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PORT STEPHENS TOURISM PLAN 2010
Diagnostic Report
“PROGRESSING TOURISM IN PORT STEPHENS”
PREPARED BY JENNY RAND & ASSOCIATES / DAIN SIMPSON ASSOCIATES
FUNDED BY INDUSTRY & INVESTMENT NSW, PORT STEPHENS COUNCIL, PORT STEPHENS TOURISM LIMITED
COUNCIL
Port Stephens Tourism Plan ‐ Diagnostic Report
TABLE OF CONTENTS
1. INTRODUCTION.....................................................................................................................4
1.1 Background .................................................................................................................................. 4
1.2 Study Tasks .................................................................................................................................. 4
1.3 Structure of the Tourism Plan...................................................................................................... 5
1.4 Use of This Plan............................................................................................................................ 5
1.5 Abbreviations used in this Plan.................................................................................................... 6
2. PORT STEPHENS ...................................................................................................................7
2.1 Overview...................................................................................................................................... 7
2.2 Tourism Industry.......................................................................................................................... 8
3. ACCESS................................................................................................................................ 12
3.1 Access ........................................................................................................................................ 12
3.2 Road Access ............................................................................................................................... 12
3.3 Air Services................................................................................................................................. 15
3.4 Airport Transfers........................................................................................................................ 17
3.5 Rail & Coach Access ................................................................................................................... 17
3.6 Local Ground Transport ............................................................................................................. 17
3.7 Cycle ways.................................................................................................................................. 18
3.8 Boat Access ................................................................................................................................ 18
3.9 Directions Forward .................................................................................................................... 19
4. VISITATION ........................................................................................................................ 21
4.1 Visitation to the North Coast and Hunter Regions .................................................................... 21
4.2 Visitation to LGA’s within the North Coast and Hunter Regions ............................................... 29
4.3 Market Outlook & Forecasts...................................................................................................... 31
4.4 Port Stephens Visitor Profile...................................................................................................... 31
4.5 Comparison of Visitor Profiles ‐ North Coast & Hunter ............................................................. 33
4.6 Markets Attracted to Port Stephens.......................................................................................... 39
4.7 Directions Forward .................................................................................................................... 52
5. ATTRACTION & ACTIVITY BASE ........................................................................................... 54
5.1 Regional Attractions – An Overview .......................................................................................... 54
5.2 Attraction & Activity Base of Port Stephens .............................................................................. 56
5.3 Issues ......................................................................................................................................... 59
5.4 Opportunities to Expand the Product and Attraction Base ....................................................... 64
6. ACCOMMODATION BASE .................................................................................................... 65
6.1 Accommodation Base ................................................................................................................ 65
6.2 Possible Additions and Changes to Supply ................................................................................ 71
6.3 Performance .............................................................................................................................. 71
6.4 Issues with the Accommodation Sector .................................................................................... 85
6.5 Sustainable Environmental Practices......................................................................................... 86
6.6 Accommodation Opportunities ................................................................................................. 86
7. CONFERENCES & MEETINGS .............................................................................................. 87
7.1 Venues ....................................................................................................................................... 87
7.2 Support Infrastructure ............................................................................................................... 89
7.3 Competitive Environment.......................................................................................................... 90
7.4 The Market ................................................................................................................................ 91
7.5 Outlook and Opportunities for Port Stephens........................................................................... 92
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Port Stephens Tourism Plan ‐ Diagnostic Report
8. EVENTS ............................................................................................................................... 93
8.1 Events in Port Stephens ............................................................................................................. 93
8.2 The Event Framework................................................................................................................ 95
8.3 Issues ......................................................................................................................................... 98
8.4 Directions Forward .................................................................................................................... 99
9. VISITOR FACILITIES & INFRASTRUCTURE............................................................................ 103
9.1 Signage..................................................................................................................................... 103
9.2 Public Toilets............................................................................................................................ 106
9.3 Parks, Gardens, Reserves, Playgrounds & Picnic Facilities ...................................................... 106
9.4 Walking Trails & Cycle Ways.................................................................................................... 113
9.5 Marine Infrastructure .............................................................................................................. 113
9.6 Dining and Shopping................................................................................................................ 113
10. INFORMATION ................................................................................................................ 115
10.1 Overview.................................................................................................................................. 115
10.2 Information Services & Infrastructure in Port Stephens.......................................................... 116
10.3 Issues Raised by the Tourism Sector........................................................................................ 122
10.4 Impact of Technology – Changes in Information Delivery....................................................... 123
10.5 Directions Forward .................................................................................................................. 126
11. LOCALITIES, TOWNS & VILLAGES ..................................................................................... 128
11.1 The Potential............................................................................................................................ 128
11.2 Nelson Bay ............................................................................................................................... 130
11.3 Shoal Bay.................................................................................................................................. 131
11.4 Fingal Bay................................................................................................................................. 131
11.5 Anna Bay ‐ One Mile ................................................................................................................ 132
11.6 Bob's Farm ............................................................................................................................... 134
11.7 Tilligerry Peninsula................................................................................................................... 134
11.8 Karuah...................................................................................................................................... 137
11.9 Raymond Terrace..................................................................................................................... 139
11.10 Rural West ............................................................................................................................... 141
11.11 Seaham .................................................................................................................................... 141
11.12 Hinton ...................................................................................................................................... 142
12. STRUCTURE & MANAGEMENT OF TOURISM.................................................................... 144
12.1 Overview.................................................................................................................................. 144
12.2 Key Players............................................................................................................................... 146
12.3 Other Players ........................................................................................................................... 153
12.4 Membership of the RTO .......................................................................................................... 156
12.5 Issues ....................................................................................................................................... 158
12.6 Observations............................................................................................................................ 160
13. MANAGEMENT STRUCTURES ‐ OVERVIEW ...................................................................... 162
13.1 Management Structures.......................................................................................................... 162
13.2 Case Study Examples ............................................................................................................... 165
13.3 Funding .................................................................................................................................... 172
13.4 Observations............................................................................................................................ 173
14. MARKETING PORT STEPHENS .......................................................................................... 174
14.1 Overview.................................................................................................................................. 174
14.2 Source Markets........................................................................................................................ 174
14.3 Annual Marketing Plan ............................................................................................................ 174
14.4 Activities & Funding ................................................................................................................. 175
14.5 Issues ....................................................................................................................................... 176
14.6 Directions Forward .................................................................................................................. 178
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Port Stephens Tourism Plan ‐ Diagnostic Report
15. MOVING FORWARD ........................................................................................................ 179
15.1 Current Position....................................................................................................................... 179
15.2 Key Activities............................................................................................................................ 179
15.3 Medium to Long Term Objective ............................................................................................. 180
15.4 Division of Responsibilities ...................................................................................................... 180
15.5 Changes Required .................................................................................................................... 180
15.6 Product & Destination Development....................................................................................... 181
15.7 Market Development............................................................................................................... 181
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Port Stephens Tourism Plan ‐ Diagnostic Report
1. INTRODUCTION
1.1 Background
Tourism is a significant industry for Port Stephens, with the LGA attracting in the order of 617,000
domestic and 27,000 international overnight visitors per year as well as 612,000 domestic day‐trippers.
These visitors spend an estimated $377.3 million per annum within the area with 1,574 people directly
employed in the tourism sector. (Tourism Research Australia, Port Stephens Shire Tourism Profile 2007).
Tourism in Port Stephens is considered to be a mature industry, with established markets, a strong
accommodation and attraction base and well developed support infrastructure and services. The Lower
Hunter Regional Plan has identified the Nelson Bay area as a Tourism Development node for the Hunter
Region. Likewise the Port Stephens Economic Development Strategy identifies tourism as a significant
economic activity for the LGA and a potential growth sector. The Economic Development Strategy
recommends that a long term strategic approach to tourism development is adopted.
Port Stephens Council has been an active player in the tourism industry for more than 30 years, as an
owner and manager of tourism assets, service provider, marketer and coordinator. Council owns and
operates the Nelson Bay Visitor Information Centre and employs professional tourism staff to coordinate
the development, marketing and promotion of the tourism industry.
Since 1997, Council has had in place a joint venture agreement with Port Stephens Tourism Limited (PSTL)
to market and promote Port Stephens regionally, nationally and internationally. PSTL is the peak body for
tourism within the LGA. PSTL is a membership base organisation with over 200 members drawn from the
accommodation, attraction, tour, retail, entertainment and business sectors.
The joint venture agreement has been in place for 12 years, and has been very successful in establishing
Port Stephens as a destination in its own right. Over the past 12 years there have been substantial
structural changes in both the tourism industry and the marketplace. Divisions have emerged within the
local tourism industry, with these heightened by the contraction of the industry as a direct result of the
global financial crisis.
Both Council and PSTL recognise that it is time to reassess the status of the industry and set the directions
and framework for moving forward.
Funds have been provided by Port Stephens Council, PSTL and the Department of Industry and Investment
to undertake a detailed assessment of the tourism industry within Port Stephens and formulate a strategic
plan to take the industry forward.
Jenny Rand & Associates in conjunction with Dain Simpson Associates have been commissioned to prepare
the Tourism Plan.
1.2 Study Tasks
Key tasks undertaken in the preparation of the Tourism Strategy included:
Visits to Port Stephens LGA and surrounding areas to assess the tourism product and infrastructure
(accommodation, attractions, activities, experiences, signage, information services) available and how
the individual localities and products within the LGA present.
Market assessment – identifying and building a profile of the visitors who are coming to the area –
demographic characteristics, trip characteristics, needs and expectations.
Discussions and workshops with a range of organisations and individuals including:
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Port Stephens Tourism Plan ‐ Diagnostic Report
- Port Stephens Councillors and Council officers.
- Port Stephens Tourism Limited
- Industry groups and associations
- Community groups and associations
- Local tourism and business operators – attractions, accommodation, retail businesses.
