PART 1 : PLACE, PEOPLE & PERFORMANCE documents... · 7 A core list of tourism characteristic industries as defined in the 2008 international standards for Tourism Satellite Accounts

PART 1 : PLACE, PEOPLE & PERFORMANCE

108,400 INT’L DAYTRIPPERS

1,169,000 DOMESTIC OVERNIGHTERS

VISITATIONTO T H E Y E A R E N D E D M A R C H 2 0 1 4 12

TOURISM QUICKFACTS

62%OF VISITORS WERE

VERY SATISFIEDWITH THEIR STAY11

62%

TOURISM CONTRIBUTES13

OFGROSS

REGIONALPRODUCT

OFEMPLOYMENT

OF MORNINGTON PENINSULA REGION AS A DESTINATION IS RELATIVELY GOODAWARENESSIN VICTORIA, BUT POOR IN INTERSTATE AND INTERNATIONAL MARKETS.8

8

24,000 HOLIDAY HOMES 9 & 10

26MOTELS & SERVICED

APARTMENTS

VS

11

DESTINATION CHARACTERISTICS

COOLMARITIMECLIMATE

AMONGST THE MOST EXPENSIVE AND EXCLUSIVE SUBURBS IN VICTORIA, WHILST OTHER AREAS ARE AMONGST THE MOST DISADVANTAGED IN THE STATE.

HIGHLY DIVERSE COMMUNITY

FRANKSTON CITY

MORNINGTON PENINSULA SHIRE

2012 2031RESIDENT POPULATION2

177,589

152,993131,542

TOTA L

330,582TOTA L

282,319

150,777 70%IS ZONED AS THEMORNINGTON PENINSULAGREEN WEDGE3

$ HIGHLY DEPENDENT ON WEALTH BROUGHT TO THE REGION

COMPLEX GEOGRAPHY

2 Australian Bureau of Statistics (2013) 3218.0 – Regional Population Growth, Australia, 2012, Australian Bureau of Statistics, Canberra.3 Mornington Peninsula Shire (2012) Interim Green Wedge Management Plan, Mornington Peninsula Shire.\

ABOUT THE DESTINATION

WHO VISITS THE DESTINATION?

The Mornington Peninsula region’s dominant tourism market is Victorians (especially Melburnians) accessing the region as self-driving visitors. About 14% of visitors are from interstate and 3% from international markets,4 similar to the regional Victoria average of 15% and 3% respectively. Because Victorians are much more likely to visit the Mornington Peninsula region for a day-trip, visitor nights are 20% interstate and 12% international.

Visitors to the Mornington Peninsula region most strongly associate the region with beaches, restaurants, wineries, visiting friends and family, shopping, golf, indulgence & romance, spa, coastal scenery, cinema, parks & gardens and festivals.5

Rural and natural settings are a key feature across many of the Mornington Peninsula region’s attractions and activities. The region’s experiences tend toward ‘cultivated’ and ‘accessible’ whilst edging into rural and natural values. Family activities have traditionally been, and remain, popular about the beaches and natural areas.

Overall satisfaction by visitors to the Mornington Peninsula region is high (amongst the highest in Australia6). Market research shows that visitors are impressed with the diversity and number of things to experience on the Peninsula. With no particular iconic attractions or destinations dominating, Mornington Peninsula region is seen as a rejuvenating destination with lots to do and good food and wine.

The Mornington Peninsula region has always been a popular destination in Victoria. The tourism industry first grew along with the summertime beach crowds, but has gradually evolved to become more sophisticated and diversified.

Tourism is an important driver of economic activity for the Mornington Peninsula region. Melbourne and Victoria have traditionally been the core markets for Mornington Peninsula. Whilst that remains the case, the region has been improving its profile with interstate markets in particular.

The Victorian day-tripper and short-stay market will remain the core focus of the Mornington Peninsula region tourism industry. However, the region seeks to improve its profile in interstate markets and develop an increased international market to improve yields and reduce the current strong dependence on summer and weekend visitation.

