
Streamline approval process
Strategic oversight and coordination (governance, strategy)
Establish a regional IOTs Tourism Association responsible for managing and
coordinating tourism Develop a long-term succession planning strategy
Create an IOTs tourism website
Develop a strategic investment prospectus
Create a Destination Management Plan
Establish a regional IOTs Tourism Association responsible for managing and
coordinating tourism
Product development (review and development of new offerings and maximisation of existing)
Schedule a calendar of events Actively test target marketing and product development Expand retail precinct for locals to set up a co-operative to sell locally made products
Develop a history and heritage product offering Develop health, relaxation and wellness retreats
Develop an IOTs Food Trail to enhance food and cultural experiences and product
Develop a prospecting competition for promotion and increased visitation
packaging
Promote the IOTs as a wedding destination Encourage investment in five-star accommodation properties
Develop multi-day regional itineraries
Marketing and product distribution
Develop a comprehensive marketing strategy Promote Muslim Friendly tourism
Use micro influencers for marketing campaigns
Infrastructure
Upgrade signage and erect signage for island navigation Build infrastructure to support sports tourism opportunities, including mountain Repair and improve Pondok infrastructure
biking and golf
Develop a bird hide to further develop bird watching
Improve pedestrian access around and between settlements in Christmas Island
Develop infrastructure for semi-permanent campsites and glamping facilities
Access (flights, transport, insurance and housing)
Provide an additional evening ferry service between Home and West Islands
Analyse the viability of supporting direct flights from Asia
Request the government remove cabotage restrictions for the IOTs
Explore opportunities with VARA to offer a free layover extension on either island to
encourage tourism for both islands
Improve affordability and availability of insurance
Deloitte Touche Tohmatsu IOT Tourism Review: Action Plan 11Action Plan Deloitte Touche Tohmatsu IOT Tourism Review: Action Plan 12
Indian Ocean Territories Tourism Action Plan
1. Industry services and support (business services, financial support)
Action Evidence Why How Outcomes Timing
1.1 Conduct business Consultation A successful tourism industry generally demonstrates a mixture • Engage a consultant to design and provide • Retain existing industry Short Term
upskilling workshops Findings sections of large, moderate, small and micro businesses. The islands upskilling workshops capability
(IOT) 4.3 and 4.6 host small and micro businesses and potential entrepreneurs • Provide one-on-one meeting opportunities • Grow the total industry
with ambitions to enter the tourism industry. Business support for businesses requiring upskilling and capability
services will be crucial to facilitation of tourism business guidance • Enhance total industry
establishment on the island, as well as ongoing effective delivery • Establish a drop in centre for local revenue
of tourism products. In the past, business upskilling workshops businesses to seek specific support in • Improve workforce skills
have been favourably regarded by local businesses. upskilling from consultants
1.2 Develop a strategy to Stakeholders The residential population is essential to the tourism supply • Conduct a study or consultation to • Support small Short Term
support SMEs seeking consulted chain for the IOTs, being both familiar with the local product, comprehensively assess available financial businesses seeking
financial support frequently and uninhibited by a number of barriers faced by external assistance and barriers to finance for SMEs funding
(IOT) commented on the investors. Without established capability in business on the IOTs. • Foster a community of
difficulties to access development and delivery, and with unique need impacting • Establish an investor network for local entrepreneurship
grant programs and business development in the IOTs, support in obtaining funding businesses to connect with potential
understanding for investment, maintenance and operations is important in investors
funding enabling this supply chain. • Reduce barriers to funding, consider
opportunities subsidies and government funded
incentive programs
1.3 Improve the Consultation The current level of hospitality service is inadequate to meet the • Provide direct hospitality skills training for • Improve the visitor Short Term
hospitality culture by Findings sections needs and expectations of visitors. In order to attract high- employees of local businesses in the experience
providing hospitality 4.3 and 4.6 spending visitors and cater for larger groups such as cruise hospitality industry through workshops or • Prepare for the increase
skills training (IOT) passengers, there needs to be an increase in the level of a consultant in day-visitors from
hospitality service, including reliable opening hours and trained • Provide a best-practice guide to business cruise passengers
staff. owners in the hospitality industry using a scheduled to arrive
consultant • Diversify employment
• Survey operators and visitors to skills to meet the needs
understand operator needs as well as of future growth in the
visitor expectations and develop content tourism sector
based on the results
Deloitte Touche Tohmatsu IOT Tourism Review: Action Plan 13Indian Ocean Territories Tourism Action Plan
