THE ECONOMIC SIGNIFICANCE OF THE VICTORIAN ALPINE RESORTSSUMMER

Published by the Alpine Resorts Co-ordinating Council, June 2013. An electronic copy of this document is available at arcc.vic.gov.au. For further information contact the Alpine Resorts Co-ordinating Council, Phone: (03) 9637 9642.

© The State of Victoria, Alpine Resorts Co-ordinating Council 2013. This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968. Authorised by Victorian Government, Melbourne.

ISBN 978-1-742878-77-5 (pdf)

Acknowledgements: Photo Credit: Mark Watson photographer and Tourism Victoria

This report has been prepared by the National Institute of Economic and Industry Research (NIEIR)

ABN: 72 006 234 626Telephone: (03) 9488 8444www.nieir.com.au

While the National Institute endeavours to provide reliable forecasts and believes the material is accurate it will not be liable for any claim by any party acting on such information.

Disclaimer: This publication may be of assistance to you but the State of Victoria and the Alpine Resorts Co-ordinating Council do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication. This report has been commissioned by the Alpine Resorts Co-ordinating Council, with funding assistance from the Victorian Government.The views expressed in this report are not necessarily those of the Victorian Government or the Alpine Resorts Co-ordinating Council.

The economic significance of the Victorian Alpine resorts –

Summer season 2011

A report for the Alpine Resorts Co-ordinating Council

Prepared by the National Institute of Economic and Industry Research (NIEIR) ABN: 72 006 234 626 416 Queens Parade, Clifton Hill, Victoria, 3068 Telephone: (03) 9488 8444; Facsimile: (03) 9482 3262 Email: admin@nieir.com.au

June 2013

While the National Institute endeavours to provide reliable forecasts and believes the material is accurate it will not be liable for any claim by any party acting on such information.

Contents

Page no. Executive summary i E.1 Visitors to the Victorian Alpine resorts in summer 2011 i E.2 Summary of economic impact i E.3 Regional impacts ii E.4 Comparison with previous studies iii

1. Methodology and study objectives 1 1.1 Study objectives 1 1.2 Study methodology 1

2. The Victorian Alpine resorts 4 2.1 Introduction 4 2.2 Victorian Alpine resorts and their regional centres 4 2.3 Accessibility 5 2.4 Victorian Alpine resorts and their regions 6 2.5 The Victorian Alpine resorts 6

3. The survey instruments – visitors, employees and businesses 8 3.1 Survey design 8 3.1.1 Visitor survey 8 3.1.2 Employee survey 9 3.1.3 Business survey 9 3.2 Survey methodology 9 3.2.1 Visitor survey 10 3.2.2 Employee survey 10 3.2.3 Business survey 10

4. Victorian Alpine resorts in summer: Visitor characteristics 2011 11 4.1 Visitor days 11 4.1.1 Visitor trips 11 4.1.2 Survey counts 12 4.1.3 First timers 12 4.1.4 Activity types 12 4.1.5 Prime purpose of visit 13 4.2 Spending patterns 14 4.2.1 Visitor expenditure 14 4.2.2 Accommodation 16 4.2.3 Spending by place of residence 18 4.2.4 Spending by source of funds 18 4.3 Length of stay 18 4.4 Return rates 19 4.4.1 First visit to any Alpine resort 19 4.4.2 Visited an Alpine resort before 19 4.5 Satisfaction levels 19 4.6 International Alpine resorts experience 20 4.7 Likelihood to visit the Victorian Alpine resorts during the winter season 21 4.8 Summer season visitors, age and gender 21 4.9 Visitor household income 22

Contents (cont.)

Page no. 5. Victorian Alpine resorts summer season industry employees and business survey findings 23 5.1 Employee survey findings 23 5.1.1 Source of employees 23 5.1.2 Employment 23 5.2 Business survey findings 24 5.2.1 Business type 24 5.2.2 Business turnover 24

6. The Victorian Alpine resorts industry summer season economic impact 25 6.1 Economic evaluation: Model description and methodology 25 6.2 The model results 25 6.3 Comparison with 2005 study 27

Appendix A: Surveys 28 Appendix B: Demographics comparison of summer and winter visitors 33 B.1 Interstate and overseas visitors 34 B.2 Gender and age groups 35 B.3 Household income 36 B.4 Satisfaction level 38

List of tables

Page no. E.1 Summer season/winter season comparison ii E.2 Summer season – impact on Victorian economy ii

2.1 Travel times from Melbourne to the Victorian Alpine resorts 5

3.1 Survey statistics 10

4.1 Visitor days by place of residence 11 4.2 Visitor trips by place of residence 11 4.3 Visitors’ place of residence by Australian postcode 2011 12 4.4 Interstate visitors, would you have visited at this time of year if you were not visiting the Alpine resorts 13 4.5 Interstate visitors’ main reasons for visiting the Victorian Alpine resorts 13 4.6 Interstate visitors, is this a substitute for a visit to Victoria planned earlier or later this year, but changed to coincide with your holiday in the Alpine resorts 13 4.7 Interstate visitors, did you extend your trip to Victoria to visit the Alpine resorts 14 4.8 Visitors’ total expenditure 14 4.9 Accommodation expenditure by place of residence 16 4.10 Comparison of summer and winter season 2011 general expenditure by place of residence (excluding accommodation and lift passes) – total 18 4.11 International resorts experience, by state of residence 20

5.1 Average weekly expenditure by employees 23 5.2 Payroll 24 5.3 Turnover 24

6.1 Summer season – impact on Victorian economy 26 6.2 Summer/winter comparison 27

List of figures

Page no. 1.1 Steps in application of study methodology 3

4.1 Visitor expenditure categories, summer and winter season 2011 compared 15

4.2 Accommodation expenditure by place of residence: summer and winter 2011 17

4.3 Satisfaction level by place of residence 19

4.4 Satisfaction level by activities 20

4.5 Age group and gender of visitors to the Victorian Alpine resorts, summer season 21

4.6 Summer season visitor household income 22

4.7 Summer season visitor household income by resort 22

B.1 Comparison of interstate/overseas visitors to Victorian Alpine resorts 34

B.2 Comparison of age groups at Victorian Alpine resorts (male) 35

B.3 Comparison of age groups at Victorian Alpine resorts (female) 35

B.4 Comparison of household income 36

B.5 Proportion of visitors with household income greater than $80,000 37

B.6 Proportion of visitors’ rate above average satisfaction by resort 38

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Executive summary

This study investigates the economic benefit created by the Victorian Alpine resorts in the summer season. The Alpine resorts attract visitors throughout the year and the economic significance of the Victorian resorts in the winter season is well understood because of the series of research projects conducted to assess winter season economic activity. The latest of these reports is The economic significance of the Australian Alpine resorts: winter season 2011. Victorian Alpine regions in the non-snow sports period are important for local employment. This employment provides an economic foundation to the Alpine regions in the summer period. This summer season report is the first such report to apply the economic model using surveys conducted across Victoria’s Alpine resorts and surrounding towns. It provides a better understanding of the visitation numbers since the recommendation of the 2005 Economic significance of Australian’s Alpine resorts report that more research should be undertaken into the summer season economic activity.

