STATE BUDGET SUBMISSION 2019/2020 - VTIC
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2019/2020 STATE BUDGET SUBMISSION
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TABLE OF
CONTENTS
ABOUT VTIC ............................................................ 3
FOREWORD ............................................................. 4
SUMMARY OF RECOMMENDATIONS ......................... 6
DEMAND DRIVING PRIORITIES ................................. 7
IMMEDIATE SUPPLY PRIORITIES .............................. 9
SUPPLY PRIORITIES WITHIN THE
FOUR-YEAR FORWARD ESTIMATES ......................... 13
VTIC 2019/2020 STATE BUDGET SUBMISSION
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ABOUT
VTIC
The Victoria Tourism Industry Council (VTIC) is the peak body and leading
advocate for Victoria’s tourism and events industry. Our vision is for a globally
competitive visitor economy, where Victoria is the leading destination for
domestic and international visitors, with must-see attractions, must-do
experiences, and an unrivalled calendar of major and business events.
VTIC works to develop and support a professional, profitable and sustainable visitor
economy. By improving the business environment, we make it easier for our industry
to deliver high quality experiences, products and services to all visitors to Victoria.
VTIC’s role is to provide leadership for the tourism and events industry and support
our members through:
• Policy development, advocacy and representation;
• Industry development initiatives; and
• Business Development and support services.
VTIC’s key objectives are to:
• Be recognised as Victoria’s leading independent advocate, policy influencer
and representative body for the tourism and events industry;
• Grow a diverse and strong membership base that represents all sectors of the industry;
• Support VTIC’s members through valued and relevant business and industry
development services; and
• Operate as a financially sustainable and a well-governed organisation with a best
practice work environment.
VTIC 2019/2020 STATE BUDGET SUBMISSION
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FOREWORD
Victoria’s Visitor Economy is at the gateway
of a unique growth opportunity and it is
my pleasure to introduce VTIC’s 2019/2020
State Budget Submission which outlines
our investment blueprint.
The Tourism and Events industry in Victoria has
performed consistently well and much of this
success is attributable to the policy and investment
vision of the Andrews Labor Government. The
sector is now worth in excess of $28 billion to
Victoria’s economy and contributes to over 215,000
jobs annually. We have experienced solid year
on year growth in both domestic and international visitor arrivals to our State. With the planned
expansion of Melbourne Airport’s third runway, commitment to the vital Airport Rail Link and the
recent commencement of international services at Avalon Airport, Victoria is well-positioned to
attract even more visitors to our State.
However, our success cannot be assumed to continue because Victoria’s efforts in sustaining a
strong market position are being matched and, in many cases, surpassed by other States and other
countries. We have experienced significant growth in the State, however, this won’t be maintained
without continued effort and commitment. The sector is susceptible to global geopolitical tensions,
exchange rate fluctuations, economic downturns, consumer confidence, increased competition
and technology unpredictability.
In our industry, we deliberately refer to our sector as the “Visitor Economy” as opposed to
“Tourism”, because we have seen first-hand the pervasive impact that tourism as an industry
has on the overall economic output and employment, especially in regional Victoria.
It is increasingly important that our investment philosophy takes a broader whole-of-
economy approach in how it plans for the future.
