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Marysville and Triangle Economic Recovery Strategy

Final recommendations

30 June 2009

1219720-45-Marysville and Triangle Economic Recovery Strategy.ppt

Purpose of this document

In April 2009 BCG commenced an eight week pro-bono project for the Victorian Bushfire Reconstruction and Recovery Authority (VBRRA)

During this period an analytical fact base was assembled and more than 50 stakeholder interviews were conducted to understand the key issues and determine a path forward

This document provides an overview of the strategy, including the Marysville and Triangle's economy before the fires, a future economic vision and the recommended pathway to achieve that vision

This strategy is our independent recommendation on the economic aspect of the recovery, and should be used as an input into the wider recovery plan generated by the local community, government and VBRRA


Our agreed objectives and success indicators

Objectives

Success indicators

• Community support for the economic vision and the creative solutions identified in this effort

• A sense of confidence and excitement among the business community (existing and potential) about the economic future of the region

• A plan that differentiates the region, and aspires to create a more vibrant economy than existed previously

• Engage with the community to create a shared vision for the economic recovery and long-term sustainability of Marysville and Triangle

• Recognise the strengths of the region prior to the bushfires, and help apply the lessons from other successful, resurgent communities

• Identify the industry sectors and opportunities that will provide economic critical mass to the community, and requirements for success


Executive summary

Tourism, agriculture and forestry underpinned Marysville and Triangle's economy before the fires• Traditional agriculture has declined in the last decade, but the area is now home to a number of niche products• Forestry in the region was expected to be a major source of ash species for VicForests• Tourism was centred on the accommodation hub of Marysville and a range of natural attractions in the region, with Lake

Mountain visitors contributing up to 40% of the spend in Marysville

Black Saturday fires had a large impact on Marysville and the Triangle region, with economic and physical loss concentrated in Marysville

Our vision for the future Marysville and the Triangle is a desirable nature-based tourist destination• The future of the new Marysville is an enticing tourist experience that supports a prosperous community

To achieve this vision, five core actions are necessary1. Rebuilding natural attractions, bringing back a broad range of infrastructure and amenities, and developing a multi-faceted

events calendar– It is critical to rebuild at least one conference centre in Marysville and position Lake Mountain for success, while

concurrently re-establishing the trails and falls2. An identifiable brand personality is critical for Marysville and the Triangle, supported by consistent marketing and promotion,

and a coordinated tourism approach3. A strong economic leadership team including key members of the local business community is critical to recovery 4. A stimulus and incentives package will be required to kick-start the private sector rebuild5. A phased recovery approach is needed in driving a tourism-led recovery


Economic

Individuals, Business,Infrastructure, Government

LocalCommunity

People

Safety, Health, Welfare

Reconstruction

Residential, Commercial, Rural,

Public Buildings

The Environment

Biodiversity & Ecosystems, Amenities, Waste and Pollution management,

Natural Resources

This strategy focuses on the Economic stream within VBRRA's recovery framework

The Victorian Bushfire Reconstruction and Recovery Authority's four streams

Source: VBRRA organisational structure

... with a focus on fostering the return of local businesses

and developing economic

infrastructure

The economic recovery strategy will be used as input to the urban design framework and branding strategy

LocalCommunity


The strategy has been informed by interviews with a wide range of stakeholders ...

Mirvac - CEO HotelsAndrew TurnerBusinessNetbalanceTerence Jeyaretnam(continued)

CRLLENBill Coppinger

VBRRA - Tourism VictoriaPaul Albone

Murrindindi Council sub-committeeSection 86

Premier's Office, Economics advisorBrian O'Connor

Tourism Victoria - Infrastructure ProjectsNick Byrne

VicUrban - Dandenong CBD revitalisationDom ArcaroDPCD - Hume Regional PlanningLeah Smith

AusAid - Disaster RecoverySofia Close

VBBRA - ChairChristine Nixon

PCG - Project Steering CommitteePCG Group

VBBRA - Head of PlanningKim EdwardsGovernanceVBBRA - Pro-bono consultantMike RobertsProjectVBBRA - CEOBen Hubbard

Premier's Office, Economics advisorChris NewtonGovernment

DSE - Executive Director Public LandPeter Watkinson

VicForests - Director, StrategyCameron McDonald

Murrindindi Council - MayorLyn Gunter

Federal Member for McEwenFran Bailey

Tourism Victoria - Director of MarketingDon Richter

State Member for SeymourBen Hardman

Murrindindi Council - Councillor for Economic Development

John WalshMurrindindi Council - Deputy MayorKevin Bellingham

Murrindindi Council - CEOMark Henderson

Murrindindi Council - TourismMichael Chesworth

Murrindindi Council - Economic Development

Bob Elkington

VicForests - Central HighlandsBruce McTavish

Tourism Victoria - CEOGregory Hywood

DPC - SecretaryHelen Silver

Sector Organisation - RoleName

JG King HomesMichael O'MearaYarra Valley ValuationsLisa CannPoyry - Timber Industry ConsultantsDoug Parsonson

MATDG - MATDG MemberJim RoenfeldtMATDG - MATDG Member, Tourism Recovery Officer (Vic Tourism)

Graeme Haycraft

Earth System - EngineerJohn Sanderson

Alpaca Shop - OwnerBrian WorchesterVillage Walk Shops - LandlordGeoff Pope

Fraga's Restaurant - OwnerJames FragaPat's Hairdressing - OwnerPat Whittington

Eco-Design Architects - ArchitectNigel Bell

TreePower - DirectorTony RichardsonACTDavid KenleyCommunity

Maryton Park B&B - OwnerTony ThompsonBusiness

Marysville Bakery - OwnerLyn Phelps

Ski Hire - OwnerDerek ReynoldsMarysville Pub, and Cottages - OwnerGreg and Carl BellBuxton Trout farm - OwnerMitch McRae

Mill owner - OwnerRobin McKinnell

Marylands - OwnerMichael McNamaraCumberland - OwnerSimon Cuzens

ACT - CEOMal James

MOCA - Lead of part time residentsJohn Cann

MATDG - ChairmanDoug Walter

VFF Co-ordinator - MurrindindiMatt Ellis

Lake Mountain - CEORichard Rogerson

Retailer (Foodworks, etc) - OwnerMichael ReddropMarysville Patisserie - OwnerAshraf Doos

Bruno's Garden - OwnerBruno Torfs

MRTA - ChairmanGeoff ProctorMMT, MRTA, MATDG - Board memberGraeme Brown

Marysville Community DayLocal Community

MATDG - MATDG MemberJudy Jans

Resident - Marysville residentMax CockerellResident - Local Anglican PriestNorm Hart

Organisation - RoleSector Name


... and accessed many resources to understand the region, its local industries, and lessons from others

Tourism Association Reports• Touring Route Feasibility Study July 2008• Tourism Alliance Victoria Tourism Structure June 2008• Upper Goulburn Food and Wine Business Statement• Rural and Regional Committee – Inquiry into Rural and

Regional Tourism Final Report, July 2008• Macedon Ranges Events Report• MRTA Regional Tourism Business Plan 2007-12• Melbourne Convention and Visitors Bureau

Others (TAV Reports, STCRC Reports)• Alpine Resorts 2020 Strategy• Sustainable Tourism Cooperative Research • 'The Role of a Local Tourism Association' - STCRC• Lake Mountain Three-Year Marketing Plan • Estimating Economic Impacts of Events - STCRC• "Achieving sustainable local tourism management"• Tourism Recovery: The Impact of Bushfires on

Tourism & Visitation in Alpine National Parks – STCRC• Support Provision for Victorian Tourism Businesses• Estimating Demand for a Special Event and the

Event's Contribution to a Regional Economy• Seasonality in the Tourism Industry

Academic References • International Journal of Tourism Research articles• Annals of Tourism Research article• Journal of Tourism Studies articles• Journal of Ecotourism articles

Forestry• Joint Sustainable Harvest Level Statement, DSE '08• VicForests Corporate and business plan 08/09-10/11

Accommodation• Accommodation websites• Australian Camps Association's Guide to Camps

Tourism Victoria Reports• Regional Tourism Action Plan 2009-2012• 10 Year Tourism and Events Industry Strategy• Tourism Victoria 3 Year Business Plan 2008-2011• Nature-Based Tourism Strategy 2008-2012• Victoria Spa & Wellness Tourism Action Plan 2005-10• The Victorian Trails Strategy 2005-2010• Victoria's Food and Wine Tourism Action Plan • Victoria's Geothermal Tourism Investment • Regional Marketing and Development Plan – YV/DR• Market Segment Profiles• Tourism Excellence: Tourism Industry Structures• Victoria Market Profile December 2007

Tourism Research Australia Reports• Local Government Area Profiles for all Victoria regions• Visitor Satisfaction Surveys, National Visitor Surveys• Domestic Quarterly Reports (2007, 2008)• Destination Visitor Surveys• Snapshots (Culture & Heritage, Nature-based, Bed &

Breakfast, Food & Wine)• "Through the looking glass: future of domestic tourism" • "Changing Consumer Behaviour in Tourism"• Cultural Tourism in Regions of Australia• Assessment of Domestic Tourism• "Patterns of Tourism Demand in Australia"• "Evaluation of Tourism Marketing"• "The Nature of Ecotourism"• "Rural tourism in Australia"• Profiles and Motivations of Nature Based Tourists

Case studies• Kelowna resources: 'Disaster management' (Journal of

Hospitality and Tourism) 'Towards a destination tourism disaster management framework: long-term lessons' (Tourism Management), websites, interviews

• Greensburg resources (websites, interviews, articles)• Web-based resources, news articles and academic

journals for Chi Chi, Phi Phi, Darwin

Statistics• Australian Bureau of Statistics – 2006 Census• ABS Agriculture Census (1997, 2001, 2006)

Shire/government/community information• Murrindindi Shire Council Rate Data• Murrindindi EDS 2003-08• Murrindindi Shire Tourism Materials• Planning Sustainable Futures for Melbourne's Peri-

