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AuthorsAuthorsAuthorsAuthors
Todd Denham
Fiona Dunn
Reviewed ByReviewed ByReviewed ByReviewed By
Mike Ruzzene
© Copyright, Urban Enterprise Pty Ltd, August 2008.
This work is copyright. Apart from any use as permitted under Copyright Act 1963, no part
may be reproduced without written permission of Urban Enterprise Pty Ltd.
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Filename CCA RTO Discsussion Paper 20120120
Version 2.4
Last Saved 25 January 2012 5:35 PM
Last Printed 27 January 2012 9:20 AM
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DisclaimerDisclaimerDisclaimerDisclaimer
Neither Urban Enterprise Pty. Ltd. nor any member or employee of Urban Enterprise Pty. Ltd. takes
responsibility in any way whatsoever to any person or organisation (other than that for which this report has
been prepared) in respect of the information set out in this report, including any errors or omissions therein.
In the course of our preparation of this report, projections have been prepared on the basis of assumptions
and methodology which have been described in the report. It is possible that some of the assumptions
underlying the projections may change. Nevertheless, the professional judgement of the members and
employees of Urban Enterprise Pty. Ltd. have been applied in making these assumptions, such that they
constitute an understandable basis for estimates and projections. Beyond this, to the extent that the
assumptions do not materialise, the estimates and projections of achievable results may vary.
C R A D L E C O A ST AU TH OR I T Y
D E C E M B E R 2 0 1 1
CONTENTS
EXECUTIVE SUMMARY I
I NT R O D UCT I O N I
CUR R E N T S I T U A T I O N I
R E S E A R C H F I N D I N G S I
R E G I O N A L T O UR I S M O R G A N IS A T I O N R E CO M M E N D A T I O N S I I
1. INTRODUCTION 1
1 .1 . B A CK G R O U N D 1
1 .2 . T O UR I S M T A S M A N I A ’ S R E G I O N A L T O UR I S M I N I T I A T I V E 1
2. CURRENT SITUATION 3
2 .1 . I N T R O D U CT I O N 3
2 .2 . O V E R V I E W O F T O UR I S M O R G A N I S A T I O N S 3
2 .3 . S TR E N G T H S A N D W E A K N E S S E S 7
3. REGIONAL TOURISM ORGANISATION RESEARCH 8
3 .1 . I N T R O D U CT I O N 8
3 .2 . K E Y F I N D I N G S 8
3 .3 . R E G I O N A L T O UR I S M O R G A N I S A T I O N C A S E S T U D I E S 9
3 .4 . R T O S T R U CT UR E E X A M P L E S 1 6
3 .5 . R E G I O N A L T O UR I S M O R G A N I S A T I O N S UR V E Y R E S UL T S 1 8
4. REGIONAL TOURISM ORGANISATION OPTIONS 22
4 .1 . I N T R O D U CT I O N 2 2
4 .2 . CR A D L E C O A S T A UT H O R I T Y A S T H E R T O 2 3
4 .3 . T O UR I S M I N D US T R Y B O A R D 2 5
4 .4 . R EL A T I O N S H I P W I T H LT A S 2 7
4 .5 . I N D US T R Y M E M B E R S H IP 2 7
4 .6 . R OL E S A N D R E S P O N S I B I L I T I E S 2 8
4 .7 . T R A I T S O F S UC CE S S F UL R T O S 3 0
4 .8 . S UM M A R Y O F R E CO M M E N D A T I O N S 3 1
FIGURES
F I G UR E 1 G E E L O N G O T W A Y T O UR I S M O R G A N IS A T I O N A L S T R U C T UR E 1 3
F I G UR E 2 R T O S E R V I CE S 1 9
F I G UR E 3 R T O F UN D I N G S O UR CE S 2 0
F I G UR E 4 A V E R A G E R T O E XP E N D I T UR E S U M M A R Y 2 0
TABLES
T A B L E 1 CR A D L E CO A S T A UT H O R I T Y P E RF O R M A N CE 5
T A B L E 2 CO U N C IL P E R F O R M A N CE 6
T A B L E 3 L O C A L T O UR I S M A S S O C I A T I O N P E R F O R M A N CE 6
T A B L E 4 R T O S W I T H M O R E T H A N 1 0 0 M E M B E R S 1 8
T A B L E 5 R T O S T R A T E G I C D I R E CT I O N S 1 9
T A B L E 6 S T A F F A N D V O L U N T E E R S : 2 0 0 7 -1 0 2 0
T A B L E 7 V I C S T A F F I N G A N D F UN DI N G 2 1
T A B L E 8 R E S P O N S I B I L I T Y C O M P A R I S O N : CR A D L E CO A S T A UT H O R I T Y V .
R T O 2 3
T A B L E 9 CR A D L E CO A S T T O UR I S M B US I N E S S E S 2 5
C R A D L E C O A ST AU TH OR I T Y
i D E C E M B E R 20 11
EXECUTIVE SUMMARY
INTRODUCTION
This report provides research and options for consideration to implement Tourism
Tasmania’s Regional Tourism Initiative, and specifically the introduction of a Regional
Tourism Organisation (RTO) for the Cradle Coast.
This report includes a summary of the current situation and its strengths and weaknesses
identified including case studies, survey analysis and options to inform discussions
regarding the structure of the Regional Tourism Organisation and its position within
tourism governance.
A number of case studies and research from Victoria has been used to inform the study
as there are a number of well-established RTOs in Victoria which provide examples of
successful RTO structures.
CURRENT SITUATION
The analysis of the current tourism organisations active within the Cradle Coast includes:
• Tourism Tasmania;
• Cradle Coast Authority;
• Local Government; and,
• Local Tourism Associations.
The strengths of the region’s tourism governance are the existing RTO role fulfilled by the
Cradle Coast Authority, the clear direction provided by Tourism Tasmania, and the
support given to tourism by Local Government and from within the industry.
One of the key weaknesses of the region is the inefficient use of resources and energy
particularly with regard to the numerous Local Tourism Associations and Visitor
Information Centres.
Another weakness is the Cradle Coast Authority’s lack of direct interaction and
accountability to industry, which needs to be addressed if it is to assume the RTO role as
defined by Tourism Tasmania.
RESEARCH FINDINGS
The review of case studies and the results of a recent survey of Victorian RTOs identified
the following success factors with regard to RTO structures and governance:
• The most successful Tourism Boards include a mix of representatives, including
industry, council and LTA.
• Regular communication with members is seen as an important factor in RTO
success;
• Memberships and their relationship to LTA memberships vary, and are generally
structured to suit the region and its industries;
• Roles identified as being important for RTOs across the case studies and survey
include:
• Cooperative marketing campaigns;
• Keeping the local industry up to date with tourism trends and issues;
• Representing industry to government
• Developing Sound strategic plans for the region
• The management of visitor information services was seen as a key aspect of the
success of RTOs in the case study: this has a significant impact on the staffing and
budget of RTOs.
• Increasing yield and visitor dispersal throughout a region are seen as key roles of an
RTO.
ii REGIONAL TOURISM ORGANISATIONS D I S CU S S I ON PA P E R
REGIONAL TOURISM ORGANISATION
RECOMMENDATIONS
The assumption that the Cradle Coast Authority transitions into the RTO role defined by
Tourism Tasmania in the Regional Tourism Initiative is based on the support for the
Authority from the local industry, and the guidelines provided by Tourism Tasmania
indicate that support for an additional regional body is unlikely.
A number of options for the structure of the RTO and its relationship with industry have
been considered; these are reviewed in section 4. The analysis of the options provides
the following recommendations for the organisational structure of the Cradle Coast
Authority:
T O UR I S M B O A R D S T R U CT U R E , G O V E R N A N CE A N D M E M B E R S H I P
• That the relationship between the existing Cradle Coast Authority and the new
tourism organisation and its tourism industry board be based on the example of the
Cradle Coast Natural Resource Management team (NRM). NRM is included within
the Cradle Coast Authority organisational structure, but also reports to a board
comprising of a mix stakeholders involved in natural resource management.
• The number of board members on other RTOs included in the research section
range from 9 to 18. A tourism industry board of 7-9 members is recommended,
representing a range of tourism industry skills.
• Tourism Tasmania has stipulated that they must have one representative on the
Tourism Board. Consideration should be given to a further 2 members from Local
Government, reflecting the expectation that they will continue to provide funding and
have a role in regional tourism development and governance.
• It is important to consider the relationship of the RTO to the LTAs, with respect to
each organisation’s roles and responsibilities, and their involvement with RTO
activities and initiatives.
• The option most likely to provide higher levels of industry membership is a flat fee
for basic services, with other services provided on a user pays basis.
A R E A S O F R E S P O N S I B I L I T Y
Based on the research undertaken to inform this discussion paper, plus Tourism
Tasmania’s Regional Tourism Initiative, provides the following list of responsibilities to be
considered by the RTO:
• Regional Tourism Planning
• Marketing
• Product and Infrastructure Development
• Advocacy
• Industry Development
• Visitor Information Services
• Events Bidding
C R A D L E C O A ST AU TH OR I T Y
1 D E C E M B E R 20 11
1. INTRODUCTION
1.1. BACKGROUND
This paper complements the research and findings undertaken in the Cradle Coast State
of the Region Report by providing research, analysis and options relating to tourism
governance in the Cradle Coast, and the specifically the formation of a Regional Tourism
Organisation.
The report includes:
• A review of the existing tourism organisations that form the region’s governance
structure;
• Analysis of the strengths and weaknesses of this structure;
• A review of relevant data from a recent survey of Victorian Regional Tourism
Organisations;
• Case studies of Regional Tourism Organisations; and,
• Potential options for consideration when forming a Regional Tourism Organisation
for the Cradle Coast.
1.2. TOURISM TASMANIA’S REGIONAL TOURISM
INITIATIVE
This report was instigated to inform part of the Cradle Coast’s response to Tourism
Tasmania’s Regional Tourism Initiative. This initiative is based on the findings of a review
of regional tourism undertaken by KPMG in 2010, and the key element is implementing a
new structure based on four Regional Tourism Organisations covering the state. The
local government areas that comprise the Cradle Coast forms one of these areas and a
Regional Tourism Organisation (RTO) is required for the region.
As broadly defined by Tourism Tasmania, the RTOs will1:
• Be Industry–Led with the autonomy to plan and deliver programs that effectively
develop and market the region and will be accountable to the industry and key
stakeholders.
• They must engender greater levels of engagement and industry participation in
cooperative marketing activities and delivery of visitor services.
• Set the strategic direction for their region and identify annual priorities and work
with regional stakeholders to align resources to achieving shared goals.
• Will develop a regional marketing plan and deliver regional marketing programs
that attract participation from industry
Tourism Tasmania is supporting the development of RTOs through linking funding for
marketing and development priorities to the RTOs.
1.2.1. CONSIDERATIONS FOR THE CRADLE COAST AUTHORITY
Although the Cradle Coast Authority is currently fulfilling many of the roles and
responsibilities of an RTO, a central objective of the Regional Tourism Initiative is that the
new RTOs are substantially led and guided by the region’s tourism industry.
Currently, the Cradle Coast Authority board has one of its 8 members representing the
region’s tourism industry. If the Cradle Coast Authority is to meet the requirements of an
RTO under the Regional Tourism Initiative a new tourism industry board is required.
Another consideration for the Cradle Coast Authority is the introduction of a membership
base, to promote strong linkages with the region’s tourism operators. The Authority is
currently funded directly by its 9 constituent councils, and this in conjunction with the
solitary tourism industry board member indicates that it does not meet the industry led
and responsive requirements of the Regional Initiative.
1 Regional Tourism Initiative: FAQ’s
2 REGIONAL TOURISM ORGANISATIONS D I S CU S S I ON PA P E R
The Cradle Coast State of the Region Report also highlights the need to rationalise the
number of Visitor Information Centres (VICs) and Local Tourism Associations (LTAs) to
ensure that the resources allocated to tourism in the region are used efficiently and
effectively. There are at least 15 LTAs operating in various modes, and 8 year-round
accredited VICs in the Cradle Coast. The number of LTAs also impacts on the ability of
an RTO to coordinate and communicate effectively with industry.
