StateoftheRegion_TourismintheCradleCoast

AuthorsAuthorsAuthorsAuthors

Todd Denham

Paul Fleckney

Fiona Dunn

Reviewed ByReviewed ByReviewed ByReviewed By

Mike Ruzzene

© Copyright, Urban Enterprise Pty Ltd, August 2008.

This work is copyright. Apart from any use as permitted under Copyright Act 1963, no part

may be reproduced without written permission of Urban Enterprise Pty Ltd.

Document InformationDocument InformationDocument InformationDocument Information

Filename CC SOR DRAFT report 20111209

Version 2.0

Last Saved 20 December 2011 2:07 PM

Last Printed 20 December 2011 2:52 PM

File Size 628 kb

DisclaimerDisclaimerDisclaimerDisclaimer

Neither Urban Enterprise Pty. Ltd. nor any member or employee of Urban Enterprise Pty. Ltd. takes

responsibility in any way whatsoever to any person or organisation (other than that for which this report has

been prepared) in respect of the information set out in this report, including any errors or omissions therein.

In the course of our preparation of this report, projections have been prepared on the basis of assumptions

and methodology which have been described in the report. It is possible that some of the assumptions

underlying the projections may change. Nevertheless, the professional judgement of the members and

employees of Urban Enterprise Pty. Ltd. have been applied in making these assumptions, such that they

constitute an understandable basis for estimates and projections. Beyond this, to the extent that the

assumptions do not materialise, the estimates and projections of achievable results may vary.

U R B A N E N T E R P R I S E P T Y L T D

O C T O B E R 2 0 1 1

CONTENTS

EXECUTIVE SUMMARY I

I NT R O D UCT I O N I

T O UR I S M M A R K E T A N A L Y S I S I

T O UR I S M P R O D UCT A N D E XP E R I E N CE S I

R E G I O N A L M A R K E T I N G I I

T O UR I S M G O V E R N A N CE I I

I S S UE S A N D O P P O R T U NI T I E S I I

R E CO M M E N D E D A CT I O N S I I I

1. INTRODUCTION 1

1 .1 . PR O J E CT O V E R V I E W 1

1 .2 . T H E CR A D L E C O A S T R E G I O N 1

1 .3 . M E T H O D O L O G Y 2

2. TOURISM MARKET ANALYSIS 4

2 .1 . CO N T E XT 4

2 .2 . T R E N D S I N A US T R A L I A N T O UR I S M 5

2 .3 . T A S M A N I A N T O UR I S M TR E N D S 6

2 .4 . CR A D L E C O A S T T O UR I S M T R E N D S 1 0

2 .5 . T O UR I N G R O UT E S 1 7

2 .6 . M A R K E T P E R CE P T I O N S 1 8

2 .7 . T O UR I S M M A R K E T P R O J E CT I O N S A N D F O R E C A S T S 2 0

3. TOURISM PRODUCT AND EXPERIENCES 22

3 .1 . I N T R O D U CT I O N 2 2

3 .2 . S UM M A R Y 2 2

3 .3 . PR O D UCT A U D IT 2 3

3 .4 . PR O D UCT D E V E L O P M E N T A N D I N V E S T M E N T 2 7

3 .5 . CR A D L E C O A S T E XP E R I E N CE S 3 2

4. REGIONAL MARKETING 35

4 .1 . O V E R V I E W 3 5

5. TOURISM GOVERNANCE 38

5 .1 . I N T R O D U CT I O N 3 8

5 .2 . S UM M A R Y O F F I N D I N G S 3 8

5 .3 . T O UR I S M R E S P O N S I B I L I T I E S 4 0

5 .4 . T O UR I S M O R G A NI S A T I O N S 4 0

6. ISSUES AND OPPORTUNITIES 47

6 .1 . I N T R O D U CT I O N 4 7

6 .2 . PR O D UCT D E V E L O P M E N T 4 7

6 .3 . S E A S O N A L I T Y 4 7

6 .4 . R E G I O N A L A C CE S S I B I L I T Y 4 8

6 .5 . R A T I O N A L I S A T I O N O F T O UR I S M O R G A N I S A T I O N S A N D S E R V I CE S

4 8

6 .6 . R E G I O N A L M A R K E T I N G 4 9

6 .7 . R E CO M M E N D E D A CT I O N S 4 9

APPENDIX A TOURISM BUSINESS SURVEY RESULTS 50

STATE OF THE REGION T OU R I S M I N TH E CR A DL E C O A S T

F I G UR E S

F I G UR E 1 1 0 Y E A R V I S I T A T IO N T R E N D S 4

F I G UR E 2 O V E R S E A S T R A V E L B Y A US T R A L I A N S 2 0 0 5 -1 1 5

F I G UR E 3 V I S I T O R T Y P E S : A V E R A G E 2 0 0 8 -1 1 6

F I G UR E 4 T A S M A NI A N T R A V E L D E S T I N A T I O N S 2 0 0 5 -1 1 7

F I G UR E 5 V I S I T O R Y I EL D 2 0 0 8 -2 0 1 1 7

F I G UR E 6 V I S I T O R A CT I V I T I E S I N T A S M A N I A 8

F I G UR E 7 A CCO M M O D A T I O N C H O I CE S – T A S M A N I A 2 0 1 0 / 11 8

F I G UR E 8 CR A D L E CO A S T B US I N E S S O N L I N E P R E S E N C E 9

F I G UR E 9 CR A D L E CO A S T V I S I T A T I O N 2 0 0 1 -2 0 1 1 1 1

F I G UR E 1 0 N O R T H WE S T V I S I T A T I O N 2 0 0 1 -2 0 1 1 1 1

F I G UR E 1 1 N O R T H WE S T V I S I T A T I O N 2 0 0 1 -2 0 1 1 1 1

F I G UR E 1 2 V I S I T O R S B Y S T A T E : 2 0 10 -1 1 1 2

F I G UR E 1 3 A V E R A G E V I S I T O R S M O N T H R E T UR N E D F R O M T R I P 1 3

F I G UR E 1 4 A V E R A G E V I S I T O R S T A Y – T A S M A N I A N R E G I O N S 1 4

F I G UR E 1 5 CR A D L E CO A S T V I S I T O R A CT I V I T I E S 1 4

F I G UR E 1 6 R E A S O N S F O R V I S I T I N G - O V E R N I G H T 2 0 0 7 -1 1 1 5

F I G UR E 1 7 A C CO M M O D A T I O N US E 1 5

F I G UR E 1 8 T O UR I N G R O UT E V I S I T O R S 1 7

F I G UR E 1 9 T O UR I N G R O UT E V I S I T O R N I G H T S 1 7

F I G UR E 2 0 V I S I T O R M A R K E T CH A N G E S 2 0 0 6 -2 0 1 1 1 8

F I G UR E 2 1 CR A D L E CO A S T V I S I T A T I O N P R O J E CT I O N S 20 1 1 - 2 0 2 0 2 0

F I G UR E 2 2 I N C O M E CH A N G E 2 0 1 0 / 1 1 T O 2 0 1 1 / 1 2 2 1

F I G UR E 2 3 CR A D L E CO A S T P R O D UCT P R O F I L E 2 4

F I G UR E 2 4 R E G I O N A L P R O D U CT P R O F I L E 2 4

F I G UR E 2 5 P R I V A T E I N V E S T M E N T I N T O UR I S M 2 7

F I G UR E 2 6 K I N G I SL A N D P R O D U CT 3 4

F I G UR E 2 7 M A R K E T I N G S P E N D 3 6

F I G UR E 2 8 CR A D L E CO A S T A UT H O R I T Y M A R K E T I N G A WA R E N E S S 4 3

F I G UR E 2 9 CO U N C I L M A R K E T I N G A WA R E N E S S 4 4

T A B L E S

T A B L E 1 N A T I O N A L T O UR I S M T R E N D S 2 0 0 0 -2 0 1 0 5

T A B L E 2 T A S M A N I A N T O U R I S M T R E N D S 2 0 0 7 -2 0 1 1 6

T A B L E 3 T O UR I S T I N F O R M A T I O N S O UR CE S P R E - A R R I V A L 9

T A B L E 4 V I S I T O R N I G H T S B Y T O W N , 2 0 0 8 -0 9 T O 20 1 0 -1 1 1 2

T A B L E 5 K I N G I S L A N D V I S I T A T I O N B Y O R I G I N S T A T E 2 0 0 5 -1 1 1 3

T A B L E 6 R O O M O C CUP A N C Y R A T E S 1 6

T A B L E 7 T R E N D A N D P O T E N T I A L G R O WT H 2 0 1 0 -2 0 2 0 2 0

T A B L E 8 K E Y P R O D U CT S T R E N G T H S 2 2

T A B L E 9 R E G I O N A L F O O D O F F E R 2 5

T A B L E 1 0 A CC O M M O D A T I O N P R O V I S I O N 2 6

T A B L E 1 1 T O P 1 0 A CC O M M O D A T I O N L O C A T I O N S 2 6

T A B L E 1 2 T O UR I S M B US I N E S S I N V E S T M E N T 2 9

T A B L E 1 3 B A R R I E R S T O I N V E S T M E N T 3 0

T A B L E 1 4 A CC O M M O D A T I O N P R O V I S I O N : 2 0 0 2 A N D 20 1 1 3 1

T A B L E 1 5 D E S T I N A T I O N M A N A G E M E N T - P R I M A R Y R E S P O N S I B I L I T I ES 4 0

T A B L E 1 6 CR A D L E CO A S T A UT H O R I T Y P E R F O R M A N CE 4 3

T A B L E 1 7 CO U N CI L P E R F O R M A N CE 4 4

T A B L E 1 8 L O C A L T O UR I S M A S S O C I A T I O N P E R F O R M A N C E 4 5

CR A D L E CO A S T A UT H O R I T Y

i O C T O B ER 2011

EXECUTIVE SUMMARY

INTRODUCTION

The purpose of this report is to provide an overview of the state of the tourism industry in the

Cradle Coast region, which comprises the Councils of Burnie, Central Coast, Circular Head,

Devonport, Kentish, King Island, Latrobe, Waratah-Wynyard and West Coast.

The investigation is based on an overview of the region’s tourism market trends in the context

of both Australia and Tasmania, review of key tourism documents, an audit of products and

experiences and wide ranging consultation with the region’s tourism stakeholders.

Consultation included:

• local government and industry workshops;

• Individual meetings with stakeholders; and,

• A survey of tourism businesses.

TOURISM MARKET ANALYSIS

The Australian tourism industry experienced increased international visitation and

expenditure in the year ending June 2011, although there was a significant decline in

domestic tourism. The major decline has been in visitor nights by Australians, which was

below 2005 levels in the year to June 2011. Data indicates that increasing outbound

international travel by Australians is one reason for this: a trend linked to the strong exchange

rate. The Tasmanian travel data also represents mixed results, with declines in key indicators

but with steady growth in expenditure between 2007-08 and 2010-11.

The Cradle Coast region has experienced a decline in its tourism market over the past

decade, particularly in the West Coast. The tourism trends in Tasmania indicate that the

visitation is moving towards shorter higher yielding stays, with a reduction in the number of

people undertaking extended tours of the state. This change in Tasmanian visitation has

most notably impacted on the West Coast, which is predominantly an overnight destination

due to its remote location.

The North West has a different visitation profile than the West Coast, as its greater resident

population and high quality road access and proximity to Launceston provide it with

substantial daytrip and visiting friends and relatives market in addition to the holiday makers

BUSINESS PERFORMANCE AND CONFIDENCE

The Tourism Business Survey indicates that half of the Cradle Coast region’s tourism

operators expect that their income will increase in 2011/12. Businesses also predict that the

two most significant regional tourism markets, intrastate and interstate, will increase over the

next five years. This indicates that although visitation has declined, the industry maintains a

positive outlook.

TOURISM PRODUCT AND EXPERIENCES

The tourism product and experience audits identified that the region has a very strong nature

based offer, with nature based nodes activity nodes at Cradle Mountain, the West Coast and

the Tarkine region.

The West Coast has a diverse suite of products and experiences that relate to the vast

wilderness in the region, with other product strengths relating to the convict and mining

history. The low supply of productive agricultural land on the West Coast means there is

limited local produce to be offered, although the seafood industry based at Strahan may

provide opportunities for tourism related development

The North West also has strong nature based products, which may be added to if the

proposal for an improved access and new products and experiences in the Tarkine

eventuates. Another key strength of this region is its local produce, which also supports a

strong food and dining offer in the region.

The largest tourism development currently approved in the Cradle Coast region is the golf

course at Cape Wickham on King Island. This may provide support for further investment into

tourism product on the island, initially in accommodation and food provision. Other possible

developments in the region include a 5-star hotel in Burnie, a restaurant and accommodation

ii STATE OF THE REGION T OU R I S M I N TH E CR A DL E C O A S T

in Strahan, a new glass bottom boat to operate out of Stanley, 3 star and backpackers

accommodation in Smithton and investment into the Devonport Airport.

Most of the accommodation provided in the region is in camping venues, with a capacity of

over 7,500 sites. In addition there are over 4,700 bed spaces in hotels and motels in the

region. Devonport and Strahan are the largest accommodation centres; both offer an

accommodation capacity of over 1,000 bed spaces excluding camping.

Available data on accommodation provision, and the information provided in the Tourism

Business Survey both indicate that the level of investment in tourism over the past decade

has not been sufficient to drive increased length of visitor stay. As businesses identify visitor

demand as the most significant barrier to business growth, and investment is a factor in

stimulating increased visitation, strategic and coordinated product development and

marketing may be required to address this situation.

REGIONAL MARKETING

The restructure of Tourism Tasmania’s regional operations recommends the North West and

the West Coast be affiliated with the one Regional Tourism Organisation, rather than in

separate Zone Marketing Groups.

The Tourism Business Survey indicates that the highest proportion of their marketing spend is

allocated to cooperative campaigns, therefore the structure of regional marketing is an

important consideration.

The other complexities with regional marketing structure are how Cradle Mountain and King

Island are aligned. Cradle Mountain sits across the two regions, with most visitors entering in

the North West, but the product has more in common with the West Coast. Visitors to King

Island are mainly Victorians, and the local operators indicate that they may compete more

with the North West than complement it.

TOURISM GOVERNANCE

The review of tourism governance in the Cradle Coast region indicates that:

• Most operators indicated that they thought that the Cradle Coast Authority had

performed well in supporting the region’s tourism industry. The main area identified for

improvement was their direct relationships with industry;

• Overall, industry thought that the move to a Regional Tourism Organisation in place of

the Zone Marketing Groups was a positive one; and’

• There is a belief that there are too many Local Tourism Associations and Visitor

Information Centres in the region, particularly in the North West.

The Tourism Business Survey provided an indication of what organisations should be

responsible for in the development of tourism in the region:

T O UR I S M T A S M A N I A :

• Interstate and international marketing, product development, business development,

and visitor markets and industry research.

CR A D L E CO A S T A UT H O R I T Y :

• Intrastate marketing, product development, networking, training, business development

tools and advice, and events.

L O CA L G O V E R N M E N T :

• Events

L O CA L T O UR I S M A S S O C I A T I O N S :

• Visitor Information Services

ISSUES AND OPPORTUNITIES

The consultation and research into the Cradle Coast region’s tourism industry has identified

these issues and opportunities:

• Facilitating investment in tourism product, both new and existing;

• Identifying strategies to either promote winter visitation or reduce the impact of the low

visitation on business viability;

• Reducing the impact of the remoteness, real or perceived, on tourism in the region, and

particularly the West Coast;

• Reviewing and rationalising the organisations and resources allocated to tourism to

ensure the most value and benefit can be obtained;


iii O C T O B ER 2011

• Determining how to best market the region; as a whole or as the North West and the

West Coast, and also consider how Cradle Mountain and King Island align within these

regions.

RECOMMENDED ACTIONS

In order to address the issues and opportunities identified in this report, the following actions

are recommended:

• Agreement on a GovernanceAgreement on a GovernanceAgreement on a GovernanceAgreement on a Governance roles and responsibilities.roles and responsibilities.roles and responsibilities.roles and responsibilities. This will ensure that there is no

overlap in responsibilities by Governance organisations and that there are clear roles for

the RTO, LTAs Local Government and Tourism Tasmania.

• Tourism Product Development and Opportunities PlanTourism Product Development and Opportunities PlanTourism Product Development and Opportunities PlanTourism Product Development and Opportunities Plan: A study which takes the product

audit of this report and identifies investment opportunities across the region targeted to

gaps in provision and demand and preferences of future visitor markets. This will

ensure that product and experiences in the region have currency for future markets.

• Marketing, Communications and Product Awareness Plan. Marketing, Communications and Product Awareness Plan. Marketing, Communications and Product Awareness Plan. Marketing, Communications and Product Awareness Plan. There is need for a plan for

Cradle Coast region which clearly identifies key market segments for future focus,

media which should be used to target markets and product and destinations which

should be the focus of external marketing. This plan should also support and promote

the recommendations of the Tourism Product Development and Opportunities Plan.

• Review of visitor information services: Review of visitor information services: Review of visitor information services: Review of visitor information services: Consumption of visitor information has changed

significantly in the past 10 years and it is essential that resources and effort are linked to

demand and visitor needs. A review of the provision of online visitor information

services, walk in VICs, collateral and the need for smart phone based information

should be considered.


1 O C T O B ER 2011

1. INTRODUCTION

1.1. PROJECT OVERVIEW

This report examines the state of tourism in the Cradle Coast region, which encompasses

nine municipalities: Burnie, Central Coast, Circular Head, Devonport, Kentish, King

Island, Latrobe, Waratah-Wynyard and West Coast.

The report is an investigation into the state of tourism in the Cradle Coast region, and

responds to the following circumstances:

• Recent negative growth experienced within the Cradle Coast region due to a

number of external factors including, changes in travel patterns as a result of the

high Australian dollar, the emergence of discount airlines and general economic

uncertainty impacting decisions to spend disposable income; and

• The new state-wide approach to tourism as outlined in Tourism Tasmania’s 2010

Review of Regional Tourism, which is encouraging a stronger regional focus and the

establishment of effective Regional Tourism Organisations (RTO’s). The Cradle

Coast region is keen to gain an insight into the current state of tourism in order to

inform and support this direction.

Specifically, this report includes:

• A review of the current state of tourism in the region;

• Analysis of the regional visitor profile, current regional performance, visitation

growth forecasts and examining emerging markets;

• Insights into the confidence of the region’s tourism operator’s perspectives;

• A regional experience and product audit;

• An examination into the structure of the regional industry; and

• Indentifying future project opportunities.

1.2. THE CRADLE COAST REGION

The Cradle Coast region includes two of Tourism Tasmania’s marketing zones, the North

West and the West Coast. The West Coast is analogous to the West Coast Council, and

the North West is the 8 other Councils of the Cradle Coast Authority.

This report includes comparison and analysis of the two areas, and also of Cradle

Mountain as a separate entity, as it spans both regions. Although Cradle Mountain is

generally included in the West Coast marketing material, as it aligns with the wilderness

attributes of that region, it is also connected to the North West. One of the entry points to

the Mountain for travellers from Devonport or Launceston is via Sheffield in the Kentish

municipality, and also through the Mole Creek area: both of these access points are in the

North West.

One significant difference between the North West and the West Coast is the resident

population: the 2006 census found just over 5,000 living in the West Coast compared to

over 90,000 in the North West. This difference has impacts on tourism in the two regions,

as the North West has a greater Visiting Friends and Relatives market, and also greater

local population to draw on to support businesses such as food and attractions.

As this report considers whether the North West and the West Coast should continue to

be marketed independently, it is also an opportunity to consider how Cradle Mountain, an

iconic tourism destination, aligns with these regions. When considering the products and

experiences on offer in the Cradle Coast region, Cradle Mountain is analysed separately

to the regions. The data available from Tourism Tasmania and Tourism Research

Australia includes Cradle Mountain in the North West.

2 STATE OF THE REGION T OU R I S M I N TH E CR A DL E C O A S T

1.3. METHODOLOGY

1.3.1. CONSULTATION

A series of consultation processes and workshops have been undertaken to inform the

development of this State of the Region Report, including:

• Industry and local government workshops conducted with:

• 9 representatives at Queenstown

• 13 representatives at Burnie

• 14 representatives at Strahan

• 10 representatives at Wynyard, and

• 13 representatives at Devonport

• Individual meetings and phone interviews with a range of stakeholders, including

private enterprise, Local Tourism Associations and Visitor Information Centre staff;

Tourism Tasmania and,

• A tourism business survey, completed by 118 businesses.

