TOURISM SERVICES REVIEW

TOURISM SERVICES REVIEW

Prepared by: J Nolan, Director Economic & Community

September 2014

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1. INTRODUCTION

Northern Grampians Shire Council has determined that it is appropriate to undertake a review of services it provides on a regular basis to ensure it continues to meet community needs and legislation compliance in an effective and efficient way.

Reviews of services inform budget decision making and resource allocation.

The review methodology has regard for the framework developed for that purpose. However, due to the varying nature of services, emphasis is given to those critical aspects which relate to the particular service.

Consideration has been given to the following publication which has also been used as a guide for this review:

Australian Centre of Excellence for Local Government (ACELG) “Service Delivery Reviews in Australian Local Government 2012, Volume 1 Discussion Paper.”

The Local Government Act 1989 also provides that in respect of its services, Councils must comply with the Best Value Principles as described in Section 208B of the Act.

“The Best Value Principles are:

(a) all services provided by a Council must meet the quality and cost standards required by section 208D;

(b) subject to sections 3C(2)(b) and 3C(2)(e), all services provided by a Council must be responsive to the needs of its community;

(c) each service provided by a Council must be accessible to those members of the community for whom the service is intended;

(d) a Council must achieve continuous improvement in the provision of services for its community;

(e) a Council must develop a program of regular consultation with its community in relation to the services it provides;

(f) a Council must report regularly to its community on its achievements in relation to the principles set out in paragraphs (a), (b), (c), (d) and (e).”

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2. SCOPE

This review comprises the following elements of tourism services:

i. Provision of Visitor Information Services.

To a lesser extent the review considers other elements of tourism which are primarily provided by others but which Council has an interest in, including:

ii. Tourism marketing iii. Membership of Grampians Tourism

This review does not include events or events management. Whilst this activity is directly related to tourism, it is not the subject of this review.

In June 2014, Northern Grampians Shire Council considered a report on the tourism services review and resolved as follows:

That Council:

1. notes the observations contained in the tourism services review;

2. provides in principle support for the Grampians Tourism Digital

Project; and

3. undertakes further investigation into models of tourism services

provision.

This report is an update of the report that was previously presented to Council in June 2014, and responds to the Council direction to undertake further investigation into the models of tourism services provision and is detailed in section 3.4 of this report.

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3. BACKGROUND

3.1 Tourism in Northern Grampians Shire

The Grampians National Park provides a destination for naturebased tourism and is the principle tourism product in the Northern Grampians Shire. This product is supplemented by a range of other offerings, including food and wine, accommodation, adventure water sports, retail, heritage, arts and culture, indigenous culture, and major events. There are opportunities for dispersal of visitors across the broader region and in the various towns and villages which also offer a range of complimentary tourism products.

Tourism makes an important contribution to the economy. The direct and indirect annual output of tourism in the Grampians region is in the order of $224M (Grampians Tourism Strategic Plan 20122016). Within the Northern Grampians Shire, tourism generates $78M (5.7%) of output, and supports 472 (9.9%) jobs (REMPLAN April 2014)

This economic benefit is driven by:

793,000 domestic overnight visitors spending over 2.14 million nights. 34,200 international overnight visitors and 1,102,000 domestic day trip visitors.

(‘Travel to the Grampians year ended June 2014’ Grampians Tourism TRA Research)

3.2 Service Description

Northern Grampians Shire council provides visitor information services to visitors from centres at Halls Gap, Stawell and St Arnaud. Whilst information sought by visitors varies, the service provides facetoface contact with visitors to the centres (VICs) as well as by phone contact, email, and through the distribution of publications and brochures and digital information.

These services also provide a means by which local tourism businesses can market their products, and Council has a Tourism Industry Participation Program (TIPP) and policy which provides for this service through the VICs.

Council provides financial and officer support to local tourism organisations including Halls Gap Tourism (HGT), StawellBiz and St Arnaud Tourism.

Importantly, Council is a member of Grampians Tourism (GT) and participates in the Grampians Tourism Board. GT provides a range of services on behalf of its members and stakeholders and provides a coordinated approach to marketing, product

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development, infrastructure investment and industry development for the Grampians Region. (Grampians Tourism Strategic Plan 20122016).