C R A D L E C O A ST AU TH OR I T Y
3 D E C E M B E R 20 11
2. CURRENT SITUATION
2.1. INTRODUCTION
This section provides an overview of the current structure and responsibilities of tourism
organisations operating within the Cradle Coast. Industry perspectives and survey results
are based on processes implemented to develop the Cradle Coast State of the Region
Report.
2.1.1. KEY FINDINGS
The analysis of the current tourism organisations active within the Cradle Coast includes:
• Tourism Tasmania;
• Cradle Coast Authority;
• Local Government; and,
• Local Tourism Associations.
The strengths of the region are the existing RTO role fulfilled by the Cradle Coast
Authority, the clear direction provided by Tourism Tasmania, and the support given to
tourism by Local Government and from within the industry. The coordinated approach by
the Cradle Coast Authority and Tourism Tasmania is a strength in the region.
One of the key weaknesses of the region is the inefficient use of resources and energy
particularly with regard to the numerous Local Tourism Associations and Visitor
Information Centres in operation which duplicate services in the North West.
Another weakness is the Cradle Coast Authority’s lack of direct interaction and
accountability to industry, which needs to be addressed if it is to assume the RTO role as
defined by Tourism Tasmania.
2.2. OVERVIEW OF TOURISM ORGANISATIONS
2.2.1. TOURISM TASMANIA
Tourism Tasmania’s role is to grow the tourism industry in the state through marketing
and development programs, delivered in conjunction with industry. The role of the
organisation encompasses both the domestic and international tourism markets.
The objectives of Tourism Tasmania are listed as2:
• Create new knowledge and understanding for industry and stakeholders about
tourism through research, analysis and insights;
• Address the barriers to conversion and travel to Tasmania by identifying and taking
effective, consistent action with those who can make a difference;
• Establish, articulate and maintain the brand and brand values, particularly through
creative and innovative marketing;
• Achieve alignment of Tasmania’s tourism product, experiences and infrastructure to
match market expectations of the brand.
Tourism Tasmania has outlined their role in regional tourism as including:
• Providing regional tourism funding;
• Engaging with stakeholders to help create quality strategic regional tourism plans;
• Having representation on each regional Tourism Board;
• Facilitating access to information to support decision making at the regional level;
• Encouraging partnerships and collaboration including quarterly cross regional
discussions;
• Supporting solutions across tiers of government as well as across State
Government;
• Facilitating alignment with state-wide planning, goals and marketing initiatives;
• Providing leveraging opportunities with Tourism Tasmania’s own programs.
2http://www.tourism.tas.gov.au/about_us
4 REGIONAL TOURISM ORGANISATIONS D I S CU S S I ON PA P E R
I N D US T R Y P E R S P E CT I V E S : R E S P O N S I B I L I T I ES
Respondents to the Cradle Coast Tourism Business Survey clearly indicated that Tourism
Tasmania should be responsible for interstate and international marketing, and visitor
market and industry research.
There was less clarity in product development, training, and business development:
Tourism Tasmania and the Cradle Coast Authority received similar levels of support for
these responsibilities. It is possible that these are joint responsibilities, for example:
industry training may be developed by Tourism Tasmania and the Cradle Coast Authority
has responsibility for regional awareness and providing opportunities to participate in
training.
I N D US T R Y S E R V I CE S
Tourism Tasmania provides a range of services to the tourism industry, including3:
• Advice on starting a tourism business;
• Advice on investing in tourism businesses;
• Product and skills development, particularly in developing visitor experiences, online
skills and presence and events development;
• Marketing through the Discover Tasmania website, the TigerTOUR database the
Visiting Journalist Program, international marketing initiatives and Zone Marketing
Groups;
• Links to wholesale tourism distribution partners;
• Business grants and funding; and,
• Tourism market research.
Tourism Tasmania has three regional Co-ordinators of Industry Development, who have a
role in ensuring that the industry has knowledge of these services within their region.
They also collaborate with operators, regional and local tourism associations and local
government on destination and product development projects.
3 Tourism Tasmania: Summary of Services for the Tourism Industry
Z O N E M A R K E T I N G
Tourism Tasmania introduced the Zone Marketing program in 2009, with the major
purpose of cooperative marketing with support provided by Tasmanian Government
funding. 5 zones were introduced in the state; the Cradle Coast region was represented
by both the Western Wilderness and the North West Coast Zones. After a review by
Deloitte in 2011, Tourism Tasmania has decided to terminate the Zone Marketing
program and is moving to 4 RTOs to deliver regional marketing.
During the consultation process, the issues with Zone Marketing identified by the industry
representatives were that the program was too focused on Hobart and Launceston, and
that operators on the border of regions had to decide which zone they aligned with, or
participate in both zone marketing campaigns.
The Cradle Coast Authority has had a major role in Zone Marketing Group programs in
the region. As the Project Manager for both the Western Wilderness and North West
Coast zones, the Authority has managed promotional, administrative and planning for the
zones from 2008/09 on. In addition, the Cradle Coast Authority has taken responsibility
for the distribution and preparation of visitor guides and marketing prospectuses for both
regions4.
2.2.2. CRADLE COAST AUTHORITY
The Cradle Coast Authority was created by the nine Councils in the West and North West
of Tasmania to co-ordinate projects and resolve issues that impact across the entire
region. In addition to the support for Zone Marketing initiatives outlined above, they
summarise their role in supporting the region’s tourism industry as:
The Cradle Coast Authority is responsible for creating local, regional
and state partnerships, and implementing strategies to ensure the
region maximises its tourism potential. It also facilitates private
investment through strategic development of key areas including
infrastructure, planning, market research and training5.
The Cradle Coast Authority reports to an eight member board, one of these members
represents the tourism industry.
4 Cradle Coast Authority: Annual Report 2010-11 5 Cradle Coast Tourism Contacts, June 2011
C R A D L E C O A ST AU TH OR I T Y
5 D E C E M B E R 20 11
The Cradle Coast Authority and its tourism arm are funded by the nine member councils,
Tourism Tasmania, industry via zone marketing programs and grants for Local, State and
Federal Governments.
I N D US T R Y P E R S P E CT I V E S : R E S P O N S I B I L I T I ES
In responses to the Tourism Business Survey, the Cradle Coast tourism industry identified
intrastate marketing, and industry networking and communication as responsibilities that
should be undertaken by the Cradle Coast Authority. Tourism Tasmania and the Cradle
Coast Authority received similar levels of support for product development, training, and
business development.
I N D US T R Y P E R S P E CT I V E S : P E R F O R M A N CE
As indicated in Table 1, there is a degree of ambivalence from industry towards the
Cradle Coast Authority: in most categories relating to performance assessed in the
Tourism Business Surveys neither satisfied or unsatisfied was the most frequent
response.
TABLE 1 CRADLE COAST AUTHORITY PERFORMANCE
Very SatisfiedVery SatisfiedVery SatisfiedVery Satisfied SatisfiedSatisfiedSatisfiedSatisfied NeitherNeitherNeitherNeither UnsatisfiedUnsatisfiedUnsatisfiedUnsatisfied Very Very Very Very
UnsatisfiedUnsatisfiedUnsatisfiedUnsatisfied
Destination marketingDestination marketingDestination marketingDestination marketing 14% 29%29%29%29% 27% 18% 12%
Industry developmentIndustry developmentIndustry developmentIndustry development 5% 25% 34%34%34%34% 23% 13%
Industry workshops and training Industry workshops and training Industry workshops and training Industry workshops and training opportunitiesopportunitiesopportunitiesopportunities
12% 27% 36%36%36%36% 20% 5%
Tourism strategy developmentTourism strategy developmentTourism strategy developmentTourism strategy development 11% 30% 38%38%38%38% 11% 11%
Industry networking opportunitiesIndustry networking opportunitiesIndustry networking opportunitiesIndustry networking opportunities 13% 33% 35%35%35%35% 16% 3%
Access to business development Access to business development Access to business development Access to business development toolstoolstoolstools
3% 31% 40%40%40%40% 24% 2%
Online & Social Media Online & Social Media Online & Social Media Online & Social Media CommunicationsCommunicationsCommunicationsCommunications
14% 27% 34%34%34%34% 14% 12%
Visitor and industry researchVisitor and industry researchVisitor and industry researchVisitor and industry research 10% 23% 49%49%49%49% 11% 7%
Source: Cradle Coast Tourism Business Survey, 2011.
2.2.3. LOCAL GOVERNMENT
The 9 councils that comprise the Cradle Coast are:
• Burnie City Council;
• Central Coast Council;
• Circular Head Council;
• Devonport City Council;
• Kentish Council;
• King Island Council;
• Latrobe Council;
• Waratah-Wynyard Council;
• West Coast Council.
King Island Council is the only one of the nine that does not operate or fund a Visitor
Information Centre: Circular Head Council provides funding for a Visitor Information
Centre, but the Circular Head Tourism Association is responsible for its management.
Circular Head and King Island Councils do not have a tourism officer or manager member
listed in their organisational summaries6; Waratah-Wynyard have recently advertised for a
Tourism Officer.
I N D US T R Y P E R S P E CT I V E S : R E S P O N S I B I L I T I ES
The only responsibility that respondents to the survey indicated that they see as being a
Local Government responsibility is events management, development and marketing: and
there were an equivalent number of responses that this should be undertaken by the
Cradle Coast Authority. The provision of visitor information services was another area
that received support as a Local Government responsibility, although LTAs received
marginally more support than Local Government.
6Based on Cradle Coast Tourism Contacts, and Council websites.
6 REGIONAL TOURISM ORGANISATIONS D I S CU S S I ON PA P E R
I N D US T R Y P E R S P E CT I V E S : P E R F O R M A N CE
The area of Council performance that the Cradle Coast tourism operators are most
satisfied with is Event Management, which is also an area seen as a Council
responsibility as discussed above. In most aspects of Council performance the
responses included significant amounts of Neither and Very Unsatisfied.
TABLE 2 COUNCIL PERFORMANCE
Very Very Very Very SatisfiedSatisfiedSatisfiedSatisfied
SatisfiedSatisfiedSatisfiedSatisfied NeitherNeitherNeitherNeither UnsatisfiedUnsatisfiedUnsatisfiedUnsatisfied Very UnsatisfiedVery UnsatisfiedVery UnsatisfiedVery Unsatisfied
Destination Marketing Destination Marketing Destination Marketing Destination Marketing 9% 22% 28%28%28%28% 11% 30%30%30%30%
Industry Development Industry Development Industry Development Industry Development 3% 11% 34%34%34%34% 15% 36%36%36%36%
Online & Social Media Online & Social Media Online & Social Media Online & Social Media Communications Communications Communications Communications
10% 16% 26% 15% 33%33%33%33%
Industry Communication Industry Communication Industry Communication Industry Communication 10% 10% 36%36%36%36% 16% 28%
Event Management Event Management Event Management Event Management 5% 32%32%32%32% 27% 11% 24%
Source: Cradle Coast Tourism Business Survey, 2011.
2.2.4. LOCAL TOURISM ASSOCIATIONS
The Cradle Coast Region has at least 15 Local Tourism Associations, in a variety of forms
and interests. The prominent LTAs are listed in Appendix A.
It is important for the newly formed RTO for the Cradle Coast region to consider how this
number of LTAs impacts on its ability to communicate and respond to industry. There are
a number of successful LTAs in the region, and the RTO needs to consider how to ensure
that the industry members who have built strong associations are not disenfranchised
while creating a workable number of broadly representative LTAs.
The State of the Region Report highlights that the West Coast has experienced the
weakest performance in tourism in recent years. Whilst some of this is the result of
changing visitor patterns in Tasmania, the lack of a well-coordinated Local Tourism
Association is preventing coordinated action to curb the decline in tourism. Tourism
Tasmania and the Cradle Coast Authority are working with the West Coast tourism
industry to address this issue.
I N D US T R Y P E R S P E CT I V E S : R E S P O N S I B I L I T I ES
The only responsibility that received a substantial level of support as a LTA responsibility
in the Tourism Business Survey was visitor information services.
