Framework Guide to Facilitate Tourism Investment by OLJcNLD

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									Framework Guide to Facilitate
    Tourism Investment
Framework Guide to Facilitate Tourism
           Investment
  Framework Guide
        to Facilitate
Tourism Investment

             June 2011




3
Preamble

About this Guide
The National Long-Term Tourism Strategy (NLTTS)
seeks to ensure that Australia moves up the
international tourism value chain and remains
competitive through quality tourism products and
services. Greater investment in the tourism industry will
drive long-term profitability, innovation and growth in
the industry.
The Framework Guide to Facilitate Tourism Investment
(the Guide) is designed to promote good practice in
tourism investment facilitation. The Guide is an
important resource for all levels of government in
encouraging investment in tourism that will ensure
Australian tourism product remains competitive in a
global market place.
This Guide was prepared by the Allen Consulting
Group on behalf of the NLTTS Investment and
Regulatory Reform Working Group (IRRWG).

Acknowledgement
The Allen Consulting Group acknowledges the
assistance of the IRRWG in preparing this Guide and
the contributions of the businesses, stakeholders and
government officials who provided input.

Citation
The Allen Consulting Group (2011) Framework Guide
to Facilitate Tourism Investment, Melbourne.




           iv
Contents




Preamble                                                                                              iv


Why is a Guide needed?                                                                                 1
     State of the industry                                                                             1
     Responding to this challenge                                                                      1
     The evidence base for this Guide                                                                  1
     How to use this Guide                                                                             2
     What is tourism investment?                                                                       2
     What is tourism investment facilitation?                                                          3
     When to use investment facilitation                                                               3
     Who should use this Guide?                                                                        5
     Good practice                                                                                     6
     Authority rests with government                                                                   7


1.   Supporting good practice                                                                          8
     1.1   Public interest principles                                                                  8
     1.2   Risk management                                                                            11


2.   Government leadership                                                                            12
     What this is                                                                                     12
     Why it is important                                                                              12
     2.1    Make the case for a high level priority and government commitment to tourism investment   14
     2.3    Ensure that tourism investment facilitation is in accordance with sound public interest
            principles                                                                                17


3.   Capacity building                                                                                18
     What this is                                                                                     18
     Why it is important                                                                              18
     3.1    Build a wide understanding of the benefits of tourism investment                          18
     3.2    Embed tourism expertise within government                                                 19
     3.3 Ensure that government agencies have the capacity to assess tourism proposals                19
     3.4    Assist the tourism sector to understand government requirements                           20


4.   Information                                                                                      21
     What this is                                                                                     21
     Why it is important                                                                              21
     4.1    Provide comprehensive information online about available facilitation                     22
     4.2    Provide clear documentation on approval processes                                         22
     4.3    Provide potential investors with information about opportunities                          23
     4.4    Provide market research to support investment proposals                                   23
     4.5    Package tourism investment information for foreign investors                              24




                                                     v
5.   Partnerships                                                                                             25
     What this is                                                                                        25
     Why it is important                                                                                 25
     5.1    Develop partnerships between levels of government to facilitate tourism investment           26
     5.2    Develop networks with the investment community                                               27
     5.3    Form partnerships with communities                                                           27
     5.4    Form partnerships with Indigenous communities                                                29
     5.5    Identify international investors opportunities and work with Austrade, Tourism Australia and
            economic development departments to develop international investment                         30


6.   Approval processes                                                                                       31
     What this is                                                                                             31
     Why it is important                                                                                      31
     6.1    Zone sites for tourism and streamline approvals                                                   32
     6.2    Align tourism investment strategies with local planning                                           33
     6.3    Create mechanisms within government to facilitate decisions on tourism investment                 34
     6.4    Ensure timely decision making on tourism proposals                                                35
     6.5    Assign investment facilitation specialists to facilitate major investment projects                35
     6.6    Ensure that the appropriate level of government is dealing with each proposal                     35


7.   Infrastructure and land provision                                                                        37
     What this is                                                                                             37
     Why it is important                                                                                      37
     7.1    Make the provision of tourism infrastructure a condition of major developments                    38
     7.2    Identify and make available land and buildings for tourism investment                             38
     7.3    Government leases of land/buildings for tourism should be long term and at realistic cost         40
     7.4    Recognise that some tourist facilities require government investment                              41
     7.5    Recognise that transport facilities (including regional airports and cruise ship terminals) are
            essential to tourism and need government investment                                               43
     7.6    Assist with provision of access to, and utilities for, tourism facilities                         43


8.   Next steps                                                                                               45
     Assessing your current tourism investment facilitation performance                                       45
     What to do next                                                                                          45
     Monitoring and evaluation                                                                                46
     Key contacts                                                                                             47


APPENDIX A: Further information on support available from jurisdictions                                       48


APPENDIX B: Current performance: assessment tool                                                              51


References (includes web links)                                                                               55




                                                      vi
                   Why is a Guide needed?


State of the industry
The Australian tourism industry is a significant contributor to the Australian economy. The tourism
industry also contributes many social, cultural and environmental benefits.

The State of the Industry 2010 report by Tourism Research Australia identified that the tourism
industry faces a number of challenges.

   The non-tourism component of the Australian economy grew by 7.5 per cent a year, compared
    with 3.9 per cent a year for tourism from 2000-01 to 2008-09.
   Tourism’s share of GDP has fallen during this period from 3.4 per cent to 2.6 per cent.
   Australian domestic overnight visitor expenditure, the largest component of domestic tourism,
    has declined by around 5 per cent in the past ten years.
   Internationally, Australia’s share of global tourist arrivals has declined from 0.7 per cent to 0.6
    per cent.
Low levels of private sector investment in new tourism products and upgrades to existing tourism
products have contributed to these challenges.

Responding to this challenge
Australia needs to address the limitations and capacity constraints that the industry is currently
facing. The Jackson Report (DRET 2009a) to the NLTTS steering committee concluded there is a
need to enhance the supply-side capability of the tourism industry. In doing this, the appeal of the
tourism offering must be improved as a basis for driving long-term profitability, innovation and
growth in the sector. The NLTTS (DRET 2009b) recognised this as a priority. This led to the
establishment of the IRRWG, which has commissioned this Guide.

This Guide will focus more attention and effort on the supply side of the tourism industry. The
Guide provides a practical information resource that will assist governments to facilitate tourism
investment and build Australia’s competitiveness as a tourism destination.

The evidence base for this Guide
The good practices outlined in this guide have been developed through a thorough evidence-based
process. The good practices have been derived through extensive consultation with tourism
industry representatives, developers and representatives of government at local, state and territory
and Australian Government level. The project also obtained input from individual tourism
operators through a survey. The good practices were further informed by a review of relevant
documents from Australia and other countries. Additionally, a number of case studies showed that
in each case, many of the good practices had been deployed to achieve successful tourism
investment outcomes. More details of the evidence base underpinning this Guide can be found in
the companion report (Allen Consulting Group 2011).




                                                1
How to use this Guide
This Guide will assist your organisation to undertake tourism investment facilitation. A summary
of good practices is provided at the beginning of each of Section 1 to Section 7. In addition to the
good practices detailed in these sections, Section 8 outlines the next steps that will assist you in
implementing good practice. Appendix A details the resources available from jurisdictions in
Australia including links to web sites. Appendix B is an assessment tool that can be used in
conjunction with Section 8. The references includes web links to all of the documents referred to
throughout the Guide.

While the Guide provides a menu of good practice, clearly the adoption of good practice needs to
take account of the context of each organisational circumstance and investment process. Specific
actions to implement each good practice are highlighted throughout the document, along with case
studies and examples. The three levels of government each have areas of good practice for which
they are primarily responsible and for which they have the appropriate tools at their disposal. Each
level of government should focus on what it can do best. As a general principle, higher levels of
government should not perform functions that can be performed effectively and efficiently at a
lower level, while lower levels of government should work with higher levels to access support and
expertise as appropriate.

What is tourism investment?
In this Guide, tourism investment refers to any investment that expands and upgrades Australia’s
product, service and/or experience offered to tourists. It includes domestic and foreign private
sector investment in infrastructure, products, services and experiences, used by, or related to, the
Australian tourism industry as it is defined in the Australian Bureau of Statistics Tourism Satellite
Account. This investment can be in both private and public land (crown land, national and state
parks, reserves, Indigenous, cultural and historic sites), buildings, infrastructure, products, services
and experiences. Investment is also considered to include issues at the development stage which
would affect investment decisions.

For example, the investment may relate to products and services that include: short-term
accommodation (e.g. hotels, guest houses, motels); tourist facilities (e.g. entertainment, recreation,
information centres and cultural activities); and other ancillary services (e.g. retail, food and
beverage, transport and other services used by both visitors and residents).

Some investment may be of a dual or multi-purpose nature, serving both tourism and non-tourism
markets. Investment in tourism can be undertaken by both public and private entities (sometimes in
partnership) and can relate both to completely new infrastructure and the expansion, upgrading and
refurbishments of existing infrastructure. Tourism investment can include infrastructure that serves
both residents and tourists.

Tourism investment can enhance the capacity of the industry to service a more diversified tourist
base and offer more diversified tourist products (e.g. luxury resorts, eco-tourism), strengthen the
quality of tourism offerings and increase capacity to better service tourists.
Foreign investment
Access to investment capital in Australia is highly competitive. Overseas investors in the tourism
sector can bring expertise and international networks to support their investment in Australia. It is
difficult and may not be cost effective for states and territories, on their own, to seek foreign
investment in the tourism sector. Working with Austrade, states and territories can leverage on that
organisation’s networks and international connections. Good Practice 4.5 of this Guide discusses
the need to package information for foreign investors. Good Practice 5.5 also discusses
approaching international investor markets.


                                                 2
What is tourism investment facilitation?
The Asia-Pacific Economic Cooperation (APEC) defines tourism investment facilitation as actions
taken by governments designed to attract private sector tourism investment and maximise the
effectiveness and efficiency of its administration through all stages of the investment cycle
(APEC 2008). In an Australian context, this refers to activity that encourages tourism investment
across the three levels of government. This activity may include:

   informing prospective investors about development regulations;
   guiding investors through approval processes;
   negotiation with other portfolios;
   raising awareness of investment opportunities;
   sourcing or providing financial assistance; and
   providing advice on other issues as required.

Tourism investment facilitation may occur as part of a program or initiative specifically directed at
tourism investment, or as part of a broader investment facilitation initiative, for which tourism
investment is eligible.

Investment facilitation includes both the facilitation of private investment through government
action, and government leveraging its infrastructure investments in ways that make private tourism
investment more commercially attractive.
Some facilitation of infrastructure investment may, in part, serve the needs of tourism but not be
specifically identified as tourism investment. In these circumstances, tourism agencies are advised
to ensure that such investment appropriately meets tourism needs and liaise with the responsible
agencies to achieve dual-purpose outcomes.

When to use investment facilitation
As Figure 1 shows, a successful investment will involve a number of stages. The industry survey
undertaken for this project confirmed that for the purpose of tourism investment facilitation, most
activity occurs in the planning stage. This stage begins with the initial idea, and includes the
development of the concept, assessment of feasibility and the gaining of approvals and finance.

The Guide is predicated on maximising the likelihood of successful investment facilitation.
Consequently, the Guide recommends doing all, or many, of the good practices described. The
precise detail of what is done in each case requires judgement that will depend on the
circumstances of each government and each investment proposal.

However, to assist users of the Guide in determining when certain good practices are most likely to
be useful, the Guide has mapped good practices to an investment process. In doing this, the Guide
recognises that some facilitation measures are relevant at multiple stages in the investment process
and, on some occasions facilitation measures may be needed at an earlier stage than indicated.

The investment process used in the guide is adapted from the Victorian tourism investment guide,
with the addition of a pre-investment stage. This has been selected because it reflects a generic
process with a number of specific stages where investment facilitation is clearly most relevant to a
successful project. The survey results showed clearly that investment facilitation measures were
overwhelmingly seen as being most useful early on in the investment process. Figure 1 also
indicates which level(s) of government are best placed to address investment facilitation and the
accompanying good practices at each stage through the investment process.




                                                3
FIGURE 1 — FACILITATION BY INVESTMENT STAGE

                                                                                                              DISCUSSED  PRIME
                                                                                                                                   SUPPORTING
       STAGE                                         GOOD PRACTICE                                                IN    RESPONS
                                                                                                                                      ROLE
                                                                                                               SECTION   -IBILTY

                   !Provide high level priority and government commitment to tourism investment                   2.1     C, S        L

                   !Adopt a whole-of-government approach to managing tourism projects                             2.2     C, S        L

                   !Ensure that tourism investment facilitation is in accordance with public interest
                                                                                                                  2.3    C, S, L
       PRE-          principles
    INVESTMENT
                   !Embed tourism expertise within state/territory and local government                           3.1    C, S, L

                   !Build a wide understanding of the benefits of tourism investment                              3.2    C, S, L

                   !Assist industry to understand government                                                      3.4     C, S        L

                   !Package tourism investment information for foreign investors                                  4.5       C         S



                   !Publish information about forms of investment facilitation available                          4.1    C, S, L
      CONCEPT
    DEVELOPMENT    !Provide information about approval processes                                                  4.2    C, S, L

                   !Appoint facilitation specialist (if appropriate)                                              6.5     C, S        L



                   !Provide information about investment opportunities                                            4.3       S        C, L

      MARKET       !Provide market research information                                                           4.4       C         S
    ASSESSMENT
                   !Identify international investors and work with Austrade, Tourism Australia and economic
                                                                                                                  5.5     S, L        C
                    development departments to develop investment markets (if appropriate)



                   !Zone sites for tourism and streamline approvals                                               6.1     C, S        L

                   !Make tourism infrastructure a condition of major developments                                 7.1       S
        SITE
     SELECTION     !Identify and make land and buildings available                                                7.2     C, S        C

                   !Facilitate through established consultative mechanisms                                        5.1       S

                   !Ensure timely decision making                                                                 6.4    C, S, L




     CONCEPT
                   ! Facilitate through liaison with local government                                             5.1       S         S
      DESIGN
                   ! Work collaboratively with other levels of government and investors to shape proposals        6.2     S, L        C



                   ! Assist through existing conversations with communities                                       5.3       S         L
   CONSULTATION
                   ! Assist through partnerships with Indigenous communities (if relevant)                        5.4       S        C, L



                   ! Ensure that government agencies have capacity to assess tourism proposals                    3.3     C, S        L

                   ! Liaise with local government and planning agencies                                           5.1       S

   DEVELOPMENT     ! Support tourism proposals at planning tribunals                                              6.2       S
    APPLICATION
                   ! Use across-government committees where appropriate to expedite approvals                     6.3     S, C        L

                   ! Refer proposals to State government for approval (where appropriate)                         6.6       S

                   ! Ensure timely decision making                                                                6.4    C, S, L



                   ! Assist through established networks of investors                                             5.2     S, C
     FINANCIAL
   FEASIBILITY &   ! Ensure that leases of government land and buildings are long-term and at reasonable
                                                                                                                  7.3     S, C
   BUSINESS PLAN       cost

                   ! Provide financial assistance and/or incentives where necessary                               7.4     S, C


     OBTAINING
      FUNDING      ! Invest public funds where appropriate                                                        7.5     S, C


     PROJECT
   CONSTRUCTION    ! Assist with the provision of access and utilities                                            7.6     S, L


                                                                         C = COMMONWEALTH, S = STATE OR TERRITORY, L = LOCAL




                                                               4
Who should use this Guide?
The prime audience is officials of government in agencies, departments and authorities involved in
promoting tourism investment, at all levels of government. Although this Guide will be useful for
people working in government and industry, it is likely to be particularly relevant to those in
government — especially state and local government.

Government officials will find the Guide a valuable resource because it provides advice on tourism
investment facilitation options that may be offered, and the considerations involved in facilitating
tourism investments. In particular, the Guide will be of value to people in the organisations and
roles described below:

   agencies at all levels of government working with tourism related industries;
   state or territory tourism offices, particularly people involved in destination development and
    investment facilitation;
   Australian Government, state or territory agencies involved in investment attraction spanning
    industries other than tourism;
   Australian Government and state or territory agencies involved in representing Australia
    internationally on an ongoing basis or through trade missions;
   local government organisations, particularly people working in economic development and
    planning roles; and
   regional tourism and economic development organisations.

Throughout this Guide, ‘government’ is used as a generic term. Where this term is used, the good
practice may be relevant to any level of government. Where a good practice is specific to a level or
levels of government, then those level(s) of government are explicitly stated.