E.1 Visitors to the Victorian Alpine resorts in summer 2011

Total visitor days to the Victorian Alpine regions for the 2011 summer season are estimated at 375,561. In the summer season visitors undertake a diverse range of activities including organised events such as music festivals, various sporting activities and events such as bush walking, tennis competitions, boat races, mountain biking, swimming, road cycling, downhill cycling, cross country cycling, athletic and sports training and nature watching, photography and regional food and wine trails. The survey results indicate that approximately 75 per cent of summer visitors to the Victorian Alpine resorts came from Victoria. Victorian visitation was particularly high for the resorts of Lake Mountain, where some 94 per cent of visitors lived in Victoria, and Mount Buffalo, where 81 per cent of visitors were resident in Victoria.

The survey results also show that Mount Baw Baw attracted a higher proportion of visitors from New South Wales, Queensland and ACT (17.7 per cent, 7.6 per cent and 6.3 per cent). Mount Buffalo and Mount Hotham/Dinner Plain had the highest proportion of overseas visitors (4.8 and 4.3 per cent).

Overseas visitors to the Victorian Alpine resorts in the summer seasons were mainly from European countries, including the United Kingdom, Austria, Ireland and Holland. These groups comprised the largest proportion of overseas visitors (54 per cent). Visitors from Asia and North America, each at 20 per cent of all overseas visitors, were also important.

Of Victorian residents visiting the Victorian Alpine resorts, people living in Melbourne (51 per cent of Victoria visitors) were most likely to visit the Alpine resorts in the summer season.

The summer survey covered 4,726 visitors.

E.2 Summary of economic impact

From the research and associated modelling the headline gross regional product for Victoria as a result of the activity generated by the Victorian Alpine resorts in the summer season is estimated to be $93.7 million. That is the summer season economic activity represents 16 per cent of the winter season activity. Although there is a significantly smaller amount of economic activity in summer than in winter, the Victorian Alpine resorts remain particularly important to their regions, because of the expenditures and employment generated by the recreational and other activities that occur during the summer season as a result of the Alpine resorts.

At $39.5 million, the Victorian local government area of Alpine Shire receives as much as 40 per cent of the benefit Victoria derives from the activity generated in the summer season. This represents approximately 10 per cent of Alpine Shire’s annual GRP.

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The summer season Victorian Alpine resorts visitor expenditures, at $95.4 million are around 15 per cent of the expenditures in the winter season. Employment generated in the summer season because of these expenditures is estimated to be 956 jobs, that is, approximately 477 full time equivalent employment positions in Victoria. Nearly 40 per cent of these jobs are generated in the Alpine Shire. It is worth noting that visitors during the summer season tend to be less concentrated as they tend to be more thinly scattered across the Victorian Alpine Regions. It is likely that this means that in the summer season visitor expenditures generate slightly less employment per dollar spent than is the case in the winter season where activities are more concentrated and labour intensive. Summer season employment generated by the Victorian Alpine resorts is about 10 per cent of that generated during the winter season.

Table E.1 Summer season/winter season comparison

Victoria Summer Winter Summer/winter ratio

Expenditure 95 636 15%

GRP 94 570 16%

Employment 956 9,754 10%

E.3 Regional impacts

The existence of the Victorian Alpine resorts attracts significant benefits to regional areas adjoining the resorts. The regions surrounding the resorts may have high levels of structural unemployment so the existence of the resorts is important in terms of improving employment outcomes for the residents of these regions during the year.

The benefits to the economies of the local government areas (LGAs) where the Victorian Alpine resorts are located are described in this section. The estimates of economic benefit given in this section are described in terms of the value of headline gross regional product, that is, the total industry value added generated within boundaries of the LGA. The figures in this section are for 2011. Subsets of these values are also provided in this report for local gross product (residents) and local gross product (industry).

Table E.2 Summer season – impact on Victorian economy

Region Resident

employment Headline GRP – industry market prices – $2011m

Summer headline GRP as a proportion of region’s total GRP

Alpine LGA 378 40 10.0%

Baw Baw LGA 109 7 0.5%

Mansfield LGA 270 29 8.4%

Murrindindi LGA 23 2 0.5%

Other Victorian LGAs 164 16 < 0.1%

Victoria Total 956 94 < 0.1%

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Alpine Shire

As a result of the summer season visitation generated by Alpine resorts of Falls Creek and Mt Hotham, the Alpine Shire received headline gross regional product of $39.5 million. Total annual resident employment opportunities generated were 378. Gross regional product as a share of the LGAs total annual GRP is 10 per cent, this is the highest share of all LGAs.

Mansfield Shire

Mansfield Shire contains the Alpine resorts of Mt Buller and Mt Stirling. As a result of the summer season visitation, the headline gross regional product generated for the Shire was $29.2 million. Total annual resident employment opportunities generated were 270. Gross regional product as a share of the LGAs total annual GRP is a healthy 8.4 per cent and second only to the Alpine LGA.

Murrindindi Shire

The Victoria Alpine resort of Lake Mountain is located in Murrindindi Shire and the resort contributes $2.1 million to the Shire’s headline gross regional product. Total annual resident employment opportunities generated by the resort were 23. Gross regional product as a share of the LGAs total annual GRP is fairly low at 0.5 per cent.

It is important to note the impact of the 2009 Victorian bushfires in relation to Lake Mountain and the Shire of Murrindindi. In the fires the Shire lost approximately 60 per cent of its accommodation capacity, that is, the beds that directly serviced winter visitors. Currently, capacity is being re-established in the region.

Baw Baw Shire

The resort of Mt Baw Baw is located in Baw Baw Shire and summer season visitors to the Alpine region and related resort activity contribute $6.8 million to the LGA’s headline gross regional product. Total annual resident employment opportunities generated by Alpine resort related activity were 109. Similar to Murrindindi Shire, the gross regional product as a share of the LGAs total annual GRP is fairly low at 0.5 per cent.

E.4 Comparison with previous studies

The detailed research conducted for the Economic significance of the Victorian Alpine resorts summer season 2011 report has enabled a more accurate assessment of the level of activity and benefits to the region that summer season provides. The assessment in this report that the summer season represents around 16 per cent of the total economic activity generated by the Victoria Alpine resorts is more aligned with findings of similar research by the National Ski Area Association (NSAA) in the United States. Previous studies in relation to summer season activity in the Victoria Alps, which had based their assessment on far less detailed research for the summer period, had over-estimated the summer period contribution as a proportion of total economic activity in Victoria’s Alpine regions.

