STATE BUDGET SUBMISSION 2020/2021
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2020/2021 STATE BUDGET SUBMISSION
2
TABLE OF
CONTENTS
ABOUT VTIC ............................................................................... 3
SNAPSHOT OF VICTORIA’S VISITOR ECONOMY ............................ 4
SUMMARY OF RECOMMENDATIONS ............................................. 6
BOOST DEMAND TO GROW VICTORIA’S VISITOR ECONOMY .......... 8
SUPPORT VISITOR ECONOMY RECOVERY AND RESILIENCE
IN THE WAKE OF BUSHFIRES AND CORONAVIRUS ..................... 11
GROW VICTORIA’S REGIONAL VISITOR ECONOMY BY
INVESTING IN IMPROVED VISITOR EXPERIENCES AND
INFRASTRUCTURE .................................................................... 14
IMPROVE THE VISITOR EXPERIENCE ALONG THE GREAT
OCEAN ROAD TO SUPPORT PHASE 2 OF THE SHIPWRECK
COAST MASTERPLAN ................................................................ 17
VTIC 2020/2021 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
• 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
• Operate as a financially sustainable and a well-governed organisation with a best
practice work environment
VTIC 2020/2021 STATE BUDGET SUBMISSION
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SNAPSHOT OF VICTORIA’S
VISITOR ECONOMY
Victoria’s visitor economy is highly diverse, incorporating a broad cross-section of industries
including accommodation, attractions, hospitality services, tour and transport operators,
business events, major events, sport and recreation, and arts and culture.
Victoria is unique in that it features some of Australia’s most diverse natural and aquatic
landscapes, all within proximity to a major metropolis.
Tourism and events contribute over $31 billion to the Victorian economy each year and employ
more than 230,000 people.
TOTAL TOURISM SPEND IN VICTORIA’S REGIONS
(Daytrip, domestic and international overnight)
Goldfields
murray
$1.3 billion
$1.6 billion
18.6%
9.7%
Daylesford and victoria’s high country
the Macedon Ranges $1.3 billion
$516 million 21.5%
11.9%
mornington peninsula
$1.3 billion
gippsland
7.1% $1.1 billion
grampians 16.8%
$474 million
0.2%
yarra valley and
dandenong ranges
$871 million
22.2%
phillip island
$549 million
19.5%
great ocean road geelong and the bellarine
$1.5 billion $1.1 billion
5.3% 12.3%
VTIC 2020/2021 STATE BUDGET SUBMISSION
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SNAPSHOT OF VICTORIA’S VISITOR ECONOMY continued
TOURISM GROSS REGIONAL PRODUCT AND JOBS IN VICTORIA’S REGIONS
(% of regional economy / % of regional jobs noted in brackets)
Goldfields
murray
GRP: $880 million (6.3%)
GRP: $1.1 billion (7.2%)
Jobs: 9,400 (7.1%)
Jobs: 13,000 (8.7%)
Daylesford and victoria’s high country
the Macedon Ranges GRP: $905 million (22.4%)
GRP: $283 million (10.1%) Jobs: 10,400 (24.9%)
Jobs: 4,200 (13.8%)
mornington peninsula
GRP: $1 billion (8.9%)
gippsland
Jobs: 10,700 (9.4%) GRP: $813 million (6.5%)
grampians Jobs: 9,200 (8.4%)
GRP: $267 million (6.3%)
Jobs: 3,700 (8.9%)
yarra valley and
dandenong ranges
GRP: $610 million (6.6%)
Jobs: 7,200 (7.3%)
phillip island
GRP: $395 million (34.7%)
Jobs: 4,300 (35%)
great ocean road geelong and the bellarine
GRP: $1.1 billion (15.4%) GRP: $819 million (6.1%)
Jobs: 11,800 (17.6%) Jobs: 8,500 (7%)
VTIC 2020/2021 STATE BUDGET SUBMISSION
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SUMMARY OF
RECOMMENDATIONS
Boost Demand to Grow Victoria’s Visitor Economy
Strengthen visitor demand in Victoria by providing secure and competitive funding to key
demand-driving organisations, including:
• A four-year funding commitment of $160 million to Visit Victoria (i.e. $40 million
annually)
• A four-year funding commitment of $60 million to the Melbourne Convention Bureau
(i.e. $15 million per annum)
• A four-year funding commitment of $4.56 million to Business Events Victoria (i.e.