3.3 Levels of Service (LOS)

3.3.1 Indicators of LOS

The primary service provided by Council is through the VICs. The key quantitative indicator used to measure the level of service is the number of visitors receiving the service.

Qualitative indicators are somewhat more subjective, and for the purpose of this review, visitor feedback is the key qualitative indicator of service, and in particular:

i. an annual survey of visitors; ii. visitor responses to research undertaken by Tourism Victoria and Grampians

Tourism; iii. these indicators are discussed in more detail in other parts of this report.

The table below provides approximate numbers of visitors serviced annually.

VIC Number of Visitors (annually) Halls Gap 100,000* Stawell 10,000 St Arnaud 5,000

Approx total average annual visitors: 115,000

*Up to November 2013 when VIC was temporarily relocated to Brambuk.

3.3.2 Issues influencing LOS

The total number of visitors serviced annually varies from year to year at each centre. These variations can be due to seasonal issues relating to natural disasters, events and the level of marketing, broader economic influences such as the Global Financial Crisis and the value of the Australian dollar, and growth in the use of digital technology for tourism information.

More specifically, the following events have impacted significantly on visitors to the region:2006 bushfires

2009 Global Financial Crisis 2010 and 2011 floods and landslides 2014 bushfires 20112013 high Australian dollar

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In approximately 2010 the VIC at Stawell was relocated from the ‘Old Shire Hall’ building on the Western Highway to its current Central Park location on Seaby Street where it is colocated with the Stawell Gift Hall of Fame Museum. This relocation has seen the numbers of visitors serviced increase by around 30% (refer Appendix 4).

In November 2013 the Halls Gap VIC was temporarily relocated to the Brambuk Cultural Centre to enable the construction of the Halls Gap Community Hub located in the same precinct as the VIC. Prior to the relocation, a benefits and impacts paper was prepared, and which anticipated a reduction in the number of visitors to be serviced from the relocated centre, but which also anticipated to draw additional visitors to Brambuk and in turn generate increased revenue and operational efficiencies to Brambuk. The service was supplemented with a mobile booth in the town centre during busy periods.

For the 10 month period, November 2013 to August 2014, the number of visitors serviced by Northern Grampians Shire Council staff was approximately 58% of visitors accessing the services when compared with the previous year.

The total number of visitors to Brambuk however increased by 37% (up around 40,000) during the colocation period, and Brambuk revenue has increased by around 12%. (Source Jeremy Clark, CEO)

The benefits of the colocation of accredited visitor information services combined with services and information relating to the National Park has provided a “one stop shop” for visitors, including access to the significant Brambuk assets and facilities. The location of the centre 2.2 km south of the central Business Area has been a deterrent for some visitors who have sought information from other sources such as local businesses which has contributed to the reduced numbers of visitors to the VIC.

Advances in digital technology has significantly influence the way visitors access tourism information. “Current Market analysis states that 85% of consumers do their holiday research online prior to leaving home and then travel with web connected devices.” (Grampians Tourism Strategic Plan 2012 2016 Annual review 10 April 2014)

“The use of digital tools is rapidly spreading to all demographics. Increasingly, a sophisticated layer of digital support is becoming an essential component to tourism development in any region.” (AEC group GD Destination Plan and Investment Roadmap draft April 2014).

Grampians Tourism with the support of member Councils has initiated a Regional Digital Project which seeks to develop a central digital tool to coordinate, promote and inform visitors to the region. This priority project is considered essential if Grampians is

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to successfully compete for visitation and tourism investment in competition with other tourism regions.

This advancing technology, will replace traditional methods of tourist information services. However, whilst digital technology is advancing, albeit rapidly, there is evidence that many visitors also seek reinforcement through traditional information methods such as face to face advice and through maps.

As digital information improves this demand is likely to reduce. (Victorian Visitor Information Centres Futures Project October 2013 Urban Enterprises Section 3.5).

Council has provided formal support for the Grampians Tourism Digital Project, and, in the context of this rapidly changing information environment, Council has sought to consider other models of service provision, and its role in this space.