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1. Methodology and study objectives

This section describes the objectives of the study and how the results were established. The study methodology included a detailed visitor survey, business and employee surveys which were conducted in the resorts and surrounding towns. Visitor surveys were conducted face to face and business and employee surveys were delivered to local businesses and collected when complete.

1.1 Study objectives

The objectives of the study are to quantify:

• the economic benefits that are generated by the Victorian Alpine resorts in the summer season;

• the regional benefits generated by Victorian Alpine resorts, in the Local Government Areas (LGAs) in Victoria where the resorts are situated; and

• to analyse at least some of the differences between winter and summer visitation to the Victorian Alpine resorts to assist in planning future strategies.

1.2 Study methodology

To be a driver of economic activity in a state, a resort has to attract additional expenditures to the state that would not have been made if the resort had not existed. To be a driver of economic activity at the State level an Alpine resort needs to attract tourists from interstate or overseas or to attract locals who would otherwise have gone overseas.

Many interstate or international visitors visit the resorts and nearby towns because they are already in Victoria for other reasons. Hence, it is important to identify the net additional interstate and international visitors, defined as the interstate and international visitors, who visited the state specifically to visit the Alpine resorts or extended their stay to do so.

The expectation is that visitors to the Victorian Alpine resorts who are resident in Victoria, would be likely to spend their money on other recreational pursuits in the state had the resort regions not been available. However, Victorian resident expenditures in the Victorian Alpine resorts can still have a net positive stimulus to Victoria if they:

• encourage expenditures that would not have been made otherwise (that is, reduce household savings);

• prevent the leakages of expenditures to other states or overseas if, in the absence of the resorts, residents would have travelled outside the state; and

• persuade residents to spend on goods and services that have a lower import content compared to the expenditures they would have made in the absence of the resorts.

The first step of the methodology was to design a survey instrument to generate the information required and to survey visitors to the Victorian Alpine regions over the peak of the summer season. For this study the survey was conducted in the months of January and February, at the peak of the 2011 summer season.

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Surveys were also conducted with employees and businesses within the Alpine resorts and in towns near the resorts. The employee survey findings were used to calculate the benefits to Victoria of employee income that had been directly generated from activity and associated expenditures occurring because of the Victorian Alpine resorts. The business survey findings were used to assist estimation of the sub-regional distribution of economic activity (Figure 1.1).

Estimates of total visitor numbers to resorts were from the 2010-11 summer visitation survey report conducted by the Alpine Resorts Co-ordinating Council. These were combined with survey results to obtain total and net additional expenditures. For state residents, net additional expenditures required the use of household expenditure models to estimate the savings effect and the impact of resulting expenditure.

The estimates of net additional expenditures were then processed through linked state input-output models to assess the flow-on economic benefits for economic activity and employment for Victoria. Input-output models for each Local Government Area in Victoria, linked by inter-regional trade flow matrices, were then used to estimate the regional impact. At the sub-regional level the distribution of activity was determined on the spatial distribution of economic resources by industry within a region.

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Figure 1.1: Steps in application of study methodology

Survey of visitors to Alpine resorts

Gross and net additional spending per visitor day by resort $ per day

Total gross and net additional spending –

$m

Global estimates of visitors, number of

skiers using lifts, etc. Total visitors to

resorts

Models of household

expenditures

Linked models of the State economies

Survey of Alpine resort employees

State economic benefit from

Alpine resorts

Compare the summer season

relative to the winter season

Integrated models of LGAs for Victoria. summer economic impact at LGA level.

Shift-share sub-regional modelling. Economic impact at sub-regional level.

Survey of businesses

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2. The Victorian Alpine resorts

2.1 Introduction

The Victorian Alpine resorts create numerous direct and indirect economic impacts. The most important of these are:

• investment and expenditure on development, service provision, marketing, staff training, infrastructure, recreational activities and environmental management within Alpine resorts;

• importing, wholesaling and retailing of specialised Alpine equipment and clothing (such as skiing and snowboarding);

• servicing the associated demand for goods and services within the resorts and in neighbouring regional centres such as Bright, Mansfield, Marysville, Mt Beauty, Omeo and Warragul in Victoria;

• providing employment (seasonal and full-time) in the construction, service and transport sectors within and outside of resorts; and

• creating investment in Alpine and sub-Alpine centres including:

(i) in new or expanded businesses or enterprises to directly service visitors or support the provision of services by others;

(ii) in the construction industry, by promoting the building of new accommodation/services; and

(iii) in infrastructure to service the expanding resorts.

The Victorian Alpine resorts are located in areas of great environmental sensitivity. The total Alpine environment in Australia is small and covers approximately 0.2 per cent of the Australian Continent.

2.2 Victorian Alpine resorts and their regional centres

In Victoria the Alpine resorts are:

• Falls Creek;

• Lake Mountain;

• Mt Baw Baw;

• Mt Buller;

• Mt Buffalo;

• Mt Hotham; and

• Mt Stirling.

Important regional towns close to the Victorian Alpine resorts are:

• Bright;

• Mansfield;

• Marysville;

• Mt Beauty;

• Omeo;

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• Warragul;

• Wodonga;

• Porepunkah;

• Myrtleford;

• Moe;

• Morwell; and

• Traralgon.

2.3 Accessibility

Table 2.1 gives the travel times from Melbourne (by motor transport) to the Victorian Alpine resorts.

Table 2.1 Travel times from Melbourne to the Victorian Alpine resorts

Resort Travel time Melbourne

Falls Creek 4.5 hours Lake Mountain 2 hours Mt Baw Baw 2 hours Mt Buller 3 hours Mt Stirling 3 hours Mt Buffalo 4 hours Mt Hotham 4.5 hours Dinner Plain 4.7 hours

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2.4 Victorian Alpine resorts and their regions

2.5 The Victorian Alpine resorts

There are fewer visitors to the Alpine resorts during summer months and there is a tendency for summer activities to be more dispersed across the Alpine region. Events, such as the music festival at Mt Hotham, are important drivers of visitation and enhance economic activity in the Alpine region during the summer season.

Falls Creek

Falls Creek has a village atmosphere. The resort is approximately four and a half hours drive from Melbourne. Its development was historically linked to the Kiewa Valley hydro electricity scheme which was constructed after the war. The existence of Rocky Valley dam close to the village enhances its year round potential.

Falls Creek provides access to the Bogong High Plains and a host of outdoor adventures in the summer season, including altitude training.