- Licensed Clubs
- Worimi Land Council
- Newcastle Airport
- Government Departments ‐ Tourism New South Wales, Department of Industry and Investment,
Department of Environment, Climate Change and Water (National Parks), Marine Parks Authority
and the Department of Lands.
- Forum of Regional Tourism Organisations (FORTO), Hunter and Mid North Coast RTOs
1.3 Structure of the Tourism Plan
The Port Stephens Tourism Plan is presented in two volumes, a Diagnostic Report and an Action Plan.
The Diagnostic Report (this document) explores the current status of tourism in the LGA in relation to:
The product base of the area ‐ accommodation, attractions, events etc.
The services and infrastructure available to support tourism.
The markets attracted to the area.
The presentation of localities, towns and villages.
The issues facing the tourism industry.
The development and marketing opportunities available.
Management, marketing and promotion of tourism within the LGA.
The Action Plan provides the strategies and actions needed to facilitate the development and marketing of
tourism.
1.4 Use of This Plan
The Port Stephens Tourism Plan contains relatively detailed information on the issues facing the LGA and
the product and market development opportunities available. It is suggested that the Plan be used as
follows:
As input into determining Government and Council directions and planning policies.
The Action Plan becomes the working document for Port Stephens Council and Port Stephens Tourism
Limited.
Resource material ‐ sections of the Diagnostic Report and the Action Plan be 'cut and pasted' to form:
‐ Briefing material for individual projects / project teams
‐ Input into grant applications and funding submissions
‐ Submissions to Government, Local Members of Parliament and other organisations when seeking
assistance to implement the projects identified in the Plan.
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Port Stephens Tourism Plan ‐ Diagnostic Report
1.5 Abbreviations used in this Plan
ABS Australian Bureau of Statistics
CCIA Caravan and Camping Industry Association
DECCW Department of Environment, Climate Change and Water (National Parks)
DII NSW Department of Industry and Investment
FIT Free Independent Traveller
FORTO Forum of Regional Tourism Organisations
MPA Marine Parks Authority
PSC Port Stephens Council
PSTL Port Stephens Tourism Limited
RTA Roads and Traffic Authority
RTO Regional Tourism Organisation
STDW State Tourism Data Warehouse (TNSW Data Base)
TNSW Tourism New South Wales
TXA – OBX Tourism Exchange Australia – Open Booking Exchange
VFR Visiting Friends and Relatives
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Port Stephens Tourism Plan ‐ Diagnostic Report
2. PORT STEPHENS
2.1 Overview
Location & Description
Port Stephens LGA is located approximately 200 kilometres north of Sydney. Geographically it lies within
the Hunter Valley and marks the beginning of the NSW North Coast.
The LGA covers an area of approximately 850 square kilometres. The LGA is bounded by the Hunter River
to the south, the Karuah River and Port Stephens to the north and the Paterson River to the west. The
Port Stephens water‐body lies wholly within the LGA. Port Stephens shares boundaries with Newcastle
City to the south, Maitland City to the west, Dungog and Gloucester Shires to the north‐west and Great
Lakes Shire to the north.
Port Stephens can be divided into five broad areas:
Tomaree Peninsula ‐ forms the southern headland and part of the southern foreshore of Port
Stephens. Within the peninsula there are three settlements: Salamander Bay‐Soldiers Point, Corlette‐
Nelson Bay‐Shoal Bay‐Fingal Bay and Anna Bay‐One Mile Beach‐Boat Harbour, with these areas
separated by tracts of wetlands, bushland and forests, much of which is incorporated in National
Parks and Conservation Areas. The Tomaree Peninsula is the main tourist destination in the LGA with
tourism focussed on Nelson Bay.
Tilligerry Peninsula ‐ located to the west of the Tomaree Peninsula. Most of the central and southern
parts of the Peninsula are incorporated in the Tilligerry State Conservation Area. Settlement is
concentrated along the northern shores of the Peninsula, at Lemon Tree Passage, Tanilba Bay and
Mallabula. Lemon Tree Passage is the main destination for visitors.
Rural East ‐ The central area of the LGA, extending from the northern foreshore of the Hunter River
through to Medowie. Newcastle Airport and the RAAF base are located at Williamtown at the
southern end of the LGA, with Williamtown and Tomago developing as a significant employment zone
within the Lower Hunter Region. Medowie to the north is primarily a rural residential area. There is a
small cluster of commercial tourist attractions at Salt Ash, at the gateway to both the Tomaree and
Tilligerry Peninsulas. This area borders the Stockton sand dunes with Lavis Lane being an important
access point for recreational vehicles.
Central Corridor ‐ focused on the Pacific Highway. Raymond Terrace‐Heatherbrae forms the southern
gateway to the LGA, with Karuah, located at the mouth of the Karuah River, being the northern
gateway. Raymond Terrace is a historic river town, established at the confluence of the Hunter and
William Rivers. Today it is the administrative and commercial centre of Port Stephens and is
designated at a future regional centre within the Lower Hunter.
Rural West ‐ incorporates the rich farming land to the west of Raymond Terrace and the Williams
River, with grazing being the main activity. Seaham on the Williams River and Hinton on the Paterson
River are the larger of the two villages in this area.
Population
Port Stephens has a population of approximately 65,000. Population is concentrated on the Tomaree
Peninsula and in the Raymond Terrace area. 37.0% of the LGA's population (22,389 people at the 2006
Census) resides on the Tomaree Peninsula, with 20.6% residing in the Corlette‐Nelson Bay‐Shoal Bay‐Fingal
Bay area. 8.9% of the LGA's population live in the Soldiers Point‐Salamander Bay area, with 7.5% in the
Anna Bay‐One Mile Beach‐Boat Harbour area. The Raymond Terrace area has a population of around
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Port Stephens Tourism Plan ‐ Diagnostic Report
13,400 (22.2% of the LGA population). 19.8% of the population resides in the rural eastern area, mostly in
the Medowie area (13.9%) with small settlements in the south at Fullerton Cove and Fern Bay. 7.7% of
the population resides in the rural west, with 1.4% in the Karuah area.
Port Stephens is a growth area, with the population forecast to increase to 117,746 by 2031. Growth will
be concentrated in Raymond Terrace (31,150 people), and on the Tomaree Peninsula (40,328 people).
(Lower Hunter Regional Strategy).
Land Use & Economic Base
Port Stephens is primarily a rural area, with more than 95% of the LGA being farming land, National Park,
State Conservation Area and State Forest. Port Stephens has a diverse economic base with the main
industries being tourism, defence‐government, manufacturing and agriculture. Fishing and oyster
cultivation are also significant activities. The largest single employers are the RAAF Base and the Tomago
Aluminium Smelter.
The Williamtown Aerospace Centre, being developed around the RAAF Base and Newcastle Airport, will
become a key economic driver for the Hunter Region. Other significant industrial ‐ business parks are
located at Tomago and Heatherbrae, and at Taylors Beach on the Tomago Peninsula.
Raymond Terrace is the administrative and commercial centre of the LGA, with a concentration of
government and commercial service providers. Raymond Terrace is a sub‐regional retail centre, with the
centre set to grow into a regional centre. The other major shopping precinct is at Salamander Bay on the
Tomaree Peninsula, with a modern shopping mall anchored by a discount department store and major
supermarket. Nelson Bay is a district centre, with a concentration of service providers, small retail outlets
and cafes and restaurants.
2.2 Tourism Industry
Background
The tourism industry in Port Stephens dates back to the early 1900's with the development of small fishing
settlements on the Tomaree Peninsula. The 'occupation' of the area by the Americans during World War
11 put the region on the 'map' with the area becoming popular in the post war period. Holiday cottages
were established, and the area was popular with campers.
Improvements to the Pacific Highway in the 1970s' resulted in the area 'booming' with the development of
caravan parks, motels and holiday apartments, concentrated along the waterfront areas of Nelson Bay and
Shoal Bay. The area also became popular with retirees, attracted primarily by the scenic beauty of the
area, relaxed lifestyle and the fishing.
Tourism activity in the area increased significantly in the 1980's with the opening of a number of resorts ‐
Peppers Anchorage, Horizons Golf Resort, Roche Racquet Resort and the Marina Resort, and the marinas
at Nelson Bay and Corlette (Anchorage). The last 15 years has seen substantial growth in holiday and
serviced apartments, the opening of the Shoal Bay Resort, the emergence of B&Bs and the development of
a strong land and marine based tour and cruise industry.
The Tomaree National Park was declared in 1984 and substantially expanded in 1996. The Port Stephens ‐
Great Lakes Marine Park was gazetted in 2005 and is the largest marine park in NSW. The Worimi
Conservation Lands, which incorporates Stockton Bight and sand dunes, is the most recent addition to the
Parks system.
Port Stephens Council has always played an active role in the tourism industry. Since 1965 Council has
supported the tourism industry financially, initially through the TOPS association and more recently
through PSTL. In 1997 tourism was restructured, with TOPs being replaced by Port Stephens Tourism
Limited (PSTL) as the peak body for the Port Stephens tourism sector. Council and PSTL entered into a
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Port Stephens Tourism Plan ‐ Diagnostic Report
joint venture to market and promote Port Stephens. This marketing alliance has been very effective in
establishing Port Stephens as tourist destination in its own right.
The Tourism Sector Today
Tourism is one of the main industries in Port Stephens LGA and the main economic activity on the
Tomaree Peninsula. The area attracts in the order of 617,000 domestic and 27,000 international overnight
visitors and 612,000 domestic day‐trippers per year. These visitors spend an estimated $377.3 million per
annum within Port Stephens with 1,574 people directly employed in the tourism sector. (Tourism Australia
Port Stephens Tourism Profile 2007). The commercial tourism product and infrastructure in the LGA
includes:
Extensive range of visitor accommodation:
‐ 37 resorts, hotels, motels, apartment hotels and serviced apartment, providing in the order of
1,600 ‐ 1,800 rooms and apartments.