The Mornington Peninsula region has a growing market reputation for delivering boutique, authentic experiences and is targeting a market segment that particularly values authentic qualities.

MORNINGTON PENINSULA REGION DESTINATION MANAGEMENT PLAN 8

4 Tourism Victoria (2014) Mornington Peninsula Market Profile: Year ending December 2013, Tourism Victoria, Melbourne.5 Roy Morgan Research (2011) Summary of RAPS 2011 Findings, Mornington Peninsula, Tourism Victoria, Melbourne.6 Department of Resources, Energy and Tourism (DRET) (2010) Destination Visitor Survey Visitor Profile and Satisfaction Report – Victoria Mornington Peninsula. DRET, Canberra.

WHO IS INVOLVED IN THE TOURISM INDUSTRY?

The number and range of stakeholders (in addition to local residents and employees) involved in the tourism industry, or the servicing of tourists is extensive due to the nature of the tourist as a consumer.

Tourism Industry Stakeholders

Government Industry7 Organisations

National• Tourism Australia • Air transport • Tourism & Transport Forum

• Tourism Accommodation Australia

State• Tourism Victoria • Parks Victoria

• Air transport• Rail transport

• Victorian Tourism Industry Council

Regional• RDA Southern Melbourne

• Taxi transport• Water transport

• Mornington Peninsula Regional Tourism Board

Local

• Frankston City Council• Mornington Peninsula Shire Council

• Accommodation• Cafes, restaurants & takeaway food services• Clubs, pubs, taverns & bars• Motor vehicle hiring• Travel agency & tour operator services• Cultural services• Casinos and other gambling services• Other sports and recreation services

• ConnectEast• Frankston Arts Centre• Frankston Tourism Inc• Frankston Business Network • Monash University• Mornington Chamber of Commerce• Mornington Peninsula Beachside Tourism Association Inc• Mornington Peninsula Golf Tourism• Mornington Peninsula Hinterland Tourism Association• Mornington Peninsula Weddings• Mornington Peninsula Vignerons Association• Mount Eliza Chamber of Commerce • MP Gourmet• Northern Mornington Peninsula Tourism• Rosebud Chamber of Commerce• Sorrento Portsea Chamber of Commerce• Spa and Well Being - Peninsula Hot Springs• Western Port Chamber of Commerce• Western Port Tourism Inc

9 MORNINGTON PENINSULA REGION DESTINATION MANAGEMENT PLAN

7 A core list of tourism characteristic industries as defined in the 2008 international standards for Tourism Satellite Accounts (which are based on their link to tourism in the worldwide context); and (ii) any other industries where at least 25% of their output is consumed by visitors (ABS).

108,400 INT’L DAYTRIPPERS

1,169,000 DOMESTIC OVERNIGHTERS

VISITATIONTO T H E Y E A R E N D E D M A R C H 2 0 1 4 12

TOURISM QUICKFACTS

62%OF VISITORS WERE

VERY SATISFIEDWITH THEIR STAY11

62%

TOURISM CONTRIBUTES13

OFGROSS

REGIONALPRODUCT

OFEMPLOYMENT

OF MORNINGTON PENINSULA REGION AS A DESTINATION IS RELATIVELY GOODAWARENESSIN VICTORIA, BUT POOR IN INTERSTATE AND INTERNATIONAL MARKETS.8

8

24,000 HOLIDAY HOMES 9 & 10

26MOTELS & SERVICED

APARTMENTS

VS

11

DESTINATION CHARACTERISTICS

COOLMARITIMECLIMATE

AMONGST THE MOST EXPENSIVE AND EXCLUSIVE SUBURBS IN VICTORIA, WHILST OTHER AREAS ARE AMONGST THE MOST DISADVANTAGED IN THE STATE.