                                               5
Good practice
The Guide uses a good practice based approach. Good practice has been divided into seven areas,
shown in Figure 2, with government leadership and capacity building being areas that are needed
for each of the other areas to work effectively. In summary, governments at all levels need to:

    support good practice by following public interest principles and managing risk;
    demonstrate leadership to actively facilitate tourism investment;
    build capacity related to tourism supply and investment;
    provide information to address information gaps that are prevalent in tourism investment;
    develop a range of partnerships, both within and between levels of government, with
     investors and with communities;
    ensure that approval of tourism proposals are handled efficiently and appropriately; and
    take direct responsibility, in facilitating investment in infrastructure and land that underpins
     tourism, leveraging private investment wherever possible.




FIGURE 2 — TOURISM INVESTMENT FACILITATION: GOOD PRACTICE AREAS




Source: The Allen Consulting Group




                                                6
Figure 3 summarises the good practices under the seven areas. A section of the Guide is dedicated
to each of the areas and the good practices are numbered correspondingly.


FIGURE 3 — TOURISM INVESTMENT FACILITATION: GOOD PRACTICE FRAMEWORK

                                 Supporting good practice (Section 1)
                          1.1 Public interest principles, 1.2 Risk management
     Information               Partnerships                 Approval processes              Infrastructure and
      (Section 4)               (Section 5)                     (Section 6)                   land provision
                                                                                                (Section 7)
 4.1 Provide              5.1 Develop partnerships         6.1 Zone sites for tourism    7.1 Make the provision of
     comprehensive            between levels of                and streamline                accommodation a
     information online       government to share              approvals                     condition of major
     about facilitation       expertise                                                      developments and
     offered                                                                                 licences
 4.2 Provide clear        5.2 Develop networks with 6.2 Integrate tourism                7.2 Identify and make
     documentation on         the investment            strategies with local                available land and
     approval                 community                 planning                             buildings for tourism
     processes                                                                               investment
 4.3 Provide information 5.3 Form partnerships with 6.3 Create mechanisms                7.3 Ensure that
     about tourism           local communities          within government to                 government leases of
     investment                                         facilitate decisions on              land/buildings for
     opportunities                                      tourism investment                   tourism are long term
                                                                                             and at realistic cost
 4.4 Provide market      5.4 Form partnerships with 6.4 Ensure timely decision 7.4 Recognise that some
     research to support     Indigenous                 making on tourism          tourist facilities require
     investment              communities                proposals                  government
     proposals                                                                     investment
 4.5 Package tourism      5.5 Identify international       6.5 Assign investment          7.5 Recognise that
     investment               investors and                    facilitation specialist to     transport facilities are
     information for          develop relationships            facilitate major projects      essential to tourism
     foreign investors        and work with                                                   and need government
                              Austrade, Tourism                                               investment
                              Australia and
                              economic                     6.6 Ensure the appropriate 7.6 Assist with provision of
                              development                      level of government        access to and utilities
                              departments to                   has approving              for tourism
                              develop investment               authority                  developments
                              markets

                                  Government leadership (Section 2)
             2.1 Provide high level priority and government commitment to tourism investment
                 2.2 Adopt a whole-of-government approach to managing tourism projects
    2.3 Ensure that tourism investment facilitation is in accordance with sound public interest principles
                                      Capacity building (Section 3)
                    3.1 Build a wide understanding of the benefits of tourism investment
                              3.2 Embed tourism expertise within government
           3.3 Ensure that government agencies have the capacity to assess tourism proposals
                    3.4 Assist the tourism sector to understand government requirements



Authority rests with government
The Guide recognises that priority setting and decision making is a matter for government
authorities. While the Guide is intended as a practical and useful resource, no authority is bound by
its advice.

                                                       7
      1             Supporting good practice


   Good facilitation practices discussed in this section
   • In reviewing any tourism proposal for facilitation, first establish the evidence that there are
     market failures that justify the intervention.
   • In considering what facilitation to provide, first establish that it is likely to provide value for
     money, and there is a way of evaluating if the facilitation has provided value for money.
   • When providing investment facilitation, make sure that it is proportionate to the size and
     importance of each investment proposal.
   • In most cases, the private investors are the main beneficiaries from an investment, so they
     should take on most of the risk.
   • A fair and equitable consideration of the relative merits of each proposal should guide the
     type of investment facilitation offered.
   • As much information about investment facilitation policies and processes should be
     publicly available as is possible.


1.1     Public interest principles
This section of the Guide applies well-established principles of sound economic management and
public administration to the facilitation of tourism investment. These principles apply to investment
facilitation at all stages of tourism projects and to all levels of government. Readers can find more
detail about these principles in relevant Better Practice Guides of Australian National Audit Office,
Productivity Commission publications, Department of Finance and Deregulation guidelines, OECD
reports and advice provided by state Auditors-General (see the references at the end of this Guide).
Base facilitation on evidence of market failure
In reviewing any tourism proposal for facilitation, first establish the evidence that there are
market failures that justify the intervention.

The existence of market failures indicates a possible need for government intervention in a market.
The severity and impact of market failures varies significantly, and there are many possible policy
responses to market failures across the spectrum of significance and cost. Market failure is a
necessary pre-condition to government intervention but may not in itself justify such intervention.

Tourism investment facilitation should respond to an identified market failure or failures. The
market failures affecting tourism investment are widespread across the sector and are outlined
below. Because market failures in tourism are widespread, it is important that the investment
facilitation response is targeted and proportionate. The response should also consider the expected
economic, social and environmental benefits of tourism investment facilitation, which are
described further in this Guide.

Positive spillovers — the returns to tourism investment do not only accrue to the investor, but are
distributed to other businesses and regions frequented by tourists (Urbis 2010). The existence of
spillovers is likely to lead to under investment because the investor does not capture the full benefit
of the investment.

Public goods — public goods warrant pubic investment because the investment benefits the
community as a whole. If left to the market there would not be sufficient incentive to invest in
these goods because the return to the investor cannot be captured. Certain tourism assets (heritage
sites, parks, landscapes and beaches) display features of public goods. Public private partnerships

                                                  8
can be an effective way of undertaking investment in assets that have features of public goods, but
which can also offer a commercial return, if investment is shared by the public and private sectors.

Coordination failure — for tourism investment to succeed, a range of infrastructure, facilities and
attractions must be in place to create destinations that people want to visit. It is beyond the ability
of any one firm or agency of government to achieve this. Good coordination within and between
governments, and with investors and communities, is needed to overcome this problem.
Government, using a whole-of-government approach, is particularly well placed to support
coordination efforts.

Information asymmetry — investment in tourism assets is hindered due to a lack of information
about the tourism industry and associated investment opportunities. Investors need sufficient
information to inform their investment decisions, such as: research on risk/return attractiveness
compared to related assets, investment opportunities, regulatory/approval processes and tax issues.
Government can assist by providing this information. However, they also need to effectively
disseminate the information to ensure that private investors know that it exists and can readily
access it.

Natural or induced monopolies — some tourist assets may have monopoly features. In particular,
major transport hubs such as airports and seaports may have a monopoly in the market for interstate
and international passenger transit. To ensure that airport owners are not engaging in monopolistic
pricing, the Australian Competition and Consumer Commission regularly collects financial
information from the major airports (DITR 2006). While price regulation may address
monopolistic behaviour to an extent, there are other aspects not addressed by price regulation. For
instance, price regulation will not address poor customer service (due to lack of competitors) or
out-dated infrastructure (due to lack of incentives to undertake capital upgrades), and each of these
may deter visitors.
Facilitation effort should reflect value for money
In considering what facilitation to provide, first establish that it is likely to provide value for
money, and a way of evaluating if the facilitation has provided value for money.

Tourism investment facilitation should represent good use of public money, measured by the
benefits accrued as a result of the cost of directing public funds to this purpose. In devising
investment facilitation programs and policies, a mechanism for evaluating effectiveness should be
incorporated. Ideally, this will feature cost benefit analysis, where both the costs and benefits of the
facilitation can be quantified or reliably estimated. For some initiatives, cost benefit analysis may
not be possible because the benefits of the investment facilitation provided cannot be accurately
estimated. Even in these instances however, it is necessary for the organisation undertaking
investment facilitation to collect information that provides for reliable assessment of the results
delivered through investment facilitation efforts.
The scale of facilitation effort should be commensurate with the size and
significance of the project
When providing investment facilitation, ensure that it is proportionate to the size and importance
of each investment proposal.

Investment facilitation offered should be commensurate with the significance of the proposed
investment. A project may be more significant because it is filling a clear shortage in the market, or
because it is a high profile ‘signature’ project.

A project can fill a shortage in the market across any number of market segments. For example, in
some wine regions, there is a shortage of backpacker accommodation because the supply of budget
accommodation has not kept pace with the increased number of backpackers picking grapes.
Equally, in different regions of Australia there are shortages in luxury resort accommodation, high
quality central business district hotel accommodation and eco-tourism infrastructure, among others.

                                                 9
In the case of a signature project, larger scale investment facilitation will often be warranted, given
the wider benefits that such projects can achieve. Signature projects can come to symbolise a
region’s offering as a destination. They can also set a foundation for other tourism investments.

Determining the scale of investment facilitation requires judgement based on the merits and
circumstances of each proposal. However, the amount of assistance for individual projects should
be such as to provide recipients with an incentive for the investment. Additionally, the investment
facilitation should be sufficient so as to have a significant impact on the issue or shortfall that the
assistance is addressing. Large-scale projects generally require state and territory government
facilitation. Smaller projects are likely to be better addressed by local government.
Facilitation should ensure that the private sector takes an appropriate share of risk
When undertaking investment facilitation, the relative exposure of government and private
investors to the investment should be proportionate to their benefits from the investment. In most
cases the private investors are the main beneficiaries, so they should take on most of the risk.

Tourism investment facilitation should represent an appropriate sharing of risk between private and
public investors. The share of risk should be proportionate to the share of expected benefits. This
means that generally, the risk should be borne primarily by the investor, because they will be the
long-term beneficiaries. In the case of some forms of public infrastructure that benefit tourism, the
government may be the lead investor and therefore, it could take on the major share of risk.
However, the focus of this Guide is on investment facilitation rather than direct investment by
government (although sometimes the boundary between these is blurred). Where direct government
investment is required for a tourism related project, a public private partnership is likely to be an
appropriate financing arrangement.

If government takes on too much risk in an investment proposal, this can expose the public to
financial losses if the investment fails. When government takes on too much project risk, a project
is less likely to feature innovation, because the developer has less incentive to be creative in order
to give the development a competitive edge in the marketplace.
Tourism facilitation should be fair and equitable to all parties
A fair and equitable consideration of the relative merits of each proposal should guide the type
of investment facilitation offered.

Tourism investment facilitation criteria should be applied equally to all investment proponents, so
as to ensure that high standards of probity are maintained. This will also protect the integrity of the
investment facilitation process. This does not mean that government should provide the same level
and form of investment facilitation to all proponents. Rather, it means that the appropriate form of
investment facilitation should be provided based on the merits of each proposal. To achieve this,
governments are urged to publish details of the types of investment facilitation they offer online.
This will also explain how the government assesses the merit of proposals, along with the strategic
objectives the government is seeking to achieve through investment facilitation.
Tourism facilitation should be transparent
As much information about investment facilitation policies and processes should be publicly
available as is possible.

Where the availability of facilitation measures is contestable (i.e. not all requests for assistance are
met), there should be clear criteria by which proposals are judged and some recognised expertise on
the part of those making the decisions. While negotiation of project specific facilitation
arrangements will inevitably require confidentiality, the outcome should be made as transparent as
possible given the use of public resources and the importance of public confidence in the process.
Furthermore, the public disclosure of investment facilitation available, as described above, provides
transparency regarding the government’s priorities and approach. Although some matters are

                                                10
legitimately commercial in confidence, to the extent possible, details of investment facilitation
offered and provided should be publicly available.

1.2      Risk management
If the principles described above are adopted in conjunction with the good practices described,
those engaged in investment facilitation will be well placed to obviate or minimise the risks that
may arise from tourism investment facilitation. A number of these risks are not specific to tourism
investment facilitation — they may be present in any form of investment facilitation and public
investment. However, to ensure the completeness of the Guide, the most prevalent risks are
described below. Corresponding advice on how adopting specific good practices can effectively
mitigate these risks is also provided.
RISK MANAGEMENT

                 Risk                                                      Mitigation

 Value for money — the risk            Consider whether investment facilitation is going to provide value for
 that the public resources             money. Public benefits from facilitation should exceed public costs of
 directed towards investment           facilitation. To do this, governments need to be able to assess the costs and
 facilitation will not reflect value   benefits of investment facilitation. Governments must plan to collect
 for money measured by the             information that will enable value for money to be assessed over time.
 benefits achieved as a result.        Governments need to avoid providing investment facilitation to poorly
                                       conceived projects, or providing a disproportionate level of facilitation relative
                                       to the benefits that projects will generate. The nature of some investments is
                                       such that there are sound reasons for government investment (because they
                                       are public goods), but even in those instances, opportunities for co-
                                       investment should be explored. Investment facilitation should always be
                                       focussed on maximising private investment in tourism.

 Probity — the risk that               Be transparent and fair in all investment facilitation processes and
 investment facilitation               dealings by applying tourism investment facilitation criteria equally to all
 processes and outcomes                investment proponents, so as to ensure that high standards of probity are
 negatively affect public              maintained. Furthermore, information about investment facilitation offered
 confidence.                           should be published online in a clear and accessible way.

 Capability — the risk that            Develop investment facilitation specialisation within the relevant
 governments lack the skills           department or team. Tourism investment facilitation requires a good
 and resources to achieve              understanding of the tourism industry, and the mechanics of investment
 successful investment                 facilitation. Specific resources need to be directed towards developing and
 facilitation outcomes.                maintaining this understanding.

 Political — the risk that             Work internally to ensure that representatives of government are well
 undertakings made at a                briefed on tourism investment opportunities. Once announcements
 political level are not met due       have been made or negotiations commenced, those involved in investment
 to changes in circumstances,          facilitation need to work within government to maintain high levels of
 which may have further                commitment to government undertakings and streamline decision making
 undesirable consequences.             processes.




                                                          11
        2               Government leadership


   Good facilitation practices discussed in this section
   •  Make the case for tourism investment as an economic development priority of
      government.
   •  Develop effective networks with other areas of government that are relevant to tourism
      investment.
   •  Establish and maintain robust coordination mechanisms and understand how to
      appropriately work the system.
   •  Be clear about roles and responsibilities for tourism nationally and in your jurisdiction.
   •  Understand what government policies, programs and services are available and who
      has carriage of them.
   •  Put systems in place to be able to screen and evaluate supply side issues and
      opportunities.
   •  When considering a specific proposal, form an across-government project committee to
      facilitate the proposal.
   •  Appoint a permanent across-government committee reporting to Ministers to drive and
      coordinate tourism investment facilitation.
   •  Brief Ministers and their offices early and often on substantial new or emerging tourism
      opportunities and their possible facilitation requirements.
   •  Undertake tourism investment facilitation in accordance with the principles described in
      Section 1.



What this is
Government leadership involves: providing high level priority and government commitment to
tourism investment; adopting a coordinated, whole-of-government approach to tourism investment;
and ensuring that tourism investment is facilitated in accordance with sound public interest
principles.

Government leadership is a precursor to the other areas of good practice. Hence it is depicted as a
part of the pre-investment stage of the investment process. Government leadership intersects with
the areas of good practice, as it is a necessary ingredient throughout a successful investment
facilitation process.

Why it is important
From discussion with stakeholders, there was a strong consensus that government had to take a
leadership role if tourism investment facilitation is to be successful. This was backed up by analysis
of the case studies, which are described in this Guide. Every case study involved some form of
leadership by government, often at the highest levels. Additionally, the government survey results
indicated support for government playing a lead role in investment facilitation. The industry survey
results showed strong support for government to do more, and pointed out that competitor
governments internationally are often perceived as doing more. Finally, the analysis of market
failure in tourism investment outlined in Section 1 shows that government is uniquely placed to
respond to the multitude of market failures that exist, particularly coordination failure and
information asymmetry, and there are significant potential benefits from doing so.