Lake Mountain

Lake Mountain is a snow-play and cross-country resort during the winter season, located on a plateau approximately 120 kilometres north east of Melbourne. It has no overnight accommodation but is accessible on a day-trip basis from Melbourne with a driving time of about two hours. The resort has striven to enhance its summer offer including adventure activities and cycling.

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Mt Baw Baw

Mt Baw Baw is about 170 kilometres from Melbourne with a driving time of about two hours. Visitors are mostly from Melbourne’s eastern and southern suburbs. In summer, it has developed a program focussed on events and a touring loop with nearby destinations including Walhalla.

Mt Buller

Mt Buller Alpine resort, in terms of visitor numbers, is the largest Victorian Alpine resort. It is a sophisticated and well developed resort with as diverse a range of activities as would be found anywhere in the Australian Alps. The resort has developed a significant program of year round events to better utilise its extensive facilities, including a downhill mountain biking network.

Mt Stirling

Close to Mt Buller, Mt Stirling is the only Victorian Alpine resort to receive more summer visitors than winter visitors. Summer activities include bush walking, camping, fishing, horse riding and four-wheel driving. There are some 60 kilometres of cross-country trails. The drive time from Melbourne is similar to that for Mt Buller. Overnight accommodation is not available on the mountain.

Mt Buffalo

Mt Buffalo became a National Park in 1898 and is one of Australia’s oldest National Parks. The park covers 31,000 hectares. The resort is used both for winter sports and summer recreation. The historic Mt Buffalo Chalet (built in 1910) is also an attraction for year round visitors.

The towns of Bright, Porepunkah and Myrtleford are important regional towns which have economic links to Mt Buffalo. Porepunkah has two ski hire businesses and relies heavily on Mt Buffalo for its business activity. Myrtleford is a gateway to the North Eastern resorts and has a population of 3,500.

Mt Hotham

The Mt Hotham resort is built almost on the top of the mountain, which gives the village a unique character in world terms as almost all ski villages are nestled at the foot of the ski field. The resort works in close association with the nearby village of Dinner Plain, 11 kilometres away. The association with Dinner Plain strengthens the summer offering for such things as road cycling and horse riding as well as music events at the mountain resort.

Dinner Plain

Dinner Plain is an Alpine Village situated half way between the Mt Hotham Resort and the airport. The purpose-built village, elevation 1,520 metres, contains more than 200 chalets and lodges. A network of ski trails and walking tracks surround the village including a cross-country trail to Mt Hotham. It hosts a series of summer events and is particularly known for the Easter Polo Match.

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3. The survey instruments – visitors, employees and businesses

3.1 Survey design

The survey instruments were designed by NIEIR.

Three separate groups were surveyed:

1. visitors to the resort areas;

2. employees working in the areas; and

3. businesses active in the area.

Please refer to Appendix A for the survey forms.

3.1.1 Visitor survey

The visitor survey was based on survey instruments NIEIR uses to evaluate major events. Direct economic impact information collected by means of the survey included the following.

For all visitors:

• means of travel;

• numbers of nights they will stay;

• place of residence;

• type and cost of accommodation (at both surrounding town and Alpine resort);

• daily expenditures over a range of items including food, travel, equipment and lift tickets and hire;

• type of activity; and

• would they visit the resort at other times of year.

For Australian resident visitors:

• resorts visited and length of stay at each;

• number and durations of summer and winter visits to Alpine resorts; and

• main reasons for visiting.

For international visitors:

• point of arrival to Australia;

• number of nights stay in Australia; and

• resorts and nearby towns visited.

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3.1.2 Employee survey

The survey included the following:

• place of residence;

• how and where accommodated;

• type of employment;

• average hours worked and period of employment;

• average weekly income; and

• average expenditure on accommodation, food and drinks and other items.

3.1.3 Business survey

The survey included the following:

• type and location of business;

• payroll and proprietor drawings;

• sales revenue;

• variability of business performance from year to year; and

• proportion of business sales that are due to Alpine visitors.

3.2 Survey methodology

For all surveys a consistent approach and management strategy was adopted. A core team of five survey personnel was set up and these personnel were used to manage the survey distribution and subsequent review of completed survey forms. Surveys were collected each day, reviewed in an evening meeting with survey staff and despatched to NIEIR for input of data.

The Victorian resorts surveyed were Falls Creek, Lake Mountain, Mount Baw Baw, Mount Buffalo, Mount Buller, Mount Hotham and Mount Stirling.

Survey days were chosen to cover the public holidays at the beginning of January 2011. In addition, days were chosen when there was an event holding at the mountain in mid January/February. For example, there was the mountain bike event at Mt Baw Baw in mid January and the ‘Cool summer’ music festival at Mt Hotham in mid February.

Visitor surveys were conducted on a face-to-face basis. Most visitors were happy to answer the surveys on the spot during an interview with NIEIR research staff.

Employee surveys were either dropped off to the employer and then collected after completion by the employee (the surveys were collected on the same day whenever possible) or by using the same face to face survey technique used for the visitor surveys.

Business surveys were either dropped off or posted to the businesses. The businesses were then visited by the survey team to collect the completed surveys.

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3.2.1 Visitor survey

The survey was composed of 38 questions. Not all of these questions needed to be answered by a single respondent as there were alternate questions for international and resident Australian visitors. The visitors’ survey was none-the-less extensive because of the attempt to capture as much data as was considered optimum to the veracity of the study.

NIEIR survey team members asked the respondent each of the questions that were relevant to them (depending if they were from overseas or they were an Australian resident) and completed the survey form during the interview. Each survey form completed identified location, date, weather conditions, name of survey staff and the number of people the respondent was with at the time of answering the questions.

In the event this turned out to be a highly successful method of collecting visitor data. The survey team was well briefed and experienced in survey and data collection, so the quality of data collection was high and also consistent in approach and interpretation.

Visitor surveys were conducted at the resorts, both outside in the open areas and inside resort buildings. Visitor surveys were also conducted in neighbouring towns, again in the street and within shopping centres and other public buildings.

The survey form is shown in Appendix A of this report.

Table 3.1 Survey statistics

2011

Total visitors covered by survey 4,726

Average group size 5.3

3.2.2 Employee survey

The surveys were conducted using the drop off and collection method or whenever possible by face-to-face controlled interviews.

3.2.3 Business survey

The surveys were conducted using the drop off and collection method during the summer months of January and February, although some employer surveys were posted to NIEIR in March. The interviews were carried out by the same NIEIR survey team that conducted the visitor surveys.

In summer time, only a limited number of businesses were open at the resorts. Therefore, many completed business surveys were collected in the surrounding towns. While visitors and employees were willing to answer their surveys, the NIEIR survey team found it far more difficult to get businesses to answer the surveys.