I N D US T R Y P E R S P E CT I V E S : P E R F O R M A N CE
Respondents were generally satisfied with the performance of their LTA, as indicated by
Table 3. The only area that received a substantial number of Very Unsatisfied results was
Research, which is only received 7% of responses that it should be an undertaken by
LTAs.
TABLE 3 LOCAL TOURISM ASSOCIATION PERFORMANCE
Very SatisfiedVery SatisfiedVery SatisfiedVery Satisfied SatisfiedSatisfiedSatisfiedSatisfied NeitherNeitherNeitherNeither UnsatisfiedUnsatisfiedUnsatisfiedUnsatisfied Very Very Very Very
UnsaUnsaUnsaUnsatisfiedtisfiedtisfiedtisfied
Visitor servicingVisitor servicingVisitor servicingVisitor servicing 16% 35%35%35%35% 27% 12% 10%
Public relations and Public relations and Public relations and Public relations and communicationscommunicationscommunicationscommunications
20% 29%29%29%29% 27%27%27%27% 10% 14%
Local visitor guide or mapLocal visitor guide or mapLocal visitor guide or mapLocal visitor guide or map 37%37%37%37% 22% 22% 6% 12%
Industry networking Industry networking Industry networking Industry networking functionsfunctionsfunctionsfunctions
12% 31%31%31%31% 33%33%33%33% 14% 10%
Familiarisation toursFamiliarisation toursFamiliarisation toursFamiliarisation tours 15% 19% 35%35%35%35% 13% 19%
ResearchResearchResearchResearch 2% 21% 36%36%36%36% 7% 33%33%33%33%
Source: Cradle Coast Tourism Business Survey, 2011.
C R A D L E C O A ST AU TH OR I T Y
7 D E C E M B E R 20 11
2.3. STRENGTHS AND WEAKNESSES
S T R E N G T H S
The Cradle Coast Authority has been acting as an RTO for the region and has over the
past four years taken responsibility for the Zone Marketing Group’s work. By having an
organisation ready to respond to the RTO role defined by Tourism Tasmania, the region’s
tourism industry is in a position to successfully transition into the new governance
structure.
The number of Councils that support the Cradle Coast Authority, currently operate VICs
and have staff members to support their municipality’s tourism indicates a willingness to
provide resources to the industry. The number of LTAs in the region also suggests a level
of engagement in broader regional objectives by tourism operators.
Tourism Tasmania has provided a clear framework and expectations regarding the
definition of roles for RTOs.
The capacity of Tourism Tasmania Coordinator of Industry Development and the Cradle
Coast Authority to cooperate in promoting and developing tourism in the region is
strength; it is important to ensure this continues under the new structure. Given the new
RTO is to be the conduit between industry and Tourism Tasmania, it is important to
promote regular communication between the two organisations.
The number of tourism businesses in the region is significant, with over 750 businesses
across the region according to the Cradle Coast Authority database. This provides an
excellent base on which to develop larger and more effective LTAs.
WE A K N E S S E S
A key weakness for the region is the Cradle Coast Authority is not currently led and
informed directly by industry, a key consideration in the establishment of RTOs under
Tourism Tasmania’s Regional Tourism Initiative.
The number of LTAs a weakness in the region is, as this:
• Hampers communication and negotiation with industry across the region;
• Reduces the efficiency of the use of the resources allocated to tourism;
• Makes clearly defined roles difficult, as each LTA has its own format and strategic
direction; and,
• Adds complexity to forming industry representative committees and forums.
There is also too many VICs in the region, as all councils except King Island operate a
centre. Fewer VICs in key locations with broad cross-regional support may provide better
outcomes for Cradle Coast’s tourism industry.
The lack of a LTA representing the West Coast is also an issue for promoting tourism in
that municipality
There is an overlap in the goals of the Cradle Coast Authority and Tourism Tasmania’s
Co-ordinator of Industry Development, who both have responsibility for product and
destination development.
8 REGIONAL TOURISM ORGANISATIONS D I S CU S S I ON PA P E R
3. REGIONAL TOURISM ORGANISATION RESEARCH
3.1. INTRODUCTION
To inform the discussions about forming a Regional Tourism Organisation in the Cradle
Coast, this section presents three case studies of successful Victorian RTOs, and the
results of a recent survey of Victorian RTOs.
3.2. KEY FINDINGS
• The case studies indicate that the most successful Tourism Boards include a mix of
representatives, including industry, council and LTA.
• Regular communication with members is seen as an important factor in RTO
success;
• Memberships and their relationship to LTA memberships vary, and are generally
structured to suit the region and its industries;
• Roles identified as being important for RTOs across the case studies and survey
include:
• Cooperative marketing campaigns;
• Keeping the local industry up to date with tourism trends and issues;
• Representing industry to government
• Developing sound strategic plans for the region
• The management of VIC services was seen as a key aspect of the success of RTOs
in the case study: this has a significant impact on the staffing and budget of RTOs.
• Increasing yield and visitor dispersal throughout a region are seen as key roles of an
RTO.
R T O B E S T P R A CT I CE
The findings also generally correlate with research into best practice regional tourism
management undertaken in 2010, based on case studies. This research found that
effective RTOs7:
• have established a clear vision and identified the important values that underpin the
role of the organisation in tourism;
• have developed effective Board structures with members with professional expertise
in business and tourism;
• have established clear roles and responsibilities for their Board members;
• have longevity of people in executive positions and plan for succession;
• exhibit transparency and accountability in their decision-making;
• develop effective partnerships with state or territory tourism organisations, local
government/s, business groups and their community;
• foster a good level of cooperation amongst local and regional tourism and business
operators;
• coordinate and train local operators (e.g. service quality excellence, cooperative
marketing initiatives); and
• integrate with other RTOs in their broader region.
7 Sustainable Regional Tourism Destinations: Best Practice for Management, Development and Marketing - Sustainable Tourism CRC, 2010.
C R A D L E C O A ST AU TH OR I T Y
9 D E C E M B E R 20 11
3.3. REGIONAL TOURISM ORGANISATION CASE
STUDIES
3.3.1. INTRODUCTION
The following section presents case studies of Mornington Peninsula Tourism, Geelong
Otway Tourism and Destination Melbourne to provide insight into successful Regional
Tourism Organisations in Victoria which are well established. The case studies provide an
overview of each region, their current organisational structure and will outline the key
success factors which have led to strong performance over the years.
M E T H O D O L O G Y
The case studies have been prepared by developing an understanding of each of the
RTOs through information available on the internet, and through interviews with CEOs
and senior staff to gain their perspectives on what have been important elements of the
success of their organisations.
3.3.2. MORNINGTON PENINSULA TOURISM
O R G A N I S A T I O N A L S T R UCT UR E
Mornington Peninsula Tourism is a special committee of the Mornington Peninsula Shire
under Victoria’s Local Government Act, and a business division within the Shire’s
Economic Development Unit. Mornington Peninsula Tourism is also an official Tourism
Victoria regional campaign committee, meaning that they receive State Government
funding to support their initiatives.
Mornington Peninsula Tourism is responsible for cooperative marketing in partnership
with the local tourism industry. It also has a role in ensuring the provision of quality
tourism experiences and visitor satisfaction. To fulfil this role they work closely with its
member businesses.
Membership includes food and wine establishments, travel and touring companies, golf
courses, attractions such as marine and water based activities, nature experiences, art,
heritage and culture.
There are eight local tourism associations (LTAs) aligned to Mornington Peninsula
Tourism. They include geographical associations:
• Beachside Tourism;
• Frankston Tourism;
• Hinterland Tourism Association; and,
• Northern Mornington Peninsula Tourism;
And sector based associations:
• Mornington Peninsula Golf Tourism;
• Mornington Peninsula Gourmet;
• Mornington Peninsula Spa Association;
• Mornington Peninsula Vignerons Association;
Mornington Peninsula Tourism is responsible for the operation of the region’s Visitor
Information Centre (VIC), and they are located in the same building. This makes them
visible to industry, and signals an approachability and open door policy. The co-location of
staff ensures that skills and tasks are shared, resulting in a strong understanding of how
the region operates by both the VIC and Mornington Peninsula Tourism staff. This co-
location also provides for streamlined direct marketing, visitor conversion, and prompt
evaluation of marketing initiatives.
The Shire provides funds for the staff and building; all other expenses are funded by the
tourism industry.
T O UR I S M B O A R D
The Executive Officer of Mornington Peninsula Tourism reports to the manager of the
Economic Development Unit within the Mornington Peninsula Shire and also to the
Mornington Peninsula Board of Management. The full board meets every two months and
its role is to offer strategic advice and direction to Mornington Peninsula Tourism. There is
a smaller elected executive board of seven representatives who meet on a monthly basis.
The elected members of the Board of Management include:
• One per LTA;
10 REGIONAL TOURISM ORGANISATIONS D I S CU S S I ON PA P E R
• A representative from the Mornington Peninsula Shire
• A representative from the Frankston City Council;
• A representative from Parks Victoria; and,
• Three skills based positions to provide a range of industry representation.
The mix of local government, LTA and sector specific representation is seen as a strength
of the board.
CO M M U NI C A T I O N
Mornington Peninsula Tourism provides regular communication to its members, through a
variety of channels, including:
• Almost daily communication is made with members. They have access to a
member only section on their website where they can download all documents
relevant to the membership;
• Coordinate inclusive monthly networking events at no cost to members. These are
held at a member business and they regularly attract between 60 and 100 members;
• Actively communicates to members via staff representation at LTA meetings,
regular emails, newsletters and other industry forums;
S T A F F
The Mornington Peninsula Tourism team comprises eight staff members, this includes:
• The Executive Officer;
• Three marketing staff responsible for all of the design of print media, print
advertising and online marketing opportunities; and
• Four staff responsible for all bookings.
There are also 40 volunteers involved in the operation of the VIC.
M E M B E R S H I P S T R UCT UR E
Mornington Peninsula Tourism has approximately 400 members. There are three
membership levels; basic, active online and marketing and fees ranging from $125 to
$675; and members can either be a Networking member or an Associate member.
Networking members must be a financial member of an LTA. The Official Visitor Guide,
Map, print and online advertising opportunities are at an additional cost above the
membership fees.
R O L E S A N D R E S P O N S I B I L I T I E S
Mornington Peninsula Tourism provides the following services to the region’s tourism
industry:
• Creates strategic cooperative marketing campaigns for the Mornington Peninsula
which are linked directly to ticketing and booking;
• Assists members with industry skill development and building professionalism
including training and tools to assist accommodation operators in managing their
rooms, rates and availability online through Bookeasy, Room Manager/ResOnline;
• Coordinates and designs print media editorial, tactical print advertising and online e-
marketing opportunities in-house;
• Linking businesses together to create packages to further enhance the tourism
experience on the peninsula;
• Develops printed materials – Official Guide for Visitors, Official Touring Map, Trade
and Group Touring Guide;
• Organises familiarisation tours and liaison for industry, trade and media;
• Develops marketing partnerships with Melbourne and neighbouring regions to
promote overnight linked touring;
• Partners with LTAs and members to develop events to increase off-peak visitation;
• Visitor Statistics and Reporting: reporting on visitor trends, business health and
service standards as well as measuring customer satisfaction. They have an
independently produced ‘Health of Tourism’ economic impact survey and ‘Tourism
Indicators Report’ that are both conducted annually;
• Offers buy-in opportunities with varying participation costs to make it easier for all
business sizes to commit to an array of marketing projects;
C R A D L E C O A ST AU TH OR I T Y
11 D E C E M B E R 20 11
• Provides mentoring, start up advice sessions for new businesses and formal
workshops linked to state-wide training priorities; and
• Works with Tourism Audit Services, a tourism audit business, to benchmark the
delivery of services by MPT member businesses.