The information collected across these three forms of consultation was summarised to

identify the key themes for tourism in the Cradle Coast region, including opportunities for

growth and obstacles for further development of the tourism industry.

1.3.2. STRATEGIC DOCUMENT REVIEW

A review of tourism strategies for the region has been undertaken to support the

development of this report, including:

• Tourism 21: The Tasmanian Government & Tasmanian Tourism Industry Joint

Strategic Business Plan 2011-2013

• Regional Tourism Review: The Way Forward (KPMG, 2010)

• Regional Initiative Framework (Tourism Tasmania, 2011)

• Motivations Research: Appeal Triggers And Motivations For Tourism In

Tasmania (Tourism Tasmania, 2011)

• Business Case For Seed Funding Support (Food Connections Tasmania, 2011)

• Mountain Bike Tourism Market Profile For Tasmania (Inspiring Place, 2008)

• Cradle Coast Regional Tourism Development Plan 2012/2018: Rationale

• Tarkine Tourism Development Strategy (CCA, 2008)

• Tarkine Aboriginal Tourism Plan (CCA, 2009)

• From Source To Sensation: Tasmania’s Cradle Coast Food And Beverage

Strategy 2005-08 (Redinca)

• Living In A Wild World: Cradle Coast Mining Heritage Experience Strategy

2006-2009 (Housego)

• Circular Head Tourism Association Annual Report 2010-11

• Assessment of Potential Experience Projects for the Stanley Tourism Precinct

(Inspiring Place, 2006)

• Local Food And Wine Experience: Assessment Of A Potential Experience

Project For The Stanley Tourism Precinct (Inspiring Place, 2006)

• Waratah-Wynyard Draft Tourism Plan 2011-2020

• Somerset – Options Paper

• Host Community Perceptions Of The Social Impacts Of Tourism In Tasmanian

Communities: Kentish Community (Victoria University)

• Mount Roland: Developing a Destination (Kentish Shire, 2010)

1.3.3. OVERVIEW OF DATA SOURCES

There are three surveys that provide data on tourism in the Cradle Coast region and

Tasmania that has been analysed throughout this report: the Tasmanian Visitor Survey

carried out by Tourism Tasmania, and two surveys undertaken by Tourism Research


3 O C T O B ER 2011

Australia, the National and International Visitor Surveys. Each of these surveys covers

different aspects of tourism, as noted below.

The data used in this report is up to the year ending June 2011: this was the most recently

published tourism data by both Tourism Research Australia and Tourism Tasmania when

the analysis of tourism trends was undertaken.

T A S M A N I A N V I S I T O R S UR V E Y ( T V S )

The TVS survey captures visitors entering Tasmania via scheduled air and sea services,

and therefore excludes intrastate visitors, and charter flights. The TVS provides greater

detail on the visitors to Tasmania than the other surveys, including niche markets, and

key tourism attractors in the state. There is some indication that there are regular charter

flights to the golf courses in Bridport, which would not be captured in the TVS even though

they are interstate and/or international visitors.

N A T I O N A L V I S I T O R S UR V E Y ( N V S )

Tourism Research Australia is responsible for conducting the National Visitor Survey.

120,000 Australian residents are interviewed annually about their travel for the NVS,

capturing interstate and intrastate visitation. The information NVS provides includes

visitor destinations, origins, activities, nights spent, travel methods, activities and

expenditure. Respondents can identify Dorset as a destination in the survey.

I NT E R N A T I O N A L V I S I T O R S UR V E Y ( I V S )

Tourism Research Australia also conducts the International Visitor Survey. The IVS is

conducted in the departure lounges of 8 international airports in

Australia: Sydney, Melbourne, Brisbane, Cairns, Perth, Adelaide, Darwin and the Gold

Cost. 40,000 departing tourists are interviewed about their time in Australia. Respondents

can identify the North West and the West Coast as places visited in the survey.


2. TOURISM MARKET ANALYSIS

2.1. CONTEXT

A brief overview of trends in the national and state tourism markets provides context for

recent trends in the Cradle Coast region’s tourism.

The three charts in Figure 1 use the Year ending June 2001 to act as a base to index

visitation to Australia, Tasmania and the Cradle Coast region over the past decade. In all

three markets, changes in visitation to Tasmania are reflected in changes in visitation to

the Cradle Coast region.

Although the changes in international visitation to Tasmania are reflected in the Cradle

Coast region’s tourism data since 2006, the region did not benefit from the large increase

in visitors to the state between the years ending June 2003 and June 2006. Of note is that

both the Cradle Coast region and Tasmania received an increase in visitation in the last

year much greater than the slight increase in international visitation to Australia.

Overnight visitors to both Cradle Coast region and Tasmania outperformed the rest of the

country for most of the last decade, except for a decline in the overnight stays in the

region in the years ending June 2010 and 2011. There were notable peaks in people

staying overnight in region during the years ending June 2003 and 2007.

Overall daytrips in Australia are essentially the same for the year ending June 2011 as

they were in the year ending June 2001: the Australian population has increased by 20%

in this past decade indicating that the daytrip market overall has lost market share. The

Cradle Coast region and Tasmanian statistics for daytrips closely correlate, and declined

noticeably in the year ending June 2011.

FIGURE 1 10 YEAR VISITATION TRENDS

Source: TRA: NVS and IVS, Year Ending June 2001 to June 2011

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

June 2001

June 2002

June 2003

June 2004

June 2005

June 2006

June 2007

June 2008

June 2009

June 2010

June 2011Year Ending

International

Visitors

Australia Tasmania Cradle Coast

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

June 2001

June 2002

June 2003

June 2004

June 2005

June 2006

June 2007

June 2008

June 2009

June 2010

June 2011

Overnight

Visitors

0.00

0.20

0.40

0.60

0.80

1.00

1.20

June 2001

June 2002

June 2003

June 2004

June 2005

June 2006

June 2007

June 2008

June 2009

June 2010

June 2011

Day Trips


5 O C T O B ER 2011

2.2. TRENDS IN AUSTRALIAN TOURISM

In 2008–09, tourism accounted for 2.6% of Australia’s Gross Domestic Product and

directly employed almost half a million people or 4.5% of the labour force. Tourism is

Australia’s largest services export industry, generating around $24 billion in exports. The

industry has a significant impact in regional Australia, with 46% of expenditure occurring

in these areas1.

As shown in Table 1, total expenditure on tourism in Australia increased by almost 13%

between 2005 and 2010: the RBA provides an inflation estimate of 16% for this time

period, indicating a decline in expenditure in real terms2. Positively, there has been as

increase in international expenditure in the last year, of 5%.

Of concern is the decline in domestic tourism expenditure between 2008 and 2010,

particularly overnight expenditure. Total domestic visitor nights are less than in 2005,

even though the total population has grown by 14% since the 2006 census3.

One of the reasons put forward for the decline in overnight and daytrips taken by

Australians is the increased number of overseas holidays. Figure 2 highlights the

increase in overseas travel by Australians, which has increased by over 50% since 2005.

More notable is the increase in overseas holidays by Tasmanians: it has more than

doubled since 2005, and increased by more than 25% in the last two years. For most

people the Cradle Coast region is not a day trip destination, and the decline in overnight

visitors depicted in Figure 1 may be due to the increased number of Australians, and

Tasmanians, choosing to holiday overseas.

Roy Morgan Research tracks the holiday intentions of Australians for the following 2

years, and the results support the finding that there is an increased preference for

overseas holidays by Australians. Between 2001 and 2011 the number of Australians who

would like to holiday in Australia over next two years has fallen from 83% to 77% whereas

those who want to travel overseas has risen from 43% to 47% over the same period.

1 Tourism Research Australia: National Tourism Indicators 2010-11 Snapshot 2http://www.rba.gov.au/calculator/ 3 ABS - 2006 Census QuickStats : Australia, Population Clock (2011)

TABLE 1 NATIONAL TOURISM TRENDS 2000-2010

IndicatorIndicatorIndicatorIndicator 2005200520052005 2008200820082008 2009200920092009 2010201020102010 %Growth %Growth %Growth %Growth

2005 2005 2005 2005 ----2010201020102010

International visitor arrivals International visitor arrivals International visitor arrivals International visitor arrivals (million)(million)(million)(million)

5.05 5.16 5.17 5.44 7.72%

International visitor expenditure International visitor expenditure International visitor expenditure International visitor expenditure ($’s billion)($’s billion)($’s billion)($’s billion)

21.6 26.9 26.2 26.3 21.76%

DomestiDomestiDomestiDomestic visitor nights c visitor nights c visitor nights c visitor nights (million)(million)(million)(million)

275 271 257 259 -5.82%

Domestic visitor expenditureDomestic visitor expenditureDomestic visitor expenditureDomestic visitor expenditure ($’s billion)($’s billion)($’s billion)($’s billion)

42.9 47.2 47.8 46.2 7.69%

Day Trip expenditure Day Trip expenditure Day Trip expenditure Day Trip expenditure ($’s billion)($’s billion)($’s billion)($’s billion)

16.1 19.1 18.6 18.3 13.66%

Total tourism expenditure Total tourism expenditure Total tourism expenditure Total tourism expenditure ($’s billion)($’s billion)($’s billion)($’s billion)

80.680.680.680.6 93.293.293.293.2 92.692.692.692.6 90.890.890.890.8 12.66%12.66%12.66%12.66%

Source: IVS, NVS

FIGURE 2 OVERSEAS TRAVEL BY AUSTRALIANS 2005-11

Source: National Visitor Survey

Australia (LHS)Tasmania (RHS)

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

0.0m

1.0m

2.0m

3.0m

4.0m

5.0m

6.0m

7.0m

2005 2006 2007 2008 2009 2010 2011

Ta

sma

nia

Ta

sma

nia

Ta

sma

nia

Ta

sma

nia

Au

str

alia

A

ustr

alia

A

ustr

alia

A

ustr

alia

Year EndingMarch


2.3. TASMANIAN TOURISM TRENDS

2.3.1. OVERVIEW

Tasmanian visitor statistics for the year ending June 2011 indicates an overall visitation

decrease of 2%, and a 5% decrease in visitor nights in the State over the year ending

June 2010. Positively, there was an 11% increase of international visitation to Tasmania,

and a 3% increase in tourism expenditure. This decline in visitor numbers and increased

expenditure provides an increased yield per visitor, with an average spend per night in the

state increasing by 9%, and the average spend per visitor increasing by 5%4.

As indicated by Table 2 total visitation to Tasmania was lower in 2010-11 than in any year

since 2007-08, mainly due to the number of day trips taken in the state. The decline in

the number of day trips taken in Tasmania between the year ending June 2010 and June

2011 was over 400,000, just under 10%. On the positive side, interstate arrivals have

increased by 1.3% a year over this period. There has also been a large increase in

visitors to Tasmania from China and Hong Kong since 2008-09, and as of 2010-11 this

was the second largest visitor market behind the UK5. The growth in the Chinese market

is recognised as a key opportunity for growth in Tasmanian tourism6.

As shown in Figure 3, Tasmania receives a lower proportion of the visiting friends and

relatives market than Australia overall: this may be attributed to there being less people to

visit in Tasmania than other states. If visiting friends and relatives is removed from the

data set, the analysis indicates that Tasmania’s proportions of holiday and business

visitors are equivalent to those for the rest of the country.

4 Tourism Tasmania, Tasmanian Tourism Snapshot: Year ending June 2011 5Tasmanian Tourism Snapshot – June 2011, June 2010 (Tourism Tasmania), International Visitor Survey (TRA, 2011) 6 Tourism 21: The Tasmanian Government & Tasmanian Tourism Industry Joint Strategic Business Plan, 011-2013.

TABLE 2 TASMANIAN TOURISM TRENDS 2007-2011

IndicatorIndicatorIndicatorIndicator 2007200720072007----2008200820082008 2008200820082008----2009200920092009 2009200920092009----2010201020102010 2010201020102010----2011201120112011 Average growth Average growth Average growth Average growth

2008200820082008----2011201120112011

International visitor arrivalsInternational visitor arrivalsInternational visitor arrivalsInternational visitor arrivals 155,900 149,500 134,500 149,900 -1.3%

International visitor expenditure International visitor expenditure International visitor expenditure International visitor expenditure ($’s million)($’s million)($’s million)($’s million)

258 268 263 257 -0.1%

Interstate visitor arrivalsInterstate visitor arrivalsInterstate visitor arrivalsInterstate visitor arrivals 744,300 773,900 786,800 774,600 1.3%

Interstate visitor expenditureInterstate visitor expenditureInterstate visitor expenditureInterstate visitor expenditure

($’s million)($’s million)($’s million)($’s million) 1.23 1.22 1.28 1.32 2.4%

Intrastate day and overnight Intrastate day and overnight Intrastate day and overnight Intrastate day and overnight visitors (million)visitors (million)visitors (million)visitors (million)

5.29 5.28 5.55 5.11 -1.1%

Intrastate expenditureIntrastate expenditureIntrastate expenditureIntrastate expenditure

($’s million($’s million($’s million($’s million)))) 691 698 724 711 0.9%

Total visitationTotal visitationTotal visitationTotal visitation 6.19 6.20 6.47 6.03 -0.9%

Total tourism expenditureTotal tourism expenditureTotal tourism expenditureTotal tourism expenditure

($’s million)($’s million)($’s million)($’s million) 2.182.182.182.18 2.192.192.192.19 2.272.272.272.27 2.292.292.292.29 1.6%1.6%1.6%1.6%

Source: Tasmanian Tourism Snapshot – June 2011, June 2010, June 2009 (Tourism Tasmania)

FIGURE 3 VISITOR TYPES: AVERAGE 2008-11

Source: National Visitor Survey, International Visitor Survey, Tasmanian Visitor Survey.

44%

32%

18%

6%

AustraliaAustraliaAustraliaAustralia

45%

28%

21%

6%

TasmaniaTasmaniaTasmaniaTasmania Holiday or leisure

Visiting friends and relatives

Business

Other


7 O C T O B ER 2011

2.3.2. DEPARTURES

Since 2005 Tasmanians have increased their travel out of the state, to both interstate and

international destinations, and have decreased their overnight travel within the State, as

shown in Figure 4. Tasmanians have more than doubled their international departures

since 2006, as discussed in section 2.2. After increasing between 2005 and 2007,

interstate departures have remained relatively stable at approximately 650,000 per year.

FIGURE 4 TASMANIAN TRAVEL DESTINATIONS 2005-11

Source: NVS

Overnight visitation within the state has decreased by almost 15% since the 2008 peak of

1.15 million. As discussed later in 2.4.3, approximately 40% of overnight visitors to the

Cradle Coast region are Tasmanians, which indicates the impact of this decline on the

region.

The Tourism 21 strategy identifies the high Australian dollar and the relative cost of air

fares to Tasmania as two factors in these tourism trends7.

7 Tourism 21: The Tasmanian Government & Tasmanian Tourism Industry Joint Strategic Business Plan, 011-2013.

2.3.3. VISITOR YIELD

The average expenditure of visitors to Tasmania has increase by almost 8% since the

year ending June 2008, as depicted in Figure 5. This is an important result, as even

though the number of visitors has decreased over this time period, total expenditure on

tourism in the state has increased, as shown in Table 2.

Expenditure by holidaying visitors increased by 12.6% over the four year period included

in Figure 5, rising from an average of $2,157 to $2,429. This is the highest yield for visitor

types to Tasmania. The lowest yielding sector was the visiting friends and relatives

market, which is to be expected.

FIGURE 5 VISITOR YIELD 2008-2011

Source: Tasmanian Visitor Survey

International

Interstate

Tasmania

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

2005 2006 2007 2008 2009 2010 2011

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

2008 2009 2010 2011Year Ending June


2.3.4. VISITOR ACTIVITIES

The most frequently activities undertaken by visitors to Tasmania include Visit historic

sites and attractions, browse at markets, visit national parks and visit craft shops, as

shown in Figure 6.

FIGURE 6 VISITOR ACTIVITIES IN TASMANIA


Activities that are experiencing growth include galleries, museums, wineries, short

bushwalks and golf. This highlights a change in experience preferences for visitors to

Tasmania, and is also likely to reflect growth in new types of tourism product aimed at

higher yielding cultural experience seeker markets.

Roy Morgan Research provides insight into the special interest markets that are most

likely to consider a Tasmanian holiday. Arts tourism (28%), Spa and wellness (25%),

heritage (23%), adventure (22%), fishing/hunting (22%) and Farm Stay (22%) and

ecotourism (21%) were the special interest areas that had a response higher than the rate

that holiday makers overall indicated an interest in visiting Tasmania (19%)8.

8 Roy Morgan Research 2011,

2.3.5. ACCOMMODATION PREFERENCES

Figure 7 shows the accommodation chosen by visitors to. Tasmania between July 2010

and June 2011. Luxury hotels are the most popular type of accommodation used by

visitors followed closely by friend’s and relative’s homes. Camping and caravanning is

also popular;

Data from the Tasmanian Hospitality Association indicates that hotel occupancy rates

decreased from 71.8% in 2008/09 to 69.6% in 2010/11. Membership requires at least 5

rooms, therefore excluding the significant number of bed and breakfasts operating in the

State.

FIGURE 7 ACCOMMODATION CHOICES – TASMANIA 2010/11

Source; Tasmanian Visitor Survey

050,000

100,000150,000200,000250,000300,000350,000400,000450,000

Nu

mb

er o

f V

isit

ors

Nu

mb

er o

f V

isit

ors

Nu

mb

er o

f V

isit

ors

Nu

mb

er o

f V

isit

ors

0

50000

100000

150000

200000

250000

300000


9 O C T O B ER 2011

2.3.6. TOURISM INFORMATION AND BOOKING SOURCES

As part of the Tasmanian Visitor Survey, respondents are asked where they source their

tourism information prior to arrival in the state, with the most recent results included in

Table 3. The need to increase the number of operators providing online booking services

was identified as an issue in the Tourism 21 strategy9.

This data provides two important insights into the most effective methods of providing

potential visitors with information:

• Web-sites and word-of-mouth are two of the most important sources of information.

• Traditional methods of providing tourist information about Tasmania are declining in

importance, particularly printed information such as travel and guide books,

brochures, magazines and newspapers.

Although not as dominant in terms of total figures, the percentage of bookings made via

the internet for Tasmanian holidays also increased by 25% between 2007-08 and 2010-

11, and can be expected to increase as more providers establish online booking

processes10. Also of note is the decline in the use of Travel Agents from 2007-08 to 2010-

11.

The main methods of online marketing employed by businesses in the region are

websites, online booking systems and Facebook, as shown in Figure 8.59% of

businesses had their own website or were represented in other websites in 2010/11.

About a third of businesses also indicated that the used online booking system; in the

year to June 2011 total bookings made through online methods, such as Wotif and Stayz,

increased by over 10%, and was used by 17% of all visitors to the state11.

9 Tourism 21: The Tasmanian Government & Tasmanian Tourism Industry Joint Strategic Business Plan, 011-2013. 10 The data includes transport, accommodation or activities, attractions booked prior to entering the state. 11 TVS: Table 8, Bookings Methods Before Entering Tasmania.

TABLE 3 TOURIST INFORMATION SOURCES PRE-ARRIVAL

July 2010 July 2010 July 2010 July 2010 ---- June 2011June 2011June 2011June 2011

%Increase %Increase %Increase %Increase 2007200720072007----08 to 08 to 08 to 08 to

2010201020102010----11111111

%Visitors%Visitors%Visitors%Visitors

Websites with Tasmanian tWebsites with Tasmanian tWebsites with Tasmanian tWebsites with Tasmanian travel informationravel informationravel informationravel information 367,400 6% 41%

AirlineAirlineAirlineAirline 345,300 15% 39%

Word of mouthWord of mouthWord of mouthWord of mouth 305,300 7% 34%

No other information used priorNo other information used priorNo other information used priorNo other information used prior 258,400 10% 29%

Travel/guide booksTravel/guide booksTravel/guide booksTravel/guide books 176,400 -23% 20%

Online only travel providerOnline only travel providerOnline only travel providerOnline only travel provider 171,700 18% 19%

BrochuresBrochuresBrochuresBrochures 159,600 -26% 18%

Travel ATravel ATravel ATravel Agentgentgentgent 159,100 -14% 18%


FIGURE 8 CRADLE COAST BUSINESS ONLINE PRESENCE

Source: Cradle Coast Tourism Business Survey, 2011.