HIGHLY DIVERSE COMMUNITY

FRANKSTON CITY

MORNINGTON PENINSULA SHIRE

2012 2031RESIDENT POPULATION2

177,589

152,993131,542

TOTA L

330,582TOTA L

282,319

150,777 70%IS ZONED AS THEMORNINGTON PENINSULAGREEN WEDGE3

$ HIGHLY DEPENDENT ON WEALTH BROUGHT TO THE REGION

COMPLEX GEOGRAPHY

8 Roy Morgan Research (2011) Summary of RAPS 2011 Findings, Mornington Peninsula, Tourism Victoria, Melbourne.9 Urban Enterprise (2012) Mornington Peninsula Holiday Home Research and Economic Impact Assessment (2012), Urban Enterprise, North Fitzroy.10 Tourism Victoria (2014) Mornington Peninsula Market Profile: Year ending December 2013, Tourism Victoria, Melbourne.11 Department of Resources, Energy and Tourism (2010) Destination Visitor Survey Visitor Profile and Satisfaction Report – Victoria Mornington Peninsula. DRET, Canberra.12 Tourism Victoria (2014) Mornington Peninsula Market Profile, Year ending December 2013, Tourism Victoria, Melbourne. 13 Department of Resources, Energy and Tourism (2010) Destination Visitor Survey Visitor Profile and Satisfaction Report – Victoria Mornington Peninsula. DRET, Canberra.


Mornington Peninsula Region Tourism presents the region in five tourism precincts. Each of these precincts have distinctive characteristics in terms of their tourism attractions, their communities and their level of tourism development. Statistic Value

Number of Overnight Visitors 3,615,000

Number of Daytrip Visitors 4,040,000

Total Visitors 7,655,000

Total Expenditure (Direct) $1,264.5M

Total Tourism Jobs (Direct & Indirect) 10,184

Source: Urban Enterprise

Frankston & Surrounds Frankston is the largest urban, administrative and retail centre in the Mornington Peninsula region. Frankston itself has high quality beaches, good public transport linkages to Melbourne and a range of cultural and heritage attractions. Further from the coast the suburbs graduate to small acreages and farms. The region has a number of unique attractions but generally does not have the density of tourism focussed product found further south on the Mornington Peninsula. Statistic Value Share

Number of Overnight Visitors 173,000 5%

Number of Daytrip Visitors 675,000 17%

Total Visitors 848,000 11%

Total Expenditure (Direct) $113.8M 9%

Total Tourism Jobs (Direct & Indirect) 1,548 15%


Southern Peninsula A long, bayside urban strip extends along the Southern Peninsula culminating in the fashionable villages of Sorrento and Portsea. The hinterland section of this region contains equestrian stables, the hot springs and several internationally regarded golf courses. Southern Peninsula also has several open ocean surf beaches. There are a large number of accommodation establishments, although most are boutique in size, as well as nature and water-based activity providers. Wineries are present, but are not as prevalent as in the Hinterland or Western Port areas. Statistic Value Share

Number of Overnight Visitors 2,404,000 66%

Number of Daytrip Visitors 1,499,000 37%

Total Visitors 3,902,000 51%




PORT PHILLIP

WESTERN PORT

FRENCH ISLAND

PHILLIP ISLAND

BASS STRAIT

MORNINGTON

SORRENTO

RYE

SHOREHAM

HASTINGS

MOUNT MARTHA

MOUNT ELIZA

FRANKSTON

ROSEBUD

DROMANA

BITTERNCRIB POINT

BALNARRING

SOMERVILLE

PEARCEDALE

CARRUM DOWNS

TYABB

FLINDERS

BAXTER

LANGWARRIN

SEAFORD

MOOROODUC

MAIN RIDGE

SAFETY BEACH

TUERONG

ARTHURS SEATRED HILL

McCRAE

TOOTGAROOK

FINGAL

BONEO

BLAIRGOWRIE

PORTSEA

POINT NEPEAN

CAPE SCHANCK

QUEENSCLIFF

POINT LEO

MERRICKS

MERRICKSBEACH

BALNARRINGBEACH

SOMERS

STONY POINT

MELBOURNE

Northern PeninsulaNorthern Peninsula contains several villages and towns along a hilly coastline with a number of individual beaches and coves. A large number of holiday homes and bathing boxes stretch along the coastline and into the Southern Peninsula precinct. Inland are significant horticulture areas, a number of wineries and a significant equestrian industry allied to racing. Statistic Value Share