1. Industry services and support (business services, financial support)
Action Evidence Why How Outcomes Timing
1.4 Facilitate inter-island Stakeholders Tourism stakeholders across the IOTs expressed a desire for • Establish a forum where tourism operators • Business synergies Short Term
tourism industry consulted noted greater collaboration. For example, Home Island residents stated and those interested in developing tourism gained through
forums (CKI) there is an an ambition to establish more tourism offerings however note may collaborate and network collaboration across
opportunity to success will be driven by the ability to collaborate with West • Designate forum members who are Home and West Island
foster greater Island operators. A forum would allow interested parties to responsible for the governance of the • Considered planning
collaboration collaborate and develop tourism on the island. inter-island forum and development as a
between operators • Hold monthly or quarterly forums to keep result of forums and
and providers stakeholders informed on latest increased
developments and upcoming communication
opportunities
1.5 Streamline approval Stakeholders Businesses and potential investors have expressed confusion • Audit current land and development • Encourage investment Short Term
process (CI) consulted noted over the current land development approval process caused by approval processes in the IOTs in the tourism industry
there has triangulated governance arrangements. This has stifled • Review the current process and seek • Reduce time and costs
historically been development opportunities which affects the ability to attract feedback from community stakeholders on
confusion regarding and grow tourism numbers. options to improve efficiencies
approval processes. • Implement approval process
The perception of recommendations to streamline
approval process development/application processes
difficulties is in part • Develop an intuitive guide document to
due to a lack of enable businesses to navigate triangulated
understanding of governance arrangements
processes and the
applicability of
triangulated
governance
regulations
Deloitte Touche Tohmatsu IOT Tourism Review: Action Plan 14Indian Ocean Territories Tourism Action Plan
2. Strategic oversight and coordination (governance, strategy)
Action Evidence Why How Outcomes Timing
2.1 Establish a regional An approach The RDO is committed to a regional approach to developing • Establish a single Tourism Association • A regional approach to Short Term
IOTs Tourism towards regional tourism. This regional approach needs to be coordinated, entity responsible for tourism governance developing the tourism
Association tourism leveraging the strengths of each destination to develop the and direction across the IOTs industry
responsible for management tourism industry. Tourism in the IOTs should be managed and • Consider abolishing membership fees and • A more efficient
managing and requires a coordinated by a regional organisation and not two separate develop a new service agreement allocation of resources
coordinating tourism centralised associations. The regional organisation should operate for all requiring the association to advocate for and expenditure
(IOT) organisation tourism providers and operators rather than in the interests of all tourism providers and operators on the • Remove the perception
providing members only, and should therefore not have a membership islands of conflict from the
leadership in fee. member fees imposed
driving the sector. A by the current Tourism
regional tourism Associations
organisation was • Develop the IOTs as a
supported by the product
majority of
stakeholders
consulted
2.2 Create an IOTs Stakeholders An IOT tourism website should be the centre point coordinating • Build a central IOT website, and linking • Increase visitation to Short Term
tourism website (IOT) consulted noted an all marketing and promotional activities. The website will each IOTs’ website both destinations
IOTs tourism provide information to visitors, enable visitors to book inter- • Include all tourism information for both through a centralised
website that island packages and market the IOTs as a destination. islands, including all operators/providers online website
provides • Grow social media presence for IOTs and • Facilitate marketing and
distribution at a develop a digital strategy for social media media campaigns
regional level is • Increase SEO (Search engine optimisation) • Increased destination
required to market result by engaging digital marketing visitation through
and promote the consultants marketing reach from
IOTs social media channels
Deloitte Touche Tohmatsu IOT Tourism Review: Action Plan 15
6 https://www.webalive.com.au/website-cost/Indian Ocean Territories Tourism Action Plan
2. Strategic oversight and coordination (governance, strategy)
Action Evidence Why How Outcomes Timing
2.3 Develop a strategic Stakeholders A strategic investment prospectus can help attract investors by • Review the current investment landscape • Activate investment in Short Term
investment consulted stated providing clear investment opportunities and simplifying the and seek feedback on the challenges of the IOTs
prospectus (IOT) there is a need to investment process. The prospectus should be designed to securing investment for operators • Provide a strategic
identify strategic provide an overview of available investment opportunities to • Create a register for investment roadmap for