59%

35%

33%

4%

6%

7%

Website

Online booking system

Facebook

Blogging

Twitter

YouTube


2.4. CRADLE COAST TOURISM TRENDS

2.4.1. SUMMARY

There has been a decline in the Cradle Coast region’s tourism industry, with total

visitation 18% less in the year ending June 2011 than in the year ending June 2001.

The decline has been greater in the West Coast than in the North West: one reason for

this is that the West Coast does not have significant daytrip and Visiting Friends and

Relatives markets to sustain visitation. The West Coast is predominantly a Domestic

Overnight market, while the North West has a substantial amount of day trips. The market

analysis data also provides some insight into visitation to King Island that indicates its

ongoing relationship with the rest of the North West should be considered.

The visitation data also highlights that there is significant difference between visitation to

the Cradle Coast region during summer and winter: a factor identified as restricting

business growth and sustainability during the consultation process.

The most important market for both the North West and the West Coast is Tasmanian

visitors, providing over 40% of overnight visitation plus daytrips to both regions. New

South Wales and Victoria also provide substantial numbers of visitors to both regions.

Overseas visitation provides about 10% of overnight visitors to the North West, and

between 10% and 15% for the West Coast: for all of Tasmania internationals account for

about 6% of overnight visitors.

According to the Tasmanian Visitor Survey, total visitor nights by non-Tasmanians in the

Cradle Coast region has declined significantly; by 9.3% in the West Coast and 8.5% in the

North West. The only two towns to have more visitor nights in the year to June 2011 than

in the year to June 2008 were Sheffield and Zeehan.

The National Visitor Survey data for domestic overnight trips indicates that visitors to the

island are predominantly from Victoria, although the high degree of variation in the data

indicates that it is indicative of visitation to the island at best.

Other findings of the market analysis include:

• Tourism to the Cradle Coast region is more seasonal than Tasmania as a whole,

particularly in the West Coast;

• Average length of stay for visitors to the Cradle Coast region has remained relatively

stable. North West visitors stay longer than West Coast visitors

• Visitor activities are relatively similar in both regions, with natural attractions and

history and heritage prominent.

• The main accommodation use difference between the North West and the West

Coast is the higher use of Friends and Relatives Property in the North West.

Overall, most visitors use hotels and motels.

• Holiday makers on the Cradle Coast region’s touring routes have declined since

2007/08: there has also been a decrease in vehicle hire over this period.

• More respondents to the Tourism Business Survey indicated that international and

interstate markets had increased over the past five years. Approximately 40% of

businesses indicated that intrastate visitors had increased, and another 40% that

they had decreased, indicating mixed performance in this market.

2.4.2. VISITATION

Visitation to the Cradle Coast region in all three tourism market sectors

Tourism Research Australia surveys declined between the year ending June 2001 and

the year ending June 2011, as shown in Figure 9.

The changes in visitation between the years ending June 2001 and 2011

• A total reduction in visitation by 18%;

• A reduction in overnight visitors by 9%;

• A 23% reduction in day trips; and,

• A 19% reduction in international visitation.

Visitation fell in 2008, which may be due to the Global F

recovering in 2009, total visitation fell significantly in the 2010

FIGURE 9 CRADLE COAST VISITATION 2001-2011

Source: IVS, NVS

A significant difference between the North West and the West Coast is the

number of Day Trips to each region. The remoteness and the small loc

population of the West Coast indicate that it is unlikely to be a significant day trip

destination.

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2001 2002 2003 2004 2005 2006 2007 2008

CR A D L E CO A S T A UT H O R I

in all three tourism market sectors captured by the

Tourism Research Australia surveys declined between the year ending June 2001 and

between the years ending June 2001 and 2011 are:

Financial Crisis. After

in the 2010-11 year.

2011

A significant difference between the North West and the West Coast is the

number of Day Trips to each region. The remoteness and the small local

population of the West Coast indicate that it is unlikely to be a significant day trip

FIGURE 10 NORTH WEST VISITATIO

Source: IVS, NVS

The West Coast visitation peaked noticeably in 2003 and 2007; the North West

also peaked in visitation in these years, but not as distinctly.

FIGURE 11 NORTH WEST VISITATIO

Source: IVS, NVS

2.4.3. VISITOR MARKETS

Tasmanians account for over 40% of overnight visitors to both the West Coast and North

West, with NSW and Victoria providing an additional 20% of vi

Total

Daytrips

Domestic Overnight

International

2009 2010 2011

0

400,000

800,000

1,200,000

1,600,000

2001 2002 2003 2004 2005

0

100,000

200,000

300,000

400,000

2001 2002 2003 2004 2005

West Coast

CR A D L E CO A S T A UT H O R I T Y 11

O C T O B ER 2011

NORTH WEST VISITATION 2001-2011

The West Coast visitation peaked noticeably in 2003 and 2007; the North West

in these years, but not as distinctly.

NORTH WEST VISITATION 2001-2011

Tasmanians account for over 40% of overnight visitors to both the West Coast and North

West, with NSW and Victoria providing an additional 20% of visitation in each area.

Total

Daytrips

Domestic Overnight

International

2006 2007 2008 2009 2010 2011

Total

Daytrips

Domestic Overnight

International

2006 2007 2008 2009 2010 2011

West Coast


The market profiles for North West and West Coast from an international visitor

perspective are markedly different. Visitation to North West is relatively dispersed across

Europe (43.9%), Asia (25.1%) and the rest of the world (31.0%). In contrast, international

visitation to the West Coast region is heavily concentrated from Europe (63.6%), with

significantly lower market shares from Asia (15.6%) and the rest of the world (20.5%)12.

Neither region appears to be capturing the full benefit of the emerging Chinese market:

China is now the second biggest international market for Tasmania as a whole equating

to 12.2% of all international visitors. In contrast, the Chinese market share in the North

West and West Coast regions are relatively low at 9.2% and 8.1% respectively12

FIGURE 12 VISITORS BY STATE: 2010-11

Source: NVS, year ending June 2011.

2.4.4. VISITORS BY DESTINATION

Only two destinations included in the Tasmanian Visitor Survey13 have experienced an

increase in nights spent by visitors since 2008-09, Zeehan and Sheffield.

Overall, visitation to both the West Coast and the North West has decreased over the past

three years. Also of concern is that there was a more than 13% increase in visitors to the

12 IVS, 2011 13 Note that TVS only includes visitors arriving in Tasmania via scheduled air and sea voyages – it excludes intrastate holidays, plus visitors entering the state via chartered flights or other private means. King Island visitation is not captured in the TVS.

North West that passed through without stopping over the three years, which may indicate

a reduction in yield over this period. Those passing thorough the West Coast without

stopping reduced marginally over this period.

TABLE 4 VISITOR NIGHTS BY TOWN, 2008-09 TO 2010-11

Town/ RegionTown/ RegionTown/ RegionTown/ Region 2008200820082008----2009200920092009 2009200920092009----2010201020102010 2010201020102010----2011201120112011 % Change 2008% Change 2008% Change 2008% Change 2008----

09 to 201009 to 201009 to 201009 to 2010----11111111

Zeehan 20,600 22,100 25,500 23.8%

Strahan 231,100 230,500 223,700 -3.2%

Queenstown 77,100 62,600 44,200 -42.7%

Tullah 9,200 7,000 6,200 -32.6%

Rosebery 10,000 16,200 8,000 -20.0%

WEST COASTWEST COASTWEST COASTWEST COAST 386,400386,400386,400386,400 378,100378,100378,100378,100 350,300350,300350,300350,300 ----9.3%9.3%9.3%9.3%

Cradle Mountain 228,400 205,600 208,400 -8.8%

Latrobe 38,500 33,700 32,700 -15.1%

Sheffield 33,700 40,200 36,000 6.8%

Devonport 280,300 258,000 259,300 -7.5%

Ulverstone 101,700 64,500 73,900 -27.3%

Burnie 113,500 150,500 106,700 -6.0%

Wynyard 78,200 76,300 69,500 -11.1%

Stanley 74,900 75,400 60,300 -19.5%

Smithton 31,100 21,500 34,900 12.2%

Arthur River 11,600 8,800 10,900 -6.0%

NORTH WESTNORTH WESTNORTH WESTNORTH WEST 1,099,8001,099,8001,099,8001,099,800 1,035,6001,035,6001,035,6001,035,600 1,006,4001,006,4001,006,4001,006,400 ----8.5%8.5%8.5%8.5%

TOTALTOTALTOTALTOTAL 1,486,2001,486,2001,486,2001,486,200 1,41,41,41,413,70013,70013,70013,700 1,356,7001,356,7001,356,7001,356,700 --------8.7%8.7%8.7%8.7%

Source: TVS (2011)

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

NSW VIC TAS Other

North West West Coast


13 O C T O B ER 2011

2.4.5. KING ISLAND

Unlike the rest of the destinations in the region, the majority of domestic overnight visitors

to King Island are from Victoria rather than Tasmania, as shown in Table 5: although

given the small sample size this data is indicative at best. The day trip and international

visitation are both too small to be reliable14.

TABLE 5 KING ISLAND VISITATION BY ORIGIN STATE 2005-11

Year Ending JuneYear Ending JuneYear Ending JuneYear Ending June NSWNSWNSWNSW VicVicVicVic QldQldQldQld SASASASA WAWAWAWA TasTasTasTas NTNTNTNT ACTACTACTACT TotalTotalTotalTotal

2005200520052005 9,000 3,000 12,000

2006200620062006 2,000 4,000 4,000 1,000 1,000 3,000 14,000

2007200720072007 9,000 1,000 2,000 11,000

2008200820082008 3,000 5,000 7,000

2009200920092009 3,000 3,000

2010201020102010 3,000 2,000 2,000 1,000 7,000

2011201120112011 2,000 8,000 3,000 3,000 15,000

TotalTotalTotalTotal 6,000 34,000 4000 4,000 1,000 19,000 1,000 69,000

%Total Visitors%Total Visitors%Total Visitors%Total Visitors 9% 49% 6% 6% 1% 28% 0% 1%

Source: NVS, Domestic Overnight Trips

King Island has direct services from Melbourne, and indicates that consideration should

be given to the Island as a distinct tourism destination rather than part of the North West

or Cradle Coast regions. There are also direct flights to King Island from Wynyard and

Devonport15.In discussions with representatives of the King Island tourism industry they

indicated a belief that they competed with the North West for visitors rather than offered a

complementary product.

14 TRA: International Visitor Survey 15http://www.discovertasmania.com/__data/assets/pdf_file/0005/15845/Whole_Island_Map_TR.pdf

2.4.6. SEASONALITY

The high degree of seasonality in Tasmanian tourism was noted as an issue facing the

industry in Tourism 2116. It was also the most frequently identified restraint to tourism

growth in the Cradle Coast Tourism Business Survey, with 20% of responses, and was

identified by approximately half of the respondents to a TICT survey as an issue for the

industry17. The summary of visitor trends across years from 1998 to 2011 highlights the

tourism market seasonality in the region, particularly in comparison to Tasmania, and

more notably to tourism in Australia. Of note, only 3% of overnight visitors to the West

Coast returned from their trip in August over this period.

FIGURE 13 AVERAGE VISITORS MONTH RETURNED FROM TRIP

Source: National Visitor Survey: Overnight Visitors 1998-2011]

16 Tourism 21: The Tasmanian Government & Tasmanian Tourism Industry Joint Strategic Business Plan, 011-2013. 17 TICT Industry Sentiment Survey Results. Winter Qtr: Jun-Aug 2011

0%

2%

4%

6%

8%

10%

12%

14%

16%

Tasmania North West West Coast Australia


2.4.7. LENGTH OF STAY

Figure 14 shows the change in the average visitor length of stay in each of Tasmania’s

seven tourism regions. The data indicates that:

• The West Coast region has consistently experienced the lowest average length of

stay at around 2.2 nights per trip. Conversely, the North West region has one of the

highest average length of stay at about 3.7 nights;

• Both West Coast and North West regions showed little change over the period. In

contrast, Hobart and surrounds experienced a 13% jump in average length of stay

and the Southern region saw a 52% increase.

FIGURE 14 AVERAGE VISITOR STAY – TASMANIAN REGIONS

Source: TVS, 2011

2.4.8. VISITOR ACTIVITIES

Figure 15 depicts the top 10 activities undertaken by visitors to the North West and West

Coast.

Nature based and history and heritage activities feature strongly in both regions though

are more dominant in West Coast18.

FIGURE 15 CRADLE COAST VISITOR ACTIVITIES

Source: NVS, IVS: July 2010 to June 2011

The Perceptions of Tasmania’s North West Survey of 2011 found that wilderness, local

food and wine, the coast and historic sites were the most frequent attributes that survey

respondents associated with the region.

18 The Restaurants/Cafes and Shopping categories are a standard tourist activity, that would be undertaken by most tourists regardless of location, and so are not referred to in the analysis.

0.0

1.0

2.0

3.0

4.0

5.0

6.0

2009 2010 2011

Vis

ito

r N

igh

tsV

isito

r N

igh

tsV

isito

r N

igh

tsV

isito

r N

igh

ts

West Coast North West

Hobart and surrounds Southern

East Coast Northern

Launceston and Tamar Valley

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%



15 O C T O B ER 2011

2.4.9. REASONS FOR VISITING

The predominant reason for visiting either the North West or the West Coast between

2007 and 2011 was for holidays, which accounted for 71% in the North West and 86% in

the West Coast.

FIGURE 16 REASONS FOR VISITING - OVERNIGHT 2007-11





Average Average Average Average 2007200720072007----11111111

NorthwestNorthwestNorthwestNorthwest

HolidayHolidayHolidayHoliday 200,800 213,100 196,900 186,000 199,200

Vis. Friends & RelativesVis. Friends & RelativesVis. Friends & RelativesVis. Friends & Relatives 41,300 47,000 48,000 46,100 45,600

Business & EmploymentBusiness & EmploymentBusiness & EmploymentBusiness & Employment 22,500 20,300 26,100 26,500 23,850

Conferences & SeminarsConferences & SeminarsConferences & SeminarsConferences & Seminars 3,100 3,500 4,500 2,600 3,425

TotalTotalTotalTotal OvernightOvernightOvernightOvernight 274,100 292,400 284,200 272,600 280,825

Total VisitedTotal VisitedTotal VisitedTotal Visited 406,200 417,600 414,800 411,500 412,525

West CoastWest CoastWest CoastWest Coast

HolidayHolidayHolidayHoliday 152,700 152,300 143,700 127,800 144,125

Vis. Friends & RelativesVis. Friends & RelativesVis. Friends & RelativesVis. Friends & Relatives 11,000 11,400 12,800 10,400 11,400

Business & EmploymentBusiness & EmploymentBusiness & EmploymentBusiness & Employment 7,400 5,900 6,700 7,000 6,750

Conferences & SeminarsConferences & SeminarsConferences & SeminarsConferences & Seminars 1,000 2,900 2,500 2,200 2,150

TotalTotalTotalTotal OvernightOvernightOvernightOvernight 175,700 176,700 170,100 151,600 168,525

Total VisitedTotal VisitedTotal VisitedTotal Visited 203,700 205,800 194,900 177,000 195,350

Source: TVS: Table 1c – Places Stayed Overnight

The Visiting Friends and Relatives and Business (VFR) and Employment markets are

much greater in the North West, both proportionally and absolutely. In the North West

VFR generates 16% of overnight visitation, but only 7% in the West Coast: this can be

attributed to a much higher population of people to visit in the North West.

2.4.10. ACCOMMODATION

For both the West Coast and the North West hotels, resorts, motels and motor inns were

the dominant form of accommodation used by visitors. The major differences in

accommodation use were:

• Approximately double the percentage of visitors to the North West stayed in a

friend’s or relative’s property;

• A higher proportion of visitors to the North West stayed in guesthouses and B&Bs;

very few West Coast visitors used this type of accommodation;

• Caravans and camping, and staying in their own property were significantly higher

for visitors to the West Coast.

FIGURE 17 ACCOMMODATION USE

Source; NVS, IVS: July 2010 to June 2011

This data correlates to the reasons for visiting included 2.4.9, where the much higher VFR

visitation translates to an increased number of people staying in friends or relatives

property.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Hotel resort motel or motor

Inn

Guest house or B&B

Rented house apartment flat

or unit

Caravan park or commercial

camping ground

Friends or relatives property

Own property (e.g. holiday

house)

Caravan or camping near

road or on private

property



2.4.11. ROOM OCCUPANCY RATES

Table 6 provides a summary of data included in a recent Tasmanian Hospitality

Association media release, which indicates the decline in accommodation performance in

Tasmania, and the North West in particular over the past year. The occupancy rate in the

North West region fell by over 2% in comparison the year ending July 2010, and the yield

per room was $4 lower in July 2011 than in the corresponding month in the previous year.

TABLE 6 ROOM OCCUPANCY RATES

Ave. Annual OccupancyAve. Annual OccupancyAve. Annual OccupancyAve. Annual Occupancy YieldYieldYieldYield

July ‘10 July ‘11 July ‘10 July ‘11

SouthSouthSouthSouth 79.11 79.02 102.73 98.3

NorthNorthNorthNorth 66.64 66.38 78.27 72.44

North WestNorth WestNorth WestNorth West 52.66 50.51 45.19 41.01

TasmaniaTasmaniaTasmaniaTasmania 70.54 69.62 78.67 78.55

Source: Source: Tasmanian Hospitality Association –Media Release, 19 Aug. 2011

,


17 O C T O B ER 2011

2.5. TOURING ROUTES

There are three touring routes through the region: the Western Wilderness, Cradle

Country, and The Great Nature Trail. Although these touring routes are included on the

Discover Tasmania website, they do not form part of the Zone Marketing Group

campaigns.

Between the years ending June 2008 and June 2011, the total number of car and

campervan rentals in Tasmania for holiday purposes has decreased, from 251,700 to

238,000. Although it represents less than 10% of the total rentals, there has been as

substantial increase in campervan and motorhome rentals, from 13,500 to 20,500, in this

period.

2.5.1. VISITATION

The amount of nights spent by holiday visitors has decreased for each of the three trails,

as shown in Figure 18; the decline is most noticeable for the year ending June 2010. The

total touring route visitors to Tasmania has also decreased by 9% over this 4 year period,

from 453,500 in 2007/08 to 423,500 in 2010/11.

There has also been a marginal decline in visitors returning to Tasmania that tour the

West Coast Wilderness route, for the other routes the proportion of return visitors on the

touring routes has remained approximately the same.

2.5.2. VISITOR NIGHTS

Total touring route holiday visitor nights in Tasmania has remained relatively stable over

the four years to June 201119.Figure 19 indicates that the nights spent on the Great

Nature Trail and the West Coast Wilderness routes have declined, while Cradle Country

has experienced increased nights. Average visitor nights have remained steady on the

West Coast Wilderness and Cradle Country routes. The Great Nature Trail has the

highest average visitor nights, and has been decreasing after a decline in 2008-09.

19 The 2010-11 figure is slightly up on the previous year, but most of the growth is due to a leap in visitor nights on the Huon Trail (164,400 to 306,000)

FIGURE 18 TOURING ROUTE VISITORS

FIGURE 19 TOURING ROUTE VISITOR NIGHTS

Source: TVS: Touring Route Profiles Table 2 and 4: Holiday Visitor Nights, Table 5: Profile of Touring Route

Visitors

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

July 2007 - June 2008 July 2008 - June 2009 July 2009 - June 2010 July 2010 - June 2011

%R

etu

rn V

isito

rs

No

., V

isito

rs

West Coast Wilderness Cradle Country Great Nature Trail

WCW %Return CC %Return GNT %Return

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

July 2007 - June 2008 July 2008 - June 2009 July 2009 - June 2010 July 2010 - June 2011

AV

era

ge

Vis

ito

r N

igh

ts

To

tal V

isito

r N

Igh

ts

West Coast Wilderness Cradle Country Great Nature Trail

WCW Ave. Nights CC Ave. Nights GNT Ave. Nights

2.6. MARKET PERCEPTIONS

2.6.1. TOURISM BUSINESS SURVEYS

According to the survey results, on average the patrons of Cradle Coast region’s tourism

businesses consisted of:

• 64% were visitors to the region;

• 39% of interstate visitors came from Victoria, 21% from NSW, and 18% from

Queensland;

• 12% were international visitors, with United Kingdom, Japan, France, Malaysia and

Indonesia being the most important markets.

