The term “visitor economy” refers to the industry producing tourist goods and services. This industry includes direct service providers, like hotels, transportation companies, tour operators, attractions, intermediaries, and those indirectly involved, like food and retail. Thus, this acknowledges that tourism activity affects various industrial sectors and contributes to investment and employment. Therefore, the State Government of Victoria developed the Victorian Visitor Economy Strategy to advance and sustain the local tourist sector. The comprehensive plan includes community involvement, marketing, and infrastructure development. The project focuses on the three fundamental pillars of development, investment, and experience to boost visitor spending, create employment, and encourage regional tourism distribution. It aims to use technical products, environmental preservation, and cultural variety to provide distinctive and engaging experiences for tourists. The plan also strongly emphasizes working with local communities, industry partners, and the government to guarantee a robust, long-lasting tourist economy that substantially contributes to Victoria’s overall prosperity. The strategy’s focus on eco-friendly methods and sustainable tourism is one advantage. The long-term preservation of the state’s natural and cultural resources depends on promoting responsible tourism.
Positive Pieces of Detailed Feedback on the Strategy
Regional Victoria has more significant potential.
The study of The Victorian Visitors Economy Strategy acknowledges Regional Victoria’s enormous potential to impact the state’s tourist economy as a whole positively. This promise is anchored in the area’s wealth of resources and variety of attractions, including world-class cuisine and wine, enthralling outdoor adventures, and a rich tapestry of artistic and cultural activities. Considering that 56% of all tourist jobs in Victoria are located in the regions, the visitor economy is essential for boosting the local economy and generating employment opportunities in rural and regional areas. Rural Victoria’s most critical parts primarily depend on tourism as their main economic engine. A few notable examples are Phillip Island, which is well-known for its wildlife and coastal attractions; Daylesford and the Macedon Ranges, which are renowned for their wellness retreats and natural beauty; the Grampians, which is adored for its untamed landscapes and outdoor activities; and Victoria’s High Country, which is praised for its history and adventure opportunities. They inspire more Melbourne residents and Australians to choose rural Victoria over other states or areas as their preferred travel destination is a substantial development potential for regional Victoria. The government may enhance this number and strengthen the local tourist economy by encouraging pride and respect for their state’s restricted offers, as explained in Module 4.1, Local Impacts. To accomplish this, the plan describes the significance of targeted marketing initiatives inside Victoria and other Australian states.
An enhanced branding and marketing strategy focusing on investments in key tourist attractions is one constructive criticism for realizing the potential of regional and rural Victoria. The government may provide improved tourist experiences that appeal to target populations by concentrating on specific locations and activities. Strategic investment should be encouraged in rural Victoria, focusing on locating top tourist destinations with great appeal and expansion potential. These funds may be used for infrastructure improvement, guest amenities, and general tourist facility improvement, all of which help to provide a positive and seamless visitor experience. Additionally, a well-designed branding plan can express the distinctive selling features of each rural Victoria area. A fascinating story highlighting the area’s tradition, culture, and natural beauty might pique potential tourists’ imaginations. According to the Victorian Visitor Economy Strategy case study, emphasizing sustainability and ethical tourism practices might also appeal to the expanding market of environmentally concerned tourists looking for honest, eco-friendly experiences. Cooperation between government organizations, tour operators, and local communities is essential to guarantee that branding and marketing initiatives align with each area’s spirit and goals.
Victoria’s Visitor Economy Is Diverse and Resilient
According to the Victorian Tourist Economy Strategy, Victoria’s tourist economy is robust and diversified due to several favorable features. First off, by including a variety of industries, the state’s tourism industry is well-rounded and capable of satisfying a wide range of traveler interests and preferences. These industries include lodging, events, food services, clubs and bars, transportation, travel agencies, tour operators, business events, sport and recreation, and arts and culture. The plan acknowledges Victoria’s distinct advantages in sports, the arts, and culture, which further contributes to her allure as a diversified city. In addition to drawing tourists from various Australian states, this variety also attracts tourists from outside. The popularity and appeal of the condition among tourists are shown by the fact that Victoria is the second most popular destination nationwide.