Urban Region, RMIT Nov 08• Victorian Budget 2009/10• Central Ranges Local learning & Employment

Network• Marysville Celebration Day: Transcripts

Disaster Recovery• Economic and Financial aspects of Disaster

Recovery, Emergency Management Australia;

Victorian Bushfire related materials• MOCA-BCG resident survey• VBRRA 100 Day Report• Murrindindi Business Bushfire Survey

Lake Mountain• Lake Mountain Annual Reports and website • Lake Mountain Strategic Management Plan 2007-12• Review of Alpine Resort Areas – Final Report – SSA• Sustainable Alpine Resorts - A framework for

discussion, DSE, May 2009

Sustainability• Building Commission, Direct cost of compliance with

the 5-star standard• Press searches• VicUrban/Aurora websites• BioRegional (BedZED) website


Contents

Tourism, agriculture and forestry underpinned the Triangle's economy before the fires

Post-fire, economic recovery / viability is dependent on tourism in Marysville and Lake Mountain

A vision for Marysville and the Triangle: A revitalised, more prosperous nature-based tourism model

Economic recovery for Marysville and the Triangle will require five key actions


Tourism, agriculture and forestry underpin Triangle economy

Pre-fires, the Triangle area was an aging, relatively low income and diverse community

Marysville was heavily reliant on tourism, but agriculture, forestry and fishing were also important in the Triangle area

Traditional agriculture has declined in the last decade but the area is now home to a number of niche products

Forestry in the region was centred on harvesting high quality ash species, and was an important source for Vic Forests

Tourism in the Triangle was focused on attractions in Marysville-Lake Mountain, but supported by many nature-based 'enhancers' in the wider area

Marysville economy provided the core tourist amenities – it was the accommodation hub and a popular tourist stopping point

• Visitors to Lake Mountain were central to Marysville's economy• But other leisure visitors, part time residents, and the conference market also play an important role in

Marysville's economy


Census data indicates an older demographic with low average income ...

The Triangle population is spread across 4 major areasThe Triangle population is

spread across 4 major areasSeniors are a significant

part of the local communitySeniors are a significant

part of the local communityWhile median income low,

it varies across communitiesWhile median income low,

it varies across communities

612(34%)

396(22%)

280(15%)

519(29%)

1,807

Population: 2006

Taggerty1

Buxton

Narbethong1

Marysville 2436

42

38

149

20 17

Australia Marysville and triangle

<15

15-24

25-54

55+

0

100

20

40

60

80

% of population

466387

0

100

200

300

400

500

Australia Marysville and triangle

Median individual weekly income ($)

Taggerty (437)

Marysville (387)Buxton (371)

Narbethong (299)

1. ABS Census 2006 published information for Taggerty and Narbethong as "State Suburbs", which are wider than Shire's definition of these towns. For example, Taggerty State Suburb covers an area stretching from Marysville to Alexandra. ABS data is used here in the absence of more appropriate information. Reader should bear this in mind when interpreting these numbersNote: MAT = Marysville and Triangle, includes Marysville, Taggerty, Buxton, and NarbethongSource: ABS Census (2006)

In addition, part time residents are also an important part of the community, owning around 50% of homes

Shire contend that ABS

number is too high due to

wider survey area1

Age


37 3346

1717

13

2021

15

9 10 7

9 10 9

8 10 10

Yr 11

Yr 12

0

100

20

40

60

80

% of population aged 15+ (not currently in school)

Victoria

Unstated

Yr 8 or belowYr 9

Yr 10

Triangle area2 Regional Vic3

... with education levels higher than regional VictoriaIt is ahead of regional Victoria on both school education attainment and tertiary qualifications

More people with year 12 attainment than regional Victoria, but below Vic average

More people with year 12 attainment than regional Victoria, but below Vic average

More people with tertiary qualifications than both regional Victoria and Victorian averageMore people with tertiary qualifications than both regional Victoria and Victorian average

32.1

28.1

32.3

0

10

20

30

40

% of population with tertiary qualifications

Triangle area2 Regional Vic3 Victoria

Highest year of school completed1

1. Numbers are based on people aged 15 yrs and over, and not currently in school 2. Triangle area based on sum of Marysville, Buxton, Narbethong and Taggerty 3. Regional Vic defined as Victoria excluding Melbourne (Major Statistical Region) 4. Tertiary qualifications included are: certificates, diploma/advanced diploma, bachelor degree, graduate diploma/certificate, and postgraduate degreeSource: ABS Census 2006, Central Ranges Local Learning and Employment Network (CRLLEN) – Environmental Scan 2007-2011

Percentage of population with tertiary qualifications4

" Murrindindi continues to perform above average in [Knowledge Driven Growth Potential indicator]" - CRLLEN


The Community Day on May 3rd revealed a diversity of stakeholders and views

Source: Marysville Community Day, 3 May 2009; www.matdg.com


25

96

10

9

10

10

12

9

Other1

Education and trainingPublic administration and safety

Construction

Retail trade

Manufacturing

Health care and social assistance

Agriculture, forestry and fishing

Accommodation and food services

Marysville was heavily reliant on tourism, but agriculture, forestry and fishing were also important in the Triangle area

Marysville Taggerty and region2

5,381256 298

Narbethong Buxton Rest of Murrindindi

6,229

Employment by industry: 2006

Marysville and Triangle

Localities

1. Includes transport postal and warehousing (4%), wholesale trade (4%), professional scientific and technical services (3%) and other industries 2. ABS Census 2006 published information for Taggerty and Narbethong as "State Suburbs", which are wider than Shire's definition of these towns. For example, Taggerty State Suburb covers the western side of Acheron Valley, an area stretching from Buxton to Alexandra. ABS data used in the absence of more appropriate info. Reader should bear this in mind when interpreting the numbersSource: ABS Census 2006

Employed (#) 131 163

Murrindindi

8

10

11

12

13

21

22

105596

10

22

25

45

5

624

42

14

52

11

9

14

9

7

18

18

18

34

10

26

96

10

9

10

10

12

70

100

20

40

60

80

People employed (%)

Marysville was the region's

accommodation hub

The Triangle region is interdependent, for example in one family the father may work in agriculture in Taggerty,

and both mother and daughter work in Marysville servicing tourism (i.e B&B

cleaner and cafe attendant)


Traditional agriculture has been in decline, replaced by small farms producing niche products

Production of livestock has rapidly declined in the area

Production of livestock has rapidly declined in the area

Non-livestock is ~50% of agricultural output and trout production is a significant industryNon-livestock is ~50% of agricultural output and trout production is a significant industry

79

32 40

154

55 32

31

5

0

50

100

150

200

250

1997 2001 2006

Other

Sheep/lamb

Meat cattle

Number of livestock in Murrindindi East ('000)

"Land values have increased 7-12% pa... and farm costs have increased due to the drought" - VFF

0

10

20

30

1%

0.4

Berry fruit

2%

0.5

Other3

50%

14.4

Live-stock1

25%

7.0

Nur-series2

15%

3.5

Stone fruit

7%

1.8

Crops for hay

50%

27.7

Total output

Non-livestock

Livestock

Agricultural output, Murrindindi East: 2006 ($m)

50%

0

200

400

Trout production (t)

Whole-sale

150-200

Australian Lake Trout

~100

Buxton Trout Farm

~10

Marysville Trout Farm

~300

Total MAT production

Tourist

Total output value: ~$1-2m (~15% of Australia's trout4)

1. Includes livestock products (eg, milk, eggs etc) and livestock for slaughter 2. Includes cut flowers and cultivated turf 3. Orchard fruit and potatoes 4. Based on ABS/ABARE estimates of gross value of output for AustraliaSource: Murrindindi EDS; ABS Agriculture Census (1997, 2001, 2006); Interviews with VFF; Local businesses; Productivity Commission; ABS Year Book 2008; ABARE; BCG analysis

"We are seeing many smaller farms with part time

farmers"- VFF

"Angus beef is our prime

product" - VFF


Forestry was centred on harvesting high quality ash speciesIt was expected to be a major source of ash species for VicForests

13%

14%

30%

43%

Ash309,000 m³

65%

17%

13%

5%

Mixed species204,000 m³

Indicative sawlog harvest volumes: 2007-12 (%)

1. FMA = Forest Management Area, as classified by VicForests. Murrindindi is part of the Central FMASource: Joint Sustainable Harvest Level Statement, DSE, May 2008; Interviews; BCG analysis

Tambol/East Gippsland

Central Gippsland/

Dandenong

Central (includesMurrindindi)

"This was our engine room ... our highest value timber" - VicForests

North east/ Benalla-Mansfield

Central FMA1, which includes Murrindindi, was expected to be the major source of Ash species Timber harvesting

delivered significant direct employment to

the region

Timber harvesting delivered significant direct employment to

the region

Although town suffered from the loss of the mill...