                                                12
Benefits of tourism investment
Effective tourism investment:

   Generates positive spillovers to other industries — tourism is defined by what tourists spend
    money on. Tourists spend money on a range of goods and services that reside in other sectors
    of the economy (retail, hospitality, transport, entertainment etc.). Short-term accommodation
    receives less than 30 per cent of visitor expenditure (TTF 2010).
   Stimulates visitor demand — tourism investment has the proven ability to bring about an
    increase in demand for travel to a particular destination. The right types of tourism investment
    attract visitors who would not otherwise visit a particular location or region. When a location
    enhances its tourist offerings with the right investment, it will attract more visitors.
   Creates employment opportunities — tourism is labour intensive, consequently, tourism
    investment has the potential to generate a relatively high number of jobs relative to the level of
    investment. On average, every 10 accommodation rooms directly generate 4.9 jobs. When jobs
    created indirectly are included, the total employment effect on average is 18.2 jobs per 10
    hotel rooms (Urbis 2010).
   Diversifies the regional economic base — tourism can broaden the economic base of regions
    that have traditionally been reliant on a small number of employers or industries. This makes
    these regions more economically self-reliant and less dependent on government support. It
    also softens the impact of industry decline or a particularly bad year.
   Directly contributes to community development — tourism investment can lead to the
    establishment of new activities and events. Such events can attract many visitors and provide
    an opportunity to raise the liveability of a region by bringing the community together and
    enhancing the social vibrancy of a city or town (NLTTS Steering Committee 2009). Hosting
    cultural and artistic events can enrich communities and generate tourist expenditure.
Despite these benefits, tourism investments are at a disadvantage compared with other forms of
investment. Consequently, government needs to show leadership if tourism investments are to
succeed and the benefits of these investments are to be realised.
Why tourism investment is different
Stakeholders consulted in the preparation of this guide identified a number of reasons why tourism
investment is different from investment in other industries. The reasons identified are broadly
consistent with previous reports that have examined this issue, such as the National Tourism
Emerging Markets Strategy Capability Audit (AEC Group 2006).

   Low return on investment relative to comparable investments, such as residential or office
    accommodation.
   Low or uncertain levels of profitability in the tourism industry compared to other investment
    options.
   Lack of information on risk/return profile of the industry.
   Lack of awareness of opportunities on the part of potential investors.
   High proportion of small operators.
   Approval processes that are complex and difficult, and may involve multiple levels of
    government and government agencies within those levels.
   Opportunities that are difficult to exploit because development either involves heritage or
    conservation issues, or the cost and time involved in gaining approvals effectively may be
    preventative.
   Tourism depends upon supporting infrastructure (such as railway, roads, air and sea ports), yet
    the investment in developing or upgrading such infrastructure is outside the control of tourism
    operators, such infrastructure does not solely support tourism and tourism may not be the most
    commercially attractive market that the infrastructure serves.


                                               13
     Of the infrastructure that is used by both resident and tourism markets, there may be a lack of
      focus on serving tourists, and therefore investment to better serve tourists does not occur.
     Tax disadvantages of tourism investments compared to similar investments (e.g. depreciation
      of residential assets).

2.1      Make the case for a high level priority and government commitment to
         tourism investment
To provide a solid foundation for tourism investment facilitation, ensure that tourism investment
is an economic development priority of government. To do this, make a case based on the
benefits of tourism investment, which are outlined in this Guide.

A high level of commitment means that tourism is viewed as an economic development priority.
This is reflected in the importance of tourism investment and the role and importance of investment
facilitation being recognised by senior personnel and ministers.

All levels of government need to show leadership if tourism investment projects are to have the
best chance of succeeding (OECD 2008a and 2008b). In particular, at a state and territory
government level, major projects with a significant tourism investment component generally need
to be championed by the most senior representatives of government (i.e. Premier, Deputy Premier).
Projects that are of a significant scale will invariably need the support of the Minister for Tourism
and other key ministers, such as those responsible for Planning and Economic Development
portfolios. Many of the projects described in case studies in this Guide demonstrate that
commitment and drive from ministers and senior executives invariably feature in successful
tourism investment facilitation.

There needs to be a willingness to bring significant tourism related proposals to the attention of
senior officials and elected representatives. This includes briefing Ministers and their offices early
and often on substantial new or emerging tourism opportunities and their possible facilitation
requirements. The opportunity costs of the investment not proceeding need to be explained. Such
proposals will have a better chance of receiving serious attention if tourism investment is an
explicit economic development priority.

At a local government level, leadership will involve both councillors and senior council staff.
Often, councils will be involved in lobbying other levels of government with regard to specific
tourism related projects or planning amendments. Additionally, there are many instances within an
investment process where council can show leadership through its actions, without relying on
approvals from other levels of government.

Governments can further demonstrate commitment to tourism during international trade missions
and similar activities. Attracting international investors is of key importance to the success of major
tourism projects. Trade missions can be undertaken collaboratively, involving multiple levels of
government. This is explored further in Good Practice 5.5.




                                                14
CASE STUDY

    Southern Ocean Lodge
    South Ocean Lodge is a luxury, multi-award winning lodge located in Kangaroo Island, South
    Australia. This is an example of a ‘signature’ development, which took 18 months to complete
    and cost $16 million to develop. Signature developments such as these are high in strategic
    value as compared to ‘run of the mill’ developments. They provide experiences, services and
    products that are unique to Australia. Currently, the lodge incorporates a main lodge building,
    self-contained accommodation suites and a spa retreat.
    The South Australia Tourism Commission (SATC) has used the Southern Ocean Lodge in its
    international marketing initiatives, in conjunction with the owner, Baillie Lodges. This has
    created awareness of not only the resort itself, but of Southern Australia and Kangaroo Island.
    As an iconic and unique development, Southern Ocean Lodge is used to encapsulate South
    Australia’s destination brand.
    The lodge faced many challenges in moving from idea to reality. The then head of the SATC
    advocated at the highest levels of government on behalf of the development. This resulted in
    the development being supported by the Premier and Deputy Premier, which was crucial at
    key points in the investment process.
    The South Australian Government, through the SATC’s Tourism Development Fund, provided
    $1 million over two years towards critical infrastructure. The government also invested in
    transport and access infrastructure, which made it feasible to develop the lodge in a remote
    area. Southern Ocean Lodge appointed a specialist policy manager to liaise with all levels of
    government, and deal with matters relating to approval and planning processes and expedite
    the development.
    The policy manager was responsible for:
       submissions to all levels of government;
       regular meetings with the Kangaroo Island Council regarding the development and their
        approval;
       regular contact with the (now) Department of Planning and Local Government regarding
        development approval;
       attendance at several public meetings on the island to gauge concerns and answer
        questions;
       liaison with fire authorities;
       meetings, communications and submissions to Native Vegetation Council about the Native
        Vegetation Act; and
       liaison with the Australian Government regarding the Environmental Protection and
        Biodiversity Conservation Act.
    Without financial assistance and facilitation, this project would not have been feasible. Funding
    was directed towards essential services and infrastructure, such as an access road, water
    supply, electrical connection/generation, bushfire prevention measures and wastewater
    treatment. Government funding also supported the environmental sustainability of the
    development, by contributing $50,000 towards the costs of a solar power system.



2.2 Adopt a whole-of-government approach to managing tourism projects
Those involved directly in tourism investment facilitation should develop effective networks with
other areas of government that are relevant to tourism investment.

The appointment of a permanent across-government committee reporting to Ministers to drive
and coordinate tourism investment facilitation will provide a focal point for these activities and
demonstrate government commitment to this objective.

A whole-of-government approach means there is a common understanding across the many
agencies with a role relevant to tourism investment, of the value and importance of tourism related
investment. Furthermore, this understanding extends to agencies adopting a supportive and

                                                   15
cooperative posture towards tourism investment proposals. Many of the case studies in the Guide
show that while the tourism office may have a coordinating role, a great deal of the investment
facilitation effort is undertaken by others, such as planning departments or central agencies.

As the OECD (2010) notes:
    It is not just enough to develop and apply tourism-specific policies. Attention has to be paid both
    to the horizontal and vertical linkages within an economy that are occasioned by the tourism
    sector. This is because governments need to regard tourism as a cross-cutting sector that
    concerns a wide range of activities across economies. Addressing the major challenges faced by
    the tourism industry and maximising tourism’s full economic potential require an integrated
    approach to policy development across many government departments.

In addition to a whole-of-government approach at a given level of government, good connections
need to be established between levels of government, and between government and the investment
community (both domestic and international investors). This is explored further in Section 5,
Partnerships.
CASE STUDY

    Darling Harbour
    Darling Harbour was functionally obsolete in the mid 1960s — a phenomenon common to
    many waterfront cities in the world. A critical element of Darling Harbour however, was that
    virtually the full spectrum of land uses became obsolete concurrently. In addition, there was no
    natural economic successor. The whole area (powerhouse, tram depot, woolstores, wharves,
    railway goods yard) came to an economic halt in the 1960s and 1970s.
    A number of studies (City Council, Department of Planning, Premier’s Department) were
    undertaken in the 1970s and 1980s to examine the redevelopment potential of the area. A
    major finding was that the sheer scale of obsolete physical infrastructure at Darling Harbour
    would inhibit regeneration by the private sector.
    Darling Harbour was seen as a major opportunity for redevelopment as a result of its size,
    proximity to the CBD and its foreshore location. In addition, the government had become
    aware of Sydney’s pressing need for custom-built exhibition and convention facilities. The
    advice to the government was that the scale of physical infrastructure put the project beyond
    the private sector and government would need to take the lead.
    On 1 May 1984 the NSW Government announced Darling Harbour would be redeveloped as
    the state’s contribution to the Bicentennial program for 1988. The intent was to make Darling
    Harbour ‘a place for people’ and create an entertainment, cultural, tourism, educational and
    recreational precinct.
    The NSW Government direction was largely driven by the recognition that this could be a
    landmark development project of national and international significance. The decision to
    commit significant government dollars to the project was based on the assumption that private
    developers would then invest on the back of the public infrastructure.
    Today Darling Harbour contributes more than $4 billion annually to NSW’s economy. More
    than 180 tourism, retail and leisure businesses operate in the precinct. The area hosts some
    28 million visitors each year.
    Darling Harbour is an example of a state government driven renewal project delivering
    significant tourism, leisure, recreation and commerce outcomes. Private enterprise responded
    to the state’s initial investment into the tourism infrastructure of Darling Harbour through
    projects such as Sydney Aquarium, Wildlife World, Imax and several hotels. Private sector
    investment is ongoing as evidenced by the Darling Quarter project.




                                                   16
2.3    Ensure that tourism investment facilitation is in accordance with
       sound public interest principles
Those involved in tourism investment facilitation should ensure that tourism investment
facilitation is undertaken in accordance with the principles described in Section 1.

Government investment facilitation needs to be based on sound public interest principles. The
recommended principles are described in Section 1. These principles are designed to ensure that
investment facilitation leads to good outcomes while minimising risk. Adhering to the principles
will ensure that high levels of public confidence in investment processes are maintained. This is
essential to the successful adoption of the good practices described in this Guide. To take one
example, the Guide stresses the importance of building community awareness of the value of
tourism investment. This support will also depend on the community having trust in the integrity of
the process.




                                              17
      3            Capacity building


   Good facilitation practices discussed in this section
   •  Share information within your organisation about the need for effective tourism
      investment facilitation and your strategy to deliver it.
   •  If necessary, recruit people who provide tourism investment facilitation expertise.
   •  Hold workshops and provide reference and research material to explain your
      organisation’s investment facilitation strategy and build the capability to implement it.
   •  Ensure that the person assigned to work with the proponent has sufficient seniority and
      autonomy to provide guidance and feedback throughout the investment process.
   •  Where information is required from elsewhere, or the developer must be referred to
      another department, be diligent in ensuring that information is provided in a timely
      manner.
   •  For approvals, ensure that all relevant information has been provided and the approving
      body has suitable authority to make the approval decision.
   •  Publish detailed information about the forms of investment facilitation that can be
      offered, and bring this to the attention of industry.
   •  Publish investment guides.



What this is
Capacity building includes: understanding tourism investment; having tourism investment
expertise; having capacity to assess tourism proposals at all stages of the investment planning
process; and assisting in the development of both industry knowledge within government, and
industry knowledge of government.

Why it is important
This area is described as capacity building because there is a general need to develop, and in some
cases rebuild, a detailed understanding of the supply side of the tourism industry. This capacity
building task relates to both government and to those areas of industry that may not be familiar
with tourism developments, and the nature of investment facilitation that can be offered.

For government, capacity includes both a general understanding of the potential importance of
tourism investment and the need for government to undertake facilitation, as well as specific
expertise in carrying out facilitation. This capacity will also assist in the implementation of the
good facilitation practices described in Section 2 — as a whole-of-government approach requires a
good understanding of tourism.

3.1     Build a wide understanding of the benefits of tourism investment
Those with knowledge and experience in tourism investment facilitation should brief others
within their organisation about the barriers to and benefits of tourism investment facilitation.

Governments require an understanding of both the potential benefits of tourism investment and the
barriers to tourism investment that exist. This includes an understanding of the diverse and
particular characteristics of the tourism industry, particularly from a supply side perspective. This

                                               18
understanding is a necessary precondition to governments offering effective tourism investment
facilitation. The benefits of and barriers to tourism investment are described in Good Practice 2.3.

3.2     Embed tourism expertise within government
Organisations undertaking tourism investment facilitation must ensure they have this expertise
and if necessary, recruit people who provide it.

Hold workshops and develop documents to explain your organisation’s investment facilitation
strategy, develop networks, and build the capability to implement it.

To enable the tourism investment facilitation to be implemented well, a pool of knowledge is
needed regarding the specific form that facilitation should take and how investment facilitation
should be implemented. This implementation expertise extends beyond the more general
understanding of tourism investment referred to in Good Practice 3.1. Expertise extends to having a
well-developed understanding of potential sources of investment, which is discussed further in
Section 5, Partnerships.

A number of state and territory tourism offices or economic development departments have
established teams with a dedicated investment facilitation or destination development focus.
Western Australia is an example of note, as the restructure of the state tourism office featured a
greater focus on investment facilitation. These resources should be available to assist local
government. Local government also needs staff with specialist tourism knowledge. This may
simply require the economic development unit to have a person assigned responsibility for tourism,
exclusively or with another industry sector, depending on the size of the council.

Workshops and other forms of collaboration are suggested to develop a wider circle of people who
understand the benefits of tourism investment facilitation and the specific strategy being pursued
by your organisation and the wider government. These sessions are a good way to reach out beyond
those who work in tourism agencies to include people from other parts of government. As tourism
investment facilitation often requires a whole-of-government approach this network will be
invaluable when significant investment proposals are being facilitated and considered by
government.

3.3     Ensure that government agencies have the capacity to assess tourism
        proposals
For assessment other than formal approvals, the person assigned to work with the proponent
requires sufficient seniority and autonomy to provide guidance and feedback throughout the
investment process. Where they require information from elsewhere, or need to refer the
developer to another department, diligence is needed in ensuring that information is provided in
a timely manner.

For formal approvals, ensuring that all relevant information has been provided and the
approving body has suitable authority to make the approval decision will assist in streamlining
processes.

Proposals may be received at different points in the investment process. For instance, a proposal
may be at a concept stage, at which point a developer is testing support for the concept among
investors and government. Or, a proposal may be seeking formal approval to proceed. Regardless
of the stage in the process, government needs to ensure that it has the capacity to deal with
proposals. To do this, governments need to be attuned to tourism related investment in assessing
the merits of proposals. Proposals need to be assessed in a timely manner, with feedback on
proposals being provided to developers so that proposals can be improved, or in the case of
approvals that have been granted, ensure that approval conditions are understood. An effective
feedback loop will help to develop industry knowledge and capacity.

                                               19
3.4    Assist the tourism sector to understand government requirements
Publish detailed information about government policy regarding tourism investment

Inform industry of government requirements to access facilitation

Tourism stakeholders contacted during the preparation of this Guide complained about confusing
and sometimes conflicting requirements involving multiple government agencies at different levels,
and at the lack of clear information on how to proceed in some jurisdictions. A survey conducted in
the preparation of this Guide found stakeholder awareness of available facilitation measures was
low.

Government can help to develop the capacity of industry in a number of important areas. Improved
industry knowledge complements government efforts to improve its own facilitation expertise.

Specifically, governments can inform investors about government policy related to tourism
investment in the context of broader planning and economic develop priorities. This should include
advice on how investment proposals can be designed to reflect a good fit with policy direction and
priorities. As detailed in Good Practice 4.1, governments can also assist by providing clear
information about decision making processes and timeframes, about the obligations of both
government and investment proponents and about the requirements that are to be met for a proposal
to be approved.