investment engage interested partners and form a basis from which opportunities opportunities
opportunities discussions can be coordinated. • Engage a consultant to develop an
investment prospectus which connects
investors to opportunities
2.4 Create a Destination Best practice Destination Management Plans (DMP) are used to outline the • Engage either the RDO or an external • Overall management of Short Term
Management Plan contemporary plans and strategies to develop and sustain the tourism sector consultant to develop a DMP for the IOTs the IOTs as a
(IOT) tourism for a particular destination. DMPs for the Cocos (Keeling) Islands • Review current development and destination
management and Christmas Island allow the capture and presentation of investment strategies and assess best- • Targeted marketing
includes information, informing the development of a viable strategy for practice strategies to drive DMP for IOTs strategies that are
Destination sustainable growth in the tourism sector. The DMP will ensure • Assess infrastructure requirements to cope informed by
Management Plans that tourism is used as a vehicle to drive the economy and with projected increase in tourist numbers stakeholders across
that articulate the attract future investments. each destination
strategy and
direction for
tourism with
significant input
from tourism
stakeholders
2.5 Develop a long-term Stakeholders Lack of housing and insurance availability are major issues in • Assist tourism operators with succession • Increase the number of Long Term
succession planning expressed attracting tourism operators to the islands. One of the key planning strategies tourism operators on
strategy (IOT) hesitation to considerations for operators is how to exit the industry upon • Develop additional housing investment the islands
become involved in departure from the islands. Many potential operators are strategy • Encourage investment
the IOTs tourism temporary residents or seeking to move to the islands, but are in tourism operations
industry due to deterred by these factors. Succession planning will provide more and products
difficulty in securing confidence to potential operators and encourage further • Attract more permanent
housing and investment in products. residents
difficulty to sell
business upon
retirement/
departure
Deloitte Touche Tohmatsu IOT Tourism Review: Action Plan 16Indian Ocean Territories Tourism Action Plan
3. Product development (review and development of new offerings and maximisation of existing)
Action Evidence Why How Outcomes Timing
3.1 Schedule a calendar Literature Review Festivals and events are a leading driver of regional dispersal • Create a calendar of events across the IOTs • Increase visitation Short Term
of events (IOT) section 1.6, (see Review page 36). The number one most popular event type to increase visitation, particularly through through traditionally
Consultation was food and wine events. An IOTs Food Festival could be the shoulder and low seasons low periods
Findings section 4.6 developed to highlight the diverse cuisine on the islands. Other • Hire or designate a Project Development • Highlight and promote
niche events could include a Christmas-themed festival on Officer within the RDO who will be the IOTs through
Christmas Island with the island decorated with Christmas responsible for planning and bringing festivals and events
decorations, local food stalls and light displays. Events can events to the IOTs • Attract visitors who
include a regional marathon where participants complete a would not otherwise
marathon/half marathon at each destination travel to the IOTs
3.2 Develop a history and Literature Review The IOTs have a rich history through their settlement and • Collate the IOTs war and settlement history • Improve the visitor Short term
heritage product section 1.8, involvement in World War II. This information can be leveraged • Collaborate with the Shires to identify experience
offering (IOT) Consultation to develop and expand the product offerings and experience on potential trails/products that require • Market diversification
Findings section 4.6 the islands. Signage, trails, and complimentary services will be access, signage and infrastructure • Foundation for the
an important consideration in this strategy. The strategy should • Identify potential operators to operate development of new
align with the SOCKI, SOCI and Flying Fish Cove Master Plans. history and heritage tours complimentary products
and services (e.g.
guided tours)
3.3 Develop an IOTs Food Literature Review Food and wine is the number one demand driver of visitation to • Collaborate with existing food • Diversify tourism Short Term
Trail to enhance food section 1.6, regional Australia, while cultural and heritage is number four establishments and develop a food trail products
and cultural Jurisdiction Review (Literature Review section 1.7). • Explore locally grown and sourced options • Enhance current visitor
experiences and Kangaroo Island for IOTs (e.g. fresh seafood, locally grown experience
product packaging section 2.4, The IOTs currently offer a variety of food, with Chinese, halal, fruit and vegetables) for consideration
(IOT) Customer Profiles and Australian cuisine. A food trail would combine food and • Feature food and drink offerings on the
section 3.2 culture, and would provide visitors a list of food and IOTs website
establishments to try, to enhance their food and cultural
experience of the IOTs.