• Mill moved out of Maryville early this decade

... it is still significant employment in the wider area

• Triangle area (~30 employees)

– 3 harvest and 4 haulage contractors

• Healesville/Toolangi (~50 employees)

– 6 harvest and 5 haulage contractors

• Alexandra (~25 employees)

– 1 harvest, 2 haulage and 3 haulage sub-contractors


Tourism in the region was anchored by Marysville and Lake Mountain, supported by 'enhancers' in wider area

Taggerty

Buxton

MarysvilleLake Mountain

Narbethong

To Thornton and EildonTo Alexandra

Key attractions

Marysville and Lake Mountain were 'key attractions'

Marysville and Lake Mountain were 'key attractions'

• Marysville was the region's accommodation hub

• Lake Mountain offered first-time mountain experience and Nordic skiing

Narbethong-Taggerty corridor provided important

tourism enhancers

Narbethong-Taggerty corridor provided important

tourism enhancers

• Natural attractions and activities (waterfalls, scenic spots, walking hiking and biking trails, fishing, horse-riding, 4WD)

• Mix of agriculture and aquaculture provide farm-gate product and experience

• Touring route has been in the region's plans for many years

Source: Interviews with Marysville residents; Interviews with representatives from Tourism Victoria, Tourism Alliance Victoria, Mystic Mountains Tourism Inc, Murrindindi Regional Tourism Association, Murrindindi Shire Council, 'Touring Route Feasibility Study: Yarra Valley-North East Victoria' Draft July 2008; BCG analysis

Black Spur

Accommodation hub


• Quaint township• Leafy surrounds• Pretty gardens

• Avg 150,000 visitors p/a

• Nordic skiers and snow players

• National Park• Beginners rock

climbing• Camping, hiking

• Hiking and biking trails

• Driving (Black Spur, 4WD trails)

• 48-km scenic loop-drive

• Rivers, forest and waterfalls

• Tallest falls in the state

• Floodlit until midnight each evening

• Trout and Salmon Farms (Buxton, Marysville)

• Recreational Fishing

• Two vineyards• Pubs and

roadhouses• Guest house cafes

• 18 Hole Course• Attached lawn bowls

facilities

• Over 200 sculptural works in beautiful garden setting

• Australian Adventure Experience

• Camping and leadership facilities

• Bundurrah Trail Rides

• Kingbilli BYO horse Taggerty

• Avalon Yarck

Key tourism products in the region were nature-based

Township

Bruno's Sculptures Garden

Lady Talbot Drive Steavensons Fall

Lake Mountain Ski Resort

Country Golf and Bowls Club

Marysville – Lake MountainMarysville – Lake Mountain Broader TriangleBroader Triangle

Cathedral Range

Equestrian

Fishing Food and Wine

Hiking and Biking Trails

Adventure Sports

Source: MRTA references; Yarra Valley/Northeast Victoria Touring Route Feasibility Study, 2008, interviews with Marysville and Triangle tourism operators


Marysville provided the core tourist amenitiesA key tourist stopping point and majority of tourist beds in the region

The main street in Marysville was a central point for food, ski hire and shopping

The main street in Marysville was a central point for food, ski hire and shopping

~80% of tourist accommodation was located in Marysville

~80% of tourist accommodation was located in Marysville

0

500

1,000

1,500

26%

340

Confer-ence

centres1

38%

500

B&B and motels

15%

200

Camp2

80%

1,040

Total Marys-

ville

20%

260

Triangle (other)

100%

1,300

Total MAT

Estimated number of visitor bedsInitial post-fire assessment indicated more beds may

have been destroyed3

1. Maryland Country House, The Cumberland Marysville, Kooringa Resort 2. ESA Camping and Conference Centre 3. See Business Bushfire Survey, Feb 2009 Note: No single authoritative data source for number of beds in the region. The numbers are current best estimates only, and may undercount a few accommodation facilities in the wider TriangleSource: Murrindindi EDS 2003-08; Accommodation websites; Australian Camps Association's Guide to Camps; GoogleMaps; GoogleStreetView; BCG analysis

Bakery

Tower Motel

Patisserie

Keppel's HotelThe Cumberland

Ski Hire

Pizza

Art Gallery

Craft Gallery

Christmas Shop

Real Estate

Post Office

Magnolia HouseMarysville Motel

Ski Hire Village Walk

Some other B&Bs are dependent on

conference centres for overflow


Visitors to Lake Mountain contributed ~40% of total spend in Marysville

335

283

256

6

13

0

10

20

30

40

Lake Mountain1

Conferences 2 Leisure -other3

Visitor (total) Part timeresidents

Visitors and part time residents

Permanent residents

Estimated total spend4

Spend per year ($m)

Estimated annual spend by segment in Marysville

17%% of total spend 100%15%85%10%75%18%40%

On-mountain revenue was ~$1.9m in 2008 (not included here)

1. Visitor spend in Marysville only, excludes direct spend on Lake Mountain (~$1.9m) 2. Excludes Lake Mountain and other leisure visitors 3. Excluding conference market, includes events 4. Doesn't include small, incidental expenditure from regional residents shopping in Marysville. Note: numbers are estimates only, and have been rounded to avoid misleading precisionSource: Lake Mountain Annual Reports; MOCA-BCG resident survey; Murrindindi Shire Council Rate Data; Business Bushfire Survey; interviews with local business owners; ABS; BCG analysis

1 2 3 4


Lake Mountain is positioned as a Nordic skiing and "snow play" resort

Lake Mountain is Melbourne's closest and cheapest resort

Lake Mountain is Melbourne's closest and cheapest resort

It attracts up to 150,000 Nordic skiers and snow players a year

It attracts up to 150,000 Nordic skiers and snow players a year

$59$96 $97 $97

$8

386377

173

120

0

40

80

120

160

200

240

0

100

200

300

400

$12$20

Lake Mountain

$8

$67

Mt BawBaw

$8

228

$104

Mt Buller

$8

$105

Mt Hotham

$8

$105

Falls Creek

LHS - Lift ticket

LHS - Gate fees

RHS - Distance from Melbourne

Cost per person ($) Distance from Melbourne (km)

Seasons

Visitor profile

Facilities

Snow season: Mid June – Early September, but snow is unreliableSpring Flower season: November – January

Snow play (beginners and family snow experience), and Nordic skiers

No ski lift or winter tourist accommodation on the mountainSki shop and licensed cafe/bar

Activities

Winter: Nordic skiing, tobogganing, snow play, snow tubing, sled rides and snow shoeing, lessons at Lake Mountain Ski SchoolSummer: 37kms of trail for bush walking and biking

Winter visitor numbers

Average: Over 100,000 visitors per yearBest years: visitor numbers can reach 150,000

Being only 20 minutes away from Marysville, much of its visitor spending happens in Marysville

Note: Lift ticket cost and Lake Mountain trail fees are charged per person. Gate fees assume car of four people. All prices are for peak periodsSource: "Sustainable Alpine Resorts - A framework for discussion", DSE May 09; www.ozski.com; stakeholder interviews; BCG analysis

1 2 3 4

Lake Mountain


The conference market drew high spending visitorsThe market was concentrated in three major operating guesthouses

Note: Numbers are represent estimated magnitude only. All three conference centres were destroyed by the firesSource: Interviews with local businesses and hotel chain operators; Websites; International Association of Conference Centres; Travel agency websites; Melbourne Convention and Visitors Bureau;BCG analysis

Three major guest houses in MarysvilleThree major guest houses in MarysvilleConference delegates accounted for ~5% of

Marysville visitor numbers, but ~20% of spending Conference delegates accounted for ~5% of

Marysville visitor numbers, but ~20% of spending

Capacity: 43 rooms including 9 deluxe (~100 beds)Facilities: 5x conference rooms, indoor pool, sauna, day spa, gym, restaurant, tennis, billiardsAverage price/night: ~$220-300Owner: Simon Cuzens

Capacity: 62 rooms (150 beds)Facilities: 7x conference rooms, indoor pool and spa, high-end restaurant, private tennis courtAverage price/night: $200-250Owner: Michael McNamara

Capacity: Kooringa: 58 rooms (~100 beds)Facilities: 3x conference rooms, Tulips Restaurant, indoor pool, gym, lawn bowls stadium, tennisAverage price/night: ~$120Owner: Vaz Hovanessian

The Cumberland Marysville

Maryland Country House

Kooringa

"Business events industry is one of the highest yielding tourism segments because of

high per-delegate spend" – Melbourne Business Events Industry Monitor

5

20 Conference delegates

0

100

10

20

% of total

95

Number of visitors

80

Spend ($)

Other visitors

1 2 3 4

Conference

Number is higher if leisure visitors

staying at conference centres

were included


Marysville also benefited from other leisure visitors

A wide range of leisure visitors ...A wide range of leisure visitors ... ... drawn to a collection of 'things to do' in the region... drawn to a collection of 'things to do' in the region

Taggerty

Buxton

Marysville

Narbethong

To Thornton & EildonTo Alexandra

Black Spur

Cathedral Range State Park

Horse-riding

Fishing

Waterfalls

Scenic lookoutpicnic area

Mountains

Key

Food/Wine

"We get the Grey Nomads up here, typically mid-week"

"Mature age groups come for the gardens and natural beauty"Seniors

Families

Car clubs and bike enthusiasts

Nature-based tourists

Couples and other small

groups

"We got a recreational and outdoor adventure crowd in Summer....the

adventure market is very important"

"The strong basic tourism products were B&Bs, honeymoons, old guest houses

for couples and groups of friends"

"We got lots of families, especially on weekends and school holidays"

"The streets were filled with motorbikes who came up to ride the Black Spur"

Source: Interviews with community and tourism bodies, 'Touring Route Feasibility Study: Yarra Valley-North East Victoria' Draft July 2008; Marysville-Lake Mountain leisure map (Survey and Mapping Victoria), BCG analysis

1 2 3 4

Leisure - other

"Horse-riding was a popular pastime"

Golfing


Marysville part timers are important contributors to the town, accounting for 10% of the local economy

Part timers have been drawn to the region for its township and natural

surrounds

Part timers have been drawn to the region for its township and natural

surrounds

Part timers are important to Marysville's population,

making up half of rate base ...