• Operates the Mornington Peninsula Visitor Information Centre in Dromana, which
includes:
• Retailing gifts & souvenirs; locally produced where possible;
• Operates an online booking service for members for events, attractions, tours
and packages;
• Has a booking team of four staff that prepare over 9,000 accommodation quotes
per year and book almost 9,000 room nights per year;
K E Y S U CCE S S F A CT O R S
Mornington Peninsula Tourism identifies the following as factors in their success as an
RTO:
• Strong leadership and longevity of staff members;
• A cohesive, well networked and mature industry. As a result they understand and
participate in marketing activity and research, this in turn delivers results for the
industry and the destination;
• The integration of the VIC with Mornington Peninsula Tourism works very well and
makes for a more engaged industry. This enables Mornington Peninsula Tourism to
assess the impact of their marketing through the visitation to the visitor centre, they
can use the volunteer workforce, and the industry has one location to visit both
visitor services and marketing;
• Research is undertaken annually, to examine the health of their tourism industry,
businesses, service standards and customer satisfaction. This provides support for
ongoing council funding of their services, promotes their work to their member base
and educates the community about the importance of the tourism industry to the
Mornington Peninsula.
• Continuous improvement is an important aspect of Mornington Peninsula Tourism’s
success, and they regularly participate in the Victorian Tourism Awards each year.
They were winners and Hall of Fame recipients in 2011 for specialised tourism
services, as well as winners in the Australian Tourism awards in 2010. They also
actively assist the region’s businesses with their submissions, and deliver Tourism
Excellence (Tourism Victoria program) workshops;
• The sub regional areas are clearly defined and marketed for their unique tourism
assets;
• Their marketing campaigns are linked directly to ticketing and booking; and
• They manage an effective regional website with online booking capability.
12 REGIONAL TOURISM ORGANISATIONS D I S CU S S I ON PA P E R
3.3.3. GEELONG OTWAY TOURISM
O R G A N I S A T I O N A L S T R UCT UR E
Formed in 1993, Geelong Otway Tourism was one of the first regional tourism bodies in
Victoria. It resulted from the amalgamation of six municipalities to create the City of
Greater Geelong, which funds staffing, accommodation and general operations.
Geelong Otway Tourism has a memorandum of understanding with each of the
municipalities within its region; Surf Coast Shire, Colac Otway Shire, Golden Plains Shire
and the Borough of Queenscliffe. These MOUs include the financial agreement, and
define obligations of Geelong Otway Tourism and the Councils: each council has
negotiated different levels of service and financial support.
Source- Geelong Otway Tourism Board Induction Manual
Geelong Otway Tourism is associated with four LTAs: Tourism Geelong, Bellarine
Tourism, Otways Tourism and Surf Coast Tourism. These relationships are also specified
through MOUs, which have a similar scope to those with the councils.
Geelong Otway Tourism marketing is funded through membership fees and direct
contribution from industry. Geelong Otway Tourism see one of its strengths as the
differentiated promotion of the region in key markets: resources are pooled to market
internationally as part of the Great Southern Touring Route, and domestic activities as
part of Great Ocean Road Marketing and Melbourne and Surrounds.
Geelong Otway Tourism is the main force driving the Great Southern Touring Route and
the Great Ocean Road programs. Alongside Shipwreck Coast Tourism, they have been
able to dramatically increase the profile of the Great Ocean Road in the international and
domestic markets. These marketing programs have helped the region to achieve
enormous growth in tourism, making a substantial economic and social contribution to the
Geelong Otway region.
B O A R D S T R U CT UR E
Geelong Otway Tourism is an incorporated association with a board of 12 members: four
are Councillors and eight represent the industry. Four of the industry representatives are
from the LTAs, invariably the chairperson from each association. The remaining four
members are skills based positions such as marketing, finance or managing a particular
attraction or business. The board meets every two months.
CO M M U NI C A T I O N
Geelong Otway Tourism communicates with its stakeholders through:
• Quarterly catch ups with the relevant councilor and chairman of each LTA;
• They have regular communication with all of the board members and therefore all of
the LTAs.
• They have reporting systems in place to ensure members are up to date on actions
and strategies;
• Geelong Otway Tourism presents an annual progress report to each of the councils,
which examines the yearly performance and outlines goals for the forthcoming year;
• Statistics on tourism in the region are regularly distributed to each of the Councils;
• Geelong Otway Tourism is In the process of setting up an industry website that will
be integrated with social media channels.
S T A F F
Geelong Otway Tourism has 14 staff members, plus 115 volunteers within the region’s
Visitor Information Centres.
FIGURE 1 GEELONG OTWAY TOURISM ORGANISATIONAL
STRUCTURE
Source- Geelong Otway Tourism Board Induction Manual
M E M B E R S H I P S T R UCT UR E
Geelong Otway Tourism has over 1,100 members, representing all aspects of the tourism
industry in the region.
They have a three tiered member structure:
• Friends of Tourism for individuals, volunteers, non for profit groups;
• Associate Membership for small businesses who indirectly benefit fr
and,
• Direct Tourism Businesses for small, large or corporate tourism businesses.
Executive Director
Deputy Executive Director
Destinatioin
Bellarine Officer
Destination
Geelong Officer
Marketing and
Media Officer
Business Events & Conference
Coordinator
Conference & Marketing Project
Officer
Conference
Support
Business Manager
Administration &
Project Officer
Tourism Project
Officer
Tourism
Membership Officer
Visitor Information
Centre Coordinator
C R A D L E C O A ST AU TH OR I
D E C E M B E R
has 14 staff members, plus 115 volunteers within the region’s
ORGANISATIONAL
representing all aspects of the tourism
Friends of Tourism for individuals, volunteers, non for profit groups;
Associate Membership for small businesses who indirectly benefit from tourism:
Direct Tourism Businesses for small, large or corporate tourism businesses.
One fee covers the cost of joining an LTA and automatic affiliation with
Tourism. Fees range from $85 for a Friends of Tourism membership to $1375 f
businesses.
R O L E S A N D R E S P O N S I B I L I T I E S
Geelong Otway Tourism undertakes the following on behalf of the region’s tourism
industry:
• Coordinate industry training and tourism policy formulation across the region to
ensure consistent approach;
• Represents LTA’s, industry sectors and local government on issues affecting the
tourism industry;
• Develops and implements a strategic business plan to provide a clear direction for
the sustainable growth of tourism across the region;
• Includes specific regional tourism marketing objectives within the business plan to
build a regional brand, increase awareness, convert awareness to high yielding
visitation and disperse visitors across the region and across seasons;
• Works with local government and LTA’s to identify g
• Encourages the growth of quality tourism businesses;
• Provides clear communication to the industry regarding issues which affect their
businesses;
• Undertakes visitor research for the region; and
• Develops partnerships with the industry.
T O UR I S M S T R A T E G Y
Geelong Otway Tourism develops a strategic plan every three years, supported by an
annual action plan. The plans are developed in conjunction with the municipal and LTA
partners to promote engagement with the work of the organ
Visitor Information
Centre Coordinator
VIC Officer
C R A D L E C O A ST AU TH OR I T Y 13
D E C E M B E R 20 11
One fee covers the cost of joining an LTA and automatic affiliation with Geelong Otway
. Fees range from $85 for a Friends of Tourism membership to $1375 for major
undertakes the following on behalf of the region’s tourism
Coordinate industry training and tourism policy formulation across the region to
ts LTA’s, industry sectors and local government on issues affecting the
Develops and implements a strategic business plan to provide a clear direction for
the sustainable growth of tourism across the region;
urism marketing objectives within the business plan to
build a regional brand, increase awareness, convert awareness to high yielding
visitation and disperse visitors across the region and across seasons;
Works with local government and LTA’s to identify gaps in the tourism offering;
Encourages the growth of quality tourism businesses;
Provides clear communication to the industry regarding issues which affect their
Undertakes visitor research for the region; and
industry.
a strategic plan every three years, supported by an
annual action plan. The plans are developed in conjunction with the municipal and LTA
partners to promote engagement with the work of the organization.
14 REGIONAL TOURISM ORGANISATIONS D I S CU S S I ON PA P E R
K E Y S U CCE S S F A CT O R S
Geelong Otway Tourism sees the following as key factors in their success as an RTO:
• Strong board administration and composition with a skills based board and an even
representation across all regional areas;
• Through the employment of a business manager, they can ensure that there is
strong communication structures in place, that accountability is maintained and that
the organisation is running efficiently;
• Transparent and open communication between board members, local government,
LTAs and the local industry;
• Developing and maintaining industry partnerships at local, state and national levels.
• Provide cost-effective and integrated marketing campaigns through integration with
Tourism Victoria and Tourism Australia programs, and incorporating local tourism
association activities;
• Strong visitor services network with regular communication and networking between
centres to ensure strong product knowledge and professional service delivery;
• A high level of self-sufficiency for it’s marketing income. Geelong Otway Tourism
does not rely heavily on government funding, rather on membership income,
industry and sponsorship support which leaves them less vulnerable to changes in
local government. In 2006/07, 93% of the marketing budget was sourced from
industry contributions8.
• They operate a successful business events unit. Business Events Geelong is an
industry leader in attracting events and conferences in Australia, and have won
numerous State and National awards. A key to their success is the ongoing
collaboration with the peak industry bodies such as the Melbourne Convention and
Visitors Bureau and Business Events Victoria.
8Donovan, R. (2008) ‘Best Practice Review; Geelong Otway Tourism 2006–07’, Insight Communications, Camperdown.
3.3.4. DESTINATION MELBOURNE
O R G A N I S A T I O N A L S T R UCT UR E
Destination Melbourne is the regional tourism organisation responsible for marketing
Melbourne. Although vastly different to the Cradle Coast being based in a capital city,
they provide contrast to the traditional RTOs in the previous sections.
The organisation is ten years old and commenced as a publishing house producing visitor
guides for Melbourne, which provide financial sustainability. They are a not for profit
company limited by guarantee and they have no member base. Their aim is to build the
capacity of the industry, provide leadership and advocacy that engages business,
government and community and entices people to visit Melbourne.
B O A R D S T R U CT UR E
The Destination Melbourne board has 12 skills and industry based members, who
nominate through an expression of interest process. The board has three sub
committees; Marketing and Communications, Finance and Risk and Strategy. Each of
these sub committees meet on a regular basis and include a Destination Melbourne staff
member. The Chairperson of each sub-committee is responsible for updating the rest of
the board members on any challenges, opportunities or developments that have occurred
since the previous board meeting. Quarterly reports on Destination Melbourne’s
performance are provided to the board by the CEO.
The success of this board structure is the representation of individuals from all facets of
the industry and the balance they strike between the industry and skills representation.
CO M M U NI C A T I O N
Destination Melbourne believes that a key factor in its success as an RTO is the regular
communication to their stakeholders. They have a database of nearly 2,000 industry
contacts, who they engage with through various channels on a regular basis. This
provides Destination Melbourne with the opportunity to connect with stakeholders and
provide them with information about the tourism industry, marketing opportunities,
industry development opportunities, information on upcoming events and messages from
the CEO.
C R A D L E C O A ST AU TH OR I T Y
15 D E C E M B E R 20 11
Destination Melbourne extensively uses new media to communicate, including email
newsletters, twitter, a blog on their website and Facebook. These communication
channels enable them to develop the Melbourne tourism industry community and helps
build their reputation as leaders in the industry.
P A R T N E R I N G W I T H L O C A L G O V E R N M E N T
Although they are not affiliated with Councils, Destination Melbourne recognises the role
that Local Government plays in supporting the visitor experience. Their independence
enables them to work closely with metropolitan councils throughout Melbourne on
developing tourism.
Since 2002, Destination Melbourne has offered local councils and trader groups
opportunities to participate in their marketing and industry development programs at a
heavily subsided rate.
A recent initiative by Destination Melbourne is the development of the Visiting Friends and
Relatives Campaign. The campaign offers council partners a marketing opportunity to
raise awareness of tourism and product in their municipality. The project has a variety of
elements including communication toolkits, print, digital and video. The overarching goal
of the campaign is to build community pride in residents. The brand “Discover Your Own
Backyard” was built on the understanding that the host (the resident) has the greatest
influence over visitor behaviour and that if they are educated, intra regional dispersal can
be influenced and they can support the visitor experience for people visiting their friends
and relatives.