Deloitte Touche Tohmatsu IOT Tourism Review: Action Plan 17
7 Estimated based on wage rates of similar positions at LHIB NSWIndian Ocean Territories Tourism Action Plan
3. Product development (review and development of new offerings and maximisation of existing)
Action Evidence Why How Outcomes Timing
3.4 Promote the IOTs as a Consultations The IOTs offer an exciting and unique wedding offering, with the • Identify/develop wedding venues at IOTs • Diversify tourism Short Term
wedding destination Findings section 3.4 IOTs Administrator able to act as a celebrant. Promoting this that will be attractive and marketable for products
(IOT) unique attraction would draw more weddings to the islands. couples searching for something different • Attract new target
Promoting this would create a sense of exclusivity and would • Develop a calendar of dates when markets
attract people looking to have a unique wedding experience. weddings would be available with the
Administrator as celebrant and limit the
number that are offered each year
3.5 Actively test target This Action Plan has The IOTs have a number of unique attributes and comparative • Consult with local stakeholders, and • Diversification of market Medium
marketing and identified key target advantages which may prove to be successful for tourism complete a tailored study of the demand offering Term
product development markets however development. Testing of such opportunities with suppliers and markets for potential products prior to • Increase in total value
(IOT) prior to initiating demand markets could be completed through staged trials, further development and testing of the tourism market
new products and including consumer surveys, small scale product development product potential • Broadening of tourism
offerings, market and broader marketing. Opportunities important to local • Develop an online or paper survey for local markets
testing is required stakeholders, high demand experiences such as food stakeholders assessing important
to ensure products provenance, and high value markets such as weddings, should opportunities and high demand
align with consumer be prioritised for testing. experiences
trends
3.6 Expand the retail Literature Review Stakeholders expressed an interest in selling homemade goods. • Establish a platform for sale of homemade • Increase the visitor Long Term
precinct for locals to section 1.6 This could be achieved through a weekly market or an expanded goods (e.g. a Facebook page or group for experience
set up a co-operative retail precinct with space for a co-operative. Stakeholders Buy/Swap/Sell) • Encourage small
to sell locally made expressed an interest in selling locally made products, including • Create website for local sellers with business
products (IOT) salt, coconut oil, soap, baskets, model jukungs, small wooden information about how to get involved • Increase engagement of
fish and other small handmade items. local economy
Deloitte Touche Tohmatsu IOT Tourism Review: Action Plan 18
8 Estimates derived from CITA Marketing Plan 2016-2020Indian Ocean Territories Tourism Action Plan
3. Product development (review and development of new offerings and maximisation of existing)
Action Evidence Why How Outcomes Timing
3.7 Develop health, Literature Review Wellness tourism is a rapidly growing industry, with the Asia- • Assess available land and potential • Diversify existing Medium
relaxation and section 1.7 Pacific region showing the most gains in the number of wellness opportunities for health and wellness tourism products Term
wellness retreats (IOT) trips and wellness tourism expenditure. The IOTs are ideal retreats in IOTs • Attract new target
wellness tourism destinations as they are remote, relaxed, and • Tender an expression of interest to markets
full of natural beauty. Wellness tourism can include destination develop land for the purpose of a
spas, yoga and meditation retreats, and nutrition courses. health/wellness retreat
• Identify a suitably qualified operator to
provide ongoing management of retreat
3.8 Develop a Literature Review Other regional destinations have developed successful tourism • Develop a competition based on the • Increase visitation to Medium
prospecting section 1.6 campaigns in the form of competitions, such as the Northern islands’ existing offerings e.g. bird both islands Term
competition for Territory’s Million Dollar Fish competition which was developed watching or diving • Increased tourist
promotion and to attract visitors during the region’s low season. A similar style • Review existing competitions in similar expenditure on activities
increased visitation competition may support tourism in the IOTs by creating jurisdictions that can be implemented in • Flow on effects of
(IOT) another reason for visitors to travel to the region. the IOTs (e.g. swims, fishing, golf, culinary) increased volume in
tourism numbers
3.9 Develop multi-day Consultation Regional itineraries which include activities on both islands • Develop different itineraries based on the • Encourage visitors to Short Term
regional itineraries Findings section 4.3 would encourage visitors to spend time on both the Cocos different types of tourists (e.g. visit both islands
(IOT) (Keeling) Islands and Christmas Island. Different itineraries which honeymooners, divers, swimmers, budget • Encourage visitation by
provide ideas for visitors based on what they are interested in, travellers, luxury travellers etc.) making the planning
such as “food and culture”, “soft adventure”, and “diving and • Promote these itineraries on the IOTs phase simpler
snorkelling”, would provide visitors with ideas about activities on website
offer and would encourage visitation. Though the current • Ensure the method of booking a full
Tourism Associations do provide scheduling services on an itinerary is simple and straightforward
individual basis, a pre-existing itinerary which visitors could • Look into outsourcing this function to a
access online would make planning a trip to the IOTs simpler tour provider
and more convenient.
