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The next day challenge seen as an opportunity

February 20, 2019 BY

Target tourism: Visit Ballarat’s CEO Noel Dempsey says that Sovereign Hill is key to brining people to the city and keeping in the region for longer than day trips. Photo: YVON DAVIS

INTERNATIONAL visitors to regional Victoria decreased by 1.4 per cent, well below the national regional average growth rate of 3.8 per cent, according to figures released by Victoria Tourism Industry Council.

Great Ocean Road, Phillip Island penguins and Sovereign Hill are Victoria’s top three tourist attractions for international visitors.

800,000 tourists visit Sovereign Hill each year.

“Due to their proximity to Melbourne visiting each of these destinations can be accomplished as a day trip, as a consequence, there is very little over night stay and little investment in the regions,” said Noel Dempsey, Visit Ballarat’s CEO in response to the VTIC report.

The average international tourist spend on the Great Ocean Road is around $0.20 per visitor.

They go by bus, take some photos or video, maybe get a coffee, then turn around and head back to Melbourne.

This is an incredibly poor yield.

As Mr Dempsey sees it, Ballarat faces the same two trials as the rest of regional Victoria, the lack of attractions and accommodation to encourage international and inter-state visitors into staying over-night.

The Chinese tourist has traditionally been on fixed itinerary trips purchased from a wholesale travel operator.

On a 10 to 12-day Australian visit, the Melbourne experience is generally three days, one spent in Melbourne and two on day-trips outside the city.

Mr Dempsey said, “Opportunity is starting to change with the advent of a new breed of Chinese tourist known as free independent traveller.”

FITs like to travel in small groups or as couples to experience new ways of life.

They enjoy good food, architecture and the heritage of local culture.

FITs spread their money around in a more efficient fashion, buying from multiple locations driven by their own particular itinerary and tastes and by the intention of enjoying the local way of life.

They are looking at what regional Victoria has to offer without finding enough to persuade them to stay more than one day.

“Because Ballarat falls into this category, Visit Ballarat are trying to develop product that will appeal to that customer base,” said Mr Dempsey

“Sovereign Hill is the champion of Ballarat,” he said.

“It brings 800,000 to Ballarat every year, I just have to give them a reason to stay another day.

“It is not a virgin business, so what can we do to keep them over night?”

Aura the new light show at Sovereign Hill will get people to stay into the night and hopefully think about staying the next day.

“We see the next day encounter as an opportunity, hence we are in talks with the Wadawurrung people to engineer an indigenous cultural experience that has significant appeal.”

The Made of Ballarat campaign could also tempt the FITs with its theme of progressive artisans creating earthly treasures.

The redevelopment of the sports and entertainment precinct around Mars Stadium is another area for attraction growth believes Mr Dempsey.

That land is not constrained by heritage overlay and it is on a train line.

“The land around it affords big picture investment,” Mr Dempsey said.

He also said the new additions of penguins, tigers and meerkats at Ballarat Wildlife Park to try to work the market.

If the lack of attractions problem is solved, the deficiency of five-star accommodation is the next issue on the agenda.

“When we get the product to convince the tourist to stay overnight there will be pressure on investors as there won’t be enough hotels to stay in overnight, thus creating a chicken and the egg situation,” Mr Dempsey said.

Visit Ballarat is currently undertaking a feasibility approach to the broader accommodation market for the city and surrounds.

It is providing a projection of figures to the accommodation chains and boutique hoteliers in support of tourist bed nights, particularly domestic, to a lesser extent international and of course business accommodation.

“I can get the hotels, but government and private investors need to invest in the infrastructure to provide and sustain a multi-day experience,” Mr Dempsey said.

“The figures on the report are relevant and viable, international tourism is booming in Melbourne, however VTIC need to take some funding and marketing initiatives to get people out to the regions for more than a day trip.”