Local Governments Engagement in Tourism
Transcription
Local Governments Engagement in Tourism
LOCAL GOVERNMENT’S ENGAGEMENT IN TOURISM Final Report July 2006 'OVERNMENT¬OF¬3OUTH¬!USTRALIA 3OUTH¬!USTRALIAN¬4OURISM¬#OMMISSION Local Government Association of South Australia South Australia. A Brilliant Blend. South Australia. A brilliant blend is the State’s new brand, embracing all that we have to offer. The concept has been developed following extensive research and planning by the South Australian Tourism Commission, in consultation with a wide range of other government agencies. South Australia. A brilliant blend builds on the State’s main strength—its wine reputation—without limiting its focus to wine. In fact, the new brand encapsulates South Australia’s diversity while being modern, creative and inspiring. It is a brand that all South Australians can be proud of and get behind. The new brand replaces Discover the Secrets of South Australia in the State’s tourism marketing campaigns, and will also be used by a range of other government agencies in promoting South Australia. South Australia. A brilliant blend marks the beginning of an exciting new era in marketing the State as a holiday and travel destination. We look forward to ensuring everyone discovers the ‘brilliant blend’ that is South Australia. For further information about South Australia. A brilliant blend: http://www.tourism.sa.gov.au/publications/Publications/PDFDocument/BrandSA_handbook.pdf For further information about the results of this survey: Ben Clark Policy and Planning South Australian Tourism Commission Ph: 8463 4598 Email: [email protected] Published by the South Australian Tourism Commission, Adelaide, South Australia © South Australian Tourism Commission, 2006 ISBN 0-9579506-4-0 Cover: Children at Port Willunga, © South Australian Tourism Commission This document may be cited as “South Australian Tourism Commission, 2006, Local Government’s Engagement in Tourism: Final Report, Adelaide, South Australia” This publication is printed on recycled paper Local Government’s Engagement in Tourism July 2006 Foreword South Australia’s tourism industry generated $3.7 billion in 2004/05, with significant employment benefits for the State. Besides the apparent economic impact, tourism can also be a catalyst for community development, bringing environmental, social and cultural benefits as well. As a dynamic and growing sector of the economy, tourism provides opportunities and presents challenges, particularly for Local Government, as the provider and manager of infrastructure and services so often utilised by visitors as well as residents. As the guardian of the ‘showroom’, Local Government often plays an important role in the overall visitor experience; therefore it is important to understand the issues this presents. In recognition of this, the South Australian Tourism Commission (SATC) and Local Government Association of South Australia (LGA) are forging a stronger partnership to help build sustainable tourism. This is intended to include a number of priority projects designed to improve the delivery of strategic tourism and economic development related initiatives for the benefit of Local Government and the tourism industry. The first of these projects is the Engagement in Tourism survey, which explored Local Government’s involvement in a wide range of areas relating to tourism, including the integration of tourism related responsibilities within council, strategic planning and implementing tourism strategies, as well as resourcing and assisting the industry in promotion and management of tourism. The survey response rate of 72 percent was itself a strong indicator of Local Government’s tourism engagement. Through highlighting strengths of Local Government, as well as areas for improvement, this survey provides a valuable tool from which to base decisions in building a sustainable tourism industry for South Australia. W T (Bill) Spurr CHIEF EXECUTIVE SOUTH AUSTRALIAN TOURISM COMMISSION Wendy Campana CHIEF EXECUTIVE LOCAL GOVERNMENT ASSOCIATION (SOUTH AUSTRALIA) South Australian Tourism Commission and Local Government Association i Local Government’s Engagement in Tourism July 2006 Executive Summary The inaugural Engagement in Tourism survey was initiated to provide a benchmark of Local Government performance in their tourism related responsibilities. In doing so, it intended to highlight strengths and areas for improvement. There were numerous positive findings from the survey, notably the unanimous agreement (amongst surveyed Councils) that tourism offered future economic development opportunities for their Council area. A majority also considered tourism to be a significant industry in their council area, and agreed they could play a more supportive role in tourism. The key strengths of Local Government’s tourism role that emerged from the survey were: − Council relationships with external stakeholders in its tourism related capacity, particularly Regional Marketing Associations, was perceived to be highly effective; − the high proportion of Councils that had incorporated tourism into their Strategic Management Plans, indicating acknowledgement that tourism is part of their broader strategic role, and − the support offered by Councils to their tourism industry, either directly eg. Events support, or indirectly, eg. maintenance of infrastructure and service provision. The areas for improvement for Local Government tourism engagement that arose from the survey were: − Councils internal coordination of tourism responsibilities ie. how Council organises its internal structure to facilitate its role in tourism; − the need for development of tourism strategies within Councils, and increased use of performance measurement to gauge the success of Councils tourism strategies and plans, and − resource provision for items of strategic importance, such as planning and regional marketing. These findings will inform the development of an LGA Tourism Policy and subsequent Tourism Strategy, in addition to providing a clearer understanding of where the issues, priorities and opportunities are for Local Government in relation to tourism. On request, each Council will be provided with a comparative analysis of their involvement in tourism against the State average, and the average for their particular tourism region, which will identify areas of excellence as well as those areas requiring further consideration. The response from Victorian Local Government to a similar survey, undertaken by Tourism Alliance Victoria, has been positive. Regional Councils in particular have improved the integration of tourism with other Council roles since the first survey. To help drive similar progress here, a series of actions have been developed to target key areas for improvement. To monitor change future surveys will be conducted at triennial intervals, with the next to be conducted in 2008. South Australian Tourism Commission and Local Government Association ii Local Government’s Engagement in Tourism July 2006 Table of Contents FOREWORD..............................................................................................................................................I EXECUTIVE SUMMARY ..........................................................................................................................II TABLE OF CONTENTS ..........................................................................................................................III LIST OF TABLES................................................................................................................................... IV LIST OF FIGURES ................................................................................................................................. IV 1. THE CHANGING NATURE OF TOURISM ...........................................................................................1 2. SUSTAINABLE TOURISM - THE ROLE FOR LOCAL GOVERNMENT .............................................4 2.1 WHAT DEFINES SUSTAINABLE TOURISM?..............................................................................................4 2.2 THE SOUTH AUSTRALIAN CONTEXT .....................................................................................................7 2.3 THE ROLE FOR LOCAL GOVERNMENT ..................................................................................................7 3. SURVEY METHODOLOGY................................................................................................................ 10 3.1 SURVEY OBJECTIVES ...................................................................................................................... 10 3.2 FOCUS GROUP ...............................................................................................................................10 3.3 SURVEY STRUCTURE ....................................................................................................................... 10 3.4 SURVEY ANALYSIS .......................................................................................................................... 11 4. RESULTS ........................................................................................................................................... 13 4.1 INTEGRATION .................................................................................................................................. 13 4.2 STRATEGIC PLANNING ..................................................................................................................... 18 4.3 EXTERNAL COORDINATION ............................................................................................................... 21 4.4 COMMITMENT ................................................................................................................................. 24 4.5 RESOURCE PROVISION..................................................................................................................... 29 4.6 INDUSTRY INVOLVEMENT .................................................................................................................. 38 5. CONCLUSIONS ................................................................................................................................. 43 APPENDIX A .......................................................................................................................................... 45 LOCAL GOVERNMENT ENGAGEMENT IN TOURISM SURVEY FORM ............................................................... 45 EXPENDITURE AREA .............................................................................................................................. 50 South Australian Tourism Commission and Local Government Association iii Local Government’s Engagement in Tourism July 2006 List of Tables Page Table 3.1 Categorisation of survey questions 12 Table 4.1 Respondent Councils by Tourism Region 14 Table 4.2 Five most identified Tourism themes and attributes 15 List of Figures Page Figure 1.1 Domestic visitation to Gateway destinations vs. Regional Australia (Dec. 2003 – Sept. 2005) Figure 2.1 2 The relationship between Sustainable Tourism, Nature-based tourism and Ecotourism 5 Figure 2.2 Local Government Areas in South Australia 9 Figure 4.1 Other Council Plans that feature Tourism 16 Figure 4.2 Aspects of tourism in Council Plans 17 Figure 4.3 Tourism in Council Structure 20 Figure 4.4 Number of Areas within Council with Tourism function 20 Figure 4.5 Council’s working relationship with external stakeholders 22 Figure 4.6 Organisations that Councils contribute to in a tourism-related capacity 23 Figure 4.7 Councils that employ staff with a focus on tourism 25 Figure 4.8 Volunteers assisting Council in a tourism-related capacity 25 Figure 4.9 Strategic Priorities for Councils 27 Figure 4.10 Service Priorities for Councils 28 Figure 4.11 Average financial investments relating to tourism (2003/04) 32 Figure 4.12 Expenditure on Tourism per Rateable Property ($) 33 Figure 4.13 Tourism Expenditure as a Percentage of Council’s Total Operating Expenses (2003/04) 33 Figure 4.14 Council’s expenditure on Staff (2003/04) 35 Figure 4.15 Council’s Total Contributions to Tourism Organisations (2003/04) 35 Figure 4.16 Total Expenditure of Councils on Visitor Information Centres (2003/04) 36 Figure 4.17 Total Expenditure on Tourism Works – Infrastructure (2003/04) 37 South Australian Tourism Commission and Local Government Association iv Local Government’s Engagement in Tourism July 2006 1. The changing nature of tourism As a dynamic, growing industry, tourism can make a positive contribution to economic development. In the Australian context, tourism contributes approximately seven percent of Gross National Product (GNP) and employs roughly 550,000 workers. International arrivals are forecast to grow by 5.6 percent per annum to 9m by 2014, whilst domestic tourism (Australians travelling within Australia) is expected to grow at 0.9 percent annually (Tourism Australia, 2005b). Whilst the growth predictions appear promising, recent trends suggest this will not automatically translate to increased travel across the nation. The trends indicate a steady decline in domestic leisure travel, which comprises the majority of tourism within Australia, with regional areas being worst affected. The industry is faced with several significant challenges, particularly within the domestic leisure travel segment, that will influence the extent of tourism growth (and in some cases, decline): − Higher levels of personal and household debt (housing debt particularly among Sydney and Melbourne residents and credit card debt generally); − Changing household consumption patterns (with increases in areas such as Communications, Household Goods, Furnishings and Health); − A decline in the affordability and competitiveness of domestic travel (appears to be most pertinent for young singles and older non-working people); − Leakage from domestic to outbound holidays (particularly among young and midlife singles and couples along with residents of Sydney and Melbourne); and − Changes to the labour market making domestic travel more difficult (includes increased casualisation of the workforce and continuing long working hours). (Tourism Research Australia, 2005a, p1) Additional factors that are particularly affecting South Australia as a destination include the emergence of low cost airlines, such as Jetstar, offering cheap city-to-city flights, and the increasing price of petrol. Both these pricing pressures discourage long touring holidays and make flying to a destination relatively more attractive, particularly for short break holidays. This has led to a significant decline in visitation for regional areas, with remote areas being particularly hard-hit (Figure 1.1 illustrates this trend over the two years to September 2005). South Australian Tourism Commission and Local Government Association 1 Local Government’s Engagement in Tourism July 2006 Figure 1.1 – Domestic visitation to Gateway destinations vs. Regional Australia (Dec. 2003 – Sept. 2005) Source: National Visitor Survey, 2005 The majority of these factors seem likely to persist at least in the medium term, which may result in the competitiveness of the sector continuing to deteriorate. Therefore it is imperative that regions think critically about their tourism offering, and how it relates to the experience sought after by their target market. 