Deloitte Touche Tohmatsu IOT Tourism Review: Action Plan 19Indian Ocean Territories Tourism Action Plan
3. Product development (review and development of new offerings and maximisation of existing)
Action Evidence Why How Outcomes Timing
3.10 Encourage investment Jurisdiction Review Swell Lodge on Christmas Island is the only five-star • Tender an expressions of interest for a • Diversify existing Medium
in five-star section 2.1 accommodation property in the IOTs. To develop the IOTs as an luxury development on the IOTs accommodation Term
accommodation exclusive destination e.g. similar to Lord Howe Island, the IOTs • Engage a consultant to develop a detailed offerings
properties (IOT) require five-star accommodation offerings to meet the needs of business case for the establishment of • Provide a high-end
visitors. luxury accommodation on both IOTs offering that supports
• Include five-star accommodation the exclusivity of the
investment ideas in the strategic IOTs and attracts high-
investment prospectus end travellers
• Develop offerings that
meet the requirements
of market targets
Deloitte Touche Tohmatsu IOT Tourism Review: Action Plan 20Indian Ocean Territories Tourism Action Plan
4. Marketing and product distribution
Action Evidence Why How Outcomes Timing
4.1 Develop a Marketing and Stakeholders reported concerns that tourists have limited • Engage consultants as required for the • Diversify existing Short Term
comprehensive promotion awareness of local products and experiences, such as Home development of a comprehensive tourism markets
marketing strategy strategies section Island. A comprehensive strategy that maps experiences, communications and marketing strategy • Leverage existing
(IOT) 5.1 considers target markets, and determines effective for the islands products with minimal
communications tools for both the demand and supply market • Perform an assessment of marketable investment
is needed to both attract visitors, as well as maximise their content and timing of delivery with
tourism experience, and engagement with operators on the ongoing developments
Islands.
4.2 Use micro influencers Jurisdiction Review Micro influencers have the ability to connect more meaningfully • Select micro influencers best suited to the • Effectively market the Short Term
for marketing section 2.12, with followers and have greater credibility than traditional target market and desired platform (e.g. IOTs to target markets
campaigns (IOT) Marketing and ‘celebrity’ influencers. Micro influencers should be used for Instagram, Facebook, etc.) • Promote the IOTs to
promotion targeted IOT tourism campaigns. Influencers should be chosen • Develop a content plan to release targeted mass audiences for
strategies section based on target market. content from IOTs through micro minimal investment
5.1 influencers
4.3 Promote Muslim Customer Profiles Muslim friendly tourism can be promoted to cater for one of • Develop a marketing campaign targeting • Increased revenue due Medium
Friendly tourism (IOT) section 3.2 highest growth segments in the industry. The market has great affluent Muslim tourists in close and to Muslim travellers Term
potential for industry operators with a wealth of business accessible jurisdictions (e.g. Indonesia, being one of the
opportunities and revenue streams in the future. The marketing Malaysia) highest spending
strategy could include destinations that are compatible with • Engage marketing agencies specific to the demographics
Muslim beliefs and have certain requirements and needs when target country so as to attract a better • Diversify existing
traveling such as the availability of Halal food and prayer understood market by a local agency tourism markets
facilities. • Enable channels of
communication
between tourism
operators and those
from targeted countries,
particularly Malaysia
9 Estimates derived from WERSM
Deloitte Touche Tohmatsu IOT Tourism Review: Action Plan 21Indian Ocean Territories Tourism Action Plan
5. Infrastructure
Action Evidence Why How Outcomes Timing
5.1 Upgrade signage and Consultation There is limited signage on the Cocos (Keeling) Islands and • Review existing signage to determine • Improve the visitor Short Term
erect signage for findings sections Christmas Island. This creates difficulties for visitors navigating where signage needs to be upgraded or experience
island navigation 4.3 and 4.6 the islands. Signage should direct visitors to places of interest, erected • Support small
(IOT) including directing visitors to business areas with restaurants businesses by directing
and cafes. For example, signage should be erected on Home visitors to commercial
Island at the ferry terminal to help orientate visitors to the precincts
museum, café, Sandy Point and points of interest.
