Growing Wheatbelt Tourism 2017-2020 - Page 1 of 60
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Document Control This document has been prepared by the Wheatbelt Development Commission. Updated 14 September 2017 Version: Version Release Date: Revisions: Purpose: V1 29 May 2017 WDC Initial Version V2 8 August 2017 WDC WDC Board Review V3 14 September 2017 WDC & Industry Industry Review and Public Comment V4 WDC Incorporate Public Comment Page 2 of 60
Table of Contents Glossary............................................................................................................................... 4 Acronyms ............................................................................................................................. 5 Foreword.............................................................................................................................. 6 1.0 Executive Summary ................................................................................................... 7 2.0 Western Australian Tourism ....................................................................................... 9 3.0 Wheatbelt Tourism ................................................................................................... 10 3.1 Background .......................................................................................................... 10 3.2 Value/Economic Cost Benefit ............................................................................... 12 3.3 Competitive Advantage ......................................................................................... 13 3.4 Comparative Advantage ....................................................................................... 14 4.0 Wheatbelt Tourism Trends ....................................................................................... 16 4.1 Visitation Rates ..................................................................................................... 16 4.2 Expenditure .......................................................................................................... 18 4.3 Employment .......................................................................................................... 19 4.4 Private Capital Investment .................................................................................... 21 5.0 Strategic Alignment – International/ Federal/ State Context and Priorities ............... 23 5.1 Tourism WA’s Five A’s of Success ....................................................................... 24 5.2 Additional WDC A’s of Success ............................................................................ 25 6.0 Current Industry Profile ............................................................................................ 26 6.1 Wheatbelt Tourism Product .................................................................................. 26 6.2 Key Stakeholders.................................................................................................. 28 6.3 Strengths, Weaknesses, Opportunities, Threats................................................... 29 6.4 Key Issues ............................................................................................................ 30 7.0 Wheatbelt Tourism Growth Priorities ....................................................................... 31 7.1 Industry Vision ...................................................................................................... 31 7.2 Target ................................................................................................................... 31 7.3 Growth Strategy Development Process ................................................................ 33 7.4 Recommendations ................................................................................................ 35 8.0 References............................................................................................................... 45 9.0 Appendices .............................................................................................................. 47 Page 3 of 60
Glossary The World Tourism Organisation (WTO) defines tourism as: ‘the activities of persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited’. Term Description Domestic Day Those who have travelled for a round trip distance of more than Trip Visitors 50km or 4 hours to a place and returns to their usual place of residence the same day. Domestic Australian resident aged 15 years and over who spent at least Overnight one night away from home in the region.1 Visitor International International visitors aged 15 years and over who spent at least Overnight one night in the region. 1 Visitor Interstate A person visiting a State or Territory other than that in which they Visitor/Night usually reside. An interstate visitor night is any night spent in a State or Territory other than that in which they usually reside. Intrastate A person visiting a location away from their usual place of Visitor/Night residence in the State or Territory in which they reside. An intrastate visitor night is any night spent away from their usual place of residence in the same State or Territory in which they usually reside. Tourism Expenditure by visitors during a trip, including airfares and other Expenditure transport costs and any amount spent on trip-related items before, during and after the trip, until they return to their usual place of residence. Tourism A tourism region is a geographical region that has been Regions designated by Tourism Research Australia and the Australian Bureau of Statistics as having common cultural or environmental characteristics. Tourist Someone who is away from home for less than one year continuously, for the purpose of leisure (including holidaying and visiting friends and/or relatives), business, education, employment or other personal reason, other than to be employed by a resident entity in the country or place visited. 2 Tourist A physical or cultural feature of a particular place that individual Attraction travellers or tourists perceive as capable of meeting one or more of their specific leisure-related needs.1 Visitor Nights A measure of the total number of nights spent by overnight visitors on overnight trips. 1 Tourism WA 2 World Tourism Organisation Page 4 of 60