1 This South Australian Strategic Plan Tourism Implementation Action Plan outlined five Critical Success Factors that must be addressed if the tourism industry is to achieve the SASP tourism target (T1.13— increasing visitor expenditure from $3.4 billion in 2001 to $5 billion in 2008). Of these factors, three are considered most relevant to Local Government: SA Brand The recent development of the collegiate South Australia. A brilliant blend brand is one of the keys to positioning the State in the global marketplace. This collegiate approach involves each of the regions reinforcing the brand through all their promotion, as well as key State agencies with an interstate or international presence (eg. PIRSA, Arts SA). Product Development 2 Like any business sector, tourism cannot market static product in a highly competitive and changing marketplace. The SA Brand must be strengthened by fresh and exciting experiences, holiday ‘product’ and events to keep pace with interstate and international competitors. 1 2 Copies of this document will be made available on request ‘Product’ in the tourism sense is broadly defined as the facilities (eg. accommodation) and services (eg. cultural tours, restaurants) that facilitate tourism experiences, for which the visitor generally pays for. South Australian Tourism Commission and Local Government Association 2 Local Government’s Engagement in Tourism July 2006 Positive Policy Framework There is a need for a far more positive policy framework where the ‘rules’ (ie. Council Development Plans) are aligned with the vision for tourism. This is particularly evident than in the area of naturebased tourism, as policy has tended to discourage tourism development in high quality natural settings. This is a problem because experience of nature is a major motivator for travel however, research clearly shows that SA is the State least associated with having nature experiences. This can be attributed to the paucity of iconic products that facilitate the experience of nature, which perpetuates a perception that the State lacks high quality natural settings. The South Australian Tourism Plan 2003-2008, the Sustainable Tourism Package, Regional Strategic Planning for Tourism program and the Design Guidelines for Sustainable Tourism Development have all 3 been designed to help address this situation in an environmentally responsible manner . In addition to these three, the two remaining critical success factors are increased Air Access (particularly direct inbound flights) and Industry Maturity (reducing the reliance of the industry on Government ie. SATC) in terms of capacity building. None of these five critical success factors can be addressed in isolation if South Australia’s tourism industry is to compete internationally and grow market share. Their inter-dependency means they must be tackled together and in a collaborative manner by those partners with a role in tourism. As one of these partners, Local Government has a vital role to play, as outlined in Section 2. 3 Hard copies of each of these documents can be provided on request, or electronic copies can be accessed via http://www.tourism.sa.gov.au/tourism/default.asp South Australian Tourism Commission and Local Government Association 3 Local Government’s Engagement in Tourism July 2006 2. Sustainable Tourism - the role for Local Government The travel and tourism industry has undergone significant changes in the past century, particularly with the introduction of affordable air travel. Over the same timeframe, there have been significant changes to the global environment. This has caused a realisation that we need to reconsider how we live if we are to minimise the scale and rate of these changes. Whilst it is often hard to distinguish the impacts of tourism from those of the general service economy, there is a move to better manage the impacts that are apparent and understand those that are less obvious (Brown, 1998, p.50). Areas where tourism's impact can be distinguished include visitor attractions, passenger transport and accommodation whilst the less obvious ones may include development pressure and biodiversity loss. The world's tourism industry leaders recognise that tourism, like any industry, can have environmental (and social) impacts and have instilled sustainability as a key goal for the industry. Local Government, through the provision of infrastructure and services, often used by visitors as well as residents, has an important role to play in helping the tourism industry attain this goal. The adoption of a sustainability framework in Council practice: from essential services, such as waste management, to higher level strategic direction, eg. planning policy that supports sustainable tourism development, can make a significant difference to the localised impacts of tourism. 2.1 What defines sustainable tourism? Various definitions of sustainable tourism have been promulgated by various tourism organisations and institutions, some of which portrayed it as a niche segment within the overall tourism market— mistakenly confusing it with ecotourism. The overarching objective for sustainable tourism is to make all tourism sustainable, whether it be small-scale ecotourism or high-volume hotels or tour operators. Sustainable tourism is based on the principles for sustainable development, and is simply defined by the World Tourism Organisation (WTO) as tourism that: “meets the present needs of tourists and host regions while protecting and enhancing opportunities for the future. It is envisaged as leading to management of all resources in such a way that economic, social and aesthetic needs can be fulfilled while maintaining cultural integrity, essential ecological processes, biological diversity and life support systems.” World Tourism Organisation, 2003 The terms ‘sustainable tourism’, ‘nature-based tourism’ and ‘ecotourism’ are often used interchangeably however they are not the same. As shown in Figure 2.1, sustainable tourism is concerned with making the entire tourism industry sustainable, whilst the latter two are segments of the broader tourism market that primarily offer experiences in a relatively natural setting. South Australian Tourism Commission and Local Government Association 4 Local Government’s Engagement in Tourism Figure 2.1 July 2006 The relationship between Sustainable Tourism, Nature-based tourism and Ecotourism The concept of sustainability lies at the heart of the South Australian Tourism Plan 2003-2008. The Sustainable Tourism Package, comprising 16 aligned projects and initiatives to help the industry move toward sustainability, is guided by twelve clear principles, based on the Triple Bottom Line (i.e. on economic, social and environmental indicators). These are outlined below: 1) Being different Achieving a clear sense of difference from other competing destinations. This can be achieved by basing tourism development and marketing on the inherent attributes and strengths of the destination. 2) Achieving authenticity The attractions most likely to be successful, and those with the greatest enduring appeal, are those which are genuinely relevant to the history, industry, culture lifestyle and natural resources of the region. 3) Reflecting community values The most effective way to ensure authenticity is to understand, conserve and enhance the values of the community. This means representing the past, present and future aspirations of the local community in a living and dynamic way, rather than ‘embalming’ the past. 4) Understanding and targeting the market Understanding the broad market trends and the needs of specific segment(s) is critical. This involves the development of specialised products based on the inherent attributes of an area. South Australian Tourism Commission and Local Government Association 5 Local Government’s Engagement in Tourism 5) July 2006 Enhancing the experience People’s motivation for travel is ‘change’ - to seek something they cannot experience at home. The ‘bundling’ of attributes enhances the appeal of a place, and the likelihood of visitation. This achieves a greater choice of accessible things for the visitor to see and do and a greater critical mass for economic viability. 6) Adding value This can include small to medium scale accommodation facilities, small-scale sales outlets, eating and other hospitality services in association with established industries (e.g. wine growing, aquaculture, food production etc). This adds to the experience of visitors and helps to diversify the local economy. 7) Respecting natural and cultural values Sustainable tourism development derives its form, character, operation and appeal from these qualities, and in doing so adds to the special nature of the destination. Tourism should also aim to reduce its ‘ecological footprint’, where practical, in terms of resource use and other broader impacts. 8) Achieving conservation outcomes A mutually beneficial alliance can be achieved between the economics of tourism and conservation. That is, through understanding and enjoyment comes greater appreciation and empathy, advocacy and protection for the resource. 9) Having good ‘content’ (‘telling the story’) Tourism development can interpret (present and explain) natural, social, historic and ecological features. Telling the story provides a rewarding experience for the visitor and helps conserve the destination. 10) Achieving excellence and innovation in design Good design respects the resource, achieves conservation outcomes, reflects community values, and is instrumental in telling the story. It should also invoke an emotional response from the visitor by creating a relatively authentic experience. 11) Providing mutual benefits to visitors and hosts Tourism is primarily encouraged as an economic and community development tool. It is not encouraged for its own sake. For tourism to be successful, it must take into account the benefits that both the host community and the visitor seek. Only when the local community is a willing host is tourism likely to present a welcoming face, grow and be sustainable. 12) Building local capacity Successful tourism businesses are not isolated from their community but collaborate with other businesses and stakeholders to build a positive and self-sufficient capacity within the destination and beyond. South Australian Tourism Commission and Local Government Association 6 Local Government’s Engagement in Tourism July 2006 2.2 The South Australian context Local Government in South Australia has undergone significant structural change over the past decade, which is evidenced in the amalgamations of many Councils, resulting in a reduction from 121 in 1996 to the current 68. A map indicating Local Government boundaries at the time of this report is provided as Figure 2.2. Over that time Councils have become responsible for a variety of functions that were traditionally handled at the State or Federal level. This has arisen from a number of factors, including raised community expectations and legislative changes. With diminishing resources and a limited revenue base, Councils are increasingly aware of applying a strategic focus to spending priorities, seeking to direct resources where they will produce the most benefit for their community. In some cases this may include projects beyond their immediate boundaries, for a regionally significant investment. This is supported at the Federal level, where Government funding has increasingly been tied to regional outcomes, and at the State level, which has sought alignment of Local policies to the State Strategic Plan objectives. The recent report commissioned by the LGA, ‘Rising To The Challenge: Towards Financially Sustainable Local Government in South Australia’, highlighted that Councils have some strategic decisions to make regarding financial governance and asset management. The implications of this for local government in tourism will be discussed as part of the analysis of questions relating to resource commitment (Section 4.5). 2.3 The role for Local Government Many governments around the world have sought, to varying degrees, to instil sustainability within their tourism sector. Much of this effort has been driven from a national, state or regional level, however the involvement of local government is critical given the influence that their functions, such as land-use planning and environmental regulation, can have on the sector (WTO, 2005, p.23). Maintaining and projecting an attractive tourism destination is largely dependent on three factors: positive destination image and experience, safety and security, and, fundamentally, the overall environmental quality. On this basis, the role of local government can have a profound influence on the success of its local tourism industry, and plays a part in conserving the very asset on which it’s future depends. The considerable interaction between the visitor, tourism operators, as well as the environment and host community, also provides opportunities for local government to contribute to sustainable tourism. Unlike most industries, tourism can raise the awareness of sustainability issues, for both visitors and hosts. For visitors, this can often influence their behaviour on return to ‘everyday’ life, while for hosts; it can instil a desire to improve on current practices (WTO, 2005, p.9). The increase in devolved responsibility, particularly in areas such as environmental management, aged care services, and community programs, has placed additional pressures on Council resources. Many local governments have also broadened their responsibility in the area of economic development, with South Australian Tourism Commission and Local Government Association 7 Local Government’s Engagement in Tourism July 2006 tourism seen as a catalyst for growth. In terms of tourism management, there is a small, but growing, body of research on the performance of Local Government. In Australia, this includes Visitor Information Centre data, various management models, and the Victorian model ‘Local Government Health Check’, on which this survey is based. Research indicates that the role of Local Government as a player in facilitating sustainable tourism broadly involves: − Strategic Planning − Marketing and Promotion − Data Collection (largely through Visitor Information Centres) − Sponsorship − Economic Development − Visitor Services − Development Control (Zoning through Development Plans, By-laws) − Public land management − Capacity Building for Community Managing these roles requires collaboration with operators in the industry, community, visitors and allied public sector agencies, such as State Tourism Organisations and Economic Development Boards. Local Government’s capacity to provide for tourism—as a land use and an activity—whilst managing it sustainably, will be affected by a number of issues, including: isolation, resources (financial and physical), community acceptance and governance. The intent of this survey has been to identify where these issues are, or might be, hindering existing and future tourism within a region. South Australian Tourism Commission and Local Government Association 8 Local Government’s Engagement in Tourism Figure 2.2 July 2006 Local Government Areas of South Australia Source: Australian Local Government Association, 2006 South Australian Tourism Commission and Local Government Association 9 Local Government’s Engagement in Tourism July 2006 3. Survey Methodology As mentioned previously, the survey draws on earlier work undertaken by the Country Victoria Tourism Council—the Local Government Tourism Health Check—that commenced in 2002 and was repeated in 2005. This has been positively received by Local Government, with many Councils achieving measurable improvement over the subsequent three year period. The survey was adapted for South Australia and forwarded to all Councils, requesting that the CEO either complete the form or review it prior to lodgement so that the response was reflective of Council’s position, rather than that of one officer. 