VTIC 2019/2020 STATE BUDGET SUBMISSION
5 FOREWORD continued We must arm the State’s demand driving bodies with long-term confidence and capability in bringing visitors and events to Victoria. The competitive landscape across Australia and around the globe is intense and other tourism and events bodies are well-funded to compete with Victoria in promoting their destinations. It is imperative that we invest in providing sustained funding commitments to Visit Victoria, the Melbourne Convention Bureau and Business Events Victoria to future-proof our State’s leisure and business visitation. Victoria is unique in that it features some of Australia’s most diverse natural and aquatic landscapes within close proximity to a major metropolis. This is incongruous, however, when you consider the current statistic that only 7 cents of every international tourism dollar spent in Victoria is spent in a regional area. We must support and encourage private sector investment in world-class products, experiences and transport solutions so that visitors have compelling reasons to visit, stay overnight and spend more in regional Victoria. We must also harness the work of all our regions under a single, unified nature-based tourism strategy which positions Victoria as one marketable proposition and identifies how we can best connect our visitors with nature in a commercial and sustainable way. VTIC recognises the significant investments that have been made by the Andrews Labor Government towards Victoria’s visitor economy through both the 2018/19 State Budget and the 2018 State Election. Commitments towards major capital projects including the Geelong City Deal, the redevelopment of Marvel Stadium and the Melbourne Airport Rail Link will have a transformative impact on our industry. We are now urging Government to continue this momentum of growth and capitalise on the true potential of our industry. The State Government in its Visitor Economy Strategy set ambitious targets of reaching $36.5 billion in expenditure and 320,000 jobs by 2024/25. VTIC’s platform of investment outlined in the 2019/2020 Budget Submission sets out the roadmap that will help us collectively exceed these targets and become the first- choice destination of travel in Australia. Felicia Mariani Chief Executive VTIC 2019/2020 STATE BUDGET SUBMISSION
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SUMMARY OF
RECOMMENDATIONS
DEMAND DRIVING PRIORITIES
1. $160 million over four years for Visit Victoria
2. $50 million over four years for Melbourne Convention Bureau
3. $4 million over four years for Business Events Victoria
IMMEDIATE SUPPLY PRIORITIES
4. $235 million for the Regional Tourism Infrastructure Fund, including
funding for the ‘Sovereign Hill: Beyond Fifty’ Project
5. $4.5 million for the Bendigo Airport Terminal Redevelopment
6. $5 million for Upgrades to the Queenscliff and Sorrento Ferry Terminals
7. Use the Victorian Regional Tourism Review to develop a dedicated
Nature-Based Tourism Strategy for Victoria
8. Commit $1 million to Master Planning for the Croajingolong National Park
to complete the Four Iconic Walks of Victoria
SUPPLY PRIORITIES WITHIN THE FOUR-YEAR FORWARD ESTIMATES
9. Ensure the Federation Square Review develops a detailed and costed
Masterplan for the long-term use and development of Federation Square
10. $86 million over four years for the Werribee Open Range Zoo Expansion
VTIC 2019/2020 STATE BUDGET SUBMISSION
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DEMAND: DRIVING $160m
LONGEVITY FOR VICTORIA investment over four
years to unlock demand-
driving potential
RECOMMENDATION:
Invest $160 million over four years to unlock Visit Victoria’s demand-
driving potential
Visit Victoria, the State’s chief demand-driving body has delivered important outcomes
for the State’s Visitor Economy and become a highly reputable organisation for connecting
Victoria to the national and international visitor markets. Since its inception, Visit Victoria
has executed marketing campaigns across intrastate, interstate and international markets
and the momentum for further success is growing; however, there are risks in not diversifying
our focus and not investing for the future.
As an example, for the year-ending September 2018, international overnight expenditure from
China in Victoria grew by 20% year on year to reach in excess of $3.2 billion. Chinese visitor
expenditure now accounts for almost 40% of all international expenditure in Victoria and is
bigger than the next nine overseas markets combined. Visit Victoria’s recent Chinese campaign
and other initiatives have led to significant economic success, however there is
now a clear risk of over-reliance on the one market. Traditional markets including New
Zealand, the United Kingdom and the USA all declined in international overnight expenditure
over the same period, and these are the markets that have traditionally stayed longer and
dispersed more widely into our regional areas. While China remains a critical feeder for our
international performance, Visit Victoria must be properly resourced to diversify with adequate
spend across a broad range of markets to minimise over-reliance on any one market.
Our State’s chief demand driving body must be given the long-term security it needs to carry
out its full mandate with confidence. Visit Victoria was created to harness Victoria’s attraction
efforts to the world and it is imperative that our approach to funding match the intent of Visit
Victoria’s inception.
This submission is seeking $40 million per annum over the four years of the forward
estimates to ensure the future effectiveness of the State’s pre-eminent marketing body,
Ideally, this allocation would form part of the organisation’s base appropriation over
the coming four years to protect its position within the operating budget.
The Victorian Government has acknowledged the important role that Regional Tourism
Boards and Destination Melbourne play in destination management, industry and product
development and marketing through the allocation of responsibilities to these organisations
in the Visitor Economy Strategy. Continued support of funding the Regional Tourism Boards
and Destination Melbourne is required to ensure they remain effective in the work they
undertake on behalf of the industry.
VTIC 2019/2020 STATE BUDGET SUBMISSION8
DEMAND: DRIVING LONGEVITY FOR VICTORIA continued
RECOMMENDATION:
Invest $50 million over four years to enable strategic bidding of major business
events to Melbourne
$50m
investment over four
Melbourne is fast gaining an international reputation as Australia’s most talented, knowledgeable years for strategic
and innovative city. The thriving conferences and business events sector plays an important role bidding
in maintaining this reputation. A strong pipeline of business events fosters knowledge sharing
between Government and corporate ecosystems and creates new pathways of trade and investment.