Acronyms ABS Australian Bureau of Statistics ACC Australia’s Coral Coast AGO Australia’s Golden Outback CAGR Compound Annual Growth Rate CBD Central Business District CRC Community Resource Centre DPAW Department of Parks and Wildlife DPIRD Department of Primary Industry and Regional Development DRD Department of Regional Development GVA* Gross Value Added LGA Local Government Authority LTO Local Tourism Organisation NEWROC North Eastern Wheatbelt Regional Organisation of Councils NEWTRAVEL North Eastern Wheatbelt Travel RAC Royal Automobile Club RTO Regional Tourism Organisation SBCD Small Business Development Corporation SWDC South West Development Commission WA Western Australia WAITOC Western Australian Indigenous Tourism Operators Council WBN Wheatbelt Business Network WDC Wheatbelt Development Commission WTO World Tourism Organisation * Gross Value Added (GVA) is a dollar value for the amount of goods and services that have been produced, less the cost of all inputs and raw materials that are directly attributable to that production. Page 5 of 60
Foreword The Wheatbelt’s many natural and heritage icons, its proximity to Perth and access via key state and federal road networks delivers annual visitor numbers of nearly 700,000. The industry is important to the Region for two reasons: 1. It presents an opportunity to diversify the economy and drive both revenue and job growth, particularly in high amenity areas; and 2. The underpinning infrastructure that supports tourism also enhances community amenity and liveability. The latter is critical in addressing workforce attraction, a priority for the Wheatbelt. As the second most visited region in WA after the South West, the Wheatbelt has strong industry assets and activity on which to build. Growth in industry value and jobs will be dependent on addressing capability and capacity issues and driving new market opportunities. This Strategy identifies unique Wheatbelt tourism assets, current growth inhibitors and outlines initiatives which will maximise tourism growth opportunities. It recognises the Wheatbelt’s connection to tourism activity in other regions and acknowledges significant planning undertaken by the Tourism industry organisations of Experience Perth, Australia’s Coral Coast and Australia’s Golden Outback. The Wheatbelt Development Commission thanks key thought leaders and stakeholders for their input into the development of the Strategy and looks forward to ongoing engagement to bring opportunities for growth to fruition. Chair, Wheatbelt Development Commission Page 6 of 60
1.0 Executive Summary The Wheatbelt Tourism Growth Strategy sets a target for the Region’s tourism industry to increase the value of the sector from $245 million in 2015 to $301 million in 2020, and double the number of those employed in the industry from 1,560 in 2014/15 to 3,120 in 2020. This growth will be driven by an increase in visitor overnight stays from 2,265,700 nights in 2014/15 to 2,706,800 nights in 2020. The Wheatbelt Regional Investment Blueprint (2015) outlines the Region’s vision for the future. This Strategy is a direct result of the Blueprint process, which highlights a need to “foster emerging industries that diversify the economy and create new jobs” (Outcome 1.1, pg 79). In relation to the tourism industry, the Blueprint identifies the need for a ‘whole of region tourism strategy to focus investment, build capability and product and market this’ (pg 41). Specifically, the Blueprint recognises the unique Wheatbelt advantages of nature based and heritage tourism. It also recognises that tourism enhances the Region’s amenity and liveability which addresses workforce attraction, a priority for the Wheatbelt. Metropolitan Perth is the main tourism destination in WA. In regional WA, the Wheatbelt is the second highest visited region and receives over 670,000 visitors annually3, contributing to 10% of the State’s tourism economic value 4. The Wheatbelt’s unique natural amenity and built heritage is valued as an asset for social, cultural and economic development, particularly in the tourism industry. As a result, growth of the Wheatbelt’s tourism industry over the last 15 years (2001 – 2016) has seen: • Close to 300,000 visitors annually 5,6 to two iconic natural attractions (Wave Rock and the Pinnacles); • Annual international tourism expenditure quadrupled from $15 million to $61 million 7; • Increased overnight visitors at an average of 9% per year3; and • Tourism-related private investment in excess of $65 million 8. An increase to the length of visitor stay in the Wheatbelt will add value to existing tourism product, increase expenditure in the Region and drive jobs growth for an emerging industry. This Strategy recognises that there is the potential to increase the quality and experience around existing product and broaden the range of products for both domestic and international markets, attracting a greater range of visitor types and increasing their length of stay in the Region. 3 Tourism Western Australia (2014/15), ‘Wheatbelt Development Commission Area: Overnight Visitor Fact Sheet’ 4 Department of Training and Workforce Development (2012), ‘Wheatbelt Workforce Development Plan 2013-2016’, pg. 12 5 Australia’s Golden Outback (2017), ‘Pathways to Wave Rock’ 6 Australia’s Coral Coast (2017), ‘The Pinnacles and Nambung National Park’ 7 Tourism Western Australia, Department of Regional Development (2012), unpublished tourism expenditure data 8 Estimated from Wheatbelt Development Commission’s private investment listings Page 7 of 60
Through desktop research, analysis and consultations with industry organisations and stakeholders, this strategy has identified a number of initiatives to drive industry growth and jobs over the short and long term. The aim of this strategy is focus on those initiatives that will: • Enhance access, amenity and activity around four Wheatbelt tourism first-tier icons: o New Norcia o The Pinnacles o Wave Rock o Wildflowers • Connect and enhance the numerous second-tier tourist attractions such as: o Self-drive trails o Events of international and national significance (aviation, motorsports, equestrian, water-based etc) o Heritage locations (Avon Valley, Aboriginal Heritage experiences, Museums etc) • Utilise digital capacity to access and grow markets and enhance visitor experience to increase the length of stay; and • Drive collaboration, training, and cultural and environmental awareness across industry to achieve economies of scale and targeted market penetration. Page 8 of 60