‐ 17 caravan with 1,560 tourist sites and 430 cabins.
‐ Possibly 2000+ holiday rental properties and holiday homes and apartments.
‐ Back packer, farmstay and B&B properties.
Established marine tourism sector including dolphin and whale watching cruises, charter boats, game
and sports fishing charters, boat and equipment hire.
A strong adventure and activity based sector ‐ including 4WD, para‐sailing, jet boat, jet skis, camel
safaris, horse riding, sea kayaking, surfing and diving operators.
Tourist and heritage attractions.
Main Attractions
The main attractions of Port Stephens LGA are the Port itself and the spectacular bay and coastal scenery –
the ‘Blue Water Paradise’ ‐ the white sandy beaches and the aqua‐blue, crystal clear waters. The area is
known for:
Pristine, uncrowded beaches
The Stockton sand dunes
Dolphins and koalas
Sports and game fishing
Both the Tomaree Headland and Stockton sand dunes are iconic features. The area is also building its
profile as a destination for whale watching.
Challenges facing the Tourism Sector
Although well established, the industry faces a number of challenges. These include:
A changing market ‐ Significant structural changes are occurring in the domestic market place. These
changes are the result of a combination of factors including the increasing sophistication and global
orientation of the consumer, changing work and leisure practices, changing ethnicity particularly in
the capital city markets, the impact of discount airfares, rising fuel prices and more recently, the
global economic downturn. In Port Stephens the impact of structural changes is evident in the
changes that are occurring in the traditional family holiday market.
Strong contraction of the international market in response to the global financial crisis. At present, the
international market is highly volatile, with a marked decrease in long‐haul travel world‐wide.
Tourism Australia and Tourism New South Wales are working through strategies to address this
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Port Stephens Tourism Plan ‐ Diagnostic Report
situation and to re‐build the international sector in the medium to longer term. Port Stephens will
need to take these strategies into consideration in building its international markets.
Seasonality, with strong summer school holiday peaks and low off‐season visitation in the coastal
locations. Development of events and off‐season packaging are being used to build visitation during
the shoulder and off‐peak seasons and have had some impact on occupancy rates. There are
opportunities to further build visitation by niche marketing to the smaller special interest and activity
based markets, with the activity rather than the location being the key driver.
New technologies are significantly changing how consumers receive information, plan and purchase
travel. Mobile digital applications are increasing and within 5 years most travellers are likely to have
access to the internet while travelling. These changes need to be factored into how Port Stephens
delivers its visitor information services in the future.
Aging infrastructure ‐ particularly in the accommodation sector, with some of the product becoming
less competitive and no longer meeting visitor needs and expectations. The area's ability to attract
high yield markets is constrained by limited product at the 'top end' of the market and limited
infrastructure to accommodate the business event market (conferences, meetings etc).
Coupled with this is the lack of destination management. The emphasis for the last 10‐15 years has
been on the marketing and promotion of Port Stephens, with limited time and resources allocated to
ensure that the product, infrastructure and services needed to support the industry are in place.
Growth pressures ‐ the need to release land for residential and industrial development to meet the
forecast growth in demand for housing, land and employment in the Lower Hunter Region. This has
implications for use of areas (eg capacity of beaches and parks, car parking etc), environmental
impacts and impacts on the visual amenity of the area. The environment and the visual amenity of
the area underpin the tourism sector with the need to protect these assets being essential to the long
term sustainability of the tourism industry.
Marked differences in the tourism industry across the LGA, with individual localities having different
markets as well as differences in the scale of operations and level of professionalism. The Tomaree
and Tilligerry peninsulas are established destination areas, which primarily attract holiday and leisure
visitors. In contrast, the Raymond Terrace area is oriented primarily to highway traffic but also
services business travellers and sports event related travellers. The dynamics of tourism in the small
towns and villages, such as Karuah and Seaham are different again. Each area needs a different
approach, which is difficult to accommodate with the current structure and available resources.
The role of key stakeholders ‐ in particular the 'blurred' lines between Port Stephens Tourism and
Council in relation to the operation of the Visitor Information Centre, provision of information and
visitor services and the marketing and promotion of the LGA. The industry is becoming increasingly
disenchanted with both parties, with some of the current practices also impacting negatively on
destination development and management and service delivery.
Opposition from some segments of the community to tourism and/or development.
Emerging Opportunities
Balancing these challenges are a number of emerging opportunities, including:
Expansion of Newcastle airport ‐ opening up the opportunity for growth in interstate and potentially,
international markets (both group and FIT) as well as the business events and sporting markets.
Industrial and business park development in the southern areas of Port Stephens (Williamtown,
Tomago, Heatherbrae etc) and in adjoining areas (eg Kooragang Island, the Hunter River industrial
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Port Stephens Tourism Plan ‐ Diagnostic Report
estates, and the Thornton area), with a resultant increase in business and work related travel and the
potential to grow the Business Events sector.
Increased residential development, both within Port Stephens LGA and in surrounding areas,
particularly in the Lower Hunter and Central Coast. This should translate into increased demand for
the recreational, tourism and lifestyle products available in Port Stephens LGA. Specific
developments, such as large mobile home parks in the Fullerton area, will stimulate the VFR market.
Focus by Newcastle City on building the business events, entertainment and sporting markets, with
the accommodation properties in the Raymond Terrace area already benefiting from growth in these
markets. There is opportunity to work with Newcastle as part of a marketing alliance to build
visitation to Port Stephens.
Growth in non‐traditional markets ‐ including grandparent travel, touring caravans and campervan
markets (both domestic and international) and activity and special interest based markets (eg surfing
tours, 4WD clubs, water‐sports etc).
The potential of the internet and other digital applications for cost effective delivery of information,
marketing and promotion, and reservations and sales.
These issues and opportunities are addressed in the following sections of this report.
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Port Stephens Tourism Plan ‐ Diagnostic Report
3. ACCESS
3.1 Access
Being located on the Pacific Highway just north of the junction of the F3 Freeway and New England
Highway, Port Stephens is within easy driving distance of Sydney and readily accessible from the Hunter
Valley. Raymond Terrace is located approximately 200 kilometres north of Sydney and 25 kilometres north
west of Newcastle, with the main tourist destination, Nelson Bay being approximately 250 kilometres
north of Sydney and 40 kilometres north east of Newcastle.
Daily coach services operate between Sydney and Nelson Bay, with the long haul interstate coaches
prepared to drop off and pick up passengers at Heatherbrae. Port Stephens can be accessed by rail to
Newcastle, with coach services to Nelson Bay, Raymond Terrace and Lemon Tree Passage. Port Stephens,
through Newcastle Airport, is accessible by direct air services from Sydney, Canberra, Melbourne, Brisbane
and the Gold Coast. Port Stephens can also be accessed by boat, with the Port popular with the
recreational cruising market.
Around 5.34 million people reside within a 2.5 to 3 hour drive of Nelson Bay. In addition, Newcastle
Airport provides access to an interstate market of around 6.45 million people. Port Stephens is also easily
accessed from Central NSW (Dubbo area) and the southern and south‐eastern parts of the New England
North West Region
Table 3.1 Population readily accessible to Port Stephens
Region Population
Lower Hunter# 442,000
Upper Hunter 55,000
Central Coast 300,000
Great Lakes 33,000
Taree 45,200
Sydney 4,500,000
Total ‐ 2.5 hours drive 5,342,200
Dubbo 40,300
Mudgee 8,200
Gunnedah ‐ Quirindi ‐ Narrabri 34,000
Tamworth 57,000
Armidale ‐ Uralla ‐ Walcha 25,200
Melbourne 3,700,000
Brisbane 1,920,000
Gold Coast 500,000
Canberra 335,000
Total ‐ Interstate 6,455,000
Source: ABS 2006 Census
# Excludes Port Stephens
3.2 Road Access
Port Stephens is located on the Pacific Highway. The Pacific Highway (F3 Motorway) is a National Highway
(NH 1), that links Sydney via the North Coast of NSW to Brisbane. According to the RTA, the Highway
carries in the order of 40,000 ‐ 45,000 vehicles per day in the vicinity of Hexham Bridge. Heatherbrae is a
very popular transit stop for Highway travellers, particularly for south‐bound travellers.
The New England Highway intersects with the F3 Motorway at Beresfield approximately 12 kilometres
south west of Raymond Terrace. The New England Highway is also a major interstate route, linking Sydney
and Brisbane via the Hunter Valley and the New England Region. The New England Highway provides Port
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Port Stephens Tourism Plan ‐ Diagnostic Report
Stephens with access to the Gunnedah, Narrabri and Tamworth areas. Residents of these areas have
traditionally holidayed in the Port Macquarie area, however Port Stephens is marginally closer to
Gunnedah and Narrabri, with the drive being far easier and safer than the Oxley Highway from Tamworth
to Port Macquarie. Port Stephens also has the advantage of being close to Newcastle and within a few
hours of Sydney, offering a coastal holiday with the opportunity for city experiences. The growth of coal
mining and gas exploration in the Gunnedah Basin is resulting in an influx of miners and mine‐related
workers, some of whom have come from the southern NSW and Queensland coal fields. There is potential
to target these workers, positioning Port Stephens as a weekend‐short breaks destination.
The Hunter is well connected to Central NSW, via the Golden Highway, with residents of Central NSW
being an established market for the coastal destinations of the Lower Hunter and Central Coast. Dubbo is
an easy 4.5 hours drive from Port Stephens. Dubbo has a population of around 40,000 and is the main
regional centre for around 120,000 people (Dubbo City Council estimate of the retail catchment
population).