$640,000 annual operating budget and $500,000 annual bid fund).
Support Visitor Economy Recovery and Resilience in the Wake of
the Bushfires and Coronavirus
• Provide funding of $15 million over two financial years to enable Visit Victoria to
undertake much-needed crisis recovery marketing and promotion
• Provide a 3-year funding agreement of between $7 million and $9 million per annum
to support deliverables under Victoria’s new Regional Tourism Partnerships and
enable these Partnerships to play a leadership role in regional recovery efforts
• Reinstitute the Regional Tourism Infrastructure Fund (RTIF) with $50 million per
annum over the four-year forward estimates
• $7 million for Parks Victoria to redevelop damaged visitor infrastructure to
accommodate reshaping peak visitation periods
• Commit $50 million to the construction of the Cowes to Stony Point Ferry service
• Establish a Regional Events Fund with $5 million per annum over the four-year
forward estimates
VTIC 2020/2021 STATE BUDGET SUBMISSION
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SUMMARY OF
RECOMMENDATIONS (cont.)
Grow Victoria’s Regional Visitor Economy by Investing in Improved
Visitor Experiences and Infrastructure
• Create a Strategic Destination Masterplan for Victoria
• Develop a Regional Heritage and Cultural Landscapes Tourism Strategy
• Progress an industry-led Nature-based Tourism Strategy
• Extend the maximum length of commercial leases in national parks to at least 49
years
• Establish new categories of public land assets that allow greater mixed use
• Purchase additional land assets, particularly in areas surrounding existing national
parks, and establish planning regimes in areas surrounding national parks
• Conduct a state-wide skills gap analysis and develop a Victorian Regional Tourism
Workforce Strategy
• Provide full funding for Melbourne’s Airport Rail Link to ensure it includes a dedicated
rail line and underground tunnel and offers a competitive alternative to other
transport options
• Establish a Flagship Victorian Gateway Visitor Servicing Centre in Melbourne
Improve the Visitor Experience Along the Great Ocean Road to
Support Phase 2 of the Shipwreck Coast Masterplan
• Support key private sector led projects that have the potential to take pressure off
visitation patterns along the Great Ocean Road and improve the visitor experience;
for example, the Eden Project and Cape Otway Road Australia (CORA) Project.
VTIC 2020/2021 STATE BUDGET SUBMISSION
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$16.2b BOOST DEMAND TO GROW
overnight visitors from
VICTORIA’S VISITOR ECONOMY
around Australia spent in
Victoria
Victoria attracts visitors from around Australia and overseas who travel for many reasons,
3.1m
including education, holiday, business and to visit friends and family.
In the year ending June 2019, overnight visitors from around Australia spent $16.2 billion
Victoria attracted in Victoria, which was 14 per cent more than the previous year.
overnight international
Compared with other states and territories, Victoria performs well in terms of its ability to
visitors
attract international visitors.
Victoria attracted 3.1 million overnight international visitors in the year ending June 2019,
which was four per cent more than the previous year. These visitors spent $8.6 billion,
representing an increase in spending of seven per cent over the previous 12-month period.
Victoria’s performance was second only to New South Wales (NSW). In the same year, NSW
attracted 4.4 million international visitors (representing an increase of one per cent) who
spent $11.3 billion, eight per cent more than the previous year.
Spending by visitors from Victoria’s top domestic and international markets increased
steadily. China, India and the US all delivered healthy growth rates for expenditure, with
7.2 per cent, 23.2 per cent and 16.2 per cent respectively. Our key domestic markets
also performed well with NSW up 8.6 per cent, Queensland up 8.0 per cent and Western
Australia up 56.0 per cent.
