MOUNT ISA TOURISM STRATEGY 2007-2017

MOUNT ISA TOURISM STRATEGY - JANUARY 2007

Prepared for: Mount Isa City Council

and Mount Isa Tourism Association

MOUNT ISA TOURISM STRATEGY

2007-2017

Prepared by: National Centre for Studies in Travel and Tourism Pty Ltd

A.C.N. 58 011 075 997

January 2007

SUSTAINABLE TOURISM SERVICES


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CONTENTS

1.0 EXECUTIVE SUMMARY .................................................................................. 1 1.1 SUMMARY OF RECOMMENDATIONS...................................................................2

2.0 BACKGROUND AND OBJECTIVES................................................................... 4 2.1 BACKGROUND................................................................................................4 2.2 OBJECTIVES ..................................................................................................4

3.0 PLANNING PROCESS..................................................................................... 7 4.0 CONTEXT ANALYSIS ..................................................................................... 8

4.1 LITERATURE SEARCH......................................................................................8 4.2 INDUSTRY MEETINGS .....................................................................................8

5.0 TOURISM OVERVIEW.................................................................................. 10 5.1 VISITOR MARKETS ....................................................................................... 10

5.1.1 Target Markets ................................................................................... 10 5.1.2 Visitor Characteristics (what do we know about these visitors?) ................. 11 5.1.3 Overall Motivations (why do they visit Mount Isa and the North West?)....... 11 5.1.4 The Journey (where do they come from and where do they go to?) ............ 12

5.2 VISITOR EXPENDITURE ................................................................................. 12 5.3 DOMESTIC VISITORS TO THE OUTBACK REGION AND MOUNT ISA ...................... 12

5.3.1 Age of Domestic Visitors ...................................................................... 14 5.3.2 Seasonality of Domestic Visitors............................................................ 14 5.3.3 Mount Isa Domestic Visitation............................................................... 15

5.4 INTERNATIONAL VISITORS TO THE OUTBACK REGION & MOUNT ISA .................. 17 5.4.1 Age of International Visitors ................................................................. 17 5.4.2 Seasonality of International Visitors....................................................... 18 5.4.3 Mount Isa International Visitation.......................................................... 18

5.5 SEASONALITY .............................................................................................. 20 5.6 CURRENT MARKET/EMERGING OPPORTUNITIES................................................ 20 5.7 VISITOR SATISFACTION................................................................................ 21

6.0 IMPORTANCE OF TOURISM TO MOUNT ISA................................................. 23 6.1 ESTIMATING TOURISM’S CONTRIBUTION TO AN ECONOMY................................ 23 6.2 TOURISM’S ECONOMIC CONTRIBUTION TO OUTBACK REGION & MOUNT ISA........ 24 6.3 ENVIRONMENTAL REVIEW ............................................................................. 26

7.0 COMMUNITY AND INDUSTRY FEEDBACK..................................................... 28 7.1 STAKEHOLDER FEEDBACK AND COMMENT ....................................................... 28 7.2 UNDERSTANDING OF TOURISM WITHIN MOUNT ISA ......................................... 29

8.0 CURRENT DELIVERY MODEL FOR MOUNT ISA TOURISM ............................. 30 8.1 OVERVIEW .................................................................................................. 30 8.2 THE ROLE OF MOUNT ISA CITY COUNCIL ......................................................... 31 8.3 THE STRUCTURE OF THE TOURISM INDUSTRY IN AUSTRALIA ............................. 31 8.4 THE CURRENT STRUCTURE OF TOURISM IN MOUNT ISA .................................... 32 8.5 TYPICAL ROLES AND RELATIONSHIPS OF A LOCAL TOURISM ORGANISATION....... 33

8.5.1 Port Douglas Daintree Tourism Association (PDDTA) ................................ 33 8.5.2 Tourism Noosa ................................................................................... 35

8.6 THE CURRENT ROLE OF MOUNT ISA TOURISM ASSOCIATION (MITA)................... 35 9.0 STRATEGIC DIRECTION AND OUTLOOK ...................................................... 36 10.0 TOURISM MARKETING AND DEVELOPMENT ................................................ 37

10.1 CONSUMER PERCEPTIONS OF MOUNT ISA ....................................................... 37



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10.2 MARKETING ACTIVITIES................................................................................ 37 10.3 ROLES AND RESPONSIBILITIES – PAST AND FUTURE ........................................ 38 10.4 EXPECTATIONS OF FUTURE GROWTH.............................................................. 39 10.5 PRODUCT DEVELOPMENT............................................................................... 40

10.5.1 Infrastructure and Attraction Projects .................................................... 41 10.5.2 Promotional Projects ........................................................................... 43 10.5.3 Product Development Projects .............................................................. 44

11.0 FUTURE TOURISM MODELS......................................................................... 45 11.1 A STRATEGIC MODEL FOR ECONOMIC DEVELOPMENT – MODEL 3 ....................... 46 11.2 SUPPORT FOR A STRATEGIC ECONOMIC DEVELOPMENT MODEL.......................... 49 11.3 OPERATIONAL BUDGET ................................................................................. 50 11.4 FUNCTIONS ................................................................................................. 51 11.5 ESTABLISHMENT AND OPERATIONS................................................................ 52

12.0 OTHER TOURISM ROLES AND ACTIVITIES .................................................. 54 12.1 SUSTAINABLE TOURISM................................................................................ 54

12.1.1 Communicating the Benefits of Tourism to Local Communities................... 56 13.0 IMPLEMENTATION OF NEW TOURISM MODEL............................................. 58

13.1 STAGE 1 – CONSULTATION............................................................................ 58 13.2 STAGE 2 – PREPARATION .............................................................................. 59 13.3 STAGE 3 – IMPLEMENTATION......................................................................... 60

14.0 SUMMARY OF RECOMMENDATIONS ............................................................ 61 APPENDIX A – TOURISM ACTION PLAN (TAP) .......................................................... 63 APPENDIX B – A NEW TOURISM MODEL (MODEL 1) AND AN AMALGAMATED MODEL FOR TOURISM & BUSINESS (MODEL 2) .................................................................... 81 APPENDIX C – FEEDBACK FROM CONSULTATION MEETINGS .................................... 85 APPENDIX D - CASE STUDIES OF SIMILAR ECONOMIC DEVELOPMENT (INCLUDING TOURISM) ORGANISATIONS IN OTHER REGIONS..................................................... 89 APPENDIX E – LIST OF EXISTING ACCOMMODATION, ATTRACTIONS AND EVENTS .. 93 APPENDIX F - THE RATIONALE FOR GOVERNMENT FUNDING OF TOURISM DESTINATION MARKETING....................................................................................... 95 APPENDIX G - CASE STUDY; LOCAL GOVERNMENT NEW ZEALAND TOURISM PARTNERSHIPS…………………………………………………………………………………97 APPENDIX H - LOCAL TOURISM FUNDING MECHANISMS.......................................... 98 APPENDIX I - CASE STUDIES FOR A DIFFERENTIAL RATE LEVY.............................. 102 APPENDIX I – SPECIAL RATES AND CHARGES ........................................................ 108 APPENDIX J – OUTBACK QUEENSLAND COOPERATIVE DOMESTIC MARKETING OPPORTUNITIES 2006/2007.................................................................................. 117

SUSTAINABLE TOURISM SERVICES 1


1.0 EXECUTIVE SUMMARY

In July 2006 Mount Isa City Council (MICC) and Mount Isa Tourism Association (MITA) contracted Sustainable Tourism Services (STS) to examine the effectiveness of the current management model for tourism in Mount Isa, identify priority action areas, and make recommendations as to how Mount Isa could best manage tourism over the next ten years. The name of Mount Isa is synonymous with mining on a large scale. ‘The Isa’ exists because of its mine and mining continues to influence almost every aspect of the city’s development. The size of the tourism industry is small and there are few resources to undertake tourism promotion and development initiatives that are needed to realise the tourism potential of the area. MICC has filled the leadership and resources gap by becoming the main coordinator of tourism activities in recent years. The private sector tourism body (MITA) is limited in its operations with no staff and a small funding base. Given the size of Mount Isa and its role as a transport and service hub the City has an opportunity to service a wider range of visitor markets than other towns in the North West/Outback Queensland. STS consulted with key industry stakeholders to identify issues and future options and reviewed best practice models in other areas which might be applicable to Mount Isa. In preparing this report, three options were considered for a future tourism model for Mount Isa. One was a tourism specific model, the second a merger with the Chamber of Commerce and the third was a new economic development model that included tourism and the Chamber of Commerce. In discussions with all of the major stakeholders in Mount Isa, including MITA and the Chamber of Commerce, there was a strong preference for the new economic development model which has the potential to significantly lift the profile of the city and increase its ability to compete for greater investment and funding input from industry and governments. This model also has the potential to provide a more solid and sustainable base for leadership and coordination of tourism development in The Isa. This Economic Development/Tourism model proposes a proactive, collaborative and strategic economic development role on behalf of the City and all its commercial activities – including tourism. It proposes a significant increase in Mount Isa’s capacity to control its own destiny for the future. It also brings together State and Local Governments and all of the main corporate players in the private sector for a united focus on strategic planning and economic development and provides a common direction for all government and private resources for the benefit of the City. The predominant reason for the perceived ineffectiveness of past tourism marketing has been the lack of resources. The new model provides for more funding and resources for planning and implementation of tourism marketing and development. This report also contains recommendations for implementation of the new Economic Development/Tourism Model.



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1.1 SUMMARY OF RECOMMENDATIONS

It is recommended that: 1. A new economic development organisation should be established for Mount Isa which

will undertake strategic planning and economic development activities including tourism and business marketing and development.

2. The new organisation should be a limited liability company owned by its members and

governed in accordance with a constitution. 3. The functions of the new organisation should include:

• Leadership and/or coordination on behalf of the City for economic development issues

• Promotion of the City as a place for living, visiting and investing • Identification of opportunities for business and tourism enhancement • Business promotion and development • Tourism promotion and development • Investment promotion and attraction



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• Infrastructure planning and input into government planning processes • Industry attraction • Commercial/business enhancement • Industry cluster development (including tourism) • Events development and/or facilitation • Employment generation • Representation of the Isa within & outside the City • One voice for business and tourism – spokesperson role • Provision of business and tourism information to various internal and external

audiences • Community education of the benefits from business and tourism

4. An annual economic development strategy for Mount Isa is developed and implemented

by the new organisation on behalf of its stakeholders, containing action plans for both tourism and business marketing and development.

5. A dedicated tourism positioning and brand strategy should be prepared. This should

provide overall direction for all Mount Isa promotional activities.

6. MICC should be a major partner and financial contributor to the new Economic Development organisation. In this way, MICC will coordinate its support for tourism with other business and economic development activities.

7. An increased emphasis should be given to managing tourism in ways which are

sustainable and contribute benefits to the Mount Isa community. 8. A communication plan to increase the level of knowledge and understanding of tourism

in the City should be developed, including more comprehensive information on tourism’s contribution to Mount Isa’s economy.

9. Council and major stakeholders should adopt a staged implementation plan in relation to

the recommended actions contained in this report. (An implementation framework is enclosed.)

10. The main stakeholders (as listed below) should form an Implementation Taskforce which

will coordinate the preparation work and the implementation of the new organisation: • MICC • Xstrata Copper • Queensland Government Department of State Development and Innovation • Mount Isa Water • Mount Isa Airport • Mount Isa Chamber of Commerce • MITA

11. The Taskforce should be formed and the consultation period commence immediately

following acceptance of this report and be linked to a planned commencement date for the new organisation of 1 July 2007.



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2.0 BACKGROUND AND OBJECTIVES

2.1 BACKGROUND

The name of Mount Isa is synonymous with mining on a large scale. ‘The Isa’ exists because of its mine and mining continues to influence almost every aspect of the city’s development. Tourism in Mount Isa is highly seasonal with most visitors arriving between May and October each year. Most are escaping the colder weather in southern Australia to take advantage of the moderate, fine and sunny weather that prevails at this time of the year and to experience the unique outback areas of Queensland and the Northern Territory. Covering an area of 43,420 square kilometers, Mount Isa is strategically located in relation to the major highways linking Queensland and the Northern Territory. It is situated on the Overlander’s Way, the main east-west highway linking the Queensland north coast from Townsville through to Tennant Creek. The Matilda Highway, which links southern Queensland with the Gulf of Carpentaria, also runs through the city. The Savannah Way which runs all the way from Cairns in tropical north Queensland through to Broome in Western Australia passes close to the north. The city is isolated and remote from mainstream Australia with extreme environmental conditions. The east coast of Queensland is 900 kilometers to the east and Brisbane is 1900 kilometers away, to the south east. As noted above, Mount Isa has been, and is, predominately a mining town. With the current mining boom in Australia, the focus on tourism is not as high with many local businesses as it is for many other Outback towns. The size of the tourism industry is small and there are few resources to undertake tourism promotion and development initiatives that are needed to realise the tourism potential of the area. The Mount Isa City Council (MICC) has filled the leadership and resources gap by becoming the main coordinator of tourism activities in recent years. The private sector tourism body; the Mount Isa Tourism Association (MITA), is limited in its operations with no staff and a small funding base. A working group consisting of MICC and MITA representatives contracted Sustainable Tourism Services (STS) in July 2006 to undertake a review of possible options for a new tourism structure for Mount Isa and to prepare a tourism strategy identifying priority action areas in consultation with key industry groups. The aim of the project was to:

• Examine the effectiveness of the current management model for tourism in Mount Isa • Consult with key industry stakeholders to identify issues and future options • Review best practice models in other areas which might be applicable to Mount Isa, and • Recommend how Mount Isa could best manage tourism over the next ten years.

2.2 OBJECTIVES

A number of project outcomes were identified at the outset of the project. These include: • Assess the current situation and its effectiveness • Identify what stakeholders believe to be the best options for tourism in Mount Isa • Gauge an understanding of realistic expectations for future tourism growth in Mount

Isa • Examine and report on alternative structures/models and how they might be suitable

to Mount Isa, including how stakeholders can contribute to support the local tourism organisation



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• Analyse existing marketing and consumer perceptions and provide recommendations for strategies to achieve improved outcomes

• Prepare an action plan including priority action areas and new or potential future projects for implementation

• Recommend how improved stakeholder relationships could be established for Mount Isa

MAP OF WESTERN QUEENSLAND - SHOWING LOCATION OF MOUNT ISA

Source: http://www.mbb.com.au/Maps/outbackqldmap.htm



MAP OF AUSTRALIA SHOWING POSITION OF MOUNT ISA IN RELATION TO MAJOR DRIVE TOURISM ROUTES



3.0 PLANNING PROCESS

Outlined below is an overview of the key planning steps taken: Steps Status of

Work Completed

3.1 Mobilisation

Conference call with steering group

Phone interviews with key external stakeholders

Initial analysis of available reports, plans, research etc

Develop list of key stakeholders for project

Develop questionnaires for meetings in Mount Isa

3.2 Context Analysis

Prepare context analysis based on review of all reports

Prepare interview template for one-on-one and phone interviews

Meetings in Mount Isa with key stakeholders – 15 to 17 August 2006

Develop organisational options for consideration by steering committee

Prepare workshop presentation

Workshops in Mount Isa with industry and Council

Documentation of workshop findings and preparation of report

3.3 Prepare draft recommendations and draft report

Meetings and discussions with key stakeholders

Meetings with Mayor and Chamber of Commerce

3.4 Meeting in Mount Isa and Presentation of Draft Report

Meetings and presentation to key stakeholders - 25 to 27 October 2006

3.5 Preparation of Final Report

Delivery of final report



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4.0 CONTEXT ANALYSIS

4.1 LITERATURE SEARCH

A comprehensive range of available material on tourism relating to Mount Isa was analysed as part of this review. Documents examined included: Mount Isa

• Mount Isa Tourism Masterplan – Mount Isa City Council (MICC)/ATS - 2000 • Mount Isa Heritage Centre Report (Mount Isa Outback Centre) – Convergence Design

2001 • Mount Isa City Council 2003 - 2004 Annual Report • Mount Isa City Council Operational Plan 2005 - 2006 • Mount Isa City Council Corporate Plan 2005 – 2010 • Mount Isa Tourism Association’s Constitution - 2004

North-West Queensland

• Research Among Visitors to Sites, Attractions and Exhibits in North West Queensland – Tourism Queensland (TQ) – 1999

• North West Queensland Regional Tourism Action Plan – MICC/NCSTT – 2003 Outback Queensland

• Outback Queensland Regional Tourism Strategy 1996 – Outback Queensland Tourism Authority

• Outback Queensland Regional Tourism Strategy 2000 – Outback Queensland Tourism Authority

• Outback Domestic Leisure Marketing Strategy 2001–2004 – Tourism Queensland • Outback Marketing Report – MCR/Tourism Queensland – 2002 • The Outback Regional Summary – Tourism Queensland - 2002 • Pathway 2010 - A Marketing Plan – Outback Queensland Tourism Association/Best –

2004 • Pathway 2010 - A Business Plan – Outback Queensland Tourism Association/Best

Management Group/Executive Resource Group • Outback Destination Management Plan – Tourism Queensland – 2004 • Queensland Outback Demand Audit – Tourism Queensland – 2005 • Our Outback: Partnerships and Pathways to Success in Tourism – Desert Knowledge

Australia/Sustainable Tourism Services – 2005 • Outback Regional Update – Tourism Queensland - 2005

Queensland

• Queensland Heritage Trails Network Marketing Audit – Tourism Queensland/Economic and Market Development Advisors – 2001

• Overlander’s Way Marketing Plan – 2006-2007 Regional Tourism

• Funding Options for Regional Tourism Organisations – Sustainable Tourism Services 2004 (prepared for Tourism Queensland)

4.2 INDUSTRY MEETINGS

An extensive program of meetings was conducted to secure feedback and comment on the current situation and options for the future. A survey of all key stakeholders was also completed. Key interviews were undertaken with the following:

• The Mayor, Mount Isa City Council • Mount Isa City Council Councillors and Executives (presentation) • Chairman and committee members of Mount Isa Tourism Association (MITA)



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• Chief Operating Officer of Xstrata Copper • President of the Chamber of Commerce • Several Queensland Government Department regional offices (in Mount

Isa/Brisbane) • Numerous tourism operators • Representatives of Brisbane based transport companies servicing Mount Isa • CEO of the Outback Queensland Tourism Association • Tourism Queensland/Tourism Australia • Mount Isa Airport • National Parks and Wildlife Service

(Feedback from these meetings is included as Appendix C.) A survey approved by the Steering Committee was also sent out to all key stakeholders. A workshop which was open to public attendance was conducted to obtain feedback and comment on the main issues facing tourism in Mount Isa. Best practice tourism models, structures and relationships were examined for their relevance to Mount Isa tourism. An overview of typical models is included in Chapter 8.



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5.0 TOURISM OVERVIEW

5.1 VISITOR MARKETS

Given the size of the city (population 23,000) and its role as a transport and service hub, Mount Isa has an opportunity to service a wider range of visitor markets than other smaller towns in the North West/Outback Queensland. Existing core visitor markets include:

• Long haul drive market traveling through to Northern Territory, Great Barrier Reef and Gulf Country (Big Tour/Grand Tour)

• Visiting friends and relatives market. • Special interest markets (fossils, mining, nature, etc) • Backpackers en route (Northern Territory) • Special event visitors (Mount Isa Rodeo) • 4WD Markets

5.1.1 Target Markets

The following segments have been identified by Tourism Queensland as being the most desirable domestic target markets for the Outback region, based on consideration of market attractiveness and competitive capabilities. Key Market Holiday Type Source Markets Lifecycle Stages Transport Type Big Tour Intrastate Mid-life households

Older households Drive Rail Fly/Drive

Secondary Markets Holiday Type Source Markets Lifecycle Stages Transport Type Grand Tour Interstate Mid-life households

Older households Drive Rail Fly/Drive

Big Tour Interstate Mid-life households Older households

Drive Rail Fly/Drive

Big Tour Intrastate Young parents Mid-life families

Drive Rail Fly/Drive

Emerging and Special Interest Markets In addition to the current visitor markets identified above, in view of market trends and emerging interests, research also indicates that the following experiences, with further product development may appeal to both special interest and general touring markets in time:

• Paleo-tourism • Astronomy • Bird watching • Education/school groups excursions • Special events • Fossicking • Eco-tourism



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International Umbrella Markets Market Types Visitor Characteristics Active Adventures Mid-life and older couples on a self-drive

touring holiday from UK, Europe, NZ and North America

Backpacker/Experienced Youthful Traveller Young independent travellers on an Australian working holiday experience from UK, Europe, US and NZ.

Niche Markets Included paleo-tourism, astronomy, agribusiness, education, not for profit travel and gap year. Primarily singles, couples and friends travelling together on packaged tours from UK, Europe, US, Asia, Japan and NZ.

Source: Outback Destination Management Plan 2004 (Tourism Queensland)

5.1.2 Visitor Characteristics (what do we know about these visitors?)

Core Appeals The Outback provides a personally enriching experience, getting in touch with the real Australia, and is often the fulfillment of a long held dream. Core Segments This is predominantly a domestic market, dominated by people age 50+, mainly in the lower income segments. Over 90% are independent travellers, where doing it yourself and finding things out along the way are all part of the appeal. Information (how do they find out about Mount Isa?) Respondents most commonly mention using the following information sources when undertaking a drive holiday:

• RACQ maps (of both states and localities) • Road map books (eg BP Road Atlas, Reader’s Digest road maps, UBD, Gregory’s) • Local area maps (provided by local tourist information centres) • RACQ Accommodation Guides • The travel section of the Courier Mail (used primarily for inspiration) • Destination brochures

Mount Isa has an accredited Visitor Information Centre. This centre currently works with other VIC’s in the Outback Region to promote the services and attractions available in the city. The Overlander’s Way and Matilda Highway marketing plans provide an opportunity for each town in the region to up-sell and cross-sell the experiences available. Satisfaction is very important There is a high level of repeat business. (Economic and Market Development Advisors 2001) This is a significant issue for Mount Isa given that a large number of travellers will have visited the destination before. This issue is further discussed under product development.

5.1.3 Overall Motivations (why do they visit Mount Isa and the North West?)

• To mark a change in life – freedom, risk taking, challenge • Because it’s there – Cape York, Matilda Highway, Overlander’s Way



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• To complete their knowledge of Australia • To revisit old haunts (Darwin, Mount Isa, Defence Force bases) • Enjoyment of heritage/history and ‘traditional Australian values’ (friendliness,

resourcefulness, enterprise, hospitality, company) • Peace and quiet, space

Specific interests: • Fossils, minerals, flora and fauna • The holiday in the Outback is perceived in terms of a total visitation experience.

Visits through individual towns or attractions build towards an overall and continuous experience. (Parfitt 1998, Economic and Market Development Advisors 2001, STS 2005).

5.1.4 The Journey (where do they come from and where do they go to?)

• There are three key end points – Darwin, Cairns/Cape York, Karumba • There are three key road corridors or entry points – the Overlander’s Way (East to

West), the Matilda Highway (North to South) and the Savannah Way (East to West – refer map in section 2.2)

• Rarely will the same route be used going and coming back • Most travellers have end and/or mid dates – eg bookings at Karumba, camel races at

Charleville, arranged meetings points with other travellers • Travelling is usually flexible, allowing for long stays in places of interest and/or

positive welcome. Extended stays in a particular location are usually compensated by shorter stays in less interesting or friendly places.

• Most travellers have a fairly precise idea of the overall time they will spend away from home and this is based on considerations of budget, climate and tolerance of living and traveling conditions.

Mount Isa needs to position itself as both a key service centre and as an activity focal point for all travel to north-western Australia. Feedback from operators indicates that at the moment the city is not keeping leisure visitors beyond 1-2 days stopover. It is perceived as a transit area, on the way to an end point, not a destination in itself.

5.2 VISITOR EXPENDITURE

Total visitor expenditure in Queensland for the 2005 year was $9.508 million from domestic visitors and $2.781 million from international visitors, making a total of $12.285 million. For the Outback Region, domestic visitors spent $207 million and international visitors $14 million, making a total of $221 million, for the 2005 year. These figures represent the actual expenditure by visitors. They do not fully reflect the effects on the State and Regional economies as this expenditure flows through the community.