O R G A N I S A T I O N A L S T R UCT UR E
Destination Melbourne has 13 staff members. Staff are encouraged to pursue their
interests within the industry and are provided with opportunities to attend networking
events, conferences and forums as well as encouraged to sit on boards and committees.
Destination Melbourne understands the importance of providing opportunities for staff
development, and also the benefits to the organisation of the increased visibility within the
tourism community.
F UN DI N G S O UR CE S
Unlike most RTOs, Destination Melbourne does not rely on membership subscriptions or
government funding: nearly 90% of their revenue comes through providing marketing and
industry development programs.
K E Y S U CCE S S F A CT O R S
Destination Melbourne sees the key factors in their success as:
• Strong leadership; a dynamic, enthusiastic and well networked chief executive
officer;
• A sound strategic plan;
• Clear communication to stakeholders and the wider tourism industry of their key
successes and various marketing opportunities, carried out through newsletters,
blogs, Twitter and Facebook;
• Regular industry familiarisation tours and industry development sessions which
engage not only the Melbourne industry, but the tourism industry in regional Victoria.
This only further encourages industry buy-in;
• Successful engagement of many stakeholders not traditionally thought of as being a
part of tourism, such as through the Visiting Friends and Relatives program
• Provide an information booklet through their website for those interested in
engaging with the tourism industry;
• Advocating for the tourism industry and its value to the social and economic
prosperity of local communities.
• Development of the Melbourne Tourism Industry Leadership Program which helps
foster those new to the tourism industry and further promotes and enhances the
Destination Melbourne brand.
16 REGIONAL TOURISM ORGANISATIONS D I S CU S S I ON PA P E R
3.4. RTO STRUCTURE EXAMPLES
3.4.1. TOURISM BOARDS
D A Y L E S F O R D M A CE D O N R A N G E S T O UR I S M , V I C
The Daylesford Macedon Ranges Tourism Board consists of 12 members9:
• 4 representing each of the Councils within the region
• 7 independent representatives, representing industry
• A non-voting member from Tourism Victoria
N O R T H E A S T V I CT O R I A T O UR I S M B O A R D
This board includes 6 local government areas, and at 18 members is the largest board
included in this overview10. The members are:
• 7 from industry
• 6 representing each of the Councils
• 3 representing the management boards of each of the alpine resorts in the area
• Tourism Victoria
• Parks Victoria
O UT B A C K R E G I O N A L T O UR I S M O R G A N I S A T I O N , N S W :
13 members11:
• 8 from Local Government
• 2 from LTAs
• 1 from National Parks and Wildlife Service
• 1 from industry
9 http://www.dmrtourism.com.au/about-us 10 http://www.nevt.com.au/home/About-NEVTi.html 11 http://www.corporate.outbacknsw.com/about.html
• 1 member to represent the unincorporated RTO members
N O R T H E R N R I V E R S T O UR I S M , N S W
10 Members12:
• 8 industry representatives
• 1 from Department of Environment and Climate Change (NSW National Parks)
• The CEO of Northern Rivers Tourism
R I V E R I N A R E G I O N A L T O UR I S M , N S W
The 9 board members are industry positions, and are drawn from across the region.
Board members are sourced through advertising for applicants13.
Y A R R A V A L L E Y R E G I O N A L T O UR I S M A S S O C I A T I O N
The Yarra Valley Regional Tourism Association web-site states that they have “a
Committee of Management which is voted in annually at the Annual General Meeting; its
primary function is to act on behalf of its members”14. This indicates an industry
representative board.
E XP E R I E N CE P E R T H
Experience Perth, the Perth Region Tourism Organisation is overseen by a skill- based
board consisting of representatives from the tourism industry15.
3.4.2. MEMBERSHIP
P E R T H R E G I O N A L T O UR I S M O R G A N IS A T I O N
Two levels of membership, Gold - $250, and Silver - $150. Both levels of membership
receive basic member rights, a website listing on Experience Perth, marketing
opportunities, newsletters and voting and board membership right. Gold membership
12 http://www.northernriverstourism.com.au/?page=board 13 http://www.visitriverina.com.au/index.cfm/page/248 14 http://www.visityarravalley.com.au/pages/yarra-valley-regional-tourism-association/ 15 http://www.experienceperth.com/docs/publications/prto-membership-prospectus-2011-12.pdf
C R A D L E C O A ST AU TH OR I T Y
17 D E C E M B E R 20 11
increases the marketing provision, including enhanced Experience Perth website listing,
product updates in the newsletter and priority participation in other marketing
opportunities15.
Y A R R A R A N G E S B US I N E S S A N D T O UR I S M , V I C
Membership prospectuses are broken into categories such as accommodation,
attractions, wineries, retail/restaurant/service, conference/wedding venue and Farm Gate
operations16. Fees are based on the type and size of the business, and range from $275
for Farm Gate and retail/restaurant operations to $1,375 for a large accommodation or
attraction business. When applying for RTO membership, applicants also select one of
the 3 LTAs in the region to also be a member of.
N O R T H E A S T V I CT O R I A T O UR I S M
This Regional Tourism Organisation does not have direct industry membership; it offers
free industry newsletter and professional development opportunities17. Income is
generated directly from industry mainly through cooperative marketing campaigns.
S O UT H CO A S T R E G I O N A L T O UR I S M A S S O C I A T I O N , N S W
Membership of this RTO is $50 per year plus GST for businesses and individuals, and
can either be paid in conjunction with LTA membership fees or invoiced to the prospective
member directly18. Town association membership is $200 per year plus GST, and for
municipality association’s membership is $1,000 per year plus GST.
Membership does not include collaborative marketing initiatives, development
opportunities and corporate website tools: these are provided at a discount to members.
T O UR I S M T O P E N D , N O R T H E R N T E R R I T O R Y
Tourism Top End is the RTO based in Darwin. They offer four levels of membership19:
• Full Membership for businesses offering a primary tourism product (eg: Tour
Operator, Accommodation, Attraction, Travel Agent) - $440 per year.
16 yrbt.com.au 17 www.nevt.com.au 18 corporate.southcoast.net.au 19 http://www.tourismtopend.com.au/pages/become-a-member/
• Associate Membership for businesses or individuals that support tourism, but are
not directly involved in the industry - $220 per year.
• Partnership Membership for members of other Northern Territory RTOs that do not
have a registered office in the Top End region - $110 per year
• Interstate Membership for members of interstate RTOs that do not have a registered
office in the Top End region - $110 per year
3.5. REGIONAL TOURISM ORGANISATION SURVEY
RESULTS
3.5.1. INTRODUCTION
This section provides a summary of relevant result of a recent survey of Victorian RTOs. The
survey was open to all regional Tourism Boards, campaign committees, regional tourism
organisations and regional tourism associations in Victoria.
M E T H O D O L O G Y
A link to the survey was emailed to 27 RTOs in Victoria during October 2011. The 19 survey
responses received were then collated and analysed. All information collected from the
surveys was obtained in confidence with all information aggregated and no reference to
individual results was made.
The survey data relates to the 2010/2011 financial year. Were applicable, comparisons are
made with the 2007/08 financial year when a similar survey was carried out across Victoria.
3.5.2. MEMBERSHIP
N UM B E R O F M E M B E R S
Approximately 60% of the RTOs included in the survey indicated that they had membership
base of more than 100 during the 2010/11 financial year. On average, these memberships
comprised:
• 78% were Businesses;
• 12% were from Local Tourism Associations;
• 9% were from Local Government; and,
• The remaining 1% were private individuals.
There is one large RTO in Victoria, with over 1,000 members, the next largest has
approximately 450 members. Table 4 indicates that member numbers have been relatively
stable over the past two years.
TABLE 4 RTOS WITH MORE THAN 100 MEMBERS
%%%% RTOsRTOsRTOsRTOs MaxMaxMaxMax AverageAverageAverageAverage MedianMedianMedianMedian
JanJanJanJan----09090909 58% 1,052 360 270
JanJanJanJan----10101010 58% 1,026 374 300
JanJanJanJan----11111111 62% 1,033 362 275
M E M B E R S H I P F E E
Of the RTOs that indicated that they have members, 69% indicated that they charged an
annual fee.
A third of the RTOs with members have a flat fee, the rest offer member options: options
range from $95, up to $1,900. Some RTOs calculate member fees on a sliding scale, mostly
dependent on the size and type of business: all member benefits are the same regardless of
fee. Others offer a number of different fee options and benefits, ranging from basic benefits
such as VIC brochure display, website listing or invites to networking functions through to
marketing and industry development benefits.
The RTOs that have a membership base have significant variation in the percentage of their
budget generated through membership fees, from 5% to 50%, with an average of 18%.
3.5.3. STRATEGY AND PLANNING
Only one respondent to the RTO survey indicated that they did not have a tourism strategy.
Of the RTOs that develop a strategy, a majority of them indicated that they review it annually
(61%): the next most common period was three years (28%).
Table 5 provides a summary of what the RTOs saw as their main strategic directions, and
therefore their roles in developing tourism in their region.
C R A D L E C O A ST AU TH OR I T Y 19
O C T O B ER 2011
TABLE 5 RTO STRATEGIC DIRECTIONS
Strategic DirectionStrategic DirectionStrategic DirectionStrategic Direction %Resp%Resp%Resp%Responsesonsesonsesonses
Facilitate industry growth and developmentFacilitate industry growth and developmentFacilitate industry growth and developmentFacilitate industry growth and development 88.9%
Increase yieldIncrease yieldIncrease yieldIncrease yield 77.8%
Attract visitorsAttract visitorsAttract visitorsAttract visitors 72.2%
Increase visitor dispersalIncrease visitor dispersalIncrease visitor dispersalIncrease visitor dispersal 72.2%
Facilitate industry leadershipFacilitate industry leadershipFacilitate industry leadershipFacilitate industry leadership 72.2%
Development of a sustainable tourism industryDevelopment of a sustainable tourism industryDevelopment of a sustainable tourism industryDevelopment of a sustainable tourism industry 66.7%
Product developmentProduct developmentProduct developmentProduct development 61.1%
Infrastructure investment attractionInfrastructure investment attractionInfrastructure investment attractionInfrastructure investment attraction 44.4%
An interesting aspect of this is that more RTOs identified increasing yield as an important
direction than attracting visitors. It is also of note that as many RTOs saw visitor dispersal as
important as attracting visitors.
3.5.4. SERVICES
Marketing was highlighted as one of the main services provided by the Victorian RTOs, with
all but one respondent indicating that they provide this service; it is also seen as the most
important service. Cooperative marketing is a significant subset of the marketing activity, with
approximately 85% of RTOs indicating that they undertake these campaigns.
While most RTOs produce marketing collateral, networking opportunities and familiarisation
tours they were not viewed by many as important aspects of the service they provide.
Of the 68% of respondents that provide product and infrastructure development and planning,
38% indicated that it was an important aspect of their service provision. Also of note is that
although only 21% operate VICs, half of those see it as an important aspect of their service
delivery.
All of the RTOs that operate VICs also provide accommodation and tours and attractions
booking services; one RTO that does not operate a VIC operates both types of booking
service. The provision of accommodation booking was seen as important by 40% of those
who provide it, yet none identified tours and attractions booking as important. Also of note,
just over 20% of RTOs that do not currently offer accommodation booking are considering it,
but none are considering tours and attractions.
Although none of the 74% of RTOs that currently undertake market research see it as an
important aspect of their role, 59% of those who are not currently providing this service are
considering offering it.
Events management and bidding are not activities of many Victorian RTOs, although events
bidding is being considered by 39% of those not currently offering the service.