While overall visitor demand increased in Victoria, visitor spending from some key markets
decreased in the year ending June 2019. This included spending by overnight visitors from
South Australia (down 3.4 per cent), Malaysia (down 1.6 per cent), United Kingdom (down
1.3 per cent), and New Zealand (down 7.2 per cent).
Strengthening visitor demand is crucial to Victoria’s economic performance and jobs
growth.
Demand-driving bodies such as Visit Victoria, the Melbourne Convention Bureau and
Business Events Victoria play a key role in facilitating business growth and driving
economic return to support Victoria’s financial future. By way of example, Visit Victoria
is charged with implementing consumer activities nationally and overseas that aim to
achieve increases in visitor spending across the state to $36.5 billion by 2025 and grow the
visitor economy to support more than 320,700 jobs.
VTIC 2020/2021 STATE BUDGET SUBMISSION
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BOOST DEMAND TO GROW VICTORIA’S VISITOR ECONOMY continued
However, successive State Budgets have failed to provide Visit Victoria with the long-term funding
4th
that enables it to negotiate global programs and promotions for anything longer than 12 months.
The current bushfire and coronavirus crises have been prime examples of how this annual
funding approach is hampering the responsiveness of the State’s key marketing body as they Melbourne is now
have been unable to commit financial resources to activities with no guaranteed funding beyond ranked fourth in the
Asia-Pacific region for
30 June 2020.
contracted hotel rooms
In its inception year, Visit Victoria was provided a two-year funding allocation of $38 million per in the development
annum. In the last two budget cycles, while that funding level was maintained, they were only pipeline
provided allocations for each of those respective financial years.
Given that international operations work to two- or three-year time frames, not being able to
commit to programs outside of the current financial year, puts Victoria at a real disadvantage in
securing collaborations with overseas partners and distributors.
Similarly, Melbourne Convention Bureau (MCB) is facing stronger competition from Sydney and
expectations from the Melbourne hotel sector are high as the growth in room stock in the city
starts to outstrip demand.
With the expansion of the Melbourne Convention Exhibition Centre (MCEC) in July 2018, the target
is for MCEC to attract an additional 74,000 international delegates each year. MCB is working hard
to secure international events that will achieve this delegate target.
Melbourne is now ranked fourth in the Asia-Pacific region for contracted hotel rooms in the
development pipeline. Hotel supply growth in the central business district has already begun to
outstrip demand growth and that trend is forecast to continue. New room stock in Melbourne’s
hotel sector is projected to increase up to 57 per cent by 2023.
Victoria’s major competitor, Business Events Sydney, now receives more than double the amount
of operational funding from the NSW Government than what is allocated to MCB. As such, NSW
has been able to extensively ramp up its business development activities and employ additional
staff in key areas to drive their objectives and deliver outcomes.
Business events are equally vital to sustaining the visitor economy in our regional areas. Business
events fill a crucial gap in the business activity cycle of regional venues and experiences, making
up most mid-week events and those in vital off-peak and shoulder seasons.
Business Events Victoria (BEV) has been highly effective in the promotion and acquisition of
business events delivered in regional Victoria. However, its track record has been challenged in
the past year, as other states are now keenly focused on battling to secure these events for their
regions.
The NSW Government has just launched its Regional Conferencing Strategy. It has committed $6
million over four years ($1.5 million a year) to establish a Regional Conferencing Unit, support
regional businesses in securing business events and establish a Scholarship Fund to build the
capability of the industry in regional NSW. In addition, it implemented a $500,000 grant funding
pool to help secure national business events for regional NSW.
VTIC 2020/2021 STATE BUDGET SUBMISSION
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BOOST DEMAND TO GROW VICTORIA’S VISITOR ECONOMY continued
Tasmania and South Australia, two key competitor states for business events in regional Victoria,
have also implemented generous bid funds to help attract and secure key events for their states.
Without secure and competitive funding guaranteed within the four-year forward estimates, the
ability of Visit Victoria, MCB and BEV to effectively compete in national and international arenas
will be hampered. This will only reduce the outcomes that those agencies are able to deliver in
working to grow Victoria’s visitor economy.