5.2 Develop a bird hide to Jurisdiction Review Bird watching is already a drawcard for both islands, however • Engage with a qualified ornithologist(s) for • Enhance the visitor Short Term
further develop bird section 2.6, the bird watching infrastructure is underdeveloped. Small comment on best bird watching locations experience
watching (IOT) Consultation investments in infrastructure will enhance the birdwatching for installation of bird hides and lookouts • Further promote
findings sections experience on both islands and will further promote them as a • Install bird hides and lookouts established tourism
4.1 and 4.6 destination for birdwatching. industry
5.3 Develop Consultation Several stakeholders suggested camping as a way to attract new • Identify available land for glamping sites • Diversify existing Short Term
infrastructure for findings sections markets and provide a different accommodation type. On the accommodation
semi-permanent 4.3 Cocos (Keeling) Islands, camping and glamping facilities would offerings
campsites and alleviate some of the accommodation pressure during peak • Attract new markets
glamping facilities periods such as kite-surfing season, and on both islands these
(IOT) facilities would offer a new type of accommodation, which could
attract a different demographic and provide inexpensive
accommodation options. This Action can be implemented with
Action 5.5 by repairing Pondok infrastructure and enabling
overnight stays in and around Pondoks.
Deloitte Touche Tohmatsu IOT Tourism Review: Action Plan 22Indian Ocean Territories Tourism Action Plan
5. Infrastructure
Action Evidence Why How Outcomes Timing
5.4 Build infrastructure to Literature Review The environment and existing infrastructure provide an • Meet with golf course operators to discuss • Diversify existing Medium
support sports sections 1.4, 1.6, opportunity to diversify tourism products and develop the IOTs the possible upgrade of the golf courses tourism products Term
tourism 1.10 and 1.11, into a sporting destination. Mountain biking is a sport that has on each island • Target new markets
opportunities, Jurisdiction Review been identified on Christmas Island due to the terrain through • Engage a consultant to develop a detailed • Promote the IOTs as a
including mountain 2.3 and the National Park. Mountain bike tracks can be dual-purpose to business case for the upgrade of both golf world class sporting
biking and golf (IOT) Consultation promote other activities including train running, orienteering courses to world class standards destination
findings section 4.6 and bushwalking. Another opportunity is to invest in an upgrade • Undertake a native fauna and flora impact
of the golf courses at each destination. Two world class golf assessment and identify possible mountain
courses provide opportunities to host IOT championship events biking trails through the National Park
and can include resort facilities to market all inclusive golf • Develop mountain biking trails
packages to identified target markets.
5.5 Repair and improve Stakeholders Home Island stakeholders expressed an interest in hiring family • Conduct a review of existing Pondok • Develop tourism on Long Term
Pondok consulted on the Pondoks to visitors for day use. Pondoks provide an authentic infrastructure and invest in upgrading Home Island
infrastructure, Cocos (Keeling) Cocos (Keeling) Island experience; they are exclusive, traditional where appropriate • Support local tourism
including developing Islands noted and showcase Home Island culture. Many Pondok structures • Develop a governance structure for operators on Home
a governance Pondoks are a have eroded with weather and tides. Repairing Pondoks to be Pondok maintenance Island
structure (CKI) unique part of made available for visitors provides an opportunity for Home • Expand the list of
Cocos Malay Island businesses to enter the tourism industry. Additional activities and day trips
heritage and can be services could be created, such as water taxis to Pondoks or for people visiting the
upgraded and food delivery. Cocos (Keeling) Islands
offered as a
product to support
tourism on Home
Island
5.6 Improve pedestrian Stakeholders Pedestrian access around and between settlements on • Develop a business case to construct • Encourage visitors to Medium
access around and consulted on Christmas Island is limited, forcing visitors to travel around the pedestrian pathways connecting the island spend more time Term
between settlements Christmas Island island by vehicle. and making it more pedestrian friendly exploring by foot
in Christmas Island note accessibility • Develop a business case for a • Support local
(CI) difficulties between corso/pedestrian walkway between bars businesses by providing
settlements and restaurants. more foot traffic
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