FIGURE 2 RTO SERVICES
ServiceServiceServiceService CurrentlyCurrentlyCurrentlyCurrently ProvideProvideProvideProvidedddd
Importance Importance Importance Importance ---- Top 3Top 3Top 3Top 320202020
ImportImportImportImportance ance ance ance ---- RelativeRelativeRelativeRelative21212121
ConsideringConsideringConsideringConsidering ProvidingProvidingProvidingProviding22222222
Marketing 95% 63% 67% 0%
Production of marketing collateral 90% 21% 24% 0%
Market research 74% 0% 0% 59%
Provide marketing buy-in opportunities 79% 16% 20% 36%
Tourism product and infrastructure development and planning
68% 26% 38% 24%
Member training and advice 79% 21% 27% 36%
Maintenance of the organisation's website 90% 16% 18% 0%
Professional development opportunities 90% 26% 29% 73%
Industry leadership opportunities 63% 21% 33% 21%
Networking opportunities 84% 11% 13% 49%
Familiarisation tours 84% 0% 0% 0%
Provide lobby power for members 68% 11% 15% 0%
Operate Visitor Information Centre/s 21% 11% 50% 0%
Accommodation Booking Service 26% 11% 40% 21%
Tours and activities Booking Service 26% 0% 0% 0%
Coordinate the Official Visitor Guide 63% 0% 0% 42%
Manage events within your region 16% 0% 0% 18%
Bid for business events 21% 0% 0% 39%
Liaison with local, state and federal gov’ts 68% 21% 31% 0%
20Based on the request in the survey for RTOs to identify their 3 most important services. 21 Relative Importance is the percentage of those who provide a service who identified it as important. 22Percentage of those not currently providing the service.
2 0 REGIONAL TOURISM ORGANISATIONS D I S CU S S I ON PA P E R
3.5.5. ORGANISATIONAL SUMMARY
L E G A L F O U N D A T I O N
The survey indicates that RTOs in Victoria are incorporated associations (66.7%) followed by
a company limited by guarantee (27.8%). The remaining 5.6% are Special Committees of
Council operating under the Victorian Local Government Act: actions taken by these
committees are in effect actions of the council. These are analogous to the Special
Committees of Council that operate under Section 24 of the Local Government Act in
Tasmania.
S T A F F A N D V O L UN T E E R S
On average, each RTO had 4.7 employees and 31.7 volunteers in 2011. There has not been
significant change in staff levels over the past 4 years, as indicated in Table 6. The data does
indicate that there has been an increase in volunteers at RTOs over the 4 year period.
TABLE 6 STAFF AND VOLUNTEERS: 2007-10
StaffStaffStaffStaff VolunteersVolunteersVolunteersVolunteers
2007200720072007 2011201120112011 2007200720072007 2011201120112011
AverageAverageAverageAverage 5 4.7 23.25 31.7
Median Median Median Median 3.5 4 5.5 16.5
MaximumMaximumMaximumMaximum 15 14 100 110
R T O F U N D I N G
Based on the survey results, annual RTO funding in Victoria ranges from $140,000 to $3.2m,
with an average of just over $1m.
The survey also indicates that almost half of RTO funding is sourced from local and state
governments. Marketing initiatives that are supported by industry funding also generate a
significant amount of income for RTOs. Also of note is that on average memberships only
generate 8% of RTO funding: even when only RTOs with memberships of over 100 are
considered the average funding is only 14%.
FIGURE 3 RTO FUNDING SOURCES
E XP E N D I T UR E
On average, most RTOs spend most of their funding on marketing and wages; together these
items account for almost 70% of RTO expenditure.
FIGURE 4 AVERAGE RTO EXPENDITURE SUMMARY
38.50%
17.80%
16.90%
10.30%
8.30%
4.10%
3.30%
0.40%
0.30%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Local Government
State Government
Cooperative Marketing
Grants
Membership
Other
Sponsorship
Accom & Tour Bookings
Souvenirs
43.60%
25.90%
13.80%
9.90%
2.80%
2.10%
0.80%
0.40%
0.60%
0.10%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Marketing
Wages
Administration
Industry Development
Product Development
Other
VIC
LTA
Professional Development
Merchandise
C R A D L E C O A ST AU TH OR I T Y 21
O C T O B ER 2011
3.5.6. VISITOR INFORMATION CENTRES
Approximately 21% of RTOs indicated that they operate Visitor Information Centres:
responsibility for these centres have a significant impact on the size of the RTO, as shown in
Table 7.
TABLE 7 VIC STAFFING AND FUNDING
Overall Overall Overall Overall With VICWith VICWith VICWith VIC Without VICWithout VICWithout VICWithout VIC
Ave. Ave. Ave. Ave. StaffStaffStaffStaff 4.7 9.7 3.3
Ave. Ave. Ave. Ave. VolunteersVolunteersVolunteersVolunteers 31.7 63.8 10.3
Ave. Annual Ave. Annual Ave. Annual Ave. Annual FundingFundingFundingFunding $1.02m $3.2m $600,000
The number of staff and volunteers is largely dependent on whether the RTO operates a
Visitor Information Centre. These RTOs have almost 6 times the number of volunteers and
three times the staff members. There is also a significant impact on the RTO budget through
the operation of a VIC: on average RTOs that operate VICs have an additional $2.6m in
funding. Only two RTOs who operate VICs provided information on their expenditure: they
estimated that 12% or 13% of their expenditure was allocated to the VIC.
2 2 REGIONAL TOURISM ORGANISATIONS DISCUSS IONDISCUSS IONDISCUSS IONDISCUSS ION PAPERPAPERPAPERPAPER
4. REGIONAL TOURISM ORGANISATION OPTIONS
4.1. INTRODUCTION
This section provides options and recommendations for the structure of an RTO for the
Cradle Coast region, based on the assumption that the Cradle Coast Authority will
assume the role.
This assumption is based on the support from the region’s tourism industry for the Cradle
Coast Authority as highlighted din the State of the Region Report, and Tourism Tasmania’
position that there should not be new layers of governance created that do not benefit the
industry.
The options considered relate to how the Cradle Coast Authority can meet the RTO
requirements as set out Tourism Tasmania’s Regional Tourism Initiative, particularly:
• The organisation structure;
• A tourism industry specific board;
• The RTO’s relationship with members and LTAs; and,
• Other roles for an RTO that should be considered.
4.1.1. SUMMARY OF RECOMMENDATIONS
The recommended model for the RTO is:
• A Tourism Board of 7-9 members, representing a mix of industry skills, plus a the
required Tourism Tasmania representative;
• Members of an Interim Tourism Board, to operate in the first year of the RTO,
should be sought by expression of interest, and then the Interim Tourism Board
decides the ongoing progress;
• The RTO should consult and negotiate with LTAs to ensure engagement with RTO
initiatives and activities
• RTO fees should be standard, to encourage higher levels of membership
• The RTO should have responsibility for the following activities:
• Provide leadership in securing large tourism events for the region
• Product and infrastructure development (including development facilitation)
• Research (visitors, industry)
• Industry development (including networking and training)
• External marketing (Tasmania and Interstate)
• Communication
• Coordinate Visitor Information Services in the region, to provide the most benefit
to the tourism industry from the resources available
C R A D L E C O A ST AU TH OR I T Y 23 O C T O B ER 2011
4.2. CRADLE COAST AUTHORITY AS THE RTO
There is broad support for the Cradle Coast Authority to transition into the RTO role
defined in Tourism Tasmania’s Regional Tourism Initiative: as noted in industry
consultation, “if it ain’t broke don’t fix it”. The options discussed in this paper assume that
the Cradle Coast Authority will fill the RTO role.
Tourism Tasmania have stated that they would not support adding to the existing number
of organisations and layers of governance, and that there needs be less fragmentation in
regional tourism. The purpose of this is to increase the value of the output from regional
tourism through co-ordinated resources and actions. As the Cradle Coast Authority is an
existing and highly regarded organisation, there is a strong basis to the assumption that
they will transition into the role defined in the Regional Tourism Initiative.
The results of the Cradle Coast Tourism Business Survey also imply that industry
supports this position. Table 8 compares the percentage of respondents that identified
the Cradle Coast and an unspecified RTO as their preferences of responsibility for
regional tourism activities. In 8 of the 10 activities included in the survey question, there
was a stronger preference for the Cradle Coast Authority: the two activities that an RTO
received more preferences, research and visitor information services are not activities
typically undertaken by RTOs.
Based on the assumption that the Cradle Coast Authority will assume the role of the RTO
with the implementation of the Regional Tourism Initiative, the Cradle Coast Authority
needs to address aspects of the requirements set out by Tourism Tasmania. These are:
• An industry board;
• Direct input from industry;
• To have strong engagement in the region via LTAs; and
• To improve the outcomes generated by the resources allocated to tourism in the
region, which are discussed in the Other Roles and Responsibilities section.
TABLE 8 RESPONSIBILITY COMPARISON: CRADLE COAST
AUTHORITY V. RTO
Cradle CoastCradle CoastCradle CoastCradle Coast AuthorityAuthorityAuthorityAuthority
RTRTRTRTOOOO
Intrastate marketing 30%30%30%30% 22%
Interstate marketing 21%21%21%21% 12%
International marketing 3% 8%8%8%8%
Product development 29%29%29%29% 13%
Industry networking and communication 30%30%30%30% 21%
Visitor information services 13% 19%19%19%19%
Training 29%29%29%29% 16%
Business development tools and advice 34%34%34%34% 13%
Events management, development and marketing 24%24%24%24% 20%
Visitor Markets and industry research 23%23%23%23% 11%
Source: Cradle Coast Tourism Business Survey, 2011
4.2.1. ORGANISATIONAL MODEL
Cradle Coast Natural Resource Management (NRM) provides the organisational model
that will enable the tourism functions carried out by the organisation to be guided by a
separate, industry specific board whilst continuing to be part of the Cradle Coast
Organisation. NRM has a similar role to an RTO, if ‘natural resources’ was replaced by
‘tourism’ in the quote from their website below this would be an adequate description for a
regional tourism body:
A not-for-profit organisation, Cradle Coast NRM fosters collaborative
management of our region’s natural resources by government, industry, private
enterprise, Aboriginal and community groups through the provision of
information, resources and technical support.23
23 http://www.cradlecoastnrm.com/business.html
2 4 REGIONAL TOURISM ORGANISATIONS DISCUSS IONDISCUSS IONDISCUSS IONDISCUSS ION PAPERPAPERPAPERPAPER
NRM has a nine member board and 14 staff members. The criteria for committee
membership are24:
• Capacity to adequately represent the whole geographic region;
• Capacity, skills and expertise to fulfil the roles of a Regional Natural Resource
Management Committee;
• Membership to provide a balance of natural resource management interests in the
region and gender, and to contain appropriate expertise on natural resource
management;
• Committee to include representation from the Aboriginal community, State and local
government, community and conservation interests, industry, and land managers,
including public land managers;
• The majority of members will be non-State Government members.
The staff members are funded by State and Federal Government, and are most are
funded on a project basis. One position is also partially funded by the West Coast
Council.
The NRM example provides a basis for the RTO: it can be operationally aligned with the
Cradle Coast Authority, and receive strategic direction from an industry representative
Tourism Board within the existing structure of the Authority.
4.2.2. MANAGEMENT RESPONSIBILITIES
The responsibilities of both the Tourism Board and the Cradle Coast Authority for the RTO
will need to be detailed as part of the process of establishing the new organisation. At a
basic level, the Tourism Board would be responsible for setting strategy and confirming
major initiatives of the RTO, while the Cradle Coast Authority would be responsible for the
day to day management and administration.
Although the details of this arrangement require further discussion, the role of the Tourism
Board may include:
24 Tasmanian Natural Resource Management Framework, Dept. Of Primary Industries, Water and Environment, 2002
• Approving the Regional Tourism Plan, and the RTO’s Business Plan and annual
workplan. The Cradle Coast Authority would then be responsible for the day to day
operation of these plans and strategies;
• RTO staff would be employed by the Cradle Coast Authority, to limit the
reproduction of administration services. The Tourism Board may approve new
positions, approve changes to position descriptions and confirm employment
advertising.
• Tourism initiatives proposed by the RTO, such as marketing campaigns, seminars
and development opportunities would be approved by the Tourism Board: this may
be based on the cost of the initiative.
4.2.3. RTO FUNDING
Currently, the financial contribution of the Cradle Coast Authority’s nine member Councils
includes funding for one tourism staff member. Other funds for tourism staff and
initiatives are sourced from Tourism Tasmania, industry via the Zone Marketing Groups,
and other local, state and Commonwealth Governments through grants programs and fee
for service projects. The Council funding for the Cradle Coast Authority also provides for
the administration support for the tourism team.