3.3.3 Performance

The Victorian Tourism Industry Council (VTIC) undertakes an annual survey of VIC’s. The survey specifically seeks to understand and benchmark VIC’s and the capacity of their respective Councils to meet consumer needs as identified by VTIC. In 2014, the Northern Grampians survey identified that 75% of indicators recorded a higher capacity which is well above the State recorded aggregate of 56% for LGAs with a population more than 25,000.

Whilst this survey is based entirely on self assessment by individual LGAs and many of the indicators are somewhat subjective, it is useful for comparative purposes. These results may be indicative also of the fact that Council has to date provided a significant financial contribution to the services.

In respect of the performance of Council’s VIC’s from the point of view of the visitor, a survey was conducted in October 2009 by the Australian Government, Tourism research Australia (Appendix 9) which was a visitor profile and satisfaction survey of the Grampians visitor. Whilst this research is now somewhat out of date (particularly having regard to the digital information discussion above), it is useful on many fronts. In particular, understanding if the visitor’s expectations were met in respect of the information services. The survey identified that:

80% of visitors said that information services in the Grampians were important or very important.

83% of visitors said they were either fairly satisfied (27%) or very satisfied (58%) with the information services in the Grampians.

While Northern Grampians is one of the five LGAs in the Grampians region, Halls Gap is the most significant VIC in respect of number of visitors.

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Annually NGSC staff undertake a survey of visitors to understand their level of satisfaction with the services and a survey undertaken in 2012 shows a high level of satisfaction with the services received by those surveyed. (Note that this survey information preceded the period during which the Halls Gap VIC was located at Brambuk).

Recent research by the Victorian Tourism Industry Council (VTIC) identified that “there is little data available that tracks visitor experience, satisfaction and economic impact from VICs” (Victorian VICs Futures Project December 2013). However the prime purpose of a VIC is to “enhance the visitor experience, encourage visitors to stay longer and undertake additional activities...and encourage visitors to return to the region” . The extent to which this occurs, and the broader economic benefits attributable to the VICs, however are not easily measured. Any change in the numbers of visitors to the region can not reasonably be measured against the performance of the VIC in encouraging visitors to stay longer. For example, during the 12 month period to the end of June 2014 domestic visitation to the Grampians region rose by 4.4% and domestic overnight stays increased by 4.1%. This is despite the reduced visitation to the Halls Gap VIC (while it was located at Brambuk for much of the period), and the January 2014 bushfires.

Having regard to the above past and recent research, in respect of performance it may however be concluded that:

While there is some evidence that visitors to the Grampians have been satisfied with the level of information services provided to them, the changing needs of visitors, necessitate a new focus towards the provision of a coordinated online information service.

3.3.4 Service costs

The income and expenditure associated with the operation of the three Council run VIC’s in Northern Grampians is outlined in the table below.

Actual 1011

Budget 1011

Actual 1112

Budget 1112

Actual 1213

Budget 1213

Actual 1314

Budget 1314

Budget 1415

Income (23,533) (32,000) (9,701) (10,000) (34,640) (40,000) (14,802) (43,600) (40,000)

Expenditure 347,655 370,993 335,939 397,597 341,599 368,587 346,174 364,660 330,387

Net cost to Council

324,122 338,993 326,238 387,597 306,960 328,587 331,372 321,060 290,387

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In respect of the revenue, this has principally been raised through the sale of park maps, and whilst the VIC is located at Brambuk these maps are able to be purchased directly from Brambuk resulting in reduced sales transaction in 13/14.

Whilst there has been attempts to keep the net operating cost to Council down over recent years, and particularly through the use of volunteers at Stawell and St Arnaud, the level of funding from Council necessary to provide the service on current service levels is in the order of $330,000 to $350,0000.

While this cost is operational only, and excludes capital renewal cost of buildings, furniture and equipment, corporate and other overheads etc., the unit cost is reflected below and its comparison with other VICs in Victoria.

NGSC op cost for 3 VICs=$350,000/115,000visitors= $3.04 per walk in visitor

State average cost of VIC per walk in visitor:

for VICs with 75,000125,000 visitors = $3.30 per visitor

for VICs with < 15,000 visitors = $9.20 per visitor(source VTIC Victorian VICs futures project Dec 2013)

While the Northern Grampians unit costs compare favourably with the state averages above, some change is necessary if the 2014/201 budget is to be achieved.

