Tourism inquiry considers investment incentives

A FEDERAL parliamentary inquiry is recommending incentives to encourage both accommodation and attractions in regional Australia, but a peak body for the local tourism sector says solutions should be broad and for the whole year.

The Joint Standing Committee on Foreign Affairs, Defence and Trade has released its final report for its inquiry into Australia’s tourism and international education sectors.

The report notes the committee “listened with concern about the lack of [private sector] investment to create and refresh tourism assets” and that “these investment decisions are for commercial consideration, and predominantly driven by rates of return on investment”.

The report cites comments made to the inquiry by Great Ocean Road Regional Tourism (GORRT) industry development manager Joanne Birley that there had been no major hotel investment in the Great Ocean Road region for more than 10 years, with at least two projects stalling in the development stage.

In its recommendations, the committee said the federal government, where appropriate, “should consider incentives to promote development, co-investment in tourism stock and other mechanisms to promote development in regional areas”.

The $115 million RACV Torquay Resort opened in June 2013, but GORRT general manager Liz Price said the report’s findings did not necessarily mean such a facility should be replicated across the Geelong region.

“It’s not just accommodation rooms – the region desperately needs to get greater dispersal, non-weather dependent, off-peak and night-time visitation, and that’s going to require different types of accommodation but also other attractions and experiences that are going to keep people coming to the region outside of the summer peak for the beach.”

She said a pre-COVID study by Deloitte for the Victorian government found there was a shortage along the Great Ocean Road of more than 3,000 rooms across all types of accommodation.

“If we’re trying to get people to stay longer and spend more time in the region, then we need to have the style and type of accommodation that caters to that.”

In Geelong, the number of hotel rooms is booming.

Tourism Greater Geelong and the Bellarine’s (TGGB) latest annual report states 1,000 rooms have been approved, started being built or opened in the past 12 months.

This is nearly halfway to TGGB’s Sustainable Destination Masterplan target, set two years ago, of more than 2,000 rooms over 10 years.

“It tells me there’s a level of confidence and optimism about Geelong, and a lot of that is tied to the Nyaal Banyul convention and events centre,” TGGB executive director Tracy Carter said.

“When you see the government making an investment like that, it obviously gives private investors confidence to do what they’re doing.”