The RTO funding can be expected to be drawn from:
• Ongoing support from Local Government;
• Ongoing support from State Government;
• Project specific funding and grants from all tiers of Government;
• Membership fees; and
• Industry paying for RTO services, such as cooperative marketing, professional
development, and industry networking events.
The results of the Victorian RTO survey indicate that approximately two thirds of RTO
funding is received from Local Government, State Government, and Cooperative
Marketing. It is also of note that although co-operative marketing campaigns are
responsible for generating 17% of RTO funding, it comprises 40% of expenditure,
highlighting the importance of Government funding to their ongoing viability.
C R A D L E C O A ST AU TH OR I T Y 25 O C T O B ER 2011
The financial implications of the options in the following sections will need to be
considered as the preferred RTO structure takes shape, particularly following
determination of the roles and responsibilities of the RTO and the LTAs, and the structure
of industry fees.
4.3. TOURISM INDUSTRY BOARD
Tourism Tasmania require that the RTO be guided by a Tourism Board that is
representative of the local industry, the mix of industry skills and stakeholders, such as
councils: one Tourism Board member will represent Tourism Tasmania, but will not have
voting rights.
The Cradle Coast Authority’s board has one member representing the region’s tourism
industry; this position should be maintained, and also be a member of the Tourism Board
to provide ongoing interaction between the two boards.
4.3.1. TOURISM BOARD S IZE
The case studies presented in sections 3.3 and 3.4 have Tourism Boards of between 9
and 18 members. The considerations to be balanced in determining the number of
Tourism Board members are to have enough members to provide adequate
representation of the region’s tourism stakeholders, and not having too many members,
making meeting organisation difficult and reducing decision making efficiency.
The minimum Tourism Board size recommended in 7 and 13 is the largest that should be
considered by the RTO. This will ensure a range of industry and regional sectors can be
represented without it becoming cumbersome.
T O UR I S M B O A R D C O M P O S I T I O N
Generally, there a four groups that comprise RTO Tourism Board membership:
• LTA representatives;
• Local Government representatives;
• Representatives from government agencies, such as Parks and Wildlife Services,
arts and tourism; and,
• Industry skill based representatives.
Some Tourism Boards also have a Director from outside the tourism industry, but have
extensive experience in a field that is allied to the Organisation’s aims, such as marketing.
TABLE 9 CRADLE COAST TOURISM BUSINESSES
AccomAccomAccomAccom AttractAttractAttractAttract
’s’s’s’s EventEventEventEvent FoodFoodFoodFood HireHireHireHire RetailRetailRetailRetail ToursToursToursTours TransportTransportTransportTransport TotalTotalTotalTotal
Sub Region 1 Sub Region 1 Sub Region 1 Sub Region 1
LatrobeLatrobeLatrobeLatrobe 21 16 2 1 4 44
KentishKentishKentishKentish 36 20 2 4 62
DevonportDevonportDevonportDevonport 32 19 1 6 8 4 2 72
Central CoastCentral CoastCentral CoastCentral Coast 25 14 4 5 2 2 52
Sub Sub Sub Sub RegionRegionRegionRegion 1 1 1 1 TotalTotalTotalTotal
114 69 5 8 16 14 4 230
Sub Region 2Sub Region 2Sub Region 2Sub Region 2
BurnieBurnieBurnieBurnie 19 11 1 3 5 39
WaratahWaratahWaratahWaratah----Wynyard Wynyard Wynyard Wynyard 36 11 1 1 6 3 1 59
Circular HeadCircular HeadCircular HeadCircular Head 45 14 1 1 4 10 75
Sub Region 2 Sub Region 2 Sub Region 2 Sub Region 2 TotalTotalTotalTotal
100 36 3 5 15 13 1 173
Sub Region 3: Sub Region 3: Sub Region 3: Sub Region 3: King IslandKing IslandKing IslandKing Island
17 3 2 3 4 2 31
Sub Region 4: Sub Region 4: Sub Region 4: Sub Region 4: West CoastWest CoastWest CoastWest Coast
61 14 12 1 88
TotalTotalTotalTotal 292292292292 122122122122 2222 8888 16161616 35353535 41414141 6666 522522522522
Source: Cradle Coast Authority
The issue with the development of a regionally representative Tourism Board is that there
are 9 Councils and 19 LTAs in the region: not all of these can be represented without it
becoming unwieldy. Table 9 indicates the location and industry sectors of the tourism
businesses within the Cradle Coast region, based on the Authority’s database. This table
also includes a possible arrangement of Councils into Sub-Regions for discussion
purposes: sub-regions are not recommended to only provide organisation of the region
into geographical clusters, and would have no other purpose.
The Cradle Coast Authority’s board includes 2 directors nominated by the participating
Councils and another nominated by Council General Managers: this may be replicated in
2 6 REGIONAL TOURISM ORGANISATIONS DISCUSS IONDISCUSS IONDISCUSS IONDISCUSS ION PAPERPAPERPAPERPAPER
the Tourism Board if Councils are to be represented. The basis for Council having
Tourism Board representation is on the expectation that they will continue to have a
significant role in the region’s tourism, through funding the RTO and Visitor Information
Centres, supporting development, and through the roles of Tourism Officers.
To provide a mix of both regions and sectors, the industry representative members could
be comprised of:
O P T I O N 1 : I N D US T R Y S K I L LS T O UR I S M B O A R D
The Tourism Board would be comprised of 7 to 9 members with skills, representing a
range of tourism sectors and related functions, plus the Tourism Tasmania representative.
A further option would be to include 2 Council representatives. The advantages of this
Tourism Board structure is that representatives can be selected that have significance
experience in specific areas of tourism, that can be harnessed to the benefit of the entire
region, including:
• Marketing;
• Business development;
• Finance;
• Hospitality;
• Management;
• Development and industry training; and,
• Government partnerships and funding submissions.
This Tourism Board structure is similar to the Destination Melbourne board, where the
balance of industry and skills representatives is seen as a strength.
O P T I O N 2 : R E G I O N A L R E PR E S E N T A T I O N
12 members in total:
• 2 council representatives
• 1 from Tourism Tasmania;
• 2 from Sub Regions 1, 2 and 4;
• 1 from Sub Region 3;
• 2 members representing industry sectors not included in the 6 regional
representatives.
The sub-regions would not have any organisation or authority attached to them, but would
only be for the purposes of provided a structure to Tourism Board selections.
Geelong Otway Tourism identified their Tourism Board as one of the reasons for their
success as an RTO, particularly its regional representation and industry skills.
O P T I O N 3 : S E CT O R R E P R E S E N T A T I O N
11 members in total:
• 2 council representatives
• 1 from Tourism Tasmania, and
• 8 industry members:
• 2 accommodation representatives;
• 1 attraction and event representative;
• 2 members representing the rest of the industry;
• 1 member from an allied industry, such as marketing or development;
• 2 members selected to ensure broad regional representation
R E CO M M E N D A T I O N
The first option, an industry skills Tourism Board, is recommended for the Cradle Coast
RTO. This structure provides the RTO with the opportunity to have a range of
knowledgeable and successful industry figures leading the strategic development of the
region. This option is the one that squarely aligns with the intent of the Regional Tourism
Initiative.
Given the expanse of the Cradle Coast, providing representation across the region should
be the secondary consideration when selecting Tourism Board members: for example, if
two people from market backgrounds were contending for a position, one from an area
not represented on the Tourism Board would be preferable.
C R A D L E C O A ST AU TH OR I T Y 27 O C T O B ER 2011
It is recommended that an Interim Tourism Board be appointed for the first year, with the
purpose of establishing the operating and governance of the RTO, including:
• Tourism Board structure;
• Ongoing Tourism Board members selection processes;
• Membership fees and structures; and,
• Roles and responsibilities.
4.3.2. OPTIONS FOR APPOINTING TOURISM BOARD MEMBERS
The case studies included in sections 3.3 and 3.4 provide three options for determining
the individuals that fill positions on Tourism Boards. The methods employed will be
related to the composition of the Tourism Board, as discussed in the previous section.
O P T I O N 1 : S E CT O R O R R E G I O N A L N O M I N A T I O N S
The sectors or sub-regions that have been allocated a Tourism Board representative
nominate their preferred member: the method for determining who is nominated is left to
those to be represented.
O P T I O N 2 : E XP R E S S I O N S O F I N T E R E S T
A call for expressions of interest to fill Tourism Board positions, which may be specifically
to represent industry and/or a sub-regions could be distributed through the LTAs and
other tourism information services. Guidelines would be developed to ensure that the
industry Tourism Board members represented a broad range of the tourism industry.
O P T I O N 3 : D I R E CT O R E L E CT I O N S
Members of the RTO and/or LTAs may be given the opportunity to elect their board
representatives, typically at RTO Annual General Meetings.
R E CO M M E N D A T I O N
For the first year Interim Tourism Board, expressions of interest would be sought for
positions. An independent panel of three, appointed by Tourism Tasmania and the Cradle
Coast Authority, should consider and make recommendations as to the initial Tourism
Board members. One of the roles for the Tourism Board in the first year would be to
establish the ongoing procedure for selecting board members.
4.3.3. THE CHAIRPERSON
There are two broad options for determining the chair of the industry board, either select a
Tourism Board and then identify the chair, or appoint a Tourism Board member
specifically to the chair.
If the chair is to be appointed specifically to the role, the RTO may call for expressions of
interest, or if there is an outstanding candidate, approach them directly. One
consideration is if the chair is to be approached directly, there may be an expectation that
it will be a paid position.
R E CO M M E N D A T I O N
Depending on the available resources, and knowledge of suitable people to act as the
chair, consideration should be given to approaching somebody directly to be the inaugural
chair. The person approached to be the chair should ideally have widespread respect
within the tourism industry, have experience in tourism governance, and provide a
figurehead for the industry in the Cradle Coast region.
4.4. RELATIONSHIP WITH LTAS
There are 19 LTAs operating within the Cradle Coast Region. It is important to for the
RTO to promote strong and viable sub-regional representation from the LTAs. To do this,
the RTO will need to work with the region’s LTAs to discuss and confirm their respective
roles and responsibilities and work with local communities, local governments and the
industry to strengthen and help improve their overall performance.
Any change to the current arrangement for LTAs needs to be inclusive, to ensure the
industry members who have committed time and resources to creating successful LTAs
are included in the new associations.
4.5. INDUSTRY MEMBERSHIP
There are two main aspects to consider with industry membership, the requirement for the
RTO to be lead by and responsive to the needs of industry and membership fees as a
source of income. Membership models should offer value for industry and create
2 8 REGIONAL TOURISM ORGANISATIONS DISCUSS IONDISCUSS IONDISCUSS IONDISCUSS ION PAPERPAPERPAPERPAPER
connections between organisations25. The examples provided in section 3.4.2 indicates
the range of membership options currently employed by RTOs, and can be broadly
summarised as being:
O P T I O N 1 : F L A T F E E
A flat fee for membership, with a user pays approach for additional services.
O P T I O N 2 : F E E B A S E D O N I N D US T R Y S I Z E
A tiered structure, based on business type and size.
O P T I O N 4 : F E E B A S E D O N S E R V I CE
A tiered structure, based on the level of service and support from the RTO.
Based on the assumption that the funding currently provided to the Cradle Coast Authority
for tourism purposes will continue the first aspect of industry membership, industry
leadership and responsiveness, should be the primary consideration.
R E CO M M E N D A T I O N
The model that is most likely to provide the greatest level of membership is Option 1, with
a basic level of service provided for a flat fee, such as the structure of the South Coast
Regional Tourism Association, summarised on page 16.
This fee should be for the minimum range of services, such as newsletters, voting rights if
applicable, and priority access to marketing campaigns and other RTO services. Due to
the number of LTAs in the area that members are already paying fees for services to,
initially a minimal approach is recommended.
This membership structure enables the RTO to negotiate directly with prominent tourism
attractors in the region, to ensure that the icons are highlighted, and draw visitors in to
investigate other tourism offerings in the region.