In developing industry knowledge on the above points, investment guides can assist. A number of
jurisdictions and councils have developed investment guides, with Appendix A providing further
detail. Investor workshops about government priorities and investment facilitation offered are
another effective strategy to develop industry knowledge.

For example, the Victorian Tourism Investment Guide (Tourism Victoria 2008) is based on a seven
stage tourism investment process (idea, concept, consultation, feasibility, approvals, financial
arrangement and construction). The Victorian guide informs prospective investors of the role of
local government in relation to tourism projects and has a summary tourism project approval
checklist for developers. The guide also provides guidelines on how to prepare a business plan.
There are several case studies, along with success factors, provided throughout the document.




                                              20
      4            Information


    Good facilitation practices discussed in this section
    •  Make available online comprehensive information about tourism investment facilitation
       offered.
    •  Make available clear and easy to follow information about approval processes, including
       what developers will be expected to provide and what they can expect.
    •  Ensure the tourism industry council understands facilitation offered.
    •  Provide specific details of current investment opportunities to make it easier for
       prospective investors to locate potential development sites.
    •  Commission and make available market research and provide this directly to developers
       to assist in preparing business cases and investment proposals.
    •  Undertake and make available region specific research in areas where tourism
       investment is being actively sought.
    •  Provide information in support of investment facilitation in a way that suits potential
       international investors.




What this is
Investment facilitation related to information includes: providing comprehensive information
online about facilitation offered; providing clear documentation on approval processes; providing
information about tourism investment opportunities; providing market research to support
investment proposals; and packaging tourism investment for foreign investors. The good practices
described in the section are most important in the early stages of tourism projects (concept
development and market assessment).

Why it is important
There are significant information gaps in tourism, which tend to have a negative effect on tourism
investment. Those within government who understand tourism investment are uniquely positioned
to assist in bridging these gaps. These gaps include:

    investors not being aware of investment facilitation offered by government;
    parts of government may not fully appreciating the spillover benefits of tourism investment;
     and
    financial institutions not being willing to finance a tourism development because it is unique,
     meaning there is a lack of precedent on which to base market research.
The survey undertaken in preparing the Guide showed a low awareness of current tourism
investment facilitation programs and opportunities among industry. This suggests that, even though
governments are providing information through various guides and websites, the information is not
penetrating the industry to the desired extent.




                                               21
4.1      Provide comprehensive information online about available facilitation
Make available online comprehensive information about tourism investment facilitation offered

Ensure the tourism industry council understands facilitation offered.

Some potential investors are frequently engaged in investment processes and liaising with
government. However, many investors will have minimal experience in development proposals.
For example, a tourism business operator who is planning to expand their current business may be
experiencing the investment process for the first time. For these investors in particular, it is
important that information about investment facilitation offered is easily accessed in a consolidated
form. The state or territory tourism office website is a logical location for this.

Furthermore, the state or territory tourism agency should also ensure that the tourism industry
council understands facilitation offered, as the industry council is a possible first point of contact
for individual tourism operators seeking advice. For example, NSW has extensive information
about investment facilitation offered online. Tourism Queensland’s website provides information
for tourism investors, including advice on approvals, available government assistance and
examples of successful tourism developments. This good practice is most relevant during the
concept development stage.
INTERNATIONAL GOOD PRACTICE EXAMPLE

      Canada (Alberta)
      The Alberta Tourism, Parks and Recreation Ministry offers potential investors three
      comprehensive and distinct guides online: the Tourism Funding Sources Guide; the Tourism
      Development Guide; and the Tourism Business Planning Guide.

      The Tourism Funding Sources Guide provides information on funding programs offered at the
      federal, provincial and institutional levels. This broad guide includes information on various
      funding sources and details such as a description of the program, eligibility/criteria, amount of
      funding and relevant contact information.



4.2      Provide clear documentation on approval processes
Make available clear and easy to follow information about approval processes, including what
developers will be required to provide and what they can expect.

Potential investors are likely to have many questions about the approval process related to a
tourism investment proposal and the requirements that the project will be expected to meet. It is
important that a person with tourism investment expertise is available to either provide this advice,
or arrange for it to be provided. The nature of the questions and the advice will vary depending on
the stage of the investment process and the experience of the investor. Large scale investors may
have planning consultants who are expert in these matters, but small scale investors will probably
be gathering information themselves. For these investors, the provision of clear, timely and
accurate documentation and advice to facilitate the approval process is particularly important. This
shows the potential investor that government is keen to encourage tourism related investment.
Furthermore, it saves investors time, which helps to reduce cost. This good practice is most
relevant during the concept development stage.




                                                   22
INTERNATIONAL GOOD PRACTICE EXAMPLE

      Singapore

      The Singapore Economic Development Board (EDB) is responsible for promoting investment
      and developing strategies to create value for investors and companies. While Singapore has a
      different government system than Australia’s, the government’s investment priorities are clear,
      and this is backed up by the strength of the EDB. The government is able to streamline
      approval of high priority projects, including projects with a major tourism emphasis, such as the
      recently opened Marina Bay Sands casino.

      The key agency in this regard is the Singaporean Urban Redevelopment Authority, which
      provides a high level of assistance to developers seeking planning and construction approval.
      Investors in tourism projects in Singapore have access to planning approval guides and
      handbooks, online planning approval assistance tools, and a planning approval hotline
      designed to guide developers through planning application and approval processes.


4.3       Provide potential investors with information about opportunities
Provide specific details of current investment opportunities to make it easier for prospective
investors to locate potential development sites.

State and territory tourism offices and local government authorities can assist by providing
investors with specific details of investment opportunities. Both the Northern Territory and
Western Australia provide examples of this approach on their websites. The ‘investors’ page of the
Tourism NT site1 includes information about properties for sale and development opportunities.
The Tourism WA website page on ‘investment opportunities’ lists a number of opportunities
currently available under the Landbank initiative2.

This is closely related to good practice in the area of assisting investors during the development
process. The matching of investors to potential investments must be combined with other forms of
facilitation if investments are to succeed. Government sponsored and private sector conferences
and other public events also provide opportunities for state and territory tourism officials to
publicise tourism investment opportunities. This good practice is most relevant during the concept
development and site selection stages.

4.4       Provide market research to support investment proposals
Commission and make available market research and provide this directly to developers to assist
in preparing business cases and investment proposals.

Undertake and make available region specific research in areas where tourism investment is
being actively sought.

The provision by government of high quality market intelligence to support tourism proposals can
be of significant assistance to developers. Tourism investments often struggle to attract finance due
to a lack of precedent developments. Consequently, a tourism development business plan will
invariably be enhanced by government commissioned market research that a developer would not
otherwise have access to. Most state and territory tourism offices provide market research
information in some form, with many having market research data on their website. This usually
includes links to data repositories such as Tourism Research Australia and the Australian Bureau of
Statistics Tourism Satellite Account.




1
    http://www.tourismnt.com.au/investors.aspx
2
    http://www.tourism.wa.gov.au/Investment_Opportunities/Landbank/Pages/Landbank.aspx
                                                   23
Government should make it easy for potential investors to access these sources as a matter of
course. State and territory government agencies should work with Tourism Research Australia to
ensure that its outputs are useful to potential investors. Information supplied by Tourism Research
Australia, the Australian Bureau of Statistics and state and territory tourism agencies is generally
pre-competitive and can therefore be disseminated via the internet. This makes it easily accessible
to potential investors. This form of facilitation is likely to be of particular value to smaller scale
developers who may be new to the range of information that is available.

Queensland’s Tourism Opportunity Plans3 are an example of a detailed and evidence-based
approach which has extended beyond the packaging of publicly available information, to provide a
resource based on extensive scoping work by the state government.

There is a significant opportunity for increased tourism development in many regional areas of
Australia, including many that have not had extensive tourism development in the past.
Governments at state and local level seeking to actively encourage development in these areas
should undertake market research that can be used to support development proposals. For example,
data about potential visitation and market perceptions of a particular region or destination may
assist in demonstrating the untapped potential of the region in question. As an example, Victoria
has focussed on regional tourism investment as a specific priority and the Elloura Resort
development described in this Guide shows this strategy achieving results. This good practice is of
fundamental importance in the market assessment stage.

4.5     Package tourism investment information for foreign investors
Provide information to support investment facilitation that suits potential international investors.

Attracting the interest of a potential investor is an important step before facilitation. This involves
getting the investor interested in Australia or a region of Australia. With this in mind, information
directed towards attracting foreign investors needs to be packaged according to the investor being
targeted. For instance, information may need to be provided in the language of a foreign investor or
investment market that is being targeted. This should be done in consultation with Austrade as
detailed further in Good Practice 5.5. Tourism investment facilitation websites should be developed
with both a domestic and international audience in mind. International investors will generally
undertake web-based research before approaching a potential investment market. This good
practice is likely to be most relevant in the concept development stage.




3
        These plans can be accessed for the various regions in Queensland at
        http://www.tq.com.au/destinations/destinations_home.cfm
                                                24
      5            Partnerships


   Good facilitation practices discussed in this section
   •  Establish permanent consultative mechanisms involving different levels of government
      to provide a basis for ongoing collaboration.
   •  Develop a detailed profile of investors and selectively target investors with specific
      proposals to fill gaps in current supply.
   •  Develop an ongoing fact-based conversation with communities about the potential
      benefits of tourism investment to build community support for investment.
   •  Identify opportunities to work with Indigenous communities to develop proposals that will
      respond to visitor demand and be of benefit to traditional owners.
   •  Have an adequately resourced strategy specifically for engaging international investors.
   •  In relation to major projects, form partnerships with Austrade and Tourism Australia to
      use their expertise in international markets in international investment attraction.



What this is
Investment facilitation related to partnerships includes: developing partnerships between levels of
government; developing networks with the investment community; forming partnerships with local
communities; forming partnerships with Indigenous communities; identifying and developing
relationships with international investors; and working with Austrade and Tourism Australia to
develop international markets. For specific partnerships, the good practices discussed in this section
are particularly relevant from the mid-project stages. However in some cases they may be relevant
in the early stages when government tourism agencies are proactive in identifying tourism
opportunities. Furthermore, it is recommended that partnerships be formed that are not project
specific, which enable an ongoing dialogue among stakeholders with a role in tourism investment
and its facilitation.

Why it is important
Stakeholders emphasised the importance of working together effectively. The relationships
emphasised included those within government, between governments, with the community, with
investors and with Indigenous communities. A number of the case studies show that good
investment facilitation outcomes can be achieved through meaningful partnerships. This is
particularly the case for projects with a high level of community involvement and projects with
Indigenous communities. The importance of partnerships reflects that tourism is an industry based
on expenditure in other industries. The mix of public and private benefits from tourism investment
makes government partnerships with the private sector almost inevitable. Partnerships are needed
for tourism investment to develop and maintain a profile and for the benefits of tourism to other
industries to be recognised.




                                                25
5.1       Develop partnerships between levels of government to facilitate
          tourism investment
Establish permanent consultative mechanisms involving state and local government to provide a
basis for ongoing collaboration, based on the mutual benefits derived from tourism investment.

Where existing collaborative forums exist, work through these bodies and seek to provide
impetus and leadership.

State government should develop constructive and collaborative working relationships with local
governments, particularly those that either have, or are seeking to have, an extensive tourism
investment profile. Additionally, state government has a role in developing the capability and
profile of councils in areas which historically have not had a significant tourism economy but
which have potential to do so. State and territory level government, and sometimes local
government, should also leverage the expertise and networks of Austrade and Tourism Australia, as
discussed in Good Practice 5.5.

More than one level of government will invariably be involved in considering proposals during the
investment process. If levels of government have a shared view of the importance of tourism
investment, this will greatly assist facilitation efforts. Regional tourism bodies often provide the
focal point for these partnerships. Where such a forum is already established, it makes sense to
work through this forum rather than establishing another. This good practice is likely to be most
relevant in the development application and site selection stages.
CASE STUDY

      Elloura Resort Development
      The Elloura Resort Development involved more than three years of planning and was officially
      announced in April 2009. Located outside of Melbourne, Victoria, the $250 million resort at
      Lake Nagambie is currently under construction. Once completed, the resort will have
      numerous resort-style facilities and be a master planned community, including:
         a retail and commercial precinct with restaurants, conference facilities, a waterfront cinema
          and chapel;
         approximately 370 homes with many facing the Lake;
         a 320 site tourist park with two bedroom cabins;
         210 lifestyle/retirement home sites; and
         various amenities such as tennis courts, a gymnasium, swimming pool, children’s play
          areas and an exercise circuit.
      Approximately 300 people will be employed during the construction of the resort and over 100
      people will be employed on a full time basis once construction is complete in five years. It is
      expected that the Nagambie township will benefit significantly from the Elloura Resort
      development through the proposed commercial centre that will include lakeside cafes,
      restaurants, retail shops hotel and conference facilities.

      Tourism Victoria assisted with scoping the initial concept and advised the local council on the
      tourism merits of the project. The Victorian Government appointed a panel that assessed the
      planning scheme amendment. Regional Development Victoria supported complementary
      infrastructure at the development site by funding a pedestrian and cycling linkage around Lake
      Nagambie.

      This facilitation succeeded because of the initiative of Tourism Victoria and the assistance that
      organisation provided in the planning stages of this project.




                                                     26
5.2      Develop networks with the investment community
Develop a detailed profile of investors and selectively target investors with specific proposals to
fill supply gaps in certain market segments.

Those responsible for investment facilitation should develop networks with the domestic and
international investment community. The approaches used for these investment markets are
however quite distinct.

For the domestic investment market, those involved in tourism investment facilitation should have
a good awareness of the key investors, property developers and providers of finance in their region
or jurisdiction. These investors should, in turn, know who in government they can approach on
matters relating to tourism investment proposals. In some cases, a more active stance by
government should be considered. For example, if a government would like to facilitate a boutique
development in a destination which has high visitation but lacks high end accommodation, directly
approaching investors who have undertaken such projects elsewhere is a recommended strategy.

For the international market, approaches must be research-based and well targeted. The
international market offers huge potential for attracting investment in major projects. However,
navigating this market requires considerable expertise and patience. Time and effort is needed to
build up a profile of target investors, and understanding their strategy and motivations. For these
reasons, it is advisable to work with Austrade in seeking foreign investment. Tourism Australia,
through its Australian Tourism Exchange, should also be able to assist. In addition, there are
specialised conferences organised by the private sector that can provide opportunities to meet
potential investors.4

Regional tourism investment plans, guides and similar documents5 are important resources.
These documents may be developed at a state, regional or town level. It is important that the
tourism industry is fully engaged in the development of such plans. Governments will need to
back up plans with facilitation support if investments are to become a reality. This good practice
is likely to be most relevant to the financial feasibility and business plan stage.
INTERNATIONAL GOOD PRACTICE EXAMPLE

      New Zealand
      Tourism New Zealand works closely with the domestic investment community. An annual
      program of industry seminars is conducted in regional areas for tourism operators to exchange
      valuable information on the nature of the tourism industry. The seminars are attended by three
      agencies including Tourism New Zealand, the Tourism Industry Association and the Ministry of
      Tourism. The Ministry of Tourism uses these seminars as a platform to foster closer links with
      the domestic investment community, and to inform tourism operators of the research available
      to assist operators and potential investors.



5.3      Form partnerships with communities
An ongoing fact-based conversation with communities about the potential benefits of tourism
investment is an effective way of building community support for investment.

If communities understand the benefits of tourism investment they are more likely to support
proposals. An ongoing effort to build community awareness of the potential benefits of tourism
related investment is required, particularly in locations with high tourism potential where there has

4
         Examples include the Hotel Investment Conference Asia Pacific, and the Australia,
         New Zealand and Pacific Hotel Industry Conference.
5
         For example product gap audits, destination management plans and other resources
         available from state and territory tourism websites and Tourism Research Australia.
                                                  27
been little recent investment or investment opportunities have not been fully realised. This activity
needs to be seen as developing partnerships with local communities rather than just providing them
with information.

As Section 2 described, the potential benefits of tourism investment are significant. While
economic benefits are of key importance, the social and environmental potential of tourism should
also be emphasised.

In choosing where partnerships should be developed, governments should consider areas where
additional tourism investment will be most desirable and feasible. Such areas may include
metropolitan coastal areas and hinterlands adjacent to large population centres.