The upcoming Union International des Transports Des Publics (UITP) Summit in 2021 is an excellent
example of a globally recognised business event that will be held against a backdrop of the State’s $4m
largest ever public transport growth agenda. This event will create valuable connections between investment over four
industries and businesses and ultimately, generate economic and knowledge capital for Victoria. years to unlock regional
business events
Business Events are the highest yielding sector of our Visitor Economy, contributing $11.2 billion
potential
in economic benefit to the State and generating over 92,000 jobs annually. As well, an increase
in business events to our State delivers additional opportunities for dispersing delegates to areas
beyond Melbourne.
Bidding for major global conferences and summits, however, is highly competitive on the global
stage. The Melbourne Convention Bureau must be able to confidently bid for events in the global
marketplace to realise economic benefits for the State over the next 10 to 15 years.
RECOMMENDATION:
Invest $4 million over four years to unlock Business Events Victoria’s potential
as the State’s only specialist marketing body for business events to regional
Victoria
The business events sector was worth an estimated $475 million to the Regional Victoria visitor
economy in 2016 and supported 3,127 jobs. Business Events Victoria (BEV) is the dedicated
convention bureau for driving business events into regional Victoria and is a unique model across
Australia that continues to be looked at with envy by other states.
BEV has been successfully representing, marketing and promoting the regional business events
industry for over 21 years. Experience over this time, reinforces that there remains a critical need
for a dedicated body whose sole purpose is to secure business events for regional Victoria.
To ensure Regional Victoria remains at the forefront of the business events sector nationally, VTIC
is seeking an investment of $4 million over four years to support the work of Business Events Victoria.
This investment will result in an increased economic impact to the State’s visitor economy in excess
of $75 million. This investment will also ensure Victoria’s competitive advantage in securing regional
business events and maximise the use of new and existing regional infrastructure. Most importantly,
the efforts of BEV make a direct contribution to offsetting seasonality and mid-week vacancies, which
perennially impacts regional economies.
VTIC 2019/2020 STATE BUDGET SUBMISSION9
SUPPLY: $235m
WORLD-CLASS PRODUCTS investment over
AND EXPERIENCES IN VICTORIA four years to develop
tourism infrastructure
in regional Victoria
IMMEDIATE PRIORITIES FOR THE SECTOR
RECOMMENDATION:
$235 million over four years to support development of tourism
infrastructure in regional Victoria, including $34 million for the ‘Sovereign
Hill: Beyond Fifty’ Project
The Government’s intent in establishing the Regional Tourism Infrastructure Fund (RTIF) was
a “pathway to accelerate delivery of regional Victoria’s high value tourism projects identified
through a regional tourism pipeline”. The Government’s previous $103 million investment
into RTIF has been an overwhelming success in achieving its primary objectives to:
• Increase visitation to regional Victoria and visitor yield;
• Boost regional tourism investment; and
• Drive new jobs across regional Victoria.
Across the State, many important regional tourism infrastructure projects will reap the
benefits of this fund and stimulate flow-on economic impact for their local communities.
These include:
• $48 million upgrade to Phillip Island Nature Park will create 620 new jobs a year including
around 110 construction personnel during redevelopment. The park attracts over 600,000
visitors a year and this project is expected to increase visitation by 20%;
• $8 million towards the Budj Bim Cultural Landscape Masterplan; AND
• $2.5 million towards the Great Stupa of Universal Compassion in Bendigo
Many vital infrastructure projects in regional Victoria are at various stages in terms of their
maturity and readiness for development. A competitive fund of this nature will support
a strong ongoing regional tourism pipeline and encourage private sector investment in
innovation and critical infrastructure. Projects such as these will play a vital role in ensuring
that visitors to our regional areas will have more reasons to stay longer and spend more.