Furthermore, following extensive research in what is commonly referred to as the “Wheelan Report”, Council has been identified as financially unsustainable, due primarily to its large asset base, small population and limited capacity to raise revenue. Council’s financial position necessitates other more cost effective models to be considered.

3.3.5 Best Practice

A study completed by the Victorian Tourism Industry Council (VTIC), titled: “Victorian VICs Futures Project December 2013”, reported on an analysis of best practice through research including survey of the 73 accredited VICs in Victoria. While a number of its findings are referenced throughout this report, its key research findings include:

the majority of VICs are funded by Local Government with >80% owned and operated by local government

other funding sources can include industry memberships, sales of merchandise, and commissions from bookings

well resourced VICs provide a broad range of activities including emergency information, research, tourism business mentoring and training, engaging with residents and markets, resident and business attraction, providing a hub for regional tourism.

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the number of walk in visitors to VICs is declining and likely to continue to decline as digital information improves

there is no single model for best practice management of a VIC it is important for VICs to be actively engaged with Regional Tourism Boards

and the local tourism industry to ensure the messages are accurate, relevant, and consistent with regional marketing.

51% of VIC buis in Victoria are in a stand alone building, and 21% are part of a local attraction or iconic building, 13% part of other council offices/building, and 8% colocated with another business.

In the Grampians, the number of enquiries as a proportion of total visitors to the region is 20% compared with the state average of just 11%

The vision for the VIC network provided by VTIC through the study has the following components:

Role of VICs to be broadened beyond visitor information to “a hub servicing visitors, residents, and industry”.

Leadership is required from government and organisations to link more effectively with regional marketing initiatives focused on consumer needs and research.

Management and administration to transition to a regional networked approach of gateway and satellite visitor information delivery due to limited resources, the need to create stronger links and consistent messaging

Visitor consumption and needs demand improved online and digital information Design of VICs should be “uncluttered, streamlined and visitor friendly” with

reduced printed material. Digital information is embraced by VICs including the expectation of WiFi for

visitors.

The Futures study also provides a number of case studies which showcase “best practice centres” such as:

Mansfield where the centre is operated by the Mansfield Mt Buller Tourism Association, and

Frankston which is contained in a new $25M waterfront development, and services around 90,000 visitors and provides a range of retail, events, accommodation booking and conference coordination activities.

The accommodation booking service previously provided through the Halls Gap VIC ceased following community perceptions regarding conflict of interest. This service was a source of revenue for Council receiving a commission on accommodation bookings. The VTIC Futures study identified that the “cost of providing a booking service often

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outweighs the revenue generated from the commissions, and the booking market is crowded with many well developed services such as wotif”

In 2002 Sinclair Knight Merz undertook a review and recommended additional services be incorporated into the Halls Gap VIC Precinct forming a ‘Rural Transaction Centre’. These services may include professional accounting, taxation, secretarial, legal and other services as well as retail. It is suggested that these additional services be explored through seeking expression of interest in the use of the Halls Gap Hub Precinct once the construction works are completed. These activities provide complimentary services to the community, and an opportunity to reduce the financial burden on Council.

3.3.6 Staff input

During the course of this review staff have been consulted and have identified opportunities to improve services and reduce the financial burden on Council. The details of these suggestions are circulated to Council separately, however the suggestions include:

1. Retain accredited status at all centres and introduce revenue opportunities in Halls Gap to partially offset operational costs. Increase volunteer base. Revenue opportunities include:

Retail – regional produce and products e.g. Olive oil, nuts, photo postcards, craft, maps, wine (would require a licence) etc.

Display & sell local artwork for commission. VLine ticketing. Event ticketing. Activity ticketing. Create activity passports – e.g. Zoo, Adventure golf and Brambuk tour:

Rock climb/abseil and horse riding or quad bike ride. Could be discounted for local residents to enable us to tap into the VFR (visiting friends and relatives) market.