2.0 Western Australian Tourism Key Highlights: • The State Government’s goal is to double WA’s tourism economic value to $12B by 2020 • Tourism employment in WA has increased to 7.1% of the State’s total employment • At least 45% of the State’s tourism expenditure is spent in regional WA Tourism WA’s 2020 Tourism Strategy has set a target to double the State’s tourism economic value from $6 billion in 2010 to $12 billion by 2020. In 2016, 921,400 international visitors (or 11% of Australia’s international visitors) came or travelled within WA, spending $2.35 billion 9. In addition to this, the State’s total visitor and expenditure number including international, interstate and intrastate overnight visitors and day trippers equated to 29.8 million visitor nights spending $9.62 billion9. In addition to direct fiscal earnings, growth in the tourism sector also generates: • Employment opportunities for unskilled, semiskilled and skilled workers. Tourism creates 97,200 jobs in WA, an increase of 3,500 jobs in 2016 which accounted for 7.1% of State employment, overtaking mining (6.9%) 10; • A source of public as well as private income; • Cultural exchange from tourists including language, arts, skills and culture; and • Promotion/publicity of the State to the rest of the world, encouraging future tourist exchanges. Tourists in WA also tend to travel regionally, to discover and experience the diverse and dramatic landscapes the State has to offer. In 2016, $4.7 billion or 45% of the State’s total tourism expenditure was spent in Regional WA. The proportion of regional tourism expenditure and visitation (both leisure and business) can be seen in the Figure below. Figure 1: Proportion of regional tourism expenditure (1a) and visitors (1b) according to Regional Tourism Organisation (RTO) boundaries [Source: Tourism Western Australia, Fast Facts Year Ending September 2016] 9 Tourism Western Australia (2016), Fast Facts Year Ending September 2016 10 Tourism Council WA (2016) Page 9 of 60
3.0 Wheatbelt Tourism Key Highlights: • The Wheatbelt has the second highest number of visitors in WA, outside metropolitan Perth • Wheatbelt tourism contributes 10% of the State’s tourism economic value • The Wheatbelt has four internationally/nationally recognised icons and many locally known attractions • The tourism industry increases amenity, liveability and economic diversity of the Wheatbelt • Proximity to Perth allows easy access to distinct natural, built and Aboriginal heritage • The diversity of landscape, sporting and heritage attractions across the Wheatbelt provides options for visitation on a year-round basis, with many sub-regions being more popular at particular times of year. 3.1 Background Outside metropolitan Perth, the Wheatbelt has the second highest number of visitors after the South West 11. The Region welcomes over 670,000 visitors annually, which delivers a turnover estimated to be $245 million per annum, contributing to 10% of the State’s tourism market 12. The Wheatbelt has four significant and internationally/nationally known icons: • Wave Rock; • The Pinnacles; • New Norcia Benedictine Community; and • Wildflowers. These recognised tourist icons are complemented by numerous second-tier tourist attractions including: adventure tourism activities; self-drive trails accessing natural and historic attractions; significant events; and links to tourism activity in the Goldfields- Esperance, Great Southern, Peel and Mid-West regions. 11 Regional visitations, not including the Perth metropolitan area 12 WA Planning Commission (2009) Page 10 of 60
Figure 2: Opportunities for economic growth in the Wheatbelt sub-regions, including tourism; [Source: Wheatbelt Development Commission, Key Economic Features Map] The Wheatbelt is divided into five sub-regions: Central coast, Central midlands, Central East, Avon and Wheatbelt South. The following map outlines the local governments that make up each sub-region. Page 11 of 60
Within the Wheatbelt, three Regional Tourism Organisations (RTO’s) operate. Experience Perth includes the Wheatbelt Shires of Beverley, Brookton, Chittering, Gingin, Goomalling, Northam, Toodyay, Victoria Plains (including New Norcia), Wandering and York. Australia’s Coral Coast includes the one Wheatbelt Shire of Dandaragan. Australia’s Golden Outback includes all other 31 Wheatbelt LGA’s outside of those in the Experience Perth and Australia’s Coral Coast regions. The following map highlights the Regional Tourism Organisations that operate in Western Australia: 3.2 Value/Economic Cost Benefit The Wheatbelt has historically been heavily reliant on the agriculture and mining sectors and as a result, the Region’s commodity economy is highly influenced by seasonal variation, market prices and is susceptible to currency fluctuations. Tourism in the Wheatbelt has the potential to diversify economic growth and development and increase jobs in the Region. Increasing the diversity and resilience of the Wheatbelt’s economy is a key strategic aim outlined in the Wheatbelt Regional Investment Blueprint (2015), Vibrant Economy Vision for “A diversified and adaptive economic base building on the Wheatbelt’s assets and aligned to State, National and International opportunity” (pg. 3). Page 12 of 60
While tourism has been a small contributor to the Wheatbelt economy, contributing $199.7 million 13 in Industry Gross Value Add compared to Agriculture ($1.8 billion or 24.9%) and Mining ($1.4 billion or 20%) in 2014-2015 14, it can provide a new injection of spending and secondary economic benefits to local regional communities. This can be done through 15: • Supporting increased use of existing infrastructure and amenity; • Increasing the turnover of retail and service businesses that are essential to service local residents, and in doing so improving business viability in small towns; and • Profiling communities and industry sectors. 3.3 Competitive Advantage ‘Competitive advantage’ is the ability to use resources effectively and generate greater value for visitors than the surrounding competitors. Proximity to Perth A key comparative advantage for the Wheatbelt is its proximity to the Perth Metropolitan area, with the Wheatbelt surrounding Perth on its North and East boundaries. Many of the key attractions for the Region are accessible in a day-trip from Perth, exposing the Region to significant numbers of visitors who do not have the time to travel further afield. The Central Coast, Central Midlands and Avon Sub-regions in particular benefit from this, as well as the western parts of the Wheatbelt South Sub-region. The proximity of the Wheatbelt to Perth also makes it attractive for weekend trips, with much of the Region accessible within 3 hours drive from the Perth CBD. In addition, the Wheatbelt is en-route to outlying regions such as the South West, Mid West, Goldfields-Esperance and Great Southern. All season and diverse cultural, sport and recreational activities The Region has a range of attractions and nature-based recreational activities including: hot air ballooning, skydiving and gliding in the Avon Valley; fishing, surfing, skydiving, kite boarding, snorkelling and scuba diving along the Turquoise Coast; bush walking and mountain bike riding on the Munda Biddi Trail; and 4WD and motor-cross activities across the Region. This diversity makes the overall Region attractive to different visitor markets year-round although the key time for visitors is from Easter to November. Some activities are popular during the winter-spring months (e.g. mountain biking or hiking), and others more popular in summer-autumn months. (e.g. water sports or fishing). This is a significant advantage compared to other regions where specific periods account for the vast majority of visitors, making tourism in the Wheatbelt a viable year-round enterprise. Some Aboriginal culture and heritage interpretive tourism experiences such as Njaki Njaki Tours in the Wheatbelt East, and the Aboriginal Interpretive Centre under construction in 13 Department of Regional Development (2011), ‘Wheatbelt: A Region In Profile 2011’ 14 Wheatbelt Gross Regional Product Statistics (2015) 15 Wheatbelt Regional Investment Blueprint (2015) Page 13 of 60