As shown in Figure 20, half of businesses identified that visitation from within Tasmania

had increased over the past 5 years, and almost twice as many reported an increase than

reported a decrease. For interstate visitation, 40% of businesses indicated an increase,

while 41% believed visitation had decreased over the past 5 years in the Cradle Coast

region. The international visitation results were fairly evenly spread, with slightly less

indicating that visitation had decreased than remained the same or increased.

FIGURE 20 VISITOR MARKET CHANGES 2006-2011

Source: Cradle Coast Authority Tourism Business Survey

Tourism Industry Council Tasmania’s most recent survey of the industry indicates that

over 60% of the tourism businesses in the Cradle Coast region had been down on budget

during winter 2011, and over half reported that their advance bookings were also down on

previous years20.

2.6.2. CONSULTATION OUTCOMES

Anecdotal evidence gathered from the consultation phase largely supported the

quantitative data. In particular, the following key trends were observed:

• Overall, Tasmania has held up reasonably well in the face of significant

macroeconomic challenges such as the high Australian dollar and the fallout from

the global financial crisis;

• The Cradle Coast region, and in particular the West Coast subregion, has

experienced a greater and more prolonged downturn than Tasmania as a whole;

• The Cradle Coast region has failed to capitalise on the growth of the short break

market on the back of the increasing availability of low cost airfares to Hobart and

Launceston;

• Visitation and occupancy has fallen across the region but yields have been more

resilient and have increased in some places;

• Average length of stay in the region has generally been perceived to have

decreased over the last few years ;

• The Asian, and especially the Chinese, market is perceived to be small but growing

in the region;

• The predominant demographic of visitors to the region are older couples and, if

anything, visitors are getting older.

In addition, the following observations were made with regards to changes to the region’s

tourism market:

• There has been a significant decline in the touring market which has impacted on

destinations that are largely reliant on self-drive visitors (for example, Strahan);

20TICT Industry Sentiment Survey Results. Winter Qtr: Jun-Aug 2011

49%

40%

36%

26%

19%

36%

25%

41%

29%

Intrastrate

Interstate

International

Increased Remained the same Decreased


19 O C T O B ER 2011

• The business/ corporate market has continued to be strong in most areas;

• The premium accommodation sector has generally performed well over the last few

years whereas there has been a significant observable decline at the mid-range

level;

• There has been a noticeable increase in demand for self-contained accommodation;

• At the budget end, there has been a growth in campervans and other recreational

vehicles (RVs) while budget accommodation has not performed well;

• The cruise ship market is growing and represents a significant growth opportunity

for the future;

• There is a perception that Tasmania is increasingly being regarded by visitors and

prospective visitors as an expensive destination;

• Visitors are becoming more savvy and are demanding more for their money;

• South and Western Australia potentially represent significant untapped markets.


2.7. TOURISM MARKET PROJECTIONS AND FORECASTS

2.7.1. TASMANIAN TOURISM POTENTIAL

Tourism 21: 2010-2013, the Tourism Tasmania and Tourism Industry Council Tasmania

joint strategic business plan proposes the following goals:

• 1.1% increase in market share of interstate trips,

• 1.1% increase in market share of international trips and

• 12% increase in intrastate overnight and day trips.

FIGURE 21 CRADLE COAST VISITATION PROJECTIONS 2011-

2020

Source: TVS, NVS, IVS, Tourism 21: The Tasmanian Government & Tasmanian Tourism Industry Joint

Strategic Business Plan 2011-2013,

Figure 21 extrapolates the existing market share (Trend) visitation for the Cradle Coast

region to 2020 using:

• Average regional share of Tasmanian visitation from 2005 to 2010 (calendar year);

• Tasmania ABS population growth rates to project increased day trips;

• Tasmanian and Australian ABS population growth rates to project overnight

visitation; and,

• Overseas arrivals from the May 2011 Tourism Forecasting Committee, and existing

Tasmanian and the regional market share for international visitation.

The tourism potential for growth in Tasmanian market share outlined in Tourism 21 is then

added to provide the Tourism Potential projection in Figure 21.

This method of extrapolation indicates that the most growth in visitation in the region will

be provided by day trips, and overnight visitation. The projected increases are

summarised in the table below.

TABLE 7 TREND AND POTENTIAL GROWTH 2010-2020

Day Trips Overnight International

%increase - Trend 114% 102% 164%

%Increase - Potential 125% 130% 185%

Source: TVS, NVS, IVS, Tourism 21: The Tasmanian Government & Tasmanian Tourism Industry Joint

Strategic Business Plan 2011-2013,

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

Day Trips -Actual

Trend

Tourism Potential

Overnight -Actual

Trend

Tourism Potential

International - Actual

Trend

Tourism Potential


21 O C T O B ER 2011

2.7.2. TOURISM BUSINESS EXPECTATIONS

Businesses were also asked to estimate the expected change in gross business income

for the 2011/12 Financial Year compare to 2010/11.

FIGURE 22 INCOME CHANGE 2010/11 TO 2011/12

Source: Cradle Coast Authority Tourism Business Survey

Almost half of businesses in the Cradle Coast region estimated that their gross business

income would increase in 2011/12, with over one-third of businesses expecting an

increase in income between 1% and 20%.

36% of businesses expected their gross income to decrease in the 2011/12 Financial

Year, with 24% of businesses expecting a decrease in income between 1% and 20%.

The TICT survey of business sentiment found that overall, tourism business confidence in

Tasmania is low, with over 50% of respondents indicating a somewhat or very negative

outlook for the Tasmanian tourism industry. Also, approximately 70% of respondents

indentified visitor demand as one of the three biggest constraints to business growth. Of

the respondents, over 60% indicated an expectation that they would be under budget, and

only 10% indicated a performance better than budgeted21.

CO N S UL T A T I O N F I N D I N G S

Consultation with the region’s tourism operators indicates the following expectations of

the future performance of the industry:

• There is a general sense that tourism is performing poorly in the region, especially

during the winter months, and in the West Coast;

• Expectations for the next 12 months are that tourism performance will be stable

although winter bookings will continue to drop off raising the threat of some

destinations becoming seasonal towns in the near future;

• Prospects for attractions were generally more positive than for accommodation,

particularly those within the North West;

• Several interviewees believe there are opportunities for future growth particularly

with product targeted to emerging and growing markets, such as China. They also

acknowledge the difficulties presented by a challenging global and national

economic situation: pricing reviews and cost reduction strategies will be important

maintain competitiveness;

• Participants were generally confident about the future of Burnie and Devonport as

their role as regional hubs continues to develop and grow;

• There is a feeling from some participants that local operators are not ready to meet

the demands of emerging markets, for example, Asian visitors;

• There is a sense of renewed confidence in King Island as a result of the forthcoming

golf course development at Cape Wickham.

21 TICT Industry Sentiment Survey Results: Winter Qtr. Jun. – Aug.2011

7%

5%

12%

24%

16%16%

8%

4%

8%

31% or more - Increase

21% - 30% -Increase

11% - 20% -Increase

1% - 10% -Increase

No Change1% - 10% -Decrease

11% - 20% -Decrease

21% - 30% -Decrease

31% or more - Decrease


3. TOURISM PRODUCT AND EXPERIENCES

3.1. INTRODUCTION

This section provides an overview of the region’s product and experience audits to identify

the key attractions in the region and the tourism products that support these attractions.

The product and experience audits are quantitative; the purpose of section 3.5.4: Cradle

Coast Destinations is to make a qualitative assessment of the audit data to assess the

locations within the study region that are significant tourism destinations.

The outcome of this analysis is to identify and consider proposals for both:

• Destinations within the region that can become significant tourism destinations, and

• Products that may increase visitation to the major sites for visitation in the region.

3.2. SUMMARY

• Both North West and West Coast sub regions highlight their natural attractions as

key product and experience strengths;

• Food and wine is a primary strength of the North West, but is emerging on the West

Coast;

• There are significantly more food and dining establishments in the North West than

on the West Coast, which is due to the local produce and greater residential market

to service;

• Devonport has the largest accommodation capacity in the region, although Strahan

has the most if camping facilities are excluded;

• There has been a lack of new product and accommodation development in the

region over the past decade.

• There appears to be an interlinked decline in both tourism investment and visitor

demand in some locations within the region.

TABLE 8 KEY PRODUCT STRENGTHS

ProductProductProductProduct TasmaniaTasmaniaTasmaniaTasmania North WestNorth WestNorth WestNorth West West CoastWest CoastWest CoastWest Coast

Natural SceneryNatural SceneryNatural SceneryNatural Scenery Primary Primary Primary

WildlifeWildlifeWildlifeWildlife Primary Primary Primary

NatureNatureNatureNature----based based based based RecreationRecreationRecreationRecreation

Primary Primary Primary

History and HeritageHistory and HeritageHistory and HeritageHistory and Heritage Primary Secondary Secondary

Arts and CultureArts and CultureArts and CultureArts and Culture Secondary Secondary Secondary

Food and WineFood and WineFood and WineFood and Wine Secondary Primary Emerging

Festivals and EveFestivals and EveFestivals and EveFestivals and Eventsntsntsnts Emerging Emerging Emerging

Indigenous TourismIndigenous TourismIndigenous TourismIndigenous Tourism Emerging Emerging

Spa and WellnessSpa and WellnessSpa and WellnessSpa and Wellness Emerging

Adventure TAdventure TAdventure TAdventure Toooourismurismurismurism Emerging

• Tourism developments at Cape Wickham and the Tarkine may drive increased

visitation to the region;

• The audits identified Cradle Mountain, Strahan, Stanley, Devonport and King Island

as distinct tourism destinations within the region; and,

• The experience audit provided support to the findings of the product audit; that

nature based was the primary strength of the region, and food and wine is a strength

of the North West.


23 O C T O B ER 2011

3.3. PRODUCT AUDIT

A product audit was undertaken within the Cradle Coast region, the aim of which is to

examine the current tourism product offer within the region to identify key strengths and

gaps.

The audit was compiled through web based research via a number of local, regional and

state websites. The audit was then reviewed by the region’s tourism industry

representatives online to refine the data collected. The product and experience audit has

been broadly divided into the following sub categories in order to highlight the product and

experience strengths of the region.

Accommodation and Food and Wine are analysed separately as they are mainly

supporting the attraction of tourists to the region rather than attractions in their own right.

The categories used for the product and experience audits are:

A D V E N T UR E & N A T UR E B A S E D

Product relating to bushwalking, fishing, lookouts, falls wilderness walks, kayaking, caves, river cruises etc.

F E S T I V A L S & E V E N T S

Regional, local and community events

A R T & CUL T UR E

Art galleries, theatre or performing arts, cultural centre, artists’ workshops.

G O L F

Golf courses

HI S T O R Y & H E R I T A G E

Historical landmarks, walks, museums.

I N D I G E N O US

Indigenous tour operator or cultural centres.

T O UR I N G

A touring route or tour operator that tours around a location

WI L D L I F E

Wildlife tours, parks or trails.

S P A & WE L L N E S S

Day spas, wellness centres.

F O O D & W I N E

Restaurants, café’s, produce markets, cellar doors, farm gates.

A C CO M M O D A T I O N

Accommodation is examined by type, the number of establishments and the total capacity.


3.3.1. PRODUCT PROFILE

R E G I O N O V E R V I E W

The product audit demonstrates that the region’s core product strengths are nature,

adventure and walking. This accounts for 39% of all products in the area, and is the most

significant product in both the North West and West Coast. History and Heritage, Local

Produce, Festivals & Events and Art & Culture were also highlighted in the product audit.

There was only one indigenous tourism product identified in the audit, the Tiagarra

Aboriginal Culture Centre and Museum in Devonport. Other indigenous sites, and the rich

cultural heritage of the region, were referred to in the consultation process and there is a

plan for the development of indigenous tourism within the Tarkine.

There were 16 golf courses identified in the region, but many of these courses are only 9

holes: to be considered by tourists clubs should provide at least 18 holes.

N O R T H WE S T

Within the North West nature based, adventure and walking is a strength of this region,

accounting for 35% of all product. Local Produce the North West is considered a primary

strength, with wineries, farm gates and King Island beef and dairy. Much of the food and

wine product is contained within Stanley (59%) of which seafood based product is a key

feature; this is followed by Burnie (32%).

Other frequently cited categories in the North West are History and Heritage, Festivals

and Events, Art & Culture and Wildlife.

WE S T C O A S T

Nature based, adventure and walking product is a key strength across the West Coast

representing 40% of all product as highlighted in Figure 23 – there are a smaller number of

operators in the West Coast, and therefore fewer responses to the survey. . . .

CR A D L E M O U N T A I N

The product at Cradle Mountain is predominantly nature based, with some supporting

product in the History and Heritage, Art & Culture, Wildlife, Touring and Spa categories.

FIGURE 23 CRADLE COAST PRODUCT PROFILE

FIGURE 24 REGIONAL PRODUCT PROFILE

169

52 48 47 43

28 2619

3 1

Nature/ Adventure/

Walking

History & Heritage

Local Produce

Festivals & Events

Art & Culture

Wildlife Touring Golf Spa & Wellness

Indigenous

0

20

40

60

80

100

120

Nature Adv Wlkg

History & Heritage

Festivals & Events

Local Produce

Art & Culture

Wildlife Touring Golf Spa & Wellness

Indigenous

North West West Coast Cradle Mountain


25 O C T O B ER 2011

3.3.2. DINING AND FOOD

Industry consultation indicated that food and wine product is considered differently in each

sub region. Food and Wine is not viewed as a key strength in the West Coast primarily

relating to issues with obtaining fresh produce in the area and also the ability to get

access to fresh seafood due to the fishing quotas. This is highlighted in Table 9, where

the North West has 18 restaurants to the 7 identified in the West Coast.

There is also a much greater population to support a variety of dining and food offers in

the North West, which is particularly evident in the higher numbers of Bakeries and Cafes

and Restaurants in the region.

TABLE 9 REGIONAL FOOD OFFER

LocationLocationLocationLocation Bakery Bakery Bakery Bakery CaféCaféCaféCafé

Clubs/Clubs/Clubs/Clubs/ RSLRSLRSLRSL

HotelHotelHotelHotel R’R’R’R’rantrantrantrant Bar/BisBar/BisBar/BisBar/Bistrotrotrotro TTTT////awayawayawayaway TOTALTOTALTOTALTOTAL

West Coast 6 2 8 7 3 4 30

North West 24 2 3 18 3 3 53

Cradle Mountain

1 3 3 7

TOTAL 31313131 4444 11111111 28282828 9999 7777 90909090

Source: Cradle Coast Tourism Industry, via Google Docs

Accommodation Audit

A C CO M M O D A T I O N O V E R V I E W

Table 10 summarises the accommodation businesses in the Cradle Coast region, and

includes businesses by accommodation type, number of properties, total capacity and

sub-region.

The audit found 362 properties within the region, with a total capacity to accommodate up

to 16,238 people; the majority of accommodation establishments are located in the North

West (79%).

The main accommodation type is self contained which accounts for 51% of all properties,

most of which are small one or two bedroom properties.

Although caravan and holiday parks account for only 10% of all properties, they account

for 47% of the total accommodation capacity in the region. The size of the camping

segment of the market reflects the key product strengths of adventure, nature based

product and experiences. The majority of the camping accommodation is in the North

West, were over half the capacity is in this sector, while it accounts for only a quarter in

the West Coast.

Generally the accommodation across the region is within the 3 ½ to 4 star range with

limited 4 ½ to 5 star accommodation to cater for the high end market. This gap does

restrict the region in terms of its ability to attract international markets, in particular the US

and UK. In the West Coast 44% of the total capacity is within hotels and motels. Of note,

attendees at industry workshops indicated that accommodation operating at the higher

end of the market was faring much better than the budget providers.

Although many of the caravan and holiday parks do cater for backpackers with several

establishments offering affordable dormitory style accommodation, there are limited

properties (2% of total properties) that are marketed exclusively to this market.


M A J O R A CCO M M O D A T I O N L O CA T I O N S

Table 11 lists the ten locations within the region that have the greatest accommodation

capacity. These 10 locations are home to 58% of accommodation establishments in the

region, and provide 71% of the total accommodation capacity22.

Devonport has the most accommodation, which can be attributed to its position as a

regional hub, and similarly with Burnie which has the third most. Strahan has the second

most accommodation in the region, and the most non-camping accommodation, and

Cradle Mountain is fourth, highlighting its position as an iconic tourism destination.

Strahan also has the most establishments in the Cradle Coast region, with 49. Of these

establishments 32 are self contained unit types, and represent only 32% of the total

accommodation capacity of the town. Stanley has the second most number of

establishments with 39: 23 are self-contained and a further 10 are backpackers and

represent 35% of the total capacity.

22 Capacity refers to the maximum number of guests an establishment can accommodate

TABLE 10 ACCOMMODATION PROVISION

TABLE 11 TOP 10 ACCOMMODATION LOCATIONS

North WestNorth WestNorth WestNorth West West CoastWest CoastWest CoastWest Coast TotalTotalTotalTotal

No. Capacity No. Capacity No. Total Ave.

Capacity

Self containedSelf containedSelf containedSelf contained 143 2,122 40 865 183 2,987 16.3

B&B/Guest HouseB&B/Guest HouseB&B/Guest HouseB&B/Guest House 59 440 6 86 65 526 8.1

Caravan/ Holiday ParkCaravan/ Holiday ParkCaravan/ Holiday ParkCaravan/ Holiday Park 30 5,955 7 1,195 36 7,560 210

Hotel/MotelHotel/MotelHotel/MotelHotel/Motel 49 2,603 20 2,115 69 4,718 68.4

BackpackerBackpackerBackpackerBackpacker 6 359 2 306 8 665 83.1

TOTAL 287287287287 11,47911,47911,47911,479 75757575 4,7594,7594,7594,759 362362362362 16,23816,23816,23816,238 44.944.944.944.9

Hotels, Self cont. B&Bs Hotels, Self cont. B&Bs Hotels, Self cont. B&Bs Hotels, Self cont. B&Bs

Hostels etc.Hostels etc.Hostels etc.Hostels etc. CampingCampingCampingCamping TotalTotalTotalTotal

LocationsLocationsLocationsLocations No. Capacity No. Capacity No. Total

Devonport 29 1042 6 1576 35 2618

Strahan 42 1175 3 694 45 1869

Burnie 20 739 2 454 22 1193

Cradle Mountain 5 733 1 410 6 1143

Queenstown 16 907 1 225 17 1132

Port Sorell 8 192 3 921 11 1113

Ulverstone 14 394 3 546 17 940

Stanley 38 370 1 295 39 665

Wynyard 12 239 2 321 14 560

Somerset 4 96 1 254 5 350


27 O C T O B ER 2011

3.4. PRODUCT DEVELOPMENT AND INVESTMENT

3.4.1. INTRODUCTION

After growing substantially between 2001 and 2006, tourism investment in Australia

declined in 2007, particularly in comparison to total private investment, as shown in Figure

25.

FIGURE 25 PRIVATE INVESTMENT IN TOURISM

Source: ABS and ACCESS Economics, reproduced from the Jackson Report: Informing the Long Term

Tourism Strategy, 2009

Research into tourism investment published in 2010 found that those within Tasmania’s

tourism industry saw the levels of investment in product and infrastructure to be

detrimental to the future of the industry, particularly that:

• There was a need to develop new, and refurbish older accommodation provision in

the state; and,

• Improved road links between attractions may improve the prospects of the industry.

During the consultation undertaken in this research into tourism investment, Tasmanian

respondents also noted the importance of ongoing investment in tourism product, to

enhance the quality of the offer, attract return visitation and to meet the demands of

changing market expectations23.

3.4.2. DEVELOPMENTS AND OPPORTUNITIES

Several opportunities for growing the region’s tourism industry were raised in the industry

workshops, including:

• Derive wider economic development benefits to the region from the Spirit of

Tasmania;

• Promote the regional airports’ as providers of ready access to the region. For

example, promote Wynyard as the gateway to the Tarkine and investigate potential

for connecting flights from Melbourne to Wynyard on to Strahan to access the short

break market;

• Continue to attract, and increase the benefits derived from cruise ships in the region;

• Maximise the potential of the region’s under-utilised and underexposed assets,

including Lake St Clair and the region’s coastline.