5.3 DOMESTIC VISITORS TO THE OUTBACK REGION AND MOUNT ISA

Tourism Queensland, in their Outback Regional Update for 2005, provides details of visitors to the Outback Region. (This document is the source for all information in Section 5.3) In the 2005 year, 503,000 domestic visitors travelled to the region. They included 167,000 holiday visitors (33%), 149,000 Visiting Friends and Relatives (VFR) (30%), and 134,000 business visitors (27%).



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Source Of All Domestic Visitors – Outback Region – 2 Years to December 2005

In the last year (prior to 2005), total domestic visitation to the Outback Region grew by 12.5% - driven by holiday and VFR visitors. 2,128,000 domestic visitor nights were spent in the region with 659,000 (31%) being for holiday purposes; 599,000 (28%) for VFR; and 396,000 (19%) for business. In the last year, total visitor nights declined slightly (0.03%) mostly from the holiday segment.

Place of residence

Visitor numbers

(‘000)

Visitor nights (‘000)

% of Total Domestic Visitors to region

% of Total Domestic Visitor Nights in region

Queensland (excl. Brisbane)

424 1,502 45% 35%

Brisbane 244 1,153 26% 27%

New South Wales

136 660 14% 16%

Victoria 74 439 8% 10%

Other Australia

72 496 8% 12%

Total 950 4,251 - -

Over three quarters of all visitors to the Outback region come from Queensland. From the figures in the table above, visitors from other states stay longer in the region.

Source of Domestic Holiday Visitors – 2 Years to December 2005

Place of Residence Holiday Visitors (‘000) Holiday Visitor Nights (‘000)

Queensland 198 (61%) 893 (59%)

Other Australia 126 (39%) 626 (41%)

Total 324 1,520

The table above indicates that the 324,000 holiday visitors comprised just over a third of all visitors to the Outback Region.



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Type of accommodation used for Domestic Visitor Nights – 2 Years ended December 2005

34%

15%20%

30%

0%

10%

20%

30%

40%

Hote

l/re

sort

/m

ote

l/m

oto

rIn

n

Frie

nds/

re

lative

spro

per

ty

Car

avan

par

k/co

mm

erci

alca

mpin

ggro

und

Oth

er

5.3.1 Age of Domestic Visitors

The majority of domestic visitors to the Outback in the two years ended December 2005 were aged between 25 and 44 years – 40% aged 45-64 years and 35% aged 45-64 years. Interstate visitors to the region were older (45% aged 45-64 years and 21% aged 65 years or over).

5.3.2 Seasonality of Domestic Visitors

Domestic visitation to the Outback Region is highly seasonal. 39% of all visitors travelled in the September quarter, while visitation was lowest in the March quarter. 70% of intrastate visitors travelled to the region between April and September 2005 (two years ended), whereas 67% all interstate visitors travelled between July and December 2005 (two years ended).



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Domestic Visitor Seasonality – 2 Years ended December 2005

14%

26%

39%

21%

0%

10%

20%

30%

40%

50%

Jan-Mar Apr-Jun Jul-Sep Oct-Dec

5.3.3 Mount Isa Domestic Visitation

National data for domestic visitor numbers and visitor nights to Mount Isa are provided below. Generally visitor estimates for individual Statistical Local Areas such as Mount Isa are not provided due to the relatively small sample size, so the charts below should be regarded as a guideline only.

Mount Isa Domestic Visitation

0200,000400,000600,000800,000

1,000,0001,200,000

Low

estim

ate

Aver

age

Hig

hes

timat

eLo

wes

timat

e

Aver

age

Hig

hes

timat

eLo

wes

timat

e

Aver

age

Hig

hes

timat

e

2 yrs endedMarch 2002



VisitorsNightsSample

Source: National Visitor Survey 2006 (Tourism Australia)



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Mount Isa Domestic Visitation

0200,000400,000600,000800,000

1,000,0001,200,000

Low

estim

ate

Aver

age

Hig

hes

timat

eLo

wes

timat

e

Aver

age

Hig

hes

timat

eLo

wes

timat

e

Aver

age

Hig

hes

timat

e




VisitorsNightsSample

Source: National Visitor Survey 2006 (Tourism Australia)

Commentary The above figures illustrate the soft domestic market which has prevailed in Mount Isa throughout 2003/4. This flat performance was experienced right throughout Outback Australia. Please refer to figure below.

Domestic Visitor Nights to Outback vs. Australia

Domestic Nights

15,000

17,500

20,000

22,500

25,000

2000 2001 2002 2003 2004

Year

Nig

hts

- Out

back

250,000

260,000

270,000

280,000

290,000

300,000

Nig

hts

- Aus

tral

ia

Source: National Visitor Survey 1998-2005

The Mount Isa data indicates a more positive domestic performance in 2005/2006. This is consistent with the overall domestic growth achieved across Outback Queensland. It is interesting to note that despite the growth achieved, both visitor nights and visitor numbers have still not reached the levels achieved in 2002.



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5.4 INTERNATIONAL VISITORS TO THE OUTBACK REGION & MOUNT ISA

In 2005, the Outback region hosted 33,941 international visitors. 25,633 (75%) were for holiday purposes. Over a quarter of all international visitors classed themselves as “backpackers”. International visitors spent 219,093 nights in this region in 2005 with 45% of them on holidays. International visitors stayed in the region (on average) 6.5 nights. Top 3 Source Markets – International Visitors - 2 Years to December 2005

Country of residence

Visitor numbers

Visitor nights

% of Total International

Visitors to Region

% of Total International Visitor

Nights to Region Europe (excl. UK and Germany)

16,871 61,395 24% 15%

United Kingdom 12,872 89,540 19% 22% Germany 12,532 36,475 18% 9% Total International 69,545 416,381 - -

Type of Accommodation Used for International Visitor Nights 2 Years Ended December 2005

38%

10%14%

17%21%

0%

10%

20%

30%

40%

50%

Frie

nd o

rre

lative

spro

per

ty

Bac

kpac

ker

/ host

el

Car

avan

Hote

l/M

ote

l/Res

ort

Oth

er

International visitors spent 21% of their nights in the Outback region in the two years ended December 2005 at a friends or relatives home. 17% of international visitor nights were spent in a backpacker or hostel accommodation. A significant number of nights were also spent in commercial caravan parks.

5.4.1 Age of International Visitors

Almost two thirds of international visitors to the Outback during the two years to December 2005 were younger than middle age – 35% were aged 25-44 years and 28% were aged 15-24 years.



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Just over a quarter were aged 45-64 years.

5.4.2 Seasonality of International Visitors

During the two years ended December 2005, international visitation was relatively evenly spread across the March, September and October quarters, while the low season occurred in the June quarter.

International Visitor Seasonality – 2 Years Ended December 2005

28% 27%29%

17%

28%30%

28%

14%

0%

10%

20%

30%

40%

Jan-Mar Apr-Jun Jul-Sep Oct-Dec

All international visitorsHoliday international visitors

5.4.3 Mount Isa International Visitation

Once again national data collection for the international market is outlined below. As with the figures for domestic visitation, these results are to be interpreted with some caution due to the small sample sizes available for the Mount Isa region.

Mount Isa International Visitation

020406080

100120140160180

Low

estim

ate

Ave

rage

Hig

hes

timat

eLo

wes

timat

e

Ave

rage

Hig

hes

timat

eLo

wes

timat

e

Ave

rage

Hig

hes

timat

e




Thou

sand

s

Visitors Nights Sample

Source: International Visitor Survey 2006 (Tourism Australia)



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Mount Isa International Visitation

020406080

100120140160180

Low

estim

ate

Aver

age

Hig

hes

timat

eLo

wes

timat

e

Aver

age

Hig

hes

timat

eLo

wes

timat

e

Aver

age

Hig

hes

timat

e




Thou

sand

sVisitors Nights Sample


The Mount Isa data indicates that the number of international visitors dropped after March 2002 and flattened between 2004 and 2006. There was a substantial decline in visitor nights between March 2002 and March 2004. Although some growth in visitor nights was achieved by March 2006, this is still far below the levels achieved in March 2002. This poor performance is consistent with the soft conditions experienced right across Outback Australia. Please refer to figure below.

International Visitor Nights to Outback Australia vs. Australia

International Nights (000)

2,500

3,000

3,500

4,000

4,500

5,000

2000 2001 2002 2003 2004

Year

Nig

hts

- Out

back

25,000

50,000

75,000

100,000

125,000

150,000

Nig

hts

- Aus

tralia




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5.5 SEASONALITY

• Seasonality is quite dramatic in the Outback, with room occupancy fluctuating from approximately 30% in the low season to approximately 70% in peak season.

• Monthly occupancy levels for commercial accommodation in the Outback region are consistently highest between July and September and lowest between December and January.

• Over the two years ended December 2003, the peak season for all domestic visitors and holiday/leisure domestic visitors occurred from July to September (38% and 48% respectively). Domestic visitation was lowest between January and March (10% and 4% of the total domestic and holiday/leisure visitors to the region, respectively).

• Over the two years ending December 2003, international visitation to the Outback was lowest between January and June. International visitation was highest between July and September (31% and 33% of the total international and holiday/leisure international visitors respectively).

5.6 CURRENT MARKET/EMERGING OPPORTUNITIES

Tourism Queensland has identified the following market segments with varying growth and yield potentials: Domestic Markets Holiday Type

Geographic Source

Demographic Characteristics

Length of Stay

Travel Party

Type of Transport

Special Interest

Grand Tour

Interstate Intrastate

Mid-life households, Older households

15+ nights

Couple, Couples travelling together

Self-drive Culture/ heritage Nature Adventure Social Authentic experience

Big Tour – Couples Self-drive

Interstate Intrastate

Mid-life households, Older households

8-14 nights


Self-drive Culture/ heritage Nature Adventure Social Authentic experience

Big Tour – Couples Rail

Intrastate Mid-life households, Older households

5-10 nights


Rail Culture/ heritage Nature Adventure Social Authentic experience

Big Tour – Families Self-drive

Intrastate Young parents, Mid-life families

5-10 nights

Family and friends with children

Self-drive Education Culture/ heritage Nature Adventure Family Experience real Aust.



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Queensland’s Outback attracts mid-life and older couples from both intrastate and interstate on the self-drive Grand Tour/Big Tour holiday. This market represents a variable level of growth and yield potential for this destination. Anecdotal evidence suggests the latter two groups in the above mentioned table represent a comparatively small market with limited potential. It would appear that there are three segments with significantly greater potential for growth, including short-stay markets, backpackers and international/campervan segments. The “grey nomads” represent an ongoing source of visitation for Outback Queensland – the challenge is to attract new segments. Potential Domestic Visitor Markets In addition to the current visitor markets, the following experiences, with further product development, may appeal to special interest, short stay, backpacking, international/campervan and general touring markets in time:

• Paleo-tourism • Astronomy • Birdwatching • Education/school group excursions • Special events • Fossicking • Eco-tourism • Hunting/fishing • Bush walking

International While international markets do not currently constitute a significant component of visitation to the Queensland Outback, there is opportunity for international market growth from the self-drive segment and the special interest niche segments from the long-haul source markets. New Zealand also presents a good opportunity for growth. Queensland Outback is also showing embryonic appeal to the international education markets. OQTA is committed to:

• Maximising growth opportunities for the Big Tour and Grand Tour markets as its ‘core’/grey nomad market.

• ‘Corridor Coastal’ marketing to attract short stay/family markets • Initiatives to tap the backpacker market through employment arrangers, TNT

Magazine with emphasis in Cairns and Brisbane. • Cooperative activities with campervan operators, such as Britz. • Targeted initiatives to attract the special interest segments detailed above.

5.7 VISITOR SATISFACTION

Tourism Queensland has conducted the Standard Visitor Survey (SVS) in a range of areas throughout Queensland. The survey collects demographic data and information about the trip to/in the area. During the month of August 2002, a visitor survey was conducted in the three sub-regions of Queensland’s Outback (i.e. North West, Central West and South West). The data was collected by means of a self-completion questionnaire distributed to visitors at attractions and Visitor Information Centres throughout the regions. In total, 333 questionnaires were completed for the North West, 407 questionnaires for the Central West and 318 questionnaires for the South West.



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Respondent satisfaction with a number of aspects of the Outback sub-regions was measured on a five-point scale where one equals very dissatisfied and five equals very satisfied. Respondents were also asked about what aspects of the sub-regions they found most appealing and about possible improvements that could be made to each area (both unprompted questions). The results for the North West sub-region (including Mount Isa) were: Satisfaction Levels – North West

Most Appealing Aspects % Suggested Improvements %

Friendliness of locals 4.39 Variety of shops 3.60

Personal safety and security 4.23 Bushwalking tracks 3.54

Availability of information 4.13 Quality of roads within area 3.54

Cleanliness 4.07 Picnic/BBQ facilities 3.51

Lots to see and do 4.01 Quality of roads into 3.27

Appeals and Improvements – North West

Most Appealing Aspects % Suggested Improvements %

Beauty of the outback 31 Improved roads 23

History/heritage 15 More/improved rest areas 8

Friendliness/hospitality 11 More/accurate information 4

Remoteness/isolation 7 Caravan parks 4

Mining/mines 8 Signage 4

(Base: All respondents, n = 333) Commentary Satisfaction is difficult to gauge without a dedicated customer service survey which is monitored at regular intervals. Most suggested improvements relate to hard/soft infrastructure in the region such as road upgrades, improved visitor signage and improved rest areas.



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6.0 IMPORTANCE OF TOURISM TO MOUNT ISA

The MICC acknowledges that the local economy is underpinned by local and international major resource companies, with the pastoral industry and tourism being contributors. Whilst tourism is important to Mount Isa, there is no available data to measure exactly how important. One of the key issues identified in the Queensland Tourism Strategy and in local interviews was a general lack of understanding of the economic significance of the tourism industry and its relationship to other industry sectors and community development in general. The role of this section is to establish some context for the size of tourism in Outback Queensland in general, and Mount Isa in particular. This information is critical if tourism is to be taken seriously by other sections of the economy and to attract support from both big business and the community in the region and the City.

6.1 ESTIMATING TOURISM’S CONTRIBUTION TO AN ECONOMY

The Australian Bureau of Statistics (ABS) estimates the direct contribution of tourism to the national economy and employment in the Tourism Satellite Account (TSA). In 2002 the Bureau of Tourism Research (now Tourism Research Australia) stated that tourism’s total worth is greater than the direct contribution estimated by the TSA and they undertook further economic modeling to estimate the indirect effects as well. Their report indicated that for 2000/1 tourism directly contributed 4.7% GDP and indirectly contributed an additional 4.1%: estimating tourism’s total contribution to national GDP at 8.8%. It was also estimated that tourism’s direct contribution to national employment was 6% of total jobs and the indirect contribution added an additional 4.3% of all jobs, making a total of 10.4% of all jobs in Australia generated by visitors’ expenditure. These figures indicate that the direct economic contribution of tourism is only 50% of the total contribution; and for employment the direct contribution is only 60% of the total contribution (for Australia). In the tables below, the total effects (direct and indirect) are shown for Australia. Queensland Treasury’s Office of Economic and Statistical Research (OESR) also has an economic model which estimates the direct effects of tourism on the Queensland economy and employment. However there have been no studies undertaken to estimate tourism’s indirect effects in Queensland. In 2002, OESR estimated tourism’s contribution to each of the Regions in Queensland – again only for the direct contribution. Access Economics Pty Ltd in a 2002 report explained: “Tourism is not a conventional industry. Measuring its economic contribution properly and comprehensively requires a different approach. Conventional industries are defined, and their performance assessed, from a supply-side perspective. That is, the industry is classified by the goods and services it produces (such as meat, wool, coal, transport or health services), covering industry output, value-added, employment and the like. But tourism is a demand-side concept. The starting point is not



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what is produced, but who buys it. Anything purchased, either directly or indirectly, by a traveller can be said to be part of the business of tourism. In Australia, a traveller is defined in official statistics as any person travelling more than 25km each way for a day trip, or more than 40km each way for an overnight trip, from their normal place or residence or business, excluding regular commuting and permanent migration. Tourism covers both leisure and business travel.”

Source – STS

6.2 TOURISM’S ECONOMIC CONTRIBUTION TO OUTBACK REGION & MOUNT ISA

Using the available information, it is possible to compare tourism at the national level, the state level and the regional level. It is then possible to make assumptions to estimate tourism’s contribution to Mount Isa, although the accuracy of the assumptions and the results for Mount Isa shown in this report are untested. As indicated above, the economic modeling for Queensland and the Outback Region (and the assumptions for Mount Isa) only show the direct impact of visitor expenditure on the economy; i.e. the visitors’ expenditure directly to hotels, shops, restaurants, etc. The indirect impact of these tourism businesses purchasing goods and services from other businesses to enable them to operate, are not measured in Queensland.

Region Contribution to GNP/GSP/GRP

Tourism Employment

Australia $59.1 billion 8.8% of total

(direct and indirect)

948,000 jobs 10.4% of total

(direct and indirect) Queensland $6.3 billion

6.4% of total (direct only)

180,000 jobs 9% of total (direct only)

Outback Region $164 million 5.1% of total (direct only)

3,100 jobs 9.2% of total (direct only)

Mount Isa* $54 million 33% of total

(estimate - direct only)

1,023 jobs 33% of total

(estimate - direct only)

Notes:

1. Sources: Bureau of Tourism Research (now Tourism Research Australia); Office of Economic and Statistical Research (Queensland Treasury)

2. *Data is unavailable for Mount Isa. Assumptions have been made based on population ratios.



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Tourism in the Outback Region contributes $164 million to GRP, representing 5% of the Queensland total; and 3,100 jobs to total regional employment representing 9% of the State’s total. The assumed figures for Mount Isa of $54 million and 1,023 jobs are simply based on Mount Isa’s share of the Region’s population and do not reflect other local conditions. It was not possible within the scope of this study to undertake a more robust analysis of tourism estimates for Mount Isa. If the ratios of indirect contributions to direct contributions for Australia are the same for Queensland, then tourism’s total contributions (direct and indirect) would be: Queensland - $12 billion of GSP (12% of total) and 15% of all jobs Outback Region - $325 million of GRP (10% of total) and 15% of all jobs The OESR also provided a breakdown of the contribution of visitor expenditure on traditional industries for each Region. This information is provided in the following table for the Outback Region and indicates tourism’s direct effects on each industry’s contribution to GRP and employment. Industry Tourism

GRP $M %

of Total Tourism

Jobs (FTE) %

of Total Agriculture, forestry and fishing 2 1.3 22 0.7 Mining 1 0.7 9 0.3 Manufacturing 2 1.0 31 1.0 Electricity, gas and water 0 0 0 0 Construction 0 0 0 0 Retail and wholesale trade 39 23.8 1,424 45.4 Accommodation, cafes and restaurants

36 22.0 956 30.5

Transport, storage and communication services

18 10.8 179 5.7

Finance, insurance, property and business services

3 1.7 34 1.1

Government, administration, defence, education, health and community services

7 4.3 134 4.3

Cultural, recreational, personal and other services

12 7.2 344 11.0

Ownership of dwellings 7 4.5 Net taxes 37 22.6 TOTAL 164 100.0 3,133 100 Source: Office of Economic and Statistical Research, Queensland Treasury Note 1. The 0% contribution of tourism to the construction GRP is explained in this response from OESR; “Gross fixed capital formation on tourism infrastructure, such as accommodation, transport equipment and facilities is clearly of major interest, as is the capital stock of these tourism related assets. Investment in infrastructure is a major determinant of the level of present and future tourism activity. Also, investment in much of this infrastructure would not exist or would be significantly less without tourism. While recognising that gross fixed capital formation in tourism infrastructure is of significant analytical interest, the international standards exclude purchases of capital assets from tourism demand for the purposes of calculating tourism gross value added.” This table shows the diversity of the impacts of visitors’ expenditure on a regional economy. For example; 24% of the contribution of retail and wholesale trade to the Outback economy is generated by tourism, as is 11% of the contribution of transport, storage and communication services. Almost half of the jobs in the retail and wholesale trade are tourism generated, as are 30% of all jobs in accommodation, cafes and restaurants, and 6% of all jobs in the transport, storage and communications sectors.



26

Information is not available for Mount Isa specifically. However, the regional information will have some relevance to the local Mount Isa situation.

6.3 ENVIRONMENTAL REVIEW

The review below identifies the key strengths and weaknesses, opportunities and threats (SWOT) to further developing tourism in Mount Isa. The SWOT builds on reviews previously undertaken by STS in 2003 (North West Tourism Action Plan). Internal Environment Strengths Weaknesses • Outback@Isa Explorers Park • Range of natural attractions: national

parks, unique flora and fauna and nature-based activities (Lawn Hill, Riversleigh, etc)

• Established festivals and events including Mount Isa Rodeo

• Themed highways and byways – Overlander’s Way, Matilda Highway

• Mining/fossil and pastoral themes • Rail/coach/airline schedules • Mount Isa Mine is an icon (Role of Xstrata) • Indigenous tourism • Lakes (Lake Julius, Moondarra Lake) • District sites (Camooweal, Gregory River

etc) • Size and quality of community service

infrastructure • Experienced tour operators • Sporting champions • Support for tourism shown by Mount Isa

City Council • Strong mining economy • Leadership and support shown by Xstrata

Copper • Well positioned for drive tourism • Strong links with Northern Territory • Good directional signage • Role played by OQTA • Mount Isa Airport (new owner)

• High seasonality of visitation • Weak destination image compared to other

Australian “Outback Regions” (eg NT) • Variable product quality and service • Lack of reliable and consistent tourism

research • Limited marketing resources • High travel costs (to and within the region)

– eg rising fuel costs • Insufficient direction/interpretative signage • Access to nature and remote areas (roads,

amenities, permits) • Variable level of industry business skills

and expertise • Current visitor markets have tight budgets

and a high level of repeat visitation • Tourism industry fragmented • Access and visitor infrastructure in national

parks • Limited awareness of destination • Limited industry involvement in co-

operative marketing activities • Small number of tourism operators (limited

time and resources) • Limited industry involvement in the

commercial distribution system • Lack of industry participation in

international and domestic marketing initiatives and trade activities

• Shortage of accommodation in Mount Isa Commentary Strengths tend to focus on the size of Mount Isa as a major outback service centre, its icon status in Outback Australia and its location to key national drive corridors. Key strengths include Mount Isa’s strategic location with respect to travel flows to north Western Australia, its ease of access to a broad variety of natural and cultural attractions and its contemporary mining history. Weaknesses highlight the small size of the tourism industry in Mount Isa (<30 operators), the lack of recognition against mining and the limited industry involvement in marketing and trade activities.



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Key weaknesses include the fragmented nature of the industry, the lack of quality soft infrastructure (eg hands-on visitor activities, self-drive options, quality of visitor information and the seasonal nature of the industry. External Environment Opportunities Threats • Self-guided and guided tours of the city • Enhanced range and quality of products

and services • Expansion of Savannah Guides network • Improved presentation/interpretation of

Outback product and themes • Increased interest in nature based and

adventure tourism • State/Federal Government funding

initiatives • Regional linkages and partnerships • Queensland drive market and road signage

initiatives • Special interest tourism, eg paleo-tourism,

mining • Indigenous tourism, mining, education • Arts and crafts/merchandise • Links to Savannah/Gulf Country • Links to Cloncurry (gems, minerals) • Links to Boulia (desert/channel country) • Links to Camooweal • Partnership opportunities with Chamber of

Commerce, XStrata and industry groups • Establishment of a new economic

development organisation in Mount Isa. • Redevelopment of airport • Buchanan Park Complex

• Intensive competition from other Outback regions

• Lack of industry coordination/cooperation • Variable economic conditions/interest

rates/fuel prices • Natural disasters: drought, flood, fire • Lack of Government (State, Federal, Local)

coordination and cooperation • Restrictive government regulatory

practices • Native Title • Public Liability Insurance • Lack of regional/local leadership • Lack of marketing funds • Access and visitor infrastructure in national

parks • High travel costs • Tendency to short break and overseas

trips for Australian domestic markets • Apathy and lack of leadership

Commentary Opportunities highlight the significant natural and cultural assets surrounding Mount Isa and the regional linkages and product opportunities which can be developed. Threats highlight the competition from other destinations, the lack of industry coordination and investment and the limited funds available for destination marketing and product development. Key issues: Mining, mineralogy, gems, fossicking and rock hounds are key activity themes. Additional visitor themes include eco- and nature-based tourism (Lawn Hill, Adels Grove, Lake Julius, Riversleigh etc), Indigenous tourism (Sunrock, Cascades, Kalkadoon Tribal Centre etc), outback lifestyle (School of the Air, Royal Flying Doctor Service, transport, cattle stations etc), outback events (Mount Isa Rodeo), paleontology (Riversleigh). Mount Isa is a natural gateway to the northwest and the Northern Territory. Mount Isa is unique in outback Australia as a large modern city in a harsh outback environment.