Also, the user pays model for services provides feedback to the RTO through the
businesses’ willingness to support activities financially. If disparate activities such as
marketing campaigns, website promotion, professional development and networking
25 Tourism Tasmania: Regional Tourism Framework.
events were embedded in an annual fee, industry satisfaction with these activities would
not be as apparent.
The structure of memberships and fees should be an initial consideration of the Interim
Tourism Board.
4.5.1. LTA AND RTO FEES
In addition to determining the RTO membership fee structure, the relationship between
RTO and LTA fees needs further consideration, particularly following the definition of the
roles and responsibilities of the organisations and the budget requirements of the RTO
becomes apparent.
The Regional Tourism framework being implemented by Tourism Tasmania is to make
tourism more efficient, and the discussion of roles and responsibilities in section 4.6
indicates that as the responsibilities of RTO and LTAs need to be complimentary, and not
compete for funding and/or responsibilities, the fee structure should be reinforce this to
industry.
The variation in fees and roles of the LTAs indicates that at least in the short term, the flat
fee structure recommended in the previous section is the most readily implementable.
The membership fee should be determined when the business model for the new entity is
developed.
The fee mechanism used by the South Coast Regional Tourism Organisation is worth
consideration, as it provides flexibility for potential members. The $50 flat membership
fee can be paid directly to the RTO, or members can choose to include the additional $50
fee when paying their LTA fee26.
4.6. ROLES AND RESPONSIBILITIES
The Regional Tourism Initiative identifies the role of an RTO as co-ordinating their
region’s marketing, governance and industry development activities. In addition, Tourism
Tasmania27 will not support an RTO that:
• Adds another layer of governance without adding value. Fundamentally the RTO
should reduce the number of organisations delivering tourism services. This will
26 http://corporate.southcoast.net.au/opportunities-for-individual-and-business-members/ 27 Tourism Tasmania: Regional Tourism Framework.
C R A D L E C O A ST AU TH OR I T Y 29 O C T O B ER 2011
include taking on the current role of the Zone Marketing Groups that will not
continue to exist outside of the RTO.
• Fragments regional tourism funding. The RTO should aim to aggregate funding to
ensure more effective outcomes for all stakeholders, at least by ensuring the
relevant stakeholders have agreed on their objectives and coordinated the timing
and delivery of actions against these, effectively leveraging each funding pool.
• Fails to clarify and align roles and responsibilities with stakeholders for the key
functions identified in the regional tourism plans. These three requirements of an
RTO lead to the need to have clear roles and responsibilities for both the RTO and
the region’s LTAs: as noted previously, the diverse and numerous LTAs within the
Cradle Coast region may make this a complex process. The roles for the RTO and
LTAs need to be complimentary.
The businesses that responded to the survey conducted into the state of tourism in the
Cradle Coast region identified that the primary responsibilities for an RTO should be
'Business development tools and advice', 'Intrastate marketing' and 'Industry networking
and communication'28, and LTAs was ‘visitor information services”.
The following sections provide an overview of the roles and responsibilities that are
typically attributed to an RTO.
4.6.1. REGIONAL TOURISM PLANNING
Under the Regional Tourism Initiative, RTOs must produce a Regional Tourism Plan that
reflects the destination management approach, and will be an early priority for the newly
established RTO.
Destination Management Plans are “organised around defined visitor destination, each
with its own natural and unique tourism assets, and unique development, marketing and
management needs”29.
The need to approach the range of distinct destinations within the Cradle Coast region in
a destination management approach to a Regional Tourism Plan further supports the
28 Cradle Coast Tourism Business Survey results, combination of RTO and Cradle Coast Authority results for “Identify which organisation should have primary responsibility for the following areas of tourism destination management?” 29 A National Framework for Best Practice Destination Management Planning, 2007. Dept. Resources, Energy and Tourism
need to define the LTAs that align with the RTO, and are engaged in the process of
strategic tourism planning.
4.6.2. MARKETING
Marketing is a core role for the RTOs within the Regional Tourism Initiative and for RTOs
in general. As Tourism Tasmania transitions from the Zone Marketing Groups, the RTOs
will play an important role in regional promotion through cooperative marketing
campaigns. The RTO will be primarily focused on interstate and intrastate marketing, with
Tourism Tasmania being responsible for international marketing.
In addition, the production of regional visitor guides, overarching regional tourism
websites and coordinating sub-regional initiatives will be central to the RTOs
responsibilities.
4.6.3. PRODUCT AND INFRASTRUCTURE DEVELOPMENT
The State of the Region Report provides indication that there is a need for increased
investment in tourism product within the Cradle Coast region, and that a co-ordinated
investment and marketing approach should be considered to improve the visitation and
yield. This provides the basis for recommending a role for the RTO in product and
infrastructure development, and in investment facilitation.
As noted in section 3.5, 68% of Victorian RTOs indicated that they have a role in product
and infrastructure development for their region.
The key components of product and infrastructure development include:
• Lobbying for public investment in tourism infrastructure;
• Undertaking product audits and gap analysis;
• Providing tourism research data and analysis to support and promote investment;
• Prioritising major tourism investment projects across the region.
4.6.4. ADVOCACY
As the organisation representing a significant portion of the state’s tourism industry and
product, the RTO will have a role in advocating on behalf of the region, through its links
3 0 REGIONAL TOURISM ORGANISATIONS DISCUSS IONDISCUSS IONDISCUSS IONDISCUSS ION PAPERPAPERPAPERPAPER
with Tourism Tasmania and also with other Federal and State Government agencies that
may impact on the region.
4.6.5. INDUSTRY DEVELOPMENT
The RTO’s role in industry development may include providing awareness and access to
development opportunities presented by Tourism Tasmania, organising industry tours and
seminars to promote best practice, industry networking events and facilitating the delivery
of industry training, such as hospitality qualifications.
4.6.6. COMMUNICATION AND NETWORKING
The RTOs position as the link between Tourism Tasmania and their region’s LTAs and
tourism stakeholders makes communication an important aspect of the RTOs role.
Regular communication and updates to industry was identified as a key aspect of the
success of the RTO case studies in section 3.3.
Communication should include data on the region’s tourism performance from the
Tasmanian Visitor Survey and Tourism Research Australia, as well as policy and strategic
initiatives that may impact on the region.
4.6.7. VISITOR INFORMATION SERVICES
As discussed in the Cradle Coast State of the Region Report, there is a need to review
the Visitor Information Services provided in the Cradle Coast region, to ensure that the
maximum benefit be obtained from the resources allocated to tourism. This is also an
outcome expected by Tourism Tasmania of the Regional Tourism Plan, which is to be
produced by the RTO.
Consumption of visitor information has changed significantly in the past 10 years and it is
essential that resources and effort are linked to demand and visitor needs. A review of
the provision of online visitor information services, walk in VICs, collateral and the need
for smart phone based information should be considered.
Currently, each Council in the Cradle Coast, except King Island, funds and operates an
accredited VIC30. If a review of Visitor Information Services finds that there are too many
VICs in the region, the RTO is the most likely body to coordinate the streamlined service,
30 The Circular Head VIC is funded by Council, but operated by the LTA.
as all Councils could continue funding VICs in the region through the RTO, even if it was
not located in their municipality. If the number of VICs was reduced in the region, the
financial savings could be redirected to other Visitor Information Services requiring more
resources, which may include internet presence, smart phone applications or updating
marketing collateral.
As discussed in section 3.3.2, Mornington Peninsula Tourism regard their operation of the
VIC as an important factor in their success, as it provides a direct link to visitors to the
region, and provides industry with an opportunity to access the organisation.
4.6.8. EVENTS BIDDING
The recent survey of Victorian RTOs, included in section 3.5, indicates that although only
21% bid for events in their region, a significant proportion of RTOs are considering taking
a role in this area. The reason for interest in this area is that a coordinated, regional
approach that combines the available resources. In addition, by consolidating the bidding
for events within the RTO, the possibility of multiple bids within the region in minimised,
and bidding expertise can be developed through regular bidding by the area responsible,
in comparison to infrequent bidding by disparate organisations.
4.7. TRAITS OF SUCCESSFUL RTOS
Section 3.3 provides insight into what RTOs see as the key factors in their success, and
are should be included as key elements of the new body’s operations. The recurrent
factors leading to success include:
• Regular communication with industry, with use of new media as an increasingly
important channel;
• The recognition of the different attributes of the different sub-regions aligned with
the RTO;
• Partnerships with key regional and tourism stakeholders, including all tiers of
government; and
• Being visible, to ensure industry is aware of the RTO’s role in the promotion and
development of tourism within their region.
C R A D L E C O A ST AU TH OR I T Y 31 O C T O B ER 2011
4.8. SUMMARY OF RECOMMENDATIONS
RTO AttributeRTO AttributeRTO AttributeRTO Attribute RecommendationRecommendationRecommendationRecommendation ReasoningReasoningReasoningReasoning
1. 1. 1. 1. Organisational Structure and relationship to the CCAOrganisational Structure and relationship to the CCAOrganisational Structure and relationship to the CCAOrganisational Structure and relationship to the CCA As per the CCA Natural Resource Management model The NRM’s strategic alignment to a board, and operational alignment to the Cradle Coast Authority provides an existing and functioning template for the RTO.
2. 2. 2. 2. Tourism Board Tourism Board Tourism Board Tourism Board
NoNoNoNo.... of of of of Tourism Tourism Tourism Tourism Board MembersBoard MembersBoard MembersBoard Members 7-9 Tourism Board Members 1 from Tourism Tasmania, and 8 to represent the skills applicable to the tourism industry.
Council membership on the Tourism Board is also an option, given their ongoing involvement in tourism.
The Tourism Tasmania representative is a requirement of the Regional Tourism Initiative.
ChairChairChairChair Approach someone specifically to be the inaugural chair of the RTO board
Ensure that the Interim Tourism Board is chaired by somebody with the skills and experience to establish a successful RTO, provide industry leadership and be a figurehead for the organisation.
InterimInterimInterimInterim TourismTourismTourismTourism BoardBoardBoardBoard Install an Interim Tourism Board to confirm the organisational and governance structures of the RTO over its year of operation.
Enables the formation of a Tourism Board from industry to determine the RTO governance systems and organisational structure over the first year.
A committee including CCA and Tourism Tasmania selects Interim Tourism Board members by expression of interest. The Interim Tourism Board will determine the ongoing process.
4. Member Fees4. Member Fees4. Member Fees4. Member Fees A flat fee, with user pays for additional services. Encourages increased RTO membership.
Enables negotiation of the RTOs relationship with the region’s iconic tourism businesses and products, to ensure their commitment to RTO activities.
Provides feedback to the RTO on industry satisfaction and needs.
5. Roles and 5. Roles and 5. Roles and 5. Roles and ResponsibilitiesResponsibilitiesResponsibilitiesResponsibilities Regional Tourism Planning
Marketing
Product and Infrastructure Development
Advocacy
Industry Development
Communication and Networking
Visitor Information Services
Events Bidding
These RTO responsibilities should be considered as they will ensure that the RTO meets Tourism Tasmania expectations regarding effective use of resources, and provide leadership and governance for the region’s tourism industry.
3 2 REGIONAL TOURISM ORGANISATIONS DISCUSS IONDISCUSS IONDISCUSS IONDISCUSS ION PAPERPAPERPAPERPAPER
APPENDIX A CRADLE COAST LTAS
The following list of LTAs has been provided by the Cradle Coast Authority, and is used
as the basis for the discussion of LTAs in this document:
Burnie Tourism Association
Circular Head Tourism Association
Kentish Council Economic Development Committee
Cradle Mountain Tourism Association
King Island Tourism
Caves to Canyon Tourism Association Inc
Waratah Wynyard Tourism Special Committee
Latrobe and Port Sorrell Tourist Association
Destination Strahan (not currently functioning)
Project Queenstown – Tourism Sub-Committee
Wilmot Tourism & Progress Association
Sheffield Inc.
Railton & District Development Association
Wilmot Area Action Group
Discover Strahan
Tullah Progress Association
Rosebery Development Association Inc.
West Coast Heritage