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4. Victorian Alpine resorts in summer: Visitor characteristics 2011

4.1 Visitor days

Total visitor days for the 2011 summer season are estimated at 375,561.

This figure was determined by sourcing visitor day estimates from the Victorian Alpine Resorts Management Boards and directly from resorts as well as from figures supplied by other key industry stakeholders.

Visitor days to Victoria are estimated as follows.

Table 4.1 Visitor days by place of residence

Residence Victorian visitor

days 2011 summer Proportion

New South Wales 45,067 11.9 Victoria 286,177 76.2 Queensland 13,520 3.6 South Australia 8,638 2.3 Western Australia 4,882 1.3 Tasmania 2,253 0.6 Northern Territory 751 0.2 Australian Capital Territory 5,633 1.5 Overseas 8,638 2.3 Total 375,561 100

4.1.1 Visitor trips

Table 4.2 shows the total visitor trips by place of residence.

Table 4.2 Visitor trips by place of residence

Place of residence Visitor trips to summer

Victorian resorts Proportion

New South Wales 26,764 9.8 Victoria 213,338 78.1 Queensland 9,171 3.4 South Australia 7,654 2.8 Western Australia 3,816 1.4 Tasmania 2,223 0.8 Northern Territory 408 0.1 Australian Capital Territory 4,655 1.7 Overseas 5,282 1.9 Total 273,312 100

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4.1.2 Survey counts

From the survey sample, about 75 per cent of visitors came from Victoria. This figure was far higher for the resorts of Lake Mountain, where some 94 per cent of all summer visitors resided in Victoria. For Mount Buffalo, 81 per cent of all summer visitors lived in Victoria.

Mount Baw Baw attracted a high proportion of visitors from New South Wales, Queensland and ACT (17.7 per cent, 7.6 per cent and 6.3 per cent). Mount Buffalo and Mount Hotham/Dinner Plain had the highest overseas visitor ratio (4.8 and 4.3 per cent).

The overseas summer visitors to the Victorian Alpine resorts came mainly from Europe and these countries included the United Kingdom, Austria, Ireland and Holland. This group comprised the largest proportion of the overseas visitors (54.2 per cent) while Asian and North American visitors, each accounted for 20.8 per cent. Comparing the winter and summer surveys conducted at the Victorian Alpine resorts, for the winter survey visitors from Asia comprised the majority of the overseas visitors (78 per cent) while European visitors comprised 13.6 per cent, North American 5.1 per cent and New Zealand 3.4 per cent. This finding highlights that there are important differences between winter and summer visitation patterns. More comparisons between seasons can be found in Appendix B in this report.

When analysed by visitors’ postcode of residence, the survey results showed the significance of particular regions to the Victorian resorts.

Table 4.3 Visitors’ place of residence by Australian postcode 2011 (per cent)

Rank Visitors to Victoria resorts in summer from Per cent

1 Melbourne 51.0 2 Ovens-Murray 7.3 3 Sydney 5.1 4 Goulburn 3.9 5 Murray 3.8 6 Barwon 3.8 7 Loddon 2.3

4.1.3 First timers

The proportion of first time visitors to the Victorian Alpine resorts in summer was about 14.9 per cent. In winter, this number was higher at 26.5. This suggests there is a consistent and dedicated group of summer visitors with the summer season in the Victorian Alpine regions attracting fewer new entrants than is the case for the winter season.

4.1.4 Activity types

From the survey results, sightseeing and bushwalking are the most popular activity in summer Alpine (26 and 22.6 per cent respectively). There was a high proportion of visitors participating in various types of summer sports, including mountain biking, road biking, running, swimming, boating and horse riding. Visitors were also attracted by specific sporting or cultural events held at the resorts.

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4.1.5 Prime purpose of visit

61.4 per cent of interstate visitors surveyed answered that they would have still visited Victoria if they were not visiting the Alpine resorts. The proportion for this indicator is much lower in the winter season when 26.8 per cent of interstate visitors answered that they would have still visited Victoria if they were not visiting the Alpine resorts.

Table 4.4 Interstate visitors, would you have visited at this time of year if you were not visiting the Alpine resorts? (per cent)

Summer Winter

Yes 61.4 26.8 No 36.4 70.0 Don't Know 2.3 3.2

In the summer season, 45.3 per cent of the visitors indicated that they had come to the Victorian Alpine resorts for a holiday. A high proportion of visitors (25.7 per cent) visited the resorts specifically to attend an event.

Table 4.5 gives the main reasons for interstate visitors visiting the Victorian Alpine resorts. This table also compares the answers from the winter and summer surveys. In summer around 50 per cent of all respondents stated they are visiting as a holiday and a further 26 per cent give their reason for the visit as attending an event.

Table 4.5 Interstate visitors’ main reasons for visiting the Victorian Alpine resorts (per cent)

Reason for visit Summer Winter

Visit friends/family 12.15 10.30 Business 3.27 1.50 To visit Alpine resorts/holidays 49.07 85.21 Accompanying a friend or relative 0.93 0.33 To attend a conference 0 0.17 To attend an event 25.70 1.66 Other 8.88 0.83

When interstate visitors were asked if their trip was either a substitute for a visit planned at another time or their trip had been extended specifically to visit the Alpine resorts, more than 90 per cent of visitors answered no in both the summer and winter surveys. More interstate visitors seem to have extended their stay in Victoria (15.5 per cent) during the summer season so they could visit the Victorian Alpine resorts (Table 4.7).

Table 4.6 Interstate visitors, is this a substitute for a visit to Victoria planned earlier or later this year, but changed to coincide with your holiday in the Alpine resorts? (per cent)

Summer Winter

Yes 8.2 4.6 No 91.8 95.4

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Table 4.7 Interstate visitors, did you extend your trip to Victoria to visit the Alpine resorts? (per cent)

Summer Winter

Yes 15.5 4.2 No 84.5 95.8

4.2 Spending patterns

4.2.1 Visitor expenditure

Visitors’ total expenditure is comprised of five separately measured components.

General

Meals, shopping, equipment hire, localised transport and other daily expense items. During the summer season gate entry is free for most Victorian Alpine resorts. But some of the visitors paid for events held in summer time, such as the music festival and cycling contest. The cost of events is included in the general expenditures.

Accommodation

For overnight stay visitors - both on and off mountain (resort).

Travel

The cost of travel to and from the resort area from other parts of Australia or overseas

Lift passes

Alpine lifts are selectively opened during the summer season when lifts are used by cyclists and other visitors

Table 4.8 contains the total estimated visitor expenditure at the Victorian Alpine resort regions and compares the summer and winter expenditures for the 2011 season.