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7.0 COMMUNITY AND INDUSTRY FEEDBACK

7.1 STAKEHOLDER FEEDBACK AND COMMENT

In addition to the project objectives outlined in Section 2.2, a further range of issues and desired outcomes were identified in the various meetings and workshops. Outlined below is an executive overview of key feedback received from workshops and interviews. Where possible, comments have been grouped under themed headings. Coordination

• There is a general lack of coordination in tourism marketing and promotional activities in Mount Isa. The major concern was the lack of a dedicated resource (staff member) to take forward initiatives on behalf of local operators.

Additional concerns included:

• The important role played by Council in providing continued financial support for tourism marketing and product development.

• The need for a more strategic approach to how tourism is promoted across the region.

• The limited financial and human resources available to MITA. • Tourism in Mount Isa does not have a dedicated point of contact. • The need for new leadership from business operators in the city (more people

‘putting up their hands’). • The importance of having an organisation with the skills and services to address and

take forward economic development issues for Mount Isa. • The need for a full time tourism resource to action initiatives.

Awareness/Destination Marketing There is a need to address the following issues:

• There is no effective brand or consistent promotional message for Mount Isa tourism. • Tourism promotion and marketing needs more effective coordination.

Product Development

• More product development is needed to provide opportunities for things to do and see around the city. This includes day trips (half day and full day) to surrounding attractions.

• It was also recognised that both soft and hard visitor infrastructure was needed. This includes suitable accommodation, caravan parks, signage, brochures, maps and visitor collateral

• Mining and the history of mining should be the main theme for Mount Isa. Partnerships/Linkages

• The significance of Mount Isa as the ‘Capital of Outback Queensland’ was recognised. Links and partnerships need to be made with the Northern Territory, the Gulf Savannah, the North West and strategic marketing initiatives such as the Overlander’s Way and the Matilda Highway.

• Further industry funding contributions to tourism promotion and marketing was needed.

• There are no champions pushing tourism in the local community. • There is a need for Council, tourism industry and general business community to

work together. A model which only includes tourism operators will not work. • There is an opportunity to establish a strong sense of unity and cooperation with the

Chamber of Commerce. There are an insufficient number of businesses and services within the city to support different associations.



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• Mount Isa needs a well resourced and supported local business organisation with a strong relationship with OQTA and strong links with Tourism Queensland and Tourism Australia.

Building a Profitable and Sustainable Tourism Industry

• The need to develop viable and profitable local businesses was considered as part of this project. Stakeholders agreed that while it was important to grow visitor numbers it was just an important to improve yield and return from visitors

• The need to establish partnerships with stakeholders such as the Chamber of Commerce was noted. It was agreed that the natural synergy which existed between both organisations should be explored. It was also noted that some ongoing education on the role that tourism played in business development needed to be addressed

Market Segmentation

• It is acknowledged that different products and service infrastructure were needed to service the needs of the different visitor markets to Mount Isa.

Implementation

• It was recognised that any plan for Mount Isa needed an implementation schedule to guide actions over a five to ten year period

• There was a general view that improvements could and should be made to the existing tourism delivery model and that it would require fundamental change to take advantage of the opportunities available, rather than tinkering at the edges. The point was also made that any significant changes would need to be phased in to allow all stakeholders to adjust and adapt

• A more complete description of the feedback obtained from the various individual meetings with stakeholders, is included in Appendix C.

7.2 UNDERSTANDING OF TOURISM WITHIN MOUNT ISA

Whilst no studies on this matter were undertaken for this project, it was the opinion of all persons interviewed, that tourism is not well understood within the Isa – by the resident and business communities and by some Councillors and staff. This view was supported by the observations of the STS team working on the project. Part of the reason is that there is a paucity of information available. This situation is not unique to Mount Isa. There is very little good data available on the economic contribution of tourism to all local areas in Australia. It is very difficult for Councillors, Council staff and the community to understand and appreciate tourism’s real contribution without good economic data and effective communication.



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8.0 CURRENT DELIVERY MODEL FOR MOUNT ISA TOURISM

8.1 OVERVIEW

The tourism industry in The Isa is characterised by a small number of very small businesses. It is estimated that the number of tourism operators providing services directly to visitors is less than 30 in total. There are no large private sector companies directly involved in tourism, based in Mount Isa. Tourism is seasonal, with seventy percent (64%) of all visitors arriving and departing between the months of April and September – 65% of domestic visitors and 46% of international visitors. Prior to 1994, Mount Isa was a major component of the Inland Tourism Region, one of the official RTOs of Queensland. The Shires of Cloncurry, McKinlay, Richmond and Flinders were also part of the Inland Tourism Region. There was an Inland RTO office in the Isa with full time staff. In 1994, this region was amalgamated with the Outback Region, and initially a local office and staff remained in Mount Isa. However in 1999, this office was closed as part of a major restructuring of the Outback Region administration and all staff was moved into one new office in Brisbane. Since that time, there has been no dedicated tourism resources in Mount Isa and the local tourism industry have struggled to maintain effective, coordinated marketing activities for the Shire. MICC filled the gap to some extent by dedicating council staff to coordinate marketing activities for the Shire. In addition to this role, council staff also managed the Riversleigh Centre, a local tourism attraction owned by Council. In 2003, with the impending opening of the new Council owned Outback at Isa tourism development, which included the Riversleigh Centre, Council took the decision to disband its own tourism unit and hand the role of marketing and promotion of Mount Isa to the new Board of Outback at Isa. This created a conflict for the Outback at Isa Board who were unwilling to assume the responsibility for overall promotion of Mount Isa in addition to their specific responsibilities for the Outback at Isa Centre. The local Mount Isa Tourism Association (MITA) has an active committee, but no staff. It has approximately 50 members who pay an annual membership fee. Total membership is approximately $7,000 per annum. It is now the principal body for promotion of Mount Isa, albeit with very limited resources. Mount Isa is part of the Outback Queensland Tourism Authority, the official Regional Tourism Organisation for the majority of Western Queensland. MICC pays a significant annual membership fee each year which is based on a population formula for each of the shires in the Outback Region. OQTA is supported by Tourism Queensland and is the main conduit for Outback Tourism Region members to participate in cooperative marketing activities with TQ. Currently, when there is a cooperative opportunity for the State’s tourism regions, TQ contacts OQTA who in turn contact each of their Shire members. In the case of Mount Isa, the contact is MITA. MITA then contact MICC to seek their support for matching funding to participate in each activity. Such activities include advertising, trade and consumer shows and brochures and collateral. As the funding from MITA and its members is minimal, many promotional opportunities are not taken up.



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8.2 THE ROLE OF MOUNT ISA CITY COUNCIL

The position adopted by MICC in 2003 is that the organisation of tourism activities, including marketing and product development, is principally the role of the local industry. It supports the local industry with promotional activities as indicated above, and facilitates the publication of a local visitors’ guide; which is produced by a commercial company at little or no cost to Council. Council funds some of the distribution costs for the guide. Council also contributes to promotional activities for the Overlander’s Way with the other Shires in the North West sub-region. In recent years, MICC has taken an active role in the development of infrastructure and facilities which increase Mount Isa’s tourism appeal. Besides the Outback at Isa Centre, a new $16 million Rodeo Centre and associated facilities is under construction at Buchanan Park, adjacent to the city area. When completed, this will be a very significant addition to tourism infrastructure at Mount Isa.

8.3 THE STRUCTURE OF THE TOURISM INDUSTRY IN AUSTRALIA

The tourism industry is characterised by a series of relationships between various organisations at Local, Regional, State and National levels, with specific roles and responsibilities. Typically, the structure of the industry is:



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8.4 THE CURRENT STRUCTURE OF TOURISM IN MOUNT ISA

One of the links missing for Mount Isa is that MITA is not a member of the Queensland Tourism Industry Council (QTIC) which represents the interests of private sector tourism operators and organisations in the State. There is only one Mount Isa tourism operator that is a member of QTIC.



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8.5 TYPICAL ROLES AND RELATIONSHIPS OF A LOCAL TOURISM ORGANISATION

LTOs come in a variety of shapes and sizes, however the typical model is:

The extent of the activities undertaken by an LTO depends entirely upon the budget and resources it has at its disposal. Most LTOs in Australia don’t have the resources to undertake a large range of activities. Typically, LTOs concentrate on local “look and feel” issues of their immediate locality – the visual amenities, signage, etc. Some promotional activities may be undertaken which are targeted at nearby markets or visitors that have arrived in the region. Where there is an active RTO which encompasses the LTO area, the RTO normally undertakes marketing activities outside of the region, on behalf of the entire region.

8.5.1 Port Douglas Daintree Tourism Association (PDDTA)

Port Douglas Daintree Tourism Association (PDDTA) is an LTO which has recently undergone restructuring following some years of operational ups and downs. PDDTA is the LTO for the Douglas Shire which is part of the Tropical North Queensland Tourism Region, of which Tourism Tropical North Queensland (TTNQ) is the RTO. It receives funding from the Douglas Shire and from membership fees. Like many LTOs it has suffered from insufficient funds to achieve its objectives. When it employed full-time staff to undertake the functions of the Association and paid office and other administration costs, it had little funds for marketing. As a result of a recent review, it has adopted an ‘outsource – partnership’ model, which reduces its staff and administration costs by outsourcing some functions and forming operational partnerships to achieve its objectives.



34

PDDTA has contracted TTNQ to develop and implement an annual marketing activity plan which is approved by the PDDTA Board. It also intends to contract other private consultants to undertake specific aspects of marketing and promotion. The Board has formed a marketing sub-committee whose role is to set the strategy and approve the marketing plan; to maintain liaison with TTNQ and others who are implementing the plan; and monitoring progress on delivery.

The PDDTA Board also liaises with the Douglas Shire Council to have input into planning for the Shire that takes tourism into account. In this way, the Council can call on the Board for feedback and comment on its planning role, from a tourism perspective. In this new model, an executive officer (EO) and one part-time staff member will be employed. The EO’s role will be to implement the directions of the Board; to maintain relationships with key partners; and to coordinate communications from the Association. The part-time staff member will handle membership development. The important aspects of this model are the reduction of costs by outsourcing functions and partnering with the RTO and potentially others, for implementation of marketing activities. This has necessitated all parties to approach partnerships in a spirit of respect and understanding to ensure success. To assist the relationship between the RTO and PDDTA, representatives of each organisation will sit on each other’s Boards.

Funding is normally the key restraint to LTO activities. Where the funding issue can be overcome, a different LTO model exists.



35

8.5.2 Tourism Noosa

Noosa Tourism is an example of an LTO with a relatively large funding base. It is involved in a wider range of tourism activities, including advertising and promotion, product development and programs to improve service standards and quality of products, in addition to operating a Visitor Information Centre and sourcing events for the Shire. Noosa Tourism is funded by the Noosa Council with funds derived from a differentiated levy on all commercial ratepayers. It has an annual budget of $1,340,200. (Community Tourism Plan 2002-2011)

8.6 THE CURRENT ROLE OF MOUNT ISA TOURISM ASSOCIATION (MITA)

MITA is the LTO for Mount Isa. As previously outlined, MITA has few resources and its structure and activities, as indicated below, differ significantly from the above examples.

Currently MITA has relationships with OQTA, MICC and its members. Its only activities are some aspects of marketing – namely advertising and promotion. There are a range of activities often undertaken by LTOs that MITA is unable to address.



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9.0 STRATEGIC DIRECTION AND OUTLOOK

It was noted in undertaking this study that there is no real strategic direction for tourism, due to the restricted resources available from within the industry. For example, one of the current ‘bottlenecks’ to further tourism growth in Mount Isa, is a shortage of accommodation for much of the year. With the exception of one recent hotel redevelopment, there has been no new accommodation constructed for some years. Two new motel projects are underway however with the current demand for accommodation from non-tourism sources, this may still not improve the situation to any great degree. The current mining boom and the need to accommodate mining staff and families is placing severe pressures on the available stock of rooms. One motel has recently been converted into police staff accommodation. There is no mechanism to promote the opportunities for new investment for accommodation or other infrastructure. Much of the new infrastructure opportunities are not solely related to tourism. They would have a wider impact on the City overall. At present there is no current economic development strategy for Mount Isa. Council has a City Development Officer and a desire and intention to develop a strategy, however there is no mechanism for bringing the government and business leaders of the City together to take a strategic approach to all aspects of development for Mount Isa – including tourism. In other cities where an economic development organisation exists, other activities include investment promotion and attraction and building relationships with key government agencies and major private corporations with an interest in the city. Such organisations are able to attract government grant funding and corporate support for the planning and development of the city. A further consideration for Mount Isa is that with a population of only 23,000 people, there is a relatively small number of business leaders with the skills and experience to drive a proactive, strategic vision and direction for the City. It would make sense to pool this talent and to use it for overall City development, including tourism, in conjunction with Council.



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10.0 TOURISM MARKETING AND DEVELOPMENT

Two aspects of the brief for this project were to analyse existing marketing and consumer perceptions and provide recommendations for strategies to achieve improved outcomes; and to prepare an action plan including priority action areas and new or potential future projects for implementation. In preparation for this report, it was also attempted to determine the effectiveness of current tourism marketing activities. Most of the information gathered is from operator and stakeholder interviews. To provide more robust information would have required dedicated consumer research to be undertaken which was beyond the brief of the project.

10.1 CONSUMER PERCEPTIONS OF MOUNT ISA

Most of the promotion of Mount Isa in recent years has featured the city as either: • “You’re not a real Aussie till you’ve been to the Isa”, or • Rodeo Capital of Australia

There has also been a number of promotional activities focused on the themed highways of:

• The Overlander’s Way • The Matilda Highway, and to a lesser extent • The Savannah Way

One person, Councilor Gary Asmus, has been used as the ‘face’ of Mount Isa on most promotional material. Outback at Isa is the largest attraction in the City and is the ‘anchor’ attraction for the city. Most industry representatives questioned on this matter were unsure of consumers’ perceptions of the Isa. The strongest collective view was that it is seen as a mining town. The consistent views were that:

• None of the previous marketing had really been successful • There is no clear image of Mount Isa and what it offers to visitors. The promotion

of themes such as ‘Rodeo Capital of Australia’ has not worked. • There has been insufficient funding to make an impact

OQTA is generally seen by operators and industry to be doing a good job with a very vast and different region and few resources.

10.2 MARKETING ACTIVITIES

If tourism marketing is not seen to have been successful in the past, then changes need to be made for the future. The main comments from industry representatives on this matter were:

• There was a strong feeling that mining and the history of mining should be

featured in future promotional messages. • If the ‘Rodeo Capital of Australia” tagline is to be used, there needs to be more

frequent rodeo type activities for visitors to experience • There is a greater need for understanding the main markets and market

segments and their needs and behaviour patterns



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• Additional funding is required to employ a full-time tourism person and to increase marketing activities and opportunities

MICC advise that the term “Mount Isa – Rodeo Capital of Australia” has been registered in Australia. With the new Buchanan Park development there will also be the opportunities to run more frequent rodeo activities for visitors. As noted earlier in this report, the name of Mount Isa is synonymous with mining on a large scale. ‘The Isa’ exists because of its mine and mining continues to influence almost every aspect of the city’s development. More recently Mount Isa has been promoted in a number of recent tourism plans as the outback city/outpost on the edge of Australia’s remote frontier. Other core visitor themes include:

• Paleontology (Riversleigh Fossil Fields, etc) • Indigenous tourism (Kalkadoon Tribal Centre, etc) • Bush events (Mount Isa Rodeo, etc) • Freshwater fishing (Lake Moondarra) • Heritage (Royal Flying Doctor Service, School of the Air, Underground Hospital

etc) • Nature based tourism (gateway to Lawn Hill, Lake Julius, Riversleigh) • Settlement (pastoralism, droving, urban growth, etc)

Further consumer testing needs to be undertaken to form a more informed view as to the right ‘brand’ or promotional statement for Mount Isa tourism. In the absence of this, there should be a concentration on the variety of experiences available to visitors under the “Mount Isa” banner. The City’s name is well known and more firmly associating key experiences with the name can only benefit the overall situation. Significant funding is required to engage professional assistance to develop a new ‘brand’ or single promotional statement. Additional funds are then necessary to promote this ‘brand’ or statement to key markets with sufficient frequency to create awareness. If the funding to create awareness is not available, then the whole exercise is not only wasted but is likely to create even greater confusion in the markets as to what the destination has to offer. It is recommended that a dedicated tourism positioning and brand strategy be prepared. This should provide overall direction for all Mount Isa promotional activities.

10.3 ROLES AND RESPONSIBILITIES – PAST AND FUTURE

The predominant reason for the perceived ineffectiveness of past marketing activities has been the lack of resources. In recent years, MICC has not been as directly involved in tourism as it was. Following a council decision in 2003, the private sector was to take more of a leadership role and be more self-sufficient in marketing the City, and the “Outback as Isa” attraction was to take on the role as the coordinator of destination marketing for the city. Neither of these outcomes from the 2003 MICC decision has proven to be effective. The MITA has had too few resources to be able to coordinate and facilitate destination marketing or to take advantage of all of the available opportunities. There are too few operators in the Isa to generate sufficient membership income to enable a staff person to be employed. Committee members have done the best they could; however have been limited by the demands of their own business and employment responsibilities.



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The “Outback at Isa” believed it was inappropriate for it to operate as a competitive tourism attraction, and to also be effective as the marketing coordinator for the Isa as a destination, on behalf of all of the tourism operators. This left a void which caused a deal of frustration and confusion for local tourism operators and outside organisations wanting to engage Mount Isa in marketing opportunities. The MICC has assisted MITA to some extent in the last few years with some coordination and financial support however this work is not part of the position description of the staff involved and many opportunities have been lost. This situation is not ideal and scarcity of funds has reduced the impact from the few marketing activities that have been possible. In the recommendations contained in this report, tourism would share the resources of a new organisation and would have the dedicated resources of a tourism development officer. Tourism would also be included in the economic development strategy for the City. A draft Tourism Action Plan (TAP) is enclosed in Appendix A. This action plan includes three core strategy areas:

• Marketing • Product development • Investment and planning

It is proposed that a new Tourism Advisory Group be formed comprising active and experienced tourism operators who have an understanding of markets and the local products and services. The role of this group should be to contribute to the preparation of the TAP; to provide regular comment on progress against strategies and actions; and to generally support tourism activities for the proposed new organisation in a non-operational way.

10.4 EXPECTATIONS OF FUTURE GROWTH

Tourism industry and business representatives were asked “What targets should be set for tourism for the next 10 years?” Their responses included:

• A strong and positive tourism image for Mount Isa is important to attract miners to the town

• Tourism should provide additional variety of jobs (to mining) and provide opportunities for miners partners and children

• Tourism should improve the lifestyle for locals • More focus on yield rather than visitor numbers • Less seasonality • A broader mix of visitor markets

These responses indicate that there is a need for tourism and mining to be working together for the benefit of both. Respondents also indicated that tourism is not a numbers game. It is not just about how many visitors can be attracted, but about what the benefits of tourism are to the local community. A large number of backpackers and special interest groups already pass through Mount Isa en route to the Northern Territory and the Great Barrier Reef. There is an opportunity to extend the length of stay of these visitors, which is another way of achieving tourism and economic growth. In terms of visitor growth, it would be unwise to set targets which were too high or irrelevant to the forecast rate of growth for Australia. The forecasts are for domestic tourism in Australia to grow by less than 1% per annum for the next 10 years. Internationally, this growth is forecast at 6%. Most of Mount Isa’s tourism is domestic; therefore maintaining



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current share of outback Australia’s tourism should be the priority for the immediate future along with a focus on yield and product development. As discussed earlier in the report, the region currently attracts mid-life and older couples from both intrastate and interstate on the self-drive Grand Tour/Big Tour holiday. This market has delivered a slow rate of growth and a marginal level of yield for the destination over the past four years. Tourism Queensland’s research indicates that there are other segments with significantly greater potential for growth. These include short-stay markets, backpackers and international/campervan segments (eg Britz, Maui etc). The “Grey Nomads” represent the volume source of visitation to Mount Isa. The challenge is to attract new market segments. There is also an element of wanting to make tourism more sustainable. None of these issues should raise any concerns within the local community. If an approach is taken to develop further tourism opportunities to deliver the type of outcomes shown above, then there should be a natural alignment between local government, the business and residential communities and tourism, to achieve success. This balanced approach will require the development of a wider range of indicators to monitor and measure the benefits of tourism. Further information on this is contained in Chapter 13.

10.5 PRODUCT DEVELOPMENT

Product refers to all of the services, infrastructure, facilities and experiences that are aimed at visitors to enhance their visit to a destination. It includes those provided by government and the private sector. In addition to the image of the destination which is addressed earlier in this chapter, there are a range of broad product elements, which need to be considered. These include:

• Attractions (can be man made or natural) • Amenities (accommodation, visitor services, including visitor information centres) • Activities (things to do and see) • Access (transport, including quality of roads) • Service (hospitality and friendliness, etc) • Visitor themes (heritage, bioregions etc) • Sense of place (the look and feel of a destination)

Product development is a way of ensuring that the Isa is relevant to the needs of today’s visitors and that there is knowledge and information available to both government and industry on the trends and potential changes to visitors’ needs and behaviour in the future. Mount Isa has an opportunity to strengthen its position as the Outback Service Centre and base camp for all trips to the North West (the big city of the North West). The excellent transport and service infrastructure and the recent addition of visitor attractions means that the city can cater for the needs of all travellers to the Outback. Most importantly, as a base camp, visitors can visit significant natural and cultural attractions throughout the North West from a central accommodation centre. The city needs to take a leadership role in promoting future tourism growth in the North West if it is to consolidate its role as the major service centre hub. Part of the product, as it is experienced by visitors, is the quality and the service delivery. One of the elements impacting on these issues is experience and training of those delivering the services. There is also a need to understand the different quality and service needs of



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different segments of visitors from different markets. Many government agencies provide business improvement and training programs. There are numerous opportunities for new projects which could enhance tourism in the Isa. Many of these will require individual assessments as to their viability and practicality. These have been divided into three areas – infrastructure projects; promotional projects; and product development projects. The process of identification of new project and product ideas should not be static. Every piece of new market intelligence information should be examined for its implications and opportunities for Mount Isa tourism. A formal workshop to review market intelligence and new product and new project opportunities should be conducted on at least an annual basis.

10.5.1 Infrastructure and Attraction Projects

Some criteria should be set to determine the support for development of new product. Ideally, any new product should do one or more of the following:

• Increase the potential visitor numbers or the quality of visitors (higher spending) • Contribute to the desired image and positioning of the Isa as a tourism

destination – i.e. be consistent with and add value to what is already in place or to be a catalyst to take the destination to a new and agreed position

• Provide benefits to the local community in addition to visitors • Be economically and environmentally sustainable • Be an addition to the destination’s competitive strengths (rather than just

another product) Accommodation operators in the city have traditionally relied on business travellers (government and mining employees, sales representatives etc) and there is still a certain amount of reluctance from some operators to attract and service leisure/holiday markets. There are opportunities to improve and increase accommodation options for certain markets such as backpackers and special interest markets who are interested in home stays, hostels, bed and breakfast opportunities and camping sites (caravans and motor homes). Anecdotal evidence from workshops indicates a seasonal shortage of accommodation within Mount Isa across a variety of accommodation types and this view has been supported by survey responses. There is an opportunity to develop new accommodation as part of the redevelopment of the airport precinct together with the Buchanan Park Complex. Both self-guided and operator led tours need to be developed to help keep visitors in town for extended periods of time. These tours need to package up the wide array of attractions, which lie within a half day’s drive of Mount Isa. In this way the base or service camp concept can be fully integrated into Mount Isa’s tourism strategy. The project team is aware that a variety of tours have been trialed over the past five years without success. There is an opportunity to develop both self-guided and guided tours for targeted visitor markets. These tours should commence at the Outback@Isa Centre and be supported by clear mud maps and supporting material. Tour themes should include:

• Indigenous culture (Indigenous sites and information, bush tucker and skills), history of the Kalkadoons and Battle Mountain, links with Kalkadoon Tribal Centre.