To the north, Port Stephens is the start of Thunderbolts Way. Thunderbolts Way connects the Pacific
Highway at Twelve Mile (between Raymond Terrace and Karuah), through Gloucester, Walcha and Uralla
to the Gwydir Highway at Inverell, with links north to southern Queensland. Thunderbolts Way is a
designated State Touring Route (TR 2). While the route was designed primarily to draw north‐bound
touring traffic off the Pacific Highway, it has become the 'short‐cut' between Sydney / Newcastle and
Armidale. Armidale is less than 4 hours drive from Nelson Bay and is potentially a market for Port
Stephens.
Pacific Coast Touring Route
The Pacific Coast Touring Route extends from Sydney to Far North Queensland. The route is being
promoted by Tourism Australia to international visitors, with visitors encouraged to hire / buy vehicles
(including campervans) and travel the route. Port Stephens is featured as one of the destinations along
the route, with Port Stephens included in six of the nine suggested touring itineraries. This route
encourages travellers to work their way north through the Central Coast, coastal areas of Lake Macquarie,
to Newcastle and onto Port Stephens. There is no signage in either Newcastle nor along the Pacific
Highway that would enable these travellers to find Port Stephens. This is discussed further in Section 9.1.
Once international flights / access to international visitors are in place at Newcastle Airport, the Airport
needs to be incorporated into the Pacific Coast Touring Route as an entry / exit node. Consideration
should be given to providing for campervan / mobile home rentals at the Airport.
Access to Raymond Terrace, Karuah & the Rural West
Raymond Terrace is located just off the Pacific Highway, with access to the Highway on the northern and
southern edges of town. Karuah, 30 kilometres north of Raymond Terrace, has also been by‐passed.
Under the proposed Highway upgrade, both Raymond Terrace and Heatherbrae will ultimately be by‐
passed, with Port Stephens facing the challenge of how to draw travellers off the Highway.
Raymond Terrace is located approximately 25 kilometres north‐west of Newcastle, with the town being
very accessible to the Hunter River and Kooragang Island industrial areas and business parks, and to the
large institutions and facilities (eg Newcastle University, Mater Hospital, Sandgate Cemetery) in the
western suburbs of Newcastle City. Raymond Terrace also has good road links to Maitland (15‐20 minutes
drive) and to the industrial areas at Thornton and Beresfield (5‐10 minutes drive) and will be within 15
minutes drive of the proposed Hunter Economic Zone.
Raymond Terrace is a node for the network of local and regional roads that feed into the LGA from the
west and north‐west. These roads link through to Maitland, Dungog and Gloucester LGAs, and to the
Barrington Ranges (Barrington Tops). Hinton is located on the Osterley Road while Seaham is accessed
from Seaham and Newline Roads, with links onto Clarence Town and Dungog to the north and on to
Stroud and Gloucester to the north east. Most of the roads in the west of the Shire are narrow rural roads
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Port Stephens Tourism Plan ‐ Diagnostic Report
that are scenically attractive and suitable for tourist drives.
Access to the Coastal Destinations
There are three access roads linking the coastal destinations to the Pacific Highway ‐ Tomago Road and
Richardson Road for north‐bound traffic and Medowie Road for south‐bound traffic. Richardson Road
attracts the most traffic, with the road being in better condition than the other two. Richardson Road is
the RTA's preferred access route to the area. Tomago Road is narrow and in poor condition. All three
roads link with Nelson Bay Road, which provides access to the Tomaree Peninsula. While a section of
Nelson Bay Road has been upgraded to a dual carriageway divided road, most of the road is single lane in
both directions, with limited opportunities to overtake. The speed limit varies between 80 and 100
kilometres. The road becomes congested at peak times. There are a number of areas along the road
corridor (eg Salt Ash) that not particularly attractive and do not reflect or reinforce the quality of the
coastal environment.
Nelson Bay Road forms part of the link road between the coastal destinations and Newcastle, and further
south to the suburbs on the eastern side of Lake Macquarie. The section of road between Newcastle
Airport and the intersection with Industrial Drive at Mayfield North, is being upgraded to improve access
from Newcastle to the Airport. This will strengthen the relationship (physical and perceived) between
Newcastle and the Airport.
The Tilligerry Peninsula is accessed via Lemon Tree Passage Road, off the Nelson Bay Road. This road is in
reasonable condition and is an attractive drive. Lemon Tree Passage is located approximately 33
kilometres from Raymond Terrace and 42 kilometres from Nelson Bay.
Approximate travelling distances and times to Nelson Bay from potential source markets are summarised
in Table 3.2.
Table 3.2 Accessibility to Source Markets ‐ Travelling to Nelson Bay
Centre Distance (km) Travelling Time (hrs)*
Day Trip & Short Breaks
Sydney CBD 250 km 2.5 ‐3 hours
Central Coast 150 km 1.5 hours
Lake Macquarie 85 km 1 hour
Newcastle 60 km 30‐40 mins
Maitland 70 km 50 mins
Cessnock 90 km 1 hour
Singleton 115 km 1.1 hours
Muswellbrook 160 km 1.5‐2 hours
Regional NSW ‐ within 4 ‐ 5 hours drive
Dubbo 420 km 4.5 hours
Mudgee 350 km 3.5‐4 hours
Gunnedah 350 km 3.5‐4 hours
Tamworth 320 km 3.5 hours
Armidale 340 km 3.5 hours
* Approximate distance and travelling time
Local Road Network
The local road network and parking areas in the Nelson Bay ‐ Shoal Bay area do not have the capacity to
cater for the volume of traffic generated during peak periods and for the events held in Nelson Bay.
Council is working to resolve these issues.
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Port Stephens Tourism Plan ‐ Diagnostic Report
Directional Signage
There are issues with signage to the coastal destinations from both the Pacific Highway and Newcastle,
with these issues addressed in Section 9.1.
3.3 Air Services
Newcastle Airport is located at Williamtown in Port Stephens LGA, adjacent to the RAAF base. The Airport
is approximately 40km south west of Nelson Bay and 18km east of Raymond Terrace. The Airport is a joint
venture between Port Stephens and Newcastle City. It is one of the busiest regional airports in Australia,
with the airport currently serviced by 6 carriers:
Jetstar
Virgin Blue
QantasLink
Aeropelican
Brindabella Airlines
Norfolk Air
There are 126 return flights per week into the airport (252 movements), with 55 return flights per week to
Brisbane (Jetstar, Virgin and Qantaslink), 33 return flights to Sydney (Aeropelican), 21 to Melbourne
(Jetstar and Virgin), 16 to Canberra (Brindabella) and one to Norfolk Island (Norfolk Air).
In 2009 the Airport had a through‐put of approximately 1.2 million passengers, with the number of
passengers having increased by 440% over the past four years. The number of incoming and outgoing
passengers is approximately equal. The market is relatively evenly split between business, VFR and
tourism / leisure travel. Most of the leisure travel coming into the Airport is for the Hunter with events (eg
concerts, NSW Golf Open, Surfest) being a major driver. Conferences and meetings (Hunter focused) are a
significant component of the business travel market.
Newcastle Airport is undergoing a $17m upgrade, which includes extending the apron to take larger
planes, doubling the size of the terminal with the terminal to have customs facilities, extending the car
parking (900 additional spaces) and improving the road network. The upgrade is expected to be
completed by mid‐2011. The Airport will have a capacity of 4 million passengers per annum.
Newcastle Airport is being positioned as a secondary airport for low cost domestic and international
carriers. Newcastle Airport is seeking to establish links to Asia and is looking to establish a route to Kuala
Lumpur to connect with Asia Air, to provide access to the Asian low cost carrier network, as well as
connections to London. International flights to New Zealand, Fiji and Asia are planned to commence in
2012.
The domestic network is also being expanded. In mid‐2010, capacity is expected to increase on the existing
Melbourne and Gold Coast routes, and on the Brisbane route in 2013. Flights to Perth, Adelaide, Hobart
and Darwin are programmed to commence in 2010/11, with flight to Cairns, Mackay and the Sunshine
Coast possibly commencing in 2011 (subject to a favourable feasibility assessment).
By 2014 the Airport is forecasting that there could potentially be an extra 23 flights per week on the
Melbourne, Brisbane and Gold Coast routes (296,608 additional passengers), plus 47 flights per week on
the 7 new domestic routes (606,112 passengers) and 15 international flights per week to New Zealand (8
return flights per week), Fiji (3 / week), Bali (2 / week) and Kuala Lumpur (2 / week). These forecasts are
dependent on a range of factors, including the airlines moving to the larger planes and obtaining approvals
to operate. The GFC may have put the timing back.
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Port Stephens Tourism Plan ‐ Diagnostic Report
Table 3.3 Forecast Flights and Passengers ‐ Newcastle Airport, 2014
Origin / Destination Return Flights / Week Estimated No Passengers (70%
load capacity)
Growth on existing routes:
Melbourne 11 141,856
Gold Coast 7 90,272
Brisbane 5 64,480
Total 23 296,608
Potential new domestic growth
Perth 14 180,544
Adelaide 7 90,272
Hobart 7 90,272
Darwin 3 38,688
Cairns 5 64,480
Mackay 6 77,376
Maroochydore 5 64,480
Total 47 606,112
Possible international flights
Auckland 6 33,324
Christchurch 2 11,779
Nadi, Fiji 3 13,617
Denpasar, Bali 2 8,106
Kuala Lumpur, Malaysia 2 5,441
Total 15 72,267
Total New Flights 85 974,987
TOTAL PASSENGERS 2,124,987
Source: Newcastle Airport
Implications for Port Stephens
The main implications of the expansion of air services for Port Stephens are:
Port Stephens and operators will need to align their marketing strategies, in both the National and
International markets, to the market development being undertaken by the Airlines to build
passengers on the new routes. There will be a need for increased public relations style marketing
through the Airline magazines and loyalty programs as well as in the new markets.
In addition to access to increased holiday travellers, national coverage will enable Port Stephens to
target national conferences and meetings and national sporting carnivals (eg All Schools National
events).