RECOMMENDATIONS
Strengthen visitor demand in Victoria by providing secure and
competitive funding to key demand-driving organisations, including:
• A four-year funding commitment of $160 million to Visit Victoria (i.e.
$40 million annually)
• A four-year funding commitment of $60 million to the Melbourne
Convention Bureau (i.e. $15 million annually)
• A four-year funding commitment of $4.56 million to Business Events
Victoria (i.e. $640,000 annual operating budget and $500,000 annual
bid fund).
VTIC 2020/2021 STATE BUDGET SUBMISSION11
SUPPORT VISITOR ECONOMY 45%
RECOVERY AND RESILIENCE IN impact of the
THE WAKE OF BUSHFIRES AND coronavirus on the
visitor economy’s
CORONAVIRUS performance
Victoria’s tourism and trade sectors have taken a significant hit from the bushfires and
coronavirus outbreak.
The bushfires have not only harmed regional Victoria’s brand as a tourism destination but
damaged the infrastructure and natural assets many regional tourism operators depend on
to support their businesses.
Booking cancellations are high, extending into areas not directly affected by the bushfires.
Visitation and spending losses have flowed on to retail, accommodation and supply chain
businesses. The impact of this disaster comes during what should have been the peak
domestic travel season for tourism and, while federal and state level campaigns have been
launched to attract visitors back and assist business in bushfire-affected communities, most
operators face a path to recovery that will be long and difficult.
This challenging business environment has been compounded further by the outbreak of
the coronavirus. With the health scare resulting in a national travel ban on all mainland
Chinese travellers, Victoria’s visitor economy is facing a major crisis. China’s visitor
expenditure generates 39 per cent of total international visitor expenditure in Victoria (more
than the next nine international markets combined).
A recent VTIC member survey confirms the devastating impact of the coronavirus on
the visitor economy’s performance with 45 per cent of respondents indicating they have
experienced cancellations from Chinese visitors and 51 per cent reduced forward bookings.
The same survey shows 20 per cent of respondents are experiencing immediate cash flow
challenges and 45 per cent have reduced staff shifts or cut staffing levels in response to the
significant downturn in visitor demand.1
1
VTIC member Survey: Impact of Coronavirus and Travel Ban, February 2020
VTIC 2020/2021 STATE BUDGET SUBMISSION12
SUPPORT VISITOR ECONOMY RECOVERY AND RESILIENCE IN THE WAKE OF
BUSHFIRES AND CORONAVIRUS continued
Building Back Better
This disaster has
highlighted the need to While the visitor economy’s recovery from the impact of bushfires and the coronavirus will depend
expand the peak travel on a range of support measures, it presents an opportunity to ‘Build Back Better’. From the
period beyond DEC/JAN perspective of the infrastructure reconstruction task, ‘better’ means visitor facilities and services
that are not only more resistant to natural hazards, but more modern, more environment-friendly,
more aesthetically appealing and more aligned to changing consumer preferences. It’s also
imperative that the rebuild focuses on creating infrastructure that supports visitation outside of
the traditional summer peak season. This disaster has highlighted the need to expand the peak
travel period beyond DEC/JAN and design contemporary infrastructure that accommodates visitors
travelling in the shoulder seasons of OCT/NOV and FEB/MAR/APR.
Parks Victoria is in prime position to dramatically influence shifting visitation in our nature-
based assets to stretch beyond the traditional peak summer season. There was significant
bushfire damage to existing accommodation infrastructure that was predominantly exposed to
the elements. Additional funding to this agency will allow them to rebuild all-weather roofed
accommodation that is better suited to contemporary consumer expectations and allow for stays in
the shoulder season when weather may be somewhat inclement.
The Regional Tourism Infrastructure Fund (RTIF) has previously played a key role in spurring
projects that would attract increased visitors to our regions, increase visitor yield, deliver an
improved experience for those who visit and reside in regional Victoria and stimulate increased
private sector investment. Its reinstatement would provide a timely fillip to fast track the recovery
process in regional areas devastated by bushfires by investing in game-changing infrastructure and
experiences that can have a positive halo effect to the broader region.