• Natural attractions including Selwyn Ranges, Lake Julius, Lawn Hill, Lake Moondarra, Gregory River at Riversleigh.

• Day trips, tours and loops including: Camooweal Caves, Riversleigh, Lawn Hill, Kajabbi, Cloncurry District, Duchess, Quamby, Gregory Downs.

• Historic pubs/hotels circuit including Kajabbi and Quamby. • 4WD circuits



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• Fossicking tours (Maltese crosses etc) • Bush culture, Royal Flying Doctor Service, School of the Air, Mount Isa Rodeo • Fresh water fishing sites

Road signage will need to be provided to guide visitors along tour routes. Improved ‘i’ signage is also needed to provide adequate direction to the Visitor Information Centre. A consolidated visitor guide containing a full set of self-drive/guided tours could be developed. This guide should contain maps, events, activities and an inventory of tourism services.

Secure car parks need to be provided for campervan and caravan travellers who wish to take half and full day trips to destinations around the City. Mount Isa has everything to gain by supporting the further promotion and marketing of the Overlander’s Way and the Matilda Highway themes routes. These routes are significant links for Australia and for the backpacker and special interest segments. There is also an excellent opportunity to open up communication with the Northern Territory, the Channel Country, the Gulf Country and other shires along the Overlander’s Way themed corridor. Opportunities for self-guided tour itineraries, and half and full day circuits for 4 wheel drives are examples of potential products. Mount Isa needs to take a key leadership role in the North West Marketing and Product Development Group. This group is a key link with OQTA. Other new product ideas identified during discussions with industry and government representatives for this project include:

• A new motor-sport facility on the outskirts of the City area. It is understood that a proposal for a raceway similar to the Willowbank Raceway in Ipswich, is being examined. Such a facility has the potential to offer entertainment for young people and families as well as to be part of a national circuit for top-class dragsters which feature at race meetings around the country

• A recreational precinct along the banks of the Leichhardt River in the centre of the City. The development of such a precinct and the associated landscaping and pathways would be a major enhancement to the appeal and usability of the central city area for people of all ages. There are good examples of how similar precincts such as Southbank on the Brisbane River, have transformed central city areas and provided additional benefits and enjoyment for local residents and visitors alike

• Activities on Lake Moondarra. These could include cruise boats offering a scenic experience or featuring the native wildlife and birds on and around the lake. Suitable jetty facilities could also be provided. Such activities would support the existing annual fishing competition which is a popular event for locals and visitors

• Support for the production of outback films. Mount Isa has the equipment and infrastructure which would be required to support film crews. There are few other Outback cities where such equipment, services and facilities are available

• New-style camping facilities in key locations to accommodate the new up-market retired Baby-boomers and their vans and motorhomes

• City beautification projects, including general tree planting to provide visual appeal and shade along streets in the City and along entrances to the City

• New accommodation – including new and more flexible designs to provide more light and space (compared to the 1970s motel style)

With immense mineral deposits still un-tapped around the Mount Isa area and new mining operations likely to come on stream in the next five years, and the potential for large national projects such as a Mount Isa to Darwin rail line, the time is right for Mount Isa to pool its skills and resources to maximise the benefits that will accrue to the City and contribute to future growth.



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Buchanan Park Complex This new facility will be an important new addition to the Isa’s tourism infrastructure. Final designs have been completed and construction of the complex (now estimated at over $16m) is well underway. The project consists of a 5500 seat events stadium and arena designed specifically to stage world-class rodeos as well as being able to stage the big travelling rock concerts and other large scale events. The project involves the upgrade of the existing race club facility, bars and function areas and the old betting areas are to be demolished and replaced with a larger exhibition pavilion suitable for staging the Mining Expo, annual shows as well as a variety of trade shows. The air-conditioned pavilion will also be used for events such as B&S Balls, sporting matches, school ceremonies, concerts etc. Just about all major events will take place using some or all of the Buchanan Park facilities. The rodeo stadium and arena is expected to be completed in December 2006 and the pavilion and club facilities will be completed by mid 2007. It is envisaged that many people from the surrounding districts will travel to Mount Isa to see the events being held. The site will be used for anything that can be accommodated, such as motor home jamborees and spill-over camping will be allowed when the city’s accommodation is saturated. The complex will include a camping ground for rodeo people, side show people, travelling stall holders etc. An ablution block is to be built to cater for campers on the site and this could be used year round to help solve any shortage of caravan or camping sites if and when this might occur. It is envisaged the number and size of events to be staged at Buchanan Park will have a significant impact on visitor numbers to the city and the increased demand will be the catalyst to trigger the development of new motel and caravan park accommodation in the city. This is essential as the existing facilities currently only cater for the current demand.

A list of existing accommodation and attractions is contained in Appendix E.

10.5.2 Promotional Projects

With dedicated resources and some additional funding (amount to be determined), there will be opportunities to participate in a greater number of promotional opportunities. The danger is that offers of one-off projects may be accepted without consideration of the overall objectives – a reactive approach; rather than a proactive approach to achieve desired objectives. It is therefore imperative that overall aims and objectives are carefully considered in the first instance and guidelines are sufficiently explicit to steer a range of actions that are in the best interests of the City and which maximise returns on resources invested. The recommendations in this report provide for additional resources for tourism development compared to the present situation; however these will still be reasonably limited. As such, they should be used to generate very cost-effective promotional, PR, and relationship-based activities that will provide more regular and consistent exposure in main markets - rather than one or two larger advertising campaigns. New promotional projects could include:

• Media familiarisations that address key market segments



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• Hosting radio morning presenters from stations in key markets to broadcast from the Isa to their home audiences during major events

• Participation in Tourism Queensland and OQTA promotions where the majority of funding is provided by the partners. Strong and positive relationships with these and other key partners will attract more opportunities and greater leverage to secure increased outcomes from limited investments. This includes television holiday programs where hosting responsibilities can be shared between individual operators.

10.5.3 Product Development Projects

Access to dedicated human resources for tourism would enable a greater focus on a range of product development activities. Whilst these activities do not increase awareness in source markets, they can make a considerable impact on the experiences of visitors who are in the destination and thus increase the word-of-mouth recommendations from these visitors to others. Where promotional budgets are small, a focus on product development initiatives can generate positive results both for visitors and the community. New product development projects could include:

• Accessing government grant funding to conduct training programs for tourism operators and staff in areas such as; information and communication technology; customer service; quality improvement and innovation; market intelligence on main markets and segments

• Working with MICC on improvements to visual amenities – directional signage; city beautification; streetscape enhancement;

• A style of dress for local operators, including all commercial and retail staff, that presents a unique and distinctive image to visitors consistent with the destination’s image, and engenders a sense of ‘Isa pride’ in locals

• Fostering a program for local residents to “adopt and beautify a street, road, park or rest area” and presenting annual awards in a range of different categories

• Smaller and regular fun events which are consistent with expectations of the outback, and which have a commercial justification – e.g. lizard races at a local club or hotel; country and western Karaoke nights;

• Invitations from local clubs to visitors to ‘meet the locals’ with some incentive to attract visitors and some recognition of them during the evening to make them feel welcome and to reinforce to locals the presence of visitors in their midst



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11.0 FUTURE TOURISM MODELS (OPTIONS)

In preparing this report, three options were considered for a future tourism model for Mount Isa. Consideration was given to the longer-term sustainability of any new model; the degree of support available from within the tourism industry and the local community; and the effectiveness and efficiency of operations. Model 1 is a tourism specific model. Model 2 is a merger with the Chamber of Commerce; and model 3 provides for the establishment of a new economic development organisation which includes tourism and the Chamber of Commerce. Model 1 New MITA Model

Model 2 Development Model

Model 3 Enterprise Model

Advantages One single, dedicated point of contact for tourism A regular and ongoing tourism resource to coordinate and stimulate tourism A higher profile for tourism both within the city and outside Increased opportunities for advertising and promotion Increased opportunities for industry improvement

Advantages One committee for business and tourism development Increase in capacity and resources for tourism Increased efficiency for Chamber of Commerce No competition for membership between the Chamber and tourism One business organisation for people to deal with Tourism branding and promotional creative application could also flow over into general business development and attraction activities

Advantages All the benefits of model 2, PLUS Clear demonstration of commitment to unity and strategic direction Partnership between private sector and all levels of government A greater ability to attract support and participation An overall economic development strategy Mechanism to coordinate planning and development activities at all levels of Government Increased synergies and effectiveness in the delivery of services and provision of infrastructure Increasing profile of Mount Isa beyond the region

Disadvantages Absolute reliance on MICC, corporate sponsors and additional members’ funding

Disadvantages Reliance on volunteer Chamber and tourism committee members and limited staff Limited financial resources

Disadvantages Requires continued financial support from stakeholders Higher overheads

In discussions with all of the major stakeholders in Mount Isa, including MITA and the Chamber of Commerce, there was a strong preference for the new economic development model which has the potential to significantly lift the profile of the city and increase its ability to compete for greater investment and funding input from industry and governments. This model also has the potential to provide a more solid and sustainable base for leadership and coordination of tourism in the Isa. Models 1 and 2 are included in Appendix B.



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11.1 A STRATEGIC MODEL FOR ECONOMIC DEVELOPMENT – MODEL 3

As indicated earlier, in undertaking preliminary work for this report it was observed that there could be a more strategic, proactive and inclusive economic development approach for Mount Isa. MICC advise that it is their intention to develop an economic development strategy in the near future. Whilst overall economic development for Mount Isa is outside of the terms of reference of this project, it became apparent that the most effective and sustainable way to improve the tourism model is to address the bigger issues of strategic planning and economic development for the City as a whole. This model embraces a more proactive, collaborative and strategic economic development role on behalf of the City and all its commercial activities – including tourism. It proposes a significant increase in Mount Isa’s capacity to control its own destiny for the future. It also brings together State and Local governments and all of the main corporate players in the private sector for a united focus on strategic planning and economic development and provides a common direction for all government and private resources for the benefit of the City. For the purposes of this report, this model is entitled the Mount Isa Enterprise (MIE) model.

It provides for one Board of Directors who would take responsibility for strategic planning and implementation of actions for the economic development of Mount Isa to deliver benefits



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for the MICC, the large corporate businesses, small businesses enterprises and the community. This “Option 1” version of the model provides for separate delivery functions for general business development and tourism marketing and development with one Manager responsible for each function stream. It proposes a support staff of 2 persons. It is proposed that the new Mount Isa Enterprise would be a limited liability company owned by its members. Members would be drawn from all business sectors and from other organisations willing to participate. It is also proposed that both MITA and the Chamber of Commerce would cease to exist in their present forms but that their respective roles would be accommodated within the new organisation as the advisory committees to the Board on business and tourism matters. It is anticipated that the Board of Directors of the new organisation would include representatives from both general business and tourism. This model retains all the features and benefits of model 2, which were:

• An increase in the capacity and resources for tourism • An increase in effectiveness and resources for general business development

(compared with the current Chamber of Commerce) • No competition for membership between general business and tourism • One commercially focused organisation for people and organisations within and

outside the City to deal with • A common brand and identity for the City with appropriate application to

marketing and development for both general business and tourism Additional features and benefits of this model are:

• A clear demonstration to all audiences both within and outside the City that there is a real commitment to unity and strategic direction in the development of the City and region

• A demonstrated partnership between the private sector and all levels of government including the MICC

• A greater ability to attract support and participation from corporate businesses and government departments and agencies. This would include both Board representation and financial and in-kind support. At present, government grant funding opportunities are not being addressed to the extent possible

• The ability to develop one overall economic development strategy for Mount Isa with specific roles and responsibilities for implementation for the various government and private sector partners

• A mechanism to coordinate the planning and development activities of Local, State and Commonwealth governments in collaboration with the private sector

• Increased synergies and effectiveness in the delivery of services and the provision of infrastructure for Mount Isa

• Increasing the profile of Mount Isa beyond the region; especially with State and Commonwealth governments

• A more effective voice and influence capability for Mount Isa This model can be further refined to provide more internal unity and cohesion. This is outlined in an “Option 2” version of this model. This is the recommended model for adoption for Mount Isa.



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In this version, there is no formal separation between general business and tourism. The CEO would take overall responsibility for all business and tourism activities with support from business and tourism Development Officers and one support staff. The main features and benefits of this model over the “Option 1” version are:

• A more senior and experienced CEO could be recruited to take an overall leadership and spokesperson role for economic development, including business and tourism. Even in this model, the resources available will still be relatively small and it makes sense to use them most effectively

• This integration and a stronger and more experienced CEO should provide a higher level of leadership and representation, which would be expected to translate to more active support from corporate and government organisations and increased results

• A more focused and cohesive organisation Some of the most consistent comments received during the consultation process, in regard to the present tourism situation, were:

• Most businesses are too busy (with mining) to be concerned with tourism • There is not enough ‘hunger’ in town to focus on tourism



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A further feature of this model is that it brings all of the economic and business development planning and activities into one organisation. This should ensure that the benefits of tourism are more widely considered and appreciated throughout the whole community. It is recommended that a new economic development organisation be established for Mount Isa (based on this model 3 – option 2) which will undertake strategic planning and economic development activities including business and tourism marketing and development. It is recommended that an annual economic development strategy for Mount Isa is developed and implemented by the new organisation on behalf of its stakeholders, containing action plans for both tourism and business - marketing and development.

11.2 SUPPORT FOR A STRATEGIC ECONOMIC DEVELOPMENT MODEL

In consultation with key government and business leaders in the City, it became apparent that there was a good deal of support for the option 2 version of this model. Organisations which indicated support include:

• MICC • Mount Isa Airport • Xstrata Copper • Mount Isa Water • Queensland Department of State Development, Trade and Innovation

It was indicated that this support would include direct funding and participation and involvement in the direction and operation of the organisation. Xstrata Copper already invests very significant amounts for development and training projects in Mount Isa. It would be supportive of a more focused and active strategic direction for the overall development of the Isa. It is important to Xstrata that Mount Isa is seen in a positive light so as to be able to attract families to live and work in the city. Xstrata also have an interest in the availability of a greater range of jobs than mining, to provide for the spouses and children of miners. It needs Mount Isa to be seen as a vibrant and attractive place to live and recognises that tourism has a role to play in promoting and developing the city. It recognises that a strong and positive profile for Mount Isa helps to attract teachers, nurses, police, etc., which also has benefits for mining. Xstrata would provide support through a partnership agreement which includes the delivery of specific outcomes relating to the matters above. Mount Isa Water has planning obligations to fulfill which are hampered by the lack of an overall development plan for Mount Isa. It has a statutory control plan for the lake surrounds which focuses on recreation facilities and opportunities for residents and visitors. It would support an integrated approach to economic development and planning which would provide it with a framework to fulfill its own corporate objectives and responsibilities. Again, it indicated that financial support would be provided as part of a formal partnership agreement. The Department of State Development already has established links with the following local government bodies through its State Development Centre at Mount Isa:

• City of Mount Isa – Mount Isa, Camooweal • Flinders Shire – Hughenden • Richmond Shire • McKinlay Shire – Julia Creek



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• Cloncurry Shire – Cloncurry, Dajarra • Boulia Shire

The Centre also jointly services the following local government bodies with other State Development Centres:

• Diamantina – Bedourie (with SDIC Rockhampton) • Burke – Burketown, Doomadgee (with SDIC Cairns) • Carpentaria – Normanton, Karumba (with SDIC Cairns) • Mornington – Mornington Island (with SDIC Cairns)

It also provides funding to economic development organisations in other parts of the State. It is very interested in fostering and supporting activities which improve economic development, employment, livability for residents, and the formation of effective business clusters (including tourism). It believes that there would be other large business enterprises in the Isa that would also financially support this new organisation (above the ones mentioned above). It is very supportive of the formation of such an organisation for Mount Isa and (subject to the necessary processes and approvals) would provide financial support. Mount Isa Airport has plans for development of commercial facilities including accommodation, on their land within the airport precinct. A more strategic and proactive ‘push’ for the Isa would gain their support, including financial contributions. Any increase in tourism or business has the potential to increase air services into the City which is fundamental to their business.

11.3 OPERATIONAL BUDGET

An indicative annual operational budget has been estimated based on the Model 3 – option 2 example shown above. Indicative Budget for a Strategic Economic Development Organisation

Income: Membership 30,000 Corporate and government 310,000 Grants 80,000

Total Income $420,000 Expenditure: Staff costs (4 staff) 240,000 Office Rent 25,000 Office Equipment 15,000 Motor Vehicle 20,000 Communication 10,000 Consumables 20,000 Advertising and Promotion 50,000 Travel 35,000

Total Expenditure $415,000 The expenditure costs are based on general estimations – these costs have not yet been tested in the Mount Isa environment. The purpose of this budget is to focus attention on the income that would be required to make this model work and the amount of corporate and government financial support that would be necessary – over and above general membership income. The budget shows annual expenditure slightly in excess of $400,000. This is based on a modest office/premises environment and a total staff of four people. Assumptions have been made as to the salary levels that would be necessary to attract the right people.



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It has been assumed grant funding of $80,000 per year, most likely from Australian Government programs, could be secured and applied towards operational costs. It is believed that significantly more grant funding would also be available for specific project costs. The budget indicates that in addition to general membership income of $30,000; a further amount of slightly over $300,000 would be required each year to maintain operations. This funding would need to come from Xstrata and a few other large business enterprises and from State and local government. There are opportunities to reduce some of the indicated expenses through sponsorships from local businesses for items such as motor vehicles, office equipment and office premises. However, this model is entirely dependant on the willingness of the large corporations and State and local government to provide direct funding each year for operations. This in turn will be entirely dependant on the direction the organisation takes; its achievement of objectives for the city; and its ability to add value and provide overall benefits and synergies for business and government generally. From discussions with some of the above large Corporates and government agencies, it has been indicated that sufficient funding support will be available on an on-going basis, to finance the operation of the organisation, in accordance with the indicative budget. Up until now, MICC has funded its contributions to tourism from general rates. A possible alternative funding mechanism could be a differential rating levy to raise funding from all commercial businesses for the purpose of the economic planning and development for the city. This option has not been fully costed; however a brief analysis of the potential income that could be raised from the current number of commercial ratepayers indicates that it is unlikely to generate sufficient funds to warrant the introduction of such a levy. MICC can continue to make a financial contribution from general rates towards the new organisation; including for tourism activities. This is workable as long as there is consistency from Council and where there is a strong level of knowledge and understanding of tourism and business development by councilors. It is recommended that MICC be a major partner and financial contributor to the new Economic Development organisation. In this way, MICC will coordinate its support for tourism with other business and economic development activities. An option for Council to consider is to enter into a three year funding agreement with the new organisation to provide certainty of funding and foster a strategic approach. Council should also have a formal partnership agreement which sets out its expectations and key performance indicators and provides for regular progress reports to Council. Full details of possible additional funding options are contained in Appendix H. Case studies for a differential rate tourism levy are included as Appendix I.

11.4 FUNCTIONS

It is recommended that the functions of the new organisation be: • Leadership and/or coordination on behalf of the City for economic

development issues • Promotion of the City as a place for living, visiting and investing • Identification of opportunities for business and tourism enhancement • Business promotion and development • Tourism promotion and development



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• Investment promotion and attraction • Infrastructure planning and input into government planning processes • Industry attraction • Commercial/business enhancement • Industry cluster development (including tourism) • Events development and/or facilitation • Employment generation • Representation of the Isa within & outside the City • One voice for business and tourism – spokesperson role • Provision of business and tourism information to various internal and

external audiences • Community education of the benefits from business and tourism

A new organisation such as this has the ability to assist with feasibility studies and the development of large, key projects which would add to the infrastructure, services and facilities available for residents and visitors. This could include:

• The provision of advice on available land and land use • Potential joint-venture and funding partners • Advice on government planning and development application processes • Information on the city including demographics, visitor numbers, etc.

11.5 ESTABLISHMENT AND OPERATIONS

It is recommended that the new organisation be a limited liability company owned by its members and governed in accordance with a constitution. The initial Board of Directors should be selected from the key existing private sector and government organisations who will be expected to contribute financially to the establishment and on-going operations. The key people from these organisations already see the benefits from this development and have some commitment to its initial establishment and operations. In future years, Directors should be elected by all members, based on their skills, experience commitment and abilities. It is suggested that the number of directors should be no less than 8 and no more than 10, with the ability of elected directors to appoint one or two additional directors where there is a need for specialist skills and experience on the Board. In time, it would be an option for the government organisations to step back from Board positions or nominate a business person to the Board, and for the accountability of the new organisation’s actions and results to be governed through formal agreements and reporting mechanisms. The Board of Directors should:

• Approve the Business Plan including the strategies, actions and budget for generic activities and separate strategies and actions for Business and Tourism marketing and development

• Approve the policies and procedures, including the delegations of authority to ensure that the organisation operates responsibly and within statutory and approved guidelines

• Appoint the CEO and set the CEO’s remuneration package • Participate in a strategic planning workshop at least annually prior to the

development of the Business Plan • Monitor and review the actions and results of the organisation against the

Business Plan on a regular (monthly) basis



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• Establish “Finance and Audit” and “Risk Management” sub-committees of the Board to examine these areas in more detail to advise the Board (who all have fiduciary duties and responsibilities under the Companies Act)

• Determine the role to the Advisory Groups in the preparation of strategies and actions; monitoring of results and reporting to the Board

• Provide leadership, guidance and support for the CEO • Provide leadership for business and tourism generally and communicate

effectively on the organisation’s actions and results • Review their own performance as directors on an annual basis

The Board of Directors should also:

• Delegate responsibility for the daily operations of the organisation to the CEO • Delegate the CEO with authority to appoint staff within approved limits and

budget • Delegate the CEO to be the usual spokesperson for the organisation • Review the CEO’s performance on at least an annual basis

Case studies of similar organisations in other regions are included in Appendix “D”.



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12.0 OTHER TOURISM ROLES AND ACTIVITIES

In addition to the tourism activities outlined for Local Tourism Organisations in Chapters 8 and 10; other activities could be considered to improve the performance of tourism in the City as resources increase. These include:

12.1 SUSTAINABLE TOURISM

Most destinations today are striving to achieve tourism sustainability. This occurs when tourism delivers economic, social and environmental benefits for local communities and where the negative impacts from tourism are managed and minimised.

Note. TTM or Total Tourism Management is a sustainable tourism framework developed by the Sustainable Tourism Cooperative Research Centre and the APEC International Centre for Sustainable Tourism. Sustainable tourism will not occur without a dedicated commitment. This is normally through a partnership between the private sector and every level of government, each with its own responsibilities. This is a “Destination Management” approach in which the key stakeholders jointly plan and act to ensure that tourism is a positive contributor to the economic, social and environmental health of the destination. Destination Management requires leadership and coordination and an application of resources to address the issues. Few, if any, destinations have the resources to address all issues simultaneously so some form of prioritisation is necessary to focus on actions that will make a difference. It is recommended that increased emphasis should be given to managing tourism in ways which are sustainable and contribute benefits to the Mount Isa community.



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The diagrams below illustrate some of the issues that can be addressed and the structure of stakeholders and relationships necessary to achieve success.



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The contribution to sustainable tourism can be through a range of local initiatives. For example, Noosa Community Tourism Board commissioned STS to develop a set of sustainable tourism indicators by which tourism in the Shire could be monitored and sustainability measured. A range of economic, social and environmental indicators were presented together with a staged implementation plan. It includes a cost-effective methodology for collecting data on an ongoing basis. The Shire Council has a pivotal role in the implementation of such a plan, as does industry and the community. Douglas Shire Council in North Queensland entered into a partnership in 2000 with a range of agencies including the Sustainable Tourism Cooperative Research Centre (STCRC), to improve sustainability in the Shire. It has since become the first Green Globe Benchmarked Community in the Asia Pacific region. (Green Globe 21 is an international, sustainable accreditation organisation with a focus on tourism). A range of social and environmental indicators were monitored and benchmarked. The GG21 accreditation has since expired however the Shire remains active in tourism sustainability issues. Kaikoura District Council in New Zealand is also an accredited GG21 Benchmarked Community. This accreditation was attained in 2002 and remains current. A range of social and environmental policies and measures have been adopted to improve sustainability in the District. Kaikoura is a popular area for tourism in New Zealand.