the Avon are emerging. The region is also home to numerous museums that interpret historical Wheatbelt life and work. Some tourism activities can take advantage of natural assets such as the night sky. This can increase visitor numbers during traditionally low visitation periods (e.g. the heat of summer) in parts of the Wheatbelt. Value-adding through local knowledge and expertise Within the Wheatbelt, a number of organisations have a strong knowledge base for their focus areas or industries and have been able to leverage this knowledge into successful business ventures. Examples include the Pinnacles Visitor Centre and the Wheatbelt Way drive trail, which have leveraged local expertise into tourism offerings for visitors. Converting local knowledge into a coordinated, professional product provides significant value-add for visitors. There is also considerable potential to further value-add to tourism attractions in the Region, through improved packaging of products that are in proximity to each other, improved marketing, co-ordination between organisations and integration of infrastructure to support increased visitor numbers. 3.4 Comparative Advantage ‘Comparative advantage’ is the natural and heritage resources available to a destination and the Region’s advantage over surrounding competitors as a result. Varied scenic landscapes and diverse natural amenity The Wheatbelt has a number of picturesque scenic landscapes distinctive to this Region. The diverse landscape varies across the sub-regions, from the pristine white beaches and clear turquoise waters of Cervantes and Jurien Bay; the rolling hills and winding streams in the Avon Valley; forests and woodlands in the Dryandra area and Central Midlands; to the more rugged terrain in the Central East along self-drive trails such as the Wheatbelt Way and the Tin Horse Highway. These diverse landscapes, including granite outcrops, salt lakes, wildflowers, unique sculptures and agricultural fields provide visitors with a dynamic, changing experience as they travel through the Region. Built heritage The focus of the built heritage of the Wheatbelt differs significantly to other regions of Western Australia. The Wheatbelt offers opportunities for visitors to observe both past and present working life, with a number of early settler heritage buildings and working farm tours and farm stays providing unique accommodation options throughout the Region. The Wheatbelt’s heritage buildings include the Williams Woolshed, New Norcia Benedictine Community monastic townsite, the historic towns of York (WA’s first inland town) and Toodyay, the Albert Facey homestead in Wickepin and the Avondale Discovery Farm in Beverley. Over 55 museums throughout the Region offer visitors further insight into the history of the Wheatbelt. Page 14 of 60
Aboriginal heritage There are approximately 800 Aboriginal heritage sites throughout the Wheatbelt 16. Some sites, such as the Dorntj Koorliny (‘walking together’) Aboriginal heritage trail along the Avon River have interpretive signs on site, while tour operators such as the Njaki Njaki tours in Merredin provide guided Aboriginal heritage tours and activities for visitors. Aboriginal heritage is largely an understated aspect of the Wheatbelt’s tourism attractions, and could be highlighted across tourism promotions for the Wheatbelt. However, many of these sites are culturally sensitive and there may be no benefit in providing tourism access due to the risk of them being damaged or dealt with in a disrespectful manner. Astronomy The Wheatbelt, with its trade mark clear skies, low light pollution and open spaces, is highly attractive to tourists who come from densely populated urban regions. The Wheatbelt is ideally positioned to capture both domestic and international markets and astronomy tourism in the form of astrophotography or stargazing is a growing tourism niche. Advances in technology and increased media exposure have led to exponential growth in the hobby over the last two decades. Organisations such as Astronomy WA, Stargazers Club WA, Indigo Storm Photography and Astro Photography Australia have increased the exposure of the advantages of the Wheatbelt for stargazing and astrophotography. Internationally/nationally recognised natural icons The Wheatbelt is home to two internationally/nationally recognised natural icons and two of the State’s most popular day trip destinations - Wave Rock and The Pinnacles. These two sites attract approximately 100,000 17 and 190,000 18 visitors respectively each year and provide significant tourism expenditure and economic growth into nearby Wheatbelt shires and towns. Having iconic destinations in close proximity to Perth gives the Wheatbelt an advantage in attracting day trippers and weekenders and capturing en-route visitors and visitor expenditure. Enhancing activities at these iconic attractions through infrastructure development will encourage visitors to stay more than one night as they have more activities at the one destination. Coordinated marketing that incorporates iconic destinations into broader tours/itineraries will also be beneficial. The Central Coast Sub-region is beginning to show this breadth of activity and collaboration. International standard experiences can now be had at the Pinnacles, Lobster Shack and Jurien Bay Skydive, accommodation and amenity infrastructure is being invested in and collaborative marketing is occurring, attracting the interest of tourism wholesalers. 16 WAPC 2015 17 Australia’s Golden Outback (2017), ‘Pathways to Wave Rock’ 18 Australia’s Coral Coast (2017), ‘The Pinnacles and Nambung National Park’ Page 15 of 60