Part timers are important to Marysville's population,

making up half of rate base ...... and are spending on average $13k per year (per household)

... and are spending on average $13k per year (per household)

0 20 40 60

21%Natural attractions

16%Quaintness of town

16%Clean air, water etc

16%Small size of township

11%Lake Mountain

4%Tourism/visitors

3%Not near Melbourne

3%Investment returns

1%Local business/farm

9%Other1

Reasons for owning properties in the region

Number of responses

0

100

200

300

400

500

100%

~480

Total property owners

Number of properties2 (rate base)

~50%

~230

Part time

50%

~250

Local residents

138

5

0

5

10

15

Visiting spend3

Main-tenance4

Total spend

Spend per household ($k pa)

1. Includes: ex-locals/friendly community (8), close proximity to Melb/easy access (6), retirement plan/strategy (2), sports – golf, walking tracks etc (2) etc 2. Includes vacant land 3. Spend in Marysville during each visit (eg, groceries, eating out, petrol, etc) 4. Local spend on property maintenance (eg, Council rates, household maintenance, improvements, etc)Note: survey responses n = 61. Number of properties owned by local residents from Council Rate Base, number of part timers is an estimate from Graeme Brown from MMT, which is slightly lower than an estimate from Council's rate data. Rate data not directly used for part timers because its classification was too expansive.Source: Murrindindi Shire Council Rate data; MOCA-BCG Local Resident Survey, May 2009

1 2 3 4

Part timers

Together makes up 10% of the Marysville economy


Contents






Black Saturday fires had a devastating impact on Marysville and the Triangle region

PeoplePeople AttractionsAttractions Local amenitiesLocal amenities ForestryForestry AgricultureAgricultureAccommodationAccommodation

Over 40 people lost their lives

Over 90% of residents in

Marysville were displaced as

almost all homes were destroyed

by the fire

Many have left the area and are living elsewhere

Fire damaged key tourist attractions,

resulting in closure of

Steavensons Falls, Lady Talbot

Drive, and Bruno's Garden

Most infrastructure on Lake Mountain

also lost

Key amenities and essential

services in Marysville were destroyed (eg, Police station,

post office, shops, supermarket and

cafes and restaurants)

Almost all commercial beds were destroyed in the Triangle area,

including three conference

centres

Most of the high value ash species in the region were burnt, and local sawmills were destroyed in Narbethong

Short term imperative for

salvage

Loss of fencing, equipments, shelters and

livestock.

Aquaculture also impacted, as the

fish stocks perished

Source: VBRRA 100 Day Report; Business Bushfire Survey (Murrindindi Shire Council); Website searches


The economic and physical impact of the fires was concentrated in Marysville, but impact on wider region

Damage to economic infrastructurewas concentrated in Marysville ...

Damage to economic infrastructurewas concentrated in Marysville ...

12

40

52Before fire

Destroyed

After fire

7

11

18Before fire

Destroyed

After fire

6

2

8

After fire

Destroyed

Before fire

7

2

9Before fire

Destroyed

After fire

Marysville

Narbethong

Taggerty

Buxton

20%

25%

60%

80%

X% % of commercial property destroyed

Commercial properties (#) Direct impact around Marysville• Almost all shops on the main street were destroyed

(over 30 businesses)• Most accommodation facilities were destroyed• Key local attractions severely damaged• Other community infrastructure, such as the primary

school, police station, visitor info centre etc destroyed

Direct and indirect impacts in the rest of the Triangle• Some accommodation facilities destroyed (eg, the

camp and cottages in Narbethong)• Some local businesses were lost (eg, Things of Sand

and Stone in Narbethong, trout farms damaged)• Timber mills lost (Narbethong)• Other facilities were damaged by the fire (eg, a Youth

Training Centre in Buxton)• Businesses impacted by second-tier effects, for

example business disruption with loss of Marysville tourism trade1

... with accommodation facilities and the Main Street of Marysville being hit the hardest

... with accommodation facilities and the Main Street of Marysville being hit the hardest

1. For example, the butcher in Alexandra is severely affected as much of their business was driven by large commercial orders from the conference centres and guest houses in Marysville.Source: Council Rate data; Website searches; Interviews with local community

Marysville was the centre of

economic activity, with the greatest number of businesses


Revitalised tourism will be key to regional economic recoveryOther industries lack the opportunity or size to provide the backbone for economic recovery

Some high growth opportunities in niche segments, but unlikely to

provide economic backbone

Up to 2 years of salvage opportunity, hence critical for

short term employment;Limited in longer term

Limited by drought and high land prices

Niche product opportunities

Potential 20-50% economic increase from pre-fire levelsFuture

opportunities

Depends on number of residents and visitors returning to

the region and availability of suitable industrial land / facility

40-60 years for ashExpect most output to return in 1-2 years

Variable depending on private investment and public supportTime to return

Varies based on location. Suffers from significant indirect impact

through loss of business

Majority of high-value stands from 1939 regrowth destroyed

Some loss of livestockDamage of sheds and equipment

5,000km of fence destroyed

Nature landscape damagedVisitor amenities destroyed

Almost all accommodation lost

Degree of damage

Collectively important, with some industries complementing

tourism (eg, aquaculture, local produce etc)

Significant employer in the wider triangle

Decreasing over the last two decades due to high land prices

and increased farming costs (drought, etc)

~50% of the triangle economy (by employment)Economic

importance pre-fire

Source: ABS; ABARE, VicForests; Poyry; Stakeholder interviews; BCG analysis

Tourism Agriculture Other industriesForestry

Central to economic recovery Evolving as before Focus on salvage Niche opportunities


Contents






The new vision for Marysville and the Triangle developed from stakeholder views, case studies and industry experts

Stakeholder views Lessons from other successful towns

Tourism Victoria and industry experts

A vision for the new Marysville and Triangle

29219720-45-PRES-20090623 Final handover document.ppt

Stakeholders and the community have highlighted strengths and weaknesses of the Marysville tourism offer

Perceived strengths are Lake Mountain, accommodation and natural attractionsPerceived strengths are Lake Mountain, accommodation and natural attractions

Perceived weaknesses are lack of brand and quality visitor products


"The town was looking tired, lacked investment to

keep it up to scratch"

"Lake Mountain resort, a 'snowball chuckers resort', is a key drawcard"

"Tourism suffered from seasonality"

"Proximity to waterfalls, walks and natural attractions is

another drawcard"

"The whole area has always suffered from a branding hole ... compared with the Yarra Valley,

for instance"

"Nature based tourism won't attract dollars to the town"

"The town could have done with a couple of more good

shops/restaurants"

"Strong base of return clients (leisure) but not growing"

"Before the fires, few of the businesses were

successful"

"Marysville's strength was the number of beds

it had"

"Marysville's upside is that it is close to Melbourne,

but different"

"The Australian tourism push is for the experience traveller, but we have not had the products to attract them

here"

"Marysville was a unique place with English character"

"People enjoyed escaping to a town with an alpine

village feel"

"It was doily-ville, with old fashioned tourist assets, not high-tier ... it didn't

work too well in the market"

"The strong basic tourism products of the area are B&Bs, honeymoons, old guest houses – we give people the

warm, homey accommodation""Marysville suffered from

lack of product"

Source: BCG Interviews with Marysville business owners, local representatives and tourism groups

Focusing on the strengths whilst bridging gaps in Marysville’s tourism offerings is key

"Quaint and cute look of village and houses"


Four common themes among successful regional tourist destinations

Market-leading destination image branding concept and marketing collateral

Strong events portfolio, market-leading food & wine events, with year-round arts and culture offering

Quality product across core dimensions, with market leading offer in food & wine)

Has leveraged regional attributes to develop a strong destination brand image

• Marketing builds associations around desired image and enhances positioning

Yarra Valley

Quality product across core dimensions (nature-based, food & wine, arts & culture), with strong 'history' product

Quality product across core dimensions (nature-based, food & wine, arts & culture)

2. Quality product

Targeted strategies to multiple consumer segments

• Customised offering across segmentation profiles

Online capabilities and centralised reservation services

• Online product bundling• Showcases regional offering

Full events program with branded "umbrella" events ie,

• High Country Festival

Successfully links town with on-mountain services, creating co-branded imageMarkets products together, year-round marketing strength

Mansfield-Mt Buller

Central information centre, website, reservation services

• Comprehensive descriptions of all local attractions, accommodation

• Customised offerings to fit customer segments

Strong events portfolio year-round, developing iconic events and linking them to unique local characteristics and speciality products

Created strong regional network of attractions and businesses

• All positioned around core brand image and "historic" associations

• Regional attractions have resonance with core brand image

Beechworth

4. Single voice to market

3. Targeted events

1. Strong brand and marketing

Sources: Mansfield-Mt Buller website, Visit Victoria Marketing Materials, Mansfield Shire Council, Beechworth Official Tourism Site, Visit Victoria Website, Tourism Victoria Regional Tourism Strategy Documents and Annual Reports, BCG Interviews with Tourism representatives


• Shift away from domestic tourism to other categories (eg, home entertainment, renovations)• Changes in the labour market including longer working hours and stockpiling of leave. Competition

for labour has also intensified• Demographic shifts have increased demand for new and exciting tourism experiences. Key factors are

Australia's aging population and the emergence of Gen X and Gen Y

Consumer

• Climate change has significant implications for tourism given its reliance on the natural environment, with consumer pressure for the industry to adopt more sustainable practices

• Increase in the number of natural crises such as drought, bushfire and flood presents risks to regional tourist authorities

Environmental

• Increase in outbound travel due to perceived prestige and value for money• Growth in LCCs² and route networks has made air travel more accessible to more people • Increasing competition from other domestic and overseas destinations, who have been more aggressive in

developing tourism experiences to better match consumer needs

• Emergence of new media has made consumers more savvy in selecting destinations, and rise of user-generated sites makes it harder to influence them via traditional marketing

• Global financial crisis slowing discretionary spending and may impact tourism investment• Decline of the Australian dollar increases attractiveness of Australia to overseas visitors, and Australians may

switch to domestic destinations

Key challenges impacting regional tourism

Competitive

Technological

Macro/ Financial

Category

Tourism Victoria has identified challenges facing regional towns

1. This phenomena has been occurring nationally and internationally 2. Low Cost CarriersSource: Regional Tourism Action Plan, 2009-2012, Tourism Victoria Strategy Materials

There has been progressive decline in domestic tourism since 20001. People are taking fewer trips, spending fewer nights away and spending less per trip


Imagine the new Marysville ... an enticing tourist experience!

Discover the new Marysville and Lake Mountain experience ...