12.1.1 Communicating the Benefits of Tourism to Local Communities

From discussions with Councillors, Council staff and tourism and general business representatives, there is a consensus that tourism is not well understood in the City. There is a need for information and statistics to be gathered, interpreted and communicated to the general community in a way that they can relate to. This communication needs to be on a regular basis and will require resources to ensure that it is implemented effectively. It should not only address the economic benefits of tourism, but the social and other benefits and highlight tourism’s contribution to most of the other industries. Where existing economic data on tourism and tourism’s share of other Shire industries is not available or sufficient, consideration should be given to commissioning the development or implementation of an economic model which can provide this information on a regular basis. Other Councils, such as Gold Coast and Alexandrina in South Australia have such a model. The Australian Government Department of Industry, Tourism & Resources released a methodology for a Tourism Impact Model (TIM) which can be implemented in any region or local government area. TIM is an excel-based tool developed by the Tourism Division of the Commonwealth Department of Industry, Tourism and Resources. The model is concerned mainly with the impact of tourism on council budgets; it does not provide a single comprehensive test for the desirability or otherwise of tourist activity. A full assessment would require the identification and quantification of all economic, social and environmental impacts in a comprehensive benefit-cost framework. The model is designed to help Councils take stock of the existing situation, providing a focus for gathering data and making assessments concerning the budgetary impact of tourism. The model involves:

• Total impact analysis: TIM is designed to facilitate a comparison between actual budgetary outcomes (with existing tourist activity) and the budgetary outcomes that would be observed in the complete absence of tourist activity



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• Area-wide analysis: The absence of tourist activity means not just the absence of tourists and of businesses that service tourists (eg motels and caravan parks) but also the absence of all of the workers and associated residential and commercial developments that are, directly or indirectly, supported by tourist activity. These flow-on developments also have budgetary implications for Councils. Accordingly, the first task is to assess the economic impact of tourism

• National data on tourist spending: Drawing on nationwide surveys, quite a lot is known about the number of visitors and the amounts that they spend throughout Australia. The model provides estimates of visitor numbers and visitor spending in your local government area

• Employment and population effects: Simple multipliers are used to generate estimates of the jobs created by visitor spending, and the number of residents supported by those jobs. The underlying models are simple and transparent

• Impacts on Council expenses and Council incomes: Some of the impacts on Council expenses and incomes are readily estimated; others are more difficult. The model is organised to start with the easier issues and work gradually through to the more difficult issues

• Default estimates and Council estimates: The model includes certain default assessments of the economic and budgetary impacts based on general regional or national averages

It is recommended that a communication plan to increase the level of knowledge and understanding of tourism in the City should be developed, including more comprehensive information on tourism’s contribution to the Isa’s economy.



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13.0 IMPLEMENTATION OF NEW TOURISM MODEL

It is recommended that Council and major stakeholders should adopt a staged implementation plan in relation to the recommended actions contained in this report. The key stakeholder organisations that have indicated support for this new Economic Development Organisation are:

• MICC • Xstrata Copper • Queensland Government Department of State Development and Innovation • Mount Isa Water • Mount Isa Airport • Mount Isa Chamber of Commerce • MITA

It is recommended that these main stakeholders form an Implementation Taskforce which will coordinate the preparation work and the implementation of the new organisation. CEOs/GMs/Chairs or Senior Executives from each organisation should be involved in this Taskforce. The three stages are shown as consultation, preparation and implementation.

13.1 STAGE 1 – CONSULTATION

The establishment of this new organisation is an important development for Mount Isa. As such, there should be presentations and briefings to all interested parties to encourage an understanding of the features and benefits and the likely impacts on the City. Taskforce members should undertake these presentations and briefings and one or more spokespersons should be appointed by the group to be the main media contact for the Taskforce. There should be detailed communication to the resident community through the media. Ideally, the professional internal communication staff of some of the Taskforce organisations could be involved in developing a communication plan to be implemented in the period leading up to, and including, the launch of the new organisation. The most direct impacts will occur to both the Chamber of Commerce and MITA. There should be substantial discussion and communication internally by these organisations to ensure that the change-over to the new organisation is conducted in a positive and supportive environment. In all communication, the additional benefits and opportunities that the new organisation will deliver should be featured strongly with some quantification of these benefits if possible. For example, the additional resources and leverage available for business and tourism marketing and infrastructure development (compared to MITA and the Chamber currently). A vision for the future in terms of investment attraction linked to major new growth opportunities that will flow from new mining and other impending projects should also be highlighted. It should be emphasised that the main feature will be one coordinated and united approach by all the major government and private sector organisations for the future growth and development of Mount Isa for the benefit of all the community, as well as the commercial business and government interests.



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It is recommended that the Taskforce should be formed and the consultation period commence immediately following acceptance of this report and be linked to a planned commencement date for the new organisation of 1st July 2007.

13.2 STAGE 2 – PREPARATION

There are a number of key steps that will need to be completed before the new organisation can commence operations. Together with indicative times for the steps to be completed, they include:

• Applying for a funding grant for pre-establishment costs – by end of January 2007

• Agreement of a new name for the organisation – by February 2007 • Registering a new company/structure for the organisation – by February 2007 • Registering a domain name or names – by February 2007 • Confirmation of initial Board of Directors by end of February 2007 • Development and acceptance of partnership agreements with major stakeholder

organisations (MICC; Xstrata Copper; Mount Isa Airport; Mount Isa Water; Department of State Development and Innovation; and others – including specific funding support – to be developed by end of February and signed by end of March 2007

• Development of a new constitution – by end of March 2007 • Development of position descriptions for a CEO and staff – by mid March 2007 • Recruitment of CEO and staff – to commence in March 2007 • Development of an Economic Development Strategy and initial Business Plan and

Budget – by 31st May (for a 1st July launch) • Securing suitable premises, office equipment and connecting services – by June

2007

The new Economic Development Strategy could be launched on 1st July 2007, in conjunction with the commencement date of the new organisation. It would be a powerful statement of the unity and partnership between the MICC, other government agencies and the private sector. It would need to be completed in time to allow printing and publication for the release date. It is suggested that if the Board of Directors are finalised in the first quarter of 2007, they could work with MICC on the development of the Economic Development Strategy and the Business Plan and Budget in the second quarter. To ensure a successful start for the new organisation, the recruitment of the new CEO should be finalised in time for the successful applicant to be in Mount Isa ready for the launch on 1st July 2007. This would normally mean approving the appointment by 30th April to allow time for termination of existing employment and relocation to Mount Isa. Applications for the position would need to be advertised in late February with a closing date of mid March to allow time for consideration of all applications and interviews in the six week period from mid march to end of April. The new Chairperson and Directors should make this appointment. Other staff positions could be advertised to be received by end of March so that appointments can be made in May. The ideal option would be to involve the new CEO in the final appointments. This could be done prior to his/her arrival in Mount Isa and following his/her appointment. In addition to the above steps, there will also need to be steps undertaken within both MITA and the Chamber of Commerce to wind down their existing structures to enable them to be incorporated into the new organisation. The details of this work will need to be identified within each organisation depending on their respective structures and situations.



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13.3 STAGE 3 – IMPLEMENTATION

The suggested date for implementation is 1 July 2007. All of the feedback supporting the establishment of this new organisation indicated that it should happen sooner rather than later. Some favoured a starting date sooner than July next year. However, there is a significant amount of preparation work required which will be sufficiently challenging in a six month time-frame. The critical factors that will determine the success of the new organisation will be:

• A strong Strategy and Business Plan • Experienced, skilled and knowledgeable Chairperson and Directors • An Experienced and enthusiastic CEO • Capable and positive staff • Support from all the main stakeholder organisations

A further key factor will be leadership – both by the Chairperson and by the organisation. If all of the preparation is completed on time, implementation should be a reasonably simple process. There will need to be a launch function. This should be professional and business-like but need not be lavish. Appropriate dignitaries from within and outside the City should be invited. The new organisation will need to send very clear messages from the start as to its appreciation of the need for sensible and responsible expenditure of funds.



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14.0 SUMMARY OF RECOMMENDATIONS

It is recommended that: 1. A new economic development organisation should be established for Mount Isa which

will undertake strategic planning and economic development activities including tourism and business marketing and development.

2. The new organisation should be a limited liability company owned by its members and

governed in accordance with a constitution. 3. The functions of the new organisation should include:

• Leadership and/or coordination on behalf of the City for economic development issues

• Promotion of the City as a place for living, visiting and investing • Identification of opportunities for business and tourism enhancement • Business promotion and development • Tourism promotion and development • Investment promotion and attraction



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• Infrastructure planning and input into government planning processes • Industry attraction • Commercial/business enhancement • Industry cluster development (including tourism) • Events development and/or facilitation • Employment generation • Representation of the Isa within & outside the City • One voice for business and tourism – spokesperson role • Provision of business and tourism information to various internal and external

audiences • Community education of the benefits from business and tourism

4. An annual economic development strategy for Mount Isa is developed and implemented

by the new organisation on behalf of its stakeholders, containing action plans for both tourism and business marketing and development.

5. A dedicated tourism positioning and brand strategy should be prepared. This should

provide overall direction for all Mount Isa promotional activities.

6. MICC should be a major partner and financial contributor to the new Economic Development organisation. In this way, MICC will coordinate its support for tourism with other business and economic development activities.

7. An increased emphasis should be given to managing tourism in ways which are

sustainable and contribute benefits to the Mount Isa community. 8. A communication plan to increase the level of knowledge and understanding of tourism

in the City should be developed, including more comprehensive information on tourism’s contribution to Mount Isa’s economy.

9. Council and major stakeholders should adopt a staged implementation plan in relation to

the recommended actions contained in this report. (An implementation framework is enclosed.)

10. The main stakeholders (as listed below) should form an Implementation Taskforce which

will coordinate the preparation work and the implementation of the new organisation: • MICC • Xstrata Copper • Queensland Government Department of State Development and Innovation • Mount Isa Water • Mount Isa Airport • Mount Isa Chamber of Commerce • MITA

11. The Taskforce should be formed and the consultation period commence immediately

following acceptance of this report and be linked to a planned commencement date for the new organisation of 1 July 2007.



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APPENDIX A – TOURISM ACTION PLAN (TAP)

1.0 Overview Outlined below is an overview of the key tourism steps which need to be taken forward under the new model for economic development for Mount Isa. These need to be contained in a Tourism Action Plan (TAP) with components for marketing, product development and investment and planning. This action plan will need to be reviewed, updated and amended in accordance with the overall plan for economic development adopted for the City. The key areas to guide alignment are outlined in chapters 10 and 11. 1.1 Mission Maximise the economic and social contribution of tourism to the City of Mount Isa. 1.2 Guiding Principles • Developing long term public and private partnerships to support tourism growth. • Delivering unique services, attractions and experiences which showcase the city and its

surrounding region. • Achieving sustainable economic and social outcomes for both operators and the

community for the long term. 1.3 Strategy Areas • Marketing • Product Development • Planning and Investment

1.4 Key Industry Issues and Marketing Trends The following key industry issues were identified from market research, operator workshops and the recent Queensland Tourism Strategy consultation process. These issues have, where possible, been picked up in the Tourism Action Plan (Section 5.0 - below). 1.4.1 Consumer Changes (of significance to Outback tourism) Information and Bookings • New technology options are now available. These include internet research/

communication/telephones and text messaging Activities and Behaviour • Visitors want more hands on and experiential activities • Self–sufficient motor homes is a growth market which needs to be planned for • Repeat visitors will have major implications on the types of products and services that

need to be provided in the region • Regionally representative products need to be developed to showcase the unique regional

experiences available • Existing events such as the Mount Isa Rodeo provide a significant point of difference for

the City. These events need to be developed to highlight their potential • Local and regional connections need to be made available for visitor markets. Visitors are

looking for evocative and hands on local experiences through the North West • Changing travel patterns need to be considered. There is a move away from traditional

travel options towards fly drive/rail/holiday packaging



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Demographics • There is a need to better understand the holiday and travel needs of baby boomers. More

informed research is needed to improve communication and marketing initiatives for both international and domestic markets. Anecdotal evidence from operators suggests that the needs of the drive market to the North West are changing but not enough is known.

Pricing and Expenditure • Rising fuel prices will have a potential impact on types and modes of travel • Rising fuel prices will have a potential impact on discretionary spend Safety and Security • There is more focus on safety and security 1.4.2 Supplier Changes (of significance to Outback tourism) Distribution • User friendly websites are now needed • Websites are providing an avenue for a wide range of management and administrative

processes including bookings in national parks and information links with a wide range of state departments

• There is a need to establish better internet and web links with international travel wholesalers and suppliers both within Australia and overseas

• Pathways to appropriate distribution channels need to be identified • Regional operators need to work together to integrate products and services • There is a need to develop appropriate packages for wholesalers and suppliers • There will be an increase in domestic and international competition. We can’t be

complacent. Product Development • Local experiences need to be packaged up for presentation to the market place

(Buchanan Park, Lake Moondarra etc) • Opportunity for state and local government partnership arrangements (informal support,

client service, ‘adopt a tourist’) Quality and Service • Need to manage the dissemination of visitor information to domestic and international

markets • There are instances where there is incorrect and misleading information provided to

both domestic and international markets (eg road quality and access in the wet season) • Information centres such as Outback at Isa play a key role as regional information

suppliers Operations • Regional education and operator support is needed for packaging and marketing. A

regional umbrella is needed to bring operators together. Good examples include Overlander’s Way marketing group.

• Local community education and support needs to be fostered.



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1.4.3 Destination Changes (of significance to Outback tourism) Product Development and Infrastructure • Need to cater for nature based tourism including improved access to national parks

(birdwatching, bush walking etc) • Authentic indigenous experiences Marketing and Promotion • There is an opportunity to sell Mount Isa as a dual destination. This could include

stopovers, links and packages with other Outback and coastal destinations, eg fly/drive Townsville or Longreach to Mount Isa etc.

• Visitor satisfaction is important. We must be realistic about what we sell to the consumer and what can be delivered

• Visitors need a clear understanding of the size and vastness of Outback Queensland (length of travel to Mount Isa/Northern Territory)

• It is important to understand the needs of repeat visitors. This will lead to a better knowledge of experiences desired. A more proactive approach is required to meet consumer needs.

Destination Management • A shift to a more integrated approach to destination management. Greater stakeholder

buy-in, community ownership and partnerships are required • Visitor information needs including signage quality and consistency 2.0 Extent of Study Area (What location are we selling?) The study area is defined as that area administered by Mount Isa City Council. This includes Lake Julius, Lake Moondarra, Gunpowder, Riversleigh/Lawn Hill National Park, Camooweal and Mount Isa City. While the focus of this report is on growing tourism in Mount Isa, there is a great opportunity for Mount Isa to take a wider leadership role in developing tourism links and networks throughout North Western Queensland, the Northern Territory and the Gulf Savannah. Mount Isa is unique in Australia as a large modern city which can service the needs of visitors travelling to all parts of the North West and the Northern Territory. The role of Mount Isa as a key service centre for the Outback needs to be emphasised in all marketing activities. Mount Isa is strategically located at the crossroads between the Northern Territory (Ayers Rock and Kakadu) and the Great Barrier Reef. Mount Isa is an Australian mining icon and should be positioned as one of the “must see” destinations in any trip to Outback Australia. 3.0 Key Aims (what outcomes do we want to achieve?) 1. To grow and service a portfolio of visitor markets which can, over time, achieve

sustainable returns to the City/region.

a) Managing developed markets. These are the big/grand tour/ long haul drive markets. These include a high level of repeat travellers to the North West. Special care will need to be given to refresh and upgrade the City’s products and services to encourage increased length of stay and spend and to maximise word of mouth referrals from repeat visitors.



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b) Growing emerging special interest markets. These include short stay and fly drive markets (paleo-tourism, birdwatching, fossicking, eco-tourism, hunting, fishing, 4WD etc markets.) These are comprised of both domestic and international segments who have special interests and needs. Special packages of services and products are needed to meet the needs of these emerging markets.

c) Nurturing international markets. This includes existing backpacker markets,

together with drive markets (self-drive, Britz and campervans etc.) Mount Isa is located on a key transport pathway for backpacker markets crossing Outback Australia. Much more needs to be done to service the needs of these markets.

d) Promoting Mount Isa to the visiting friends and relatives market (VFR) and as a

significant special events destination. As the largest city in the Outback Mount Isa already has a large VFR market and has the capacity to run international standard events (eg Mount Isa Rodeo).

2. Building strong regional partnerships (public and private) to support the growth of

tourism. This includes membership and cooperative marketing activities and linkages with the wider business community.

3. Developing the soft and hard infrastructure to service visitors and promote increased

length of stay and spend. Soft infrastructure includes interpretation, maps, collateral etc; hard infrastructure includes new accommodation, attractions etc.

4. Developing a marketing platform which can, over time, establish a strong positioning and

brand management platform for the City (the look and feel of all marketing activities.) 5. Developing and packaging new products, visitor experiences and services which can

showcase the City/region’s natural, cultural and man made attractions. (The hands-on activities which make a visit to Mount Isa special and unique.)

4.0 STRATEGY AREAS (TAKING ACTION) 4.1 Destination Marketing Background One of the key roles of the new organisation will be the need to develop a clear destination identity and branding to promote Mount Isa to business, investment and visitor markets. Outlined below are the five core steps which should underpin this process. 4.1.1 Defining what core experiences Mount Isa has to offer visitor markets. The initial set

of core experiences are listed in section 6.3 of this report.

4.1.2 Identifying desired target markets. Key markets are outlined in section 6.1 of the main report. These segments need to be aligned with the experiences identified in Point 1 above.

4.1.3 Defining how, when and where to best communicate with target markets. A copy of the Outback Queensland Cooperative Domestic Marketing Opportunities for 2006/2007 is included as Appendix J. This includes excellent opportunities for press features, brochures, e-marketing, trade marketing, consumer shows etc.

4.1.4 Developing a brand strategy. This issue is explained in Section 11.1 of the main report and should become a key role of the new economic development organisation. This will require specialist research and should be undertaken with assistance from Tourism Queensland and Outback Queensland Tourism Association.

4.1.5 Defining how the Brand Strategy should be expressed to resonate with target markets.



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4.2 Brand Architecture The following diagram outlines the steps needed to underpin the future brand architecture for Mount Isa.



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TARGET AUDIENCES

PRODUCT ATTRIBUTES

STRATEGY & STRUCTURE

BRAND ARCHITECTURE

ENVIRONMENT SCAN &COMPETITION

VALUE POSITIONING

Brand Architecture Mount Isa



4.3 MARKET DEVELOPMENT MATRIX

WHICH MARKET? HOW IMPORTANT IN

THE FUTURE?

HOW TO REACH IT!

Target Market Segments Growth Potential Marketing Channels

ALLOCATION OF MARKETING FUNDS

4.3.1 Developed Markets Big, grand and long haul drive markets.

High Volume Low Yield

Low Growth

• Consumer trade shows (eg caravan and camping shows)

• Participation in appropriate cooperative marketing.

• Distribution of promotional material through online channels.

55%

4.3.2 Emerging Markets Nature, special interest, culture, educational, fishing, 4WD etc.

Low Volume High Yield

Medium Growth

• Focused editorials/news features • Special interest group packages • Promotion and publicity events • Trade marketing (famils) • 4X4 shows, 4X4 Australia Magazine • Destination Management Companies

25%

4.3.3 International Markets Backpackers, Britz, campervans

Low Volume Medium-High Yield Potential Growth

• Transport operators (bus tour/ coach companies)

• TNT Magazine • Specialist features • World wide workers etc

10%

4.3.4 Visiting Friends and Relatives (VFR) and Events

Medium Volume Low-Medium Yield

Low Growth

• Events Calendar • Local community education • Schools programs • Community organisations • Friend to friend marketing

10%

NOTE: The marketing activities should have three core goals: • To maintain and build awareness of Mount Isa • To stimulate a desire to travel to the North West • To nurture and grow new niche and high value market segments



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5.0 MARKETING PLAN (* = PRIORITY ACTIONS)

ACTION WHO TIMING

5.1 *

Destination Identity and Branding • The current range of advertising and images used to promote Mount Isa are tired

and need to be refreshed. • There is a need to develop a stronger destination identity. As part of this process a

branding and style guide needs to be prepared and implemented across all marketing collateral (brochures, websites, press advertising, outdoor billboards, promotional displays etc.)

• This work will need to be undertaken under the umbrella of the new economic development organisation .

• The selection of photographic images of Mount Isa and the region is important. It is timely to undertake a dedicated photo shoot and to select images that demonstrate the unique strengths and activity sets of the destination. (A number of photo shoots have been completed over the past three years.)

• Mount Isa

Enterprise (MIE) • Tourism

Queensland (TQ) • Outback

Queensland Tourism Association (OQTA)

• Mount Isa Tourism Association (MITA)

Immediate – by November 2007. Implementation to be 2007/2008.

5.2 *

Annual Marketing Plan • An annual marketing plan needs to be prepared. As a starting point OQTA has

developed a comprehensive Cooperative Marketing Plan. This plan provides access to TQ’s media buying rates and creates synergies by placing advertisements in Queensland’s Outback features.

• The plan provides a sound platform to guide media and marketing activity in 2007.

• MIE • MITA • OQTA • MICC • Operators

By June 2007

to launch with new

organisation

5.3 *

Australian Tourism Data Warehouse (ATDW) • Take advantage of the free listings of events, natural attractions and non-profit

attractions to maximise exposure for the region (eg Lake Moondarra, Tent House, City Lookout etc).

• Encourage and assist local tourism businesses to subscribe to the ATDW. As part of the QTS, subscription fees will be 100% subsidised in 07/08, 50% in 08/09 and 30% in 09/10. Excellent opportunity for operators to get into the online environment – just need guidance and assistance from MIE/MITA to subsidise.

• MIE • MICC • ATDW

Immediate 2006/2007



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5.4 *

Book Outback • Encourage and assist local tourism businesses in Mount Isa to subscribe to Book

Outback, a new service provided by OQTA. Book Outback will enable global distribution through online channels, as well as provide an e-commerce solution and reservation system for tourism businesses.

• From an industry development perspective, MIE/MICC/MITA could consider subsidising the registration fee for Book Outback to facilitate trial and increase uptake from local operators.

• MIE • MICC • OQTA • Operators • MITA • TQ

2006/2007

5.5 Packaging (key opportunities discussed under new product development) • Develop a range of Mount Isa packages for on-selling through traditional and online

channels. • Develop a range of regional packages for on-selling through traditional and online

channels. • Develop special interest and niche packages for on-selling (eg fishing, education,

paleo-tourism etc).

• Operators • MICC • MITA • OQTA • TQ

2007/2008 Ongoing

5.6 Regional Linkages • Take a key leadership and coordination role in the North West OQTA committee and

its development and marketing activities. • Support the role of the Overlander’s Way committee and its development and

marketing activities. A new marketing plan has just been prepared. This plan provides immediate activities for buy-in from Mount Isa.

• Consider linking with Australia’s Dinosaur Trail and its development and marketing activities.

• Consider representation on the OQTA Board. (If Mount Isa is to become a driving force in Outback tourism it must take a more proactive role with OQTA.)

• MITA • NWQTA • Overlanders Way

Committee • Australia’s

Dinosaur Trail • OQTA

2007/Ongoing

5.7 Events • Establish an events working group under the coordination of MICC/MITA/MIE • Take advantage of ongoing free subscriptions for events on ATDW. • Submit all event dates to OQTA for inclusion in annual events calendar. • Advertise key events in the OQTA Outback Events brochure (new). • Develop an annual events calendar for Mount Isa (align regional and local event

marketing).

• MITA • MIE • MICC • OQTA • Events C’ttee

2007/Ongoing

5.8 Media • Work with TQ and OQTA to actively foster media/industry famils to the City. • Become involved with OQTA’s media personnel for the distribution of media releases. • Host media famils, including sponsorship of travel, accommodation and meals.