The need for a more effective coordination policy and enhanced industry involvement in the creation and progress monitoring of the Victorian Visitor Economy Strategy is a constructive criticism that may be addressed to boost the strategy’s efficacy further. To solve this, the State Government of Victoria should prioritize enacting stronger regulations centered on routinely and transparently informing industry stakeholders on the progress achieved in achieving the plan’s goals. Giving clear and thorough updates will increase industry involvement and confidence, enabling them to focus their efforts and resources as necessary. Additionally, by including industry leaders in the formulation of Victoria’s visitor economy plan, it will be ensured that the strategy accurately represents the possibilities and difficulties that companies experience. Government and industry players working together can provide more creative solutions, focused projects, and a more convincing strategy for marketing tourism in the state.
The Visitor Economy Is Performing Strongly
The State Government of Victoria’s Victorian Visitor Economy Strategy points to a solid performance in the tourist economy with some encouraging indications. Victoria’s status as a top supplier of top-notch international education is one of the key elements influencing its accomplishment. Despite making up just 0.3% of tourists, international students have a significant economic impact since they spend 12% of all visitors’ money. The state received an astonishing $4.7 billion from this industry in 2013/14, making it the most significant sector for services exports and a potential area for future development. Additionally, increasing tourist spending has significantly impacted the expansion of jobs. Jobs in the tourist economy grew by 18% from 2007 to 2008, outpacing growth rates in New South Wales and Queensland during the same period. Most tourists to Victoria are leisure travelers who also stop by to see friends and family; even though there are fewer business travelers, their more significant per capita spending guarantees that they make up a considerable portion of the overall visitor expenditure.
The execution of measures that have considerably increased access to and within Victoria is one of the positive criticisms of the Victorian Visitor Economy Strategy’s performance. Notably, adding direct international flights to Melbourne has greatly aided in making travel for guests from other countries more straightforward and convenient. In addition to boosting tourism, this increase in air connectivity has made conducting business in the state more accessible, bringing in more international investment and trade prospects. The Victorian Visitor Economy, Strategy case study shows that the strategy’s focus on enhancing access to important tourist destinations has also received recognition. Tourists may now more readily visit well-known attractions because of investments in infrastructure and transportation networks, improving their entire experience. Thus, this has helped boost the state’s economy by attracting more tourists and extending their stays.
Negative Pieces of Detailed Feedback on the Strategy
Increase in Competition
The Victorian Visitor Economy Strategy needs to improve due to the rise in economic competitiveness fueled by the rapidly expanding main economies of China, Indonesia, and India. The demand for high-quality goods and services rises along with the middle-class population growth in these nations. With its ability to provide such products, Victoria has become a desirable travel destination for these expanding markets. The increased competition, however, may have various unfavorable effects on the regional tourist sector. First, pricing pressures may result from increased competition. Local companies could need to provide competitive prices to attract tourists from these nations, which might lead to smaller profit margins and more financial distress. Additionally, local companies could find it challenging to match their overseas rivals’ marketing and promotion efforts, possibly resulting in a loss of market share. The second potential problem is the demand for available resources. Infrastructure and services may become overburdened as the number of tourists increases, raising questions about sustainability and posing a risk of adverse effects on the environment and nearby populations.
Implementing a more private sector investment policy in collaboration with Regional Tourism Boards, RDV (Regional Development Victoria), and Local Government Associations is a constructive way to combat the rise in competitiveness. With a particular emphasis on the most recognizable and significant regional tourist initiatives, this strategy seeks to identify and seize investment possibilities in the tourism sector. The plan may disperse investments and prevent excessive concentration in specific locations by matching these projects with substantial regional and governmental goals. Module 2.2 Private Investment in Tourism explains that the potential and appeal of regional tourism will increase with the encouragement of private sector investment, allowing for the creation of distinctive experiences and attractions. As a result, Victoria will be able to stand out from its rivals and improve its position in the international tourist industry.
Victoria Increasing Overnight Tourism Expenditure to $24.7 Billion.