Partnerships can also lead to the development of events, or an events calendar, in a town, region or
city. In this case the partnerships are between the major organisations in the community that
organise events (e.g. sports and cultural organisations). The implementation of an events calendar
will ensure that visitors are attracted to a city or town throughout the year. Victoria and South
Australia provide examples of the effective use of an events calendar. This can assist in smoothing
peaks and troughs in accommodation demand that, in turn, will encourage infrastructure
investment. Research undertaken for this Guide has highlighted the value of the events calendar
approach. This good practice is likely to be most relevant in the consultation stage.

CASE STUDY

    Inside Australia project, Lake Ballard, WA
    In 2003 the University of Western Australia and Perth International Arts Festival commissioned
    Antony Gormley, an internationally renowned artist, to produce a sculptural exhibition titled
    Inside Australia at Lake Ballard, near the town of Menzies, in the remote Goldfields region of
    Western Australia. The sculptures were derived from 51 digitally scanned blackened
    sculptures of local residents.

    The exhibition was intended to be mounted as a temporary installation, however due to the
    popularity of the exhibition and the artist’s offer to give the exhibition to the State of Western
    Australia, Richard Muirhead, CEO Tourism WA facilitated a meeting with relevant stakeholders
    (including Antony Gormley) to ascertain the most appropriate and cost effective way to retain
    the work at Lake Ballard.

    Tourism WA secured sponsorship funding to implement all the elements of Antony Gormley’s
    vision to expand the exhibition and provide a range of visitor amenities. After all avenues to
    secure private funding were exhausted, supplementary funding was granted to Tourism WA by
    the State Government in 2007-08 to complete works associated with the sites and statues. A
    further $77,671 to the Department of Culture and the Arts annually from 2007-08 and indexed
    at 4 per cent for one year then 3 per cent per annum was provided thereafter to undertake
    conservation and curatorial works.

    In 2007 Antony Gormley gave the 51 sculptures, which have an estimated value of $10 million,
    to the State of Western Australia, subject to a number of contractual obligations as per the
    Deed of Agreement signed between the WA Government and the artist.

    Tourism WA drew down only $85,360 of the supplementary funding, as funding from other
    sources including Lotteries West and the Department of Local Government and Regional
    Development was secured.

    In late 2010 the Lake Ballard site works were completed to the artist’s satisfaction as stipulated
    in the Deed of Agreement. Over 10,000 people now visit Lake Ballard each year and this figure
    is steadily rising as the exhibition gains increased national and international media exposure.

    This project is an example of what can be achieved when there is good cooperation between
    government agencies, local government and other organisations. In this case the parties
    involved included Tourism WA, the Department of Culture and the Arts, the Department of
    Local Government and Regional Development, the Department Environment and
    Conservation, the Shire of Menzies, the Goldfields Land and Sea Council and the Perth
    International Arts Festival.


                                                  28
      Tourism WA capitalised on the opportunity that emerged from the artist’s offer to give the
      sculptures to the state. The head of Tourism WA then consulted relevant stakeholders about
      ways to retain the sculptures at the lake.
      A tourism opportunity was spotted. Lake Ballard is a remote area with a lack of access
      infrastructure, but the WA Government recognised that its novelty could be a tourist drawcard.
      Tourism WA also provided a range of visitor amenities, which made the exhibition more
      feasible to visitors.
      This case study provides an example of how government can develop a tourist attraction,
      leveraging government investment with lottery funds, even when it seemed at first sight that it
      might not be feasible on the demand-side. The project is drawing visitors into the region,
      bringing benefits to Kalgoorlie and local towns.



5.4       Form partnerships with Indigenous communities
Identify and explore opportunities to work with Indigenous communities to develop proposals
that will respond to visitor demand and be of benefit to traditional owners.

Stakeholder consultations provided information that many international visitors want meaningful
experiences of Indigenous culture. This interest and the flow-on benefits of tourist expenditure,
mean that tourism investment offers great opportunities for Indigenous communities. There are
many opportunities for tourism projects to be developed based on partnerships with Indigenous
communities. Those involved in tourism investment facilitation should get advice from the relevant
government agency about working with Indigenous communities. Indigenous Land Use
Agreements are a specific type of agreement when native title is involved. These agreements cover
all forms of land use. For a tourism specific initiative, an agreement specifically related to that
purpose is preferable as this is likely to be more straightforward for all parties.

Governments wishing to facilitate these partnerships need to be prepared to take the time to
develop trust-based relationships with Indigenous communities through face to face discussions.
Where native title is a consideration, formal agreement with traditional owners will be necessary
for a project to proceed. This good practice is likely to be most relevant in the consultation stage of
the investment process.
CASE STUDY

      Purnululu National Park safari camp
      The soon to be opened safari camp in Western Australia’s Purnululu National Park (Bungle
      Bungles) has been created under the Naturebank program. Intrepid Connections, a
      partnership between Intrepid Travel and Australian Pacific Tours (APT) was selected to
      develop the site in the foothills of the Bungle Bungles. This follows previous developments at
      Purnululu by the APT-Wunan joint venture and East Kimberley Tours, a Kununurra based tour
      operator.
      The safari camp represents the development of regional nature-based tourism through the
      Naturebank partnership between the Department of Environment and Conservation (DEC) and
      Tourism Western Australia. Naturebank was established in 2009 with the objective of
      preparing and releasing nature-based visitor accommodation sites in Western Australia.
      Naturebank is a derivative of the Landbank program and aims to develop tourism
      accommodation facilities in or near WA’s protected areas.
      Naturebank reduces costs related to development in protected areas through the:
         identification of sites considered to be suitable for low impact tourism accommodation
          development;
         undertaking of due diligence by evaluating identified sites of their potential to support low
          impact development and further to identify any potential obstacles, including any cultural
          issues with traditional owners; and
         releasing of ‘investor ready’ sites for interested developers through a competitive process
          managed by the DEC.


                                                   29
      DEC and Tourism WA are responsible for the pre-release clearances of the site. They check to
      see that there are water supplies, access roads, tracks, no endangered flora/fauna or any
      other environmental impediments and no unresolved native title or Aboriginal heritage issues.
      They undertake any other necessary studies.

      The key to the successful development of this project was the partnership between the
      government, Intrepid and the Indigenous community. Tourism WA played a central role in
      working with the Purnululu community. This involved developing a relationship of mutual trust
      based on many visits to the region.



5.5      Identify international investors opportunities and work with Austrade,
         Tourism Australia and economic development departments to develop
         international investment
Those involved in investment facilitation in relation to major projects require an adequately
resourced strategy specifically for engaging international investors.

Work closely with the state and territory agency responsible for investment promotion, Austrade
and/or Tourism Australia in these efforts.

The pool of funding available from the Australian tourism investment market for major projects is
relatively shallow. The international market offers huge potential for attracting investment in major
projects. However, navigating this market requires considerable expertise and patience. Time and
effort is needed to build up a profile of target investors and understand their strategy and
motivations for investing. This requires the provision of high quality information and the
development of networks and relationships.

Identifying and attracting international investors requires a level of time and commitment that some
jurisdictions may find daunting. Tourism Australia, Austrade and state and territory economic
development departments are well placed to provide investment information about a particular
jurisdiction or region to international investors. These agencies have relevant expertise and contacts
and are working to promote Australia as an investment destination. Austrade has an international
network of investment specialists who work closely with the states and territories across a range of
industry areas in attracting and facilitating foreign investment. This good practice is likely to be
most relevant to the concept development stage of the investment process.

For example, the City of Perth and the Government of Western Australia work in partnership to
attract international investors to consider Perth as a destination for major tourism developments.
The features of this arrangement include the Lord Mayor of Perth leading international delegations,
which have a major focus on attracting tourism investment to the state. Some of the relationships
with developers have taken several years to reach a point where further tourism investments in
Perth are now considered likely. This good practice is likely to be most relevant to the concept
development stage.
CASE STUDY

      Wolgan Valley Resort and Spa
      Emirates recognised the potential for a world-class conservation based tourism development
      in the spectacular foothills of the mountains west of Sydney. Occupying just two per cent of a
      4,000-acre conservation reserve, Wolgan Valley Resort & Spa has been designed to meet the
      expectations of the high-end traveller, and with a commitment to broader social, ecological and
      environmental sustainability.
      The NSW Government worked with Emirates over six years to support this investment, helping
      to resolve site selection, water supply and developmental issues.




                                                  30
      6            Approval processes


   Good facilitation practices discussed in this section
   •  Set sites aside for tourism projects and clear regulatory and planning approvals for
      tourism projects at those sites.
   •  Align the objectives of tourism investment with local planning requirements.
   •  Work collaboratively with other levels of government and with investors to shape
      investment proposals so as to achieve approvals.
   •  Appear on behalf of tourism investment proposals at planning tribunals where the
      proposal has the features being sought by the jurisdiction.
   •  When considering major proposals, an across-government project committee should be
      formed to facilitate the proposal.
   •  In appropriate circumstances, refer tourism investment proposals from local to state
      government for approval.
   •  Assign a person with suitable expertise and sufficient influence to each significant
      investment proposal to help developers navigate government and provide a high level of
      responsiveness.


What this is
Investment facilitation related to approval processes include: zoning sites for tourism and
streamlining approval; aligning tourism strategies with local planning; creating mechanisms within
government to facilitate decisions on tourism investment; ensuring timely decision making;
assigning an investment facilitation specialist to facilitate major investment projects; and ensuring
the appropriate level of government has approving authority, given the nature of the project being
considered. The good practices discussed in this section are applicable at the Development
application stage of projects. However some of the facilitation discussed here is needed well before
development applications are prepared.

Although this Guide is focussed on providing investors with practical assistance to navigate
existing approval requirements, local and state government should take steps to review current
approval processes and simplify them where possible. Importantly, governments should not wait
for these review processes to run their course before taking action. There are a number of practical
and helpful steps that can be taken to assist investors in navigating existing approval requirements.

Why it is important
The time taken for some government approval processes can impact negatively on the tourism
sector. Streamlining processes can make a significant difference to project viability, particularly for
smaller investors.

Stakeholders have major concerns with unreasonably long or complex approval processes.
Investors cited examples where approvals had taken years to obtain. Government officials from
both state and local government also expressed frustration at the time taken for approvals. The
government survey indicated both levels of government consider they can add considerable value
by streamlining approval. Good practices in this section provide practical detail to work within


                                                31
current systems to streamline approvals. The advice on approval processes supports the need for
government to adopt a whole-of-government approach to tourism investment facilitation.

6.1      Zone sites for tourism and streamline approvals
Set sites aside for tourism projects and clear regulatory and planning approvals for tourism
projects at those sites.

The setting aside of sites specifically for a tourism use (or a mixed-use that includes tourism) is
known as preferential zoning. This approach is used mainly where a jurisdiction has determined a
specific need for a significant tourism investment, which could be the result of a product gap audit.
While this is a good practice, governments doing this may need to be willing to accept a lower
price for such a site, compared to what could be achieved through a sale without such a condition.
This approach is justified on the basis that net benefits (including social and environmental
benefits) should exceed income foregone. This is because investors will generally take the view
that a site earmarked for tourism will deliver a lower return on investment than could be achieved
by other uses.

Taking a site through the investment process from zoning onwards will require ongoing resourcing
and periodic negotiation with the developer at key points. For instance, agreement will need to be
negotiated in response to an expression of interest issued by government for a specific tourist
development. Governments adopting this practice should streamline the process by clearing as
many approval hurdles as possible, and presenting tourism development opportunities as
‘investment ready’. This good practice covers a number of stages in the investment process. There
are several relevant examples of preferential zoning in the case studies in this Guide.
CASE STUDY

      Barangaroo, Sydney
      Barangaroo involves the redevelopment of three areas — the Headland Park, Barangaroo
      Central and Northern Cove, and Barangaroo South. The Barangaroo project will oversee the
      development of a vacant 22-hectare industrial site that will include commercial, residential and
      recreation precincts. This includes the creation of a new public Headland Park on the harbour,
      amongst other community, residential and commercial developments. Construction is
      expected to commence late 2011, with the Headland Park expected to open late 2014. It is
      anticipated that the Headland Park will be an iconic development in the Sydney CBD.
      Additionally, the Headland Park will boost the Sydney’s status as a financial services hub of
      the Asia Pacific, as it will house offices for major commercial tenants.

      Following intervention of the NSW Government, Lend Lease, the developer of Barangaroo
      South, submitted an amendment to the concept plan to include the provision of a cultural
      centre, a hotel on a pier and reconfiguration of the promenade, amongst other things. This has
      subsequently been approved by the NSW Department of Planning.

      Investment in Barangaroo is expected to exceed $3 billion, and draw 33,000 visitors a day. A
      mixed-use development, Barangaroo will provide 508,300 square metres of commercial,
      residential, tourism, retail and community space in the development zone, and 11,500 square
      metres in the public domain. It will also include transport infrastructure such as a new ferry
      terminal and pedestrian links to connect Barangaroo to existing public transport networks.

      The NSW Minister for Planning approved the concept plan for Barangaroo, and agreed that
      120,000 square metres of additional commercial floor space would be built. The Barangaroo
      Delivery Authority was established under the Barangaroo Delivery Authority Act 2009 to
      manage the city waterfront development at Barangaroo and to deliver benchmarks in urban
      design, public domain and sustainability.

      To function and service visitors effectively, Barangaroo has to be serviced by public transport.
      The NSW Government has proposed a light rail and a ferry hub at Barangaroo South.
      Planning with NSW Government agencies in relation to this infrastructure has commenced.


                                                   32
      A Barangaroo Coordination Group was established to provide coordination and effective
      delivery of Barangaroo. Members are the Chief Executives/Directors General of the
      Department of Premier and Cabinet, Department of Planning, NSW Transport, NSW Treasury
      and the Barangaroo Delivery Authority.

      The Barangaroo project is a ‘mixed-use’ development — it consists of a range of community,
      residential, retail and commercial projects. Mixed-use developments tend to attract a relatively
      constant stream of visitors compared to a single-use development built in isolation. This would
      reduce demand-side volatility, and hence a steadier stream of income. The government and
      planning authorities have a key role in coordinating the various developments.

      Additionally, and importantly from a tourism investment standpoint, the NSW Government
      made it mandatory that a hotel be included in the development. The government also agreed
      that the hotel site be provided at a low lease cost. Having a hotel on site would attract more
      visitors to Barangaroo, ensuring that the businesses in the area have a steadier income
      stream. If this initiative had not been taken, Barangaroo would not have included a hotel.

      The role of government in the development included:

         Consulting with stakeholders, community groups and interested parties on various issues
          such as project approvals, assessment and development. For instance, because
          Indigenous culture is a key consideration in the development, the Barangaroo Delivery
          Authority has appointed a specialist firm to undertake the consultation process with the
          Indigenous community.

         Liaising and putting forward submission to government agencies, for instance liaising with
          the Department of Planning and submitting documents to the Land and Environment Court
          regarding matters of contamination.

         Playing the role of the roads authority for parts of Hickson Road, Napoleon Street and
          Sussex Street. Activities of the authority include scheduled meetings with the City of
          Sydney to keep it informed about the Barangaroo remediation, amongst other things.

      In essence, the Barangaroo Delivery Authority plays a leadership and coordination role. As a
      single agency, it is kept well informed on all key aspects of the ongoing development of
      Barangaroo. It also facilitates the process of having to deal with different government
      responsibilities (e.g. environmental, infrastructure, tourism and leisure).

      The NSW Government required the developer of Barangaroo South to include the provision of
      a cultural centre, a hotel on a pier and reconfiguration of the promenade, among other
      features.




6.2       Align tourism investment strategies with local planning
Align the objectives of tourism investment with local planning requirements.

Work collaboratively with other levels of government and with investors to shape investment
proposals so as to achieve approvals.

Appear on behalf of tourism investment proposals at planning tribunals where the proposal has
the features being sought by the jurisdiction.

Beyond legislative and regulatory changes — which are important but can take a long time to
achieve — state and local government should take practical steps to find alignment between what is
being sought from tourism investment, and local planning requirements. If unreasonable regulatory
impediments are identified, a unified approach to the relevant minister or authority will be more
likely to succeed. The work of the OECD highlights the importance of aligning tourism investment
strategies with local planning. Research undertaken in the preparation of this Guide found that a
number of OECD countries emphasise the importance of linking tourism strategies with planning
arrangements (OECD 2008b).