These activities can be shared across the North West.

• TQ • MITA • MIE

2007/Ongoing



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• MICC • OQTA

5.9 Community Awareness • Develop and implement a community tourism awareness campaign. • Encourage residents to sell the region to visiting friends and relatives. • A visitor kit for the city should be prepared for this purpose.

• TQ • OQTA • MITA • MIE • MICC

2007/Ongoing

5.10 Research • Develop a dedicated research program with TQ/OQTA/North West Group to monitor

the effectiveness of all marketing initiatives and to monitor visitor satisfaction throughout the North West and Mount Isa. The Overlander’s Way Committee has already established some initiatives which can assist and value-add to this issue.

• TQ • OQTA • MITA • Overlanders • Outback@Isa

2007/Ongoing

5.11 Industry Awareness • Initiate industry familiarisation programs to include local operators to better

understand the range of activities and variety of visitor experiences available. Establish a local commissionable sales system to provide an incentive for cross-selling. Outback at Isa has worked hard in recent times to foster industry and trade evenings. More support needs to be provided to these events.

• Outback@Isa • Operators • MICC

2007/Ongoing



6.0 PRODUCT DEVELOPMENT 6.1 Background Product refers to all of the services, infrastructure, facilities and experiences that are aimed at visitors to enhance their visit to a destination. It includes those provided by government and the private sector. There are a range of broad product elements, which need to be considered.

These include: • Attractions (can be man made or natural) • Amenities (accommodation, visitor services, including visitor information centres) • Activities (things to do and see) • Access (transport, including quality of roads) • Service (hospitality and friendliness, etc) • Visitor themes (heritage, bioregions etc) • Sense of place (the look and feel of a destination) Product development is a way of ensuring that Mount Isa is relevant to the needs of today’s visitors and that there is knowledge and information available to both government and industry on the trends and potential changes to visitors’ needs and behaviour in the future.



7.0 PRODUCT DEVELOPMENT PLAN (* = PRIORITY ACTION)

ACTION WHO TIMING

7.1

*

Drive Routes • More work is needed to develop 1, 2 and 3 day self-drive touring loops across the

city and surrounding country. The linking and selling of heritage trail circuits, 4WD circuits, bush walking and trekking options (eg round Lake Moondarra) needs to be prepared.

• Road maps are needed, as are user friendly guides on bush walking, birdwatching etc.

• Drive links to the Gulf Savannah, Cloncurry, Boulia, Dajarra, Quamby, Kajabbi, Lake Julius, Gunpowder and Camooweal/Adels Grove all need to be actively presented. These loops should feature in 4WD guides such as OQTA’s brochure “Check Out Queensland’s Outback”. They are missing at present.

• Main Roads • MICC • MITA • OQTA • Overlander’s Way • NW Action Group

2007

Onwards

7.2 Tour Themes • There is an opportunity to develop self guided tour themes which can be promoted

to special interest markets. (It is acknowledged that some of these options have been trialled with varying levels of success over the past three years). Key themes include:

o Indigenous culture (indigenous sites and information, bush tucker and skills), history of the Kalkadoons and Battle Mountain, links with Kalkadoon Interpretative Centre.

o Natural attractions including Sellwyn Ranges, Lake Julius, Lawn Hill, Lake Moondarra, Gregory River and Riversleigh.

o Day trips, tours and loops including: Camooweal/caves, Riversleigh, Lawn Hill, Kajabbi, Cloncurry District, Duchess, Quamby, Gregory Downs.

o Historic pubs/hotels circuit including Kajabbi and Quamby. o 4WD circuits o Fossicking tours (Maltese crosses etc, particularly around Cloncurry) o Bush culture, Royal Flying Doctor Service, School of the Air, Mount Isa

Rodeo o Fresh water fishing sites etc. o Arts/craft (paper products).

• Operators • MITA • State Develop-

ment • Indigenous

Groups • NPWS • Outback@Isa

2007/2008 Ongoing



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7.3 Interpretation and Vantage Points • Safe stopping points and interpretation/vantage points are needed for visitors both

within and outside the City. This includes: o Safe stopping points on the roads to Cloncurry/Boulia/Camooweal. o Day and night interpretive platforms at the City Lookout and Ray

Donaldson Lookout. o Scenic/geographical sites in the Sellwyn Ranges (eg lookouts, rest areas) o Interpretive walkways to sites such as Painted Rocks and the Cascades o Opportunities exist to further develop ecotourism/nature-based activities

at Lawn Hill Gorge, Lake Julius, Lake Moondarra, Riversleigh Fossil Fields and Adels Grove. (Adels Grove will become a major tourism activity point in the City/region. More thought will need to be given to how the city can promote the services of this site to key drive tourism and special interest markets).

• MICC • MITA • MRD • Overlanders Way • TQ • Adels Grove

2007/2008 Ongoing

7.4

*

Fly/Rail Packages • Mount Isa has excellent rail, road and aviation access. There are opportunities to

work with Queensland Rail, airlines and hire car companies to develop fly drive or rail/drive packages. These packages could link Townsville, Mount Isa and Longreach.

• OQTA • TQ • QR • Qantas • Operators

2006/2007

7.5 Special Interest Tourism • There are exciting options to develop paleo-tourism and eco-tourism touring

packages. This included opportunities to directly link with the excellent work already undertaken to prepare Australia’s Dinosaur Trail (Richmond/Winton/Hughenden). Mount Isa has the Riversleigh Fossil Fields and extensive gemstone fields. Around Cloncurry visitors can access amethystine, quartz, amethyst, alluvial gold and Maltese crosses.

• Mount Isa needs to emphasise its role as a key visitor hub for tours to the surrounding region.

• Operators • MITA

2007/Ongoing



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7.6 Other new product ideas identified during discussions with industry and government representatives for this project include:

• A new motor-sport facility on the outskirts of the City area. It is understood that a proposal for a raceway similar to the Willowbank Raceway in Ipswich, is being examined. Such a facility has the potential to offer entertainment for young people and families as well as to be part of a national circuit for top-class dragsters which feature at race meetings around the country

• A recreational precinct along the banks of the Leichhardt River in the centre of the City. The development of such a precinct and the associated landscaping and pathways would be a major enhancement to the appeal and usability of the central city area for people of all ages. There are good examples of how similar precincts such as Southbank on the Brisbane River, have transformed central city areas and provided additional benefits and enjoyment for local residents and visitors alike

• Activities on Lake Moondarra. These could include cruise boats offering a scenic experience or featuring the native wildlife and birds on and around the lake. Suitable jetty facilities could also be provided. Such activities would support the existing annual fishing competition which is a popular event for locals and visitors

• Support for the production of outback films. Mount Isa has the equipment and infrastructure which would be required to support film crews. There are few other Outback cities where such equipment, services and facilities are available

• New-style camping facilities in key locations to accommodate the new up-market retired Baby-boomers and their vans and motor-homes

• City beautification projects, including general tree planting to provide visual appeal and shade along streets in the City and along entrances to the City

• New accommodation – including new and more flexible designs to provide more light and space (compared to the 1970s motel style)

• Multiple

stakeholders • More work

needed here to develop business plans for each product opportunity

2007/2008 Ongoing



8.0 Investment and Planning 8.1 Background There are numerous opportunities for new projects which could enhance tourism in the Isa. Many of these will require individual assessments as to their viability and practicality. Some criteria should be set to determine the support for development of new product. Ideally, any new product should do one or more of the following: • Increase the potential visitor numbers or the quality of visitors (higher spending) • Contribute to the desired image and positioning of the Isa as a tourism destination –

i.e. be consistent with and add value to what is already in place or to be a catalyst to take the destination to a new and agreed position

• Provide benefits to the local community in addition to visitors • Be economically and environmentally sustainable • Be an addition to the destination’s competitive strengths (rather than just another

product)



8.0 INVESTMENT AND PLANNING PLAN (* = PRIORITY ACTION)

ACTION WHO TIMING

8.1

*

Accommodation • There are opportunities to improve and increase accommodation options for certain

markets such as backpackers and special interest markets who are interested in home stays, hostels, bed and breakfast opportunities and camping sites (caravans and motor homes). Anecdotal evidence from workshops indicates a seasonal shortage of accommodation within Mount Isa across a variety of accommodation types and this view has been supported by survey responses. There is an opportunity to develop new accommodation as part of the redevelopment of the airport precinct together with the Buchanan Park Complex.

• There is a need to undertake a supply and demand model of Mount Isa (TARDIS) to demonstrate to investors the returns available from investing in this marketplace. Mount Isa prepared a TARDIS model some five years ago and this model needs to be revisited. (TARDIS=Tourism Accommodation Regional Demand Investment and Supply Model)

• MITA • TARDIS • TQ • MICC

2007/2008 Ongoing

8.2

*

Recreation • A review of Recreation management of R48 in the Mount Isa City Council Operational

Plan 06-07 has made a number of recommendations and priorities for action at the Lake Moondarra Recreation Area. Rob Tong has also recently been commissioned to prepare a tourism plan for this reserve. This report supports the draft recommendations coming out of this recent work concerning the expansion of tourism products, services and infrastructure at the Lake consistent with the Recreational Management Strategy for the site. Lake Moondarra is a major tourism asset for both the local community and visitor markets. It is a priority product development opportunity.

• Opportunities include: walking, hiking tracks, horse riding, physical challenges, ropes activities, camping, lake cruise, fishing, charter service, special events (fishing, sports etc), 4WD tour operation, caravan park facility, youth camp, improved service areas.

• Water Board • MICC • Operators • State Develop-

ment • MITA

2007-2015 Ongoing



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8.3 *

Buchanan Park Complex • The Buchanan Park Complex will herald a new era for special event management in

the City. The project will include a new arena/stadium to host the rodeo as well as large scale events such as entertainment concerts, mining expos, sports carnivals etc. The rodeo stadium and arena is expected to be completed in early 2007 and the pavilion and club facilities completed by mid 2007. The site has the opportunity to host motor home jamborees and spillover camping and caravan park facilities. The number and size of events to be staged will have a significant impact on visitor numbers and accommodation demand across the city. Key actions include:

o Integrated marketing and events strategy will need to be prepared o Business plan needed to guide events management within the site and

across the City

• MICC • Buchanan Park

Complex • Events Groups

2007/Ongoing

8.4 Community and Business Awareness • There is limited community and business awareness of the economic and social

benefits of the tourism industry to Mount Isa. This issue is addressed at length in Section 6 of this report. It is recommended that a dedicated report be put together to document tourism’s contribution to the ongoing economic health of Mount Isa.

• It is recommended that current models such as TARDIS and TIM (section 13.2) and recent work by Queensland Treasury and the CRC for Sustainable Tourism be examined to assess the economic value of Tourism to Mount Isa. Once this is complete a community and public awareness program needs to be developed to spread the tourism message. Key partners and stakeholders include local schools, local service associations, Chamber of Commerce and Local Authority.

• MITA • OQTA • TQ • Schools • TAFE • Chamber of

Commerce • STCRC

2007/Ongoing

Study to be prepared late 2007



80

8.5 Visitor Services • As visitor markets continue to mature, so do expectations about the quality of visitor

services. Good customer relations, helpful attitudes and service skills need to be fostered. It is recommended that:

o Mount Isa supports the work by OQTA, and QTIC to expand the Aussie Host Customer Service Program into regional Queensland.

o Develop a customer service program of monitoring and collecting customer feedback at key attractions throughout the city (eg Outback@Isa). Feedback forms need to be collated and reviewed at regular intervals. (The Overlander’s Way Group has worked on this issue.)

o Assist with the introduction and delivery of external product development and customer service programs being introduced by OQTA, TQ and QTIC.

o Support and participate in current operator and industry accreditation schemes and coordinate the development of these programs with local operators.

o Conduct best practice workshops with OQTA, MICC and TQ for booking technology, customer relationship programs etc.

• MICC • Operators • QTIC • TQ • OQTA • Overlanders Way • North West

Action Group

2007 Ongoing

8.6 Character and Style The City needs to maintain and promote development of a character and style that is user friendly for both residents and visitors. Key issues include clean toilets, convenient and safe rest areas and parking for visitors, clean and clear road signage. The sense of arrival to the City, landscaping and street design policies all play a key part in destination appearance.

• MICC

Ongoing



APPENDIX B – A NEW TOURISM MODEL (MODEL 1) AND AN AMALGAMATED MODEL FOR TOURISM & BUSINESS (MODEL 2)

The following models were developed as options for the future of Mount Isa tourism, but were considered to be inferior to the recommended model contained in the body of this report– Chapter 11.1. A new tourism model – model 1 MICC wishes to take a less active role whilst still being supportive of tourism. This leaves MITA as the organisation to take up the reigns of leadership and coordination. To do so it needs additional funding to enable it to employ at least one tourism marketing and development officer. Ideally an assistant based in the office to provide support is also needed for the tourism officer to have a better chance at being effective. The existing MITA constitution is appropriate to enable it to expand to fulfill a more active role and employ staff. It is noted that the Association Committee shall consist of seven people, all of whom have to be residents of Mount Isa. Consideration could be given to an amendment to allow the Committee to appoint one or two additional committee members each year from within or outside the region to supplement the committee’s skills and experience. The structure of a more active MITA would look like:

This option keeps tourism as a stand-alone industry sector in Mount Isa. It assumes that sufficient funds can be raised from MICC and membership to enable MITA to undertake a leadership and coordination role for advertising and promotion of Mount Isa and in addressing other industry issues. It also assumes that experienced committee members are available and willing to provide the leadership and direction for tourism. In addition to advertising and promotion, resources would also need to be committed to recruiting and servicing a larger base of members. The role and functions of MITA under this model would include:

• Leadership for tourism in Mount Isa (within the City and in outside forums and meetings)

• Coordination of all advertising and promotion (liaison with OQTA, Overlander’s Way, etc.)



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• Raising the profile of tourism in the Isa (communication to local residents and businesses)

• Attracting increased membership (from tourism operators and from the general business community)

• Developing and maintaining relationships with key stakeholders (MICC, OQTA, etc.)

• Providing information on tourism to operators and members (market intelligence, promotional opportunities, strategic opportunities, etc.)

It is estimated that the budget required to enable a modest level of operations for this model is: New MITA Estimated Budget

Staff costs (1.5 persons) 100,000 Office rent (including power) 15,000 Motor vehicle costs 20,000 Communication costs (phone, internet)

3,000

Office consumables 4,000 Advertising and promotions 10,000 Travel costs 20,000 Total (per year) $172,000

An annual budget of around $172,000 would be reliant on substantial financial support from MICC and some of the larger businesses. Current membership income is $7,000 and an optimistic estimation of an expected membership income from an expanded body would still be less than $20,000. Based on information to hand in preparing this report, it is unlikely that this level of funding can be raised and sustained. By sharing an office space at little cost or having office space ‘donated’, and by only employing a tourism Manager, additional funding of around $120,000 would be required. This will need to come from MICC and other corporate sponsors to make it possible. Under this model, MITA would be competing for membership with the Chamber of Commerce. Many of the local businesses that are not entirely dependant on tourism would also be members or targeted members of the Chamber. It is unknown to what extent local businesses would support two local industry bodies. The features and benefits of this model are:

• One single, dedicated point of contact for tourism • A regular and on-going tourism resource to coordinate and stimulate tourism

for Mount Isa • A higher profile for tourism both within the City and outside • Increased opportunities for advertising and promotion • Increased opportunities for industry improvement – training, market

intelligence, product development, etc The biggest weakness of this model is the absolute reliance on MICC, corporate sponsors and additional members’ funding to make it happen. The tourism industry is simply not big enough to fund this model from within its own resources. If was felt by all the key stakeholders that this is the preferable model for tourism and that it is achievable, it could be implemented without delay. From a Mount Isa strategic viewpoint, a stronger and more effective tourism organisation would be a positive outcome. For the maximum benefits to be realised for the economic development of the



83

City overall, it would be necessary for there to be a strong and cooperative working relationship with the Chamber of Commerce, the MICC and others. This model would maintain the current situation of two separate private sector business and tourism organisations with little collaboration or synergies. An amalgamated model for tourism and business – model 2 This option takes the previous option one step further. It proposes a merger between MITA and the Chamber of Commerce to form one new entity to focus on Chamber of Commerce activities and tourism. It would maximise operational efficiencies and attract the highest level of talent, skills and experience to one Committee. This model flows from an appreciation of a number of current challenges:

• that there is a shortage of skilled and experienced people in the City who are prepared to devote the time and energies to serving on committees and providing leadership and direction

• that both the Chamber and tourism are hampered in their abilities to realise the potential for the City and their members due to insufficient resources

• that merging the two organisations and sharing premises and facilities, whilst retaining two core activity streams, would have efficiency gains all round

For the purposes of this report, this model has been called the Mount Isa Enterprise model and would look like:

This model proposes that Mount Isa Development would have one committee setting general policies and direction for both business (the Chamber) and tourism. It would comprise general business and tourism representatives. Beneath this committee, there could be two sub-committees; one for Chamber of Commerce and one for tourism. There is no upgrade to Chamber staff or capabilities proposed, however tourism resources would be increased by the appointment of a full time tourism Manager.



84

Shared administration staff of two or three people, based on the current Chamber staff, would support all activities. The roles and functions of Mount Isa Development would include those currently applicable for the Chamber and as outlined in model 1 for tourism. The main features and benefits of this model are:

• One committee to focus on the development of the City including business and tourism, thereby taking advantage of the best available skills and experience in the City

• An increase in the capacity and resources for tourism • An increase in efficiency for Chamber of Commerce • No competition for membership between the Chamber and tourism • One business organisation for the City for people within and outside the

region to deal with • Tourism branding and promotional creative application could also flow over

into general business development and attraction activities presenting one united message and image for the City

In addition to the current Chamber of Commerce budget and existing MITA funds, it is estimated an additional $120,000 would be required for the operation of this model - the same amount as for model 1. However, it is also envisaged that both the MICC and the larger corporate bodies would find this model more attractive and therefore it is assumed that MICC and corporate financial support would increase to offset the additional costs of operations. As such, this model has a greater chance of success than model 1, however there is a greater degree of difficulty in creating and implementing it which will require a more cohesive and dedicated approach by both business and tourism supporters. The implementation of this model would require planning and cooperation by both MITA and the Chamber and would most likely necessitate special general meetings or the next annual general meetings for approval. If this is the preferred model, it is suggested that a joint working party comprising the Chairman and Deputy Chairman of each organisation be formed to plan the merger and develop an initial business plan for the new organisation. Whilst model 2 provides for a united approach to business and tourism development, it is still limited in what can be achieved due to a reliance on mainly volunteer Chamber committee members and tourism committee members and limited staff – all with few financial resources.



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APPENDIX C – FEEDBACK FROM CONSULTATION MEETINGS

In the various individual meetings with stakeholders conducted for this project, comments were sought on various issues and stakeholders also had the opportunity to raise issues of their own. A summary of the feedback follows: Note: “*” indicates 2-3 separate responses providing the same feedback. “**” indicates 4 or more separate responses providing the same feedback 1. HOW EFFECTIVE IS TOURISM PROMOTION AND DEVELOPMENT FOR MOUNT

ISA IN YOUR OPINION? • Not really effective ** • On a par with other Outback towns • What has been done by MICC has been well executed • Insufficient budget to make a difference 1.1 What really works? What do you like? • Outback at Isa - Hard Times Mine • Streetscaping improvements by MICC have improved the look of the town • OQTA works well for the region, including Mount Isa – should have a representative

on the road meeting with operators more often * • Overlander’s Way promotions by MICC seem to have been effective* • The miners “uniform” worn by Mount Isa representatives at trade and consumer

shows – this really makes an impact and is different • MICC has done a great job of leading and coordinating tourism to date 1.2 What is not working? What don’t you like? • No single contact point within Council – no dedicated tourism officer** • Lake Moondarra is under-utilised • There is a lack of leadership in tourism** • Caravans have very few places to park in town* • There is a lack of public toilets in town* • There is not a lot of private investment in infrastructure (for tourism)* • insufficient infrastructure (accommodation) and competition between mining &

tourism for what is available* • many shops and attractions closed on weekends* • land rights are preventing land availability for investment • Council doesn’t appear to be proactive in solving the land availability problems • Delays in building approvals are too long • There is no real appreciation of the role and effectiveness of OQTA in Mount Isa –

possibly due to lack of one dedicated tourism person to maintain an effective relationship*

• Visitors need more things to do and see* • There is confusion over what MICC and MITA should do – MICC have unrealistic

expectations of what MITA can do with few resources • A lack of consistency and not working strongly enough with neighbouring towns



86

• There needs to be a realisation by council of the impact of their fees and charges (e.g. headworks charges) on new infrastructure development (e.g. caravan parks) and the role of council in attracting new investment to further stimulate the economy

• Mount Isa is not hungry for tourism. Mount Isa is a mining town.* 2. IN RELATION TO TOURISM MARKETING FOR MOUNT ISA, WHAT HAVE THE

MAIN MESSAGES BEEN? WHAT HAS BEEN THE BRAND OR IMAGE THAT MOUNT ISA HAS BEEN ATTEMPTING TO PROMOTE TO POTENTIAL VISITORS?

• The Rodeo Capital of Australia • You’re not a real Aussie till you’ve been to the Isa • There is no one image – it is muddled* 2.1 Has it worked as well as it should have? If not, why? What else is needed? • None have really worked** • If ‘Rodeo Capital’ is to be the theme, there needs to be rodeo-type activities every

month (during the season) for visitors to experience* • Rodeo is not a true reflection of Mount Isa • Mining and the history of mining should be the main theme for the Isa** • There has not been sufficient follow-up or support to make any ‘image’ known and

successful • There is no real understanding of who is visiting Mount Isa or which markets and

market segments should be targeted in the future 2.2 What do you think consumers’ perceptions are of Mount Isa as a place to visit? • Visitors see it as somewhere to break their journey for two days • Visitors see it as a mining town • Local residents see Mount Isa as a mining town – tourism is not considered 3. WHO/WHAT HAS BEEN THE DRIVING FORCE BEHIND THE MARKETING AND

DEVELOPMENT OF TOURISM IN MOUNT ISA? • MICC ** • OQTA* 3.1 Has this been successful? - If yes, why? If not, why not? • No • There is no one ‘shining example’ for tourism in the Isa (for others to emulate) • MICC has done a fairly good job* • Council’s attitude to tourism is not always positive and helpful • There is no leadership or strategic direction for tourism (or for economic development

in general)** • There are no ‘champions’ pushing tourism in the local community** • There is no dedicated tourism resource (person)** • There needs to be absolute transparency in the operation of the Visitor Information

Centre at Outback at Isa to ensure fairness to all operators and attractions*



87

• Council will always need to be supportive of tourism but other funding needs to be forthcoming as well*

3.2 What is the best model for the future that involves all stakeholders? … and why? • A full-time tourism person is needed to coordinate industry and activities and provide

a single point of contact** • Need for Council, tourism industry and the general business community to work

together** • A structure and a strategy (vision) that will unite and motivate everyone* • A well resourced and supported local tourism organisation – with a strong relationship

with OQTA to provide links and opportunities to Tourism Queensland and Tourism Australia**

• Unity with Chamber of Commerce – there are insufficient resources and people to lead and support different organisations**

• A model in which all local citizens are enthusiastic tourism ambassadors • A Mount Isa Enterprise organisation – focusing on strategic issues relating to

economic development and encompassing both Chamber of Commerce and MITA** • A model that will attract the support and active involvement of the “big players’ in

town** • An organisation that has the resources and skills to address strategic economic

development issues for the Isa** • One where the top business leaders in town (outside of tourism) understand tourism

and are actively supportive of tourism and are public spokespeople for tourism (given the right model, many are prepared to do this)

• A model that just includes the private sector tourism operators won’t work – insufficient resources**

3.3 Have the private sector tourism operators been sufficiently involved in the overall management of tourism for Mount Isa? If not, what should be done in the future? • MITA need more support – have no resources to do anything** • The functions and operations of Councils are not conducive to encouraging private

sector participation in activities 4. IS FUNDING FOR TOURISM DEVELOPMENT AND MARKETING SUFFICIENT? • No** 4.1 If not, how much additional funding is required and how should it be spent? • Sufficient to employ and support a full time person** • Dedicated marketing dollars are needed to promote the city. 4.2 How should funding be maximised from both public and private sources? - and what are these sources? • Attract big business and provide a structure that Council, State Government and

business will support** • Introduce a differentiated rate or tourism levy



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5.0 WHAT TARGETS SHOULD BE SET FOR TOURISM IN MOUNT ISA FOR THE

NEXT 10 YEARS?