3.1 Survey Objectives The survey was conducted with three objectives in mind: − Establish a range of indicators relevant to Local Government engagement in tourism; − Provide a benchmark of current resourcing and policy development, which can be measured over time, and − Identify Local Government’s tourism strengths as well as opportunities and priorities for enhancement of tourism capacity. These findings are expected to inform the development of a clearer LGA Tourism Policy and subsequent Local Government Tourism Strategy. The findings will also assist the SATC, through the Integrated Regional Strategic Tourism Planning process currently being undertaken through a partnership between the SATC and regional Councils. 3.2 Focus Group During 2004, a trial survey was tested on a focus group, consisting of seven Councils from metropolitan and regional South Australia. The feedback received as part of this process was instructive in adapting the survey for broader dissemination. Councils were selected on the basis of perceived level of tourism engagement, which included: • Whether they have a tourism plan or if tourism is a key part of Council’s Strategic Management Plan • Whether they have a tourism officer • Inclusion of ‘tourism’ as a key part of Council website • Their relationship with regional tourism groups 3.3 Survey Structure The format was derived from the Local Government Tourism Health Check, and at the pilot stage, closely resembled it in content. Following the outcomes from the pilot, a number of refinements were made, with the survey ending up being 20 questions (the final version is provided as Appendix A). South Australian Tourism Commission and Local Government Association 10 Local Government’s Engagement in Tourism July 2006 Based on the capacity dimensions identified in Section 2.4. A series of questions were used to indicate the performance relative to each, as identified in Table 1.1 (overleaf). 3.4 Survey Analysis For the purpose of analysing the findings of this survey, six areas of influence (also referred to as capacity dimensions) within the structure of Local Government have been identified: I Integration (within Council) S Strategic Planning E External Coordination (with Stakeholders and Industry) C Commitment to Implementation R Resource provision N Industry involvement Each of the questions has been allocated to one of the dimensions (refer Table 3.1, overleaf), and is consistent with the categories used in the Victorian model, which will allow for a degree of comparability. Questions 1, 9, 12 and 15 asked Councils to rank, from 1 to 5, their level of agreement or priority on a particular issue or their role in tourism relative to their Council area. In all cases a score of one was the lowest possible ranking with three indicating neutrality and five being the highest. There were several questions that did not fit neatly into the six defined categories, but which provided valuable qualitative information about how Council perceives tourism as an industry in its area. The analyses of these questions have been included in the categories to which they are most relevant. South Australian Tourism Commission and Local Government Association 11 Local Government’s Engagement in Tourism July 2006 Table 3.1 – Categorisation of survey questions Capacity dimension Question I Integration 1v. Tourism is a priority industry for Council; 1vi. Coordination of tourism responsibilities within Council; 1a and b The key tourism themes and attributes within the Council area 6. Incorporation of tourism into Council’s Strategic Management Plan; 7. Other Council plans that feature tourism; and 8. Aspects of tourism covered in Council plan/s. S Strategic Planning 1ii. Tourism offers future economic development opportunities; 1i. and iii Tourism significance - net positive or net negative impact for Council; 2.Whether Council has a tourism plan or strategy; 2a. When Tourism Plan was developed and last updated; 3. Is Council associated with any other Tourism Plan? 9i. Council promotes the concept of sustainable tourism development; 9ii. Council’s Development Plan encourages sustainable tourism development; and 10. Where tourism fits into Council’s organisational structure. E External Coordination 12. Effectiveness of Council’s working relationship with tourism/development organisations; and 13. Tourism/ economic development organisations Council contributes to; C Commitment 5. Performance measurement for the Tourism Plan/s; 11. Whether Council employs staff with tourism focus; 14c. Whether Council coordinates major events or festivals; and 15. Council’s priorities with respect to its role in tourism. R Resource provision 1iv. Tourism is a burden on Council resources; 11. Staff numbers (Full-time, Part-time, and volunteers); 13. Council contributions to tourism related bodies; and 16. Total Tourism Budget - relative to Council population. N Industry involvement 14. Council assistance to tourism industry; 14a. Types of assistance offered by Council; 14b. Industry uptake of assistance in past year; 17. What Council considers to be the major benefits of tourism in its area 18. Major problems or issues that tourism presents to Council 19a. How Council could better support tourism, and 19b. Ways to overcome these barriers South Australian Tourism Commission and Local Government Association 12 Local Government’s Engagement in Tourism July 2006 4. Results The survey was conducted over 3 months, from March to June, to allow Councils adequate time to compile their responses, recognising that for many a number of staff would need to be involved. The overall response rate was 72 percent (49 of 68 Councils) with a breakdown of 60 percent of metropolitan and 75 percent of regional Councils responding. This was in line with expectations, based on the response rate for the recent Victorian survey (2005), which was 80 percent, with regional Councils at 87.5 percent: both these rates have increased from previous surveys. It is hoped that future South Australian surveys will see a similar increase as this, in itself, is an indicator of Local Government’s engagement in tourism. To ensure the confidentiality of results for individual Councils, the survey findings are reported in the aggregate, with no Councils individually identified. As part of the next stage of reporting, participant Councils can request a summarised version of their results against State and regional averages. To maintain confidentiality, where less than three Councils have responded for a region, regional results will not be provided (this applies to the Adelaide Hills and Kangaroo Island regions). As identified in Table 3.1, the questions are grouped according to the relevant capacity dimension, rather than in sequential order, to allow performance for each indicator to be benchmarked. 4.1 Integration This indicator looks at the level of integration within Councils with respect to tourism – from their perception of the industry as a priority to the incorporation of tourism within key Council plans. This is an important dimension of tourism capacity as it demonstrates a strategic view of the industry, rather than narrowing its focus to a single officer or unit. Perception of Tourism (Q 1.v) Councils were asked to rate the extent to which they considered tourism to be a priority industry within their area, on a ‘level of agreement’ scale of one to five (with one being strongly disagree, three being neutral and five being strongly agree). A majority of Councils (65%) agreed, (ie. considered tourism to 4 be a priority) with only a minority (14%) disagreeing (ie. did not consider tourism to be a priority). Coordination of Tourism within Council (Q 1.vi) Only 47 percent agreed that there was good coordination of tourism responsibilities within their Council. With a third of Councils neutral, and 20 percent disagreeing, there is a requirement for education on what constitutes best practice in this regard. Responses on the extent to which tourism is covered in Councils’ plans do however suggest a greater level of coordination than the response to this question (refer below for analysis of questions 6 through 8). 4 References to agreed are inclusive of ‘agreed and strongly agreed’ and vice versa for disagreed. South Australian Tourism Commission and Local Government Association 13 Local Government’s Engagement in Tourism July 2006 Table 4.1 – Respondent Councils by Tourism Region Region Council Adelaide Adelaide Campbelltown Charles Sturt Holdfast Bay Norwood Payneham and St Peters Mitcham Port Adelaide Salisbury Tea Tree Gully Walkerville Adelaide Hills Barossa Gawler Light Regional Clare and Gilbert Valleys Goyder Mallala# Wakefield# Ceduna Cleve Franklin Harbour Le Hunte Port Lincoln Tumby Bay Whyalla Alexandrina Onkaparinga Victor Harbor Flinders Ranges Mt Remarkable Northern Areas Orroroo Carrieton Outback Areas^ Peterborough Kangaroo Island Coorong# Grant Kingston Mount Gambier Robe Tatiara Coorong# Mid-Murray Southern Mallee Berri Barmera Loxton Waikerie Mid-Murray Renmark Paringa Copper Coast Barunga West Mallala# Wakefield# Yorke Peninsula Adelaide Hills Barossa Clare Valley Eyre Peninsula Fleurieu Peninsula Flinders and Outback Kangaroo Island Limestone Coast Murraylands Riverland Yorke Peninsula Response Rate (%) 67 50 100 100 64 75 71 100 78 60 100 100 # - Councils represented in more than one tourism region ^ - Outback Areas is not a Council under the auspices of the Local Government Act 1999, but a statutory authority administered by the State. South Australian Tourism Commission and Local Government Association 14 Local Government’s Engagement in Tourism July 2006 What Councils consider are the key tourism themes and attributes within their area (Q.1a and 1b) This question was posed as a reference-check against themes identified in Regional Marketing Strategies, and may be used as part of SWOT analysis for future strategic planning. The five most commonly identified themes and attributes are noted below: Table 4.2 –Five most identified Tourism themes and attributes Theme No. Attribute No. Heritage 24 Coast 13 Coast 20 National Parks 12 Food 18 Heritage 12 Wine 15 Wine 10 Environment 10 Museum 9 It is significant to note that while the coast, environment and National Parks all rated strongly, these are elements of the South Australian experience that are not well recognised by interstate markets5. Also of note is that Trails, Boating and Walking also received a high number of responses. Incorporation into Council Plans (Q 6 through 8) There are three questions relating to tourism in Council plans or strategic documents. This section deals with broader Council plans whereas the following section (4.2) examines tourism-specific plans and development plans. Tourism has been comprehensively incorporated into the Strategic Management Plans of 14 Councils (29%) and to some extent in 32 Councils (65%). Taken as an aggregate (94%), this indicates a high level of acknowledgement of tourism as part of Council’s broader responsibilities. There were 20 Councils (41%) with plans other than the Strategic Management Plan in which tourism is featured (discussed in detail under Section 4.2), as well as 11 Councils with stand-alone tourism plans (and five that were developing theirs). Encouragingly, all but two of the 15 Councils that have, or are developing, tourism-specific plans had tourism featured in at least one other Council Plan. Of the 20 Councils that had other plans featuring tourism (besides the Strategic Management Plan), the majority were found in Business and Corporate Plans, as illustrated in Figure 4.1 (overleaf). Plans listed under ‘Other’ included site-specific management plans where tourism was a key issue, such as Visitor Information Centres (VIC). Interestingly, 16 of the 20 Councils did not have a tourism-specific plan. Only one Council did not mention tourism in any form of plan. On face value, this would suggest that Councils recognise tourism as part of their broader responsibilities, as evidenced by almost universal 5 As part of the regular Brand Health Study undertaken by the SATC, focus groups in Melbourne and Sydney are asked to rank each state on their relative strength on key themes. For Coastal and Nature-based experiences (two separate themes) SA is ranked last and second last, respectively, with considerably lower recognition than ‘top of mind’ states, such as Queensland and New South Wales. South Australian Tourism Commission and Local Government Association 15 Local Government’s Engagement in Tourism July 2006 incorporation of tourism in at least one strategic document. It does bear mention, however, that there has been no measurement of the quality of these inclusions (ie. tourism might only be referenced once or it may not give the necessary direction required). Figure 4.1 - Other Council Plans that feature Tourism Number 10 8 6 4 2 O th er VI In C fra st ru ct ur e R ec re at io C n ul tu ra lP la n Ev en ts C om m un it y Bu si ne ss C or po ra te Ec on .D ev t 0 Council Plans Aspects of Tourism in Council Plans (Q.8) In asking what aspects of tourism were covered in Council plans, it was intended to gain a clearer understanding of what Local Government perceives as its major responsibilities in planning for tourism. Of the nine options presented, there are four areas that recorded a majority (>50%) response: − Working with Tourism Partners – 65% − Development Opportunities – 61% − Infrastructure – 61%, and − Marketing – 57% Refer Figure 4.2 for results on the remaining five categories. These correlate closely with the responses for question 15 (analysed in Section 4.3), where Councils identified their tourism priorities (although it is noted that the categories aren’t completely identical). In 6 question 15, Councils identified infrastructure, positive planning policies and liaison with Regional Marketing Associations as their three highest priorities. A majority of Councils (55%) identified marketing as a priority, which was similar to those that included it in their plans (57%). As a subjective response, the survey does not provide a benchmark of the quality or consistency of the work that Councils undertake (ie. relative to the State or regional tourism direction). 