Connecting our visitors from the Great Ocean Road to Gippsland
Separate to a contestable infrastructure fund, Victoria has the chance right now to facilitate a major
boost to regional touring across the state by funding the development of the Cowes to Stony Point
Ferry. This critical piece of infrastructure will serve to finally join Victoria’s major international
drawcard of the Great Ocean Road with the attraction of Phillip Island Nature Parks and the
broader Bass Coast and Gippsland region. Importantly this ferry link would also connect our two
internationally recognised touring routes, allowing visitors travelling the Sydney Melbourne Touring
Route to easily join up with the Great Southern Touring Route, taking in Geelong and the Bellarine,
Great Ocean Road, Ballarat and Grampians. This has been the missing link in delivering the solution
to allow for ease of travelling across our regional areas without crossing through the city; allows for
the creation of multi-night itineraries that would deliver much needed overnight stays in regional
areas from our international visitors; and take the pressure off the swelling number of day-trippers
along the Great Ocean Road by offering expanded touring options for visitors.
VTIC 2020/2021 STATE BUDGET SUBMISSION13
SUPPORT VISITOR ECONOMY RECOVERY AND RESILIENCE IN THE WAKE OF
BUSHFIRES AND CORONAVIRUS continued
RECOMMENDATIONS
• Provide funding of $15 million over two financial years to enable Visit
Victoria to undertake much-needed crisis recovery marketing and
$50m
promotion in our key domestic and overseas markets commitment to the
construction of the
• Provide a funding allocation of between $7 million and $9 million Cowes to Stony Point
to support deliverables under Victoria’s new Regional Tourism Ferry service
Partnerships, enabling these Partnerships to play a key role in the
current bushfire recovery effort and be leaders in growing the state’s
regional economies
• Leverage the power of events to drive visitors back to the regions by
establishing a Regional Events Fund with $5 million per annum over
the four-year forward estimates
• Reinstitute the Regional Tourism Infrastructure Fund (RTIF) with $50
million per annum over the four-year forward estimates to deliver
game-changing infrastructure and experiences that will super-charge
recovery efforts in regional areas
• $7 million for Parks Victoria to redevelop damaged visitor
infrastructure to accommodate reshaping peak visitation periods
– this would apply to $2 million for Buchan Caves to build better
all-weather roofed accommodation; $1 million for Point Hicks
Lighthouse to improve the accommodation offering and interpretive
visitor experience; and $4 million for Cape Conran to build better all-
weather roofed accommodation
• Commit $50 million to the construction of the Cowes to Stony Point
Ferry service delivering the transport connection that allows us to
join our major touring routes from the Great Ocean Road through to
Gippsland
• Continue to provide land tax, stamp duty and payroll tax relief to
tourism and other small businesses impacted by the bushfires
• Ensure a sufficient funding pool is available to support grant
assistance to directly affected visitor economy businesses and
organisations. Streamline applications for case by case relief for
businesses not automatically eligible for assistance
VTIC 2020/2021 STATE BUDGET SUBMISSION14
GROW VICTORIA’S REGIONAL
$7.7b VISITOR ECONOMY BY
Regional Victoria
attracted the highest INVESTING IN IMPROVED
investment value for
its projects with 25% of VISITOR EXPERIENCES AND
the nation’s investment
pipeline INFRASTRUCTURE
Boosting Victoria’s regional visitor economy into the next decade and beyond will take a
fresh approach from government and industry.
Tourism underpins the strength of regional Victoria, generating $8.1 billion in economic
activity and directly and indirectly employing over 92,400 people, representing just over
10 per cent of the total employment in regional Victoria.
The industry supports small businesses and contributes to the resilience, diversity and
vibrancy of local economies across the state.
Between 2013 and 2018, regional Victoria experienced the highest growth rate for total
tourism businesses (+3.4 per cent or +800 businesses) out of all non-capital city regions
across Australia.
This was supported by growth in large-employing regional tourism businesses (+29.8 per
cent), medium (+4.4 per cent) and micro (+2.7 per cent) business types.