Several proposals for new developments and investment were highlighted during the

consultation processes undertaken during the development of this report. These include

a 5-star hotel in Burnie, a restaurant and accommodation in Strahan, a new glass bottom

boat to operate out of Stanley, and 3-star and backpacker’s accommodation in Smithton.

Tasports are also making a significant investment in Devonport Airport. In addition to

these opportunities, several specific development opportunities have been identified, as

detailed in the following sections.

T H E T A R K I N E

The Tarkine, located in the north west of Tasmania, is the largest rainforest in Australia,

and also has a significant amount of Aboriginal sites. There have been regular attempts

to increase both the level of protection and land area included in the Tarkine’s Arthur-

Pieman Conservation Area.

23 Tourism Investment in Australia: A Scoping Study, Sustainable Tourism CRC


The road access through the region is currently limited to the gravel roads to Corinna and

Arthur River, The Tasmanian Government has considered the development of a tourist

road through the region, at a cost of over $20 million. Most recently, a development

proposal was lodged with the Federal Environment Minister in 2011 24 . The road

development is supported by the Tourism Industry Council of Tasmania “as an adventure

and nature-based tourism hub”25. There are also proposals to introduce open cut tin

mines in the Tarkine, which are currently under consideration by the federal Minister for

the Environment.

The Corrinna community are also seeking funding to develop a multi-day walking track

through the Tarkine region. This will provide another iconic walking experience in the

region, to complement the Overland Track that takes in Cradle Mountain and Lake St.

Clair.

The Cradle Coast Authority completed a tourism development strategy in 2008, to

promote the unique natural and cultural heritage of the Tarkine26 . The development

strategy recommends that targeted investment is required to improve access, visitor

information, provide a range of accommodation, quality food and wine experiences and

increase opportunities for visitors to connect with the wilderness. One of the key

recommendations from this strategy is the development of a Tarkine brand, as the Tarkine

is not an officially recognised geographical area and spans the jurisdictions of three

separate municipalities. The report also includes a list of specific recommendations and

actions relating to:

• Improving access, infrastructure and product at key entry points and along major

corridors;

• Developing regional linkages through the use of signage;

• Improving coordination between the various land managers and other relevant

authorities;

• Developing product around tracks and trails, aboriginal heritage and adventure

sports;

24http://www.abc.net.au/news/2011-11-24/20111124-tarkine-road-back-on-the-board/3692772 25http://www.tict.com.au/tict-policy/the-tarkine 26Tarkine Tourism Development Strategy (CCA, 2008)

• Driving industry development through education, staff development and

communication;

• Marketing, promotion and branding.

The Tarkine Tourism Development Strategy is accompanied by the Tarkine Aboriginal

Tourism Plan, which explores options for the future development of Aboriginal tourism in

the region. The report stipulates that any proposed experiences need to be authentic and

driven by the Aboriginal community.

CA P E W I CK H A M G O L F CO U R S E

King Island Council recently approved a major golf course development at Cape

Wickham, at the northern point of the Island. The development is to cover 84 hectares,

and is expected to cost between $5 million and $10 million, and the proposal includes an

8 unit eco-lodge27.

With only 8 units included in the development, it is likely that golfing visitors will create

demand for accommodation on the island in excess of the development’s provision.

The Tasmanian Visitors Survey indicates that golfing tourists provide a higher yield than

the average: golfers spent 37% more on average than other Tasmanian visitors between

July 2010 and June 2011. Tourism Research Australia data indicates that golfing tourists

frequently dine out, go to beaches, visit state and national parks. These two pieces of

information indicate the overall benefits of the development to King Island.

M O UN T R O L A N D

Mount Roland is located in Kentish Shire, south of Sheffield. Kentish commissioned a

report in 2010, Mount Roland: Developing a Destination, to identify opportunities for

developing the mountain as a tourism destination. The three options that were identified

as the most promising were:

• An adventure tourism hub;

• A must-see destination for recreational campers, including fully self-contained

campers

27http://www.themercury.com.au/article/2011/10/21/270361_sport-news.html


29 O C T O B ER 2011

• A world-class mountain biking and family cycling park

Further recommendations assessed for product development included walking tracks;

lookouts, interpretation and a cable car ride to the top.

3.4.3. CRADLE COAST TOURISM BUSINESSES - INVESTMENT IN

BUILDINGS

The Cradle Coast Tourism Business Survey’s findings on building construction and

refurbishment projects are included in Table 12, with recent survey results from the

Mornington Peninsula included for comparison.

TABLE 12 TOURISM BUSINESS INVESTMENT

Cradle CoastCradle CoastCradle CoastCradle Coast RegionRegionRegionRegion Mornington PeninsulaMornington PeninsulaMornington PeninsulaMornington Peninsula

Survey YearSurvey YearSurvey YearSurvey Year 2011 2010-11

%New Building%New Building%New Building%New Building

Current Year 4% 12%

Next Year 5% 11%

%Refurb%Refurb%Refurb%Refurbishmentishmentishmentishment

Current Year 23% 25%

Next Year 15% 30%

Average Spend Average Spend Average Spend Average Spend ––––

NewNewNewNew BuildingBuildingBuildingBuilding

Current Year $108,046 $295,471

Next Year $93,333 $175,273

Average Spend Average Spend Average Spend Average Spend ––––

RefurbRefurbRefurbRefurbishmentishmentishmentishment

Current Year $33,241 $108,938

Next Year $54,889 $52,089

Bldg PermitsBldg PermitsBldg PermitsBldg Permits %Appl 10% 14%

Source: Cradle Coast Tourism Business Survey, Mornington Peninsula Health of Tourism

The data indicates that 4% of Cradle Coast tourism businesses in the region constructed

a new building in 2011, at an average cost of $108,046. Significantly, three of the five

new buildings identified in the survey cost less than $12,000, the other two were over

$200,000. The survey respondents’ intention to develop new buildings in 2012 is

approximately the same as in 2011.

Almost a quarter of the businesses indicated that they had undertaken a refurbishment in

2011, and a further 15% intend to do so in 2012. Four of the 27 refurbishment projects in

2011 were $90,000 or above, while 13 were valued at $10,000 or less. Although the

number of refurbishment projects intended for 2012 is less than in 2011, the estimated

value of the planned projects is approximately 65% higher.

The comparison with Mornington Peninsula businesses indicates the low levels of

investment in the region, both in terms of the proportion of businesses making investment

and particularly the value of the investment.


3.4.4. BARRIERS TO INVESTMENT

A study into tourism investment published by the Sustainable Tourism CRC in 2010 used

Tasmania as a case study, and provides insight into the obstacles in attracting investment

into the state’s tourism industry28. Respondents to the survey carried out as part of this

research strongly believe that there has been limited investment in the state’s tourism

industry.

Other survey results included:

• There is a need to invest in the roads linking the state’s attractions;

• The low levels of investment will impact on the quality of the state’s tourism offer in

forthcoming years;

• One issue restricting tourism investment is the low level of return, particularly in

comparison to mining and property development;

• The complex development approvals process in Tasmania is impacting on tourism

investment;

• There is strong community resistance to tourism development in some areas,

particularly in relationship to the state’s cultural and heritage values;

The barriers to investment identified in this study are listed on the right hand side of Table

13, and are compared to the respondents to the Cradle Coast Tourism Business Survey,

included on the left hand side.

Even though the two surveys come from different perspectives, one local operators

reflecting on their own business and the other a broader consideration of barriers to

investment, there are some recurring themes, including:

• The seasonality of Tasmanian tourism;

• Lower returns on investment, which impacts obtaining finance; and,

• Government regulation.

28 Tourism Investment in Australia: A scoping Study, Sustainable Tourism CRC, 2010.

TABLE 13 BARRIERS TO INVESTMENT

Cradle CoastCradle CoastCradle CoastCradle Coast Tourism BusinessTourism BusinessTourism BusinessTourism Business SurveySurveySurveySurvey: : : :

Business Growth Constraints Business Growth Constraints Business Growth Constraints Business Growth Constraints (% of responses)

Tourism Investment In Australia:Tourism Investment In Australia:Tourism Investment In Australia:Tourism Investment In Australia:

Tasmanian Tasmanian Tasmanian Tasmanian RespoRespoRespoResponsesnsesnsesnses, , , ,

Barriers to InvestmentBarriers to InvestmentBarriers to InvestmentBarriers to Investment

Visitor Demand – 21% The industry is predominantly small operators, doing it for “love of the industry” rather than just

profit.

Expense of marketing campaigns - 15% Lower returns than other investment options

Seasonality – 14% Seasonality – November to April peak.

Obtaining finance – 10% Complexity and length of government approval processes for development

Government Regulation – 9% Remoteness and access from the mainland

Labour costs – 6% Lack of State Government funding and support for tourism

Lack of or poor marketing and promotion – 4% Community resistance to tourism development

Attracting quality staff – 2% Training and attracting quality staff, particularly in remote areas.

Source: Cradle Coast Tourism Business Survey (LHS), Tourism Investment in Australia: A Scoping Study

(RHS)

Although only 6% of the region’s businesses identified labour costs as an impediment to

business growth, and 2% identified attracting quality staff, 50% of the business

responding to the survey had 2 employees or less, across full time, part time and casual

staff, and only 28% of respondents had more than 2 full time staff. This indicates that

staff issues may be more of an issue for those businesses with employees than the data

suggests at first.

One business in five businesses selected visitor demand as the most significant issue for

business growth in the Cradle Coast region, yet tourism investment has also been

identified as a driver of visitor demand. This indicates that the two should be addressed

concurrently, with new product development supported by a marketing campaign

highlighting recent developments.


31 O C T O B ER 2011

3.4.5. ACCOMMODATION DEVELOPMENT

Table 14 summarises the changes in accommodations provision in the North West, West Coast, Tasmania, Victoria and South Australia, according to the ABS Tourist Accommodation Small Area

Data. Although the data does not capture the full extent of accommodation offer, as the product audit identified 65 B&B’s and Guest Houses and 183 self contained apartments out of the 362 total

establishments, it does provide a guide to accommodation investment in the past decade.

TABLE 14 ACCOMMODATION PROVISION: 2002 AND 2011

North West West Coast Tasmania Victoria South Australia

Dec-02 Jun-11 %Growth Dec-02 Jun-11 %Growth Dec-02 Jun-11 %Growth Dec-02 Jun-11 %Growth Dec-02 Jun-11 %Growth

Establishments 33 29 -12% 10 11 10% 140 155 11% 714 809 13% 238 266 12%

Rooms 1,007 1,014 1% 425 507 19% 5,797 6,832 18% 33,183 41,824 26% 11,029 12,652 15%

Bed spaces 2,950 2,749 -7% 1,211 1,282 6% 17,170 18,871 10% 90,199 111,830 24% 31,007 34,583 12%

Persons employed 569 640 12% 258 232 -10% 4,129 4,490 9% 21,208 22,475 6% 6,745 7,138 6%

Room Nights Occupied 45,923 46,618 2% 15,694 13,970 -11% 315,718 328,580 4% 1,827,777 2,379,939 30% 620,464 717,515 16%

Bed Occupancy Rate 29% 31% 9% 25% 22% -15% 36% 33% -7% 37% 40% 6% 36% 36% -1%

Source: ABS, 8635.2 Tourist Accommodation Small Area Data - Victoria, 8635.4,Tourist Accommodation Small Area Data - South Australia and 8635.6 Tourist Accommodation Small Area Data – Tasmania

• Although the data collection method changed in 2005, by 2010 it had reverted to the

same method used in 2002: only establishments with15 or more beds are included

in both data sets, enabling comparison29. This data indicates that:

• Although the growth in establishments in the three states is equivalent, the growth in

Room Nights Occupied has been much less in Tasmania than in either Victoria or

South Australia;

• Room Nights Occupied in the North West is at equivalent levels to 2002, but there

has been a substantial decrease in the West Coast;

• There has been a significant growth in the number of rooms in the West Coast, but

total room nights and the Bed Occupancy Rate have fallen markedly;

29(ABS 8635.0.55.003 - Information Paper: Future changes to Tourist Accommodation, Australia, May

2010)

• Although the number of rooms in the North West is the same, there are fewer

establishments and bed spaces, leading to an increased Bed Occupancy Rate.

This implies that there has been investment in developing additional accommodation

capacity in the West Coast’s larger establishments, but this has been met with falling

demand for room nights. In the North West, the provision has remained essentially the

same in terms of rooms and beds, and occupancy has grown marginally over the decade.

This data, in conjunction with the business investment responses included in section

3.4.3, indicates a limited investment in the development and refurbishment of

accommodation provision in the region in the past 10 years.


3.5. CRADLE COAST EXPERIENCES

3.5.1. INTRODUCTION

A Tourism Experience is generally made up of a number of different product types for

example, a food and wine experience combined with a wildlife experience in a natural

area. These can be tailored towards each individual or group. This will ensure that the

visitor perceives their experience as unique, a key component in creating a Tourism

Experience.

The industry workshops provided support for developing an understanding of experience,

with attendees suggesting that experience marketing will need to be promoted through a

state-wide strategy to the Interstate and International markets. In addition it was also

suggested that tourism marketing and development should have a focus on young

adventurous visitors who are higher yield markets, particularly for the wilderness and

adventure aspects of the region.

3.5.2. METHODOLOGY

The experiences identified for this audit were collated via a desktop search of key visitor

websites for the region. The main websites used in this research are as follows:

• www.discovertasmania.com.au

• www.westernwilderness.com.au

• www.tasmaniaswesternwilderness.com.au

• www.tasmaniasnorthwest.com.au

• www.stanley.com.au

• www.strahantasmania.com

• www.discoverburnie.net

This information was then provided to tourism industry representatives to refine and add

additional experiences based on their knowledge of the region. The information collected

in this process has then been assessed to identify the prominent tourism experiences in

the Cradle Coast Region

3.5.3. KEY FINDINGS

The main strength across the region is nature based and adventure experiences, with

Cradle Mountain being the iconic tourism destination in the region. Other significant

nature based experiences in the region include:

• The Nut at Stanley;

• The Gordon River, Macquarie Harbour, Ocean Beach and the Huon Pines located

around Strahan;

• The bushwalks through the Tarkine;

• Wildlife experiences within the North West, with the chance to view platypuses in

the wild as well as penguins; and

• Wildlife at Narawntapu National Park.

Food and Wine experiences are more prevalent in the North West than in the West Coast.

There are opportunities for visitors to meet the wine, cheese, whisky makers and fresh

produce growers in the North West. It was also noted in the industry workshops that the

North West is unique with its cool temperate climate and rich soils, which presents

tourism opportunities with a garden/farm focus due to the quality that can be produced.

The quality of the produce on offer on King Island is also a significant experience in the

region.

The West Coast has limited agriculture, due to limited productive agricultural land.

Seafood is the produce strength within the region, particularly in Strahan due to its fishing

industry. However, this is not reflected in the online visitor information, with little presence

on key websites as to where visitors might source and find seafood.

Art and Cultural experiences are a feature of the North West, and the Makers’ workshop

in Burnie is a unique experience that could be leveraged to provide greater benefits within

the region.

The history and heritage of the West Coast was seen as a secondary regional strength in

the consultation process. However, few history and heritage experiences were identified


33 O C T O B ER 2011

in the desktop review indicating that the current promotion of the strengths in promotional

material and particularly via online sources.

3.5.4. CRADLE COAST DESTINATIONS

The following provides a summary of the major destinations within the Cradle Coast

region, as identified by the product and experience audit, through the analysis of the

visitation trends and industry consultation.

CR A D L E M O U N T A I N

Cradle Mountain is within the Cradle Mt – Lake St Clair National Park, and forms part of

the Tasmanian Wilderness World Heritage Area, and is home to aboriginal heritage and

European settler heritage as well as the significant natural attractions in the area30 .

According to the Tasmanian Visitor Survey data included in Table 4, only Devonport and

Strahan host more visitor nights from outside of the State than Cradle Mountain,

highlighting it’s important to tourism in the region.

The experience audit identified 18 adventure, nature based and wildlife attractions on

Cradle Mountain, the most of any location identified in the audit. In addition, the

experience on offer includes cycling events, spas and health retreats and food and wine

tasting.

As noted in section 2.4.10, Cradle Mountain has the fourth most accommodation of any

destination in the region, with a capacity of 1,143. Other products identified include:

• Over a dozen separate walking tracks;

• Six food and wine establishments;

• The Wilderness Gallery;

• Waldheim Chalet, which provides accommodation, a heritage building and an Alpine

Spa;

• A day spa;

• Tasmanian Devil viewing, and;

30http://www.parks.tas.gov.au/index.aspx?base=3297

• Helicopter tours.

S T R A H A N

Strahan is located on Macquarie Harbour, near the Franklin-Gordon Wilde Rivers National

Park which is part of the Tasmanian World Heritage Area. It is also the base for exploring

Sarah Island, a heritage convict prison, and is linked to Queenstown by the steam railway

journey. With over 220,000 in 2010-11, Strahan hosts the second most visitor nights in

the region, behind Devonport, although it has declined by 3% in the last two years31. Also

of note is the seasonality of the market in Strahan, which was highlighted in consultation

and supported by the NVS data in section 2.4.5.

Of the 14 experiences identified in Strahan, 11 were adventure or nature based, and

included wilderness, the Gordon River and Macquarie Harbour, and Ocean Beach and its

surrounding attractions. Other experiences noted in Strahan refer to its history; convict

history at Sarah Island and the campaign to stop the Franklin River dam in 1980s.

Strahan has the most accommodation establishments in the Cradle Coast region, and the

greatest capacity if camping facilities are excluded. Other products identified in the audit

align with the experience audit, highlighting the rich variety of adventure, natural and

wildlife attractions on offer in the region, supported by opportunities to learn more about

the history of the region.

S T A N L E Y

Stanley is had a significant amount of product identified in the audit, with 24 food

providers, 39 accommodation establishments, plus many attractions including The Nut.

Stanley is also the main service centre for the Tarkine, and tourism developments in this

wilderness region may provide increased custom for the town.

Tourism experiences identified by local operators include the chairlift and walking

opportunities for reaching the top of the Nut, the walking tracks in Rocky Cape National

Park and the seal and penguin viewing.

31 TVS: Visitor Nights by Town, 2011 – excludes Tasmanian visitation


K I N G I SL A N D

King Island is a unique destination, and as discussed in 2.4.5, it receives most of its

visitation directly from Victoria. The Island is known for its premium dairy and beef

products, and local produce features heavily in the tourism product identified on the

island, as shown in Figure 26. The development of an international standard golf resort at

Cape Wickham is expected to be a boon for tourism on the island; the product audit

identified one existing golf course.

FIGURE 26 KING ISLAND PRODUCT

According to the product audit, the Island has the capacity to accommodate 250 people

across 12 establishments. Most of the accommodation is in motels or are or the self

contained type.

The experience audit identified the high quality dairy produce, the shipwreck trail and the

variety of wild life as the main tourism attractors to the island.

D E V O N P O R T

Devonport hosts the most visitor nights, and including camping has the most

accommodation capacity in the region31. Its significance to tourism in the region is as the

point of departure from the Spirit of Tasmania, and it is also the largest city in the region.

Over 130,000 people left Tasmania on the ferry from Devonport in the year ending June

2011. Also, Devonport had the highest number of overnight business visitors in the

region, attracting 10,700 for the year to June 2011, which represents 40% of the total

business visitors to the North West32.

Devonport’s position as a regional hub, underlined by the results of the experience audit:

even though it has the most visitor nights spent by those from outside of Tasmania only

one experience was identified in the audit: exploring the coastline from Victoria Parade to

the Bluff. The product audit did identify a range of offerings, including some adventure

and nature, art and culture and the only indigenous tourism product identified in the

region, the Tiagarra Aboriginal Culture Centre and Museum.

Even though Devonport is not home to any of the region’s major tourism attractions, it is

significant to the region’s tourism industry: the main source of this significance is the TT

Line, as many of the attractions in the region require a car to access; it is also many

visitors’ introduction to the region.

32 TVS: Port and Mode of Departure, Places stayed Overnight: Business or Employment, 2011

Local Produce7

Touring3

History & Heritage2

Art & Culture2

Adventure and Nature

2

Golf1


35 O C T O B ER 2011

4. REGIONAL MARKETING

4.1. OVERVIEW

The North West and the West Coast are represented as having different products and

experiences, as indicated by the regions’ attributes highlighted on the Discover Tasmania

website33:

N O R T H WE S T

• Vibrant cafe culture in major towns and seaside villages.

