TTF View – October 2010
Tourism industry must seek better deal from politicians
in election year
PUBLIC perception of Australia’s tourism industry is largely based on the latest Tourism Australia advertising. From Hoges and Lara to Baz and beyond, it’s great that there’s so much interest in tourism campaigns and that they generate significant public debate. It’s a strong indication that people are engaged with the issue and understand the importance of tourism to the national economy.
However, this demand-side focus must be balanced with the need to continually improve our product and provide innovative and stimulating experiences. It’s no good if we’re all sizzle and no sausage.
Tourism precincts rely on quality locations to boost their attractiveness to potential visitors. Unfortunately, this puts tourism in direct competition with commercial and residential developments, both of which have historically offered investors a higher return.
As a result, many prime sites are dedicated to either office space or housing and, although mixed use zones allow for the inclusion of restaurants, cafés, bars and other entertainment options to help activate the precinct, planning and zoning issues remain a bugbear for tourism development.
The New South Wales Government recently released a report from its joint Ministerial Tourism Planning and Investment Taskforce, which was chaired by TTF managing director Christopher Brown.
The report examines the reasons for a lack of tourism investment and looks at ways to redress that imbalance. Among the issues it covers are strategic planning reforms, destination development, convention and exhibition space, Sydney hotel demand and planning incentive needs.
The report acknowledges that tourism has faced an uphill battle to secure favourable outcomes and that tourism has not been an integral part of the planning process in NSW, despite being a significant employer and generator of economic activity.
The report recommends ways to “mainstream” tourism, trying to ensure that decisions taken in related areas consider their impact on tourism activity. It looks at the need to invest in economic infrastructure, such as convention and exhibition space, and to prioritise the development or refurbishment of state-significant tourism assets and precincts.
It also urges reform of the definition of “highest and best use” to recognise that, while there are short-term disadvantages in profitability and competitiveness of investing in tourism infrastructure or assets, doing so delivers an economic return to the state, as well as facilitating intangibles like cultural identity and social development.
The news that the NSW Government is accepting the recommendations made by the taskforce is very welcome.
It’s a business mantra to under-promise and over-deliver; doing the reverse is a brand killer. We’re telling the world “there’s nothing like Australia”, so we need to do all we can to make sure that’s true.
The sausage must match the sizzle.
TTF View appears quarterly.