4.0 Wheatbelt Tourism Trends Key Highlights: • 94% of visitors to the Wheatbelt are domestic travellers • This Strategy assumes the majority of domestic travellers are self-drive and/or self- contained • Domestic visitor numbers fluctuate depending on global economic cycles • The number of overnight visitors in total has increased at an average of 9% per year since 2011 • While domestic tourism expenditure in the Wheatbelt fluctuates from year to year, international tourism expenditure quadrupled between 2001 and 2012 • Overall, analysis of Wheatbelt tourism trends is difficult due to a lack of destination level, industry value and employment statistics • Tourism related private investment is estimated to be in excess of $65 million, over the last five years 4.1 Visitation Rates There were approximately 676,700 international and domestic visitors in the year 20143, increased from approximately 666,846 visitors in 2013 19 and 605,700 visitors in 2012 20. Domestic travellers over this period made up approximately 94% of total visitors, dominating the Wheatbelt’s tourism market. While domestic visitors continue to make up the majority of total visitors, these visitation rates continue to fluctuate according to global economic cycles such as the Global Financial Crisis of 2007-08, whereas international tourist numbers appear more stable. 800.0 700.0 Estimated visitor number ('000s) 600.0 500.0 400.0 300.0 200.0 100.0 - 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Year Domestic International Figure 3: Estimated visitors to the Wheatbelt (domestic and international); [Source: Tourism WA Visitation Data] 19 Unpublished 2013 visitation data from Tourism WA 20 Tourism WA (2012), ‘International and Domestic Visitor Number 2001 to 2012’ Page 16 of 60
For the year ending 2014, the Wheatbelt had a comparatively low proportion of domestic (interstate and intrastate) and international visitors compared to the South West. Approximately 8% of the overnight visitors in WA stayed in the Wheatbelt, compared to 23% of overnight visitors in WA who stayed in the South West. The proportion of total overnight visitors in WA who stayed in the Wheatbelt can be further broken down into: • 8.9% of the State’s Intrastate overnight visitors; • 3.9% of the State’s Interstate overnight visitors; and • 4.9% of the State’s International overnight visitors. Of estimated visitor nights, less than 4% of total State nights are spent in the Wheatbelt, however this is proportionate to: • 4.6% of the State’s Domestic total visitor nights; and • 1.9% of the State’s International total visitor nights. Table 1: Estimated overnight visitor numbers and nights for the Wheatbelt, comparative to the South West and WA; [Source: Tourism WA (2015) ‘Wheatbelt Development Commission Area Overnight Visitor Fact Sheet YE 2014/15’] 2014/2015 Wheatbelt % South West % Western Australia % Estimated overnight visitors Intrastate 586,500 87% 1,739,500 88% 6,542,000 76% Interstate 48,500 7% 113,000 6% 1,215,000 14% International 41,200 6% 123,900 6% 827,000 10% Total 676,700 100% 1,976,400 100% 8,584,000 100% Estimated visitor nights Domestic 1,695,500 75% 5,708,000 78% 36,353,000 56% International 570,200 25% 1,617,000 22% 28,593,000 44% Total 2,265,700 100% 7,325,000 100% 64,946,000 100% According to Tourism WA, the Wheatbelt experienced 2,265,700 visitor nights in the 2014/15 financial year9 (refer to Table 1). Of these, 75% of visitor nights were spent by domestic visitors and 34% or 770,338 domestic visitor nights were spent in a caravan park, commercial camping ground or non-commercial camping ground3. As a result, this Strategy assumes the majority of visitors are self-drive and/or self-contained (caravans) with accommodation and meal preparation facilities. While total overnight visitor numbers are comparatively lower than the South West, the Wheatbelt has experienced a comparatively higher increase in the total visitor number growth rate between 2011 and 2015. A visitor number compound annual growth rate (CAGR) of 9.32% over the four year period between 2011 and 2015 indicates a compound growth of approximately 9% per year; in comparison, the South West experienced a CAGR of 6.63% during the same timeframe. This indicates the Wheatbelt had a higher rate of visitor number growth than the South West, despite receiving less overnight visitors in total. Page 17 of 60
This strategy recognises the need to better quantify the breakdown of the Wheatbelt’s domestic tourism market. This includes the value comparison between overnight visitors and day trippers to the Region. It also includes the breakdown of the type of domestic tourist visiting the Wheatbelt according to social and economic demographics and tourism segments such as business, events, groups, education, visiting friends/relatives or Meetings, Incentives, Conventions and Exhibitions (MICE). 4.2 Expenditure Total expenditure in the Wheatbelt has experienced continued growth since 2001. During the period of 2001-2012, the average tourism expenditure per year in the Wheatbelt was approximately $202 million. During this time frame, total tourism expenditure was at its highest in 2012 at approximately $239 million (see Table 2), which was made up of: • $177.9 million from domestic visitors; and • $60.9 million from international visitors. Table 2: Tourism expenditure in the Wheatbelt for years 2011 and 2012; [Source: Tourism WA and Department of Regional Development (2012)] Total Visitors Total Tourism Expenditure 2011 2012 2011 2012 Number % Number % $m % $m % Domestic 438,700 93 569,300 94 167.4 77 177.9 74 International 34,700 7 36,400 6 49.3 23 60.9 26 Total 473,400 100 605,700 100 216.7 100 238.8 100 Between 2001 and 2012, domestic visitor expenditure made up the majority of total expenditure; however this continues to fluctuate according to global economic cycles. Meanwhile international visitor expenditure quadrupled between 2001 and 2012, generating a greater proportion of the Region’s tourism income each year. Page 18 of 60
300.0 250.0 Expenditure ($m) 200.0 150.0 100.0 50.0 0.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Year Domestic International Total Linear (Total) Figure 4: Estimated Wheatbelt tourism expenditure showing linear increase in total tourism expenditure and an increased international spend between 2001 and 2012; [Source: Tourism WA and Department of Regional Development (2012)] 4.3 Employment Employment by Tourism Sectors Since Tourism is a service based industry comprising a number of tangible and intangible components 21, Tourism employment sectors are not readily identifiable. As a result, the typology of tourism characteristic activities (direct tourism employment sectors) can be grouped into 5 categories 22: 1. Accommodation and Food Services a. Accommodation b. Food and beverage services 2. Retail Trade a. Fuel retailing b. Food retailing c. Other store-based retailing 3. Arts and Recreation Services a. Heritage activities b. Creative and performing arts activities c. Sports and recreation activities d. Gambling activities 4. Transport, Postal and Warehousing a. Road transport b. Rail transport c. Water transport d. Air transport 21 Tourism Western Australia (2006), Inquiry into Australia’s Service Industries 22 Based on the ABS Industrial Classification for Tourism Page 19 of 60