2. Retain accreditation status in Halls Gap and operate Stawell and St Arnaud as nonaccredited. This still provides access to OVGs, maps etc. which ensures accurate and uptodate information is distributed from all centres. This option would allow for reduced operating hours in Stawell and St Arnaud during quiet times. Implement revenue opportunities in Halls Gap and increase volunteer base as above.

3. Operate all centres as nonaccredited. This gives the opportunity to reduce operating hours but, this option means we would no longer have automatic access to official printed material unless we sourced it ourselves and in some instances pay for delivery. All centres would be delisted from Tourism Victoria

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and Visit Grampians websites and excluded from free listings in all official printed material. Vicroads directional signage would be removed.

The staff identified a number of other ways to enhance the service including:

We need to be able to deliver to those who want face to face engagement (older population, international visitors), and those who will only use the VIC to access digital content themselves (savvy, younger generations). At a recent regional Volunteer Summit there were only 5 out of 56 delegates who use social media or have a smartphone (volunteers being predominantly older citizens).

Enhance Grampianstravel.com.au website to include QR reader symbols to enable targeting particular pages.

Consider having a twitter account – “Ask Halls Gap”, “Ask Stawell”, “Ask St Arnaud” so that up to date information can be relayed – promotions, special offers etc.

Utilise the Halls Gap Community & Tourism Hub to service visitors, residents and communities e.g. Council payments.

We need to embrace the need to raise revenue to help sustain the service. Conduct “Volunteer Drives” for Stawell and Halls Gap to reduce the amount of

wages required. Currently NGSC staff contracted hours are – 1 x full time (80 hrs. per fortnight), 1 x part time (64 hrs. per fortnight), 3 x part time (32 – 64 hrs. per fortnight each – currently being used to capacity most fortnights). NB. Weekend penalty rates do NOT apply.

3.3.6 A vision for the future and Service Targets

Council’s vision in the first instance needs to have regard to its resource allocation within the context of its own sustainability, and determine the appropriate level of financial subsidy it provides.

It needs to seek to meet the needs of visitors and capture its share of the tourism market, thereby achieving improved economic outcomes for the shire, and the region.

To achieve this outcome, Council must work cooperatively with other LGA’s in the region, with Grampians Tourism and the local tourism industry to ensure messaging is accurate, relevant and consistent.

The region must embrace digital technology, and cooperate with Grampians Tourism to deliver the regional digital project, Grampians Online.

The models outlined further in this report have regard to the above vision and a number of service targets are outlined in the table below:

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3.3.5 Summary of Visitor Information Service Levels and Performance Targets

indicator performance measure

target comment

visitors to the Grampians Region

level of visitation as measured by TRA

survey

increase in visitation resulting

in improved economic outcome

there are influences outside NGSC control

information meeting the needs

of visitors

level of uptake of info

services

overall increase in take up

of information services (walk in and digital)

implementation of GT

digital project Overall increased take up of online

services

visitors have access

to information

information access options available

for visitors

improved visitor access to information

improved online access to public

wifi

NGSC sustainability

service cost efficiency

decrease in cost per

visitor accessing information

existing cost of VICs is approx $3.04 per visitor

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3.4 Models of Service Delivery

In order to achieve the targets described above, the following models of service delivery are provided for Council’s consideration:

HALLS GAP

3.4.1 Stand alone Model (Model 1)

Location of Services

Halls Gap VIC building, Grampians Rd, Halls Gap

Accreditation

This model meets VTIC accreditation requirements for VIC’s operates 7 days per week.

Resourcing

The Halls Gap VIC is staffed by permanent Council staff and supplemented by either contract employees or casual staff.

Cost of service

The cost of this service model (combined with St Arnaud and Stawell) is in the order of $350,000 per annum and represents status quo prior to the temporary relocation to Brambuk in 2013.

Additional Services

It is intended that the V/Line booking service be taken up by the Halls Gap VIC once it relocates back to the central VIC location in Halls Gap. This service will return a small amount of additional revenue to Council and add value to the existing service provided.