Table 4.8 Visitors’ total expenditure ($ million)

Expenditure Victoria summer Victoria winter

General 68.5 278.4 Lift passes and associated expenses 6.6 90.6 Travel 5.5 164.1 Accommodation 14.8 103.2 State total 95.4 636.2

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Figure 4.1: Visitor expenditure categories, summer and winter season 2011 compared

Summer visitors to the Victorian Alpine resorts spent approximately $5.5 million on travel (compared to the winter season expenditure of $164.1 million). As well as there being fewer visitors in the summer season the proportion of visitors from Victoria during the summer season was higher, hence average travel costs in the summer season were significantly less than the average travel costs in the winter season.

When respondents were asked what they would have spent their money on if they had not visited the Victorian Alpine resorts, 40.1 per cent stated they would have spent the money holidaying elsewhere in Australia. Comparing this to the winter season, 30.6 per cent stated that they would have spent the money elsewhere in Australia. This suggests that winter season visitors are likely to be more dedicated and focussed on visiting the Alpine resorts than their summer counterparts. Only 8.3 per cent of the survey respondents in the summer season considered that they would have spent the money travelling overseas if they had not visited the Victorian Alpine resorts. When compared to the winter season survey respondents the proportion of respondents who stated they were likely to spend the money travelling overseas was higher at 17.1 per cent.

General, 71.8%

Lift passes, 6.9%

Travel, 5.8%

Accommodation, 15.5%

VIC Summer 2011

General, 43.8%

Lift passes and gate entry, 14.2%

Travel, 25.8%

Accommodation, 16.2%

VIC Winter 2011

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4.2.2 Accommodation

For visitors to the Victorian Alpine regions the average accommodation cost per night in the summer season was $38.30. This figure is much lower than the winter average accommodation cost per night recorded at $215.

As for the winter season, during the summer season, lodges were the most popular form of accommodation in the Victorian Alpine resorts. The next most popular type of accommodation was rented serviced apartments. Private residence and caravan are the third and fourth popular accommodation types selected by the survey respondents.

Table 4.9 Accommodation expenditure by place of residence ($ million)

Place of residence Victorian summer Victorian winter

New South Wales 2.12 9.8 Victoria 10.35 62.8 Queensland 0.75 6.7 South Australia 0.27 11.1 Western Australia 0.14 7.2 Tasmania 0.14 1.1 Northern Territory 0.03 0.5 Australian Capital Territory 0.51 0.5 Overseas 0.46 3.5 Total 14.78 103.2

The proportion of interstate and international visitors is smaller in summer season, when Victorians dominate visitation to the Victorian Alpine regions, than in the winter season. Visitors from NSW and Queensland make up the majority of interstate visitors in the summer season.

17

Figure 4.2: Accommodation expenditure by place of residence: summer and winter 2011

NSW, 14.3%

VIC, 70.0%

QLD, 6.4%

SA, 1.9%

WA, 1.0% TAS, 0.9%

NT, 0.2%

ACT, 3.5%

Overseas, 3.1%

VIC Summer 2011

NSW, 11.3%

VIC, 59.6%

QLD, 6.4% SA, 10.6%

WA, 6.9% TAS, 1.0%

NT, 0.5%

ACT, 0.5%

Overseas, 3.2%

VIC Winter 2011

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4.2.3 Spending by place of residence

During the summer season at the Victorian Alpine resorts and surrounding regions, visitors from Victoria spent the most on general expenditure items, that is, meals, shopping, equipment hire, local travel and other. Compare to the winter season 2011, interstate and overseas visitors spent much less. In winter season, interstate and overseas visitors spent more on meals, shopping, equipment hire and travel than visitors from Victoria.

Survey respondents were also asked to specify a daily expenditure total excluding travel, entry and accommodation.

Table 4.10 Comparison of summer and winter season 2011 general expenditure by place of residence (excluding accommodation and lift passes) – total ($ million)

Place of residence Victorian summer Victorian winter

New South Wales 5.42 20.9 Victoria 47.36 186.7 Queensland 1.72 12.9 South Australia 1.81 22.2 Western Australia 0.26 21.8 Tasmania 0.31 3.0 Northern Territory 0.07 0.9 Australian Capital Territory 0.44 2.1 Overseas 1.09 7.8 Total 58.49 278.4

4.2.4 Spending by source of funds

The proportion of trip expenditures funded by credit for trips to the Victorian Alpine Regions in the survey group was around 12 per cent. 71 per cent of visitors funded their visit from savings and around 17 per cent had funded the trip from the household budget. The winter survey results showed that the proportion of expenditure at the Victorian Alpine resorts funded from credit was around 15 per cent. For summer season trips 72 per cent of visitors funded their visit from savings and 12 per cent funded the trip from the household budget.

4.3 Length of stay

The average length of stay in the Victorian Alpine resorts (on mountain) in the summer season was 1.1 nights. The average length of stay in the summer season off mountain averaged 6.2 nights. The winter survey results showed that the average length of stay on mountain was 4.9 nights and off mountain was 4.4 nights. The summer season survey results suggest that visitors during the summer season prefer to stay in the nearby towns rather than at the actual resorts, and this is a significant benefit for towns close to the Alpine regions during the summer period.

Visitors to Mt. Hotham/Dinner Plain stayed longest at the resort during the summer season at an average of 1.5 nights and visitors to Mt. Buller spent the longest in nearby towns at an average of 6.5 nights.

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4.4 Return rates

4.4.1 First visit to any Alpine resort

76 per cent of first time visitors to Victoria Alpine resorts during the summer season stated they would visit again. This figure is higher in winter at 87 per cent. 9 per cent of first time visitors during summer season said that they would not return during summer compared to 4 per cent of first time visitors during winter season woo stated they would not return in winter.

4.4.2 Visited an Alpine resort before

In summer about 93 per cent of visitors who were not first-timers said they would visit an Alpine resort again. About 4 per cent said they would not return. These are very close to the winter survey results (93 per cent and 3 per cent).

4.5 Satisfaction levels

The highest level of satisfaction about their trip was from visitors from the Northern Territory, Tasmania and Western Australia. South Australian, Queensland and international visitors appeared to be the least satisfied with their visit to Victoria’s Alpine regions during the summer season.

Figure 4.3: Satisfaction level by place of residence

75% 80% 85% 90% 95% 100%

NSW

VIC

QLD

SA

WA

TAS

NT

ACT

OVERSEAS

Excellent or Good Average Poor or Awful

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Mountain biking satisfaction levels seem to be relatively poor, this finding is most likely influenced by poor summer weather conditions at time of survey at biking events.

Figure 4.4: Satisfaction level by activities

4.6 International Alpine resorts experience

44 per cent of Australian visitors to the Victorian Alpine resorts during the summer season had travelled to an overseas Alpine resort. Table 4.11 gives the percentage of visitors (survey respondents) by State of residence who answered they had visited an overseas Alpine resort.