                                                   33
Ideally, a state’s tourism strategy will be compatible with the development plan or planning
scheme. This means, for example, that definitions of land use will include tourism uses. Beyond
regulatory considerations, it means that local councils should have an awareness of the benefits of
tourism investment and an understanding of the state government’s tourism investment objectives.

Governments can show their support for tourism proposals by making submissions or appearing on
behalf of proponents in development tribunals. This sends a clear message about the government’s
view of the value of the proposed development. This good practice is likely to be most relevant in
the development application and concept design stages.
CASE STUDY

      27 Little Collins Street Melbourne
      Located at the ‘Paris End’ of Little Collins St, Melbourne, this mixed-use development will
      have 32 stories. The initial proposal was for a residential development. The building was sold
      after this approval had been granted. The new owners negotiated with the Victorian
      Department of Planning and Community Development (DPCD) to increase the height of the
      building. The inclusion of a hotel was made a condition of approval (and after it occurred, the
      height limit was increased).

      The building will contain a 5 star international brand hotel of approximately 175 guestrooms
      and suites. The upper levels and majority of the tower includes 143 apartments and 44 luxury
      residences comprised of 1, 2 and 3 bedrooms. The ground floor is to be occupied by shops.

      Tourism Victoria put the case to the DPCD for the inclusion of a hotel in the development and
      DPCD was convinced of the tourism benefits that a hotel would bring. The Minister for
      Planning and Community Development, who was the responsible authority in relation to the
      approval of this development, referred the proposal to the (now disbanded) Central City
      Standing Advisory Committee. The membership of this Committee included Melbourne City
      Council as well as state government appointees, which was formed to assess CBD proposals
      over 25,000 square metres.

      The DPCD agreed to a higher floor space ratio (FSR) in return for the inclusion of a hotel in
      the development. DPCD, with the support of Tourism Victoria, facilitated the proposal through
      the committee review process.




6.3      Create mechanisms within government to facilitate decisions on
         tourism investment
When considering a specific proposal, an across-government project committee should be
formed to facilitate the proposal.

Tourism is by its nature an industry that is embedded in many other industries. Reflecting this,
there is a need for a whole-of-government approach. Tourism related proposals will often require
input from many agencies of government, including planning, environment, heritage, liquor
licensing and treasury among others. This will be needed both for approval purposes, but also to
ensure that proposals strike an appropriate balance between different priorities and objectives.
Tourism agencies need to be able to bring together senior representatives from other parts of
government to facilitate decisions during tourism investment processes. Related to this, facilitation
efforts need to be coordinated and appropriately packaged so as to provide the best chance of a
successful outcome. This includes government agreeing on the acceptable limits of facilitation to
be provided. The Barangaroo case study provides an example of this good practice, which is likely
to be most relevant in the development application stage.




                                                  34
6.4     Ensure timely decision making on tourism proposals
To make decision making as timely as possible, a number of the good practices stated in this
Guide need to be evident: the importance of tourism investment needs to be understood at senior
levels; there needs to be coordination of effort; and investors should be given good advice and
support about application requirements.

For investors, time is money. Streamlining processes and minimising layers of authority will
expedite decision making. While these steps should occur, the reality is that regardless of the size
and location of a development, no one organisation or individual has control of an entire approval
process. This inevitably means that decisions require some time as information is considered and
recommendations made.

However, those seeking to facilitate tourism investment can take initiative to minimise the time
taken in making decisions. They can ensure that the significance of a tourism proposal is
recognised by those involved in the decision making process, and that all required information has
been provided in support of the proposal. To ensure the application is comprehensive and
government is well informed, the proponent should meet with officials prior to a development
application being lodged. A high quality development application is imperative to achieving
improved assessment and decision timeframes.

Timeliness may extend beyond formal approvals (such as those by a planning authority), to other
aspects of facilitation, such as organising meetings with other areas of government or arranging site
inspections. Regardless of the level of government, those with a direct interest in tourism
investment facilitation should ensure that proposals have the best chance of succeeding, and that
processes related to tourism investment take place in a timely manner. This good practice is likely
to be most relevant in the site selection and development application stages.

6.5     Assign investment facilitation specialists to facilitate major
        investment projects
Assign a person with suitable expertise and sufficient influence to each significant investment
proposal to help developers navigate government and provide a high level of responsiveness.

Assigning a dedicated investment facilitation specialist who provides a single point of contact into
government can be an effective strategy to assist investors through approval processes. The person
is responsible for providing an answer to all queries themselves, or arranging the necessary
response from other parts of government. Such individuals need to be sufficiently skilled in
investment facilitation, and knowledgeable of government, so as to be effective in streamlining
approvals and providing access to the appropriate level of decision making. A word of caution —
assigning an investment facilitation point of contact can have the effect of causing a blockage if
this person is unable to coordinate the fast and effective collection of information. This good
practice may be more effective on public land, as government then has the advantage of being the
landowner. This good practice will apply across a number of stages in the investment cycle,
beginning with concept development.

6.6     Ensure that the appropriate level of government is dealing with each
        proposal
In appropriate circumstances, refer tourism investment proposals from local to state government
for approval.

Some jurisdictions lack the necessary contact points and expertise when it comes to processing
tourism investment. This appears to be a challenge in local governments where major tourism
developments are infrequent. In these cases, local government may lack the technical expertise to


                                               35
handle major tourism development proposals. When this happens, state government may be better
suited to considering development applications.

When the state government calls in an approval, it is important that the approval processes are
adequately supported by technical expertise and that review mechanisms engage local government
representatives. This will give that level of government some ownership of the outcomes.

However the elevation of certain proposals to state government needs to be transparent and based
on a common set of criteria. It also needs to be supported by planning and other relevant expertise
at state government level. While the importance of having the appropriate level of government deal
with development proposals is relevant to all types of development, it is referred to here
specifically in the context of tourism related investments, where it often arises. This good practice
is likely to be most relevant to the development application stage.




                                               36
       7            Infrastructure and land provision


   Good facilitation practices discussed in this section
   •  Scan development proposals with a view to making the inclusion of tourism
      infrastructure a condition of major developments.
   •  Review holdings of government land and buildings to identify sites that could be
      appropriate for tourism investment. The merit of converting identified sites to tourism
      use should be assessed based on the costs and benefits of this strategy compared with
      unchanged use.
   •  When using government land for tourism development, offer lease holdings over a very
      long term (99 years) at a cost that may be less than the rate that would be achievable
      for a non tourism use.
   •  Recognise that the nature of some projects is such that government will need to directly
      invest in some tourism related infrastructure — with co-funding from private investors.
   •  Identify the infrastructure that could deliver the most significant tourism benefits and
      assess the merits of undertaking these projects based on the potential return on
      investment and the viability of public private partnerships.
       Assist with the provision of access to and utilities for tourism facilities.




What this is
Infrastructure and land provision involves: making the provision of accommodation a condition of
major developments and licenses; identifying and making available land and buildings for tourism
investment; ensuring that government leases of land/buildings for tourism are long term and reflect
a realistic cost relative to their use; recognising that some tourist facilities require government
investment; recognising that transport facilities are essential to tourism and need government
investment; and assisting with the provision of access and utilities. In some cases, the good
practices discussed in this section are needed at the site selection stage. In other cases they apply at
the financial feasibility and funding stages of an investment process.

Why it is important
Providing infrastructure and land for tourism use is important because government assets and land
holdings often offer tourism project potential. Initiative from government can transform these
assets to a higher value use, while also adding to the supply of quality tourism products. As
custodian or owner of these assets, government is often in a unique position to lead this process.
Furthermore, good practice related to infrastructure and land provision has an enabling role. The
upgrading and development of transport facilities (e.g. airports, rail and sea terminals) can underpin
wider tourism investment facilitation measures. An investor is more likely to undertake a project if
tourist access is of high quality.

Furthermore, adequate investment in its tourism assets is essential to ensuring that a region is able
to attract tourists. Effective and sustainable management of tourism assets can lead to improved
facilities for residents and conserve the environment, heritage assets and Indigenous culture.
Stakeholders advised that there are many opportunities for governments to take direct action to
facilitate tourism investment, as the owners of buildings and land. Stakeholders also cited many
examples of under-investment in infrastructure that supports tourism. There was strong consensus

                                                  37
from state and local government in the survey responses, that the provision of public infrastructure
that benefits tourism is one of the most effective form of investment facilitation. As the case studies
in this Guide show, land is something that state and territory governments can provide on
favourable terms, to get desired tourism outcomes. The nature of the market failures in tourism are
such that there are many instances where government investment in infrastructure that benefits
tourism is appropriate, particularly where it leverages private sector investment. The main market
failures supporting this relate to public goods.

7.1     Make the provision of tourism infrastructure a condition of major
        developments
Scan development proposals with a view to making the inclusion of tourism infrastructure a
condition of major developments.

Increasingly, successful tourism development projects have a mix of uses. In some locations, such
as central business district areas, a mixed-use development represents the only viable strategy to
increase the supply of tourism infrastructure. Consequently, there is an opportunity to require
developments to include tourism infrastructure (accommodation and attractions). This approach
can provide a win-win outcome for investors and governments that are seeking to increase the
supply of high quality tourism infrastructure.

Without this intervention, a developer may choose not to offer tourism infrastructure and instead
direct the value of an investment to other areas, which are expected to deliver a higher return.
Making accommodation or other tourism infrastructure a condition of development approval is
likely to still be commercially attractive to the developer, as the project will also generate returns
from other uses (residential apartments, retail, office space, casino, clubs etc.). This may require a
trade off, such as the granting of a number of gaming machine licenses in return for an agreed level
of hotel accommodation.

While the accommodation component of a development might provide a lower return than other
components, accommodation draws people to the development. This in turn is attractive for
investors in other elements of the development — such as retailers — because they can be assured
of pedestrian traffic from the adjoining hotel or attraction. This good practice is likely to be most
relevant at the site selection stage.

The 27 Little Collins Street case study in Good Practice 6.2 provides a good example of this best
practice. Major waterfront developments, such as the Darwin and Cairns case studies described in
this section, have also adopted this approach.

7.2     Identify and make available land and buildings for tourism investment
Review holdings of government land and buildings to identify sites that could be appropriate for
tourism investment.

Assess the merit of converting identified sites to tourism use based on the costs and benefits of
this strategy compared with unchanged use.

Government owned land and buildings can offer significant potential as tourism investment sites.
Governments can be proactive in reviewing existing land holdings and heritage sites to identify
those that offer potential for projects featuring tourism. Equally, governments should be willing to
assess the merit of these proposals when prospective developers bring them forward.

Around Australia, several former government buildings (old Treasury buildings and post offices
etc.) have been converted to hotels. Existing land holdings in prime tourism locations, such as those
in CBDs or near major waterways, are likely to be prime opportunities for tourism developments.
Through preferential zoning (Good Practice 6.1) and by streamlining approvals (as discussed in

                                                38
Section 6), governments can ensure that these sites provide high quality tourism infrastructure,
which responds to the supply shortages currently being experienced in many locations and market
segments.

Similarly, in regional locations, state and local governments can use this strategy as a basis for
facilitating tourism investment. Governments should be aware that extensive preparatory work and
negotiation will be required to move from the identification of a site through to a successful
development. As explained in Good Practice 6.1 government will also need to be willing to accept
a lower price on the sale of land that has been zoned for a tourism development, in order to gain
greater net benefits (including social and environment benefits) for the government and the
community.

Appropriate development of parks and heritage buildings can allow more people to experience
these sites. It can also generate revenue that can be reinvested in programs directed towards
restoration and conservation. Government leadership in this area can involve amending legislation
to recognise tourism as a legitimate use of heritage buildings and parks. This good practice is likely
to be most relevant at the site selection stage.

Perth’s Old Treasury Building (Good Practice 7.3) and the Canberra dormitory project case study
below are examples of this good practice.
CASE STUDY

    Canberra dormitory project
    The tourism market in the ACT is primarily domestic, with tourists arriving mainly by road from
    Sydney and NSW. Due to the role of Canberra as the national capital, significant opportunities
    exist for education-based tourism. This goes beyond catering to tertiary students enrolled in
    the two ACT universities (University of Canberra and the Australian National University). It also
    includes capitalising on the many educational excursions made by school-aged children. For
    instance, the National Electoral Education Centre, National Zoo, National Arboretum and
    National Portrait Gallery all have the potential to attract more school-aged tourists.
    The ACT Government has been concerned about the provision of accommodation for the
    165,000 school children that visit each year. Canberra has had a shortage of suitable
    accommodation for this market. These school children stay mostly in accommodation rated 3
    stars and below. However, as land values rise, this sort of accommodation tends to be
    redeveloped (e.g. the Macquarie hostel site was redeveloped to provide the Hotel Realm).

    Several solutions to this problem have been explored. In 2010, the responsible minister
    responded by setting aside a site in the suburb of Watson for a development to address this
    shortage. The site was auctioned. In order to bid, developers had to be pre-registered, which
    required a business plan that demonstrated that they understood and were committed to
    student tourism. The lease purpose clause cannot be changed for 10 years and construction
    has to be completed in 36 months. The site sold for less than if it had been offered for
    residential apartment development.
    The ACT government accepted the lower price because it recognised the importance of
    increasing the supply of accommodation for school children visiting the ACT, and the ensuing
    tourism benefits it would generate. Besides the usual benefits that tourism brings (income,
    employment, economic activity), there are other intangible benefits to be realised as well. For
    instance, in this case tourism generates educational benefits for school children, enhances the
    profile of Australia’s capital and contributes to a sense of national pride among young
    Australians.
    In taking this action, the minister emphasised the government’s commitment to achieving a
    suitable development in a timely manner. The leadership role played by the government was
    reflected in a high level of cooperation between the ACT Government agencies involved in the
    project (the ACT Planning and Land Authority, Territory and Municipal Services and the Land
    Development Agency).




                                                 39
7.3     Government leases of land/buildings for tourism should be long term
        and at realistic cost
When using government land for tourism development, offer lease holdings over a very long
term (99 years) at a cost that may be less than the rate that would be achievable for a
non-tourism use.

In situations where land is expensive, such as central business district, adjacent areas and state
parks, crown land can be offered as an incentive to tourism investors. There are a number of
variants of this model that can be used. Long term leases — of up to 99 years — provide investors
with certainty about the lease component of their operating cost and demonstrates a commitment
from government to ensuring that a site will be used for tourism over a very long time.
Additionally, because the return from a tourism related use is likely to be less than that for an
alternative use, governments need to set lease costs at a level that recognises this. This good
practice is likely to be most relevant at the financial feasibility and business plan stage.
CASE STUDY

   Perth’s Old Treasury Building

   Perth’s Old Treasury Buildings will be the key major redevelopment of the St George’s Cathedral
   Heritage Precinct Area. Cooperation between the state government, City of Perth, the Public
   Trustee, the Anglican Diocese of Perth, developers Mirvac and Cbus Property, and hotel owners
   and operators, Amanresorts, has been the key to ensuring commencement of several construction
   and development projects in the area. The Cathedral Heritage Precinct is expected to include:
      the redevelopment of the Old Treasury Buildings site, including a new 29,000sqm office tower
       and a boutique hotel in the heritage listed buildings;
      demolition of the Law Chambers Building to enable development of a new City of Perth Library;
      full refurbishment of the Public Trustee Building to deliver an 8,000sqm office; and
      underground parking to service all the buildings.

   The government will take up a 99 year lease on almost 37,000 square metres of office space in this
   development. This development is a significant step towards the government’s long-term office
   accommodation plan and lays the foundation for a justice precinct. This is a mixed-use
   development, and the inclusion of office accommodation along with the hotel made the
   development viable. By entering the lease at an above market rate, the WA Government is
   providing a financial incentive for the hotel development. In doing this, the government is also
   ensuring an adequate return on investment for investors.

   The main form of facilitation for the redevelopment of the Old Treasury Buildings were assistance
   provide by the state government and Tourism WA. The WA Government approved financial
   assistance. Tourism WA provided essential information and research to investors, facilitated the
   negotiation process and coordinated the agencies and authorities involved.
   The government contributed $50 million towards the heritage conversion, which made the project
   feasible for the key parties involved (Amanresorts, Mirvac and Cbus Property). The role of
   government in leadership and coordination was crucial to the go-ahead of this project, which
   required cooperation between the state government, City of Perth, the Public Trustee, the Anglican
   Diocese of Perth, the developers and hotel owner-operators.
   For the public tender process to redevelop the Old Treasury Building, the state government
   identified four parameters to guide the redevelopment process:
      the provision of the property to the successful tenderer on a long-term ‘peppercorn’ lease-back
       arrangement;
      an understanding that the hotel conversion would not be viable in isolation without the provision
       of additional redevelopment of adjoining property;
      the provision of a range of other planning incentives and mixed-use property to encourage the
       redevelopment; and
      the provision of financial grants to cover the additional costs of maintaining heritage structures
       on the property.