• Breathe in some of the cleanest air in the world.

• Meet makers not shakers and share the creative spirit of local artists.

WE S T C O A S T

• It’s out there on the edge of the world. One of the most unspoiled and wildest areas

of Australia.

• Your entry to our World Heritage Area and home to the mighty Franklin and Gordon

rivers, and Cradle Mountain.

• An area rich in convict history, wilderness adventures and a pioneering spirit.

The variance in the experiences promoted may be a result of the two regions being

included in different Zone Marketing Groups until the restructure of Tourism Tasmania’s

regional structure; however the audits reveal that both have distinctly different product

offer. As the North West and the West Coast will be affiliated to the same Regional

Tourism Organisation, the similarities and differences of the two regions as tourism

destinations requires consideration to inform how they will be best marketed in the future.

This is particularly pertinent as the highest proportion of operators indicated that their

33www.discovertasmania.com – Western Wilderness and North West Coast pages.

largest amount of marketing expenditure was on either Zone Marketing or Tourism

Tasmania cooperative campaigns34.

The brief Discover Tasmania marketing overviews of the two regions reflect the findings

of the product and experience audit. In the North West the local produce and food were

seen as the key attractors in the region, alongside the nature based products. In the West

Coast, the findings highlighted the many natural attractions in the region.

The analysis of the key attributes of the North West and the West Coast, along with the

different markets for each region, indicates that they should continue to be marketed as

separate tourism destinations. Although this may indicate that the regions should be

marketed separately, there are other considerations, including:

• Cradle Mountain sits across both regions, and is of significant marketing benefit to

either region it aligns with. It may be marketed within either region, or both;

• By marketing the two regions together as one entity, the greater funding available

for cooperative campaigns may outweigh the benefits of focusing on each region’s

strengths independently;

• King Island industry representatives indicated that consideration should be given as

to whether they should be marketed separately to the North West, as they view

themselves as competing directly in the food tourism market. This is also supported

by the data included in section 2.4.5;

• Rather than regions, it is possible that separating the industry by product types may

provide more presence in the marketplace.

• There may be benefits in marketing the regions together outside of Tasmania, but

as distinct locations within Tasmania.

The industry perception that the Zone Marketing Groups did not work for operators

located on the fringes provides insight into the structure of regional marketing in the

34 Cradle Coast Tourism Business Survey.

3 6 STATE OF THE REGION T OU R I S M I N TH E CR A DL E C O A S T

region. This was particularly noted for the Mole Creek area, which was near the border of

the West Coast, North West and Launceston, Tamar and the North zones.

4.1.1. OPERATOR MARKETING AND PROMOTION

The marketing of the regions has been extensively based on the two separate regions, as

the Tourism Tasmania and Zone Marketing cooperative campaigns market the North

West and the West Coast separately. The reliance on these programs for marketing is

highlighted by Figure 27, where 48% of businesses in the Tourism Business Survey

indicated that their greatest marketing expenditure was on cooperative campaigns.

FIGURE 27 MARKETING SPEND


Also, in 2010/11 survey respondents spent on average of $9,987 on business marketing

and promotion, and expect to increase this by almost 10% to an average of $10,905 per

business in 2011/12.

33%

15%

14%

11%

10%

10%

24%

18%

14%

22%

13%

12%

14%

15%

21%

13%

13%

Tourism Tasmania Cooperative

Marketing campaigns

Zone Marketing Cooperative

Marketing Packages

Radio

Online

Visitor Centre brochure fees

Television

Advertisement in Zone Holiday

Planner/ Visitor Guide

Local Tourism Association Marketing

Campaigns

Highest Spend 2nd Highest Spend 3rd Highest Spend


37 O C T O B ER 2011

4.1.2. INDUSTRY PERSPECTIVES

• There was a lack of consensus on how the Cradle Coast region should be marketed

and branded. Most participants suggested one of the following three approaches:

• Brand the whole region as the Cradle Coast and market the strength of the

region as a ‘bundle of products’;

• Separate branding between West Coast (wilderness, nature) and North West

(food driven). There was further discussion as to whether the key wilderness

products of Cradle Mountain and the Tarkine should be included in the West

Coast marketing;

• As above but also a separate brand for King Island (because it is in competition

with North West as a destination);

• It was generally felt that marketing the region along loose product lines as opposed

to focussing on strict geographical boundaries (‘zones’) might make more sense;

• Several people highlighted the need for a refresh of the marketing of the region. In

particular, messaging needs to be revised to make the region appeals more to

younger generations and to shift perceptions away from cheap accommodation

towards experiential product;

• Consideration should be given to marketing the Cradle Coast as a separate

standalone destination, apart from Tasmania. For example, targeting the Victorian

market by promoting Cradle Coast as an ‘undiscovered frontier’ or as an ‘authentic

wilderness experience’;

• Most participants agreed that Tourism Tasmania’s primary role in relation to

marketing should be to get visitors to come to Tasmania by marketing the whole

State and promoting the Tasmania brand;

• Several participants felt that Tourism Tasmania and the Regional Tourism

Associations. including the Cradle Coast Authority, need to work together in

partnership to develop a regionally focussed destination management approach

which would sit under the high-level Tasmania brand;

• Most interviewees believed that marketing should be delivered through a

coordinated approach involving Tourism Tasmania, Cradle Coast Authority,

Councils, Local Tourism Associations and operators. In particular, consensus needs

to be reached between these groups as to who is responsible for intrastate

marketing, as this is perceived to fall through the cracks;

• There was no consensus on who should be responsible for destination marketing;

several operators felt this should be Cradle Coast Authority’s responsibility and to a

lesser extent the Local Tourism Associations’. Other participants believed this

should be the responsibility of the operators themselves, either individually or in

collaboration with other operators and/or their Local Tourism Associations’ and

Council.


5. TOURISM GOVERNANCE

5.1. INTRODUCTION

The following section provides an overview of the roles of each of the key stakeholders

involved in the development of tourism within the region examined from a state, regional

and local perspective.

The outcomes from both the industry consultation and operator surveys are also

examined as they relate to each of the stakeholders.

A review of the Tasmanian tourism industry structure in 2010 found that35:

• There is a need for role clarity between the different tiers of organisation (RTOs,

ZMGs, LTAs, Local Government etc);

• There is a risk of overlap and duplication between different organisations with

regards to promotional/ marketing activities and communications/ networking;

• There is a risk of gaps in some key functions (infrastructure development, product

development, skill development) that are not being adequately fulfilled;

• There may be a case for providing greater levels of funding to a fewer number of

well resourced participants.

These findings form the background to Tourism Tasmania’s Regional Tourism Initiative,

and the move to replace the five Zone Marketing Groups with four Regional Tourism

Organisations.

35 Regional Tourism Review: The Way Forward, KPMG 2010

5.2. SUMMARY OF FINDINGS

The recommendations in the Regional Tourism Review: The Way Forward includes36:

• Undergo structural reform to reduce the number of organisations involved in

delivering regional and local tourism services in Tasmania to remove duplication,

improve efficiency and achieve economies from scale;

• Revisit funding arrangements to assess viability of aggregating larger pools of funds

to a smaller number of effective and well resourced organisations;

• Embrace the Destination Management Framework for managing regional tourism;

• Identify new membership models to offer better value to operators; and,

• Develop more structured and consistent two-way communications within the

industry.

This informs the recommendations to review the tourism structures within the Cradle

Coast region, as outlined below.


The results of the industry survey indicate that the Cradle Coast Authority needs to

increase its links with the local tourism industry. This is of particularly importance of the

Authority is to assume the role of the Regional Tourism Organisation (RTO), as the intent

from Tourism Tasmania is that the RTOs will be industry led.

To improve its integration with the tourism industry, the Cradle Coast Authority should

consider:

• Forming a Tourism Board, including some members from the local industry to direct

the Authority’s tourism activities; and,

36 KPMG, 2010


39 O C T O B ER 2011

• Moving to an industry membership model, to increase the direct interaction between

the operators and the Authority.

L O CA L T O UR I S M A S S O C I A T I O N S

That there are in the order of 15 LTAs within the Cradle Coast region indicates that there

are opportunities for rationalisation, to increase the benefits gained from member

contributions. Rationalisation is also important for the relationship between the operators

and the Regional Tourism Organisation, due to the difficulty in communicating between so

many industry groups. The Regional Tourism Review includes recommendations to:

• Undergo structural reform to reduce the number of organisations involved in

delivering regional and local tourism services in Tasmania to remove duplication,

improve efficiency and achieve economies of scale; and,

• Revisit funding arrangements to assess viability of aggregating larger pools of funds

to a smaller number of effective and well resourced organisations.

The Tourism Tasmania document defining the role of the RTOs states that one objective

of the RTO is to increase the benefits derived from the resources given over to tourism by

regional tourism organisations, local tourism associations, councils, marketing groups,

chambers of commerce, individual operators, Tourism Tasmania and other agencies.

The Regional Tourism Framework also states that for an RTO to be driven by the industry

it is vital that the industry have input into the development and management of its regional

marketing and development plans.

The restructuring of the local tourism associations should reflect the need for both

increasing the benefit from the contributions to regional tourism, and to provide clear

channels of communication for the development of the region’s tourism strategies.

It was suggested in the industry workshops that consideration be given to reorganising

the LTAs to reflect industry sectors rather than locations. Although there are some

benefits to this, such as sharing of innovation and best practice, it conflicts with the

direction to embrace destination management included in both the Regional Tourism

Review and the Tourism 21 strategy.

V I S I T O R I N F O R M A T I O N CE N T R E S

There are eight accredited VICs in the Cradle Coast region and two unaccredited: the

Port Sorrell VIC that operates during summer and a VIC at Penguin. Seven of the

accredited VICs are in the North West plus the two that are not accredited. The large

number of VICs indicate that there is a need to review the resources put into their

operation, and whether a centralised management, under the Regional Tourism

Association, could provide better outcomes for the Cradle Coast region’s tourism industry.


5.3. TOURISM RESPONSIBILITIES

In the business survey, respondents were asked to identify who should have primary

responsibility for the following activities in the management of tourism in the region, with

the results shown in Table 15.

TABLE 15 DESTINATION MANAGEMENT- PRIMARY

RESPONSIBILITIES

Tourism Tourism Tourism Tourism

TasmaniaTasmaniaTasmaniaTasmania

Cradle Cradle Cradle Cradle CoastCoastCoastCoast

AuthorityAuthorityAuthorityAuthority RTORTORTORTO

Local Local Local Local GovernmentGovernmentGovernmentGovernment

LTALTALTALTA

Intrastate marketingIntrastate marketingIntrastate marketingIntrastate marketing 21% 30%30%30%30% 22% 7% 19%

Interstate marketingInterstate marketingInterstate marketingInterstate marketing 58%58%58%58% 21% 12% 4% 5%

International marketingInternational marketingInternational marketingInternational marketing 86%86%86%86% 3% 8% 2% 2%

Product developmentProduct developmentProduct developmentProduct development 28%28%28%28% 29%29%29%29% 13% 14% 16%

Industry networking and Industry networking and Industry networking and Industry networking and communicationcommunicationcommunicationcommunication

21% 30%30%30%30% 21% 10% 19%

Visitor information Visitor information Visitor information Visitor information servicesservicesservicesservices

8% 13% 19% 29% 33%33%33%33%

TrainingTrainingTrainingTraining 26%26%26%26% 29%29%29%29% 16% 16% 13%

Business development Business development Business development Business development tools and advicetools and advicetools and advicetools and advice

35%35%35%35% 34%34%34%34% 13% 14% 5%

Events management, Events management, Events management, Events management, development and development and development and development and

marketingmarketingmarketingmarketing 20% 24%24%24%24% 20% 23%23%23%23% 12%

Visitor Markets and Visitor Markets and Visitor Markets and Visitor Markets and industry researchindustry researchindustry researchindustry research

53%53%53%53% 23% 11% 5% 7%


These results indicate that the industry firmly believes that international and interstate

marketing is the responsibility of Tourism Tasmania, and is a position that was also

supported in the industry workshops conducted as part of this report. The survey also

indicates that local industry believes the Cradle Coast Authority should be responsible for

marketing within the state. The survey also confirms Tourism Tasmania’s position as the

provider of market and industry research for the State’s tourism industry,

Product development and business development roles were shared between Tourism

Tasmania and the Cradle Coast Authority: it is possible that the provider of development

support may be related to the size and state-wide significance of the development in

question, and both organisations have a role in this area.

The RTO category was included to give respondents the opportunity to distinguish

between the Cradle Coast Authority and another RTO: that there was greater support for

the Cradle Coast Authority than an RTO in all categories except international marketing

indicates a broad level of support for the Authority. In addition, if the Cradle Coast

Authority assumes the role of the RTO, then the analysis of the combined data for these

two categories indicates a strong support for a regional body undertaking intrastate

marketing, product development, networking and communication, training, business

development and events.

The industry respondents saw Visitor Information Services as the responsibility of the

Local Tourism Associations, even though the Visitor Information Centres are generally the

responsibility of Councils. There was a view that Councils have some responsibilities in

organising events, though the Cradle Coast Authority received a slightly higher number of

responses.

5.4. TOURISM ORGANISATIONS

5.4.1. TOURISM TASMANIA

Tourism Tasmania is the government department responsible for the support and

development of the industry. It works with Tasmanian tourism businesses, associations

and stakeholder groups to drive benefits for Tasmania from domestic and international

tourism. It is part of the Tasmanian Government Department of Economic Development,

Tourism and the Arts.

As discussed in the previous section, the industry survey responses indicated that the

industry sees the roles for Tourism Tasmania as:

• Interstate and international marketing;

• Product and business development; and,

• Visitor and industry research.

The survey also indicates that there is support for some training to be provided by

Tourism Tasmania, although there was marginally more support for the Cradle Coast

Authority providing this service.


41 O C T O B ER 2011

I N D US T R Y P E R S P E CT I V E S

Tourism Tasmania was seen to have performed well in some areas, but several

participants were frustrated by the frequent changes of direction over recent years.

Others felt that Tourism Tasmania was too Hobart-centric: there was a perception that

Tourism Tasmania needs to understand the region better.


5.4.2. REGIONAL TOURISM

Tourism Tasmania is currently transitioning towards a regional governance structure

based on four Regional Tourism Organisations, one of which covers an area analogous to

the Cradle Coast Authority’s scope. This structure will replace the Zone Marketing

Groups, which are discussed below.

In terms of the relationship to their region, Tourism Tasmania has outlined the following

requirement for the RTOs37:

• Coordinating regional marketing, governance and industry development;

• Facilitate collaboration between all regional tourism stakeholders, including

membership models;

• Have structured and regular two-way communication within the industry; and,

• Play a key role in the development of an industry driven and strategic Regional

Tourism Plan, which must also consider effective visitor information provision across

the region including both traditional and digital applications.

Significantly for the Cradle Coast Authority, Tourism Tasmania also indicates that they will

not support an additional layer of tourism governance, with the implication that the

Authority will assume the role of the RTO, or be replaced by a new body.

Z O N E M A R K E T I N G G R O UP S

Zone marketing is a co-operative marketing program between Tourism Tasmania and the

tourism industry. The Zone Marketing Groups (ZMG) are in the process of being phased

out following a review in early 2010 and in future the marketing activity will be the

responsibility of the each of the regional tourism organizations.

There are two zone marketing groups operating in the Cradle Coast region:

• The North West Coast and King Island Zone

• The Western Wilderness Zone

When raised during the consultation with the region’s tourism industry, the following

observations were made:

37 Tourism Tasmania: Regional Tourism. This is not a complete list of the expected RTO outcomes.

• While some people accepted that the ZMGs were a good idea, most felt that the

concept had been sold badly and implementation had been poor;

• The ZMGs were widely considered to have favoured Hobart and Launceston at the

expense of more remote regions;

• A key problem of the ZMGs in the Cradle Coast region was that some destinations

were split between two or three different zones (the Cradle Mountain/ Central

Highlands/ Mole Creek area). The impression from King Island was that they were

effectively overlooked by being subsumed into a larger region that was not

necessarily representative of their area.

5.4.3. CRADLE COAST AUTHORITY

The Cradle Coast Authority is the regional authority working for nine councils within the

North West and West Coast of Tasmania to help coordinate and resolve regional issues;

tourism is just one of the industries that the authority is responsible. The nine councils

contribute to its annual budget and all the regional development activities are funded

through partnerships and funding agreements with other bodies. One member of the

Cradle Coast Authority’s board is selected to represent the tourism industry.

The Authority’s role in tourism includes creating partnerships on a local, regional and

state basis and developing strategies to ensure the region reaches its full tourism

potential. It also has a service agreement with Tourism Tasmania to deliver strategies

and projects within the region, and partnership agreements the Commonwealth

Government through the Sustainable Regions Program and the State Government

through the Cradle Coast Partnership Agreement.

The Board of Directors for the Cradle Coast Authority is comprised of eight business and

community leaders appointed by representatives of the participating Councils.


The Cradle Coast Authority was generally regarded highly by interviewees and was seen

as a role model for other regions within the Tasmania. Most of those consulted with in

forming this report felt that the Authority had performed well and had done an excellent

job in building trust and respect and nurturing leadership in the tourism industry.


43 O C T O B ER 2011

The structure of the Authority was viewed positively in the industry workshops and most

felt that the organisation works well with local councils and LTAs. Several people felt that

while the Authority performed well as project managers and dealt well with issues across

the region, there was a view that they could take a more strategic, leadership role for the

industry.

Respondents to the business survey predominantly indicated they were neither satisfied

nor unsatisfied with the performance of the Cradle Coast Authority, as shown in Table 16:

The only aspect where Neither did not receive the most responses was for Destination

Marketing, which received 43% as satisfied or very satisfied. The only aspect of the

Authority’s work that received more negative than positive results was Industry

Development.

The high percentage of Neither results indicates that there may be a lack of awareness

and/or engagement with CCA and their tourism initiatives. This indicates that although the

attendees of the workshops with industry viewed the Authority positively, there may be a

need to encouraged greater interaction with industry.

The survey results also indicate that the industry is aware of the marketing initiatives

undertaken by the Cradle Coast Authority, as shown in Figure. Only 17% of respondents

indicated that they are not aware of the marketing undertaken in 2010-11.

TABLE 16 CRADLE COAST AUTHORITY PERFORMANCE

Very SatisfiedVery SatisfiedVery SatisfiedVery Satisfied SatisfiedSatisfiedSatisfiedSatisfied NeitherNeitherNeitherNeither UnsatisfiedUnsatisfiedUnsatisfiedUnsatisfied Very Very Very Very

UnsatisfiedUnsatisfiedUnsatisfiedUnsatisfied

Destination marketingDestination marketingDestination marketingDestination marketing 14% 29%29%29%29% 27% 18% 12%

Industry developmentIndustry developmentIndustry developmentIndustry development 5% 25% 34%34%34%34% 23% 13%

Industry workshops and training Industry workshops and training Industry workshops and training Industry workshops and training opportunitiesopportunitiesopportunitiesopportunities

12% 27% 36%36%36%36% 20% 5%

Tourism strategy developmentTourism strategy developmentTourism strategy developmentTourism strategy development 11% 30% 38%38%38%38% 11% 11%

Industry networking opportunitiesIndustry networking opportunitiesIndustry networking opportunitiesIndustry networking opportunities 13% 33% 35%35%35%35% 16% 3%

Access to business development Access to business development Access to business development Access to business development toolstoolstoolstools

3% 31% 40%40%40%40% 24% 2%

Online & SOnline & SOnline & SOnline & Social Media ocial Media ocial Media ocial Media CommunicationsCommunicationsCommunicationsCommunications

14% 27% 34%34%34%34% 14% 12%

Visitor and industry researchVisitor and industry researchVisitor and industry researchVisitor and industry research 10% 23% 49%49%49%49% 11% 7%


FIGURE 28 CRADLE COAST AUTHORITY MARKETING

AWARENESS


39%

44%

17%

High level of awareness

Moderate level of awareness

Low level of awareness


5.4.4. LOCAL GOVERNMENT

There are nine Local Government municipalities that provide funding to the Cradle Coast

Authority:

• Burnie City Council

• Central Coast Council

• Circular Head Council

• Devonport Council

• Kentish Council

• King Island Council

• Latrobe Council

• Waratah-Wynyard Council

• West Coast Council


There were wide-ranging views on the effectiveness and performance of the Councils’

support to the tourism industry. Most participants in the workshops felt that Councils had a

key role to play in encouraging and delivering tourism investment because of the benefits

that tourism delivers to the wider community. Council investment was also seen as

important because they have the capacity to coordinate marketing on behalf of smaller

operators who may not have the funds to do so individually, and it was suggested that

Council could increase this support of the industry.