VTIC 2019/2020 STATE BUDGET SUBMISSION10 SUPPLY: WORLD-CLASS PRODUCTS AND EXPERIENCES IN VICTORIA continued Reinstituting this fund is vital to regional Victoria being able to deliver the quality experiences that are expected from today’s global consumers and could effectively support outcomes recommended from the Regional Tourism Review that has been called for by Government. Victoria is already losing $4.5m ground when it comes to international spend in our regional areas. There have been 4 quarters of investment for Bendigo’s decline over the past 12 months in international spend to Regional Victoria, sitting now at 7 cents Airport Terminal of every international dollar spent, being spent in a regional area. In stark contrast, at a national redevelopment level, that figure is 14.5 cents of every international dollar spent is in Regional Australia. The ‘Sovereign Hill: Beyond Fifty’ project will deliver a suite of new and exciting infrastructure that will enhance the visitor experience at one of Victoria’s most treasured tourism icons and boost regional overnight stay and spending. It is a “once in a generation” transformation of the Museum that coincides with the 50th (Golden) Anniversary of Sovereign Hill in 2020. The multi-stage development will deliver a new world-class entry building and arrival experience, refurbishment of the Gold Museum in Ballarat and a new Big Events Building for major functions, conferences and corporate events. The project is expected to boost annual visitation to Sovereign Hill from the current 800,000 to 1 million visitors by 2025/26 and attract even more international visitors to the broader region. The total project commitment is for $50 million. With Sovereign Hill contributing $7 million through capital fundraising and the Federal Government committing $9 million to support this project, a further $34 million commitment is required from State Government to fully realise this development. The project will generate 193 new jobs for the region, will contribute $145.6 million to the Victorian economy and will provide a $2.50 : $1.00 return on investment. RECOMMENDATION: $4.5 million for the redevelopment of Bendigo’s Airport Terminal From March 2019, Qantas will begin offering a direct Bendigo to Sydney return service six days a week, which is a game-changing development for the region. Regional aviation is a critical growth market for our visitor economy as it focuses on core domestic and international markets and provides direct and more efficient access for visitors to our regions. To enable Qantas’ expansion to Bendigo and grow this market, a redeveloped terminal building is needed to meet current aviation and safety standards. The project will deliver a raft of new passenger facilities and is expected to generate up to 40 direct and indirect local jobs during construction and 53 jobs through the local economy once operational. Importantly, the opportunities realised from visitors not needing to travel to Melbourne as the initial point of entry to the State will result in greater access to the region’s attractions, nature and food and wine offering. This direct service also opens easier connections to other regional infrastructure developments such as the Grampians Peak Trail and the proposed Echuca Entertainment Precinct. In addition, with the recent announcement that the RMIT Flight Training School is establishing a presence in Regional Victoria, and that they have chosen Bendigo as the site for this crucial training, the improvement of Bendigo Airport becomes even more vital. It is projected they will commence training in Bendigo from July this year. This redevelopment project is also seeking $4.395 million from the Federal Government and the City of Greater Bendigo has committed $1 million to the project. VTIC 2019/2020 STATE BUDGET SUBMISSION
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SUPPLY: WORLD-CLASS PRODUCTS AND EXPERIENCES IN VICTORIA continued
RECOMMENDATION:
The Queenscliff and Sorrento Ferry Terminals – $5 million
$5m
investment for
The Queenscliff-Sorrento ferry is the busiest passenger and car ferry service in Australia. Over the Ferry Terminals
next 13 years, there is projected to be an extra 3.7 million people visiting the Mornington Peninsula
region every year. The ferry docks currently suffer from inadequate facilities, shelter and traffic
congestion.
The Two terminals are an important part of the visitor arrival and departure experience and their
redevelopment helps take this product from a passenger ferry to a world-class tourism experience
across the iconic Port Phillip Bay. The industry welcomed the Federal Government’s funding
announcement towards this project and is urging State Government investment in this critical piece
of infrastructure to our regional dispersal and performance.
While this submission is requesting $5 million from the State Government, this development is
actually a $36 million project with $10 million already committed by the Federal Government, $20
million committed by Searoad Ferries and $1 million committed by the Mornington Peninsula Shire.
The project will create 188 new jobs during construction and 853 new jobs over the post-construction
period up to 2032. Furthermore, the development will inject $47.5
million into the local economy during construction, and an
additional $67.3 million over the post-construction period.
RECOMMENDATION:
Use the Victorian Regional Tourism
Review to develop a dedicated Nature-
Based Tourism Strategy for Victoria
VTIC has welcomed the Victorian Government’s recently
announced Regional Tourism Review which will examine ways
to ensure our regions benefit from increased international
expenditure and overnight visitation.
While there are several ways to support tourism in the regions,
a major opportunity lies in leveraging Victoria’s significant nature-based
tourism strengths. Nature-Based tourism is one of the Victorian Visitor
Economy’s most prized assets and unlike much of Australia, visitors can
access a diverse collection of nature experiences within proximity
to a major metropolitan centre. Nearly 70 per cent of the almost 8 million
visitors to Australia in 2017 engaged in some form of nature-based activity.