Table 4.11 International resorts experience, by state of residence

Residence Percentage

New South Wales 56.1 Victoria 41.8 Queensland 34.4 South Australia 61.9 West Australia 45.5 Tasmania 50.0 Northern Territory 50.0 ACT 53.8

88% 90% 92% 94% 96% 98% 100%

Sightseeing

Mountain Biking

Bushwalking

Nature

Food/Wine

Others

Excellent or Good Average Poor or Awful

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4.7 Likelihood to visit the Victorian Alpine resorts during the winter season

66 per cent of visitors to the Victorian Alpine region during the summer season stated that they would visit the resorts during the winter season. The winter season survey results show that 42 per cent of winter visitors to the Victorian Alpine resorts said they would consider visiting the resorts during the summer season.

4.8 Summer season visitors, age and gender

For the under 30 age group more males visited the Victorian Alpine region during the summer season. For the over 30 year’s old age group more females visit Victorian Alpine region during the summer season.

Figure 4.5: Age group and gender of visitors to the Victorian Alpine resorts, summer season

Note: * Age groups were designed to align with a recent government practice.

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

0-17 18-24 25-29 30-39 40-49 50-59 60-69 70+

Male

Female

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4.9 Visitor household income

The predominant visitor income group to the Victoria Alpine resorts during the summer season is from households earning between $50,000 and $100,000.

Figure 4.6: Summer season visitor household income

Figure 4.7 shows that the major resorts attract the highest income households during the summer season, this is a similar pattern to winter season findings.

Figure 4.7: Summer season visitor household income by resort

Less than $20K, 5.6%

$20K-$35K, 5.9%

$35k-$50K, 9.3%

$50K-$80K, 22.5%

$80K-$100K, 21.3%

$100K-$125K, 15.2%

$125K-$175K, 12.6%

More than $175K, 7.6%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%

Mt Hotham

Mt Buller

Mt Buffalo

Mt Baw Baw

Lake Mountain

Falls Creek

Mt Stirling

Less than $20K $20K-$35K $35k-$50K$50K-$80K $80K-$100K $100K-$125K$125K-$175K More than $175K

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5. Victorian Alpine resorts summer season industry employees and business survey findings

5.1 Employee survey findings

5.1.1 Source of employees

In the summer season Victorian Alpine resorts employee survey, survey respondents were predominately Victorian residents. This is likely to demonstrate that the Victorian Alpine resorts are important generators of local employment in the Victorian Alpine region during the summer season.

5.1.2 Employment

Employment category

61.3 per cent of the survey respondents work on a full time basis and 53.3 per cent work on a permanent basis. The winter Victorian Alpine resorts employee survey showed that only 36.5 per cent of respondents were permanently employed and that 77.8 per cent of employees worked on a full time basis during the winter season. These findings indicate that during the summer season, while a smaller proportion of staff work as full time employees, a higher proportion are employed on a permanent basis. This finding again strengthens the case that the Victorian Alpine resorts are an important generator of local employment in the Alpine region.

Hours worked and income of Victorian Alpine resorts and associated regional employees

The employee in the region of the Alpine Resorts works an average of 38.4 hours per week during the summer season. After tax average weekly income was $690.4. This is lower than the winter season average weekly income of $745.

Expenditure by employees Victorian Alpine resorts

Table 5.1 Average weekly expenditure by employees Item Victoria amount summer ($) Victoria amount winter ($)

Rent 101.8 160.9 Other items (at resort) 220.3 259.0 Other items (at nearby towns) 248.0 351.2 Total 570.1 771.1

Average expenditures by employee during the summer season were generally lower per employee than during the winter season, this can partly be explained by the higher proportion of local residents working in the industry during the summer season.

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5.2 Business survey findings

5.2.1 Business type

The types of businesses that were surveyed included:

• equipment hire and retail operators;

• resort operators;

• hotels, lodges, motels, B&Bs and serviced apartments;

• retailers from larger supermarkets down to small outlets;

• transport operators; and

• other business types.

The businesses cover the spectrum from large resort companies employing over 1,000 staff and with annual turnovers in excess of $10 million to one-person operators turning over less than $50,000.

Around 12.9 per cent of the businesses surveyed also operated in other locations.

All businesses surveyed in summer Victorian Alpine area indicate that they also operate in winter season.

5.2.2 Business turnover

A summary of businesses surveyed by annual turnover and payroll is shown in Tables 5.2 and 5.3.

Table 5.2 Payroll

Dollars Per cent summer Per cent winter

Less than $50 K 50 31 $50–$125 K 18 27 $125 – 250 K 18 16 $250 – $375 K 9 7 $375–$500 K 5 7 $500 – 750 K 0 11 $750 – $1 million 0 0 $1 million plus 0 0

Table 5.3 Turnover

Dollars Per cent summer Per cent winter

Less than $50 K 33 27 $50–$125 K 8 20 $125 – 250 K 21 12 $250 – $375 K 17 5 $375–$500 K 8 17 $500 – 750 K 8 7 $750 – $1 million 4 3 $1 million plus 0 10

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6. The Victorian Alpine resorts industry summer season economic impact

This chapter uses NIEIR’s regional econometric model to assess the impact of the Victorian Alpine resorts summer season activity on the Australian economy. This is the same model used in the report, Economic significance of the Australian Alpine resorts winter Season 2011, to ensure comparability. It is also the same model, but with improved accuracy, used to calculate the economic contribution of the Alpine Resorts in the report, Economic significance of the Australian Alpine resorts 2005.

6.1 Economic evaluation: Model description and methodology

The sensitivity results for a Local Government Area (LGA) as a result of a shock to a given industry are derived using NIEIR’s integrated model of all 567 LGAs in Australia.

Briefly, the model has 49 industries for each LGA with each LGA having its own input-output/household income determination sub-model that are linked to all other LGAs by inter-regional trade flow relationships, by industry, journey to work structure and travel time budget weighted indicators for any variable in the model which determines the catchment outcome for a given LGA relative to all other LGAs in Australia.

For each industry the range of variables includes:

(i) hours of work, employment and dollar per hour of income for both residents and at the location or industry level within the LGA;

(ii) exports and imports (international and to/from any other LGA), consumption demand, investment, current government expenditure and via the input-output table inter-industry demand; and

(iii) floor space capacity in place across 20 categories including offices, entertainment, schools, health, factories, retail, wholesale, transport, etc.

At the household level a wide range of household types are projected, which allows for detailed socioeconomic evaluation of outcomes.

Net migration flows between LGAs are endogenous, which in turn also drives household type formation. Migration flows are also a function of the dwelling stock in an LGA.

Key coefficient structures in the model for trade flows and journey to work patterns by industry are a function of the development of relative and absolute floor space capacity (shops, offices, factories, etc.).

