Introduction

The ideas and information contained in this module are primarily directed at local government management and staff, particularly those who supervise or direct tourism activity in their municipalities. Invariably, the impetus and drive to establish and sustain a successful tourism area resides with local government. While the private sector accommodates, feeds and entertains the visitors, it is the myriad of items handled by local government – from road quality to street cleanliness – that often determines whether a person will return and will tell others to visit.

It needs to be remembered that, while much of the information presented will have common threads applicable to many regions, the issues and success stories presented in this module have been influenced by local factors and, therefore, may not directly translate to other areas.

This module highlights many of the elements that need to be considered when wishing to establish a successful tourism destination. They are grouped under three key topics:

• Development & Infrastructure
• Leadership
• Marketing & Communications

Each key topic also includes a number of case studies from around Victoria, interstate or overseas, which practically highlights how a town or region has approached and met the challenges.

Not all regions can be, or should be, tourism destinations. Just as every region does not have the qualities to be an agricultural or manufacturing centre, a community needs to carefully evaluate its assets to determine whether tourism is a viable option. Some of the material presented under Development & Infrastructure will help communities to decide whether they have the potential to meet the needs of today’s visitors.

Click here to read a checklist of key attributes considered important to the establishment of a tourism destination

Benefits of Tourism

The tourism dollar can deeply permeate a local economy. Because tourism is a labour-intensive industry and because most of the participants are micro to small business operators, its effect is felt quickly and directly through local spending. For those communities that do have the potential to become a successful tourism destination and are willing to commit to its ongoing development, the benefits are more than just economic.

Click here to read about some of the obvious and not so obvious benefits deriving from a vibrant tourism industry

Measuring tourism’s impact on your community

Tourism is a powerful economic force and makes a sizeable contribution to Victoria’s economy. It is currently worth $10.9 billion, or 5.3% of Victoria’s Gross State Product – a 50% increase since 1998. The Government aims to increase this to at least $18 billion by 2016, including the creation of at least 20,000 new jobs.

Of the $10.9 billion, interstate visitors account for $2.8 billion (25%), internationals generate $3.1 billion (28%) and Victorians travelling within Victoria generate $5.1 billion. Conferences and meetings alone generate $1 billion per year, or nine per cent of Victoria’s total tourism revenue.

The labour-intensity of tourism and hospitality means that it takes about 15 people to generate $1 million of economic benefit, as opposed to 1.3 people to generate the same amount in the mining sector. About 6.6 per cent of the state work force are employed in the tourism, hospitality and events industries – 159,000 jobs. For every $99,000 spent by tourists, it is estimated that one additional job is created for the state.

Victoria’s regions do not miss out either. Tourism is worth $3.4 billion to regional Victoria and employs 61,000 regional people.

Until recently, measuring the effect of tourism activity on a town or region was restricted to anecdotal evidence and crude statistical analysis. A range of tools is now available that put some rigour into the exercise. These include the Commonwealth Government’s Tourism Impact Model (T.I.M.)

Click here to read about the Tourism Impact Model