Selling of Park maps has been a part of the information service provided prior to the temporary colocation at Brambuk

Key advantages

custom built building location is central and accessible accreditation enables access to VTIC services provides high level of service to visitors retention of experienced staff preferred model of many residents and businesses

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provides opportunity for VIC staff to oversee / manage Hub precinct

Key disadvantages

high cost of service is above Council’s sustainable financial capacity arguably over sevices visitors where some information can be provided in other

formats foregoes opportunity for the building to be used for other uses benefiting Halls

Gap, visitors and the community car parking is adequate but limited doesn’t address the opportunity to coordinate with GT and /or HGT to provide

coordinated service Park information campsite bookings and other park services would still need to

be obtained from Brambuk

Implications

existing skilled staff are retained the cost of the service is in the order of $350,000 per annum some fragmentation of visitor, park and regional information / messaging is likely

3.4.2 Retail enhanced VIC service (Model 2)

Location of Services

Halls Gap VIC building, Grampians Rd, Halls Gap

Accreditation


Resourcing

The Halls Gap VIC is staffed by permanent Council staff and supplemented by either contract employees or casual staff.

Cost of service

The cost of this service model (combined with St Arnaud and Stawell) is in the order of $350,000 per annum and represents status quo prior to the temporary relocation to Brambuk in 2013.

Accreditation

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Additional Services

This model provides a coordinated information service including park and other visitor information in one location

significantly increased retail offerings and services which bring in additional revenue and reduce the Council subsidy. Such retail may include:

Regional produce and products e.g. Olive oil, nuts, photo postcards, craft, maps, wine etc.

Display & sell local artwork for commission. VLine ticketing. Event and activity ticketing. Create activity passports – e.g. Zoo, Adventure golf and Brambuk tour:

Rock climb/abseil and horse riding or quad bike ride. Could be discounted for local residents to enable us to tap into the VFR (visiting friends and relatives) market.

Sale of products that support outdoor activities

Other VICs operated on a similar model

This is a similar model to the Frankston VIC.

Key advantages

custom built building location is central and accessible accreditation enables access to VTIC services provides high level of service to visitors with opportunity for sales VIC location is preferred by many residents and businesses provides opportunity for VIC staff to oversee / manage Hub precinct reduced Council financial subsidy staff retained, although skill development may be required for retail

Key disadvantages

Retail activity would require additional management to ensure business approach, financial control, cash handling procedures, stock management, increased creditor payments, etc.

If retail is not profitable the cost of the whole service remains high and above Council’s sustainable financial capacity

arguably over sevices visitors where some information can be provided in other formats

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foregoes opportunity for the building to be used for other uses benefiting Halls Gap, visitors and the community, including other business activity matched to visitor demand.

car parking is adequate but limited doesn’t address the opportunity to coordinate with GT and /or HGT to provide

coordinated service additional seasonal staff may be required to match retail demand Park information campsite bookings and other park services would still need to

be obtained from Brambuk

Implications

the net cost of the service is reduced existing experienced staff are retained some existing businesses may see the retail as competition this model does not guarantee the retail activity will be profitable, and thus the

ned for appropriate business rules to be established. some fragmentation of visitor, park and regional information / messaging is likely Council would need to ensure that any retail or commercial activity was in

accordance with its legal obligations with the crown and funding partners.

3.4.3 VIC operated by Council at Brambuk (Model 3)

Location

The temporary colocation of VIC services at the Brambuk Cultural Centre (supplemented by mobile/pop up stall in town on busy days), extended on the basis of a long term agreement with Brambuk.

Resources

The service would be resourced using existing Council staff. The level of staffing required is slightly less than for Model 1, due to less visitors being serviced and opportunities for cooperation and resource sharing at Brambuk.

Cost

The cost of the service would be reduced by around 1020% due to reduced staffing needed at Brambuk. $300,000 subject to the Brambuk agreement.

Additional Services

It is intended that the V/Line booking service be provided from Brambuk, but this may require review as the service may be better suited in central Halls Gap.

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Colocation with Brambuk provides a one stop shop for visitor and park information, as well as exposure of indigenous cultural activities.


Approximately 21% of VICs in Victoria are operated as part of an attraction or iconic building. Examples include Warrnambool where the VIC is located at Flagstaff Hill, or Portland in the Maritime Discovery Centre.