6 For the purposes of cross-referencing, Development Opportunities and Policy are considered to be similar in that both are likely to be included within Council Development Plans and related Strategic Plans. South Australian Tourism Commission and Local Government Association 16 Local Government’s Engagement in Tourism July 2006 r th e O y or pp to en W In fra st ru ct ur e m el op ev D lic en Ev d an iv st Fe Po ts t en al s M an ag em to r M ar ke tin Vi si tu ni (A tie m s en or ki iti ng es ,p w ith ar ks to ) ur is m pa rtn er s At tra ct io ns 35 30 25 20 15 10 5 0 g Number of Plans Figure 4.2 - Aspects of tourism in Council Plans Key findings a) While a majority of Councils (65%) agreed that tourism is a priority industry within their area, less than half (47%) of Councils considered their coordination of tourism responsibilities to be ‘good’. Action: Informing Councils that recorded a negative or neutral response to question 1vi about what constitutes ‘best-practice’ in terms of coordination of tourism responsibilities. b) The extent to which tourism is covered in Council plans—94% have incorporated it into their Strategic Management Plans, and 41% include it in other plans—suggest that it is ‘on the radar’ for most Councils. Action: Assisting Councils that have not incorporated tourism comprehensively into their Strategic Management Plans when these are next reviewed. c) Tourism has been incorporated, either comprehensively or to some extent, in the Strategic Management Plans of 46 Councils (94%) Action: Establish criteria for what constitutes ‘comprehensive’ and ‘to some extent’ incorporation of tourism in Strategic Management Plans. Audit a selection of plans to determine whether Council perceptions match criteria. Strong Performers − Alexandrina − Barossa − Holdfast Bay − Port Adelaide Enfield South Australian Tourism Commission and Local Government Association 17 Local Government’s Engagement in Tourism July 2006 4.2 Strategic Planning This refers to the degree of long-term planning (ie. beyond the immediate financial year), which Councils have dedicated to tourism. This is firstly gauged through the perception that Councils have of the opportunities tourism offers, as well as the current net impact, before exploring the content of plans that influence tourism development and management. Tourism as an opportunity (Q.1ii) Councils unanimously agreed, with 57 percent strongly agreeing, that the tourism industry offered future economic development opportunities within their area. In terms of the current impact tourism has on Council resources, only 24 percent considered tourism to be a burden with a further 30 percent considering the impact on Council resources to be neutral. Economic impact of Tourism (Q.1.i, iii and iv) There were three questions seeking to gauge Council’s perception of the net economic impact of tourism within their Council areas and specifically on their resources. The first question was phrased to ascertain whether Council considered tourism to already be significant within their area, and if so, whether it had a positive impact. The response to this was considered to be positive, with 73 percent agreement, and only 16 percent disagreement. By slightly rephrasing the question and asking Councils whether tourism was perceived to have a net negative impact it was intended to see whether the response rate differed. In this regard, a similar rate of support was recorded—with 76 percent disagreement—however it is notable that only one council considered tourism to have a negative impact. Taken together, these results indicate a general acknowledgement that tourism is a positive force within the majority of Councils that responded. In terms of whether tourism presented a burden to Councils, the response was mixed, with 45 percent considering it did not, 31 percent neutral and 24 percent considering it did. This indicates that despite many Councils perceiving their resources to be burdened, they could see the broader benefits of tourism for the businesses in their area. Proportion of Councils with Tourism-specific Plans (Q.2) Eleven Councils (22%) have a Tourism Plan or Strategy, with a further four Councils (10%) developing one at the time of the survey. Whilst this leaves the majority (69%) with no tourism-specific plan, it is encouraging that almost half of these have plans other than the Strategic Management Plan that do feature tourism. By comparison, 68 percent of Victorian Councils claimed to have tourism strategies. Twenty percent of Councils are also associated with other Tourism Plans (excluding Regional Marketing 7 Plans but including completed Integrated Regional Strategic Tourism Plans ). 7 At the time of survey, only the Clare and Barossa IRSTP had been completed. South Australian Tourism Commission and Local Government Association 18 Local Government’s Engagement in Tourism July 2006 Of the 11 Councils that had developed Tourism Plans, all but one had reviewed it within the past three years. Three years was used as a benchmark, given its widespread acceptance as a timeframe for strategic planning purposes. Whether Council’s Development Plan encourages sustainable tourism development (Q.9 i and ii.) This question asked Councils whether they considered they promoted the concept of sustainable tourism development, to which 73 percent agreed, however only 63 percent felt this was reinforced through the Council’s Development Plan. Amongst Victorian Councils, where the question was phrased — ‘whether Council supported the concept of sustainable tourism management’ — there was only 53 8 percent agreement . There was a notable degree of neutrality on these questions, with 25 percent considering their Council neither promoted nor discouraged sustainable tourism development. Twenty-seven percent considered their Development Plan neither promoted nor discouraged sustainable tourism development. Only one Council stated that it did not promote sustainable tourism development, however four considered their Development Plans did not encourage sustainable tourism development (of these, three were regional Councils). Again, as a subjective response, the Councils are likely to have varying perceptions of what ‘sustainable tourism development’ actually entails. In many cases it is not until a best-practice tourism development actually ‘tests’ the Plan that this can be adequately determined. One of the purposes of the Integrated Regional Strategic Planning process is to ensure clarity in the Development Plan (as it relates to tourism), by identifying the region’s likely tourism product, and the planning provisions necessary to encourage those forms of development, in a sustainable manner. Where tourism fits into Council’s organisational structure (Q.10) The importance of tourism to a Council, and the level of integration with broader Council strategy and policy can be partly gleaned by where it is located within the organisational structure. The formation of a dedicated tourism unit, or a formal Council committee, are taken as indicators of high strategic value. The inclusion in Economic Development Units is also considered an indication of high value, due to the commonality of objectives and outcomes. Incorporation within the Visitor Information Centres is considered a medium indicator, as it implies a greater focus on services rather than strategy. That said, it is nonetheless important that Council provides some level of visitor service. When analysing the results (refer Figure 4.3) it must be remembered that just over half the Councils surveyed have tourism represented in more than one area, with only four having no tourism representation at all (as shown on Figure 4.4). At first glance, it would appear that Visitor Information Centres (n=16) are the favoured unit within Councils for tourism. However, when looking at the combination of Tourism Unit, Economic Development and Council Committee (n=19) it is apparent that tourism is given high priority within a number of Councils. The listings under ‘Other’ are also indicative of a medium priority for tourism, with 8 The Victorian survey did not include a question relating to their Development Plan equivalent – the Municipal Planning Scheme. South Australian Tourism Commission and Local Government Association 19 Local Government’s Engagement in Tourism July 2006 many of these including part-funding of regional tourism development officer positions, representation on regional tourism committees, and Community Services Departments. Number of Councils Figure 4.3 - Tourism in Council Structure 20 15 10 5 0 it it e a /s nt Un Un itte tre are me n n m p d m e o s e m lo ati tifi uri ve nC Co en cre To tio De cil d e a i n c R ou mi No orm rk/ no lC Inf Pa o a r c E rm ito Fo Vis r he Ot Area within Council Structure Number of Councils Figure 4.4 - Number of Areas within Council with Tourism function 25 20 15 10 5 0 None One Two South Australian Tourism Commission and Local Government Association Three Four 20 Local Government’s Engagement in Tourism July 2006 Key findings d) The unanimous agreement amongst Councils that tourism offered future economic development opportunities, and that only one Council considered tourism to have a net negative impact on their area is very positive. Action: None required e) Almost a third of Councils have, or are developing, tourism-specific plans, whilst almost half of those without such plans had tourism featured in at least one other plan besides the Strategic Management Plan. This indicates a high level of strategic planning for tourism. Action: Assist Councils of tourism significance that are currently without tourism-specific plans to develop one, or at least feature it in one other Council plan. f) The high degree of neutrality on whether Council’s Development Plan supports sustainable tourism development indicates there may be a need for education on what sustainable tourism actually entails. This is a key objective of the Integrated Regional Strategic Tourism Planning process. Action: Informing Councils that recorded a negative or neutral response to question 9b about what sustainable tourism entails and how it can be incorporated into their Development Plans. Action: Auditing the effectiveness of a selection of current planning provisions against regional and State tourism direction. Action: Encourage Councils to incorporate principles from Design Guidelines for Sustainable Tourism Development as part of their Development Plan. g) Less than half of Councils have tourism incorporated as a ‘high’ priority within their structure (ie. Tourism Unit or Council committee), however a majority of the remainder have incorporated it as a ‘medium’ priority (VIC or part-funding regional tourism staff). Action: Through the Integrated Regional Strategic Tourism Planning process, encourage Councils to accord tourism a ‘high’ priority within their organisational structures. Strong Performers − Alexandrina − Ceduna − Holdfast − Light − Mid-Murray − Robe 4.3 External Coordination Effectiveness of working relationship with external organisations (Q.12) Council’s working relationships with external tourism and development organisations is considered to be an important indicator of the coordination of its tourism role on a broader scale. Of the four organisations listed, a majority of Councils considered their working relationship to be most effective with the authorities that functioned at a regional scale – Regional Marketing Associations and Development Boards. The effectiveness of Councils relationships with the remaining two—Local South Australian Tourism Commission and Local Government Association 21 Local Government’s Engagement in Tourism July 2006 Tourism Associations and Other Councils—was just under 50 percent in both cases (although it is noted that there were higher response rates of ‘Not Applicable’ in both these categories). Whilst only a minority rated their relationships ineffective (ten percent or less for all cases), when taken together with the rate of ‘neutral’ responses (ranging from 12 to 27 percent) it can be surmised that there is scope to further strengthen these relationships. Figure 4.5 - Council's working relationship with external stakeholders 100% 80% 60% 40% 20% Effective (4 or 5) Neutral (3) Ineffective (1 or 2) Not Applicable 0% ion ation oard ncils iat u B c ci Co so so nt s s r e e A A pm Oth g ism velo tin r e u e rk o Ma cal T nal D l io na Lo eg gio R e R Tourism/ economic development organisations that Council contributes to (Q.13) The contribution (financial or otherwise) of Councils to various tourism and economic development organisations indicates the commitment of Council support for tourism, beyond the strategic level. The contribution rate to Regional Marketing Associations was 100 percent amongst regional Councils, with over 87 percent of regional Councils also contributing to Regional Development Boards. The contribution rate to Festival or Events Committees was 73 percent for all Councils, which indicates a willingness to be seen to have a practical, as well as strategic, role in tourism. Organisations listed under ‘Other’ ranged from smaller operator-based committees or community development boards (as distinct from local/town tourism authorities), to larger authorities with strategic importance, such as the Adelaide Convention and Tourism Authority. South Australian Tourism Commission and Local Government Association 22 Local Government’s Engagement in Tourism July 2006 Figure 4.6 - Organisations that Councils contribute to in a tourism-related capacity 100% 80% N/A No Yes 60% 40% 20% 0% rd es ion ion oa tte iat iat i B c c m t so so en om As As C m p ts ng lo sm en eti ve uri v k e r o l/E lD lT Ma na iva ca t al o o i s n L g Fe gio Re Re r he Ot Key findings h) The effectiveness of Councils’ working relationship with Regional Marketing Associations, combined with the