If the costs of flying out of Newcastle (flights, parking, less traffic congestion etc) are lower than flying
out of Sydney, there is likely to be an increase in the number of people from the northern suburbs of
Sydney, the Central Coast and other areas who will chose to fly out Newcastle. The motels in Karuah
and Raymond Terrace are already seeing an increase in people from Great Lakes, Taree and the Upper
Hunter staying overnight in Port Stephens before flying out. This year a number of State school
sporting teams also flew out of Newcastle rather than Sydney. This is a market opportunity for
accommodation in Raymond Terrace and Karuah. As services increase there will be a need for the
hotel that is proposed for the Airport Business Park.
Once Newcastle Airport commences international operations, its main market is likely to be outbound
travel from residents of the Hunter, Central Coast, the northern suburbs of Sydney and lower North
Coast areas, with primary destinations being New Zealand, Fiji, and Bali. New Zealand has the
potential to expand as an inbound market for Port Stephens. PSTL / Marketing Coordinator has
already spent some years working this market. New opportunities could potentially be created if an
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Port Stephens Tourism Plan ‐ Diagnostic Report
Asian low‐cost carrier, such as Air Asia, adopts Newcastle as an alternative to Sydney for bringing in
Asian inbound travellers (eg Singapore, Malaysia, Vietnam).
Newcastle Airport will become an increasingly important gateway into the LGA. As such, Port
Stephens will need to ensure that information on the LGA is available at the Airport. Consideration
should also be given to including funds for Airport advertising in the marketing and promotional
budget. Most of the prime advertising spaces have already been leased by Hunter Tourism.
Council will need to ensure that there is effective motivational and directional signage on the routes
to and from the Airport.
3.4 Airport Transfers
Newcastle Airport is approximately 40 kilometres from Nelson Bay (15‐20 minute drive) and 18 kilometres
from Raymond Terrace. There are 5 rental car companies based at the Airport, with a range of vehicles
available for hire. Port Stephens Coaches operates regular services between Newcastle and the Tomaree
Peninsula via the Airport. From Monday to Saturday, Hunter Valley Coaches provides a limited service
between Lemon Tree Passage, Raymond Terrace and Newcastle via the Airport. There is a shuttle bus
operator based in Port Stephens as well as shuttle bus services to the Central Coast, Newcastle, Upper
Hunter and Forster‐Tuncurry. The Airport is currently reviewing the licensing arrangements for these
operators.
The Airport is serviced by Newcastle Taxis. Port Stephens destinations are designated 'out of area' and
incur a return fee. This doubles the cost of an already expensive taxi fare. This issue needs to be
addressed as part of the licensing review that is being undertaken.
A number of Port Stephens accommodation properties provide courtesy bus services to and from the
Airport.
3.5 Rail & Coach Access
Port Stephens can be accessed by rail to Newcastle (or to Maitland), with Port Stephens Coaches providing
regular connecting services to the Tomaree Peninsula. Hunter Valley Coaches provides a less frequent
service to Lemon Tree Passage via Raymond Terrace, with this service operating six days per week.
The long‐haul interstate coaches will set‐down and pick up at Heatherbrae, with services to Lemon Tree.
Passage and the Tomaree Peninsula provided by Hunter Valley Coaches and Port Stephens Coaches,
respectively.
Port Stephens Coaches operates a daily coach service between Sydney and the Tomaree Peninsula, via
Raymond Terrace. This service is used primarily by Port Stephens residents and VFR travellers, rather than
tourists. It would be an ideal service for back‐packers, however most back‐packers are travelling on either
rail passes and/or Oz‐Experience or Greyhound Passes and do not want to pay the extra fare. Both Oz
Experience and Greyhound will set‐down and pick‐up at Heatherbrae (has to be pre‐booked). The
Greyhound service also goes into Newcastle. Both back‐packer hostels in Port Stephens have courtesy
buses and will pick‐up and drop off at Newcastle or Raymond Terrace, however prefer guests to use the
Port Stephens Coach service if possible.
3.6 Local Ground Transport
The dispersed nature of the LGA is a challenge. Although local bus services operate within and between
centres, the service between the different localities is time consuming and not ideal for travellers. Having
two different coach operators and limited services to the Tilligerry Peninsula is not conducive to travel by
public transport between the Tomaree and Tilligerry Peninsulas.
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Port Stephens Tourism Plan ‐ Diagnostic Report
Within the Tomaree Peninsula, a number of the larger accommodation properties and the licensed Clubs
have courtesy coaches. Some of the accommodation properties will provide transfers to and from the
Airport. A number of accommodation operators have bicycles available for guest use, with bicycle hire
also available.
3.7 Cycle ways
Cycle tourism is a strong growth market, particularly internationally. There are a number of international
tour operators who special in cycle tours, including tours to Australia. There are also an increasing number
of Europeans (mainly Germans) undertaking FIT cycling holidays in Australia. Long distance cycling routes
are being identified in various parts of Australia. Port Stephens is relatively flat and would be ideal for
cycling. A possible touring route would start at Newcastle Station, use the Ferry to cross to Stockton then
head north to Nelson Bay, crossing by ferry to Tea Gardens then heading north to the Myall Lakes, Forster
and onto Taree. While sections of the Nelson Bay Road are currently not suitable for cycling, this
opportunity should be taken into consideration when the road is upgraded.
Locally, cycling is popular with visitors, with many visitors, particularly families and those staying in
caravan parks, bringing their bicycles with them. Bike hire is available at Shoal Bay. According to the VIC
staff, visitors frequently ask about cycle ways, with visitors looking for a foreshore ride and off‐road /
mountain bike trails.
Port Stephens Shire has around 50km of cycle ways. Most of the cycle ways are however short and
designed to link residential areas to town centres and schools. There is a shared pedestrian ‐ cycleway
from Corlette to Nelson Bay and from Nelson Bay Marina to Fingal Head which these routes popular with
visitors for recreational cycling. Part of the route between Shoal Bay and Fingal is on the road, which is not
particularly desirable for families with younger children.
Both backpacker hostels provide cycles for guest use. There is a partial cycle‐way along Gan Gan Road
between Anna Bay and One Mile. The accommodation properties in the One Mile Beach ‐ Middle Rock
area would like to see the cycleway extended to provide safe access to Anna Bay and Birubi Beach. They
would also like to see a cycle way to Nelson Bay.
There is a cycle way (11km) from Raymond Terrace to Medowie via Grahamstown Dam. This is a pleasant
ride along the Dam foreshore. The cycleway is not however promoted and is rarely used by visitors.
3.8 Boat Access
Boating and fishing are very popular activities on Port Stephens. A small survey undertaken by the
Waterway Authority found that around 70% of boats on the waterway were trailer boats. Of the trailer
boats, around 40% came from Port Stephens LGA, 20% from Newcastle, 23% from the Hunter and 17%
from Sydney. During holiday periods there is a much higher proportion of out‐of‐area boats.
Boat access infrastructure includes boat ramps, public wharves and jetties and marinas.
There are 9 ramps on the Tomaree Peninsula, 3 of which are ocean ramps, with 6 bay ramps. Of these 6,
the ramps at Little Beach and Soldiers Point are regional facilities, with Little Beach being the most used
ramp in the LGA. There are 4 ramps on the Tilligerry Peninsula, of which the Lemon Tree Passage ramp is
the most used. The other ramps are local ramps that can only be used at high tide. There is also a ramp at
Karuah, with this ramp currently being upgraded.
The Little Beach ramp becomes very congested on weekends and during school holidays. The ramp at
Soldiers Point has recently been upgraded to take some of the pressure off Little Beach. Both Karuah and
Lemon Tree Passage ramps are more accessible to the regional community than Little Beach. Once these
facilities are upgraded, they should be promoted to the regional boating and fishing communities. Due to
currents, Karuah has a reputation for being dangerous and for this reason is often avoided. The new ramp
design addresses this issue and will provide a safe launching area. On completion of the ramp
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Port Stephens Tourism Plan ‐ Diagnostic Report
consideration should be given to seeking coverage in the regional press to ensure that boat owners and
fishermen are aware of the new facilities. Boating and fishing clubs in the Region should also be notified.
There is a regional boat ramp at Kings Park in Raymond Terrace which is used for power boating and water
skiing. There are a number of local boat ramps along the Williams River including two ramps at Seaham.
There are 3 public wharves (Nelson Bay, Salamander Bay and Karuah) and 6 jetties on the southern shore
of Port Stephens. A regular ferry service operates between Nelson Bay and Tea Gardens. On request,
ferries will pick up groups from the Karuah Jetty. There are public wharves at Raymond Terrace and
Hinton. Both wharves are located across the road from pubs (Junction Inn at Raymond Terrace and
Victoria Hotel at Hinton). Provided that boats can tie up, there is the potential to promote both hotels as
destinations for boats cruising on the Hunter and Williams Rivers.
There is potential to develop a boat 'touring route' around Port Stephens (the waterway). The Anchorage
Marina has moorings available for short term use for people wanting to dine in the nearby restaurant.
Similar facilities for boats to tie up need to be provided at Lemon Tree Passage and Karuah. Lemon Tree
Passage needs a jetty or floating pontoon to enable boats to call into the area and use the marina facilities,
park and visit the shops.
There are 4 marinas servicing the southern shore or the Bay, plus Cove Marine which provides a hard‐
stand storage facility for up to 70 boats. Combined, the Port Stephens marinas provide around 350 berths
of which around 75‐80% are permanently leased, with the remainder available for transient use. The
majority of the berths are leased by people who reside outside of the Port Stephens LGA. Port Stephens is
popular with the recreational cruising market.
3.9 Directions Forward
Opportunities
To target the Central West, Gunnedah Basin, Tamworth and Armidale, capitalising on the road links
between Port Stephens and these localities.
To take advantage of the advertising and information distribution opportunities at the Airport.