Discover the new Marysville and Lake Mountain experience ... ... and get lost in the Triangle... and get lost in the Triangle

Reconnect Relax Revive Explore Escape Excite


Some strengths and weaknesses of the pre-fire Marysville tourism offer

Perceived strengths are Lake Mountain, accommodation and natural attractionsPerceived strengths are Lake Mountain, accommodation and natural attractions



"The town was looking tired, lacked investment to

keep it up to scratch"

"Lake Mountain resort, a 'snowball chuckers resort', is a key drawcard"

"Tourism suffered from seasonality"

"Proximity to waterfalls, walks and natural attractions is

another drawcard"

"The whole area has always suffered from a branding hole ... compared with the Yarra Valley,

for instance"

"Nature based tourism won't attract dollars to the town"

"The town could have done with a couple of more good

shops/restaurants"

"Strong base of return clients (leisure) but not growing"

"Before the fires, few of the businesses were

successful"

"Marysville's strength was the number of beds

it had"

"Marysville's upside is that it is close to Melbourne,

but different"

"The Australian tourism push is for the experience traveller, but we have not had the products to attract them

here"

"Marysville was a unique place with English character"

"People enjoyed escaping to a town with an alpine

village feel"

"It was doily-ville, with old fashioned tourist assets, not high-tier ... it didn't

work too well in the market"

"The strong basic tourism products of the area are B&Bs, honeymoons, old guest houses – we give people the

warm, homey accommodation""Marysville suffered from

lack of product"

Source: BCG Interviews with Marysville business owners, local representatives and tourism groups

Focusing on the strengths whilst bridging gaps in Marysville’s tourism offerings is key

"Quaint and cute look of village and houses"


Four common themes among successful regional tourist destinations

Market-leading destination image branding concept and marketing collateral

Strong events portfolio, market-leading food & wine events, with year-round arts and culture offering

Quality product across core dimensions, with market leading offer in food & wine)

Has leveraged regional attributes to develop a strong destination brand image

• Marketing builds associations around desired image and enhances positioning

Yarra Valley

Quality product across core dimensions (nature-based, food & wine, arts & culture), with strong 'history' product

Quality product across core dimensions (nature-based, food & wine, arts & culture)

2. Quality product

Targeted strategies to multiple consumer segments

• Customised offering across segmentation profiles

Online capabilities and centralised reservation services

• Online product bundling• Showcases regional offering

Full events program with branded "umbrella" events ie,

• High Country Festival

Successfully links town with on-mountain services, creating co-branded imageMarkets products together, year-round marketing strength

Mansfield-Mt Buller

Central information centre, website, reservation services

• Comprehensive descriptions of all local attractions, accommodation

• Customised offerings to fit customer segments

Strong events portfolio year-round, developing iconic events and linking them to unique local characteristics and speciality products

Created strong regional network of attractions and businesses

• All positioned around core brand image and "historic" associations

• Regional attractions have resonance with core brand image

Beechworth

4. Single voice to market

3. Targeted events

1. Strong brand and marketing

Sources: Mansfield-Mt Buller website, Visit Victoria Marketing Materials, Mansfield Shire Council, Beechworth Official Tourism Site, Visit Victoria Website, Tourism Victoria Regional Tourism Strategy Documents and Annual Reports, BCG Interviews with Tourism representatives


• Shift away from domestic tourism to other categories (eg, home entertainment, renovations)• Changes in the labour market including longer working hours and stockpiling of leave. Competition

for labour has also intensified• Demographic shifts have increased demand for new and exciting tourism experiences. Key factors are

Australia's aging population and the emergence of Gen X and Gen Y

Consumer

• Climate change has significant implications for tourism given its reliance on the natural environment, with consumer pressure for the industry to adopt more sustainable practices

• Increase in the number of natural crises such as drought, bushfire and flood presents risks to regional tourist authorities

Environmental

• Increase in outbound travel due to perceived prestige and value for money• Growth in LCCs1 and route networks has made air travel more accessible to more people • Increasing competition from other domestic and overseas destinations, who have been more aggressive in

developing tourism experiences to better match consumer needs

• Emergence of new media has made consumers more savvy in selecting destinations, and rise of user-generated sites makes it harder to influence them via traditional marketing

• Global financial crisis slowing discretionary spending and may impact tourism investment• Decline of the Australian dollar increases attractiveness of Australia to overseas visitors, and Australians may

switch to domestic destinations

Key challenges impacting regional tourism

Competitive

Technological

Macro/ Financial

Category

Tourism Victoria has identified challenges facing regional towns

1. Low Cost Carriers 2. This phenomena has been occurring nationally and internationally Source: Regional Tourism Action Plan, 2009-2012, Tourism Victoria Strategy Materials

There has been progressive decline in domestic tourism since 20002. People are taking fewer trips, spending fewer nights away and spending less per trip


Imagine the new Marysville ... an enticing nature-based tourist experience!

Discover the new Marysville and Lake Mountain experience ...

Discover the new Marysville and Lake Mountain experience ... ... and get lost in the Triangle... and get lost in the Triangle

Reconnect Relax Revive Explore Escape Excite


Lifting these metrics requires ...Lifting these metrics requires ...

Marysville can bridge the gap to higher performing tourist towns by providing a more enticing visitor experience

Day trip expenditure

Overnight expenditure3

+

Number of Day trippers (# k)

Avg spend per daytrip ($)

Visitor expenditure

f Avg spend per night ($)

443179370522

2,443

0

2,000

1st Q1 2nd Q 3rd Q 4th Q M’dindi

61707998142

0

100

200


253107156216

962

0

1,000


918693113162

0

200

3rd Q 4th Q M’dindi2nd Q1st Q2

Visitor numbers and expenditure - Vic regions by quartile: 2007

1. Top performing regions for day trip visitor numbers include Mornington Peninsula, Surf Coast, Macedon Ranges, Ballarat and Bendigo. 2. Top quartile LGAs (Local Government Areas) for overnight stays include Hepburn ($162), Indigo ($151), Ballarat ($128), Queenscliffe ($130) 3. Overnight visitor expenditure is also a function of duration of stay. This is not depicted here as it is not a critical lever in increasing visitor expenditure (values are fairly similar across Vic) Note: Regions that do not have a regular visitor market not includedSource: Tourism Research Australia; Local Government Area Profiles 2007; Tourism Victoria Domestic Visitation Report and Expenditure Report, June 2008; Tourism Victoria Research Unit

f

• More summer activities• A rich year-round events calendar• Ensure consistent snow in winter, eg

effective snow-making

• Quality product offering, including arts and culture, food and wine and complementary retail

• A range of overnight accommodation options, including at least one anchor tenant conference centre

• A basket of 'things to do' to draw longer stays eg. a range of activities and attractions

• Quality product offerings, including dining, spa, golf, and other entertainment experiences

Number of overnighters (# k)

pre-fire

pre-fire

pre-fire

pre-fire


Recovery will involve effectively targeting the needs of multiple segments – Lake Mountain, leisure and conference

100%

$

Lake Mountain

80%

50

0%

150

Proportion of visitors

0

100

20% 40%

ConferenceNon-Lake Mountain / leisure

60%

1. Tourism Victoria / Roy Morgan Values Segment 'Visible Achievers' and 'Socially Aware' 2. Nature-based preferences for these value segments include natural scenery, national parks, walking, wilderness 3. Arts & Culture include galleries, theatre, music performances, historical places, museums, cultural events and festivalsSource: Tourism Victoria / Roy Morgan Value Segments Research May 2009, BCG Interviews with Tourism operators, BCG Analysis

Potential

Current

Opportunities to increase value for visitor groups

Conceptual

Spend per visitor

Attract greater numbers of 'high value' segments, eg Visible Achievers seek food and wine experiences, scenic weekend getaways, and total rest and relaxation, while Socially aware like weekend escapes, nature-based 2 experiences and feeling in touch with culture3


The new Marysville can provide an improved economic position for local businesses and the wider community

0

10

20

30

40

50

45

50%

15%

More consistent

snow season

10%4

2

More quality tourism products

More quality events

50%

100%

10%

2 35

Total prize

Visitor spend per year in Marysville ($m)

20%

Conference market

1310%

Lake Mountain

Part-time & regulars

3

100%

244

Non Lake Mountain

Total expected

15%

20%

More summer activities

Impact of different levers on tourism market

90% return180% of visitors

80% of visitors

Assumptions used

+50% spend pp for non

Lake Mountain visitors

+30% snow visitors

50 events2, $100 spend per event

visitor

Summer visitor 75% of winter, +20% non

Lake Mountain

visitor

Pre-fire level

1. MOCA-BCG Resident Survey results 2. Compared to Beechworth (66 events)Note: "LM" = Lake Mountain. Cross products are allocated pro rataSource: Tourism Research Australia Local Government Area profiles; BCG estimates; BCG analysis

Rebuilding Marysville's pre-fire attractions Attract additional visitor segments


Contents






Forestry

Agriculture

Establish an improved nature-based tourism economy

Implement a phased recovery approach with

clear milestones

Provide incentives to stimulate reconstruction

- assets and skills

Drive recovery through an economic

leadership team –supported by the local

community

Broad amenities

Attractive events

calendar

Competitive brand promise

Coordinated marketing and

promotion

Effective, integrated

tourism organisation

Keynatural

attractions

Complementary product set Single voice to market

Five key actions are needed for Marysville's economic recovery

Marysville and Triangle economic recovery strategy

1 2

3 4 5


Future success depends on rebuilding core product to retain loyal visitors, and an improved offering to attract new visitors

ForestryAgriculture


Implement a phased recovery

approach with clear milestones

Provide incentives to

stimulate reconstruction -assets and skills


leadership team –supported by the local community

Broad amenities

Attractive events

calendarCompetitive

brand promiseCoordinated

marketing and promotion

Effective, integrated organis-

ation

Keynatural

attractions

Complementary product set Single voice to market1 2

3 4 5

Broad amenities

Attractive events calendar

Key natural attractions

Rebuild and retain loyal visitors, and attract new visitors

Complementary product set

• Quickly re-establish key natural attractions– Lake Mountain– Steavensons Falls

• Extend "product"offer– Summer offering on

Lake Mountain – Regional touring trail

etc

• Rebuild at least one conference centre as an anchor tenant

• Develop an enhanced integrated visitor experience (Retail, Food and Wine, Arts and Culture)

• Restore basic visitor amenities

• Explore feasibility of an 'ecologically sustainable' town model

• Create strong multi-faceted events calendar underpinned by an iconic event

1


Quickly re-establish natural attractions and extend theregion's natural product offering

Quickly re-establish the natural attractions at Lake Mountain and Steavensons Falls ....Quickly re-establish the natural attractions at Lake Mountain and Steavensons Falls ....