• A strong and positive tourism image for Mount Isa is important to attract miners to the town

• Tourism should provide additional variety of jobs (to mining) and provide opportunities for miners’ partners and children

• Tourism should improve the lifestyle for locals • More focus on yield rather than visitor numbers • Less seasonality • A broader mix of visitor markets 6. ARE YOU SATISFIED WITH THE OVERALL MANAGEMENT OF TOURISM

DEVELOPMENT AND MARKETING FOR MOUNT ISA? IF YES, WHY? IF NO, WHY NOT?

• Most businesses are too busy (from mining) to be concerned with tourism** • There is not enough ‘hunger’ in town to focus on tourism** - including Council* 7. IS TOURISM WELL UNDERSTOOD BY GOVERNMENT (ALL LEVELS) AND THE

LOCAL COMMUNITY? IF SO, WHY? IF NOT, WHAT SHOULD BE DONE AND BY WHOM?

• Tourism not well understood by local businesses or community** • No – there is a need for an education campaign on tourism to the local community** • Tourism education of the community needs to start in schools

8. ANY OTHER COMMENTS? • There are problems in getting land for new developments (accommodation)* • RFDS about to undertake improvements to visitor attractions and facilities on base • Change is needed and care needs to be taken to address all the individual concerns of

those affected – “What’s in it for me?” • No overall strategic direction for Mount Isa** • Mount Isa needs more product (attractions/infrastructure/experiences) to

differentiate it from the rest of the Outback* • Tourism needs to be talked up and the profile of the industry lifted • The grey nomad segment is expanding to include additional elements which require

different products/experiences. Mount Isa needs to consider what new facilities and services are needed to attract new travellers.



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APPENDIX D - CASE STUDIES OF SIMILAR ECONOMIC DEVELOPMENT (INCLUDING TOURISM) ORGANISATIONS IN OTHER REGIONS

1.0 INTRODUCTION The following organisations were selected as case studies for this report: • Gladstone Area Promotion and Development Ltd • Townsville Enterprise The features of all these organisations are: • They have a proactive and strategic approach to achieving increased economic

development for their cities • They represent both the general business community and tourism • They are partnerships of Local, State and Commonwealth governments and the

private sector • They are prominent and increase the profiles of their cities • They use existing skills and resources as effectively as possible 1.1 Gladstone Area Promotion and Development Limited (GAPDL)

In its 2005/6 Business Plan, GAPDL indicates that annual income will be $950,000 with expenditure of $910,000. There are 11 full-time and 1 part-time staff employed. The plan lists the main functions of the organisation as: • Tourism Marketing • Visitor Information Centre operations • Economic Development • Event Development • Business Promotion • Other projects, e.g. employment opportunities and product development The broad objectives of the organisation are: • Promoting the region as a place for living, visiting and investing • Generating a favourable regional climate for investment • Coordinating potential investment opportunities and developments • Liaison with industry on processing and manufacturing opportunities • Enhancing the tourism industry through marketing and promotion • Seeking expansion of tourism attractions and services in the region • Providing accurate and timely information • Development of events and conferences within the region • Monitoring community issues related to development and tourism • Encouraging a unified approach within the community GAPDL is a Regional Tourism Organisation and receives some funding each year under an agreement with Tourism Queensland. Department of State Development funds the employment of an Economic Development Manager. Grant funding is sourced from DOTARS and FACSIA to implement economic and employment generating initiatives. An administration charge is made against this funding and is used for administration of the organisation.



90

The organisational structure and each employee of GAPDL as at October 2005 are listed below.

BOARD OF DIRECTORS

Chief Executive Officer

Economic Development

Manager

Tourism & Events

Marketing Manager

Corporate Communications & Projects Officer

Communities for Children Project

Manager

Member Services Officer

Corporate Services

Manager

Executive Assistant

Administration Assistant

Marketing Assistant

Gladstone Vic

Manager

School Based Tourism Trainee

Miriam Vale Centre

Coordinator

Tannum Sands Centre

Coordinator

Agnes Water VIC Coordinator

Source: GAPDL, 23rd Annual Report 2005/6 1.2 Townsville Enterprise Economic Development Townsville Enterprise is the primary development, marketing and promotional organisation for the North Queensland region, which includes the Shires of Burdekin, Cardwell, Dalrymple and Hinchinbrook, and the cities of Charters Towers, Thuringowa and Townsville. It is a membership-based organisation, with 8 major partners and over 600 members, representing both large and small business, government departments and individuals. The entity consists of approximately twenty staff positions, five of which are allocated to tourism development. The organisation’s focus is the identification and development of opportunities and initiatives to drive ongoing and sustainable economic development in the region. The main functions of the tourism marketing team are:

• Economic Development • Leisure Tourism (Marketing) • Conventions and Events (Business Tourism) • Corporate Relations • Administration

The broad objectives of the organisation are: • identify key infrastructure requirements and lobby for their development • promote North Queensland as an investment destination • undertake specific projects and initiatives to assist the economic development of all

industry sectors • provide relevant data and market intelligence to stakeholders and business members



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• liaise with all levels of government and their agencies • act as the peak development authority and point-of-contact for inquiries into the

region's economic development.

TEL receives funding from the following organisations, as well as five regional Councils and a large number of corporate and small business sponsors:

Principal Sponsors

• Townsville City Council • Tourism Queensland • Department of State Development, Trade and Innovation

Major Sponsors • NQ Water • Ergon Energy • Thuringowah City Council • Australian Airports (Townsville) • Townsville Port Authority

Gold Members • BHP Cannington • Macquarie Regional Radioworks • North Queensland Newspapers • NQX Freight System • QNI Yabulu Refinery • Seven Queensland • Sun Metals • WIN Television Network

Silver Members • Jupiters Townsville Hotel and Casino • PricewaterhouseCoopers • Xstrata Copper

Bronze Members • Australian Institute of Marine Science • Geoff Pickering Motors • James Cook University • Macair Airlines • Maunsell Australia • Mike Carney Motors • Parry Nissan/Suzuki • Reana Developments • Roberts Nehmer McKee • Skytrans Airlines • Telstra Country Wide • Tony Ireland Holden



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The organisational structure and general responsibilities of each employee of Townsville Enterprise as per the 2004/5 Annual Report is listed below.

BOARD OF DIRECTORS

Tourism Advisory

Committee

Finance

Committee

Membership Committee

Regional Economic Development Group

Chief Executive Officer

Tourism Manager

Conventions and Events Manager

Finance Admin

Manager

Regional

Development Manager

Corporate

Relations Manager

• Information Centre Coordinator

• Visitor Services Coordinator

• Marketing Coordinator

• International

• Sales and Marketing Coordinator

• Reception /Admin

• Accounts Officer

• Project Coordinator x 2

• Project Manager • Senior Project

Manager

• Membership Services Coordinator

• Media and Communic’n

• Coordinator

Source: Townsville Enterprise Limited Annual Report 2004/5



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APPENDIX E – LIST OF EXISTING ACCOMMODATION, ATTRACTIONS AND EVENTS

From information gathered during this project from brochures and websites, the stock of accommodation, attractions and events for Mount Isa is: 1. Accommodation Mount Isa’s online Accommodation Guide lists 19 hotels/motels, six caravan parks (including cabins) and four visitor hostels. (http://www.mountisa.qld.gov.au/tourism/accommodation/accommodation.html ) Hotels/Motels

• Abacus Motel • Barkly Hotel/Motel • Boomerang Lodge • Red Earth Hotel • Central Point Motel • Copper City Motel • Copper Gate Motel • Fourth Avenue Motor Inn • Mercure Inn Burke & Wills • Inland Oasis Budget International • Irish Club • Mercure Hotel Verona • Mineral Lodge • Mount Isa Hotel (Flag) • Mercure Inn Outback • Overlander Motel • Silver Star Motel • Townview Motel (Best Western) • Waltons Motor Court

The majority of hotels are rated between 2 to 4 stars. There is no 5 star accommodation in Mount Isa. Caravan Parks and Cabins

• Argylla Caravan Park and Cabins • Copper City Caravan Park and Cabins • Mount Isa Caravan Park • Moondarra Caravan Park • Riverside Caravan Park and Cabins • Sunset Caravan Park and Cabins

Four of the six caravan parks are located within Mount Isa with Argylla and Moondarra being only 2km and 3k from the city centre, respectively. Backpackers/Hostels

• Travellers Haven • QWCA Hostel • Budget Accommodation • Artisans Block and Sleeper



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2. Visitor Attractions • Outback@Isa Explorers Park • Riversleigh Fossil Museum and Tourist Information Centre • Mount Isa Mines • John Middlin Mining Display and Visitors Centre • Frank Aston Rotary Underground Museum • Mount Isa Tent House • Royal Flying Doctor Service Base • School of the Air • City Lookout • Ray Donaldson Memorial Lookout • Lake Moondarra • Kalkadoon Tribal Centre • Lake Julius • World Heritage listed Riversleigh Fossil Field • Visitor Centre and Outback Shop • City Lookout

3. Significant Events

• Gregory River Canoe Races • Barkly Challenge • Mine to Mine Half Marathon • Mount Isa Rodeo • Mount Isa Golf Open • Rock Pop Mime Show • Carpentaria Buffalo Club Lake Moondarra Fishing Classic • Melbourne Cup Day at Mount Isa Race Club



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APPENDIX F - THE RATIONALE FOR GOVERNMENT FUNDING OF TOURISM DESTINATION MARKETING

Tourism makes a large contribution to the economy of many Shires, States and Countries. In many cases, it is one of the main engines of economic growth. Strong tourism performance in a destination is usually associated with strong marketing of that destination. It is usually no coincidence that this is the case. National, State and Local governments in most developed countries are increasingly involved in destination marketing for tourism. This government funding of destination marketing is both necessary and efficient due to the endemic free-rider problem associated with promotion of any tourism destination. Government funding of destination marketing should be seen as an investment, not as a cost. The high rate of return of visitor expenditure to marketing expenditure means that, at an economy-wide level, it can provide very positive returns. The basis of public funding for destination marketing is that a strong market failure exists in this area. Left to itself, the private sector would significantly under-invest in destination promotion. There are two main reasons for the market failure, both caused by the fact that destination marketing has the features of a public good and is therefore susceptible to the free-rider problem. The first is that any private company that promotes a destination is not able to capture many of the benefits that this marketing will bring. Countless other tourism providers will also benefit from this marketing once the visitors have arrived in the destination. They can enjoy the benefits without having to contribute to the costs of advertising and promotion, and thus can free-ride on that company’s investment. In this case, the private returns to marketing are considerably less than the social returns and thus a free-market would under-invest in destination marketing. The second market failure is that many small businesses that benefit from visitor expenditure have no direct incentive to invest in marketing a destination. The reason is that visitors do not come to a destination specifically to consume their goods and services, they just happen to consume them while they are there. This particularly applies to the restaurant and accommodation industries. For example, few visitors come to a destination to specifically eat at a particular restaurant, but many will do so once they are there. Virtually no amount of advertising an individual restaurant will overcome this problem. This is the same for other direct recipients of visitor expenditure such as retail shops, service stations, liquor stores, etc. From an economic point of view, the problem for small service providers is that visitors face a large fixed cost before they consume these services (namely, the costs and time in getting to the destination which often involves travel from interstate or overseas markets). Until a visitor has decided to visit a given destination there is little reason to be interested in particular aspects of, for example, local transport, shopping, or hospitality services. These market failures mean that some form of government intervention will be highly desirable as it will increase the welfare of the local community within the destination. A partial solution used in some industries, such as farming, is for marketing to be funded by a compulsory levy on the industry. This is certainly feasible for farming, but the structure of the tourism industry is such that a collective levy system would prove complicated and impossible to implement in practice.



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As the simplest level, it is difficult to even identify many businesses that benefit either directly or indirectly from tourism expenditure (many businesses service whoever happens to walk past the door, irrespective of whether those people are visitors or locals.) Of those who can be identified, it is difficult to estimate how much they individually benefit from destination marketing as distinct from their own direct marketing. Levies in the farming industry can be linked to easily-identifiable measures of output, but it is hard to measure the volume of tourism services sold. Consequently, a fair and efficient levy system would be extremely difficult to design for tourism. There is no sensible alternative but to fund destination marketing via general rate revenue. In summary, the public good nature of destination marketing leads to a market failure; and this leads the private sector to seriously under-invest in destination marketing; and that leaves government funding as the only practical solution.



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APPENDIX G - CASE STUDY; LOCAL GOVERNMENT NEW ZEALAND TOURISM PARTNERSHIPS

In 2004, Local Government New Zealand (the Association of Local Governments) and the Regional Tourism Organisations of New Zealand jointly developed a recommended Best Practice Guide for Regional Tourism. Local Government New Zealand (LGNZ) also developed a Tourism Strategy (Postcards from Home) which related directly to the national “New Zealand Tourism Strategy 2010”. The vision of the LGNZ’s Tourism Strategy is; “Local government will lead, enable and work in partnership with other stakeholders to ensure a successful and sustainable tourism sector.” The stated Mission of the strategy is; “We are engaged in the tourism sector in order to optimize social, economic, environmental and cultural outcomes for communities through planning for sustainable development, facilitating growth and managing effects.” The strategic aims of the strategy are:

• To provide and manage tourism-related infrastructure in consultation with the private sector and relevant stakeholders

• To engage communities in planning for tourism which is socially, economically, environmentally and culturally sustainable

• To take a lead role in destination management by forming partnerships with key stakeholders

• To facilitate regional tourism marketing and continue with enabling and operational roles in product development

In response to the question, “How are we involved with tourism? – the LGNZ states:

• By statute we, along with the Department of Conservation, are the engine room that drives the planning and management of New Zealand’s natural and cultural resources. Tourism among other industries, relies on having these resources in a healthy state

• We provide the core utilities and infrastructure on which the tourism industry is based. This includes district and city roads, lighting, water and sewerage, public transport systems, signs, airports and ports and attractions such as museums, art galleries, sports stadia, convention centres, parks, gardens, and other amenities

• We enable regional marketing and provide tourism information by being the primary source of funding of Regional Tourism Organisations and the Visitor Information Network”



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APPENDIX H - LOCAL TOURISM FUNDING MECHANISMS

1. Introduction Local government throughout Australia is increasingly playing a more important role in managing and planning for tourism development and supporting tourism marketing activities at local and regional levels. There are a range of different funding mechanisms for regional and local tourism organisations around the world. Eight options are detailed below. It is not unusual for combinations of two or three of these options to be applicable to one organisation at the same time. Local Councils provide a wide range of infrastructure and facilities for local communities and visitors alike and are often one of the larger providers of tourism infrastructure and facilities. In some instances they play an active role in day-to-day tourism operations through the commitment of their own resources on behalf of the industry. Given the economic significance of tourism to a local economy, it is vital that local government has in place clear goals and policies for tourism. This should apply regardless of whether it is directly involved with its own tourism unit or staff taking a coordination role for tourism marketing and development, or whether it supports a private sector led Local Tourism Organisation (LTO) with funding support and an agreement on objectives and performance measures. As indicated previously, tourism makes a significant contribution to Mount Isa’s economy. Tourism is growing and the future prospects are positive for growth to continue, as indicated in the MICC Annual Report 2003-2004. Tourism in the Isa has to date largely relied on MICC resources to provide a coordination role and to some extent, a leadership role. As part of the current study, MICC have requested options for its involvement in the future. Appendix ‘D’ contains a wide variety of case studies on local government funding for tourism in Australia. Appendix ‘E’ provides greater detail on why local government and government generally support tourism, and provides insights into a proactive New Zealand strategy by local government in that country. At one end of a spectrum, there is the New Zealand example – see Appendix ‘F’. Local Government plays a more active role in tourism in New Zealand as State Governments do not exist and the National government does not financially support the operations of regional or local tourism development and marketing organisations. This is an example which illustrates the extent to which local government can be involved; with a clear and precise vision and rationale and in an organised, collective, transparent and active manner. However, in the Australian context, there are other options. None of them will be effective without adequate funding. Local government is one partner in the funding process and in many cases is the most important funding partner.



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2. Funding Options 2.1. Voluntary Industry Funding via Membership Fees Features of this option are:

• It promotes ownership and unity • It demonstrates industry support • It ensures funds are spent wisely • It promotes accountability • Membership usually comprises a high proportion of small operators • There are high service and administration costs • There are often unrealistic expectations of members • Other non-member operators can often also benefit (free rider effect) • As a single funding option, it usually does not provide sufficient funding to market

a destination 2.2 Local Government General Rates Features of this option are:

• It is easy to implement and administer • It is the most common mechanism for local government funding for tourism • The amount of funding for tourism is usually determined on an annual basis as

part of the council budget process and therefore there is less certainty for tourism organisation

2.3 Local Government Differential Rate Tourism Levy Features of this option are:

• It is easy to implement and administer under the current Local Government Act • It is usually applied as a levy on all commercial rates and can be weighted by

categories of use relating to tourism – eg Noosa and Caloundra • Requires the support of the business community • Provides a greater degree of certainty for tourism organisations • Where it is in place, it provides the majority of local tourism funding

2.4 Local Government Benefited Area Levies Features of this option are:

• It is suitable for defined geographic areas where benefits can be clearly demonstrated

• It is not suitable for raising funding for tourism marketing covering broad regional areas

• It is mostly used for shopping malls or defined commercial precincts – eg Brisbane City Mall and Surfers Paradise Central Area

2.5 Local Government Special Rates And Charges Features of this option are:

• The new Local Government Act has now been amended to allow for special rates and charges (section 971)

• It is simple to implement – usually applied for special rural services • It needs adequate consultation • Difficult to get total acceptance by all operators



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2.6 Local Government Pro-Rata (Per Head) Formula Features of this option are:

• It is easy to administer • It is preferred by rural Councils (usually where more than one Council contributes

to one tourism organisation) • It often leads to low levels of total funding, especially for areas of low population

2.7 Funding Through Levies On Infrastructure Features of this option are:

• It is usually applied in relation to airports, entrance charges, etc • It is an accepted practice in many locations (eg Cairns, Whitsundays) • It is a ‘user pays’ methodology • Funding is tied to visitor arrivals • It introduces an administrative cost on the infrastructure operator • Price levels need to be carefully determined

2.8 A Bed Tax Or Accommodation Levy Features of this option are:

• It is similar to a levy on infrastructure • It is an accepted practice in many countries • It is a ‘user pays’ methodology • It is relatively easy to administer • Commercial accommodation is easy to identify • Funding is tied to visitors’ length of stay in a destination • It is seen as inequitable as it places a burden on one industry sector only

(commercial accommodation) • It impacts on accommodation pricing and potentially the price competitiveness of

the destination • It does not meet the needs of the current political climate in Australia following

the introduction of the GST 2.9 Funding Through Business Opportunities Features of this option are:

• Funding is generated through the operation of commercial activities – eg commissions from bookings; sale of merchandise and publications, etc

• It is more suited to destinations with large visitor numbers – eg Gold Coast, Cairns etc

• Funding is tied to visitor flows • It has high management and administration costs • Price levels need to be competitive (and sufficient to ensure viability) • It can compete with existing tourism businesses • In Australia, funding generated through business activities usually make up only

a small proportion of total tourism funding



4. REGIONAL TOURISM FUNDING OPTIONS MATRIX

OPTION STRENGTHS WEAKNESSES COMMENTARY

1. Voluntary industry funding via membership / industry levies / subscriptions

Promotes ownership / unity Demonstrates industry support Ensures funds are spent wisely Promotes accountability

High percentage of small operators High service/administration costs Unrealistic expectations Free rider concerns

An important part of the funding mix which needs to be monitored to ensure that expectations of fee for service are realistic and can be adequately delivered by RTOs.

2. A Bed Tax

Relatively easy to administer Commercial accommodation easy to identify

Inefficient and inequitable Free rider problem Impacts on price competitiveness

Not supported by tourism industry GST was introduced in June 2000

3. Local Government Differential General Rates

Generally easy to implement & administer under current Act, Section 977 Strong support by LGAs in Queensland

Depends on landuse classifications used Needs support of full Council

Supported by most LGAs and is relatively straight forward to implement Ample case studies available

4. Local Government Benefited Area Levies

Suitable for defined geographic areas where benefits can be demonstrated

Not suitable for raising funding for tourism marketing covering broad regional areas

Popular for malls and defined tourism or commercial precincts

5. Local Government Special Rates And Charges Section 971

New Act has now been amended to allow for special rates and charges

Untested as yet for tourism Definitional issues need to be addressed.

Further research needed to determine how water tight new provisions of the Act are to prevent legal challenges. Ample case studies in other states.

6. Local Government Pro Rata (Per Head) Formula

Easy to administer Preferred by rural councils

Can lead to low levels of finance Difficult to trade up where low levels of population exist

Suitable for small rural Shires

7. Funding through Business Opportunities

Visitor Information Centres Central Booking Agent Merchandising etc

Can compete with existing operators Membership vs industry benefits Private sector focus

Business activities are widely used throughout Australian and overseas RTOs to raise funds.

8. Funding through Levies on Infrastructure (Airport charges, tolls, entrance charges etc)

Accepted practice in tourism destinations User pays principle Can be tied to visitor flow patterns

Introduces administrative cost on operator Price levels need to be carefully determined

Precedent exists both within Australian and overseas case studies

Source: Future Directions for Funding Regional Tourism Organisations in Queensland (Sustainable Tourism Services © 2003) Commentary: All of the above models have been, to varying degrees, used throughout Australia.



APPENDIX I - CASE STUDIES FOR A DIFFERENTIAL RATE LEVY

1. Introduction Local Government Authorities in Queensland raise the main part of their revenue from property rates and these are employed to meet the costs of fulfilling the normal functions of Local Government. In general terms, rates are levied by Council on the owners of rateable land – separate rates and charges and utility charges are also available to each Council1. The general rate is levied on the basis of the unimproved value of the land however there are a range of mechanisms in the Act for Councils to adjust how this is applied in particular cases eg Councils can make differential general rates for different classes of land. While the making of other rates and charges is a matter for policy decision, every Council must make a general rate. It can be made either as an across the board general rate or as a differential rate. 2. Differential General Rates Section 965 of the Local Government Act provides that a Local Government may have one general rate over the whole Local Authority or have more than one category and levy a differential rate on each category of land. The purpose of the section is to ensure that all Councils are legally obliged to raise general revenue from their ratepayers for the purpose of discharging their functions. Section 977 of the Local Government Act requires that before a differential rate is levied a Local Government must pass a resolution identifying the different categories and the criteria by which land is to be placed into each category. Tucker (1989)2 notes that application of differential rating processes is straightforward when applied on a geographical basis. Once it is intended to apply to firms engaged in specific industries which may be scattered over many areas, application becomes more problematic. 3. Special Rates and Charges The Queensland Local Government Act was amended in 1999 to, amongst other things, allow Councils greater flexibility to make and levy special rates or charges. The Act specifies: - 971. (1) A local government may make and levy a special rate or charge on rateable land if –

a) The rate or charge is for a service, facility or activity; and

b) In the local government’s opinion –

(i) The land, or the occupier of the land, has or will specially benefit from, or has or will have special access to, the service, facility or activity; or

(ii) The occupier of the land, or the use made or to be made of the land, has, or will, specially contribute to the need for the service, facility or activity,

1 Refer Local Government Act, 1999 2 Tucker, J.D. (1989) Some Revenue Raising Options for Metropolitan Local Governments, in Committee of Inquiry into Valuations and Rating (1989c), annexure 12.



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The Consultation kit3 released by the Queensland Department of Communication and Information, Local Government and Planning advised that the proposed amendments would provide for greater flexibility and transparency in relation to the levying of a special rate by: -

• Requiring a Council to adopt an overall plan and an annual plan if necessary outlining the basis for its decision to levy a special rate or charge;

• The period of time covered by the overall plan may be greater than one year;

• Providing that the works/facilities/services for which a special rate is levied will confer a benefit within a reasonable timeframe; and

• Expanding the scope of activities for which a special rate or charge may be made.