fact that most Councils contribute financially to their functioning, is a strong indicator of external coordination. Action: Analyse Council contribution rates toward Regional Marketing for Councils across South Australia to inform development of future Regional Tourism Funding Agreements. i) A number of Councils indicated their desire to work strategically with neighbouring Councils on tourism-related issues other than marketing. A successful example of this being implemented is the Clare Valley Tourism Alliance, which addresses issues such as infrastructure requirements, securing major events and planning policy. Action: Facilitate improved working relationships on tourism-related issues between Councils and regional stakeholders through collaborative alliances. Strong Performers − Alexandrina − Northern Areas − Barossa − Orroroo/ Carrieton − Le Hunte − Outback Areas − Light − Peterborough − Loxton Waikerie − Whyalla − Mid Murray South Australian Tourism Commission and Local Government Association 23 Local Government’s Engagement in Tourism July 2006 4.4 Commitment The extent to which Councils follow through on planning initiatives is crucial to the overall success of tourism within its area. This indicator is closely linked to resource provision (4.5) and seeks to gauge the commitment of Councils in measuring its performance, providing human resources (paid or voluntary), event management (or support) and overall priorities in respect to tourism. Performance measurement (Q.5) As noted previously, 30 percent of Councils have (or are developing) their own Tourism plans, and a further 26 percent are associated with Regional Tourism Plans (excluding Regional Marketing Plans). Of these Councils, 71 percent have performance measurement in place, and of those that did not, 10 percent were in the process of developing measures (as plans were being finalised). In terms of the techniques used to measure performance there was a clear preference for regular internal committee meetings, and regular reporting to Council, which recorded eight and seven responses, respectively. Review of the Corporate or Strategic Management Plan, usually undertaken on a triennial basis, was noted by five Councils. Other techniques included the review of staff performance relative to the tourism-specific targets within the relevant plans (n=3), community surveys (n=2), inclusion in the annual report (n=2) and representation on the Regional Marketing Board (n=2). It is noted that this question did not provide categories for responses; therefore Councils may have more measures in place than they reported on. Employment of tourism staff (Q.11 and 11a) The employment of Council staff with a tourism-specific focus is a strong indicator of commitment. In this regard, 65 percent of Councils (n=32) had staff with a tourism role, with 21 of these, or 43 percent overall, having at least one full-time member of staff dedicated in a tourism role. Although it is noted in some cases this role had crossover with other areas, typically economic development, meaning that the dedication to tourism was less than a FTE. Of the remaining eleven Councils, nine employed part-time staff with tourism roles, one relied on volunteers and the other shared responsibility amongst existing 9 staff. 9 It is also noted that some councils outsource elements of their tourism role, a common example being Visitor Information Centres or Caravan Parks. For the purpose of this study, where these functions have been outsourced they are not counted as Council employees. It is therefore inevitable that the employment figures provided are a slight underestimate of the reality. South Australian Tourism Commission and Local Government Association 24 Local Government’s Engagement in Tourism July 2006 Numbers of Councils Figure 4.7 - Councils that employ staff with a focus on tourism 14 12 10 8 6 FT Staff PT Staff 4 2 0 0 1 2 3 4 5 >5 Numbers of Staff Use of Volunteers (Q.11a) The use of volunteers provides an indication of the community’s interest in tourism, and their region, as well as providing Councils with a valuable human resource, particularly where funding provision for tourism may not be substantial. Volunteers are utilised by 39 percent of Councils, with the majority of these having a volunteer contingent of less than 30 staff. Six Councils had more than 50 volunteers each. All of the Councils used volunteers to assist in the dissemination of visitor information, with other roles including tour guides (n=7), special events and maintenance/cleaning roles (n=2 each). Number of Councils Figure 4.8 - Volunteers assisting Council in a tourismrelated capacity 9 8 7 6 5 4 3 2 1 0 Volunteers 0 1 to 10 11 to 30 31 to 50 51 to 100 over 100 Numbers of Volunteers South Australian Tourism Commission and Local Government Association 25 Local Government’s Engagement in Tourism July 2006 Event Coordination or Support (Q.13 through 16) The coordination of major events or festivals indicates Council’s willingness to actively encourage eventspecific tourism to their region. Many regional events celebrate an intrinsic part of the region’s heritage or industry, such as Vintage Festival in the Barossa, Oysterfest in Ceduna, and in drawing visitors they serve to raise awareness of the other attributes their destination offers. Forty-three percent of Councils took responsibility for organising festivals or events. A further 20 percent provided assistance, financial or in-kind, preferring to leave the organisation to a dedicated communitybased group or event manager. Unfortunately, many Councils did not indicate the events that were supported, however the total number would appear to be well in excess of 150, based on those that did respond. Councils’ tourism priorities (Q.15) This question sought to gain a clear picture of where Councils saw their priorities relating to tourism. Councils were unrestricted in terms of the number of high or low priorities they could allocate therefore this analysis looks at the overall percentage responses for each category to determine relative priority. To assist analysis, the results have been separated into two broad categories: strategic—relating to the longer-term planning and marketing tasks and service—relating to the daily operational matters pertinent to tourism. − Strategic The equal highest priority (and second overall) at a strategic level was the liaison and support for Regional Marketing Associations, and positive planning policies, with 76 percent of Councils nominating these as high priorities. Leadership was the next highest ranked priorities (and equal third overall, with Event Management), with 61 percent. The support for, and liaison with, Local Tourism Organisations and Regional Development Boards (in a tourism capacity) both recorded rates of 59 percent (as a high priority) whilst Marketing was 55 percent. These results are broadly consistent with the findings of earlier questions, where Councils identified their working relationship (in a tourism capacity) with Regional Marketing Associations as the most productive. Given this relationship, it is not surprising that a number of Councils considered their own marketing efforts to be lowest of all the strategic priorities. The high priority accorded to planning and leadership is consistent with the high response rate to question 9, in which 73 percent of Councils considered they promoted the concept of sustainable development. South Australian Tourism Commission and Local Government Association 26 Local Government’s Engagement in Tourism July 2006 Figure 4.9 - Strategic Priorities for Councils Percentage 80% 60% 40% Not Applicable Low Priority Neutral High Priority 20% 0% g n ip rd oc oc ti o sh ni n oa ss ss r o n B e A A om 'g pl a ad m v't /Pr rk t Le ri s ve De i g a u t l i n o s ti lM na Area of responsibility lT Po rk e na gi o ca a o i e o g M L R e R − Service A clear majority of Councils (86%) saw the provision and maintenance of Infrastructure as a high priority with respect to their role in tourism. This is also reflected in Council budgets, where infrastructure spending is the single largest budget item in tourism-related expenditure. Provision of traditional Council services, such as rubbish collection, was the next highest ranked priority, at 73 percent, with Event Management as the third highest, at 61 percent. Management of attractions was ranked the overall lowest priority, with only 39 percent of Councils considering it a high priority. Interestingly, management of Visitor Information Centres ranked second lowest, with just under half of Councils (49%) considering it to be a high priority. This is of interest given that VICs ranked third highest for Council budget expenditure, however it is noted that 7 Councils (14%) 10 did not have VICs . Also, of the nine who ranked VICs as a low priority, three did not have one within their Council, whilst Tourism Associations and Councils managed three each. 10 All seven were metropolitan Councils South Australian Tourism Commission and Local Government Association 27 Local Government’s Engagement in Tourism July 2006 100% 80% 60% 40% 20% 0% io ns nt M an ag em en t M an ag e VI C At tra ct Se rv ic es Not Applicable Low Priority Neutral High Priority Ev e In f ra st ru ct ur e Percentage Figure 4.10 - Service Priorities for Council South Australian Tourism Commission and Local Government Association Area of Responsibility 28 Local Government’s Engagement in Tourism July 2006 Key findings j) Whilst a majority of Councils have performance measures in place, these appear to be internally focused. The use of external measurement techniques (ie. business or visitor surveys) should be increased, as this could provide Councils with an understanding of how the industry and consumer value their effort. Action: Assist Councils that do not have performance measures in place to develop these. k) Almost two-thirds of Councils had at least one member of staff with a tourism role, which is a strong indication of commitment. Surprisingly, less than half of Councils had volunteers involved in tourism. Action: None required. l) Councils’ priorities regarding tourism were Infrastructure, support for Regional Marketing Associations and positive planning policies, which reinforced the findings from earlier questions (Q.8, 12-14). Action: Encourage Councils that have not been involved in the Integrated Regional Strategic Planning process to seek commitment from regional partners to undertaking this. Strong Performers − Alexandrina − Loxton Waikerie − Ceduna − Mid Murray − Flinders Ranges − Port Adelaide Enfield − Gawler − Robe − Holdfast Bay − Victor Harbor − Le Hunte − Wakefield − Light − Whyalla 4.5 Resource provision The provision of resources, and perceived value for investment, indicates the priority Councils’ accord to tourism, however this does not in itself guarantee sustainably managed tourism. The determination of Councils’ expenditure on tourism is influenced by a degree of subjectivity. This depends to the extent which Council has attributed, if at all, the expenditure on non-discretionary activities undertaken as part of its daily activity but which also benefit tourism. Such activities can include maintenance of essential infrastructure, staff time dealing with tourism-related issues, and provision of services such as rubbish collection. Non-discretionary expenditure can also include major infrastructure investment, such as roads, which have tourism benefits but are often required to service the local population. The Tourism Impact Model (TIM), undertaken for two South Australian Councils, estimates the financial impact of tourism on Council expenditure and revenue. This modeling extends to the generic growth- South Australian Tourism Commission and Local Government Association 29 Local Government’s Engagement in Tourism July 2006 related impacts of tourism, ie. the notion that tourism provides employment, therefore results in additional residential population, providing a stronger rate base for Council. In both cases, the overall impact of tourism on Council budgets has been relatively neutral, while providing significant employment and economic benefits to the community. 11 It appears that very few Councils have included the apportionment of non-discretionary expenditure in their estimates, which is unsurprising given that it was not specifically requested. Those that appear to have included it tend to be at the upper end of expenditure—as a proportion of total expenses. Therefore the itemised expenditure of Councils is treated as a guide, and comparisons between Councils are made with this in mind. Perception of tourism ‘burden’ (Q.1.iv) Forty-five percent of Councils did not consider tourism to be a burden on their resources, with a further 31 percent considering the impact to be neutral. Several of the State’s premier tourism destinations were included within the remaining 24 percent (n=12) that did consider tourism to be a burden. Despite this perception, ten of those 12 Councils considered tourism to have a net positive impact on their Council area. As previously noted, this has been supported by both TIM studies undertaken in South Australia, where tourism has provided significant employment and economic benefits for the subject Council areas, whilst having a relatively neutral impact on Council’s budget. Some possible explanations for why Councils may perceive tourism as a burden include: − Seasonal peaks – holiday periods or other seasonal factors that increase demands on Council infrastructure and services − Gateway status –servicing visitors that stop en-route to a destination further afield − Separating local vs. visitor use – many services provided for visitors are also used by residents, however their use may be largely (or entirely) attributed to tourism − Assistance – the extent to which tourism partners (or other relevant bodies) eg. SATC, LGA, offset the ‘burden’ through funding or other strategic support These factors should be explored by Councils (and regions) when developing their marketing strategy and destination management plans, which will in turn help in budgeting for tourism-related expenditure. Tourism budget (Q.16) As noted in the introduction, the apportionment of Council’s tourism expenditure can vary significantly, depending on the perception of what is a ‘tourism-related’ expense, and whether non-discretionary items are included. It is also noted that higher spending Councils can inflate the overall State average (mean), therefore reference to median values (the middle value in a data set) is included where this variance is considered to be significant. Also of note is that all figures are for the 2003/04 financial year. 11 For a detailed understanding of how tourism can impact on a Council’s expenditure the ‘Tourism Impact Model for Australian Local Government’ contains a detailed methodology and can be accessed via – www.industry.gov.au Copies of the TIM reports for Alexandrina and Kangaroo Island Councils can be obtained by contacting the South Australian Tourism Commission. South Australian Tourism Commission and Local Government Association 30 Local Government’s Engagement in Tourism July 2006 As a whole, the 49 Councils responding to this survey contributed a total of $13.26 million to tourismrelated expenses, with $10.57 million coming from the 39 Regional Councils. Overall, this comprises 1.5 percent of a total operating expense for those 49 Councils of $861 million. The total tourism expenditure compares favourably with the Victorian Councils combined figure of $21.18 million, across 61 Councils. There was considerable variance in Council expenditure with 10 percent of Councils spending more than $1 million per year and 59 percent less than $200,000 per year. Only five Councils had no tourismspecific expenditure, of which only one was a regional Council. Regional Councils had higher average expenditure on tourism, at $203,293, than Metropolitan Councils, at $168,112 (both figures exclude grants and external funding). It should be noted, however that for Regional Councils the six highest contributing Councils (all over $500,000) accounted for 51 percent of the regional spend, whilst for Metropolitan Councils, two contributed 79 percent of the total. By comparison, the average tourism budget for Victorian Councils (statewide) was $367, 283 (excluding grants). Regional Councils received an average of $48,987 in grants and external funding for tourism-related purposes (including infrastructure) than Metropolitan Councils, which only averaged $3,563. As illustrated in Figure 4.11 the clear funding priority is infrastructure (roads, etc), with staff and VIC costs ranking second and third, respectively. Contributions to Regional and Local Marketing bodies, direct marketing and strategic planning are the three areas of lowest expenditure. When taken together the total contribution for marketing would actually rank fourth overall, at an average of just over $32,000. One possible explanation for the low expenditure on strategic planning (average of $5989) is that this is often undertaken on a cyclical basis (every three to five years) whereas most of the other areas are undertaken annually. It is also noted that many of the costs associated with strategic planning (and, to a lesser extent, marketing) are likely to be classified under the expense item of ‘Staff’, unless consultants or external agencies are engaged. Another possibility is that tourism is considered as part of an overall strategic planning process so the proportion attributable to tourism is not readily identified. South Australian Tourism Commission and Local Government Association 31 Local Government’s Engagement in Tourism July 2006 Figure 4.11 - Average financial investments relating to tourism (2003/04) Expenditure $80,000 $60,000 $40,000 $20,000 $0 ibu ntr Co r ) s g g ff ing rks he VIC f VIC vent ketin Sta rketin Ot Wo lann r E o a a r t P m r M M jo s a gic uri tp Ma sm To trate uri (no o s S T rie al lle oc ga l/L , a n ms g io eu Council Re us o M nt tio Grants /External Funds Area of Expenditure Areas where Councils contribute the most, compared with grant funding (as a percentage) are Regional and Local marketing associations (94%), VICs (91%) and Staff (89%). The only area where Councils rely heavily on grants is Strategic Planning, where they contribute only 49 percent of total expenditure. To provide a more equitable comparison of Council expenditure on tourism, the total tourism budget for each Council, excluding grants, has been cross-referenced against the number of rateable properties (to provide an indication of spend per property) and total operating expenses (to determine the percentage of Council expenses that are dedicated for tourism). South Australian Tourism Commission and Local Government Association 32 Local Government’s Engagement in Tourism July 2006 Number of Councils Figure 4.12 - Expenditure on Tourism per Rateable Property ($) 25 20 15 10 5 0 Zero One to 25 26 to 50 51 to 75 76 to 100 101 or greater Spend per property ($) Figure 4.12 indicates that, of those with a tourism budget (n=44), the majority of Councils (n=29) spend less than $50 per rateable property on tourism-related work. There were a significant number of Councils (n=5) spending more than $101 per rateable property, with all of these being regional Councils. This is not unexpected, however, given the relatively fewer number of rateable properties for regional Councils as compared with their metropolitan counterparts, and the likelihood of tourism being of higher relevance for most regional Councils. Number of Councils Figure 4.13 - Tourism Expenditure as a Percentage of Council's Total Operating Expenses (2003/04) 25 20 15 10 5 0 ro Ze % % % % .5% 10 10 -5 2.5 7 n 6 a 2. 7.6 0.1 5.1 r th e t Percentage ea Gr South Australian Tourism Commission and Local Government Association 33 Local Government’s Engagement in Tourism July 2006 Figure 4.13 illustrates the proportion of each Council’s tourism expenditure (excluding grants) as a component of Total Operating Expenses. Of the 90 percent who have a tourism budget (n=44), almost three-quarters spend less than five percent on tourism, with an average of 1.6 percent. Similarly to Figure 4.12, the Councils with the greatest proportional expenditure for tourism are all regional. This is not unexpected, however, given the comparatively smaller budgets amongst regional Councils, and the likely higher importance placed on tourism as an economic development tool. − Grants Thirty-five Councils (71%) received grants for 67 tourism-related projects, programs or events in 2003/04, which were funded from 23 different sources. These grants totalled just over $2.6 million, which comprised 17 percent of the total estimated tourism expenditure by South Australian Councils. Across the 35 recipient Councils, this worked out to an average grant value of just over $74,400, however this was influenced by substantial infrastructure-related grants, particularly for tourist road maintenance, and construction or refurbishment of Visitor Information Centres. Funding sources were primarily from State Government (n=9), Regional Authorities (n=4) and private sector (n=5). There were also contributions from neighbouring Councils (n=2), the Federal Government, the Local Government Grants Commission and the Public Libraries Automated Information Network. By far the greatest contributor, in terms of number of grants issued, was the SATC, with 30 grants for either Visitor Information Centres or Infrastructure projects. Regional Development Boards were the next largest contributor, with 6 grants, followed by nine agencies that contribute to one or two specific projects or programs. Three Councils also received contributions from local business or progress associations, and corporate sponsors. It is unknown whether any of the remaining 14 Councils that did not receive grants had applied for any, or the success rate amongst applicants – both these questions may be considered as part of future surveys. Breakdown by expenditure item − Staff Figure 4.14 identifies the range of Council expenditure on tourism-related staff. On average, staff expenses are the second biggest item for Council tourism budgets and comprise 18 percent of Council’s total tourism budget. By comparison, Victorian Councils contributed approximately 44 percent of their tourism budgets to staff expenses. Seventeen Councils (35%) do not have any salaried staff with identified tourism responsibility, with 11 of these being Regional Councils. Eight Councils received grants or external funding for staff expenses, with six receiving between $10,000-$50,000. This enabled the provision of five staff—four in tourism development roles and one in a destination management role. South Australian Tourism Commission and Local Government Association 34 Local Government’s Engagement in Tourism July 2006 Number of Councils Figure 4.14 - Council's expenditure on Staff (2003/04) 18 16 14 12 10 8 6 4 2 0 Zero Less than $10K $10$50K $50$100K $100$200K Greater than $200K Council Expenditure − Contributions to Tourism Organisations The average contribution of Councils (including grants and external funding) in this item was $16,804, which was the third lowest tourism-related expense. One quarter of Councils (n=12) had no contribution for this item, of which eight were metropolitan. Only three Councils received external funding, either through partner agencies or Councils, or direct from Business. Refer Figure 4.15 for an overview of the range of contributions by Councils. Number of Councils Figure 4.15 - Council's Total Contributions to Tourism Organisations (2003/04) 14 12 10 8 6 4 2 0 Zero Less than $10-$25K $25-$50K $50-$75K Greater $10K than $75K Council Contributions South Australian Tourism Commission and Local Government Association 35 Local Government’s Engagement in Tourism − July 2006 Visitor Information Centres Councils spent an average of almost $38,000, and received an average of $3850 in grants and external funding, for a combined total of $41, 850 on VICs. Just over one third of Councils (n=17) had no budget for this item. Refer Figure 4.16, for an indicative breakdown of the contribution split across Councils. Figure 4.16 - Total Expenditure of Councils on Visitor Information Centres (2003/04) Number of Councils 18 16 14 12 10 8 6 4 2 0 Zero Less than $10-$25K $25-$50K $50-$75K Greater $10K than $75K Total Expenditure − Museums, galleries and interpretive centres This item falls under the broad ‘Attractions’ category that was ranked as the lowest overall priority across all Councils (under question 15). It is therefore not surprising to find that just over half of Councils (n=25) had no budget allocation for this item. The six Councils with total budgets of more than $75,000 for this item considerably influenced the average total expenditure, of just over $30,000 (including grants). Six Councils received grants or external funds for this item. − Major and Regional events Councils spent an average of $28,122 and received an average of $3306 in grants and external funding, for a combined total of $31, 359 on Major and regional Events. Just over one third of Councils (n=17) had no budget for this item, therefore the nine Councils that allocated more than $50,000 to this item influenced this average considerably. Thirteen Councils also received grants or external funds for this item, second only to VICs for number of grants received. − Destination Marketing Just over one third of Councils (n=18) had no budget for this item, and ten had a total allocation of less than $10,000. Across all Councils, this item averaged just over $13,000, and combined with an average of just under $3000 in grants and external funding, made for a total of $15, 285. For greater clarity, this item should be considered in conjunction with Contributions to Regional and Local Tourism Associations, which many Councils would charge with primary responsibility for marketing efforts. South Australian Tourism Commission and Local Government Association 36 Local Government’s Engagement in Tourism − July 2006 Tourism Works – Infrastructure This was clearly the highest funded item, both within Council budgets and through grants and external funding, accounting for 30 percent of total tourism expenditure. The average total expenditure was just over $98,000, however there were 21 Councils that recorded no expenditure in this item for 2003/04. The total figure, of $4.74 million, may be artificially inflated due to the apportionment of expenditure on infrastructure that services residents as well as visitors eg. boat ramp construction. For the purpose of this survey, this apportionment has been left to Councils’ discretion. The construction of significant tourism infrastructure, such as Visitor Information Centres, has also inflated the averages. It is noted that 8 Councils had expenditure greater than $200,000 for this item. In saying that, it is acknowledged that some infrastructure and general maintenance works to meet local needs, such as road resealing, may benefit visitors but not have been included. Number of Councils Figure 4.17 - Total Expenditure on Tourism Works Infrastructure 40 35 30 25 20 15 10 5 0 Zero Less than $10-$25K $25-$50K $50-$75K Greater $10K than $75K Expenditure − Council Expenditure Grant Funding Strategic Planning As previously noted, this item received the lowest funding from within Council budgets, and relied most heavily on grants or external funding—roughly on a dollar-for-dollar basis. It also had the lowest participation rate of all items, with only 13 Councils budgeting for strategic planning (for tourism) over the 2003/04 year. Possible explanations for this are detailed in Section 4.5, in addressing question 16. South Australian Tourism Commission and Local Government Association 37 Local Government’s Engagement in Tourism July 2006 Key findings The subjectivity with which Councils have determined their tourism expenditure for the purposes of this survey requires the averages to be used with caution, however a number of issues have been highlighted, as noted below: m) Infrastructure and staff costs are the most significant expenditure items, which is likely to be a reflection of the priority they are accorded, their relatively higher cost, as well as their relatively recurrent nature. Action: None required. n) Contributions to Regional Marketing/Local Tourism Associations and Visitor Information Centres are the items which the highest proportion of Councils contributed (over 90% for both). In the case of Regional Marketing, the level of contributions is a relatively small proportion of the average Council’s tourism budget (five percent) and is generally stipulated as part of the regional agreement. Action: Inform Councils of the Tourism Impact Model and outcomes from two South Australian examples undertaken to date, and encourage other Councils to apply TIM to their area. Use the TIM findings to guide Councils to allocate funding to tourism that is commensurate to its economic value. o) Whilst a majority of Councils (71%) were recipients of grant funding, there appeared to be only a few funding avenues being accessed. Opportunities to expand this, including leveraging private sector involvement, should be explored. Action: Inform Councils that do not currently access grant opportunities of various programs in place. Action: Explore opportunities for alternate tourism funding models that Councils may be able to implement. Strong Performers − Whyalla − Mt Gambier − Port Adelaide Enfield − Barossa 4.6 Industry involvement Council assistance to tourism industry, type of assistance and rate of uptake (Q.14, 14a and 14b) This question sought to establish whether Councils provided assistance to tourism related