5. Rental, Hiring and Real Estate Services a. Rental and hiring services (except real estate) Interpretation of the latest ABS census data can be done at an industry level, however specialisation into the above breakdown of direct tourism employment sectors (a,b,c etc.) is not widely available at a Regional level. Therefore, this Strategy acknowledges the following statistics may not be an accurate representation of direct tourism employment, but an indication of the industries as a whole. Between 2006 and 2011, the Wheatbelt experienced growth of employment in Accommodation and Food Services (an increase of 216 jobs; refer to Table 3), and Transport, Postal and Warehousing (and increase of 176 jobs); two sectors that are not specialised to the Region. This increase in total change in employment is primarily due to the prosperity of both sectors at a State-wide whole-of-industry and whole-of-economy level; however the Wheatbelt could take advantage of these employment sectors within its tourism industry as they thrive across the State. In contrast, the Retail Trade and Rental, Hiring and Real Estate Services sectors are declining; however these are driven by a decrease at a whole-of-industry level due to external factors. Industry Sector National Share Industry Mix Regional Shift Total Change (2006-2011) (2006-2011) (2006-2011) in Employment (2006-2011) Retail Trade 488.578 -314.885 -263.692 -90 Accommodation and Food Services 237.197 15.806 -37.004 216 Transport, Postal and Warehousing 266.980 132.040 -223.020 176 Rental, Hiring and Real Estate Services 51.056 -39.442 -28.613 -17 Table 3: Shift share analysis (2006-2011) of the Wheatbelt's employment across four tourism-related sectors, compared to State Employment across Local Government Areas In 2014/15 the estimated percentage of tourism-related employment from total Wheatbelt workforce was 4.4%, or 1,560 jobs 23. This has increased from 3% or 1,153 tourism-related jobs in 2001 24. As shown in Figure 5, the Shire of Northam held the greatest number of tourism-related jobs in the region (240, 4.5%), followed by the Shires of Toodyay (110, 5.1%), Narrogin (110, 4.6%), Gingin (110, 4.6%), Dandaragan (100, 6.2%), York (90, 6%), Chittering (90, 3.5%) and Merredin (80, 5%). A breakdown of employment by LGA can be seen in Appendix 4. 23 Tourism Works (2015), ‘The Western Australian Tourism Works Atlas’ 24 Tourism Task Force (2001), ‘The Tourism Employment Atlas for Australia’ Page 20 of 60
Figure 5: Map showing the distribution of tourism-related jobs across the Wheatbelt Shires; [Source: Tourism Works (2014/15), ‘The Western Australian Tourism Works Atlas’] 4.4 Private Capital Investment The following tourism-related private capital investments have occurred or are occurring across the Wheatbelt in the past decade. The investment is estimated in excess of $65 million8. Avon Sub-region • The Grand Hotel, Northam • Dukes Inn, Northam • Fourteen K Brewery, Muchea • Dome Café and Accommodation, Northam (under construction) • Avondale Discovery Farm Housing Development, Beverley • Aboriginal Environmental and Interpretive Centre Northam (under construction) Central Coast Sub-region • Jurien Bay Harbour • Ledge Point Caravan Park • Jurien Bay Caravan Park • Cervantes Caravan Park • Skydive Jurien Bay Page 21 of 60
• Jurien Bay Hotel • Jurien Bay to Cervantes Trail Development • Sandy Cape Campground Upgrade • Lobster Shack Redevelopment, Cervantes Central East Sub-region • Merredin Tourist Park - 20 New Chalets Central Midlands Sub-region • Moora Airport for Recreational Flying Accommodation and Plane Terminal • New Norcia By-pass and lookout, internal visitor infrastructure Wheatbelt South Sub-region • Dome Café and Accommodation, Narrogin (under construction) • Dumbleyung Bluebird Festival Development • Wave Rock Airport Terminal, Hyden • Mary’s Farm Cottages at Cambinata Yabbies, Kukerin Page 22 of 60
5.0 Strategic Alignment – International/ Federal/ State Context and Priorities This Strategy has been developed to guide the contribution of Regional Development to the State Government’s objective to increase the value of tourism in Western Australia to $12 billion by 2020. The Strategy is available on the Tourism Western Australia website, http://www.tourism.wa.gov.au/About%20Us/Growing_tourism/Strategy/Pages/default.aspx. It provides a regional strategic response to the seven outcome areas developed by Tourism Western Australia, the 2020 State Tourism Strategy and highlights where Regional Development can make the most effective contribution. Seven Outcome Areas • Brand • Infrastructure • Business travel • Asian markets • Events • Regional travel • Indigenous Tourism WA Goals • Tourism enabling infrastructure in regional WA • Australia's best regional events calendar • Improved caravan, camping and self-drive experiences • Extraordinary regional experiences, including nature-based, adventure based and food and wine Regional Goal • Increase average estimated visitor nights and maintain the number of overnight visitors Role of Regional Development The contribution of Regional Development will be in the areas of industry and infrastructure development; however destination marketing will continue to be provided by Tourism WA and the regional tourism associations. The key elements of the regional development contribution will be: • Infrastructure Development: Support of a network of iconic and core attractors to regional WA. This can link to a variety of nature based experiences and build upon the strategic advantage of the Region in regard to Aboriginal tourism, camping and caravanning, nature based and marine opportunities. • Events Support: Development of a network of regional events that can leverage visitation and length of stay as a primary objective and related sector investment as a secondary objective, for example food and wine events. This recognises the Page 23 of 60