Total Visitors 1,322,578 17%




Hinterland The hilly hinterland area of the Mornington Peninsula region is best known for its wineries, cellar doors and fine restaurants. Clusters of wineries, boutique accommodation establishments and boutique food producers are particularly prominent around localities such as Red Hill, Main Ridge and Merricks North. The precinct also contains a diversity of tourism attractions including galleries, gardens, mazes, horse riding and pick your own farms. Statistic Value Share





Total Tourism Jobs (Direct & Indirect) 462 5%


Western Port Western Port takes in established towns and industrial areas as well as natural southern ocean coastline areas to the south. Connections exist to the relatively undeveloped French Island as well as Phillip Island. This precinct has good harbour facilities that support fishing and boating activities. The town of Tyabb has developed a popular precinct of antiques sellers. Statistic Value Share








PORT PHILLIP

WESTERN PORT

FRENCH ISLAND

PHILLIP ISLAND

BASS STRAIT

MORNINGTON

SORRENTO

RYE

SHOREHAM

HASTINGS

MOUNT MARTHA

MOUNT ELIZA

FRANKSTON

ROSEBUD

DROMANA

BITTERNCRIB POINT

BALNARRING

SOMERVILLE

PEARCEDALE

CARRUM DOWNS

TYABB

FLINDERS

BAXTER

LANGWARRIN

SEAFORD

MOOROODUC

MAIN RIDGE

SAFETY BEACH

TUERONG

ARTHURS SEATRED HILL

McCRAE

TOOTGAROOK

FINGAL

BONEO

BLAIRGOWRIE

PORTSEA

POINT NEPEAN

CAPE SCHANCK

QUEENSCLIFF

POINT LEO

MERRICKS

MERRICKSBEACH

BALNARRINGBEACH

SOMERS

STONY POINT

MELBOURNE

FRANKSTON & SURROUNDS

NORTHERN PENINSULA

WESTERN PORT BAY

PENINSULA HINTERLAND

SOUTHERN PENINSULA

THE MORNINGTON PENINSULA REGION

DESTINATION PERFORMANCEDestination performance in terms of the tourism industry is measured in several ways. Principally by number of visitors (daytrip, overnight domestic and international visitors), how long they stay and the amount of economic activity they generate (expenditure and employment).

The market is dominated by daytripping Melburnians

The Mornington Peninsula region’s dominant tourism market is Victorians (especially Melburnians) accessing the region as self-driving visitors. About 12% of overnight visitors are from interstate and 3% from international markets, similar to the regional Victoria average of 16% and 3% respectively. Visitor nights’ proportions are 13% interstate and 12% international.14

Mornington Peninsula Region Daytrips and Visitor Nights

Since 2008, the Mornington Peninsula region appears to have been gaining market share of the Victorian day-tripper market with Mornington Peninsula region growing at an annual average of 4.0% compared to 2.3% for all of regional Victoria and 3.6% for all of Victoria.14 & 15


Intrastate Visitor Nights Interstate Visitor Nights

International Visitor Nights Daytrips (LHS)

1,000

0

1,000

500 500

1,500 1,500

2,000 2,000

2,500 2,500

0

3,000 3,000

3,500 3,500

4,000 4,000

4,500 4,500

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Day

trip

s (’

000s

)

Nig

hts

(’00

0s)

Source: TRA

14 Tourism Victoria (2014) Mornington Peninsula Market Profile, Year ending December 2013, Tourism Victoria, Melbourne. 15 Mornington Peninsula’s unique tourism position, including being on the fringe of Melbourne and having accommodation dominated by camping, holiday homes and small establishments creates issues for the accuracy of available tourism data. Additionally, tourism data for regions such as the Mornington Peninsula region are limited by small sample sizes, resulting in large error margins for individual statistics. Because of this it is important to consider longer-term trends.