VTIC 2019/2020 STATE BUDGET SUBMISSION12
SUPPLY: WORLD-CLASS PRODUCTS AND EXPERIENCES IN VICTORIA continued
At a time when competitor states are making significant in-roads in showcasing their natural wonders
to the world, there is a compelling need for Victoria to have its own dedicated Nature-Based Tourism
Strategy to capture a greater share of the visitor dollar, especially in our regions. Such a Strategy will: $1m
to complete four Iconic
• Harness and bring together regional Victoria’s destination plans under a single vision
Walks of Victoria
for the State;
• Arrest the downward trend of overnight international expenditure in regional Victoria, which
currently stands at under 7% of total overnight international expenditure – that same figure
at the national level is 14.5 cents of every international dollar being spent in regional areas;
• Provide the domestic and international visitor markets with a more compelling and engaging
proposition for Victoria, that aligns with modern visitor expectations of Australia.
We therefore urge the Victorian Government to use the Regional Tourism Review to develop
and deliver an informed Nature-Based Strategy to guide the state’s supply side needs in creating
and delivering compelling natural experiences across Victoria.
RECOMMENDATION:
Completion of the Four Iconic Walks of Victoria by committing $1 million
to Master Planning for the Croajingolong National Park
Victoria is fast becoming Australia’s premier bushwalking and hiking destination, but further
investment is needed to fully capitalise on this unique nature-based tourism opportunity.
The “Walk Victoria’s Icons” is an important strategy that showcases Victoria’s natural landscapes,
wildlife and cultural values and generates tourism dollars for the State by providing further avenues
for visitor spending.
The Croajingolong Coastal Wilderness Walk is an “Iconic” walk of Victoria that needs Government
support to provide a significant boost for Victoria’s East Gippsland region. VTIC is recommending
an allocation of $1 million for the master planning to commence around the final piece to complete
our Four Iconic Walks of Victoria.
VTIC 2019/2020 STATE BUDGET SUBMISSION13
SECTOR PRIORITIES $86m
WITHIN THE FOUR-YEAR over five years for
FORWARD ESTIMATES Werribee Open Range
Zoo expansion
RECOMMENDATION:
Ensure the Federation Square Review develops a detailed and costed
Masterplan for the long-term use and development of Federation Square
The recently announced review to consider Federation Square’s future is welcome.
It provides not only a timely opportunity to examine Federation Square’s financial and
governance arrangements, but critically re-think the future vision of the iconic precinct
to ensure it continues to grow as an innovative and exciting place for our community.
VTIC urges the Victorian Government to use the review to develop a holistic masterplan
for the square’s next twenty years. This must be undertaken through comprehensive analysis
of all the cultural and economic factors affecting the square and in close consultation with
business and the wider community.
A key focus of the master planning process must be on determining ways to further
strengthen connections between Melbourne’s sporting and cultural precincts, grow tourism
visitation and strike the best balance between commercial and civic use.
Given that there has not been any significant investment in capital works and maintenance
of the Federation Square site for nearly two decades, the masterplan must also determine
the appropriate level of recurrent government funding to support its public program
and maintenance into the future.
RECOMMENDATION:
$86 million over five years for the expansion of Werribee Open Range Zoo
The proposed Werribee Open Range Zoo (WORZ) Expansion involves a total investment
of $86m over a five-year period, with the goal of creating Australia’s premier open range
zoo leisure experience and helping to reshape the existing experience. The project, due
for completion in December 2023, will serve both the local burgeoning population as well
as the growing domestic and international tourist market to the region. With direct air
services on Air Asia now arriving at Avalon airport, creating compelling experiences in the
region is vital to support the growth of those services.
VTIC 2019/2020 STATE BUDGET SUBMISSION14 SECTOR PRIORITIES WITHIN THE FOUR-YEAR FORWARD ESTIMATES continued The proposed 5-year investment will significantly increase the attractions and activities at WORZ and will be delivered in stages. The early projects will improve overall visitor capacity and visitor flows within the zoo through additional exhibits, visitor amenities, widening of paths and dispersing of visitors across the zoo. These works are required in the early stages to prepare for the Elephant Sanctuary development, ensuring the zoo can manage the increased visitation expected from this exhibit. An Economic Contribution Study by Ernst Young estimates that, during the 5-year construction phase, the expansion will generate an average of $17.3m in direct output and $5.8m in value added each year, while directly supporting 41 jobs per year over the period. The WORZ Expansion is expected to increase visitation to over one million visitors by 2023-24 when the Elephant Sanctuary is completed, with over 113,000 of those visitors coming from interstate and overseas. The Cost Benefit Analysis shows that the expansion will provide a significant economic return on investment, with $2.20 in economic benefits provided for every dollar invested. VTIC 2019/2020 STATE BUDGET SUBMISSION
Level 3 150 Collins St Melbourne 3000 (03) 8662 5425 info@vtic.com.au
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