important link the 2020 State Tourism Strategy makes to business visitation and the opportunity to link to regional trade delegations. • Industry Development: Assist regional industry to collaborate and develop packaged holiday options, targeting national and international market sectors with an emphasis on wholesaling and web based packaging at a regional and inter regional level. Regional Development can assist industry to take up market ready programs especially in regard to Asian visitor market opportunities and better prepare for growth in overseas market visitation through improved tourism packaging. 5.1 Tourism WA’s Five A’s of Success Tourism WA recommends that tourism business, ideas and strategies be considered within the context of the five A’s of tourism: Attraction, Access, Accommodation, Awareness and Amenities, as they are essential components of successful tourism destinations and businesses. This Strategy is framed around the following definitions for Tourism WA’s five A’s of success: 1. Attraction – what brings visitors to the Region? A tourist attraction is the place of interest that tourists visit when travelling for leisure. Typically an attraction is visited for its cultural value, historical significance and natural or built heritage 25. 2. Access – how can visitors get to the Region? Transportation is needed to allow tourists to access their place of interest, from where they live to where they are visiting25. This includes how tourists get to WA and Perth and then how they access the Wheatbelt. In the Wheatbelt, roads serve as the most significant form of access for tourists. 3. Amenities – how do facilities make it easy for the visitor to have a good experience? Amenities are the services that are required to meet the needs of tourists while they are travelling for leisure. Amenities include but are not limited to public food and beverage outlets, toilets, signage, information bays, visitor centres and telecommunications25. 4. Accommodation – Where visitors can stay? A proliferation of tourist accommodation from basic camping and backpacking to motels, hotels and farm stays are required to successfully cater to all traveller types25. Most Wheatbelt towns are small and unlikely to have large accommodation facilities. For the same reason, there is relatively little four and five star accommodation. 25 Tourism WA (2009), ‘Five A’s of Tourism’ Page 24 of 60
5. Awareness – How do visitors find out about the Region? Awareness in the form of marketing, digital presence and attitude of the local population and local tourism organisations are all necessary when interacting with tourists, to ensure the destination encapsulates a strong positive experience25. 5.2 Additional WDC A’s of Success In the preparation of this Growth Strategy, the Wheatbelt Development Commission recognised that Wheatbelt Tourism would benefit from two additional A’s for successful destination development. These are: 6. Activities – what can visitors do after they arrive Activities, as opposed to attractions, are interactive ventures or ‘things to do’ that encourage visitors to engage, explore and extend their stay in the Region. Activities include adventure sports, motorsports, water-based activities etc. 7. Ability – Governance capabilities Ability is the need to connect and build the capacity of tourism groups, operators and local governments across the Region to enhance efficiency and sustainability of governance, business acumen, and to mange seasonal fluctuations in the tourism industry. The following diagram represents the seven A’s of Wheatbelt Tourism success. 1. Attractions 7. 2. Ability Access 7 A's of Wheatbelt 6. Tourism 3. Activities Success Amenities 4. 5. Accommodation Awareness Page 25 of 60
6.0 Current Industry Profile Key Highlights: • Natural, built and heritage products (including Aboriginal heritage) are central to the Wheatbelt tourism industry • The tourism industry in the Wheatbelt is governed by a complex network of industry operators and organisations • After the SWOT analysis, key issues are defined according to the seven A’s of Wheatbelt tourism success Largely oriented around nature-based tourism, recreation and built heritage, the Wheatbelt has a variety of offerings; yet the vastness of the Region (154,862 km2), the extreme change in landscape from the coast to inland and the numerous disconnected micro businesses means it is a challenge to present the Region in a coordinated and clear way. 6.1 Wheatbelt Tourism Product A vast array of Wheatbelt tourism assets is attached in Appendix 1. These include first-tier icons of New Norcia, The Pinnacles, Wave Rock and Wildflowers Second-tier tourist attractions; • Trails; • Events; • Museums/discovery centres; • Recreational activities; • Nature hotspots; and • Transport infrastructure. It is also important to distinguish Wheatbelt tourism products in terms of the feelings they evoke, including authenticity, freedom and friendliness, wide open spaces, uncrowded and great value. Understanding these feelings assist in defining the Region’s visitor appeal. The diagram below is a compilation of words, feelings and descriptions elicited from Wheatbelt tourism industry stakeholders during meetings held for the drafting of this growth strategy. Page 26 of 60
The seven A’s of successful destination development have been used to analyse the Region’s four first-tier icons listed below. First-tier Icons Attraction Access Activities Amenities Accommodation Awareness Ability Wave Rock High Medium Medium Low Medium High Medium Pinnacles High High Medium Medium High High Medium New Norcia Medium High Medium Low Medium Medium Medium Wildflowers High Medium Low Low Low Medium Medium Wave Rock Maintains international visitor numbers but access and amenity are sub-optimal. Pinnacles Sound amenity infrastructure but lacks connection to surrounding activities. New Norcia A private operator with significant built heritage upkeep that is difficult to support with Government funding. The tourism industry may not necessarily suit New Norcia’s monastery operations. Wildflowers The Wheatbelt is a biodiversity hotspot with unique wildflowers but WA is no longer seen as the international/national wildflower destination. These products are at varying levels of maturity and require specific programs to ensure they remain international/national tourism icons. While these first-tier icons are recognised at an international level, their recognition on a domestic level serves as en-route destinations to other regions in Western Australia; Wave Rock is on the way to Esperance, the Pinnacles are on the way to Kalbarri and Ningaloo, and New Norcia and the Wildflowers are on the way to the Pilbara. The Wheatbelt South is also a major tourism route, on the way to Albany and the South West; however, it does not currently have an established iconic anchor to encourage visitors to stay. Page 27 of 60
6.2 Key Stakeholders The tourism industry in the Wheatbelt is a complicated maze of industry operators and organisations. The following diagram reflects the current structure and their interactions of the Wheatbelt tourism industry. Appendix 2 lists these stakeholder organisations. Page 28 of 60
6.3 Strengths, Weaknesses, Opportunities, Threats An analysis of the Wheatbelt’s strengths, weaknesses, opportunities and threats (SWOT) is important to gauge the current status of the Region’s tourism industry and what strategies may be best suited for its future growth. The SWOT below was compiled from both desk top research and in consultation with industry stakeholders including Tourism WA, Australia’s Golden Outback, Australia’s Coral Coast, Experience Perth and local regional tourism groups and organisations. Page 29 of 60