International visitor performance is trending down but less so than other regions

The Mornington Peninsula region has also been performing better that regional Victoria with international visitors (although in a negative growth environment). International overnight visitors to Mornington Peninsula region shrank by an annual average of -0.5% vs -1.1% for regional Victoria since 2008. Victoria as a whole, however, experienced average annual growth of 6.1% in international visitor nights over the same period. 14

Domestic overnight visitation has performed well

In contrast, domestic overnight visitation has performed very well in recent years from both Victorian and interstate markets with average annual growth of 1.2% since 2000 and 2.5% since 2008 vs -0.3% and 1.3% respectively for all of regional Victoria.14 Repeat visitation is relatively high. However market knowledge of Mornington Peninsula region as a destination is poor outside of Victoria.

Historically, visitation to the Mornington Peninsula region has been highly seasonal with a strong summer surge related to beach holidaying. Seasonality has been somewhat dampened with the increased profile of food and wine tourism and the hot springs, however the region remains one of the most seasonal destinations in Victoria. It also experiences significant concentration of visitation on weekends with the dominant daytrip visitation from Melbourne.

Peak demand periods are common which cause difficulties

This pattern of peak demand is an ongoing challenge for much of the region’s tourism industry, which fluctuates between periods of low visitation and cashflow and periods of strong activity that business lacks the capacity to fully service. Less seasonal tourism markets such as corporate functions and events, and international visitors require further development for the Mornington Peninsula region. The highly seasonal visitation is also an issue for collecting data on the performance of the tourism industry, with large quantities of demand, and likely different visitor profiles, occurring in short periods about holidays and summer each year.

Visitation is a key driver of the regional economy

The Victorian Regional Tourism Satellite Accounts 2011-12 estimates the direct contribution of tourism to the entire Mornington Peninsula region economy as 4.8% of Gross Regional Product directly and 6.5% from indirect, flow-on effects.16 In total 11.3% of Gross Regional Product ($1.006 million) and 10.3% of employment (10,700 jobs) in the Mornington Peninsula region is dependent on tourism activity. These estimates do not include the personal expenditure of employees of the tourism industry. For Mornington Peninsula Shire, it is estimated that up to 21.1% of employment may be related to the tourism industry when the impact of holiday home visitors is also considered. 17


16 Tourism Victoria (2013) Victorian Regional Tourism Satellite Accounts 2011-12, produced by Deloitte Access Economics for Tourism Victoria, November 2013.17 Urban Enterprise (2012) Mornington Peninsula Holiday Home Research and Economic Impact Assessment (2012), Urban Enterprise, North Fitzroy.

TRENDS & CHALLENGES IMPACTING THE DESTINATION Core challenges for the Mornington Peninsula region to move forward as a destination are to improve competitiveness around its core themes of food and wine and beachside tourism in the face of strong competition on similar themes from other regions of Victoria and interstate. To grow its tourism sector, the Mornington Peninsula region also needs to improve its penetration into interstate and international markets. Whilst there is considerable interest in investing in tourism product development in the Mornington Peninsula region, a range of competing interests make often it difficult for the region to secure new developments.

INFLUENCING MACRO TRENDS

There are a range of influencing macro trends on destination development and domestic and international visitors. In general these are economic conditions, either man made or crisis driven, changing travel behaviour and consumer trends.

• There are weak but improving economic conditions in traditional markets such as Europe and North America. Although the Asian markets provide opportunity, their future growth for Victoria will be subject to increased competition and the maturing of these markets.

• Difficulties presented by the distance to Australia and high costs when exchange rates are unfavourable.