In 2018-19 Victoria’s tourism investment pipeline included 49 projects with a collective
value of $11.3 billion, accounting for 25 per cent of Australia’s total tourism investment
pipeline. Regional Victoria attracted the highest investment value with projects valued at
$7.7 billion, representing 68 per cent of total tourism investment across the state.
While this performance is encouraging, we need to focus on specific areas of under-
performance to accelerate growth and sustain a leading position.
The overall level of tourism infrastructure investment is strong;
however, it is not as broad-based as it needs to be. For
example, Victoria is still 10 per cent below the national
average in terms of the proportion of investment in regional
accommodation and experience development.
International visitors account for just one
percent of visitors in regional Victoria, compared to
VTIC 2020/2021 STATE BUDGET SUBMISSION15
GROW VICTORIA’S REGIONAL VISITOR ECONOMY BY INVESTING IN IMPROVED
VISITOR EXPERIENCES AND INFRASTRUCTURE continued
Melbourne where internationals make up nine per cent of visitors.
Victoria must find
More concerning is the fact that, for every dollar spent in Victoria by a visitor, 37 cents is spent
ways to increase the
in our regional areas. That figure lags significantly behind the national average of 44 cents spent overall appeal of and
in regional areas across Australia. If Victoria were able to close that gap, it would result in a $3.8 connectivity to our
billion increase to the value of the visitor economy in our state. regional destinations
There is great potential for Victoria’s regional visitor economy to secure deeper, wider and more
sustainable growth, but this will not happen by chance. There are many levers that government
has at its disposal to supercharge the growth of the tourism sector and ensure the state reaches
its visitor economy targets out to 2025 and beyond.
Victoria must find ways to increase the overall appeal of and connectivity to our regional
destinations to attract new and repeat visitors and encourage them to stay longer and spend
more in our regions. With our regional areas so reliant on the visitor economy for their economic
viability, it’s imperative that we exercise every opportunity to drive growth and improve
performance in the sector.
RECOMMENDATIONS
• In a similar fashion to the 2019 NSW Government State-wide
Destination Management Plan, create a Strategic Destination
Masterplan for Victoria that sets the vision for how we present
Victoria on the global stage and links to existing plans across
Victoria’s regions
• Develop a Regional Heritage and Cultural Landscapes Tourism
Strategy aimed at attracting investment to leverage regional
Victoria’s rich cultural offering
• Progress an industry-led Nature-based Tourism Strategy to
coordinate the creation of unique and compelling experiences in and
around Victoria’s national parks
• Extend the maximum length of commercial leases in national parks
to at least 49 years
• Establish new categories of public land assets that allow greater
mixed use (e.g. biodiversity preservation and tourism and
recreational activities that are currently prohibited in national
parks, either through prohibitive lease arrangements or on-foot only
VTIC 2020/2021 STATE BUDGET SUBMISSION16
GROW VICTORIA’S REGIONAL VISITOR ECONOMY BY INVESTING IN IMPROVED
VISITOR EXPERIENCES AND INFRASTRUCTURE continued
mobility restrictions)
• Purchase additional land assets, particularly in areas surrounding
existing national parks, and establish planning regimes in the areas
surrounding national parks (public and private land holdings,
including newly established categories of public land assets referred
to above) that support private sector investment in tourism and
recreation
• Conduct a state-wide skills gap analysis and develop a Victorian
Regional Tourism Workforce Strategy
• Provide full funding as previously agreed for Melbourne’s Airport
Rail Link to ensure it includes a dedicated rail line and underground
tunnel and offers a competitive alternative to other transport options
• Establish a Flagship Victorian Gateway Visitor Servicing Centre
in Melbourne that acts as a hub for sharing information, creating
itineraries and encouraging dispersal of visitors to the far-reaching
corners of regional Victoria.
VTIC 2020/2021 STATE BUDGET SUBMISSION17
IMPROVE THE VISITOR $362m
EXPERIENCE ALONG THE In visitor spend from
GREAT OCEAN ROAD TO domestic day trip
visitors
SUPPORT PHASE 2 OF
THE SHIPWRECK COAST
MASTERPLAN
The visitor economy is vital for the growth of businesses and communities along the Great
Ocean Road.