                                                  40
     The report by the Property Council of Australia also recognised that the key challenges of the
     development are the attraction of other property uses with superior returns and the high
     construction costs in Western Australia.
     This project demonstrates that heritage based hotel developments generate economic, social and
     cultural benefits for the public (the full benefit of the investment does not accumulate to the private
     investor alone). By providing financial incentives, the government is ensuring that the investment is
     worthwhile for the private investor, while at the same time realising the additional (social and
     cultural) benefits generated by tourism.



7.4       Recognise that some tourist facilities require government investment
While the focus of government should be on facilitating private investment, government also
needs to recognise that the nature of some projects is such that government will need to directly
invest in some tourism related infrastructure — with co-funding from private investors.

Investment in infrastructure that supports tourism can enhance existing tourism facilitation
mechanisms. Research into which infrastructure developments or refurbishments could generate
increased visitation should be matched with a willingness of governments to invest in order to
achieve desired results. There are two forms of investment by government that are likely to be
particularly important and valuable when used correctly:

      taking a lead role in major tourism infrastructure projects (in partnership with private
       investors); and
      assistance with access and utilities.
The OECD report, Tourism Trends and Policies 2010, documents the financial assistance
available to the tourism sector in other countries. This good practice is likely to be most relevant
at the financial feasibility and business plan stage.
CASE STUDY

    Darwin Waterfront
    The Darwin Waterfront project is a public-private partnership. Private sector developers are funding
    more than 86 per cent of the development ($900 million) to provide hotels, restaurants and
    apartments. This has been leveraged by NT Government investment ($149 million) to provide the
    Darwin Convention Centre, wave lagoon and other community infrastructure elements.
    To develop, manage and service the waterfront precinct, the Northern Territory Government
    established the Darwin Waterfront Corporation. The waterfront precinct has two hotels located within
    it: the Vibe and the Medina Grand. There are 138 apartments in stage one and there will be another
    1300 apartments in subsequent stages. The project began with an expression of interest, issued in
    2003. This drew eleven proposals, which were short listed to three. The three finalists were invited to
    provide detailed proposals. After some negotiations, an agreement was finalised in May 2005.
    The development is in two separate ‘streams’. The first involved delivery of the convention centre,
    the wave pool and other public infrastructure. The second stream was for the hotel and apartments,
    which was overseen by the NT Government and Toga Corporation.
    Initially, the government invested $144 million. The Convention Centre is a build, own, operate,
    transfer project. After 25 years, it will revert to the NT Government. Currently, Darwin Cove
    Convention Centre Pty Ltd is operating the convention centre.
    The NT Government investment provided the catalyst for this project. The NT Government funded
    the Darwin Convention Centre, wave lagoon and other community infrastructure such as the sea wall
    and parklands. This paved the way for private sector investment in hotels, restaurants and
    apartments. The initial government investment in access infrastructure and other facilities effectively
    lowered the risk for private investors.




                                                    41
CASE STUDY

   Cairns waterfront
   Cairns waterfront is an appealing destination for tourists due to the tropical weather and many
   other attractions within Cairns and the surrounding area. The esplanade itself hosts a range of
   tourist and leisure developments. Including:
      accommodation: high star hotels include The Marina (Shangri-La Hotel); Hilton Cairns and
       Pacific International hotel amongst others;
      restaurants: which range from cafes to fine dining; and
      other tourist attractions: such as the weekend markets, free weekly fitness activities. The
       Cairns Esplanade events calendar is also supported by the music, arts and cultural events
       held at the Tanks Art Centre.
   The development also includes an outdoor amphitheatre, swimming lagoon, picnic areas,
   walking tracks, public barbeques, children’s playgrounds, an ‘environmental interpretation
   centre’ and a Great Barrier Reef cruise departure terminal.
   The Cairns Foreshore Promenade features ‘themed areas’ such as culture, history and the
   environment of the region to entertain and educate visitors. The $9 million development of the
   Boardwalk Promenade section will include a cafe, which will be surrounded by a children’s
   playground.
   The Cityport, a waterfront facility situated next to the Cairns Esplanade, is a short distance
   from the Cairns business district. Cityport includes the Cairns Convention Centre on the south
   side and the Cairns Marlin Marina to the north. Cityport is designed to ease access to the
   Great Barrier Reef and better integrate the business district with the waterfront and esplanade.
   The project began with the Cairns Convention Centre in 1996. Cityport North was completed
   in 2003. The State Government provided $55 million funding for the Cityport development.
   The Cityport development now comprises a mix of hotel, residential apartments, tourist
   apartments, restaurants, bars and offices, including:
      Marina point, which creates an entry into Cityport from the Esplanade and includes new
       club rooms, boathouse and a sailing pontoon, a restaurant, retail and other amenities;
      The Pier Shopping Centre and Shangri La Hotel, which integrates retail shopping,
       waterfront bar/restaurants and 5-star hotel;
      Hilton Hotel Cairns — an international standard hotel comprising of 250 rooms; and
      Heritage-listed wharf sheds: both sheds are to be refurbished to provide cruise terminal
       facilities and retail/commercial components.
   North Queensland Ports Corporation is responsible for the management and operation of
   Cityport.




                                                42
7.5     Recognise that transport facilities (including regional airports and
        cruise ship terminals) are essential to tourism and need government
        investment
Identify the infrastructure that could deliver the most significant tourism benefits and assess the
merits of undertaking these projects based on the potential return on investment and the viability
of public private partnerships.

There is a range of infrastructure that supports tourism. However, this infrastructure is usually not
dedicated solely to supporting tourism. Airports for example are of critical importance to tourism,
but they also support business travel and freight transport. Sea terminals generate the bulk of their
income from freight, and even though they may also provide terminal facilities for passengers,
passenger transport is not as commercially attractive. Roads in certain areas may carry a significant
amount of tourist traffic — particularly during peak tourist season — but also serve local
businesses and residents.

Upgrading of these tourism-supporting forms of infrastructure is often costly and depends on the
involvement of several levels of government, as well as private investors. These are usually public
assets, and while these projects lend themselves to public private partnerships, it is usually not
realistic to expect private operators to fully fund the upgrading of these forms of infrastructure for
the purpose of the tourism market. This is because the tourism market, of itself, invariably will not
offer a sufficient return to provide enough incentive for this to occur.

These kinds of projects have long time horizons. They are, however, examples of significant
development of regional airports that have either occurred or are planned. Sea passenger terminals
are particularly challenging, although there are plans to develop some of these. Efforts are
underway to improve the arrangements for large passenger ships berthing in Sydney. While some
locations require major overhauls, there are likely to be opportunities to undertake inexpensive
facelifts of some facilities to improve passenger amenity.

For example, the Port of Adelaide passenger terminal was upgraded to improve passenger amenity.
Although undertaken at a very low cost, the upgrade, which involved cosmetic changes and a
general clean up of the site, dramatically improved the passenger experience. While freight
transport is the port’s main commercial business activity, this demonstrates that passenger facilities
can be provided to a good standard at low cost. This good practice is likely to be most relevant at
the obtaining funding stage.

7.6     Assist with provision of access to, and utilities for, tourism facilities
Selectively provide access and utilities to specific investments, particularly where the investment
is significant, and where the development would be unlikely to proceed in the absence of
government provision of these services.

Governments can demonstrate their commitment to tourism projects through funding or co-funding
access and utilities for specific developments. Access is likely to relate to roads and signage, while
utilities are likely to include water, sewage and electricity connections. Providing access and
utilities is most appropriate when it has public and private benefits. For example, improving road
access to a new tourism development also improves the road for local residents. The Southern
Ocean Lodge project mentioned earlier provides an example where a relatively modest investment
in access and utilities funded by the SA Government, made the investment considerably more
attractive for the developers. This good practice is likely to be most relevant at the project
construction phase.




                                                43
CASE STUDY

  South Wharf Precinct and Melbourne Convention and Exhibition Centre
  The Melbourne Convention and Exhibition Centre (MCEC) is the cornerstone of the $1.4 billion
  South Wharf Precinct along the Yarra River, most of which is private sector investment. The MCEC
  itself was built in 2004 at a cost of $357 million. It is the first and only 6 Green star environmentally
  rated convention centre in the world (as of 3 Feb 2011). The MCEC houses 52 meeting rooms of
  various sizes, a banquet hall, a plenary hall with a seating capacity of more than 5,500 that can be
  divided into three self-contained, acoustically separate theatres.
  The MCEC attracts 2 million visitors per year and is located nearby various 5-star hotels (e.g.
  Crown Towers, the Langham, Crown Metropol, Grand Hyatt). There is also an on-site hotel, the
  Hilton Melbourne South Wharf. A calendar of events has been developed.
  The MCEC is owned by the Victorian State Government and managed by the Melbourne
  Convention and Exhibition Trust (MCET).
  In order to meet the Trust’s objectives, the MCEC works closely with several key business partners
  including the Melbourne Convention and Visitors Bureau, Tourism Victoria and the Department of
  Business and Innovation. Project partners include:
     MCET, which operates the centre and works with MCVB to attract new convention business;
     Department of Business and Innovation was the lead department for the convention centre
      project;
     Major Projects Victoria was responsible for construction;
     the City of Melbourne contributed $43 million towards the development of a pedestrian
      bridge linking the South Wharf precinct to the north bank, municipal works and marketing;
     the centre and adjacent commercial precinct was developed on the government’s behalf by
      a consortium led by Plenary Group; and
     consortium member Multiplex Constructions built the new centre and the adjoining Hilton
      hotel.
  The Victorian Government contributed approximately $370 million towards construction. The
  remaining commercial development has been financed privately.




                                                  44
      8             Next steps


Assessing your current tourism investment facilitation performance
This section is designed to assist organisations to introduce or improving tourism investment
facilitation. The first step is to assess current investment facilitation performance and capability. A
detailed checklist has been developed for this purpose, and this is provided at Appendix B.

What to do next
Make a plan
Organisations (whether at national, state, territory, regional or local level) need a plan or strategy
for tourism investment facilitation. The good practice framework can be used to assess current
performance and plan priorities in each area, as outlined below. If the organisation already has a
strategy, there is an opportunity to update it to reflect a renewed focus on key areas of good
practice.
1. Current performance
     Assess current performance against each of the criteria listed below as a basis for identifying
     areas for improvement or renewed focus.
2.   Capability
     Assess whether the organisation has the required capability to implement the strategy. If there
     is a gap, determine if it will be filled by training or recruitment or a combination of the two.

     The scale and cost of resources to be dedicated to investment facilitation will depend on the
     size and nature of the organisation and is a matter for that organisation. It is however
     necessary to ensure that a sufficient level of resourcing is applied to enable tourism investment
     facilitation to gain traction and progress effectively.
3.   Information
     Ensure that information about tourism investment facilitation offered is up to date and online
     in a user-friendly format that is easy to find. If the amount of information that needs to be
     overhauled or developed is extensive, prioritise the most important information. The most
     important information is an up to date and accurate description of facilitation offered,
     including the key contact point for tourism investment facilitation inquiries and advice.
4.   Partnerships
     Map out the stakeholders who your organisation can work collaboratively with in undertaking
     investment facilitation. Developing partnerships may also be part of the strategy to improve
     organisational capability. Identify key decision makers who will need to be involved in the
     strategy, or who need to be better informed about tourism investment facilitation.
5.   Approval processes
     Review current approval processes to identify blockages and bottlenecks. See if these can be
     removed through practical process improvements. Start with improvements that can be made
     simply and easily.



                                                45
6.   Infrastructure and land provision
     Consider if the organisation has a strategic approach to infrastructure development and if so, is
     tourism investment part of that strategy. If it is not, consider how influence can be applied so
     that tourism investment is included.
     Determine whether the organisation, including the wider government to which the
     organisation may belong, has actively considered applying tourism use to infrastructure and
     land that it controls. If it has not, consider how policy can be influenced.
7.   Make the case for tourism investment facilitation
     Provide information to make the case for the organisation to dedicate more time and resources
     to investment facilitation. Articulate the potential benefits to be gained from tourism
     investment facilitation relative to the cost of resources to be dedicated to it. This Guide has
     explained that the potential benefits of tourism investment are significant, and they include
     direct and indirect economic benefits as well as social and environmental benefits.
8.   Monitoring and evaluation
     Include in the strategy a simple evaluation framework. This is explored further below, but in
     short, the organisation will need to be clear about what it wants to achieve from investment
     facilitation, how the strategy is going to achieve it, how this achievement is going to be
     measured, what data will be needed to do this, and how the data will be collected.

Monitoring and evaluation
Further to the public interest principle ‘value for money’ described in Section 2, the following
guidance is provided to assist organisations to undertake effective monitoring and evaluation of
tourism investment facilitation initiatives.

In forming a tourism investment strategy, organisations should consider how they are going to
assess the effectiveness of their facilitation efforts. This can be somewhat challenging because:
    not all benefits of tourism investment facilitation will be easily quantified;
    the resources dedicated to tourism investment facilitation by government are likely to be
     spread across departments, and many of these people will undertake some investment
     facilitation as one of many other duties;
    achieving significant outcomes from facilitation may take a long time;
    there may be uncertainty about the extent to which a tourist development can be attributed to
     investment facilitation; or
    put another way, it may be difficult to know whether an investment would have occurred
     anyway, or if it may have occurred but been of a different sort.
Although these challenges may seem daunting, there are compelling reasons why organisations
should plan for evaluation of their investment facilitation efforts.

    Collecting this information will enable organisations to assess what aspects of their investment
     facilitation are working better than others and why, enabling ongoing refinement of the overall
     investment facilitation approach.
    Evaluation provides the evidence base to show the effectiveness of investment facilitation.
     Where the benefits of investment facilitation can be demonstrated, this provides a foundation
     for proposals for additional resources to be directed to these activities.
In developing a simple evaluation framework, organisations should consider the following.




                                                 46
Type of monitoring and evaluation
Organisations are likely to find that the ongoing evaluation of investment facilitation is more useful
than trying to make evaluation an adjunct to facilitation efforts. By making evaluation an ongoing
process, organisations can learn from their performance as they go. They can also improve their
collection of data for monitoring and reporting purposes.
Form of monitoring and evaluation
Cost benefit analysis, including the quantification of both costs and benefits, would ideally be
undertaken. However, for the reasons outlined above, this may not always be possible. Cost benefit
analysis is more likely to be possible and appropriate for large scale development projects where
there is a clear and quantifiable outcome from investment facilitation.

Therefore, other approaches to assess performance should be considered beyond cost benefit
analysis, including the following:

      An input-output-outcome based reporting framework specific to tourism investment
       facilitation, with measurable indicators at each of these levels, can provide a simple and useful
       way of tracking performance.
      Combine quantitative and qualitative reporting. The qualitative reporting of benefits — which
       could be outputs or outcomes in the approach mentioned above — would describe the benefits
       that are understood to be attributable to investment facilitation, but which are of intangible
       value. For example, improved community engagement would be an intangible benefit.
      As part of the reporting of inputs and outputs, organisations would track the number of
       investment processes where investment facilitation was provided and the nature of the
       facilitation provided. This will assist organisations in gaining a full picture of their investment
       facilitation effort. While an organisation will clearly have a good handle on the value of major
       developments, the role played in other lower profile investment facilitation efforts may be
       overlooked, despite these being important.
      ‘Customer’ satisfaction. Through surveys, governments could measure the investment
       community’s level of awareness and satisfaction with investment facilitation efforts. If a
       standardised survey was done over a period of time (such as once a year for several years),
       governments would see if their investment facilitation efforts were improving awareness and
       satisfaction.
Key contacts
    Organisation/jurisdiction       Website(s)
    Austrade                        http://www.austrade.gov.au/
    Tourism Australia               http://www.tourism.australia.com/en-au/
    Tourism Research Australia      http://www.ret.gov.au/tourism/tra/Pages/default.aspx
    NSW                             http://corporate.tourism.nsw.gov.au/
                                    http://www.business.nsw.gov.au/
    Victoria                        http://www.tourism.vic.gov.au/
                                    http://www.dbi.vic.gov.au/business-units/investment-and-major-
                                    projects/investment-facilitation-and-tourism-investment
    Queensland                      http://www.tq.com.au/
                                    http://www.investqueensland.qld.gov.au/
    Western Australia               http://www.tourism.wa.gov.au/Pages/welcome_to_tourism_western
                                    _australia.aspx
    South Australia                 http://www.tourism.sa.gov.au/
    Tasmania                        http://www.tourismtasmania.com.au/
    ACT                             http://www.tourism.act.gov.au/
    Northern Territory              http://www.tourismnt.com.au/


                                                  47
    APPENDIX        Further information on support
       A            available from jurisdictions

Australian Government
The National Tourism Planning Guide: Key issues and future directions (TTF and Urbis 2010).
The guide relates mostly to the planning stage of the investment cycle. It aims to ensure that
planners incorporate tourism into their planning decisions and that planners and the tourism
industry collaborate to deliver tourism investments. Accessed on 28 January 2011 at available at
http://www.ttf.org.au/DisplayFile.aspx?FileID=1068

New South Wales
Tourism investment plans, policies and guides
NSW Tourism Strategy 2008 - Tourism NSW is leading implementation. Purpose is to provide a
new direction for tourism growth. Available at:
http://corporate.tourism.nsw.gov.au/Sites/SiteID6/objLib10/NSW Tourism Strategy.pdf.