Key advantages

iconic building incorporated with other tourism product location is accessible with significant parking, landscaping, and other public

assets maintenance of accreditation enables access to VTIC services provides coordinated service to visitors as one stop shop for visitor and park

information and services with opportunity for sales through Brambuk VIC location is supported by Brambuk and some businesses provides opportunity for Hub precinct to be utilised for a range of other services

meeting needs of community and visitors, and providing financial return to Council

reduced Council financial subsidy (when compared with model 1) Experienced staff retained Benefits to Brambuk due to colocation

Key disadvantages

Distance from the centre of Halls Gap is a barrier for some people to visit particularly those reliant on public transport

Reduced number of walk in visitors serviced with visitor information, and arguably less opportunity for economic flow on benefits

doesn’t address the opportunity to coordinate with GT and /or HGT to provide coordinated service, although GT are located in the Brambuk precinct.

less suited to providing emergency service information

Implications

Number of visitors serviced is lower than at central location VTIC accreditation maintained Net cost of the service is in the order of $300,000 Existing Council owned building can be used for other purposes including leased

for appropriate commercial tourism purposes resulting in financial return to Council in the order of $20K $50K per annum.

3.4.4 VIC operated by others at Brambuk (Model 4)

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Location

VIC Services to be provided by another operator and located at Brambuk.

Resources

Responsibility for and management of staffing would be by others. The operator could reasonably be Brambuk itself providing an integrated service, or other party, and may require Council to undertake a tender process in accordance with section 186 of the Local Government Act, and the operator would likely require a financial subsidy by Council.

Cost

Another operator may reasonably be able to provide the service in a different way and at a lower cost than Model 3

Accreditation

VTIC accreditation would be at the discretion of the operator.

Additional Services

Colocation with Brambuk provides a one stop shop for visitor and park information, as well as exposure of indigenous cultural activities.


Approximately 21% of VICs in Victoria are operated as part of an attraction or iconic building. Examples include Warrnambool where the VIC is located at Flagstaff Hill, or Portland in the Maritime Discovery Centre.

Key advantages

iconic building incorporated with other tourism product location is accessible with significant parking, landscaping, and other public

assets maintenance of accreditation enables access to VTIC services provides coordinated service to visitors as one stop shop for visitor and park

information and services with opportunity for sales through Brambuk VIC location is supported by Brambuk and some businesses provides opportunity for Hub precinct to be utilised for a range of other services

meeting needs of community and visitors, and providing financial return to Council

reduced Council financial subsidy (potentially) Experienced staff could be retained and transmitted across to new operator /

employer

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Benefits to Brambuk due to colocation Council no longer responsible for the management and operations

Key disadvantages

Distance from the centre of Halls Gap is a barrier for some people to visit particularly those reliant on public transport

Reduced number of walk in visitors serviced with visitor information, and arguably less opportunity for economic flow on benefits

doesn’t address the opportunity to coordinate with GT and /or HGT to provide coordinated service, although GT are located in the Brambuk precinct.

less suited to providing emergency service information staff redeployment redundancy or transmission to new employer may result in

loss of skills, and likely additional one off costs. willing party to take on service is to be identified and agreement subject to

tender process.

Implications

Number of visitors serviced is lower than at central location VTIC accreditation maintained Level of Council subsidy unknown Existing Council owned building can be used for other purposes including leased

for appropriate commercial tourism purposes resulting in financial return to Council in the order of $20K $50K per annum. Council would need to ensure any commercial activities at the Hub are conducted in accordance with any legal obligations it has to the crown and funding partners.

To satisfy the requirement sof the Local Government Act, Council may need to undertake a public tender process

3.4.5 VIC operated by others in the Hub Precinct (Model 5)

Location

VIC Services to be provided by another operator and located at the central Halls Gap Hub precinct.

Resources

Responsibility for and management of staffing would be by others. The operator could reasonably be a tourism organisation such as Grampians Tourism, or Halls Gap Tourism. The operator would likely require a financial subsidy by Council.

Cost

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Another operator may reasonably be able to provide the service in a different way and at a lower cost than Model 1

Accreditation

VTIC accreditation would be at the discretion of the operator.