Nature based activities are key to the area's tourist appeal ...

... so Lake Mountain and Steavensons Falls, as the biggest natural attractions, must reopen at their previous capacity (preferably by end of 2010)

1. International EcoTourism Society (www.ecotourism.org); 'Ecotourism and Sustainable Development' Honey, M 2. 'The new wave' Mace, H 2008 3. Tourism Australia Market Segment Profiles 2007 Source: BCG analysis; Tourism Victoria Nature Based Tourism Strategy Materials; 'Spa, Health and Wellness Tourism' Supapol and Barrows, (The Innovation Journal, vol 12(3), 2007); Stakeholder interviews

Accommodation and amenities Events Branding Marketing and

promotion Reception

Product Enablers

"Proximity to waterfalls, walks and natural

attractions is a drawcard"

"Marysville is special because is it a peaceful getaway in a natural environmental setting"

... and extend the region's product offering to attract new visitors

... and extend the region's product offering to attract new visitors

Extend natural attractions to capitalise on continued demand for nature-based experiences

• Since 2004, nature-based tourism has increased three times faster than the industry1, with a 'search for authenticity' and a desire to live more 'experiential' and 'active stays'2

• Shift in tourist demand from 'sea, sand, sun' to 'lore, landscape, leisure'2

• Growth in demand across 'nature-based' categories3

– Outdoor recreation, agri-tourism– Alternative experiences, "spa and wellness"

Lake Mountain must aim to replicate the success of Mt Beauty and Mt Buller, with a menu of nature based summer activities to cater to wide range of tourist segments

• Nature-based activities include: half marathon, hang gliding championships, fishing, bushwalking, horse riding, golf

Complemented by a regional touring trail, which needs some basic infrastructure investment

"Needs a kick-up but the basic structure of a touring route is in place"

- Murrindindi Shire Council rep

"The region needs better quality product, customer service, signage and marketing to create a touring route"

- Murrindindi Shire Council rep14219720-45-PRES-20090619 Final handover document.ppt

Key tourism products in the region were nature-based

• Quaint township• Leafy surrounds• Pretty gardens

• 18 Hole Course• Attached lawn bowls

facilities

• 48-km scenic loop-drive

• Rivers, forest and waterfalls

• Over 200 sculptural works in beautiful garden setting

Township

Bruno's Sculptures Garden

Lady Talbot Drive Steavensons Fall

• Tallest falls in the state

• Floodlit until midnight each evening

• Avg 150,000 visitors p/a

• Nordic skiers and snow players

Lake Mountain Ski Resort

Country Golf and Bowls Club

Marysville – Lake MountainMarysville – Lake Mountain Broader TriangleBroader Triangle

• National Park• Beginners rock

climbing• Camping, hiking

• Australian Adventure Experience

• Camping and leadership facilities

• Trout and Salmon Farms (Buxton, Marysville)

• Recreational Fishing

• Bundurrah Trail Rides

• Kingbilli BYO horse Taggerty

• Avalon Yarck

Cathedral Range

Equestrian

Fishing Food and Wine

• Two vineyards• Pubs and

roadhouses• Guest house cafes

• Hiking and biking trails

• Driving (Black Spur, 4WD trails)

Hiking and Biking Trails

Adventure Sports

Source: MRTA references; Yarra Valley/Northeast Victoria Touring Route Feasibility Study, 2008, interviews with Marysville and triangle tourism operators


An 'ecologically sustainable' town model wouldcomplement the nature-based tourism strategy

1. According to Building Commission 2. The additional amount unlikely to be high, and can be largely part of existing marketing spend 3. Assumes no preference over building designs and materialsNote: MATDG survey n = 13 (One response selected "Other" with the description: "encouraging homes to be built 6 star plus and community infrastructure built to efficient design")Source: Research report summary on the direct cost of compliance with the 5-star standard for new housing, Building Commission (2005); interview with builders; MATDG-BCG survey responses

Appropriate choice will depend on community views and financial viability

Car

bon

foot

prin

t

Events Branding Marketing and promotion Reception

Product Enablers

Mandatory case

Close-loop zero emission

community

Base case + high visibility initiatives

DescriptionsDescriptions

• All new homes in the Triangle are at least 5-star energy rated• Leave open for those wishing to (and can afford to) invest in building

homes beyond 5-star rating

• Invest in cutting-edge technology and experiment with yet-to-be-tested concepts to achieve zero emission for the town, including close-loop heating, no petrol vehicles, all energy needs generated by solarpanels etc

• Show-case town with all homes built to 6-star rating• Community infrastructure (eg, street lighting) built to energy

efficient designs• A strong waste management policy in place

Mandatory case, plus• Additional high-visibility initiatives to complement nature-based tourism

(eg, signage and communications, recycling/waste-management policies, energy efficient bus to transport visitors to Lake Mountain etc)

• Marketing campaign promoting the region's eco credentials

Incremental costsIncremental costs

Minimal• 21-5% increase in costs compared

with 2-3 star rated buildings1

Low• ~21-5% more in building cost • Marketing spend2, and • Minimal council outlay for

signage/communications

Medium• 10-15% increase in costs compared

with 2-3 star rated buildings3

High/unknown• No readily available cost benchmark

in Australia

Models to rebuild town

Models to rebuild town

6-star model community

Minimum level that add value to a nature-based tourism strategy


A broad range of infrastructure and amenities must return to support Marysville's economy

Private infrastructure Public infrastructure

1. Over and above required utilities such as water, electricity, telecommunications, sewerage, and roads/transport/parking 2. Mobile library, maternal health centre etc.Source: BCG analysis; Stakeholder interviews May 2009; Discussion with DPCD Planning Unit

Infrastructure required1 to support Marysville's future economy

Towninfrastructure

Visitor infrastructure

Communityinfrastructure

Visitor infrastructure

ConferencesVisitor centre &tourist signage

Parking and publicrest facilities

National Parks &natural attractions Conference Centre

Arts & Culture facilityAccommodation Visitor attractions

Common town infrastructure

Restaurants

Bakery/PatisserieBanking facilities

Retail mix

PubPost office

Medical services Petrol station

Ski/Lake Mountain

Ski hire

Ski fields, facilities,cafes

Restaurant

Community infrastructure

Primary School

Emergency services

Sports/recreation, including golf club

Shared cultural / religious facilities

Community centre

Other2

Swimming pool Walking and cycling tracks

Kindergarten and childcare

Gardens and parks

General Store

Events BrandingCoordinated


ReceptionKeyattractions

Product Enablers

Opportunity to prescribe retail mix to ensure offering complements and adds value to the

tourist experience

Town infrastructure supports both locals

and visitor segments, but must be developed in

conjunction with community

infrastructure to provide an integrated

economic unit

At least one conference centre

(with day spa) must return quickly,

supported by a quality food and wine

experience

Community infrastructure –preferably multi-

purpose- to support social fabric for

permanent residents

Amenities to facilitate visitation and support

tourist offering

Cafes

Complementary food and wine experience is important to create a successful tourism

offering, must be open for business to support visitor needs across all seasons

1

2

3

6

45


Key success factors for redeveloping a viableconference centre in Marysville

Source: Interviews with local conference centre operators and main chain operators; BCG analysis

Facility size

Facility quality

Tourist attractions

Key lessonsKey lessons ImplicationsImplications

• Scale brings management sophistication and marketing strength (eg 60 room minimum)

• Occupancy rates positively correlated to size of facilities (70%+ occupancy)

• High quality facilities match high spend profiles of delegates

• Occupancy rates positively correlated to quality of facilities

• Delegates regularly utilise attractions outside conference facilities

• Organisers consider regional tourism products and activities when choosing venues

Focus on enticing large, anchor tenants to invest

Focus on quality facilities with a range of additional services (eg, spa,

golf), with 4 star+ ratings

Ensure Marysville regains key tourism products (all year round)

Local amenities

• Local shops and good places to eat compliment the associated high end leisure market

Rebuild the town centre with quality restaurants and local shops, open to

support visitor needs

Clientele focus

• While business conferences decline during a downturn, government spend is stable

• Upper end of leisure market compliments conference through holiday and weekends

Initial focus on government clients for demand baseload, supplemented by

business and high-end leisure visitors

1

2

3

4

5

"Any new guesthouse would have to be minimum 4.5 stars"

- MV operator

"Delegates need interesting local activities to do both during and outside working hours"

- Major chain operator

"Need an anchor tenant, with underwritten [guarantee]"

"Dedicated conference centres are going broke left right and centre"

- Conference centre owner

"Food, wine and shopping are more likely to attract the money"

- MV operator

Events Branding Marketing and promotion ReceptionKey

attractions

Product Enablers

Needs to be competitive with other conference facilities within 90 mins of Melbourne


The town must have quality shopping, food and wine, arts and culture products to create an integrated visitor experience

Strengthen Arts and Culture offeringStrengthen Arts and Culture offering

Develop tiered Food and Wine experienceDevelop tiered Food and Wine experience

Successful tourist towns in regional Victoria deliver arts and culture experience

• Opera in the Alps (Beechworth), Port Fairy Folk Festival, Castlemaine State Festival

• Galleries, Festivals, Museums, Events

Visitors to cultural events are a potentially lucrative segment,with higher income profiles and strong repeat visitation rates

30%24%

Lowest Second Third Fourth Highest

54% of Music and Theatre visitors are in the two highest income quintiles

25%30%

Lowest

55% of Arts and Gallery visitors are in the two highest income quintiles

Second HighestFourthThird

Quality food and wine forms an essential part of any successful tourist offering in regional Victoria