Towards 2020 - New South Wales Tourism Masterplan, a whole-of-government plan for
developing the industry. Prepared by Tourism NSW, involving over 40 state government agencies.
The masterplan is to be replaced by the NSW Tourism Industry Plan once complete (see below).
Available at: http://corporate.tourism.nsw.gov.au/Sites/SiteID6/objLib10/Masterplan - Full
Version.pdf

Tourism Towards 2020 - The NSW Tourism Industry Plan (draft). This plan is a key initiative
under the NSW Tourism Strategy. Available at:
http://corporate.tourism.nsw.gov.au/Sites/SiteID6/objLib10/Draft-Tourism-Industry-Plan-Towards-
2020.pdf

NSW Taskforce on Tourism and National Parks, Final Report - Available at:
http://corporate.tourism.nsw.gov.au/Sites/SiteID6/objLib10/NSW-Taskforce-on-
Tourism+NationalParks-Final-Report.pdf.

NSW Taskforce on Tourism, Planning, and Investment, Final Report – Available at:
http://corporate.tourism.nsw.gov.au/NSW-Taskforce-on-Tourism-Planning-and-
Investment_p4619.aspx

NSW Industry and Investment has published a Tourism Self Help Module, which is targeted at
communities that have included tourism in their strategic plan. The module aims to assist
community economic development committees to identify, enter and grow their local tourism
sector. Available at:
http://www.business.nsw.gov.au/__data/assets/pdf_file/0007/5497/self_help_module13_tourism_2
0100209.pdf

Victoria
Tourism investment plans, policies and guides
10 Year Tourism and Events Industry Strategy - Available at:
http://www.tourism.vic.gov.au/images/stories/10yearstrat.pdf.



                                              48
Tourism Investment Guidelines 2008: Your Guide to Tourism Investment in Victoria - Available at:
http://www.tourism.vic.gov.au/images/stories/Documents/StrategiesandPlans/TourismInvestmentG
uidelines.pdf.

Tourism Victoria Investment Guidelines for Wine Tourism - Available at:
http://www.tourism.vic.gov.au/images/stories/Documents/StrategiesandPlans/wine_investment_gui
delines_04.pdf.

Victoria’s Geothermal and Natural Mineral Water Tourism Investment Opportunities (2007) -
Available at:
http://www.tourism.vic.gov.au/images/stories/Documents/StrategiesandPlans/Geothermal-natural-
spa-tourism.pdf

Concept Proposals for Tourism Development in Victoria (2005) - Available at:
http://www.tourism.vic.gov.au/images/stories/Documents/StrategiesandPlans/concept-proposals-
for-tourism-development-in-victoria.pdf

Queensland
Tourism investment plans, policies and guides
The Queensland Tourism Strategy 2006 identifies policy directions and strategic initiatives for the
sustainable growth of Queensland tourism - Available at:
http://www.tq.com.au/fms/tq_corporate/qld_tourism_strategy/Regional Consultation/Consultation
Feedback Form.pdf

Tourism Action Plan to 2012 - Available at:
http://www.tq.com.au/fms/tq_corporate/5879_TourismActionPlanTo2012.pdf.

The Tourism Project Feasibility Guide, published by Tourism Queensland, provides potential
investors with an example of the steps involved to develop successful tourism ventures. A series of
industry assistance guides are available on specific topics to assist those who are thinking of
entering the industry. Available at:
http://www.tq.com.au/fms/tq_corporate/industrydevelopment/Tourism Feasibility guide lo-res no
crops.pdf
Destination Management Plans are developed for each destination market. Each destination has
developed a Tourism Opportunity Plan, which identifies new tourism products and opportunities.
Available at: http://www.tq.com.au/about-tq/corporate-information/destination-
management/destination-management_home.cfm
Western Australia
Tourism investment plans, policies and guides
The Tourism Development Priorities are a series of documents that identify tourism product and
infrastructure priorities across each of WA’s five tourism regions (Tourism WA corporate site).
Available at:
http://www.tourism.wa.gov.au/Policies_Plans_Strategies/tourism_policy_planning/Pages/Destinati
on_Development_Strategy.aspx
The Access Economics Perth Hotel Economic Impact Study examined the shortage of
accommodation in Perth’s central business district. Available at:
http://www.tourism.wa.gov.au/SiteCollectionDocuments/Access Economics Perth Hotel Economic
Impact Study.pdf
A recent study by AEC Group Ltd has identified possible government investment incentives for the
Perth hotel market.


                                               49
A Tourism Investment Strategy 2011-2015 is being developed to identify target markets and
strategies going forward to progress the State Infrastructure Priorities. Available at:
http://www.tourism.wa.gov.au/Media_Centre/Pages/Publications_Library.aspx?sort=Release_Date
_Descending&p=1
South Australia
Tourism investment plans, policies and guides
The South Australian Tourism Plan 2009-2014 outlines the level of investment required to
strengthen SA’s tourism industry. By identifying opportunities to entice investors, landowners and
developers, approximately $200 million will be invested for infrastructure, accommodation and
public attractions in order to construct world-class tourism experiences (SATC 2009). Available at:
http://www.tourism.sa.gov.au/tourism/plan/Tourism_Plan_09-14.pdf
Tasmania
Tourism investment plans, policies and guides
The Tasmanian Experience Strategy, seeks to encourage greater visitor engagement and
expenditure. Available at:
http://www.tourismtasmania.com.au/__data/assets/pdf_file/0017/35108/experience_strategy.pdf
The Tourism Investment Guide for Tasmania is directed at informing small-scale investors about
what is involved in tourism development. Available at:
http://www.tourismtasmania.com.au/__data/assets/pdf_file/0005/44906/TasTourismInvestment_Gu
ide_Version_1.0.pdf

ACT
Tourism investment plans, policies and guides
The Five Year Strategic Plan 2009-2013 provides a basis for Australian Capital Tourism’s
activities and programs during this period. Available at:
http://www.tourism.act.gov.au/images/documents/corporate/strategic_reports/ACTourism_5yr_Stra
tegic_Plan.pdf

Estrategy Word of Mouse details an online strategy to tourism growth in the ACT. Available at:
http://www.tourism.act.gov.au/images/documents/corporate/strategic_reports/estrategy_20080827.
pdf

Floriade 5-year Strategic Plan 2009-2013 is a plan to address the challenges and opportunities of
the Floriade festival. Available at:
http://www.tourism.act.gov.au/images/documents/corporate/strategic_reports/Floriade_Strategic_Pl
an_2009-13.pdf

NT
Tourism investment plans, policies and guides
The Five Year Tourism Strategic Plan from 2008-2012 outlines strategies to enhance access and
infrastructure investment in the NT. Available at:
http://newsroom.nt.gov.au/adminmedia/mailouts/3062/attachments/AEC Report
Summary_Final.pdf




                                              50
    APPENDIX         Current performance: assessment
        B            tool

For each of the 30 good practices in the table provided assign a score based on this scale:
 0 = not done
      1 = done but not systematic
      2 = usually done
 3 = always or almost always done.
The dot points under each good practice show the activities that comprise that good practice. If
organisations wish to undertake a more detailed assessment, they can provide a score for each dot
point, and then use the average of these scores in giving an overall score for the good practice.
Then, add up the scores to provide a high level assessment of your organisation’s current tourism
investment facilitation performance. Do not be concerned if you have a low score as this may
simply reflect that your organisation has not undertaken much or any tourism investment
facilitation. Indicative assessment and possible responses corresponding to scores in a low, medium
and high range are provided below.

    Score          Assessment Comment
    0 — 30         Low               Your organisation is not extensively involved in tourism investment
                                     facilitation at this time. This places you in a good position to develop
                                     an approach that models good practice and which delivers significant
                                     benefits to your organisation and region. As a starting point, develop
                                     a tourism investment facilitation strategy, as described in Section 8.

    31 — 60        Medium            Your organisation is involved in tourism investment facilitation but
                                     there is room to improve performance and adopt a wider range of
                                     facilitation practices. There are likely to be opportunities for you to do
                                     what you currently do better, based on the good practices described.
                                     There are probably also good practices that you have not used
                                     previously which you can add to your tool kit to improve overall
                                     performance.
    61 or higher   High              Your organisation is a solid performer in tourism investment
                                     facilitation and is undertaking many of the good practices described.
                                     This assessment tool has hopefully assisted you by highlighting
                                     some good practice opportunities that you have not thought of
                                     before, or which you can use to fine tune your current approach.




                                                     51
                                       Good Practice                                             Score
                                                                                                  (0-3)
2.1   Provide high level priority and government commitment to tourism investment
         Make a case about the benefits of tourism investment
         Bring significant tourism related proposals to the attention of senior officials and
          elected representatives
2.2   Adopt a whole-of-government approach to managing tourism projects
         Develop effective networks with other areas of government that are relevant to
          tourism investment
         Appoint a permanent across-government committee reporting to Ministers to
          drive and coordinate tourism investment facilitation
2.3   Ensure that tourism investment facilitation is in accordance with sound public interest
      principles
       Ensure that tourism investment facilitation accords with the principles described
          in Section 1
       If required, refer to other reports and guides outlined in Good Practice 1.1 that
          provide additional detail on these principles
3.1   Build a wide understanding of the benefits of tourism investment
        Brief others within your organisation about the barriers to and benefits of tourism
         investment facilitation
       Refer to Good Practice 2.3 in the guide for a summary of the barriers and
         benefits
3.2   Embed tourism expertise within state/territory and local government
         Ensure that your organisation has this expertise and if it is lacking and your
          organisation’s size justifies it, recruit someone who provides it
         Develop documents that describe your organisation’s tourism investment
          facilitation strategy
         Hold workshops to disseminate the strategy and develop networks
3.3   Ensure that government agencies have the capacity to assess tourism proposals
         Assign people of sufficient seniority to work with investment proponents
         Be diligent in ensuring that information to assist proponents is sourced and
          provided in a timely manner
       Ensure that all relevant information is provided in applications and the approving
          authority has the required authority to make the approval decision
3.4   Assist the tourism sector to understand government requirements
         Publish detailed information about government policy regarding tourism investment
         Inform industry of government requirements to access facilitation
4.1   Provide comprehensive information online about facilitation offered
         Make available online comprehensive information about facilitation offered
         Ensure the tourism industry council understands the facilitation offered
4.2   Provide clear documentation on approval processes
         Make available clear and easy to follow information about approval processes
         Explain what developers will be required to provide and what they can expect in
          terms of timeframes and processes
4.3   Provide information about tourism investment opportunities
       Provide specific details of current investment opportunities online
       Publicise opportunities at tourism conferences and other public events
4.4   Provide market research to support investment proposals
         Commission and make available market research and provide this directly to
          developers to assist in preparing business cases and investment proposals
         Undertake and make available region specific research in areas where there is
          potential for tourism investment

                                               52
                                          Good Practice                                          Score
                                                                                                  (0-3)
4.5   Package tourism investment information for foreign investors
         Provide information to support investment facilitation that suits potential
          international investors
         Provide information in the language of a foreign investor that is being targeted
5.1   Develop partnerships between levels of government to share expertise
         Establish permanent consultative mechanisms involving state and local
          government to provide a basis for ongoing collaboration, based on the mutual
          benefits derived from tourism investments
         Where existing collaborative forums exist, work through these bodies and seek
          to provide impetus and leadership
5.2   Develop networks with the investment community
         Develop a detailed profile of investors and selectively target investors with
          specific proposals to fill supply gaps in certain market segments
5.3   Form partnerships with local communities
         Undertake ongoing efforts to build community awareness of the potential
          benefits of tourism investment
         Develop a calendar of events in partnership with local communities to attract
          visitors to a region throughout the year
5.4   Form partnerships with Indigenous communities
         Actively identify and explore opportunities to work with Indigenous communities
          on mutually beneficial tourism projects
         Take the time to develop trusting relationships with Indigenous communities
          based on face to face conversations
5.5   Identify international investors and develop relationships and work with Austrade,
      Tourism Australia and economic development departments to develop investment
      markets
         Develop an adequately resourced strategy specifically for engaging international
          investors
         Work with Austrade, Tourism Australia or state agencies responsible for
          investment promotion
6.1   Zone sites for tourism and streamline approvals
         Set aside sites for tourism projects
         Clear regulatory and planning approvals for tourism projects at those sites
6.2   Integrate tourism strategies with local planning
         Align the objectives of tourism investment with local planning requirements
         Work collaboratively with other levels of government and with investors to shape
          investment proposals so as to achieve approvals
         Appear on behalf of tourism investment development applications at planning
          tribunals where the proposal has the features being sought by the jurisdiction
6.3   Create mechanisms within government to facilitate decisions on tourism investment
         Form an across-government project committee to facilitate a major proposal
6.4   Ensure timely decision making on tourism proposals
         Ensure that the importance of tourism investment is understood at senior levels
          of the organisation
         Coordinate effort effectively
         Provide investors with good and timely advice about application requirements
6.5   Assign investment facilitation specialist to facilitate major projects
         Assign a person with suitable expertise and sufficient influence to each significant
          investment proposal to help developers navigate government and provide a high
          level of responsiveness



                                                 53
                                        Good Practice                                          Score
                                                                                                (0-3)
6.6   Ensure the appropriate level of government has approving authority
         In appropriate circumstances, refer tourism investment proposals from local to
          state government
         Apply a common set of criteria for referrals to state government
          Ensure that state approval processes are clear and supported by technical
           expertise
7.1   Make the provision of accommodation a condition of major developments and
      licences
       Scan development proposals with a view to making the inclusion of tourism
           infrastructure a condition of major developments
       Establish coordination processes and protocols across-government for this
           scanning to occur
7.2   Identify and make available land and buildings for tourism investment
          Review holdings of government land and buildings to identify sites that could be
           appropriate for tourism investment
       Assess the merit of converting sites to tourism used based on the costs and
           benefits of this approach compared with an unchanged site
7.3   Ensure that government leases of land/buildings for tourism are long term and
      realistic cost
      When using government land for tourism development, offer lease holdings over a
      very long term
      Over these leases at a cost that would be lower than what could be achieved for a
      non-tourism use
7.4   Recognise that some tourist facilities require government investment
      Selectively invest directly in tourism related projects with co-funding from private
      investors
7.5   Recognise that transport facilities are essential to tourism and need government
      investment
      Identify the infrastructure that could deliver the most significant tourism benefits
      Assess the merits of these projects based on return on investment and the viability of
      public private partnerships
7.6   Assist with provision of access to and utilities for tourism developments
      Selectively provide access and utilities to specific investments
      Select the provision of this assistance based on the overall investment being large
      and the importance of this support to the investment being high




                                               54
References (includes web links)

Access Economics 2010, Perth Hotel Economic Impact Study, commissioned by Tourism Western
Australia, Perth, accessed on 28 January 2011 at
http://www.tourism.wa.gov.au/SiteCollectionDocuments/Access Economics Perth Hotel Economic
Impact Study.pdf

Alberta Tourism Parks and Recreation, Tourism Business Planning Guide, Alberta, accessed on 28
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Tourism Strategy.pdf



                                             55
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ort/$File/Unlocking Victorian Tourism Draft Report.pdf




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