There was also a view from the workshops that there is a role for Council in working with

the Local Tourism Associations to ensure that they are operating strategically.

The Tourism Business Survey results indicated that the operators are generally not

satisfied with the performance of the Councils, particularly with regard to destination

marketing, industry development and Online and Social Media Communications. Also, as

discussed in section 5.3, industry did not see these aspects of the industry as the

responsibility of Councils. The only aspect of Council tourism activity that received more

satisfied and very satisfied results than unsatisfied and very unsatisfied was Event

Management.

TABLE 17 COUNCIL PERFORMANCE

Very Very Very Very SatisfiedSatisfiedSatisfiedSatisfied

SatisfiedSatisfiedSatisfiedSatisfied NeitherNeitherNeitherNeither UnsatisfiedUnsatisfiedUnsatisfiedUnsatisfied Very UnsatisfiedVery UnsatisfiedVery UnsatisfiedVery Unsatisfied

Destination Marketing Destination Marketing Destination Marketing Destination Marketing 9% 22% 28%28%28%28% 11% 30%30%30%30%

Industry Development Industry Development Industry Development Industry Development 3% 11% 34%34%34%34% 15% 36%36%36%36%

Online &Online &Online &Online & Social Media Social Media Social Media Social Media Communications Communications Communications Communications

10% 16% 26% 15% 33%33%33%33%

Industry Communication Industry Communication Industry Communication Industry Communication 10% 10% 36%36%36%36% 16% 28%

Event Management Event Management Event Management Event Management 5% 32%32%32%32% 27% 11% 24%


The Neither responses were either highest or second highest in all five categories

included in Table 17, which indicates a lack of awareness or engagement with the

activities undertaken by Council

FIGURE 29 COUNCIL MARKETING AWARENESS


Businesses indicated they had a moderate level of awareness (42%) of the tourism

marketing and development activities undertaken by Local Councils in 2010/11. A further

36% of businesses identified that they had a high level of awareness of the marketing

activities undertaken by Local Councils.

36%

42%

22%


Moderate level of awareness



45 O C T O B ER 2011

5.4.5. LOCAL TOURISM ASSOCIATIONS

The Cradle Coast region has at least 15 Local Tourism Associations, in a variety of forms

and interests. The more prominent ones include:

• Burnie Tourism Association

• Caves to Canyon Tourism Association

• Circular Head Tourism Association

• Cradle Mountain Tourism Association

• Devonport Tourist Association

• Kentish Council Tourism Committee

• King Island Tourism Association

• Latrobe and Port Sorell Tourism Association

• Project Queenstown

• Waratah Wynyard Tourism Advisory Group

Approximately 68% of respondents to the Tourism Business Survey indicated that they

were a member of a Local Tourism Association (LTA). The most common LTAs

highlighted were Circular Head Tourism Association, Latrobe & Pt Sorell Tourism

Association and the Burnie Tourism Association.


Similar to local councils, workshop attendees had widely divergent views on the

performance of various LTAs, which was seen to be determined by their leadership. One

of the recurring observations from the meeting was that there were far too many LTAs in

existence: as noted above, there are about 15 operating in the Cradle Coast region,

indicating the need for consolidation.

The industry survey asked respondents to rate the performance of their LTA in six areas.

The results indicate that that most are generally satisfied with their LTA, as only Research

received more negative than positive responses, as per Table 18.

TABLE 18 LOCAL TOURISM ASSOCIATION PERFORMANCE

Very SatisfVery SatisfVery SatisfVery Satisfiediediedied SatisfiedSatisfiedSatisfiedSatisfied NeitherNeitherNeitherNeither UnsatisfiedUnsatisfiedUnsatisfiedUnsatisfied Very Very Very Very

UnsatisfiedUnsatisfiedUnsatisfiedUnsatisfied

Visitor servicingVisitor servicingVisitor servicingVisitor servicing 16% 35%35%35%35% 27% 12% 10%

Public relations and Public relations and Public relations and Public relations and communicationscommunicationscommunicationscommunications

20% 29%29%29%29% 27%27%27%27% 10% 14%

Local visitor guide or mapLocal visitor guide or mapLocal visitor guide or mapLocal visitor guide or map 37%37%37%37% 22% 22% 6% 12%

Industry networking Industry networking Industry networking Industry networking functionsfunctionsfunctionsfunctions

12% 31%31%31%31% 33%33%33%33% 14% 10%

FamiliarisFamiliarisFamiliarisFamiliarisation toursation toursation toursation tours 15% 19% 35%35%35%35% 13% 19%

ResearchResearchResearchResearch 2% 21% 36%36%36%36% 7% 33%33%33%33%


Local visitor guide or map and Visitor servicing received a high level of satisfaction among

businesses that responded to the survey: over half were satisfied or very satisfied with

these activities. Almost half were also positive about their LTA’s public relations and

communications.

The highest dissatisfaction of businesses was in relation to the Research activity

undertaken by LTAs, with 33% indicating they were very unsatisfied. Only 7% of

respondents indicated that they thought that this activity was a responsibility for their LTA,

as shown in Table 15.

One suggestion from the workshops is that LTAs for product types should be considered.

This has been successful on Victoria’s Mornington Peninsula, but the distances involved

are much less than in the Cradle Coast region. The difficulty in regularly attracting

business operators from places as far apart as Strahan, Smithton and Devonport would

suggest that destination based organisations may be more successful.


5.4.6. VISITOR INFORMATION CENTRES

There are eight accredited Visitor Information Centres (VICs) located in the Cradle Coast

region, out of a total of 20 in the State. Six of the North West centres are funded and

managed by Council; the Stanley VIC is funded through Council, but managed by the

Circular Head Tourism Association. The VICs in the region are:

• Wynyard Visitor Information Centre- Waratah-Wynyard Council

• Sheffield Visitor Information Centre, Sheffield- Kentish Council

• Latrobe Visitor Centre, Latrobe Council

• Makers Workshop, Burnie

• Ulverstone Visitor Information Centre, Ulverstone

• Devonport Visitor Information Centre, Devonport- Devonport Council

• Stanley Visitor Information Centre – Circular Head

• West Coast Visitor Centre, Strahan

In addition to these centres, a VIC operates at Port Sorell during the summer months.

Given the number of VICs in the region, and the cost to councils associated with them, it

was suggested that a regional review be undertaken. The review would include analysis

and make recommendations on whether the maximum benefit for the level of funding is

being realised.


47 O C T O B ER 2011

6. ISSUES AND OPPORTUNITIES

6.1. INTRODUCTION

The purpose of this section is to summarise the issues and opportunities for tourism in the

Cradle Coast region, to inform the future regional tourism strategies. The issues and

opportunities for further consideration are:

• Product Development

• Seasonality

• Regional Accessibility

• Rationalisation of tourism organisations and services

• Regional marketing

6.2. PRODUCT DEVELOPMENT

The development of new products and the reinvigoration of existing ones can lead to

increased length of stay and repeat visitation. Analysis of investment and new

developments in the region indicates that the low levels of investment, particularly in

some destinations.

6.2.1. NEW AND EMERGING PRODUCT

There is a range of products either commencing development, or being considered for

development, the most significant is the golf course at Cape Wickham on King Island.

Another proposal that may drive further investment and development in the region is the

tourist road in the Tarkine.

There is also an opportunity to develop tourism product linked to the seafood industry

based in Strahan, which does not currently offer any other local produce. The uniqueness

of Queenstown, which has the character of a frontier town, may also be promoted and

developed to attract increased visitation.

The towns and cities along the Bass Strait in the North West may develop product and

experiences based on their sea-side locations. Opportunities for marine activities such as

boating, fishing, and exploring the islands off Smithton and Stanley may drive increased

tourism.

6.2.2. PRODUCT INVESTMENT AND REFRESH

The available data and responses from the survey indicate that the region’s tourism

businesses are not investing in new and renewed products.

The barriers to business growth that over 10% of respondents identified in the Tourism

Business Survey include:

• Visitor Demand

• Expense of marketing

• Seasonality

• Obtaining finance

• Government regulation

Further investigation of these barriers to business growth and their impact on investment

decisions is required before strategies to facilitate investment can be recommended.

6.3. SEASONALITY

Seasonality was regularly identified as having a significant impact on business viability:

this is supported by the data included in section 2.4.6, and is an issue for tourism across

the State. There are two general courses of action that can be undertaken to address this

issue: either market the region as a winter experience or review business models to

minimise the financial impact of the winter slow period.

There are tourism destinations around the world that close during their off season, such

as some Mediterranean destinations in winter and some of the European Alpine resorts in


summer. Some businesses from Strahan are considering closing for the winter months,

but the concern for businesses is the losing staff due to the periods of no employment.

Finding and retaining quality staff in remote tourism businesses was also indentified as an

issue facing the region’s tourism industry.

A targeted events strategy should be considered to drive increased visitation during

winter.

6.4. REGIONAL ACCESSIBILITY

The change towards shorter but higher yielding trips to Tasmania has significant

implications for the West Coast in particular, as its remoteness tends to restrict visitation

to those touring the State over longer periods. It is approximately 4 hours drive from

Strahan to either Launceston or Hobart, which indicates that it is not a short stay

destination.

Suggestions made during consultation to address the impact of the accessibility to

Strahan, and increase the number of visitors include:

• Scheduling regular flights from Melbourne to Strahan, with a stopover in Wynyard;

• Change the Spirit of Tasmania business model to the aim being economic benefit to

the State rather than direct profit: this may lead to reduced fares for people to bring

their car to Tasmania and then tour the North West and West Coast;

• Promote Tasmania as a touring destination, highlighting the driving experiences on

offer, particularly on the West Coast.

6.5. RATIONALISATION OF TOURISM

ORGANISATIONS AND SERVICES

One of the underlying objectives of Tourism Tasmania’s Regional Initiative is to make the

most of the resources applied to tourism, including regional tourism organisations, local

tourism associations, Councils, marketing groups, chambers of commerce, individual

operators, Tourism Tasmania and other agencies. The three main considerations for this

rationalisation are Local Tourism Associations, Visitor Information Centres, and the

general consideration of funding efficiency.

6.5.1. LOCAL TOURISM ASSOCIATIONS

Tourism Tasmania’s Regional Tourism Initiative requires RTOs to have strong links to

their region’s industry, including regular communication, involvement in strategic planning,

and board representation. Given the size of the Cradle Coast region, and the number of

tourism operators, this would be a difficult undertaking without a streamlined and co-

ordinated set of Local Tourism Associations. The current situation, with approximately 15

LTAs running in a variety of modes, also needs to be considered in terms of the Regional

Tourism Initiative’s efficient use of resources goal.

Rather than selecting which LTAs will be supported by and represented within the RTO,

implementing a set of criteria may effective, using Tourism Tasmania’s Regional Tourism

Initiative as a model. By establishing goals for LTAs to achieve, which may include multi-

disciplinary industry input, geographical alignment, level of funding contribution and

Council support, the region’s tourism industry will be responsible for selecting and/or

creating the LTAs that will work with the RTO.

In addition the Cradle Coast region’s tourism industry is dominated by owner operated

businesses. Many of these businesses have little time to be actively involved with local

tourism associations and when they are have little capacity to action items discussed and

planned at meetings. This highlights the importance for LTA’s to have resources to

deliver to actions, which can only be achieved with fewer better resourced LTA’s than

many ineffective low resourced LTAs.

6.5.2. VISITOR INFORMATION CENTRES

There are eight all year round VICs in the region, seven within the North West plus the

West Coast Centre in Strahan. In addition, a facility operates in Port Sorrell between

November and April each year.

The main point of the review of VICs is to determine the level of funding contributed by

Council for their operation, and whether this funding could be used for more benefit to the

region’s tourism industry. The implication is that VICs would come under the auspices of

the RTO, and Councils would provide funding on the basis of service agreements.

A review of visitor information services across the Cradle Coast region is needed to

identify areas of visitor information services to focus effort and resources on.


49 O C T O B ER 2011

6.5.3. OTHER EFFICIENCY MEASURES

A review of funding and resources allocated to tourism by Councils, LTAs and other

bodies to determine efficiencies and duplication may realise greater benefits to tourism in

the region from these allocations. Clear definitions of responsibilities between Tourism

Tasmania, the RTO, LTAs and Councils will also enable a reduction in duplication,

improving the value realised from tourism resources.

Areas for consideration include product and industry development services, Council

tourism officers, marketing, publications and networking.

6.6. REGIONAL MARKETING

The findings of the market assessment, product and experience audits indicate that there

are distinct regions within the Cradle Coast, and the RTO needs to consider how

marketing campaigns are organised to maximise the benefit to the region’s tourism

industry.

The market assessment and product and experience audits both highlight the differences

between the West Coast and the North West, in terms of both product offer and visitor

markets.

The questions to be resolved in reviewing the approach to regional marketing area:

1. Can the marketing be organised by experience rather than location?

2. The size, and amount of driving required to travel through the Cradle Coast

region should also be taken into account if the region is to be marketed as a

whole – will it make sense to prospective tourists?

3. What does it mean for each region, and the value it can obtain with its

marketing funding, if marketed separately?

4. Can different regions be promoted in different markets?

5. Which region does Cradle Mountain best align with?

6. Does King Island successfully align with the Cradle Coast region and the North

West, or would it be better off being marketed as a separate entity?

6.7. RECOMMENDED ACTIONS

There are a number of areas which should be the focus of action for the Cradle Coast

Authority, which will address the issues and opportunities identified in this report:

• Agreement on a GovernanceAgreement on a GovernanceAgreement on a GovernanceAgreement on a Governance roles and responsibilities.roles and responsibilities.roles and responsibilities.roles and responsibilities. This will ensure that there is

no overlap in responsibilities by Governance organisations and that there are clear

roles for the RTO, LTAs Local Government and Tourism Tasmania.

• Tourism Product Development and Opportunities PlanTourism Product Development and Opportunities PlanTourism Product Development and Opportunities PlanTourism Product Development and Opportunities Plan: A study which takes the

product audit of this report and identifies investment opportunities across the region

targeted to gaps in provision and demand and preferences of future visitor markets.

This will ensure that product and experiences in the region have currency for future

markets.

• Marketing, Marketing, Marketing, Marketing, Communications and PrCommunications and PrCommunications and PrCommunications and Product Awareness Poduct Awareness Poduct Awareness Poduct Awareness Plan.lan.lan.lan. There is need for a plan

for Cradle Coast region which clearly identifies key market segments for future

focus, media which should be used to target markets and product and destinations

which should be the focus of external marketing. This plan should also support and

promote the recommendations of the Tourism Product Development and

Opportunities Plan.

• Review of visitor information services: Review of visitor information services: Review of visitor information services: Review of visitor information services: Consumption of visitor information has

changed significantly in the past 10 years and it is essential that resources and effort

are linked to demand and visitor needs. A review of the provision of online visitor

information services, walk in VICs, collateral and the need for smart phone based

information should be considered.

5 0 STATE OF THE R E G I O N T OU R I S M I N TH E CR A DL E C O A S T

APPENDIX A TOURISM BUSINESS SURVEY RESULTS

INTRODUCTION

This report provides an assessment of the performance of the tourism industry in the Cradle

Coast region during the 2010/11 Financial Year. This assessment is based on an internet

survey distributed to tourism operators in the Cradle Coast region between September and

October 2011.

The key indicators used to assess the performance of the tourism industry in the region

include:

• Employment change;

• Capital investment;

• Marketing and promotion;

• Visitor markets;

• Online marketing;

• Current issues and opportunities;

• Regional approach to Tourism Destination Management.

M E T H O D O L O G Y

The link to the internet based Tourism Business Survey was sent to the businesses included

on the Cradle Coast Authority’s tourism database. Survey Monkey was used to collect the

responses to the survey.

S UR V E Y S A M P L E

Urban Enterprise received full responses from 118 of the approximately 630 tourism

businesses on the Cradle Coast Authority member database.

The following table provides a summary of the businesses that have responded to the Cradle

Coast Tourism Business Survey by industry sectors in 2010/11.

Business SectorBusiness SectorBusiness SectorBusiness Sector No. of BusinessesNo. of BusinessesNo. of BusinessesNo. of Businesses % % % % ResponsesResponsesResponsesResponses

AAAAccommodationccommodationccommodationccommodation 60 51%

AAAAttractionsttractionsttractionsttractions 16 14%

Antiques/Galleries/Art & CraftAntiques/Galleries/Art & CraftAntiques/Galleries/Art & CraftAntiques/Galleries/Art & Craft 9 8%

GGGGolfolfolfolf 1 1%

RestaurantsRestaurantsRestaurantsRestaurants 6 5%

Tours & ActivitiesTours & ActivitiesTours & ActivitiesTours & Activities 8 7%

EEEEventsventsventsvents 4 3%

Other Other Other Other 14 12%

Total 118118118118 100%100%100%100%


51 O C T O B ER 2011

B US I N E S S L O CA T I O N S

105 Respondents indicated where their businesses are located, places with 5 or more

responses were:

LocationLocationLocationLocation ResponsesResponsesResponsesResponses

StrahanStrahanStrahanStrahan 11

LatrobeLatrobeLatrobeLatrobe 9

DevonportDevonportDevonportDevonport 8

StanStanStanStanleyleyleyley 7

BurnieBurnieBurnieBurnie 7

WynyardWynyardWynyardWynyard 6

SheffieldSheffieldSheffieldSheffield 6

Cradle MountainCradle MountainCradle MountainCradle Mountain 5

SmithtonSmithtonSmithtonSmithton 5

EMPLOYMENT

Q : H O W M A N Y P E O P L E WE R E E M P L O Y E D B Y Y O UR B U S I N E S S O N 1 S T

O CT O B E R 2 0 1 1 ?

On average businesses employed:

• 2.9 Full time staff

• 2.3 Part time staff

• 3.9 Casual staff

Q : CO M P A R E D WI T H T H E F I N A N CI A L Y E A R 2 0 0 9 / 1 0 , H A S E M P L O Y M E N T

I N CR E A S E D , D E CR E A S E D O R R E M A I N E D T H E S A M E I N 2 0 1 0 /1 1 ?

60% of businesses indicated that employment has remained the same in 2010/11 when

compared to 2009/10. More businesses indicated that they had decreased employment than

increased: 18% of businesses indicated that employment has increased compared to 22%

decreased.

Q : D O Y O U E XP E CT T H E N UM B E R O F P E O PL E Y O U E M PL O Y T O I N CR E A S E ,

D E CR E A S E O F R E M A I N T H E S A M E O V E R T H E F I N A N C I A L Y E A R 2 0 1 1 / 1 2?

The large majority (74%) businesses in Cradle Coast region expected employment to

increase over the 2011/12 Financial Year.

Increased

18%

Decreased

22%Remained

the Same

60%

Increased

15% Decreased

11%

Remained

the Same

74%


CAPITAL INVESTMENT

Q : I N D O L L A R T E R M S , W H A T CA P I T A L I N V E S T M E N T D I D Y O U M A K E I N

Y O UR B US I N E S S I N T H E F I N A N C I A L Y E A R 2 0 1 0 / 1 1 ?

In response to the question regarding capital investment in 2010/1159 businesses indicated

that they had made a capital investment in 2010/11, at a total of $2.57 million. The average

investment of those 59 businesses was $43,500. If all 120 respondents to this question are

taken into account, the average drops to $21,400. Only 10% of the responding businesses

sought building approvals in 2010/11.

Fittings and Furnishings and Equipment/Office Supplies were the most frequently reported

types of investment, while New Buildings had the highest reported average investment.

Renovations/Extensions received the highest total investment, at $897,500.