In 2017-18 tourism generated employment for 11,800 people, representing 17.6 percent of
the region’s employment (direct and indirect jobs).
In the year ending June 2019, the region received a total of 6.6 million visitors who spent
approximately $1.5 billion.
The Great Ocean Road is experiencing substantial growth in visitor numbers. In the year
ending June 2019 the number of domestic daytrip visitors increased by 15.5 per cent
to 3.7 million, domestic overnight visitors increased by 14.8 per cent to 2.6 million and
international overnight visitors increased by 14.5 per cent to 251,000.
Yet visitor spending has not grown at the same rate as the number of visitors.
Domestic daytrip visitors spent $362 million, which represents a strong increase of 10.4 per
cent. However, growth in spending by overnight visitors has not been as robust.
Expenditure by domestic overnight visitors was estimated to be $987 million, representing
a moderate increase of 4.6 per cent. Spending by international overnight visitors over the
same period decreased by 3.7 per cent to $109 million.
The increase of visitors along the Great Ocean Road is putting significant pressure on traffic
flows and existing tourism infrastructure without delivering the full potential of economic
outcomes to local communities.
More needs to be done to ensure communities along the Great Ocean Road can benefit
from the growth in visitor numbers to their region.
While the Shipwreck Coast Masterplan promises to address some of these issues, it will
likely be five to 10 years before any of the major infrastructure improvements are realised.
VTIC 2020/2021 STATE BUDGET SUBMISSION18
IMPROVE THE VISITOR EXPERIENCE ALONG THE GREAT OCEAN ROAD TO
SUPPORT PHASE 2 OF THE SHIPWRECK COAST MASTERPLAN continued
In the interim, we urge the government to consider experienced-based and private sector led
initiatives, such as the Anglesea Eden Project and the Cape Otway Road Australia Project, which
have the potential to address some of the region’s growth pains by helping to disperse visitors
and better manage traffic flows. Further information on these projects is provided below.
Anglesea Eden Project
The $150 million Anglesea Eden Project has been proposed by the Eden Project, which is a
United Kingdom based charity.
The project plans to transform a disused coal mine in Anglesea into an eco-tourism
attraction.
The concept plan includes a 100-hectare lake to replace the open cut coal mine and an
educational centre, including physical exhibitions and virtual reality, to teach visitors
about the natural world.
The project promises to attract 750,000 visitors a year, create more than 1300 new jobs
and generate $350 million across the Surf Coast region in its first 10 years of operation.
This includes 300 new full-time staff at the Eden Project Anglesea and 200 additional jobs
supported by visitor spend. Construction works will directly support 170 jobs in the G21
Geelong region and a further 700 indirect jobs.
The Project includes significant parking for over 1000 vehicles and surplus areas which
could be used as a hub for businesses that offer car and other vehicle hire services. This
would help disperse visitors and better manage traffic flows along the Great Ocean Road.
However, without government support to fund a water pipeline to the proposed site the
Eden Project at Anglesea is unlikely to go ahead.
Cape Otway Road Australia Project
The Cape Otway Road Australia (CORA) development has been proposed by an Australian
private company, COESR Pty Ltd.
The $350 million infrastructure project includes an elite athlete training, accommodation,
retail and tourism facility on a 240-hectare site along Cape Otway Road.
CORA will provide an iconic attraction that can support changing the visitor economy of
both the Great Ocean Road and Victoria. The elite sports facility will support
and grow Victoria’s reputation as a global sporting capital. It will provide
an exciting new visitor attraction and much needed four- to five-star
accommodation. It also presents an alternate journey to the Great
Ocean Road and aligns to the market needs of global travellers.
The project is currently awaiting government planning approvals.
VTIC 2020/2021 STATE BUDGET SUBMISSION20
Level 3
150 Collins St
Melbourne 3000
(03) 8662 5425
info@vtic.com.au
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