It will be difficult for Victoria to increase overnight tourist spending to $24.7 billion by 2020 because of the dynamic and shifting demographics and tastes of travelers. In sharp contrast to the former dominance of Western countries, there has been a considerable change in the market over the last ten years, with a large percentage of growth coming from Asian regions. The Victoria tourist sector will need help as a result of this change. Getting used to Asian tourists’ different tastes from those of Western ones is one difficulty. To attract and keep Asian tourists, specific marketing approaches and experiences are required due to cultural variations, travel preferences, and purchasing trends. Thus, this includes delivering information in many languages, catering to specialized cuisine tastes, and hosting activities and events that reflect other cultures. Additionally, Asian visitors often have distinct lodging and shopping tastes, necessitating changes in the hospitality and retail industries to satisfy their requirements. Infrastructural, transportation and service capabilities are all stressed by the inflow of Asian tourists, necessitating extensive planning and investment to guarantee a smooth and happy experience for all visitors.
The State Government of Victoria has taken a proactive stance by exploiting the advantages of events strategy to meet the challenging spending objective. The government wants to draw various tourists and increase tourism spending by presenting a calendar of annual events in Melbourne and rural Victoria that includes sports, business, artistic, and cultural activities. According to Module 3.1 Sustainable Tourism Pt, Victoria may appeal to many market groups by holding various events, drawing local and foreign visitors with multiple interests. Sporting events bring sports fans, business events draw businesspeople, and artistic and cultural events draw those looking for stimulating and creative experiences. Additionally, these activities are intended to generate a domino effect that helps the neighborhood’s businesses and residents. Tourism expenditure growth generates more money for lodging providers, eateries, shops, and transportation services, boosting the local economy.
Direction and Framework for These Bodies, and Government, Communities, and Industries Generally, To Work Together
Victorian Visitor Economy Strategy has focused on the difficulties in creating cooperation among diverse stakeholders, including governmental entities, local communities, and businesses. Despite the plan’s emphasis on cooperation as a key to boosting Victoria’s tourism economy, actualizing this cooperative strategy may need to be revised. Aligning differing interests and goals among many stakeholders is one problem. It may be challenging to agree on essential projects since government organizations, corporations, and communities may have divergent goals. This mismatch might impede the efficient implementation of the Action Plan and slow down decision-making procedures. Additionally, complicated administrative procedures and red tape may make it difficult for public and private organizations to work together effectively. Getting through administrative obstacles and regulatory systems may make executing strategy and reaching objectives more difficult. Furthermore, resource and financial limits could be a problem. Collaboration often necessitates financial and logistical inputs, and if these resources are adequately managed, the strategy’s progress toward its goals might be improved.
According to the Victorian Visitor Economy Strategy case study, the skilled and competent sector strategy has been criticized for having a narrow scope for monitoring external shocks and their possible influence on the visitor economy. Despite the strategy’s emphasis on the value of a knowledgeable and flexible workforce, it may need to sufficiently manage the risks caused by outside variables other than human resources. Although the policy’s emphasis on skill development and adaptation is unquestionably essential, it may be made even better by including a thorough strategy for identifying and addressing external threats. As Module 3.2 Sustainable Tourism Part 2 indicates, the approach should consider a more detailed analysis of Australia’s overall economic situation and essential tourist markets. By doing this, it can more accurately forecast changes in the tourist sector, enabling stakeholders to create suitable backup plans.
In conclusion, to further strengthen the state’s economy and ensure its future growth and prosperity, the government of Victoria gives the development of tourist experiences top priority and financial support. Understanding the many requirements of visitors, including those who come for pleasure, business, education, health services, and visits to friends and family, should be the primary goal of the Victorian Visitor Economy Strategy. The Victorian Visitor Economy Review, which includes considerable study and engagement, yielded valuable insights that the government may use to provide customized visitor experiences for various tourist categories. Thus, this could consist of developing cultural and recreational attractions, upgrading tourist infrastructure, and investing in businesses serving varied visitor demands. Continued efforts in this area are essential given that the tourist economy already makes a significant contribution to Victoria’s Gross State Product and sustains a sizable number of employments. By supporting the tourism industry and offering top-notch experiences, Victoria can continue to attract tourists, spur economic expansion, and increase the number of job possibilities for its residents.
Module 2.2 Private Investment in Tourism
Module 3.1 Sustainable Tourism Pt 1
Module 3.2 Sustainable Tourism Part 2
Module 4.1 Local Impacts
Victorian Visitor Economy Strategy – Amazon Web Services, inc.. (n.d.). https://s3-ap-southeast-2.amazonaws.com/assets-visitvictoria-stage.ev7.com.au/documents/Visitor_Economy_Strategy.pdf