RegionalTourismOrganisations_DiscussionPaper

AuthorsAuthorsAuthorsAuthors

Todd Denham

Fiona Dunn

Reviewed ByReviewed ByReviewed ByReviewed By

Mike Ruzzene

© Copyright, Urban Enterprise Pty Ltd, August 2008.

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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


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


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.


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


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


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.


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.


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.



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%


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.


The only responsibility that received a substantial level of support as a LTA responsibility

in the Tourism Business Survey was visitor information services.


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%



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.


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.


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;


• 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;


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.


3.3.3. GEELONG OTWAY TOURISM


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.


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.



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


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.


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.


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.


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.


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.


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


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.


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


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


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.


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


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.


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.


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.


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


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.


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.


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


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.


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.


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

RegionalTourismOrganisations_DiscussionPaper

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