businesses and organisations, separate from those listed in question 13 (eg. Regional Marketing Associations). Thirty-three Councils (67 percent), comprising 28 Regional and 5 Metropolitan Councils, offered at least one form of assistance to the tourism industry, with the most commonly offered forms being: South Australian Tourism Commission and Local Government Association 38 Local Government’s Engagement in Tourism July 2006 Event Management and Support (26 Councils - 54% of Regional and 50% of Metropolitan) – can include funding or sponsorship, to assistance with insurance and risk management. It also includes Council’s in-kind contributions, such as equipment, and staff labour, required in operating the event. Direct Financial Support (19 Councils – 44% of Regional and 20% of Metropolitan) – in the form of direct funding assistance to operators, such as grants, as well as rate concessions. Results for this response did not include all of Councils tourism-related contributions (eg. to Regional Marketing Associations or for events), as these were noted separately. Business Planning (23 Councils - 54% of Regional and 20% of Metropolitan) – this takes a number of forms, from the availability of a Tourism or Economic Development Officer to provide advice on grant applications and assist with business development, to provision of materials (eg. Information Kits). A number of Councils noted they direct responsibility for this level of support to Regional Development Boards. Promotion/Marketing and Information (11 Councils - 23% of Regional and 20% of Metropolitan) – this includes local promotion through Council publications (eg. newsletters, websites), displays within the offices and public libraries. Traditional Infrastructure (4 Councils - 5% of Regional and 20% of Metropolitan) – this includes the provision of toilet facilities, parks and gardens and signage. As this question did not prompt responses, there are likely to be a higher number of Councils than those indicated above that provide these forms of assistance. For example, it is noted that 86 percent of Councils nominated provision of traditional infrastructure as their highest priority in tourism. Of the 33 Councils offering assistance, only three did not have any uptake by industry, with 16 (48 percent) having up to 20 businesses taking advantage of the assistance. Almost a quarter of Councils (n=8) had not quantified the numbers accessing assistance, but commented that they were being utilised. What Councils consider to be the major benefits of tourism in their area (Q.17) Overwhelmingly, Councils cited the economic benefits that tourism brought to their area, with spin-offs for business (n=24), employment (n=24), investment growth and development (n=20) the major benefit of tourism. There were also positive references regarding the services (n=9), and infrastructure (n=7) that were provided for visitors also benefiting the community. Some of the social benefits included the sense of community (n=13) and promotion for the region that tourism provides (n=7). There was very little mention of environmental benefits provided by tourism with only one mention of it being a force for protection of natural areas. What problems or issues tourism presents to Councils (Q.18) Similarly to the previous question, the primary concern was with the economic consequences of tourism, with infrastructure, roads and maintenance (n=30) and increased costs, lack of funding/resources, South Australian Tourism Commission and Local Government Association 39 Local Government’s Engagement in Tourism July 2006 impact on budgets (n=27) being of greatest importance. Remedies to address these challenges are discussed as part of question 19 (below). There was little mention of tourism-induced environmental or social problems or issues, which could be perceived as a positive reflection on visitor management practices across the State. Alternately, for many areas, visitation is not perceived to be significant enough to be a major management problem. Whether Council felt they could play a more supportive role in tourism (Q.19) Fifty-three percent of Councils (n=26) felt they could play a more supportive role in tourism, with a further ten percent (n=5) being unsure. Of the remaining Councils (n=18) who did not think they could play a more supportive role for tourism, 16 were from regional South Australia. Further analysis indicates that seven of these Councils contain some of South Australia’s iconic experiences within their boundaries. As noted in the introductory chapter, visitation to regional areas is sharply declining, with many of the influential factors likely to persist for the foreseeable future. To counter this trend will require a strategic approach to marketing, but equally importantly, enhancing the experience for visitors so that they are provided with memorable experiences. Given the significant role of local government in infrastructure provision, planning policy, amongst their many responsibilities, it is important they are involved in the process. How Councils could better support tourism (Q.19a) Amongst Councils who felt they could play a more supportive role, common responses in how they could achieve this included: − Increased dedication of funding, from within Council but also from Commonwealth and State agencies, particularly in upgrading infrastructure. − Increasing the understanding of the benefits that tourism provides amongst local businesses and elected members. − Having a more supportive stance toward tourism-related projects and initiatives, such as destination marketing. − Working more closely with local and regional authorities that have a tourism focus. Councils were also asked to identify any barriers to achieving the above, with an overwhelming majority of comments (n=31) relating to funding, notably the competition within Council budgets for the range of services provided. Reasons for this varied, in some cases it was due to the low rate base from which Council could draw, however in many in appears that lack of State or Commonwealth support is a major constraint. Other barriers identified included the size of Council areas or lack of focal points making it difficult to know where to allocate resources: both these may suggest the absence of an strategic approach to tourism. The perception that tourism may diminish resident’s quality of life, influence of local politics and parochialism that may undermine regional efforts were also cited as barriers. It was also noted that in certain aspects of tourism, Visitor Information Centres being one example, the regulatory standards are being raised, yet there is no additional funding to help Councils meet these obligations. South Australian Tourism Commission and Local Government Association 40 Local Government’s Engagement in Tourism July 2006 In asking Councils to identify ways to overcome these barriers there were numerous suggestions, with increased incentive funding being foremost (n=19). A range of measures were suggested to achieve this, ranging from an increase in direct funding from higher levels of government, to regionally-calculated levies, developer contributions and a scheme similar to Places for People, which sets strategic 12 objectives and provides funding over medium term, rather than on an annual basis . Other solutions raised included the need for capacity building for local communities, particularly through additional training, provided through the LGA, for elected members and staff to better understand tourism. The provision of dedicated ‘tourism development officers’ for each region, to work with the regional marketing managers in building and improving the physical infrastructure for tourism. There were also suggestions that lesser known destinations could be better promoted, rather than focusing on iconic destinations, to share the benefits broadly throughout the state. Whilst this logic appears soundly based, experience shows that by promoting a destination’s strengths, it is likely to increase the overall visitor numbers, with a beneficial ‘trickle-down’ effect to nearby areas. This also reinforces the destination ‘brand’ to would-be visitors, rather than potentially confusing them with a multitude of themes or messages. 12 Places for People is coordinated by Planning SA, with the aim of improving the quality of the built environment in focal points, such as Main Streets. South Australian Tourism Commission and Local Government Association 41 Local Government’s Engagement in Tourism July 2006 Key findings p) Just over two-thirds of Councils offered some form of assistance to the tourism industry, with financial support or business planning the preferred form. Action: Inform those Councils not currently offering assistance of means by which they could better support tourism, in collaboration with Regional Marketing Associations and Regional Development Boards. q) Councils clearly saw visitor’s economic contribution to local business, with flow-on benefits through employment and investment, as the key benefit of tourism. Conversely, budgetary pressures resulting from infrastructure and service provision to cater for tourism were identified as key issues faced by Councils. Action: None required r) Just over half of Councils considered they could play a more supportive role for tourism, with numerous suggestions as to how this might be achieved being offered. Action: Conduct regional workshops to inform Councils of the State’s strategic tourism directions, and build capacity eg. through highlighting best-practice case studies from other Councils. Strong Performers − Ceduna − Flinders Ranges − Gawler − Grant − Loxton Waikerie South Australian Tourism Commission and Local Government Association 42 Local Government’s Engagement in Tourism July 2006 5. Conclusions Whilst it is encouraging that all Councils consider tourism to offer future economic development opportunities for their area, as part of a generally positive attitude toward the industry, there appears to be some uncertainty amongst Councils about how to achieve this. A majority of Councils considered their relationships with external stakeholders (particularly Regional Marketing Associations) to be a strength, and this represents an opportunity to further enhance the capacity of Councils in planning for tourism. A recent example of this being implemented is the Clare Valley Tourism Alliance, where Chief Executives of the four regional Councils meet on a monthly basis with the Regional Marketing Manager and Regional Events Officer to discuss issues of a product development or strategic planning nature that relate to tourism. The Alliance also acts as an implementation ‘driver’ of actions arising from the Integrated Regional Strategic Tourism Plan developed for the Clare Valley and Barossa regions in 2005. Less than half of Councils considered they had ‘good’ coordination of tourism responsibilities. Whilst this was undefined, and is therefore open to interpretation, it suggests that many Councils seek to improve their performance in tourism planning and management. A starting point for this is the incorporation of tourism into Council Strategic Management Plans, and other relevant plans, such as the Development Plan. Whilst the indicators on both these measures were positive, it is noted that there was no qualitative measurement for this indicator. The Integrated Regional Strategic Tourism Planning process, currently being implemented across the State, should help to strengthen both these indicators. Of those Councils with tourism-specific plans, or aligned with an Integrated Regional Strategic Tourism Plan (other than for Marketing), the majority had performance measures to gauge their success. It is noted that most of these measures were internally focused, suggesting an opportunity for greater external-orientation, such as community, visitor or operator surveys. Given that a majority of Councils did not have tourism-specific plans, or were party to a Regional equivalent, it may also be worth Councils monitoring performance against tourism objectives in their Strategic Management Plans. Council expenditure on tourism, totaling $13.26 million with a median value of $150,000 per annum (both excluding grants), is a positive indicator of commitment to the industry. It is noted, however, that the top ten contributing Councils accounted for almost two-thirds of this expenditure. Areas of relatively low expenditure, compared to total tourism expenditure, included strategic planning and contributions to Regional and Local Marketing bodies. Given the strategic importance of both these areas in terms of growing and setting direction for the industry, it is important funding allocations to these areas are maintained, or in some areas, increased. There appears to be a preference for spending on tangible items, notably infrastructure and Visitor Information Centres. Part of the educative process incorporated through Integrated Regional Strategic Tourism Planning is to improve Councils understanding of the value in funding ‘strategic’ items, and fund South Australian Tourism Commission and Local Government Association 43 Local Government’s Engagement in Tourism July 2006 them accordingly. This approach, in which tourism is valued, rather than just tolerated, may help to reduce the sense of tourism being the ‘burden’ that some Councils currently perceive it to be. The practical assistance that many Councils provide to their operators, from financial assistance and business planning to support for event management, appears to be well received. There were, however, a number of Councils that had limited uptake (or had not monitored the level of uptake). In conclusion, the capacity (and enthusiasm) of South Australia’s Local Government to plan for and manage tourism appears sound, however there are a few areas of concern: − Co-ordination of tourism responsibility − Incorporation of tourism within Council’s organisational structure − Funding for ‘strategic’ tourism issues, such as strategic planning and regional marketing Whilst many of the remaining indicators are positive, it bears remembering that just over a quarter of Councils (n=19) did not respond to this survey. Whilst this included six metropolitan Councils and a number of regional Councils where tourism would be of low strategic importance, it did however include eight regional Councils with tourism assets of considerable value to the State and regional brand. The participation of these Councils in the next survey will be an important indicator of a strengthening Local Government engagement in tourism. To apply the findings from the survey in a practical response, the following Actions have been identified as priorities: − Assist Councils that have not incorporated tourism comprehensively into their Strategic Management Plans when these are next reviewed. − Assist Councils of tourism significance