• An increasing frequency of unpredictable crises worldwide will continue to be a factor which impacts the tourism industry.

• Impacts of climate change which appear to be a factor in natural disasters around the world.

• Australian’s have been increasingly willing to holiday overseas, with domestic tourism trending to more daytrip and short stay holidays.

• More travel is also being driven by non-leisure needs, particularly for international visitors to Victoria.

• Domestic holidays have already seen a significant decline in perceived value for money and subsequently length of stay has declined. Domestic travel within Victoria is more likely to be a short trip, rather than a longer holiday.

• As international travel becomes more prevalent, consumers will increasingly desire different and unique experiences.

• Tourists are increasingly seeking to engage with experiences which are consistent with their own values and beliefs. Food, nature, wellbeing and sustainability are growing themes within tourism.

• The trend for increased usage of the internet, social media adoption and mobile devices is anticipated to continue, though the pace of change is difficult to estimate.

• Consumers no longer want to simply view information. They want to interact and share their experiences through social media. This trend is likely to continue which will result in less focus on destination websites and more emphasis in interacting with the social media community.

ECONOMIC TRAVEL BEHAVIOUR CONSUMER TRENDS


The Mornington Peninsula region is in a unique position in that it is neither metropolitan nor regional. In many parts of the Mornington Peninsula region, outcomes for factors such as telecommunications, transport and utilities are similar to rural and regional areas. However, as the region sits under a metropolitan classification, assistance to improve these factors is often limited.

REGIONAL AUSTRALIA CHALLENGESAll Australian regions suffer from a common set of challenges:

• The need to attract investment for new product and experiences, and the need for existing operators to regularly re-invest in their product.

• The low number of operators with online booking facilities.

• Ongoing labour shortages due to retention, recruitment, seasonality, skill deficiencies, vacancy rate and employee turnover.

• Readiness of regions to meet the language and cultural needs of international growth markets.

MORNINGTON PENINSULA CHALLENGESThe Mornington Peninsula region faces a number of unique challenges that are critical to it maintaining its existing destination competitiveness and growing its tourism industry. These include:

• Developing a stronger presence in interstate and international markets.

• Maintaining an innovative and authentic mix of attractions and activities, that continues to interest and stimulate the region’s target markets.

• Developing mid-week and low-season tourism markets, such as corporate events, education and interstate and international holiday markets.

• Having available suitable capacity and diversity in venues across the region that can attract and service business events and conference.

• Providing clearer direction to industry and community as to the parameters for future tourism development in the Mornington Peninsula region.

• Managing core public assets, such as coastal zones and national parks, for the ongoing benefit of residents, visitors and the environment.

• Continual advocacy to improve and provide new public assets in light of constrained and competitive public budgets.

• Maintaining competitiveness as an investment and visitor destination in the face of strong competition both within and beyond Victoria.

• Addressing barriers to regional visitation and dispersal concerning transport, including quality of navigational signage, public transport options and taxi services.

• Enabling ongoing investment in tourism product across the region whilst managing actual and perceived impacts on the community.

• The prevalence of micro and lifestyle businesses that dabble in tourism that are unable or reluctant to increase in size and scale to better service tourists.

• Managing the strong summer, holiday and weekend concentration of visitation to the Mornington Peninsula region.

• Facilitating the ongoing transition of rural and green wedge areas from commercial farming to hobby and tourism related land uses.

• Addressing infrastructure constraints across the Mornington Peninsula region, ranging from communications black-spots to villages with inadequate parking and coastal marine infrastructure.

• Dealing with a three level system of government that presents continually changing and often conflicting policies and legislation.

Most of these challenges can be addressed to various degrees through destination management and are done so through the initiatives in the Destination Management Plan.


Documents

PART 1 : PLACE, PEOPLE & PERFORMANCE documents... · 7 A core list of tourism characteristic industries as defined in the 2008 international standards for Tourism Satellite Accounts