The Bill provided for substantial changes to the way in which special rates and charges are made and levied. The matters particularly changed include: -

• The criteria for the formation of a local government’s opinion;

• The introduction of an overall plan and annual implementation plans;

• Carrying forward unexpected funds from one year to the next; and

• Dealing with land that becomes or ceases to be rateable for special rates and charges.

The Local Government Act commentary prepared by LGAQ4 notes that the amendments to Section 971 subsection (I) (b) now authorises special rates to be made in two (2) separate classes of case where the former provision did not: -

Cases where the object of the expenditure benefits the occupier by reference to the occupier’s particular use of the land – a tourism promotion charge is mentioned in the examples to the new provision as a clear case of something which some Councils sought to do under the former section, and were advised that they could not lawfully do, but which the new powers do enable to be done.

Cases where the object of the expenditure is made necessary by the demands generated by particular activities on particular lands, and it is sought to adopt a more direct “user pays” approach to funding of this expenditure – eg. road charges imposed on sugar industry operators but not other landuse types could not be made as a special rate or charge under the former section.

4. Case Study – Caloundra City Council

Several stages were identified that need to be considered for the introduction and implementation of the Tourism Levy into the current rating process. There are nine stages to the Tourism Levy project that include the following tasks:

Stage 1: Determine guidelines with regards to which properties are to be levied

3 Draft Legislation Proposals Consultation Kit (1999), Queensland Department of Communication and Information, Local Government and Planning 4 Local Government Act Commentary (1999), LGAQ



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• Identification of the properties to be levied • Adoption of ‘Tourism Industry Beneficiaries’ definition • Identification of residential properties that are rented out as holiday accommodation. • Exclusion of vacant land • Application of Tourism Levy on properties where the owners residential address is

the same as postal addresses. • Identification of properties with postal office box address. • Refund process guidelines (statutory declaration). • Identification of rural properties (tourism related only).

Stage 2: Development of Timelines

• Development of timelines that include the whole scope of the project, the

introductory and transitional phase as well as the ongoing tasks once Tourism Levy is implemented in the rating process.

• Application of financial and human resources for the successful implementation of the project.

Stage 3: Tourism Levy assessments and strategy for administration

• Development of a list of assessments according to the determined guidelines. • Design strategy for administration of Tourism Levy rating process, including the issue

of the levy, collection of the levy and on-going management of the levy.

Stage 4: Design of Rating Programs

• Designing, specifying and writing of programs for recording rate codes according to

property type, notations, as well as all other elements that are covered on the list of assessments.

Stage 5: Testing of Programs

• Testing the written programs for accuracy and logic with regards to the developed

rate codes.

Stage 6: Upgrade of Council Searches

• Upgrade of Council searches to reflect Tourism Levy details.

Stage 7: Development of a Communications Strategy

• Provision of general and specific information with regards to the Tourism Levy to the community via the media, radio, Internet and direct and selective mail.

• Provision of general and specific information with regards to the Tourism Levy to all Customer Service Officers and employees in the Council Corporate Rating Services.

• Development of training sessions and communication strategy for Customer Service Officers and employees in the Council Corporate Rating Services for the effective promotion of the Tourism Levy.

Stage 8: Development of Business Process



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• Development of a Business Process for the ongoing administration of the Tourism

Levy. • Development of levy determination guidelines and management process for the

following instances: • New subdivisions or sales of properties that are part of multiple land parcels owned

by one person. • The registration of new plans, such as new units, villas etc. • Change in property ownership through the sale of home units that are previously

recorded for the Tourism Levy, but will not fall within the Tourism Levy category with new owner.

Stage 9: Maintenance of Tourism Levy

• Ongoing management of Tourism Levy as part of the “core” business of the

rating unit in combination with cash receipting functions, reconciliation of ledgers, upgrading of reports to incorporate the Tourism Levy.

Source: Caloundra City Council. 5. Case Study – Noosa Shire Council

Background Noosa Shire Council formed the Noosa Collaborative Tourism Board in 2001. The Board produced “The Noosa Tourism Plan 2001 – 2011” with a vision “A community and tourism industry that works so well together that Noosa is internationally recognised as an innovator in achieving interdependent economic, social and environmental sustainability”. The Plan called for the introduction of a tourism levy. The Plan was put out for public consultation after all key tourism and industry associations signed off in support of the levy, Council introduced the first tourism levy in its 2001/02 rating year.

Levy Overview Council introduced a levy (special rate) on business and accommodation properties within the Shire that were deemed to gain benefit from tourist visitation. This beneficiary group was defined to include:

• Short term holiday accommodation; • Holiday let residential dwellings; • Multi tenancy accommodation – hotels, motels, guest houses and caravan parks; and • Commercial and industrial businesses.

Exemptions from the levy included:

• Home based occupations; • Child care centres; • Storage facilities; • Funeral parlours; • Unlicensed sporting clubs; • Government utilities; • Hospitals, schools, community and charitable services.

Benefits were defined as gains achieved from increased visitation resulting from tourism promotion activities funded by Council and carried out by approved agencies and that benefits accrue both directly from expenditures by tourists and tourism service businesses and indirectly through incomes generated by the community from employment in the tourism industry.



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Payment Scheme Differential degrees of benefit were identified for businesses and accommodation properties on the basis of their location, access to services and facilities and tourist visitation.

The levy is calculated at differential levels reflecting the degree to which the land or occupier is considered to derive benefit.

Differential Rate Levels

Zone Levy Calculation Rate

Division One (rural or hinterland) ratepaying businesses

0.035 cents in the dollar on the property valuation

Division Two (Tewantin) 0.07 cents in the dollar

Division Three (Noosa Heads, Noosaville)

0.14 cents in the dollar

Division Four (Sunshine Beach to Peregian Beach)

0.105 cents in the dollar

Sample of levies paid on selected properties

Property Valuation Levy Paid

Cooroy Shop

$85,140 $50.00

Hastings Street Unit

$352,000 $537.86

Noosaville Unit

$124,480 $190.21

Noosa Sheraton

$21.5million $32,852.00

Revenue Allocation Revenue raised is allocated to approved Tourism organisations in pursuit of the objectives of the Noosa Tourism Plan and any unexpended funds remaining at the end of the year may be transferred to a subsequent similar plan.

Accountability of funds:

• NCTB advisory only

• Still connected to Council by CEO and Director of Community Services

• Finances managed through Council’s corporate services directorate.



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Properties Captured by Levy

Properties Captured by Levy

Category % of Proportion % of Tourism Levy Revenue

Strata Titled Units 85 71

Commercial, residential, office

15 29

Implementation

Identification of properties:

• Local knowledge and cooperation with industry;

• If in doubt include in the levy and provide objection rights.

Source: Noosa Shire Council.



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APPENDIX I – SPECIAL RATES AND CHARGES

Special Rates and Charges

RTO CASE STUDY

REGION

TYPE OF LGA LEVY

FUNDING MECHANISM PROCESS OF INTRODUCTION

ADMINISTRATION STRUCTURE AND

PROTOCOLS

SUCCESS FACTORS AND LESSONS

Surf Coast Shire (Victoria)

Special Rate and Charge introduced by Council

Council implemented a general rate for residential properties (including vac-ant land) and two differ-ential rates for 2002/03. The differential rates are:

• a farm rate (85% of the general rate);

• a commercial / tourism rate (180% of the general rate).

These different rates reflect council's expend-iture in these sectors as well as council policy.

Tourism is an important economic activity in the Shire. Council also collects a tourism special charge from affected properties, to help support tourism development in the shire.

The rates pay for services which the tourism industry either uses directly or has access to, and which provide general benefit to visitors and the local community.

Consultation occurred over an eight-month period with all tourism and trader associations.

Council was obligated to follow statutory guidelines for implementation of the levy: ie.

• Advertise and invite submissions

• Review submissions

• Formally approve the levy

• Send notice of intent to rate payers

• Review and respond to objections

• Include levy in rate notices

Notices were sent to 6,000 perceived beneficiaries of the rate and charge.

The charge is used for marketing and includes:-

• Contribution to Geelong Otway Tourism

• Regional marketing to local visitors

• Running costs of Visitor Information Centres

• Contribution of 40% of a tourism/business liaison officers wage

• Contributions towards development of scenic tours

• Contributions to a 'street life' project in each coastal town

• Developing initiatives that encourage the millions of visitors to the Shire to stay longer and to spend more money while they are there.

Open communication between Council and tourism association

Economic benefits of tourism clearly articulated in all community information

Business and marketing plan prepared to guide implementation of levy

Legal advice sought on design of levy

Performance measures set in train

Source: Surf Coast Tourism



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Commentary: Adopted in 1997, the Tourism and Economic Development Levy was established to enable the Surf Coast Shire Council to:

Provide some of the resources to assist in managing the industry and increase yields while providing a quality experience for visitors. Help manage tourism and economic development and to ensure sustainable development of what is now the largest industry in the Surf Coast Shire. Provide a way of protecting what we have – environment and lifestyles – by managing visitor numbers and providing quality experiences to visitors. Form a pool of local funds with which to attract the government and private sector money needed to provide improved tourism facilities. Help to provide the infrastructure needs, information centres and marketing materials to encourage people to stop and spend in the Surf Coast.

All those considered to derive benefits from tourism are asked to contribute back to the future of the tourism industry. The levy is compulsory for all commercial and tourism businesses throughout the Shire and is collected quarterly through Council’s rates system. The payable amount varies and is calculated either based on a commercial/differential rate or via one of two special charges (Holiday Home or Minor Accommodation).

These funds are then allocated to the Surf Coast Tourism Budget for allocation, management and investment back into the future of the tourism industry.

Rating Categories Capital Improved Value (CIV) No. of Properties Rate in Dollar(cents in $)

Annual Charge Rates/Charges Raised

$3,572,759,300 13,899 0.2686 < $9,598,004

Farm $325,427,000 929< 0.2283 (85% of general rate)

$743,104

Commercial/Tourism Rate

$234,395,753 551 0.4835 (180% of general rate)

$1,133,442

Vacant Land $311,364,000 1,581 0.2686 $836,461



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Rating Categories Capital Improved Value (CIV) No. of Properties Rate in Dollar(cents in $)

Annual Charge Rates/Charges Raised

Municipal Charge Levied on all properties to help payfor administration costs

15,132 $60 $907,920

Tourism Charge -Holiday Home

Levied on private homes rented out for profit

2,991 $60 $179,460

Tourism Charge - Other Accom.

Levied on all tourist establishments & accommodation properties that are not subject to the Tourism/Commercial Rate

89 $200 $17,800

Garbage Charges - Urban

Levied on all urban properties

10,986 $132 $1,450,152

Garbage Charges - Rural

An optional levy on all rural properties choosing to use this service

1,079 $148 $159,692

Total Income to be raised for 2002/03 Year $15,026,035



RTO CASE STUDY

REGION

TYPE OF LGA LEVY


ADMINISTRATION STRUCTURE AND

PROTOCOLS


City of Ballarat

(Victoria)

Differen-tial General Rate

Council imposed a special rate and charge (Tourism and Economic Development charge on 2,573 properties).

The special charge was imposed for a period of three years.

The charge is levied against commercial improved and industrial improved and industrial rateable properties.

The special rate is to assist with the promotion and marketing of the city.

Commencing 1 July 2001, a three year Tourism and Economic Development Special Charge was declared. The three year special charge was designed to raise approximately $619,00 in year 1, $635,000 in year 2 and $657,000 in year 3. The Tourism and Economic Development Special Charge will next be reviewed for 2004/2005.

The special charge funds Business Ballarat and the Ballarat Tourism Board.

Council must be able to demonstrate that the persons paying the charge will obtain a special benefit.

Council had the support of both community and business leaders prior to considering the introduction of the charge.

Introducing a tourism special charge can be a long complex and politically tough process. A business plan and communication strategy needs to be prepared to guide the process.

Source: City of Ballarat

Commentary: The Ballarat City Council was the first regional Council and is still one of a very few Councils in Australia with a special charge to assist with the promotion and marketing of the City. The Ballarat model is widely acclaimed at both a State and National level within the Tourism Industry. The Special Charge is based on property valuations for all businesses within the city. The revenue from the special charge is split between economic development and tourism and is utilised to market the city to stimulate economic growth within Ballarat. The special charge was introduced to firstly raise appropriate revenue to market the city and secondly to ensure that all who benefited from increased economic activity also contributed to its growth.



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RTO CASE STUDY

REGION

TYPE OF

LGA LEVY


ADMINISTRATION STRUCTURE AND PROTOCOLS


Noosa Shire Council (Queensland)

Special Rate and Charge

The levy is calculated at differential levels reflecting the degree to which the land or occupier is considered to derive benefit.

Division One (rural or hinterland) – 0.035 cents in the dollar on the property valuation.

Division Two (Tewantin) – 0.07 cents in the dollar.

Division Three (Noosa Heads, Noosaville) – 0.14 cents in the dollar.

Division Four (Sunshine Beach to Peregian Beach) – 0.105 in the dollar.

Revenue raised is allocated to approved Tourism organisations.

The Noosa Tourism Plan was developed that called for the introduction of a tourism levy.

The Plan was put out for public consultation after all key tourism and industry associations signed off in support of the levy.

Council introduced the first tourism levy in its 2001/2002 rating year.

Notices sent out to all ratepayers

Revenue is allocated to approved Tourism organisations in pursuit of the objectives of the Noosa Tourism Plan.

Noosa Collaborative Tourism Board is an advisory only for the accountability of funds.

The Noosa Collaborative Tourism Board is still connected to the Council by the CEO and Director of Community Services.

Finances are managed through the Council’s corporate services directorate.

Set a best practice standard for the Sunshine Coast with respect to tourism levies which has been followed by Maroochy* and Caloundra Shire Councils.

Establishment of a ten-year Tourism Plan and a three-year Action Plan to guide the industry gives guidance and direction to the future development of the industry.

Source: Noosa Shire Council

NOTE: Following the local government election in 2004, Council withdrew this special rate and charge. Even though the levy was withdrawn, Tourism Sunshine Coast has been able to retain this investment because of the partnership agreement which was negotiated and signed off earlier in the year.



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RTO CASE

STUDY REGION

TYPE OF

LGA LEVY

FUNDING MECHANISM

PROCESS OF INTRODUCTION


SUCCESS FACTORS AND

LESSONS

Caloundra Shire Council (QLD)

Special Rate and Charge

Commercial Properties

Industrial Properties

Tourist Accommodation

Charged at 0.0035 cents in the dollar.

Caloundra City Council allocates funds as collected via the Tourism Levy on a quarterly basis.

Guidelines for which properties were to be levied were prepared.

Communications strategy was developed to provide the community with general and specific information about the Levy via the media, radio, Internet and direct and selective mail.

The community consultation process included:

• press release issued to all media outlets

television interviews

internet accessibility of draft report. All media contacts were notified of the internet accessibility.

Draft report available in all Caloundra City Libraries.

All six major business associations within the Caloundra city were emailed a copy of the draft report.

Discussion forum with Caloundra City Councillors was held where an overview of the

The members of the Caloundra City Interim Tourism Taskforce endorsed and voted unanimously to recommend that Council:

1. Adopts the proposed Tourism Levy at a rate of $0.0035 in the dollar via the revenue raising powers conferred on Council by the Local Government Act 1993 subject to the ability to raise a minimum of $1.2million.

2. Approves the establishment of the proposed Caloundra Tourism Marketing Entity (CTME) as a not-for-profit incorporated company to act as the marketing body on the behalf of the tourism industry and other industry sectors in the community.

3. Endorses the continuance of the Caloundra City Interim Tourism Taskforce for a further period of 6 months. The taskforce had two tasks – to develop and implement a selection process for the election of members to the entity and to establish an appropriate name of the new entity.

4. Endorses the community/skill based criteria for the appointment of the Board members.

5. Approves the Caloundra City Council’s Tourism Officer to liaise between the CTME and the Council.

6. Approves the appointment of two Caloundra City Council Officers and consultants to the Board.

Internal working group established Caloundra Tourism marketing entity established.

Several rate options modelled.

Tourism beneficiaries identified.

Categorisation of properties.

Legal basis for the introduction of a tourism levy reviewed.

Communication and marketing strategy established.



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RTO CASE

STUDY REGION

TYPE OF

LGA LEVY

FUNDING MECHANISM

PROCESS OF INTRODUCTION


SUCCESS FACTORS AND

LESSONS

proposal was presented. 7. Approves the draft financial and human resource plans.

8. Endorses the amendment of the Revenue Policy specifying that whilst a discount for the early payment of general rates is applied, no discount will be given on the Tourism Levy.

Source: Caloundra Shire Council

Commentary:

Background Tourism Industry Beneficiaries are defined as follows: • All properties deemed to gain financial benefit from tourist visitation, either directly through the provision of holiday accommodation or

tourist services, or indirectly through a higher general level of economic activity within the Caloundra City region. • ‘Special rate’ – a rate made and levied by a local government on the unimproved value of some, but not all, rateable land in its area. • ‘Differential rate’ – rate (other than a special rate) made and levied equally on the unimproved value of all rateable land in a local

government area included in a category decided by the local government levying the rate. • According to the amendments made to the Local Government Act 1993, s971 in 1999, a special rate includes a “tourism promotion charge

levied on land used for business that would benefit from tourist promotion”. • Completed a SWOT for identifying the key issues that need to be addressed when considering the allocation and management of additional

funds for tourism promotion.



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Payment Scheme

According to the LGA s971 – the Caloundra City Council is under a statutory duty to identify all properties that are used for a tourism-related purpose such that the occupier will specially benefit from tourism promotion expenditure. The CCITTF recommended that a Tourism Levy be charged to those property owners that can be identified to benefit directly or indirectly from tourism.

Caloundra followed the Noosa Shire model by opting to levy a special rate based on valuation rather than a fixed special charge (per property). To apply a special charge as a fixed amount per benefited property is considered inequitable, as this method does not recognise differential levels of benefit due to multiple tenancies within properties.

Characteristics of Tourism Industry Beneficiaries

Commercial and Industrial Properties:

• Offer goods or services to the public generally • Profit motive • Income is taxable

Tourist Accommodation

• Holiday accommodation offered during all or part of a financial year • Accommodation offered for periods of 28 days or less • Income is taxable

Revenue

• A special rate of 0.0035 in the dollar was calculated to raise the proposed $1.2million. • Caloundra City Council allocates funds as collected via the Tourism Levy on a quarterly basis. • To comply with s971 of the LGA, the CCITTF forum recommended that any funds collected through the Tourism Levy should be directed to

the proposed Caloundra Tourism Marketing Entity for planning, development and implementation of marketing activities as outlined in the Caloundra Tourism Plan and Tourism Action Plan.

Community Consultation • Press release issued to all media outlets • Television interviews • Internet accessibility of Draft Report. All media contacts were notified of the internet accessibility. • Draft Report available in all Caloundra City Libraries • All six major business associations within the Caloundra city were emailed a copy of the draft report for discussion with their membership

and local business community. • A discussion forum with Caloundra City Councillors was held, where an overview of the proposal was presented.



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Collection Fee To cover the administration of the process, a collection fee will be charged by Council for the ongoing maintenance of the Tourism Levy. In the first year to ensure the cost of implementation is covered, a fee of up to but not exceeding 10% will be charged. In subsequent years a fee of up to but not exceeding 5% will be charged



APPENDIX J – OUTBACK QUEENSLAND COOPERATIVE DOMESTIC MARKETING OPPORTUNITIES 2006/2007

Cooperative Domestic Marketing Opportunities 2006/2007

Check out Queensland’s backyard is the largest destination promotion campaign the OQTA has undertaken. The main aim of this innovative campaign is to encourage people to ‘look over the fence’ and holiday in their own backyard. The campaign highlights a young suburban couple who look over their back fence to see an amazing outback vista. The creative brief features a series of images that showcase the diversity of experiences and contrasting landscapes of Queensland’s Outback. The key messages of the campaign are that Queensland’s Outback is easily accessible and that there is a lot to see and do when people arrive there. The campaign especially targets couples 45 years and over, and young families with children. It is fully integrated with a consistent imagery being used across a range of mediums. The campaign has engaged tourism industry operators throughout Queensland’s Outback with unprecedented levels of cooperative support in press advertising features and as part of a top and tailed television commercial. It has also been well received in the market place with an excellent call to action response rate being generated. Check out Queensland’s backyard was introduced in 2005 with an intrastate focus. While maintaining exposure in key intrastate markets, the campaign will be extended to interstate and selected special interest niche markets during 2006/07. Trade marketing activities will also be increased. The full marketing calendar will involve applications across a range of mediums – television, press advertising, websites, consumer show promotions, merchandise, e-marketing initiatives and cooperative features. A number of cooperative opportunities are available for OQTA members to buy in to the campaign. This document contains a brief outline of these opportunities. More details for each opportunity will be distributed to members as the activity dates get nearer. Additional generic destination marketing activities will also be in the market throughout the year.



ACTIVITY MEDIUM DETAILS August 2006

Press Features South East Queensland • Gold Coast Bulletin • Sunshine Coast Daily • Toowoomba Chronicle

Double page spread; Multi-publication package buy

Television Advertising South East Queensland Top & tail ads e-Marketing • Consumer emails

• Travel trade emails Newsletter style

September 2006

Press Features Regional Queensland • Rockhampton Bulletin • Townsville Bulletin • Cairns Post


Television Advertising Regional Queensland Top & tail ads Press Feature 4x4 Australia magazine 24-page feature Trade Marketing Familiarisation Wholesale & retail

October 2006

Press Feature Endless Summer Summer campaign; package promotions

Brochure Summer packages Print run-on of Endless Summer feature

Brochure Check out Queensland’s backyard by 4X4

Print run-on of magazine feature

Consumer Show Melbourne 4x4 Show Online Campaign • campaign website

• search engine marketing • friend-to-friend marketing

November 2006

Brochure Queensland’s Outback Events Calendar

New printed brochure

Trade Marketing Familiarisation Wholesale & retail e-Marketing • Consumer emails




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December 2006

Brochure National Parks in Queensland’s Outback

To be confirmed

January 2007

Trade marketing Trade Travel directory Double page spread

February 2007

Press Feature Brisbane • Sunday Mail

Double page spread

Press Feature On the Road Double page spread Consumer Show Adelaide Caravan & Camping Show Consumer Show QR Holiday Expo Outback Week • Promotion & publicity events

• Trade Expo

Television Advertising Brisbane Top & tail ads e-Marketing • Consumer emails


Online Campaign • campaign website • search engine marketing • friend-to-friend marketing

March 2007

Press Features Northern NSW • Lismore Northern Star • Grafton Daily Examiner • Coffs Harbour Advocate


Television Advertising Northern NSW Top & tail ads Consumer Show Melbourne Caravan & Camping Show

April 2007

Trade Marketing Familiarisation Wholesale & retail Consumer Show Brisbane 4x4 Show Consumer Show Sydney Caravan & Camping Show

May 2007

e-Marketing • Consumer emails • Travel trade emails

Newsletter style

June 2007

Consumer Show Brisbane Caravan & Camping Show



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All marketing activity under the Check out Queensland’s backyard campaign includes a call to action to visit our website or call a tollfree number to receive a copy of the Queensland’s Outback Travellers’ Guide. To benefit from all campaign activities, make sure you participate in these two initiatives.

Queensland’s Outback Travellers’ Guide

The OQTA’s annual regional brochure: • 110,000 printed copies • electronic version – website, CD-Rom • response piece for campaign fulfilment • distributed at all consumer shows

Australian Tourism Data Warehouse

Register your product on the ATDW to maximise your on-line presence on these leading tourism websites: • www.outbackholidays.info • www.adventureoutback.com.au • www.queenslandholidays.com.au • www.australia.com • www.driveqld.com.au

For more information on how you can be involved with the Check out Queensland’s backyard campaign, please contact Outback Queensland Tourism.

Outback Queensland Tourism Phone: (07) 3236 4996 Fax: (07) 3236 4640 Email: [email protected] Website: www.outbackqld.com.au

OQTA reserves the right to change or remove items from this plan at any time.

MOUNT ISA TOURISM STRATEGY 2007-2017

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