• Develop variety of quality food experiences (local produce, organic, farm gate, cellar door, restaurants, cafes)

Culinary tourism is an increasingly popular pursuit in itself, ie• Farmer's markets and food festivals2

• Destination dining (eg Dunkeld)• Harvest trails and local produce• Cooking classes (eg Myrtleford)

Build complementary retail mixBuild complementary retail mix

A quality shopping experience is essential to sustain competitive parity in regional tourist market1

• Upmarket and modern product can help reposition town and drive increased demand / spend (i.e Dandenong Ranges)

Enhance visitor experience and facilitate increased visitor spend• Attracts higher spending market segments1

Deliver high service quality and product variety• Opportunity to prescribe retail mix of main street to ensure

variety and quality of tourist experience• Service delivery provides experiential benefits

1. Tourism Victoria Market Segment Analysis 'Shopping Tourism' 2007 (attracts high proportions of Visible Achievers, Socially Aware value segments); Journal of Tourism Management 'Shopping experience evaluation' 2. Interviews with Peter Arnold, Regional Farmers Markets and local shire councils with farmers markets. Growing attendance rates at farmers markets (800-1000: avg attendance 'small' country market 1500: avg attendance country market, 2000-2500: larger regional market) and strong repeat visitation (ie, Willunga 41% attend every week, 24% fortnightly/monthly)Source: Australian Bureau of Statistics Data, 4114.0; Attendance at Selected Cultural Venues and Events, Vic, 2005-06; Regional Farmers Markets; International Culinary Tourism Association Reports; 'Culinary Tourism' (Journal of Vacation Marketing, Vol 15, 2009); Interviews with Talbot tourism representatives; Tourism Victoria; Macedon Ranges Shire Council; YVDRRA; BCG analysis

"Good restaurants, cafes, wine, arts, craft and shopping are hugely important to tourism in Victoria"

- Tourism Victoria rep

"A nature-based tourism strategy alone will not attract the dollars"

- Tourist operator

Events Branding Marketing and promotion ReceptionKey

attractions

Product Enablers


A strong events calendar underpinned by an 'icon event' will draw visitors to the Triangle

• Wirreanda Festival• Longest Lunch (single

operator)• Lake Mountain events

– Lake Mountain Sprint– Bullfight Charge– Fischer Elimination

Sprints– Ski races

121010

131110

0

5

10

15Portfolio of events over the year

Jan-Feb

Jul-Aug

Mar-Apr

Nov-Dec

Sep-Oct

May-Jun

111210

0

5

10

15

Jul-Aug

Nov-Dec

Sep-Oct

Portfolio of events over the year

Jan-Feb

May-Jun

Mar-Apr

Source: Murrindindi Shire Tourism Materials; BCG Interviews with tourist operators and Tourism Victoria; Lake Mountain website; Beechworth Official websites; Beechworth Promotional Materials from Indigo Shire; BCG analysis

Accommodation and amenities Branding Marketing and

promotion ReceptionKeyattractions

Product Enablers

Marysville had only 6 events ...Marysville had only 6 events ... ... while Beechworth has 66!... while Beechworth has 66!

• Ned Kelly Weekend• Harvest Celebration• Opera in the Alps• Beechworth Romance

Festival• Golden Horseshoes Festival• Country Craft Markets• Beechworth Oktoberfest • Winery Walkabouts

.......and many more!

The Triangle had a relatively weak events portfolioThe Triangle had a relatively weak events portfolio

Winter

Autumn

Summer

MultipleNature-based

Christmas in JulyCross Country Ski Events

Jul

Nature-basedSnow season kick-offJun

Food & WineFood & Wine

Arts & Culture

Regional Food & Wine ShowFarmer's MarketTheatre Series

May

MultipleFood & WineArts & Culture

Black Spur Rally WeekFarmer's MarketMusic Nights

Apr

Arts & Culture

Food & WineNature-based

Arts & CultureMultiple

Arts & CultureMultiple

Segment

Sculpture TrailArtists in ResidenceSeasonal Produce Cook-off Black Spur Cycle-off

Wirreanda FestivalValentine's WeekendRemembrance Event

Chamber Music FestivalChill in the Hills Event

Event

Mar

Feb

Jan

Illustrative calendar

Iconic Triangle events based

on Black Spur?


A single voice to market is important to support the new tourism economy

ForestryAgriculture



approach





Broad amenities

Attractive events

calendarCompetitive




ation

Keynatural

attractions


3 4 5

Coordinated marketing and

promotion

Effective, integrated

tourism organisation

Competitive brand promise

Single voice to market

• Develop a differentiated brand promise for Marysville and the Triangle

- Relevant to loyal and new visitors

• Create effective central online portal

• Coordinate and target marketing activities

• Up-skill existing operators and recruit additional skills as required

• Engage and unite community behind the new Marysville

• Create a coordinated tourism approach and structure

2

Rebuild and retain loyal visitors, and attract new visitors


A differentiated brand promise is required to attract visitors to Marysville and the Triangle

Source: BCG analysis; Stakeholder interviews

Accommodation and amenities Events Marketing and

promotion ReceptionKeyattractions

Product Enablers

Creating a brand concept for Marysville can capture destination attributes,

and build positive brand associations

Creating a brand concept for Marysville can capture destination attributes,

and build positive brand associations

Objective

Key values, concepts and attributes to incorporate

Cultivate a strong brand personality and destination image

• Captures competitive advantages and unique attributes of the region

• Ensure all players in the tourism industry (both public and private) utilise

• Ensure brand concept resonates with consumers

"alpine village"

"walks and waterfalls"

"iconic town"

• Explore• Nature activities• Natural jewel• Memorable• Mystical, majestic

"dreamscape"

• Escape• Scenic haven• Lake Mountain• Family friendly• Accessible

Opportunity to leverage community sentiment and stored brand equity for future tourism success

Benchmark branding concepts and associations have helped position many Victorian towns, eg

Benchmark branding concepts and associations have helped position many Victorian towns, eg

Dandenong Ranges: 'Visit Make Believe'• Previously seen as old-fashioned, with tired

shops and attractions • Have successfully repositioned and

developed modern product, with desirable destination associations (scenic mountains, quality complementary product)

• Innovative branding concept of "escaping to your own movie set"

Mt Buller-Mansfield: Co-branded alpine image• Create link between town and key mountain

attraction in consumers minds• Communicates regional attributes as a 'hub' of

access, accommodation, events, adventure

Daylesford: 'Live happily ever after'• Has developed strong consumer based

brand equity as indulgent spa and wellness destination

• Strong brand associations of product which complements core spa offer (arts, culture, food, wine and retail)


Central online portal with uniform branding required for consistent marketing and promotion

From an array of sites with a variety of brands and images ...

From an array of sites with a variety of brands and images ...

... to a unified and consistent image within a single brand

... to a unified and consistent image within a single brand

• Route planning• Activity profiling• Package bundling• Map and brochure downloads

Source: Beechworth website (www.beechworthonline.com.au); Marysville websites (www.marysvillevictoria.com, www.travelvictoria.com.au/marysville, www.marysvilletourism.com, Mystic Mountains)

Accommodation and amenities Events Branding ReceptionKey

attractions

Product Enablers

• Central hub of information

• Linked to online booking

• Inviting presentation


Coordinated and capable tourist groups are required to compete in the regional market

Regional Tourism Organisation (RTO): Murrindindi Regional Tourism Association (MRTA)

Alexandra Traders and Tourism Association (ATT)

Kinglake Ranges Tourism & Business Assoc (KRBTA)

Yea & District Tourism Association (YDTA)

Upper Goulburn Food, Wine Culture Group (UGFWC)

Lake Mountain Alpine Resort (LMAR)

Eildon Action

Mystic Mountains Tourism Inc (MMT)

Local Tourism Associations

Yarra Valley and Dandenong Ranges

Murrindindi Yarra Ranges CardiniaNillumbik

A number of tourism organisations operating in the areaA number of tourism organisations operating in the area

Source: Interviews with Tourism representatives local tourism operators, MRTA, Tourism Victoria, Tourism Operators, regional case studies and BCG Analysis

Accommodation and amenities Events Branding Marketing and

promotionKey

attractions

Product Enablers

1. Align tourism stakeholders1. Align tourism stakeholders

2. Build capabilities to deliver2. Build capabilities to deliver

• Build strong service and tourism management capabilities– Acquire and retain skilled human resources– Training to ensure quality and consistency across town

• Promote and reward service excellence• All community members to provide a 'warm welcome' to visitors

"Staff are very hard to find and keep. We have no housing, salaries are typically low, hard to find good managers"

- Conference centre owner

"Visitors need to be serviced well"

"People need to work together and make both time and financial commitments to win the tourist game" - Tourism Vic rep

• A shared vision for the regional tourism strategy• Cooperation and coordination among the various tourism stakeholders /

authorities• High level of engagement to support approach (operators, organisations,

community)• Shared responsibility for tourist brand promise and guest experience

"There's no cohesion in this town –too many small operators and

factions pull it apart"


New skills are required in the Triangle to support a professional, single voice to market

• Operators have professional approach to tourism and show an improved skill-based

• Visitor experience exceeds expectations and meets needs

• Warm tourism reception to all visitors

• Up-skill local operators with professional tourism based skills and capabilities (i.e workshops / programs)

• Includes marketing and promotion capabilities, service delivery skills

Short-term training role to enhance local tourism-based skill set

Visitor experience and service delivery coordinator

Develop and deliver the brand, marketing and promotion strategies for the Triangle

Develop events calendar for the region to increase drive year-round visitation, focussing on improving existing events and developing new events to attract people to the region

Role brief

• Develop regional marketing campaigns to attract desired customers to the competitive brand position

• Work with local operators to create networked tourism industry and increase cross-promotion across Marysville and the Triangle

• Develop a year-round events calendar for the Triangle

• Work with local operators to develop event concepts, using the region's competitive advantages such as nature-based activities, arts and culture, and sub-alpine themes

Example responsibilities

• Differentiated brand for the triangle• Coordinated, consistent and

effective communications campaign• Local support across all marketing

and promotion activities

Marketing and promotion manager

• Number of new people visiting the Triangle for events

• Increased spend in local businesses • Increased occupancy levels at

accommodation providers• One widely-known, iconic event

within Triangle

Events manager

Example Success IndicatorsSkills required


Recovery requires leadership, incentives to build momentum, and a phased implementation plan

ForestryAgriculture



approach with clear milestones





Broad amenities

Attractive events

calendarCompetitive




ation

Keynatural

attractions


3 4 5

Implement a phased recovery approach

Provide incentives to stimulate reconstruction -

assets and skills

Drive recovery through an economic leadership team –

supported by the local community

3 4 5

Stimulate investment while concurrently re-establishing public infrastructure

Nominate leaders in the local community to own and lead the economic recovery

Four stages to phased recovery approach • Set up for success now• Rebuilding phrase (2 yrs)• Relaunching of Marysville (2-4 yrs)• Sustain + grow phase (5+ years)


Economic leadership group

Members of business community• Conference centres• Retailers• Landlords• Lake Mountain• Tourism operators• Hotel owner

Leaders are required to help drive the economic recovery agenda

...