6.2 The model results

The results from the model are given in Tables 6.1. The key indicators are the two local gross products, headline GRP and Employment. Estimated Headline GRP for Victoria as a whole for the 2011 summer season is $93.7 million with the Alpine LGA providing over 40 per cent of this GRP. The summer season also generated around 955 employment opportunities, approximately 477 full time equivalent employment positions.

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Table 6.1 Summer season – impact on Victorian economy

Region Resident

employment

Resident factor cost –

$2011m

Industry factor cost –

$2011m

Headline GRP – industry

market prices – $2011m

Summer headline GRP as

a proportion of regions total

GRP

Alpine LGA 378.0 27.4 30.2 39.5 10.0%

Baw Baw LGA 109.0 6.3 6.4 6.8 0.5%

Mansfield LGA 270.1 19.4 21.6 29.2 8.4%

Murrindindi LGA 22.8 1.5 1.6 2.1 0.5%

Other Victorian LGAs 164.4 13.0 7.8 16.1 < 0.1% Victoria Total 955.9 67.9 68.4 93.7 < 0.1%

Local gross product (residents)

This is the sum of all directly distributed income out of value added accruing to local residents. Directly distributed income is wages and salaries plus mixed income. The income can be earned from employment within the LGA or in other LGAs. To this sum is added:

(i) ownership of dwellings surplus (that is, actual and imputed results); and

(ii) property income received by residents (interest and dividends) no matter from what jurisdiction the property income is derived.

Local gross product (industry)

Local gross product (industry) is the sum of directly distributed income out of value added generated by all industry activity within the boundaries of the LGA. To this sum is added the same (i) and (ii) components that were added to gross local product (residents).

Headline gross regional product

Headline gross regional product is total industry value added generated within boundaries of the LGA plus ownership of dwellings. It is, therefore, the sum of:

(i) wages, salaries and supplements;

(ii) mixed income;

(iii) depreciation allowances;

(iv) dividends and interest payments;

(v) corporate taxes and other direct corporate taxes;

(vi) indirect taxes; and

(vii) net profits.

A comparison of this report, Economic significance of the Victorian Alpine resorts summer season 2011, and the report Economic significance of the Australian Alpine resorts winter Season 2011 for Victoria is shown in Table 6.2. The summer season is roughly one sixth the size of the winter season in terms of GRP and expenditure. However, the summer season has a smaller impact when we consider the number of people employed and this is due to less intensity in employment activity and demand during the summer season. The Alpine resorts are particularly important to the resident employment of the region over the summer period. Winter visitors to the Victorian Alpine resorts place more demands on such things as

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lifts, equipment hire, training, snow making, grooming and general maintenance of runs, snow clearing, entertainment and accommodation and this increases the demand for employment in the winter season when winter ratios are compared with summer season. In winter, many workers come from outside of the region.

Table 6.2 Summer/winter comparison

Victoria Summer Winter Summer/winter ratio

Expenditure 95 636 15% GRP 94 570 16% Employment 956 9,754 10%

6.3 Comparison with 2005 study

The report, Economic Significance of the Australian Alpine Resorts 2005, recommended further investigation be undertaken across the Victorian Alpine resorts in the summer season as previously there had been no major research other than random surveys conducted for KPMG’s Economic impact of the Victorian Alps (2000) which calculated a significantly higher proportion of total economic activity across Victoria’s Alpine region for the summer period. The 2005 season NIEIR study based its summer season activity partly on the previous year 2000 report but with some adjustment. No summer surveys were conducted in 2005.

The detailed research conducted during the summer for this Economic significance of the Victorian Alpine resorts summer season 2011 report has enabled a more accurate assessment of the level of activity and benefits to the region that the summer season provides. The assessment in this report that the summer season represents around 16 per cent of the total economic activity generated by the Victoria Alpine resorts is more aligned with the findings of similar research by the National Ski Area Association (NSAA) in the United States.

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Appendix A

Surveys

29

30

31

32

33

Appendix B

Demographics comparison of summer and winter visitors

34

B.1 Interstate and overseas visitors

Of all the visitors who took part in the survey in Victoria Alpine resorts, 75.5 per cent of summer season visitors came from Victoria compared to winter season visitors when 72.8 per cent were from Victoria. The following graph compares visitors from interstate and overseas in summer and winter seasons.

Figure B.1: Comparison of interstate/overseas visitors to Victorian Alpine resorts

In the winter season there was a higher proportion of visitors from Queensland, South Australia, Western Australia and Tasmania. In the summer season there was a higher proportion of visitors from New South Wales and ACT. The ratio of overseas visitors to Victoria Alpine resorts in the winter and summer seasons is similar at 2.7 per cent.

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0%

NSW

QLD

SA

WA

TAS

NT

ACT

OVERSEAS

Summer Winter

35

B.2 Gender and age groups

A higher proportion of male visitors in the age groups under 40 visited the Victorian Alpine resorts in the winter season. This trend reverses with ageing.

Figure B.2: Comparison of age groups at Victorian Alpine resorts (male)

A higher proportion of female visitors in the age groups under 30 came to Victoria Alpine resorts in winter season. Again this trend reverses with ageing.

Figure B.3: Comparison of age groups at Victorian Alpine resorts (female)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

0-17 18-24 25-29 30-39 40-49 50-59 60-69 70+

Summer Winter

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

0-17 18-24 25-29 30-39 40-49 50-59 60-69 70+

Summer Winter

36

B.3 Household income

When summer and winter season visitors’ household income is compared the findings are mostly similar with the greatest difference occurring in the $80 - $100,000 household income group with a higher proportion of this group visiting the Victorian Alpine resorts during the winter season.

Figure B.4: Comparison of household income

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

Less than $20K

$20K-$35K

$35k-$50K

$50K-$80K

$80K-$100K

$100K-$125K

$125K-$175K

More than $175K

Summer Winter

37

Figure B.5: Proportion of visitors with household income greater than $80,000

The chart shows that during the winter season Mt Hotham has the greatest proportion of visitors with a household income of over $80,000 per annum while Mt Baw Baw has the highest proportion of this group during the summer season.

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%

Lake Mountain

Mt Baw Baw

Mt Buller

Falls Creek

Mt Hotham

Summer Winter

38

B.4 Satisfaction level

Comparing winter and summer season satisfaction levels across the Victorian Alpine resorts the greatest differences occur at Lake Mountain and Mt Baw Baw where the levels of satisfaction during the summer season or markedly lower.

Figure B.6: Proportion of visitors’ rate above average satisfaction by resort

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%

Mt Hotham

Mt Buller

Mt Buffalo

Mt Baw Baw

Lake Mountain

Falls Creek

Mt Stirling

Summer Winter

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