6.4 Key Issues The Wheatbelt’s key issues and gaps are outlined below, using the seven A’s of successful destination development: Attraction – what brings Access – how can visitors get Activities – what can visitors do Amenity- quality of the visitors to the Region to the Region after they arrive destination Key Issues Key Issues Key Issues Key Issues • Poor infrastructure around • Public transport gaps •Product packaging gaps • Poorly situated visitor facilities some • High reliance on self-drive •Disconnection between products along major routes internationally/nationally • Relatively low presence of that share location or activity • WIFI provision from operators recognised tourism icons/ bus tour operators relationships not widespread assets • Poor road and coach access • Inconsistent and disconnected • Some remaining • Small operators may be in some areas event promotion telecommunications signal gaps unable to afford to invest in • Some trails are tired and lack • Pressures increasing on infrastructure and interpretation sensitive environment and participate in marketing • Minimal Aboriginal interpretive cultural heritage and membership to experiences multiple organisations • Remote and environmentally sensitive product difficult to protect Accommodation – where visitors can Awareness – overall profile and brand for Ability –governance capabilities stay the Region Key Issues Key Issues Key Issues • Inconsistent quality, variety and • Confusing local, sub-regional and regional • Inconsistent visitor servicing (LGA vs. CRC vs. supply branding visitor centres/volunteers) • Minimal international standard • Duplication and uncoordinated digital • Confusing network of governing bodies accommodation marketing • Confusing and unclear governance structure • Lack of catered accommodation for • Low number of industry familiarisation tours • Lack of coordination and communication self-drivers not caravanning or • Lack of clarity of target markets between governing bodies camping • Inconsistent and varying levels of digital • Low level of capacity-building service • Lack of accommodation at short- professionalism, e.g. website presentation provision from State tourism organisations notice in peak season with large • Limited promotion of events, activities, • Lack of reliable statistical data at regional, distances between towns inhibiting accommodation and attractions sub-regional or LGA levels easy access to alternatives • Low levels of digital access and capacity in • Disconnected privately-owned micro operators parts of the Region Page 30 of 60
7.0 Wheatbelt Tourism Growth Priorities 7.1 Industry Vision An outward looking, well-integrated Wheatbelt tourism industry that is flexible, harnessing opportunities from existing and emerging markets 7.2 Target Considering the strength of the Wheatbelt’s existing self-drive, domestic market and the fact that international tourism expenditure has quadrupled over the previous decade and there is now significant private investment in tourism, this Strategy’s growth targets are: 1. To increase the value of industry from $245 million in 2015 to $301 million in 2020 2. To increase the number of jobs from 1,560 to 3,120 in 2020 3. To increase the average estimated visitor nights from 3.3 nights to 4.0 nights and maintain the number of overnight visitors In 2014/15, the Wheatbelt received a total of 676,700 overnight visitors both domestic and international. In the same year, there were a total of 2,265,700 estimated visitor nights. This equates to an average length of stay of 3.3 nights. In 2013, the Wheatbelt received a total of 666,800 visitors, with an expenditure of $245 million 26. This equates to an average of $367 expenditure per visitor. Please note, this strategy acknowledges it is comparing two different years of data for average length of stay and average expenditure per visitor. Due to the unavailability of consistent statistical information it assumes a visitor spends approximately $111 per day. This strategy aims to increase the average length of stay from 3.3 nights to 4 nights, whilst maintaining the total number of visitors. This would naturally increase each visitor’s expenditure to $445 per visitor and in turn increases the total visitor expenditure to $301 million per annum by 2020. The table below outlines these target outcomes. 2020 Target Outcome: • Total of 676,700 overnight visitors maintained • Average length of stay is 4 nights • Average expenditure per visitor increased from $367 to $445 • Total visitor expenditure increased by 23% to $301 million by 2020 26 Tourism Research Australia (2013), International and National Visitor Survey, Tourism Research Australia, Canberra Page 31 of 60
The 2020 Target Outcome has been designed with the following in mind: • Many iconic nature-based attractions in the Region have fragile environments and/or are Aboriginal sacred sites with cultural sensitivities; and • Marketing to increase the number of visitors and new markets to the Wheatbelt is cost prohibitive for small business and small tourism organisations. Until such time that a Wheatbelt-wide tourism organisation can utilise economies of scale for destination marketing, this strategy seeks to solely increase the nights stayed by existing visitors. Page 32 of 60
7.3 Growth Strategy Development Process In order to formulate a strategy embedded by local industry knowledge, experience and inspiration, the Wheatbelt Development Commission followed a series of steps including in-depth consultation with industry and stakeholders. SWOT*, ISBP# Stakeholder Strategy Project Desktop Research Consult with Options Analysis and Gap Consultation Development Review and Conception and Analysis Industry and Analyses Outline product Evaluation Phase Current industry Organisations Stakeholder Prioritisation profile Identification of identification and destination Evaluate the Identifying the Align with Evaluation and gaps in current priorities degree of impact need for tourism Review of tourism industry Consultation prioritisation of tourism market Development of this tourism value add product strategic with key tourism potential Identification planning growth strategy strategy has had Regional economic groups tourism product and analysis of to enable on the visitations and research on Feedback on Feedback from following high level industry plans Wheatbelt's overview of current and analysis of issues key tourism feedback from strengths and and attract tourism sector current product future trends and solutions groups stakeholders solutions investment * SWOT is the abbreviation for Strengths, Weaknesses, Opportunities and Threats. It’s a method adopted to assist in analysis. # ISBP is the abbreviation for Issues, Solution, Benefits, Proof. It’s a method adopted to assist in business planning. Page 33 of 60
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