To increase penetration of the interstate markets, aligning Port Stephens' marketing focus to that of
the Airlines.
Once flights are established to most States, target National amateur and school sporting events and
work with Newcastle Convention Bureau to target national association meetings, with the area
positioned as a lower cost, attractive alternative to Sydney.
Position Raymond Terrace and Karuah as accommodation options for out‐of‐area travellers who have
early morning flights.
Position Raymond Terrace as a cost‐effective venue for sporting teams to run training camps before
flying out.
Put in place market development strategies to capitalise on each of the international routes that are
being opened up.
Once international flights are established ‐ incorporate Newcastle Airport as a node on the Pacific
Coast Touring Route.
Explore the possibility of introducing a local back‐packer bus pass for travel to and from Newcastle
and Raymond Terrace and within the local area.
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Port Stephens Tourism Plan ‐ Diagnostic Report
Develop a boat touring route around Port Stephens.
Work with adjoining LGAs to develop a long distance coastal cycle touring route.
Position the boat ramps at Lemon Tree Passage and Karuah as regional facilities and promote these
ramps to the regional boating and fishing markets, including the clubs.
Promote the pubs as Raymond Terrace and Hinton to boat users on the Hunter River and as a day trip
for to people with trailer boats who are staying in other areas of the LGA.
Issues to be Addressed
Nelson Bay Road ‐ need for ongoing improvements to the road and, where possible, initiatives to
improve the presentation of properties / areas along the corridor and to establish a cycleway.
To resolve traffic and parking issues in the Nelson Bay area.
Pacific Highway by‐pass ‐ Council needs to be actively involved in the planning process to ensure that
effective signage is put in place to encourage travellers to continue to break their journey in
Heatherbrae / Raymond Terrace. As part of this, consideration should be given to acquiring strategic
sites for future bill boards.
Locality and directional signage from both the Pacific Highway corridor and Newcastle need to be
improved (see Section 9.1).
Cycle ways – there is a need for an integrated cycleway network on the Tomaree Peninsula.
To put in place the infrastructure and/or change regulations to enable boats to tie up at Lemon Tree
Passage, Karuah and other locations around the Bay, to facilitate on‐water touring. Similar conditions
are also needed at Raymond Terrace and Karuah. Some form of jetty or floating pontoon is needed at
Lemon Tree Passage.
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Port Stephens Tourism Plan ‐ Diagnostic Report
4. VISITATION
This chapter explores visitation to Port Stephens and the surrounding region.
4.1 Visitation to the North Coast and Hunter Regions
Port Stephens is part of the North Coast Tourism Region. Port Stephens also shares boundaries with the
Hunter Tourism Region, with some of its visitor markets closely aligned to those of the Hunter.
The North Coast Region incorporates 8 LGA's and extends from Port Stephens in the south to Coffs
Harbour in the north. The main centres within the region are Taree, Port Macquarie and Coffs Harbour,
with Coffs Harbour, Port Macquarie, Forster‐Tuncurry and the Tomaree Peninsula of Port Stephens being
the main visitor destinations. The North Coast is primarily a coastal holiday destination. Travel within the
Region is concentrated north‐south along the Pacific Highway.
The Hunter Tourism Region incorporates 9 LGA's and extends from Newcastle and Lake Macquarie on the
coast, to the Upper Hunter Shire in the west. It also includes Dungog and Gloucester Shires along the
southern and eastern sides of the Barrington Ranges. Visitation in the Hunter is concentrated in the Lower
Hunter sub‐region with the main destinations and attractions being Newcastle, Wine Country (focussed on
the Pokolbin area) and Barrington Tops. Travel in the Hunter Region is concentrated north‐south along the
Pacific Highway and east‐west along the New England Highway with both routes primarily being transit
corridors.
For the year ending June 2009, the North Coast Region attracted an estimated 3 million domestic and
159,000 international visitors who stayed one or more nights in the Region and 3.08 million day trippers.
In the same period, the Hunter attracted 1.895 million domestic overnight visitors, 110,200 overnight
international visitors and 4.33 million day trippers. (TNSW Regional Profiles).
Visitor and trip characteristics for both regions are summarised below. The summaries are based on the
Regional Profiles for the Year Ending June 2009, published by Tourism New South Wales. These profiles
combine data from the National and International Visitor Surveys conducted by Tourism Australia. Data is
provided for the financial years 2004‐5 through to 2008‐9. References to 2009 in the following sections
are for the YE June 2009.
4.1.1 Domestic Overnight Visitors
The number of domestic overnight visitors to the North Coast has remained relatively constant for the last
5 years (2005 ‐ 2009), fluctuating between 3 and 3.2 million visitors. The number of nights spent in the
region has fluctuated between 11.6 and 12.8 million, with the average length of stay over the 5 years,
ranging from 3.7 to 4 nights.
The Hunter Region has averaged around 2 million domestic overnight visitors per year, with visitation
increasing from 2005 to 2007 and then declining in 2008 with a further decline in 2009. The number of
nights spent in the region has fluctuated between 5.748m in 2006 down to 4.989m in 2009. The average
length of stay in the Hunter is significantly lower than the length of stay on the North Coast, ranging from
2.5 to 2.7 nights.
Over the past 12 months, both Regions experienced a decline in the number of visits and visitor nights,
with this attributable to the impacts of the global financial crisis. During the same period, the number of
overnight trips taken domestically by Australians fell by 7.1%.
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Port Stephens Tourism Plan ‐ Diagnostic Report
Table 4.1 Domestic Overnight Visitation to the North Coast and Hunter Regions
Year Ending June
2005 2006 2007 2008 2009
North Coast
Overnight Visits ('000) 3,200 3,100 3,200 3,200 3,000
Nights Spent ('000) 12,800 11,600 12,800 12,600 11,700
Av Stay (nights) 4.0 3.7 4.0 3.9 3.9
% change Visits ‐3.1% 3.2% 0.0% ‐6.3%
% change Nights ‐9.4% 10.3% ‐3.8% ‐7.1%
Hunter Region
Overnight Visits ('000) 1,971 2,097 2,119 2,071 1,895
Nights Spent ('000) 5,127 5,748 5,324 5,679 4,989
Av Stay (nights) 2.6 2.7 2.5 2.7 2.6
% change Visits 8.4% 1.0% ‐2.3% ‐8.5%
% change Nights 12.1% ‐7.4% 6.7% ‐12.2%
Source: Tourism NSW Regional Profiles ‐ Mid North Coast and Hunter Regions
Source of Visitors
In 2009 intrastate visitors accounted for 83.2% of visitors to the North Coast and 81.3% of nights spent in
the Region. Sydney was the main source of visitors, accounting for 39% of visits and 43.1% of visitor
nights. Sydney visitors stayed marginally longer in the region (3.9 nights) than visitors from other areas of
NSW (3.7 nights). Over the past 5 years, the proportion of visitors from Sydney has been gradually
trending upwards, while the proportion of visitors from regional NSW has declined marginally. In 2009,
travellers from interstate accounted for 16.8% of visits and 18.6% of nights, with interstate visitors staying
on average 4.3 nights. Queensland is the main source of interstate visitors accounting for 11.8% of visitors
and 11.7% of visitor nights.
The Hunter Region also draws primarily from Sydney (41.5% of visits) and regional NSW (43.4% of visitors).
The proportion of visitors from Sydney has remained relatively constant over the past 5 yeas. Visitors from
Sydney have the shortest length of say, averaging 2.2 nights in 2009. In 2009 interstate visitors accounted
for 14.9% of visitors and 17.3% of nights, staying an average of 4.8 nights in the region.
From 2005 to 2006 the number of interstate visitors to the Hunter Region increased by 45.8%, with a
62.5% increase in the number of Queensland visitors and a 37.8% increase in visitors from Victoria. There
was also a corresponding increase in nights spent in the Region, with nights generated by Queenslanders
increasing by 40.9% while nights from Victorians increased by 61.5%. Since 2006, the interstate market
has fallen with a steady decline in both visits and nights spent in the Hunter. While there has been some
growth in the Victorian market, the number of visitors from Queensland and the other States has fallen
significantly. This is somewhat surprising given the growth in interstate flights into Newcastle Airport.
Table 4.2 Origin of Visitors to the North Coast and Hunter Regions
Source of Visitors Year Ending June
2005 2006 2007 2008 2009
North Coast
Sydney 37.3% 38.9% 39.5% 30.7% 39.0%
Regional NSW 46.9% 45.5% 44.5% 45.5% 44.2%
Total Intrastate 84.2% 84.4% 83.9% 76.2% 83.3%
Queensland 8.2% 9.9% 8.6% 8.8% 11.8%
Other Interstate 7.6% 7.7% 7.5% 6.0% 5.0%
Total Interstate 15.8% 17.6% 16.1% 14.8% 16.8%
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Port Stephens Tourism Plan ‐ Diagnostic Report
Source of Visitors Year Ending June
2005 2006 2007 2008 2009
Hunter Region
Sydney 41.1% 39.6% 40.3% 41.6% 41.5%
Regional NSW 43.5% 39.3% 42.2% 42.5% 43.6%
Total Intrastate 84.6% 78.9% 82.5% 84.1% 85.1%
Queensland 7.2% 11.0% 6.8% 8.1% 7.1%
Victoria 4.4% 5.7% 5.9% 4.2% 5.1%
Other Interstate 3.8% 4.4% 4.7% 3.5% 2.7%
Total Interstate 15.4% 21.2% 17.4% 15.8% 14.9%
Source: Tourism NSW Regional Profiles ‐ Mid North Coast and Hunter Regions
Purpose of Visit
The North Coast is primarily a holiday destination, with holiday and leisure travellers accounting for 58.5%
of visits and generating 67.8% of nights. In contrast, the majority of travellers to the Hunter are visiting
friends and relatives (41.2% of visits and 30% of nights). Overnight visitors to the Hunter, particularly the
holiday‐leisure and visiting friends and relatives (VFR) markets are a potential day trip markets for Port
Stephens.