Additional Services

An integrated service could reasonably be supplemented by some other tourism, retail or community services.


VICs operated by other Regional Tourism Organisations include Mansfield where the centre is operated by the Mansfield Mt Buller Tourism Association, and Ballarat where the centre is operated by Ballarat Regional Tourism

Key advantages

custom built building location is central and accessible provides high level of service to visitors, and better potential for information and

messaging to be accurate, relevant and consistent. preferred location of many residents and businesses Potential to maximise the number of walk in visitors serviced with visitor

information, and arguably more opportunity for economic flow on benefits provides opportunity for operator also to oversee / manage Hub precinct reduced Council financial subsidy (potentially) Experienced staff could be retained and transmitted across to new operator /

employer Council no longer responsible for the management and operations

Key disadvantages

Foregoes opportunity for the building to be used for other uses benefiting Halls Gap, visitors and the community

Car parking is adequate but limited Park information campsite bookings and other park services would still need to

be obtained from Brambuk staff redeployment redundancy or transmission to new employer may result in

loss of skills, and likely additional one off costs. willing party to take on service is to be identified and agreement negotiated

Implications

Service provider to be identified and contract negotiated

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Council lose some control over service levels Level of Council subsidy unknown

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St ARNAUD

3.4.6 St Arnaud VIC operation to remain unchanged (Model 6)

Location

This model assumes that the VIC will remain in its current location in the heritage precinct opposite Queen Mary Gardens

Resourcing

The centre is operated principally by volunteers with and coordinated by Council staff

Accreditation

This model assumes accreditation be maintained, but may also allow for a “non accredited” service, and thereby operated on reduced number of days / times.

Key advantages

low cost operation due to volunteer effort high degree of local ownership

Key disadvantages

high number of different volunteers means messaging is not always consistent coordination of volunteers

Implications

status quo is unlikely to create any community concerns Council responsible for ongoing volunteer coordination and management

3.4.7 Relocation of VIC to St Arnaud Customer Service Centre (Model 7)

This model assumes that the St Arnaud VIC is relocated to the St Arnaud Customer Service Centre.

Further community engagement would be needed particularly with the volunteers before deciding on this model.

Resourcing

This model assumes volunteers would continue to have a role at St Arnaud, but has flexibility to enable Council Customer Service staff to provide information services when volunteers are not able to be sourced.

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Cost

There would be minimal cost implications except that there would be increased demand on existing Customer Service staff which potentially would translate to additional costs.

Accreditation


Implications

Modifications needed to the Civic Precinct to accommodate services (in conjunction with planned alterations).

More reliable service model due to the increasing difficulty in sourcing volunteers.

Allows for the former Lands Office building to be used for other appropriate purposes (including leased for commercial purposes) providing a financial return to Council. (Subject to identifying an interested party.)

STAWELL

3.4.8 Stawell VIC located in the Hall of Fame Building (Model 8)

Location

This model assumes that the VIC will remain in its current location in the Hall of Fame Building.

Resourcing

The centre is operated principally by volunteers and coordinated by Council staff, and staff operate the centre approximately one day per week.

Accreditation


Key advantages

low cost operation due to volunteer effort high degree of local ownership significant advantages to Athletics Club and access by visitors to the historic

displays

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Key disadvantages

high number of different volunteers means messaging is not always consistent coordination of volunteers

Implications

status quo is unlikely to create any community concerns Council responsible for ongoing volunteer coordination and management

The Stawell VIC was relocated to the Hall of Fame after an extensive review following the recent major upgrade to the building. The only service alteration that is suggested for consideration is to operate the centre as a “non accredited’ centre and open on reduced days (quieter periods) thereby reducing the demand on volunteers and potentially reducing the cost to Council without significant loss of visitation.

Conclusion

The tourism sector is the fourth largest employer in the NGSC and is subsidised by Council in the order of $420,000 per annum of which approximately $350,000 is through the provision of information services to visitors.

The information needs of visitors is changing and there is a greater demand for online information.

Several service models are outlined in this review for Council consideration.

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Documents

TOURISM SERVICES REVIEW