Investment TypeInvestment TypeInvestment TypeInvestment Type No. of ResponsesNo. of ResponsesNo. of ResponsesNo. of Responses Average Investment Average Investment Average Investment Average Investment per Businessper Businessper Businessper Business

Total InvestmentTotal InvestmentTotal InvestmentTotal Investment

New BuildingsNew BuildingsNew BuildingsNew Buildings 5 $108,046 $540,230

Renovations/ExtenRenovations/ExtenRenovations/ExtenRenovations/Extensionssionssionssions 27 $33,241 $897,500

Fittings/FurnishingsFittings/FurnishingsFittings/FurnishingsFittings/Furnishings 35 $7,839 $244,210

Landscaping/GardeningLandscaping/GardeningLandscaping/GardeningLandscaping/Gardening 31 $7,751 $217,440

Equipment/Office SuppliesEquipment/Office SuppliesEquipment/Office SuppliesEquipment/Office Supplies 36 $4,440 $155,406

Machinery/PlantMachinery/PlantMachinery/PlantMachinery/Plant 26 $10,604 $243,950

Vehicles/BoatsVehicles/BoatsVehicles/BoatsVehicles/Boats 11 $27,100 $271,500

OVERALLOVERALLOVERALLOVERALL 59 $43,500 $2.57m

Q : I N D O L L A R T E R M S , W H A T CA P I T A L I N V E S T M E N T D O Y O U E XP E CT T O

M A K E I N Y O UR B US I N E S S F O R T H E F I N A N C I A L Y E A R 2 0 1 1 / 12 ?

Only 50 businesses indicated that they were expecting to make investments in 2011/12, with

an estimated total investment of $2.52 million, a marginal reduction. The most noticeable

difference from 2010/11 is that fewer businesses are expecting to undertake renovations, but

the average investment is expected to much higher.

Fittings and Furnishings and Equipment/Office Supplies were the most frequently expected

types of investment, and Renovations and Extensions accounted for the highest value, in line

with 2010/11 results.

Investment TypeInvestment TypeInvestment TypeInvestment Type No. of ResponsesNo. of ResponsesNo. of ResponsesNo. of Responses Average Investment Average Investment Average Investment Average Investment per Businessper Businessper Businessper Business

Total InvestmentTotal InvestmentTotal InvestmentTotal Investment

New BuildingsNew BuildingsNew BuildingsNew Buildings 7 $93,333 $560,000

ReReReRenovations/Extensionsnovations/Extensionsnovations/Extensionsnovations/Extensions 18 $54,889 $988,000

Fittings/FurnishingsFittings/FurnishingsFittings/FurnishingsFittings/Furnishings 26 $9,318 $206,600

Landscaping/GardeningLandscaping/GardeningLandscaping/GardeningLandscaping/Gardening 23 $7,423 $163,400

Equipment/Office SuppliesEquipment/Office SuppliesEquipment/Office SuppliesEquipment/Office Supplies 26 $4,667 $112,450

Machinery/PlantMachinery/PlantMachinery/PlantMachinery/Plant 19 $12,898 $245,060

Vehicles/BoatsVehicles/BoatsVehicles/BoatsVehicles/Boats 5 $61,000 $244,000

OVERALLOVERALLOVERALLOVERALL 50 $50,400 $2.52m


53 O C T O B ER 2011

MARKETING AND PROMOTION

Q : WH A T D I D Y O U S P E N D O N M A R K E T I N G A N D P R O M O T I O N O F Y O UR

B US I N E S S F O R T H E 2 0 1 0 / 1 1 P E R I O D ?

In 2010/11, businesses spent on average of $9,987 on business marketing and promotion.

Q : WH A T D O Y O U E XP E CT T O SP E N D O N M A R K E T I N G A N D P R O M O T I O N

O F Y O UR B US I N E S S F O R T H E 2 0 1 1 / 1 2 P E R I O D ?

Businesses expected to spend on average $10,905 per business on marketing and promotion

in 2011/12.

Q : O N A R A T I N G S C A L E F R O M 1 T O 3 , W H A T M A R K E T I N G A C T I V I T I E S

D O Y O U CO N T R I B UT E Y O U R M A R K E T I N G F U N D S T O ?

Cooperative marketing campaigns were the two most frequently cited marketing activity

attracting the highest spend. Of note, after Tourism Tasmania cooperative campaigns, online

marketing received the next highest combined responses.

Q : I N R E G A R D S T O Y O UR CUR R E N T O N L I N E P R E S E N C E A N D A CT I V I T Y ,

PL E A S E I N D I C A T E W H I CH O F T H E F O LL O WI N G A P PL I E S T O Y O UR

B US I N E S S

60% of businesses had their own website or were represented in other websites in 2010/11.

A further 68% of businesses participated in 'Online booking system' (35%) and 'Facebook'

(33%) online activities.

33%

15%

14%

11%

10%

10%

24%

18%

14%

22%

13%

12%

14%

15%

21%

13%

13%

Tourism Tasmania Cooperative

Marketing campaigns

Zone Marketing Cooperative

Marketing Packages

Radio

Online

Visitor Centre brochure fees

Television

Advertisement in Zone Holiday

Planner/ Visitor Guide

Local Tourism Association

Marketing Campaigns

Highest Spend 2nd Highest Spend 3rd Highest Spend

59%

35%

33%

4%

6%

7%

Website

Online booking system

Facebook

Blogging

Twitter

YouTube


VISITOR MARKETS

Q : O F Y O UR C US T O M E R B A S E , P L E A S E I N D I C A T E A " B E S T E S T I M A T E " O F

T H E P E R CE N T A G E O F Y O U R C US T O M E R S WH O Y O U T H I N K A R E V I S I T O R S

T O T H E CR A D L E C O A S T ? ) .

Businesses were asked to provide a ‘best estimate’ of the proportion of customers who they

believed were visitors to the Cradle Coast region in 2010/11.

In 2010/11, on average 64% of customers were visitors to the Cradle Coast region.

Q : A S A P E R CE N T A G E , P L E A S E E S T I M A T E T H E P R O P O R T I O N O F Y O UR

I NT E R S T A T E C US T O M E R S F O R T H E F OL L O WI N G S T A T E S :

39% of customers to businesses in the Cradle Coast region came from Victoria. This was

followed by NSW (21%) and QLD (18%).

Q : A S A P E R CE N T A G E , PL E A S E E S T I M A T E W H A T P R O P O R T I O N O F Y O UR

CUS T O M E R S CO M E F R O M O V E R S E A S .

Businesses estimated that approximately 12% of customers to the businesses in the Cradle

Coast region were from overseas.

Q : R A N K T H E T O P 5 I N T E R N A T I O N A L M A R K E T S W H I CH A R E M O S T

IM P O R T A N T T O Y O UR B U S I N E S S . ( 1 B E I N G T H E M O S T I M P O R T A N T , 5

R E P R E S E N T I N G L E A S T I M P O R T A N CE )

The ranking of important overseas markets, from 1 for most to 5 to least important, indicates

that the UK, New Zealand, USA and Germany are the most important.

VIC

39%

NSW

21%

QLD

18%

SA

9%

WA

8%

ACT/NT

6%

0 10 20 30 40 50 60

Other

Malaysia

India

France

Netherlands

Japan

Hong Kong

Other Asia

China

Singapore

Other Europe

Germany

USA

New Zealand

United Kingdom

1

2

3

4

5

Votes


55 O C T O B ER 2011

Q : H A S T H E N UM B E R O F I N T E R N A T I O N A L , I N T E R S T A T E A N D

I NT R A S T A T E CUS T O M E R S I N CR E A S E D , D E CR E A S E D O R R E M A I N E D T H E

S A M E O V E R T H E P A S T 5 Y E A R S ?

Half of businesses identified that Intrastate visitation had increased over the past 5 years.

41% of businesses believed that Interstate visitation had decreased, while a further 40%

believed visitation had increased over the past 5 years in the Cradle Coast region.

The majority of businesses identified that international visitation had either increased or

remained the same.

Q : D O Y O U E XP E CT T H E N UM B E R O F I N T E R N A T I O N A L , I N T E R S T A T E A N D

I NT R A S T A T E CUS T O M E R S T O I N CR E A S E , D E CR E A S E O R R E M A I N T H E

S A M E O V E R T H E N E XT 5 Y E A R S ?

The large majority of businesses believed intrastate visitation would either increase or remain

the same over the next 5 years.

47% of businesses in the Cradle Coast region believed that Interstate visitation would

increase over the next 5 years.

44% of businesses believed that international visitation would decrease in the next 5 years.

49%

40%

36%

26%

19%

36%

25%

41%

29%

Intrastrate

Interstate

International

Increased Remained the same Decreased

46%

47%

30%

46%

36%

26%

7%

17%

44%

Intrastrate

Interstate

International

Increase Remain the same Decrease


INCOME

Q ; WH A T I S Y O UR E S T I M A T E F O R T H E CH A N G E I N G R O S S B U S I N E S S

I N CO M E ( T UR N O V E R ) F O R T H E F I N A N C I A L Y E A R 2 0 1 1 / 1 2 CO M P A R E D T O

T H E F I N A N C I A L Y E A R 2 0 1 0 / 1 1?

Almost half of businesses in the Cradle Coast region estimated that their gross business

income would increase in 2011/12, with over one-third of businesses expecting an increase in

income between 1% and 20%.

36% of businesses expected their gross income to decrease in the 2011/12 Financial Year,

with 24% of businesses expecting a decrease in income between 1% and 20%.

BARRIERS AND CONSTRAINTS

Q : WH A T D O Y O U CO N S I D E R T O B E T H E B I G G E S T B A R R I E R T O G R O WI N G

Y O UR B US I N E S S ?

'Visitor demand' was the most significant barrier in business growth in 2010/11, followed by

high marketing campaigns expense and seasonality issues.

A further 16% of businesses experienced 'Other' barriers in business growth, with the high

Australian Dollar, time constraints, government planning issues and taxation noted as issues.

7%

5%

12%

24%

16%

16%

8%

4%

8%

31% or more - Increase

21% - 30% - Increase

11% - 20% - Increase

1% - 10% - Increase

No Change

1% - 10% - Decrease

11% - 20% - Decrease

21% - 30% - Decrease

31% or more - Decrease

21%

16%

15%

14%

10%

9%

6%

4%

2%

2%

1%

Visitor demand

Other

The expense of marketing

campaigns

Seasonality issues

Obtaining finance

Government regulation

Labour costs

Lack of or poor marketing

and promotion

Attracting quality staff

Access constraints

Obtaining a planning permit


57 O C T O B ER 2011

Q : WH A T D O Y O U B E L I E V E I S T H E K E Y I S S UE CO N S T R A I N I N G T O UR I S M

G R O WT H I N T H E CR A D L E C O A S T R E G I O N ?

20% of businesses identify 'Seasonality' to be the biggest constraint in tourism growth in the

Cradle Coast region, followed by 'Access to/from the region' and 'Lack of or poor marketing

and promotion'. A further 20% identified 'Other' issues such as high Australian Dollar, lack of

events and activities and lack of high yield visitors

TOURISM GOVERNANCE

Q : H O W WE L L A R E Y O U A W A R E O F T H E T O UR I S M M A R K E T I N G A N D

D E V E L O P M E N T A CT I V IT I E S UN D E R T A K E N B Y T H E CR A D L E CO A S T

A UT H O R I T Y?

Businesses were asked to identify their level of awareness for the tourism marketing and

development activities undertaken by the Cradle Coast Authority in 2010/11.

44% of businesses had a moderate level of awareness of the tourism marketing and

development activities undertaken by the Cradle Coast Authority in 2010/11, followed by 39%

of businesses that had a high level of awareness.

20%

20%

15%

14%

10%

5%

5%

5%

4%

1%

Seasonality

Other

Access to/from the region

Lack of or poor marketing

and promotion

The expense of marketing

campiagns

Lack of investment

Poor quality visitor

services

Lack of quality product

Poor quality infrastructure

Skill shortages

39%

44%

17%


Moderate level of

awareness



Q : H O W WO UL D Y O U R A T E T H E P E RF O R M A N CE O F T H E CR A D L E C O A S T

A UT H O R I T Y I N R E G A R D S T O T H E F OL L O WI N G ?

Businesses were asked to rate the performance of the Cradle Coast Authority in regards to

the following activities in 2010/11.

Very Very Very Very SatisfiedSatisfiedSatisfiedSatisfied

SSSS’’’’fiedfiedfiedfied NeitherNeitherNeitherNeither UnsUnsUnsUns’f’f’f’fiediediedied Very Very Very Very UnsatisfiedUnsatisfiedUnsatisfiedUnsatisfied

Destination marketingDestination marketingDestination marketingDestination marketing 14% 29% 27% 18% 12%

Industry developmentIndustry developmentIndustry developmentIndustry development 5% 25% 34% 23% 13%

Industry workshops and training Industry workshops and training Industry workshops and training Industry workshops and training opportunities opportunities opportunities opportunities

12% 27% 36% 20% 5%

TouriTouriTouriTourism strategy development sm strategy development sm strategy development sm strategy development 11% 30% 38% 11% 11%

Industry networking opportunities Industry networking opportunities Industry networking opportunities Industry networking opportunities 13% 33% 35% 16% 3%

Access to business development tools Access to business development tools Access to business development tools Access to business development tools 3% 31% 40% 24% 2%

Online & Social Media CommunicationsOnline & Social Media CommunicationsOnline & Social Media CommunicationsOnline & Social Media Communications 14% 27% 34% 14% 12%

Visitor and industry researchVisitor and industry researchVisitor and industry researchVisitor and industry research 10% 23% 49% 11% 7%

'Destination marketing' and 'Online & Social Media Communication' activities undertaken by

the Cradle Coast Authority received the highest level of satisfaction among businesses that

responded to the survey.

Businesses were mostly very unsatisfied with 'Industry development' activities undertaken by

the Cradle Coast Authority in 2010/11.

Q : H O W WO UL D Y O U R A T E T H E P E RF O R M A N CE O F Y O UR L T A I N

R E G A R D S T O T H E F OL L O WI N G ?

Nearly 70% of businesses were members of a Local Tourism Association (LTA) in 2010/11.

Some of the most common LTAs were Circular Head Tourism LTA, Latrobe & Pt Sorell

Tourism Association and the Burnie Tourism Association.

Businesses were asked to rate the performance of the Local Tourism Association in regards

to the following activities:

Very SatisfiedVery SatisfiedVery SatisfiedVery Satisfied SatisfiedSatisfiedSatisfiedSatisfied NeitherNeitherNeitherNeither UnsatisfiedUnsatisfiedUnsatisfiedUnsatisfied Very UnsatisfiedVery UnsatisfiedVery UnsatisfiedVery Unsatisfied

Visitor servicing Visitor servicing Visitor servicing Visitor servicing 16% 35% 27% 12% 10%

Public relations and communicationsPublic relations and communicationsPublic relations and communicationsPublic relations and communications 20% 29% 27% 10% 14%

Local visitor guide or map Local visitor guide or map Local visitor guide or map Local visitor guide or map 37% 22% 22% 6% 12%

Industry networking functions Industry networking functions Industry networking functions Industry networking functions 12% 31% 33% 14% 10%

Familiarisation tours Familiarisation tours Familiarisation tours Familiarisation tours 15% 19% 35% 13% 19%

Research Research Research Research 2% 21% 36% 7% 33%

'Local visitor guide or map' and 'Visitor servicing' received a relatively high level of satisfaction

among businesses that responded the survey in the Cradle Coast region.

The majority of businesses felt that the 'Research' activity undertaken by the Local Tourism

Association were very unsatisfied or neither satisfied nor unsatisfied.


59 O C T O B ER 2011

Q : H O W WO UL D Y O U R A T E T H E P E RF O R M A N CE O F Y O UR L O CA L

CO UN C IL I N R E G A R D S T O T H E F O LL O WI N G ?

Very SatisfiedVery SatisfiedVery SatisfiedVery Satisfied SSSS’’’’fiedfiedfiedfied NeitherNeitherNeitherNeither UnsUnsUnsUns’f’f’f’fiediediedied Very UnsatisfiedVery UnsatisfiedVery UnsatisfiedVery Unsatisfied

Destination Marketing Destination Marketing Destination Marketing Destination Marketing 9% 22% 28% 11% 30%

Industry Development Industry Development Industry Development Industry Development 3% 11% 34% 15% 36%

Online & SociaOnline & SociaOnline & SociaOnline & Social Media Communications l Media Communications l Media Communications l Media Communications 10% 16% 26% 15% 33%

Industry Communication Industry Communication Industry Communication Industry Communication 10% 10% 36% 16% 28%

Event MEvent MEvent MEvent Management anagement anagement anagement 5% 32% 27% 11% 24%

'Online & Social Media Communications' and 'Industry Communication' activities undertaken

by Local Councils received the highest level of satisfaction among business who responded

the survey in 2010/11, followed by 'Event Management'.

The majority of businesses rated the 'Industry Development' activities undertaken by Local

Councils to be 'neither satisfied nor unsatisfied', or 'very unsatisfied'.

Q : H O W WE L L A R E Y O U A W A R E O F T H E T O UR I S M M A R K E T I N G A N D

D E V E L O P M E N T A CT I V IT I E S UN D E R T A K E N B Y Y O UR L O CA L C O U N C IL ?

42% of businesses had a moderate level of awareness of the tourism marketing and

development activities undertaken by Local Councils in2010/11.

A further 36% of businesses identified that they had a high level of awareness of the

marketing activities undertaken by Local Councils.

Q : I D E N T I F Y W HI C H O R G A N IS A T I O N S H O UL D H A V E P R I M A R Y

R E S P O N S I B I L I T Y F O R T H E F OL L O WI N G A R E A S O F T O UR I S M D E S T I N A T I O N

M A N A G E M E N T

The primary responsibility identified by businesses for Local Tourism Association in terms of

tourism destination management was 'Visitor Information services'.

Businesses identified that the primary responsibilities for Cradle Coast Authority were

'Business development tools and advice', 'Intrastate marketing' and 'Industry networking and

communication'.

The primary responsibilities for Regional Tourism Association were 'Intrastate marketing' and

'Industry networking and communication'.

The primary responsibilities for Local Councils in respect to tourism destination management

were 'Visitor information services' and 'Events management, development and marketing'.

The key responsibilities for Tourism Tasmania were 'International marketing', 'Interstate

marketing' and 'Visitor markets and industry research'.

36%

42%

22%


Moderate level of

awareness


LTALTALTALTA Cradle Cradle Cradle Cradle CoastCoastCoastCoast

AuthorityAuthorityAuthorityAuthority

RTRTRTRTOOOO Local Local Local Local Gov'tGov'tGov'tGov't

Tourism Tourism Tourism Tourism TasTasTasTas

Intrastate marketing Intrastate marketing Intrastate marketing Intrastate marketing 19% 30% 22% 7% 21%

Interstate marketingInterstate marketingInterstate marketingInterstate marketing 5% 21% 12% 4% 58%

International marketingInternational marketingInternational marketingInternational marketing 2% 3% 8% 2% 86%

Product developmentProduct developmentProduct developmentProduct development 16% 29% 13% 14% 28%

Industry networking and communicationIndustry networking and communicationIndustry networking and communicationIndustry networking and communication 19% 30% 21% 10% 21%

Visitor information servicesVisitor information servicesVisitor information servicesVisitor information services 33% 13% 19% 29% 8%

TrainingTrainingTrainingTraining 13% 29% 16% 16% 26%

Business development tools and adviceBusiness development tools and adviceBusiness development tools and adviceBusiness development tools and advice 5% 34% 13% 14% 35%

Events management, development and Events management, development and Events management, development and Events management, development and marketingmarketingmarketingmarketing

12% 24% 20% 23% 20%

Visitor Markets and industry researchVisitor Markets and industry researchVisitor Markets and industry researchVisitor Markets and industry research 7% 23% 11% 5% 53%


FURTHER COMMENTS

The following section provides a summary of the key further comments made by tourism

businesses in the Cradle Coast region.

• North West Tasmania is unique with its cool temperate climate and rich soils

enabling gardens of outstanding quality and presents tourism opportunities with a

garden/farm focus;

• Experience marketing will need to be promoted through a state-wide strategy to the

Interstate and International markets;

• Tourism marketing and development should have a focus on young adventurous

visitors who are higher yield markets, provided the focus is on wilderness and

adventure;

• Tourism marketing should focus on the Island itself rather than individual areas with

fragmented marketing and development;

• A firm direction would be needed for Tourism Tasmania before the Regional and

Local Tourism Associations set their directions;

• There are limited support for tourism businesses from Local Councils;

• Increasing costs of ferry tickets would have an impact on Interstate and International

visitation;

• The primary responsibility for Tourism Tasmania and Regional Tourism

Associations is to market and promote Tasmania as a whole.

Date post:	23-Mar-2016
Category:	Documents
Upload:	cradle-coast-authority
View:	217 times
Download:	0 times

StateoftheRegion_TourismintheCradleCoast

Documents