Table 4.3 Purpose of Visit
Purpose North Coast Hunter
Visits Nights Av Stay Visits Nights Av Stay
Holiday / Leisure 58.5% 67.8% 4.5 38.4% 36.8% 2.2
VFR 29.9% 24.7% 3.2 41.2% 39.0% 2.5
Business 8.6% 4.9% 2.2 15.9% 17.3% 2.9
Other 3.8% 2.1% 2.2 4.8% 6.9% 3.9
Source: Tourism NSW Regional Profiles ‐ Mid North Coast and Hunter Regions
In terms of numbers, the North Coast attracts 2.4 times more holiday / leisure travellers than the Hunter
and around 10% more people visiting friends and relatives. The total number of nights spent generated by
holiday and leisure travellers to the North Coast is 4.3 times more than holiday and leisure nights spent in
the Hunter. Nights spent by VFR travellers on the North Coast is 1.5 times higher than the Hunter.
The Hunter has a stronger business and conference market, attracting 15% more business travellers than
the North Coast, with 34% more business generated nights.
Over the past 5 years, the number of nights spent by VFR and business travellers to the North Coast has
fallen by just over 20%, while the number of nights spent by holiday and leisure travellers has increased
marginally (0.6%). In the Hunter, there has been strong growth in the business travel market (visits up
15.8%, nights up 24.7%) with a decline in the number of holiday / leisure travellers and the VFR market.
Accommodation Used
In 2009, staying with friends and relatives was the most popular form of accommodation used in both the
North Coast and Hunter Regions, accounting for 34.7% and 41.9%, respectively of visitor nights. Staying in
caravan parks was the next most popular type of accommodation on the North Coast (18.7% of nights)
followed by rented holiday houses and apartments (16.7% of nights). In the Hunter 13% of nights were
spent in hotels, motels and guesthouses of less than 4 star standard, with 8.6% of nights in 4 and 5 star
hotels motels and guesthouses.
Over the past 5 years there has been an 11.3% increase in the number of nights spent in caravan parks on
the North Coast, while nights spent in rental accommodation has fallen by 10.8%. In the Hunter, there has
been a 21.3% increase in nights spent in 4‐5 star hotel, motel and guesthouse accommodation and a 34.1%
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Port Stephens Tourism Plan ‐ Diagnostic Report
decline in nights spent in budget and mid‐range (<4 star) properties. This reflects the significant increase
in 4‐5 star properties in the Hunter Region (primarily in Newcastle and Cessnock) as well as a shift in the
market towards higher quality accommodation.
Transport Used
Around 90% of visitors to the North Coast travel by private vehicle, with 5.1% travelling by air and 1.9% by
rental car. In the Hunter 84.7% travel by car, 9% by plane and 3.5% by rail. Over the past 5 years there has
been an increase in air travel, with the number of visitors travelling by air increasing by 66.4% in the
Hunter and 44.9% for the North Coast. In the Hunter, the number of train travellers has declined from
5.7% to 3.5%.
Activities Undertaken
Dining out (undertaken by 54.5% of visitors) and going to the beach (47.1%) are the two most popular
activities undertaken in the North Coast Region, followed by general sight seeing at around 30%. In the
Hunter the most popular activities are dining out (48.9%), general sight seeing (around 20%) going to pubs,
clubs and discos (around 20%) and shopping.
These figures indicate the importance of having dining guides and tourist drives available for visitors.
Travel Mindsets
Travel mindsets refers to the type of experience that travellers are seeking as well as their travel patterns.
In 2008 there was a break in data, changing from Travel Segments to Travel Mindsets, The groupings
however very similar. The mindset data for 2009 is a 2 year aggregate, and applies only to holiday and
leisure travellers.
The North Coast primarily attracts Compatriots (families) and Wanderers (primarily the grey nomads),
followed by Pampadours. The Hunter mainly attracts Wanderers and Pampadours, followed by Peer
Group travellers, with the Region not attracting many families. The proportion of True Travellers attracted
to both regions is low, possibly reflecting the product available.
Table 4.4 Traveller Mindsets
Mindset North Coast Hunter
Pampadours ‐ want luxury 20% 25%
Compatriots ‐ mainly families 29% 11%
True Travellers ‐ seek depth of experience 6% 9%
Peer Group Travellers ‐ fun experiences with friends 16% 18%
Wanderers ‐ take time to explore & discover 27% 32%
Other 6% 11%
Source: Tourism NSW Regional Profiles ‐ Mid North Coast and Hunter Regions
Over the past 5 years there appears to have been growth in the Pampadour / Luxury and Wanderers
markets in both regions. The type of visitors attracted to the area varies seasonally, with travel by
Compatriots concentrated in the school holiday periods, with Wanderers primarily travelling outside of
school holiday periods.
Age Profile
Visitors aged 35 to 44 years (20.4%) was the largest group of travellers to the North Coast, followed by
people aged 45 to 54 years (19.1%). The situation was reversed in the Hunter with 20.2% of visitors aged
45 to 54 years with 19.4% being 35 to 44 years. These age groups relate approximately to Generation X
and the younger Baby Boomers.
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Port Stephens Tourism Plan ‐ Diagnostic Report
Expenditure
In YE June 2009 domestic overnight visitors spent an estimated $1.4 billion in the North Coast, spending
on average, $114 per visitor per night. During the same period, visitors spent an estimated $769 million in
the Hunter Region, with an average spend of $154 per visitor per night. The average spend in the Hunter
was 35% higher than the spend on the North Coast.
4.1.2 International Overnight Visitors
Data on international visitors is taken from the International Visitor Survey as summarised in the Regional
Profiles. Due to the smaller numbers of visitors, the data should be regarded as indicative only.
North Coast Region
In the year ending June 2009, the North Coast Region attracted 159,000 international visitors who stayed
one or more nights in the Region. These visitors stayed an average of 5.4 nights and spent 895,000 nights
in the Region. In the past 5 years, the number of international visitors to the North Coast has increased by
11.3%. From 2005 to 2008 there was steady growth in the number of international visitors to the Region,
followed by a 4.1% decline in the past 12 months. The Global Financial Crisis resulted in a 1.4% decrease
the number of international visitors coming to Australia over the past 12 months (YE June 2009).
Hunter Region
In 2009 the Hunter Region attracted 110,000 international visitors, with these visitors spending 1.554m
nights in the Region. The average length of stay was 14.1 nights. Visitation to the Region has increased by
11.1% over the past 5 years, with growth from 2005 to 2007, peaking at 118,000 visitors, followed by a
7.5% decline in 2008, and recovery in 2009 (up 0.9%).
Table 4.5 Overnight International Visitation to the North Coast and Hunter Regions
Year Ending June
2005 2006 2007 2008 2009
North Coast
Overnight Visits 147,000 145,000 158,000 166,000 159,000
Nights Spent na 887,000 1,006,000 899,000 895,000
Av Stay (nights) 6.1 6.4 5.4 5.4
% change Visits ‐1.4% 9.0% 5.1% ‐4.2%
% change Nights 13.4% ‐10.6% ‐3.8%
Hunter Region
Overnight Visits ('000) 99,000 108,000 118,000 109,000 110,000
Nights Spent ('000) 1,396,000 1,225,000 1,483,000 1,604,000 1,554,000
Av Stay (nights) 14.1 11.3 12.6 14.7 14.1
% change Visits 9.1% 9.3% ‐7.6% 0.9%
% change Nights ‐12.2% 21.1% 5.1% ‐3.1%
Source: Tourism NSW Regional Profiles ‐ Mid North Coast and Hunter Regions
Origin of Visitors
North Coast
In 2009, western markets accounted for 86.2% of international visitors to the North Coast, with the main
markets being the United Kingdom (29.4%), followed by Germany (9.9%), North America (8.7%) and New
Zealand (8.3%). 9.5% of visitors were from Asia, with China being the largest Asian market (2.6%) followed
by Japan (1.6%) and Korea (1.2%). The Indian Market accounted for 0.9% (1,431 visitors) of international
visitors.
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Port Stephens Tourism Plan ‐ Diagnostic Report
From 2006 to 2009 the strongest growth markets (in terms of total increase) were Germany (3,416
visitors, China (3,264), United Kingdom (2,666), and Switzerland (1,519). Percentage‐wise the strongest
growth was seen in the Taiwanese (up 558%), Chinese (373%) and Indian markets (147%), however these
markets were growing from very small bases. From 2006 to 2009, the New Zealand, Korean, Singaporean
and Thai markets all declined.
Table 4.5 Country of Origin of International Visitors to the North Coast
Country of Origin 2006 2009 Change 2006‐9
No % No % No %
Western Markets
United Kingdom 44080 30.4% 46746 29.4% 2666 6.0%
Germany 12325 8.5% 15741 9.9% 3416 27.7%
United States 12905 8.9% 13833 8.7% 928 7.2%
New Zealand 16675 11.5% 13197 8.3% ‐3478 ‐20.9%
Canada 7540 5.2% 8586 5.4% 1046 13.9%
Scandinavia 6380 4.4% 7632 4.8% 1252 19.6%
Switzerland 4205 2.9% 5724 3.6% 1519 36.1%
France 3915 2.7% 5247 3.3% 1332 34.0%
Netherlands 4785 3.3% 5088 3.2% 303 6.3%
Other Europe 10440 7.2% 15264 9.6% 4824 46.2%
Total Western 123250 85.0% 137058 86.2% 13808 11.2%
Asian Markets
China 870 0.6% 4134 2.6% 3264 375.2%
Hong Kong 870 0.6% 477 0.3% ‐393 ‐45.2%
Japan 2320 1.6% 2544 1.6% 224 9.7%
Korea 4205 2.9% 1908 1.2% ‐2297 ‐54.6%
India 580 0.4% 1431 0.9% 851 146.7%
Singapore 2175 1.5% 1431 0.9% ‐744 ‐34.2%
Malaysia 725 0.5% 1113 0.7% 388 53.5%
Taiwan 145 0.1% 954 0.6% 809 557.9%
Thailand 580 0.4% 318 0.2% ‐262 .45.2%
Indonesia 145 0.1% 159 0.1% 14 9.7%
Other Asia 1740 1.2% 795 0.5% ‐945 ‐54.3%
Total Asia 14355 9.9% 15264 9.6% 909 6.3%
Middle East / Africa 725 0.5% 159 0.1% ‐566 ‐78.1%
Other Countries 7105 4.9% 6678 4.2% ‐427 ‐6.0%
Source: Tourism NSW Regional Profiles ‐ Mid North Coast and Hunter Regions
Hunter
The majority of visitors to the Hunter in 2009 were also from the UK (27.1%), with New Zealand ranking
second (12.2%) followed by North America (10.0%). Germany was the largest of the European markets
(excluding the UK). 15.1% of visitors came from Asia, with China being the main market (3.1%), followed
by Taiwan (1.8%), Japan (1.7%) and Korea (1.5%). The Indian market accounted for 0.5% of international
visitors.