Murrindindi Shire Council

...Economic

DevelopmentBob Elkington

...

VBRRA

... ...Economic

StreamTBA

...

...

MATDG

...Business and Employment

Graeme Brown...

Group should meet around one day / month to ensure implementation of plan and progress to milestones

Source: BCG analysis

Marysville and Triangle Leader

Responsibilities:• Coordinate involved parties and

key economic stakeholders• Drive action and implementation

of economic plan• Ensure progress to milestones


Moderate stimulus will be required to kick-start the private sector rebuild

• Government master-plan for key infrastructure (such as main street) supported by private sector to rebuild within a three year timeframe

• Town rebuilt by private sector, with some government assistance to kick-start and complete within a three year timeframe

• Town rebuilt by private sector, without a particular timeframePathway for

the community

• Medium term, low interest loans or grants towards financial requirements

• Soft incentives to re-establish demand

Moderate stimulus/incentives

• Medium term, low interest loans

• Government investment and management to rebuild key anchor infrastructure

High stimulus/incentives

• No extra assistance – relies on private sector to establish a business case to rebuild

Natural evolution

Examples of government assistance

required to achieve within a three year

timeframe

1. Above expenditure outlined in Victorian government budget of May 2009Source: BCG analysis

1 2 3

Cost of incentives

Level of risk to achieve rebuild within short timeframe


A menu of options available to stimulate investment to rebuild and re-establish demand

Public sectorPublic sector Joint Public-PrivateJoint Public-Private PrivatePrivate

Upfront grants or HECS-style loans

Timely advertising/marketing campaigns

Rental guarantees for accommodation providers

Low interest loans in conjunction with banks

Land acquisition and redevelopment

Events to encourage day trippers

Pro-bono assistance

Accommodation demand backlog/guarantee

Personal pledges to support the region

Important to have stimulus that encourages rebuilding within the short term

Eligible government disaster relief measures1

Other options for consideration

1. Preferred approaches for financial assistance using Emergency Management Australia Financial Recovery guidelinesSource: "Economic and Financial aspects of Disaster Recovery", Emergency Management Australia; BCG analysis

Direct government expenditure

Public sector commitment5-10 years


Lake Mountain, conference centre, and retail are prioritiesPlus key natural attractions must be returned concurrently

Source: BCG analysis

Lake MountainLake Mountain

Rebuild lost infrastructure

Invest in winter bottlenecks (eg, carparks, low-emission visitor bus)

Invest in year-round attractions

Start rebuild Spring 2009

Open for Winter snow 2010

Conference CentreConference Centre

At least one conference centre to be rebuilt

Providing complimentary amenities such as restaurant, cafe, bar, day spa, etc

Immediate financial support to 2010 Start rebuild 2009

Open 2011

Retail Strip / Town Centre

Retail Strip / Town Centre

Main street rebuilt to support local and tourism businesses

Immediate financial support

Rebuild 2009/10

Open Winter ski 2010

Natural AttractionsNatural Attractions

Stevenson's Falls, (walks and infrastructure) rebuilt immediately

Walking tracks around Marysville (Trestle, Fern Tree Gully and Keppel tracks) rebuilt

Reopen by summer 2010

+

Des

crip

tion

Direct government expenditure

Stim

ulus

opt

ions Upfront grant

Low interest loans

Marketing support/Events

Land acquisitionand redevelopment

Direct government expenditureLow interest loans

Demand backlog eg government departments

Marketing support

Tim

ing

Eligible government disaster relief measures1

Other options for consideration

Public commitment (5-10 years)


Changes at Lake Mountain are required to position it for future success

From a financially struggling government enterprise ...

From a financially struggling government enterprise ...

... to a differentiated resort operating at break-even

... to a differentiated resort operating at break-even

Financial• Capped and regulated fees• Capacity constraints on the mountain• Lack of low-season revenue

• Increased car park spaces or alternate resort access with off-mountain car parking (eg bus)

• Increase car park fees at times of peak demand• Real-time indicators in Marysville to show

remaining mountain car-park capacity• Events in low season to bring visitors

and revenue

• Uncertain future• Unclear roles and responsibilities• Changes recommended to governance structure

• Publicly commit to 5-10 years of support• Agree ownership and develop management structure• Clear responsibilities for investment decisions

and accountabilities

Governance

Investment• Alignment between strategic objectives and

capital investments• Temporary facilities for 2009 snow season

• Capital investments funding aligned to strategic objectives

• Build new resort infrastructure with capacity to support all visitors

Source: Stakeholder interviews; BCG analysis

• Government-owned enterprise with departmental responsibilities to balance environmental sustainability with operational and financial imperatives

• Explore potential for private/semi-private ownership• Create a clear mandate for a profitable resort• Potentially limit the government's downside by fixing

the annual subsidy for operations

Ownership


Marysville should aim to relaunch itself within 2-4 yearsA phased economic plan is critical for building momentum and relaunching Marysville

Time

Econ

omic

val

ue

Setup for success Rebuild key assets,create awareness Relaunch Marysville Sustain and grow

~ 2 years 2 - 4 years Ongoing: 5+ years

1 2 3 4

Now!

• Provide commitment to Lake Mountain

• Implement communications quick wins

• Recruit tourism skills

• Appoint owner/leader for economic recovery

• Activate business stimulus

• Identify essential government assets to replace

• Develop reconstruction infrastructure

• Enable forestry salvage• Establish temporary

businesses facilities

• Invest in a broader set of Lake Mountain offerings

• Draw day-trip visitors and drive activity through events

• Develop branding strategy• Update communications• Develop online channels• Ramp-up visitor capabilities

(eg, marketing expertise)

• Re-establish natural attraction infrastructure

• Rebuild one conference centre

• Replace 'must have' public/town infrastructure

• Expand around "anchor" businesses

• Launch brand and activate marketing/promotion

• Ramp-up events program

• "Hand back" the towns

• Build complementary infrastructure

• Monitor progress and adjust product mix to stimulate demand

• Reach full events capability

• Embed marketing messaging in tourism campaigns

Strong local leadership Incentives to stimulate growth Phased reconstructionTourism enablersTourism productsStrategic category

Key milestones• Lake Mountain re-opened• Agree on coordinated plan for

'new' Marysville

• Conference centre built• Natural attractions restored

and reopened for visitors eg Steavensons Falls

• Vibrant main street open (>15 shops)• Accommodation rebuilt ( >400 beds)• Strong events calendar ( > 20 events)

• Viable economic activity• Competitive year round

visitation and spend


Kelowna rebuilt economy within three yearsUsed disaster as springboard to create more unified and strategic vision of town

Situation

Relevant learnings

Initiatives Outcomes

Severe forest fire hit Kelowna (Canada) in 2003; destroying 238 homes, much infrastructure and damaging thousands more. Town reliant on tourism, with logging/agriculture increasingly dormant. Local tourism severely disrupted, main attractions damaged or destroyed (C$15m railway damage, extensive fire scarring of recreational hinterland, Okanagan Mountain park destroyed) Successful rebuild and economic recovery: 'ready for business, better than ever'

• Strong governance and organisational support – Central Fire Recovery Team, Recovery Centre office to coordinate

all other groups and involve volunteers• Dedicated specialist reconstruction resources and developed

reconstruction plan (planning developers, plan checkers, permit approval, building inspectors)

• Streamlined reconstruction, minimum bureaucracy• Focus on timely delivery of recovery phases

– Urgent needs satisfied before regenerative issues• Tourism Recovery Strategy: Investment in marketing, human and

financial resources to drive tourism recovery – Event driven approach, strong media communications

• Economic viability of tourism industry re-established within 3 years

– 83% of businesses re-established; 2 year turnaround from negative impact to neutral, return to pre-fire baseline (05-06)

• Strong sense of future direction and phased plans – Strategic Plan 2004 to guide immediate recovery (Phase1)– Set central vision in 2030 Official Community Plan (Phase2),

complete development/land use/infrastructure guidelines– Community strengthened and stakeholders aligned

• Stronger community support and interest in area engagement of local and wider communities

– Improvement in public perception of region with 81% of Alberta/BC residents intending to visit within next 3 years

1. Strong governance and organizational support

2. Cohesive future vision and central planning

3. Bureaucratic quarantine and specialist resources

4. Tourism recovery strategy (marketing, events)

Source: 'Disaster Management: Kelowna' 2006 and 'Towards a destination tourism disaster management framework' 2007 (Perry Hystad and Petter Keller, University of Victoria, BC); Kelowna Government websites; Kelowna 2030 websites and Strategy Materials 2005-2009; 'Kelowna Fire Rebuild' (Stan Sauerwein, BC Broker Magazine 2004); Tourism Kelowna Surveys, 2004