Tourism 21 - A Strategic Business Plan 1997-2000

1.1 A Shared Vision

The vision of the Government of Tasmania and TCA Tasmania is to ensure tourism achieves its full potential as a strategic growth industry to become a cornerstone of the Tasmanian economy generating income, employment and investment for the benefit of all Tasmanians.

In practical terms, this means a core 'export earning' industry equivalent to, and potentially more valuable than, Tasmania's other export sectors of manufacturing, agriculture, forestry, aquaculture and mining.

The export earning income is generated entirely from the visitors, our customers, whom we attract from interstate and overseas. Unlike other industries where we transport goods and services to external markets, tourism is a `people' business. Tasmania competes in external markets to create a destinational appeal to attract visitors to travel to Tasmania and purchase local goods and services.

Total expenditure by interstate and overseas visitors in Tasmania in 1994 was $452 million [TVS 1994]. By broad comparison, contributions to Tasmania's Gross State Product [GSP] in 1993/94 [ABS Catalogue 5220.0] by other export earning sectors were, as follows:

- manufacturing - $1,242 million

- agriculture, forestry and fishing - $473 million

- mining - $137 million

While tourism is not identified as a separate entity in GSP, the State Government's Decade of Growth document shows that tourism contributes between 7 and 8% to GSP and generates direct and indirect employment for 17,000 Tasmanians [Centre for Regional Economic Analysis 1992].

In recent years, the value of tourism expenditure has been growing at an average 4 per cent per annum in real terms.

Tourism 21 has concluded that with the right strategies and commitments, the tourism industry has the potential to become a major sector of the Tasmania economy with annual growth in interstate and international tourism expenditure in the order of 5 to 6 per cent in real terms.

Tourism has the potential to become one of the top two export income earning and employment sectors of the Tasmanian economy over the next ten years.

1.2 Ten Year Industry Targets

To give substance to the vision, Tourism 21 has concluded that fundamental, ten year targets are needed to challenge the industry and Government to achieve its growth potential and substantially better performance in interstate and overseas markets.

The targets for 2007 are to:

• double tourism expenditure to more than $1 billion in real terms [1996 dollars]; and

• achieve a minimum of 23,000 jobs for Tasmanians from tourism and related employment.

Success should lift tourism's contribution to GSP to more than 10% and make interstate and overseas tourism the largest export earning generator of both direct and indirect jobs in the Tasmanian economy.

The targets are also the core industry benchmarks to monitor progress and ensure that industry planning is based on performance and results.

1.3 Shared Commitment and Benefits

The vision and ten year targets represent a major challenge for all stakeholders to transform Tasmanian tourism from a fragmented, seasonal industry into a cohesive, high performance industry that is strategically targeted to attracting interstate and international visitors and to servicing their needs and desires.

It follows that for the vision to work, there needs to be a clear commitment from all stakeholders to make the changes needed to succeed and, at the same time, accept that the benefits generated by growth will be shared.

Tasmania is a small State, with small market share and a predominance of small operators competing against powerful competitors with large budgets. To be successful, it is critical for industry stakeholders and the Tasmanian community to understand that they must be united with a commitment to develop Tasmanian tourism. Without leadership and a commitment to a common purpose, there will be little change and the vision and targets will remain unattainable ideals.

With this commitment comes an equal expectation that the industry, the community and all levels of Government will share in the rewards generated by growth. Unless there are real benefits and tangible returns for all players, a consistent and worthwhile commitment will not be forthcoming.

1.4 Strategic Direction to 2000

The emphasis in the Strategic Business Plan for the next three years is to complete building the foundation needed for Tourism Tasmania and the industry to deliver this vision and targets.

The industry will grow substantially and sustainably in the first decade of the new millennium only if the Business Plan focuses on developing interstate and overseas tourism. [A separate but related Business Plan is needed to develop the intrastate trade.]

The foundation is needed to develop an industry which:

• is united and progressive, having resolved internal issues of structures and roles;

• is focused on serving the needs and desires of our interstate and overseas customers and meeting the requirements of the market place;

• is world class and internationally competitive;

• generates viable financial results for tourism businesses and is positioned to deliver long term industry growth; and

• provides flow-on employment, social and cultural benefits for the Tasmanian community and economy.

Building the foundation has already started, and during the last two years has achieved the following milestones:

• TCA Tasmania has emerged as the peak industry body for tourism;

• the Tourism Protocol Agreement between the Government and TCA Tasmania has been signed and implemented;

• the former Department of Tourism, Sport and Recreation has been restructured to create Tourism Tasmania, with an independent industry-based Board, a new Chief Executive and a market focused management structure;

• State Government funding for interstate and overseas marketing has increased, including a major destinational advertising campaign and research into market development opportunities;

• the Bass Strait Fare Equity Scheme has been introduced; and

• major industry development and deregulation reform has been initiated.

However, Tourism 21 has concluded that more foundation work is required on three critical success issues, including developing:

Issue 1 - A Market-Led Industry

Issue 2 - Sustainable Investment in Quality and Export Ready Product

Issue 3 - An Integrated Industry and Leadership Structure and Strategic Partnerships

This Plan presents the goals and strategies to address these critical issues and the actions needed to build this foundation and generate positive outcomes.

1.5 Industry Planning and Performance Measures

Central to the development of this foundation is the adoption of a planned, performance driven approach in which strategies and actions are integrated and performance is measured and evaluated as part of an ongoing planning cycle.

Tourism 21 provides TCA Tasmania, Tourism Tasmania and all other stakeholders with the strategic focus and framework to develop their own corporate and business plans, marketing and operational programs and partnerships for action.

To ensure planning is based on performance, every strategy and activity whether it be long, medium or short term, must be measurable and geared to achieving performance targets.

Overall, the measures for success will centre on:

• visitor expenditures, length of visitor stays, tourism revenue and visitor numbers;

The Tasmanian Visitor Survey [TVS] conducted by Tourism Tasmania will continue to be the main source of performance data coupled with targeted research in specific market places.

• visitor satisfaction to ensure the holiday experience and services meet and/or exceed expectations;

The TVS will continue to be an annual source of overall visitor satisfaction data although additional special purpose surveys and processes will be put in place in conjunction with industry to measure the quality of particular services and products.

• business turnover, potential and yield;

An industry barometer is needed to provide information on a quarterly or half yearly basis to monitor the overall performance of tourism businesses rather than relying on anecdotal or one-off comments on how businesses are performing.

TCA Tasmania needs to develop the barometer with Tourism Tasmania and possibly the Tasmanian Chamber of Commerce and Industry which also conducts its own business surveys.

• investment to continue to improve and develop `export ready', quality products for customers;

The opportunity exists to integrate key investment measures in the industry barometer noted above. The Tourism Operator Survey conducted periodically by Tourism Tasmania also has potential to provide more detailed information on the different forms of investment operators make to develop their products and services.

• employment levels, particularly opportunities for youth;

The Australian Bureau of Statistics surveys will continue to provide the benchmark data for employment, however, there needs to be a clear definition of tourism related businesses.

• tourism's contribution to Gross State Product;

Currently, tourism is not recognised as a core industry sector. Accordingly, tourism's contribution to GSP has been calculated by the Centre for Regional Economic Analysis. The State Government needs to ensure tourism is clearly identified as a core sector of the Tasmanian economy and GSP.

The Plan details areas where further performance targets and measures are required.

All performance targets need to relate directly to the ten year targets and be based on well researched projections.

Performance information and data must be evaluated and used to further develop plans, strategies and actions.