that are currently without tourism-specific plans to develop one, or at least feature it in one other Council plan. − Assist Councils that do not have performance measures relevant to tourism to develop these. − Inform Councils about what sustainable tourism entails and how it can be incorporated into their Development Plans, and other relevant strategic plans. − Facilitate improved working relationships on tourism-related issues between Councils and regional stakeholders through collaborative alliances. − Encourage Councils that have not been involved in the Integrated Regional Strategic Planning process to seek commitment from regional partners to undertaking this. − Inform Councils of the Tourism Impact Model and outcomes from two South Australian examples undertaken to date, with the goal of having at least two other Councils apply TIM to their area. − Conduct regional workshops to inform Councils of new Strategic tourism directives, and build capacity eg. through highlighting best-practice case studies from other Councils. The remaining actions (identified within the summary boxes at end of each subsection) will also be pursued, but over a longer timeframe. To complement this work, the SATC will work with the LGA to develop a Tourism Policy for Local Government, to provide overarching direction for Council involvement in tourism. South Australian Tourism Commission and Local Government Association 44 Local Government’s Engagement in Tourism July 2006 Appendix A Local Government Engagement in Tourism Survey Form South Australian Tourism Commission and Local Government Association 45 Local Government’s Engagement in Tourism July 2006 Survey Form The South Australian Tourism Commission, in partnership with the Local Government Association is undertaking this survey to gain a better understanding of Local Government’s involvement in tourism. Your Council’s response will be treated with confidentiality. Due to the wide range of information required, the Chief Executive Officer, or an appropriate senior staff member should complete this survey, with input from relevant staff. In the event that the CEO does not complete the form, it is requested that they review it prior to lodgement, to ensure the response is consistent with Council’s position. Your time is greatly appreciated as the outcomes will increase our collective knowledge and ultimately benefit South Australian tourism and Local Government. Council Name: Council Officer: Phone Number: Email: 1. We are interested in how your Council perceives tourism. Please indicate to what extent your Council would agree with the following statements? Strongly Disagree 1 Neutral 2 3 Strongly Agree 4 5 Tourism is already a significant industry with net positive impacts for this Council area Tourism offers future economic development opportunities for this Council area Tourism has a net negative impact for this Council area Tourism is a burden on Council resources Tourism is a priority industry within this Council area There is good coordination of tourism responsibilities within this Council 1a. What does your Council consider to be the key tourism themes within its area? eg. coast, wine and food, heritage, etc. ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ 1b. What does your Council consider to be the key tourism attributes within its area? eg. museum, national park, shopping precinct, etc. ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ South Australian Tourism Commission and Local Government Association 46 Local Government’s Engagement in Tourism July 2006 2. Does your Council have a stand-alone tourism plan, policy or strategy? Yes No, but in the process (go to question 3) No (go to question 3) 2a. When was this developed and when was it last updated? Developed: _____________ Updated: _____________ 3. Is your Council associated with any other Tourism Plan? (excluding Regional Marketing Plan) Yes (please specify) ____________________________________________________ No 4. How were the plans developed? (please tick all that apply) Council Plan Regional Plan Local tourism reference group Consultant employed Specialist Council Officer Strategic support by SATC and/or Regional Marketing Committee/ Regional Tourism Board Other (please specify) ________________________ 5. Does Council have mechanisms for monitoring/evaluating/revising performance relating to goals/targets in the relevant plans? (eg: regular meetings, annual or quarterly reports) Yes (please specify)______________________________________________________ No 6. Are the goals/directions in the plan, (or is tourism in general) incorporated into the Council’s Strategic Management Plan? Yes, comprehensively No Yes, to some extent 7. Please list any other Council plans that feature tourism (eg: Corporate Plan, Event Plan, Business Plan) _______________________________________________________________________ ____________________________________________________________________________ 8. What aspects of tourism are covered in Council’s plans? Marketing Infrastructure (Amenities, parks) Management of visitor impacts (ie. Council’s working relations with tourism environmental degradation) partners Festivals and Events Attractions Development opportunities Policy Other (please state) ______________________________________________________ 9. Please indicate how strongly your Council agrees with the following statements Strongly Disagree 1 2 Neutral 3 Strongly Agree 4 5 Council promotes the concept of sustainable tourism development Council’s Development Plan encourages sustainable tourism development South Australian Tourism Commission and Local Government Association 47 Local Government’s Engagement in Tourism July 2006 10. Where does tourism fit into the organisational structure of your Council? (Please tick all that apply) As a stand alone tourism unit Formal Council committee Within an economic development unit Within a park/recreation unit Visitor Information Centre/s There is no identified area responsible for tourism Other (please specify) _____________________________________________ 11. Does your Council employ staff with a focus on tourism (including Visitor Information Centres)? Yes (please indicate numbers) Full-time ______________ Part-time ______________ Volunteers ______________ No. 11a. In relation to staff employed with some specific role in tourism please describe this role Full-time _____________________________________________________________ Part-time _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ Volunteers _____________________________________________________________ _____________________________________________________________ 12. How effective is Council’s working relationship with the following entities? Very ineffective N/A 1 Neutral 2 3 Very effective 4 5 Regional Marketing Association//Tourism Committee/Board Local/Town Tourism Association Regional Development Board Other Councils – eg. Through regional funding agreements (please identify)__________________ 12 a. If ineffective or neutral, how do you think this can be improved? (i) Regional Marketing Association/Committee/Board ______________________________________ _________________________________________________________________________________ (ii) Local/Town Tourism Association ____________________________________________________ _________________________________________________________________________________ (iii) Regional Development Board ______________________________________________________ _________________________________________________________________________________ (iv) Other Councils – eg. Through regional funding agreements _______________________________ _________________________________________________________________________________ South Australian Tourism Commission and Local Government Association 48 Local Government’s Engagement in Tourism July 2006 13. Which of the following organisations/boards/committees does your Council contribute to, in a tourism related capacity? Organisation Yes No Regional Marketing Association//Tourism Committee/Board Local/Town Tourism Association Regional Development Board Festivals/Events Committees Other tourism related bodies Please name the relevant organisations, boards and/or committees ______________________________________________________________________ ______________________________________________________________________ 14. Does your Council provide assistance to tourism related businesses/operators/ organisations/groups? Yes No (go to question 16) 14a. What types of assistance are offered by Council? (eg. business planning, materials and labour, grants, rates concessions) ______________________________________________________________________ ______________________________________________________________________ 14b. How many tourism operators/businesses/organisations/groups have taken advantage of any of these forms of assistance in the past twelve months? ____________________________ _______________________________________________________________________ _______________________________________________________________________ 14c. Does your Council coordinate any major events or festivals? Please list: _______________________________________________________________________ _______________________________________________________________________ 15. Please identify your Council’s priorities with respect to its role in tourism Lowest Priority 1 Neutral 2 3 Highest Priority 4 5 Liaison/support for: (i) Regional Marketing Committee/Board/ Association (ii) Local/Town Tourism Associations (iii) Regional Development Board Traditional infrastructure, eg parks, roads, lookouts Traditional services, eg parking control, litter removal Management of tourism attractions Promotion/marketing/information Event management and support Leadership Positive planning policies to encourage sustainability Management of Visitor Information Centre Other (please specify) _________________________ South Australian Tourism Commission and Local Government Association 49 Local Government’s Engagement in Tourism July 2006 16. Please identify as accurately as possible your Council's financial investments in relation to tourism in 2003/2004 Expenditure Area Council Funds Grant/External Funds* TOTAL Direct costs for staff (from question 10) Contributions to Local tourism associations; Regional marketing boards/ committees/assoc. Visitor Information Centre/s (VICs) Museums, galleries or interpretive centres, etc. that are not part of VICs Major and/or Regional events Destination Marketing: eg. brochures, advertising campaigns, PR/editorial services Major Tourism works/projects: Infrastructure, new developments etc. Strategic Planning & Policy Development (including progress monitoring) Other ** TOTAL *Please identify the source and purpose of any grants or external funds: Source Purpose **Please list what types of expenditure have been estimated in this line __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ 17. What does your Council consider to be the major benefits of tourism in its area? __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ South Australian Tourism Commission and Local Government Association 50 Local Government’s Engagement in Tourism July 2006 18. What are some of the major problems or issues that tourism presents to your Council? __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ 19. I believe this Council could play a more supportive role in tourism: Yes No Unsure If yes, how could it do this? ____________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ 19a. This Council is hampered in playing a more supportive role for tourism by: __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ 19b. Ways to overcome these barriers would be: __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ 20 Does your Council support the use of the results from this survey to allow for comparison between Council areas? This is intended to allow comparison of Councils with similar characteristics (eg. population, geographical location). Yes No Your assistance in completing this survey is appreciated. Please use the remainder of this page to provide any information you think the LGA and/or the SATC would find useful. __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ Thank you. South Australian Tourism Commission and Local Government Association 51 Local Government’s Engagement in Tourism July 2006 References Advance Tourism, 1998, Local Government: Better Tourism Results (draft), Melbourne Australian Government, 2004, Tourism White Paper: A Medium to Long Term Strategy for Tourism, Commonwealth of Australia, Canberra Brown, F 1998, Tourism Reassessed: Blight or Blessing?, Butterworth-Heinemann, Oxford, UK Carson, Dean and Beattie, Sarah, 2002, Local Government indicators of sustainable management of tourism, Country Victoria Tourism Council, Melbourne Financial Sustainability Review Board, August 2005, Rising To The Challenge: Towards Financially Sustainable Local Government in South Australia: Volume 1 – Overview and Volume 2 – Supporting Analysis, South Australian Local Government Independent Inquiry, viewed at <http://www.lga.sa.gov.au/customdata/inquiry/Publications.html> Local Government Association of SA, 2003, Local Government Context: A Snapshot of Local Government in SA, viewed at < http://www.lga.sa.gov.au/webdata/resources/files/LG_Context_pdf1.pdf> Minister’s Tourism Round Table Working Group, 2005, Removing the Barriers to Tourism Investment in Regional South Australia (Draft), Government of South Australia, Adelaide South Australian Tourism Commission, 2002, South Australian Tourism Plan 2003-2008, Government of South Australia, Adelaide — —, 2005, Sustainable Tourism Package, Government of South Australia, Adelaide — —, 2006, Tourism Research - At a Glance: Issue 62, January 2006, Government of South Australia, Adelaide Tourism Alliance Victoria, 2006, Local Government Indicators of Sustainable Management of Tourism: 2002 – 2005 Comparison Report, Tourism Alliance Victoria, Melbourne Tourism Australia, 2005a, Domestic Overnight Leisure Travel: Recent Trends And Challenges, Tourism Australia, Canberra ——, 2005b, Forecast - Tourism Forecasting Committee October 2005 Forecasts (to 2014), viewed at <http://www.tourism.australia.com/content/Research/Tourism%20Forecasts/tourism_forecasts_october_ 2005_updated.pdf> United Nations Environment Program and World Tourism Organisation, 2005, Making Tourism More Sustainable: A Guide for Policy Makers, Paris, France and Madrid, Spain. World Tourism Organisation, Global Code of Ethics for Tourism, viewed at <http://www.worldtourism.org/code_ethics/eng/brochure.htm> — —, Climate Change and Tourism: Proceedings of the first International Conference; Djerba, Tunisia, 9-11 April 2003, viewed at <http://www.world-tourism.org/publications/pr_1330-1.html> South Australian Tourism Commission and Local Government Association 52