From 2006 to 2009, the Asian market grew from 8.5% of international visitors to the Hunter, to 15.1%,
with most of the growth being in the Chinese (4494 additional visitors) and the Taiwanese (2572 additional
visitors) markets. China showed the strongest absolute and percentage growth of all markets. (Note: both
China and Taiwan are growing from a very small base). In the Western markets, the North American and
UK markets grew by 14.4% and 10.0% respectively. The New Zealand (up 3.9%) and Canadian (up 2%)
markets also showed some growth. The German, Scandinavian and Other European markets fell, with
Germany declining by 18.4%.
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Table 4.7 Country of Origin of International Visitors to the Hunter
Country of Origin 2006 2009 Change 2006‐9
No % No % No %
Western Markets
United Kingdom 38860 26.8% 43089 27.1% 4229 10.9%
Germany 12050 9.0% 10653 6.7% ‐2397 ‐18.4%
United States 16820 11.6% 19239 12.1% 2419 14.4%
New Zealand 16675 11.5% 17331 10.9% 656 3.9%
Canada 8265 5.7% 8427 5.3% 162 2.0%
Scandinavia 6525 4.5% 6201 3.9% ‐324 ‐5.0%
Other Europe 26245 18.1% 18921 11.9% ‐7324 ‐27.9%
Total Western 126440 87.2% 123861 77.9% ‐2579 ‐2.0%
Asian Markets
China 435 0.3% 4929 3.1% 4494 1033.1%
Hong Kong 1015 0.7% 1590 1.0% 575 56.7%
Japan 3045 2.1% 2703 1.7% ‐342 ‐11.2%
Korea 2175 1.5% 2385 1.5% 210 9.7%
India 435 0.3% 795 0.5% 360 82.8%
Singapore 2755 1.9% 2067 1.3% ‐688 ‐25.0%
Malaysia 725 0.5% 1908 1.2% 1183 163.2%
Taiwan 290 0.2% 2862 1.8% 2572 886.9%
Thailand 145 0.1% 1431 0.9% 1286 886.9%
Other Asia 1305 0.9% 3816 2.1% 2591 192.4%
Total Asia 12325 8.5% 24486 15.1% 12161 98.7%
Middle East / Africa 145 0.1% 1908 1.2% 1763 1215.9%
Other Countries 5945 4.1% 8904 5.6% 2959 49.8%
Purpose of Visit
In 2009, the majority of international visitors to the North Coast were on holidays (82.3%), with 14.8%
visiting friends and relatives and 1.9% travelling for business. These percentages have remained relatively
consistent over the past 5 years.
The Hunter has a lower proportion of holiday visitors (59%) and a higher proportion of VFR (22.9%) and
business (10.5%) travellers. The volume of VFR traffic has fallen over the past 5 years, while business
travel has increased.
Accommodation Used
In 2009, 32.3% of international visitors to the North Coast stayed with friends and relatives. Backpacker /
hostels were the next most popular form of accommodation (13.3%) followed by caravan parks (12.4%).
Over the past 5 years, staying with friends and relatives has been the most popular form of
accommodation, generally followed by backpacker / hostels. In three of the 5 years, caravan parks ranked
third, with holiday flats and apartments and motels, each ranking third once.
In the Hunter, staying with friends and relative was the most popular accommodation in 2005 and 2006,
with this then being replaced by rental holiday homes and apartments. In YE June 2009, 39.9% of
international visitors stayed in rental accommodation (note 49.5% in 2008), with 28.4% staying with
friends and relatives. Other accommodation used includes staying at educational institutions, back packer
hostels and home stay.
Expenditure
International visitors spent an estimated $58m in the North Coast and $125m in the Hunter in the YE June
2009. The average expenditure per visitor per night on the North Coast was $67, with the average in the
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Port Stephens Tourism Plan ‐ Diagnostic Report
Hunter being $80 per night. The average spend per international visitor in both Regions is considerably
lower than that of domestic overnight visitors.
Implications for Port Stephens
In comparison to the domestic overnight market, the international overnight visitor market is very
small, accounting for 5% of total overnight visitors on the North Coast and 5.5% of overnight visitors in
the Hunter.
The Western markets are the main generators of visitors for both Regions, with the UK market being
the largest market. The UK is the only international market that accounts for more than 1% of
overnight visitors in both Regions (1.5% on the North Coast and 2.2% for the Hunter).
The Asian market is showing strong growth in the Hunter Region (albeit from a very small base), up
98.5% in the past 4 years, with the strongest growth being in the Chinese market. Asian visitation to
the North Coast Region only increased by 6.3% in the past 4 years.
The Indian market, which is being targeted by Port Stephens, is very small, generating only 1,431
visitors to the North Coast and 795 to the Hunter in 2009. There is a large Indian community at
Woolgoolga, just north of Coffs Harbour, and it is likely that a significant proportion of the Indian
travel to the North Coast is Woolgoolga related VFR.
In comparison to the domestic market, international visitors are spending considerably less per night
than domestic visitors.
4.1.3 Domestic Day Trippers
In 2009, there were 3.08 million day trips undertaken to and within the North Coast Region, with 4.333
million day trips to the Hunter. In both regions, the number of day trips increased from 2005 to 2008,
then declined in 2009, primarily due to economic conditions.
Table 4.8 Domestic Day Trip Visitation to the North Coast and Hunter Regions
Year Ending June
2005 2006 2007 2008 2009
Day Trippers
North Coast ('000) 2.925 3,238 3,337 3,384 3,080
Hunter ('000) 3,552 4,049 4,258 4,572 4,330
% change North Coast 10.7% 3.1% 1.4% ‐9.0%
% change Hunter 14.0% 5.2% 7.4% ‐5.3%
Source: Tourism NSW Regional Profiles ‐ Mid North Coast and Hunter Regions
The majority of day trips in each Region are leisure trips, accounting for 59% of North Coast trips and 46%
of Hunter trips. Visiting friends and relatives ranks second with 23.7% of trips to the North Coast and
32.5% of Hunter trips. The Hunter also has a strong business market (13.9% of trips).
Around half the day trippers in both Regions dined out. Visiting friends and relatives ranked second,
accounting for 33.2% of activities undertaken by day trippers to the North Coast and 44.5% of day trippers
to the Hunter. Other popular activities were shopping for pleasure, going to the beach and general sight
seeing. The average expenditure per day tripper was $114 in the North Coast and $101 in the Hunter.
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Table 4.9 Characteristics of Day Trippers, YE June 2009
Characteristics North Coast Hunter
Purpose of Visit
Holiday / Leisure 59.0% 44.6%
Visiting Friends & Relatives 23.7% 32.5%
Business 6.6% 13.9%
Main Activities Undertaken
Dining Out 50.4% 46.3%
Visiting Friends & Relatives 33.2% 44.5%
Shopping for Pleasure 28.6% 23.6%
Sight Seeing 18.1% 15.2%
Going to the Beach 20.8% 8.6%
Expenditure
Total spent in region $350m $435m
Average spend per visitor $114 $101
Implications for Port Stephens
It is important to market to residents of the surrounding area, encouraging visitation to Port Stephens as a
day trip, and also to bring their VFR visitors to Port Stephens.
4.1.4 International Day Trippers
Statistics are not available on the size or characteristics of international day trippers visiting Port Stephens.
The international day trip market is a significant market for a number of the tour and attraction operators.
It is recommended that the Tourism Unit in conjunction with PSTL work with PSTL members to try and
quantify the size and characteristics of this market.
4.2 Visitation to LGA’s within the North Coast and Hunter Regions
Tourism Research Australia has prepared visitation profiles for individual LGAs for the year ending June
2007. These profiles are derived from the National Visitor and International Visitors Survey data and are
based on the average visitation to the LGA over the past 3‐4 years. Due to small sample sizes, data on
international overnight visitors and domestic day trippers is not published for some LGAs. Information is
not available on day trips undertaken by international visitors.
In 2007, Port Stephens was the 3rd most visited LGA in the North Coast Region, ranking behind Coffs
Harbour and Port Macquarie. Port Stephens attracted an estimated 617,000 domestic overnight visitors,
27,000 international overnight visitors and 612,000 day trippers. Domestic overnight visitors spent 2.384
million nights in the LGA, with international visitors spending 123,000 nights. Within the North Coast
Region, domestic overnight visitors to Port Stephens had the highest average daily spend ($141 per
visitor), with average expenditure by international visitors ($100 per visitor) ranking 2nd in the Region.
In the Hunter Region, Newcastle was the most visited LGA, attracting 903,000 domestic and 59,000
international overnight visitors and 1.959m day trippers. Cessnock ranked second with 322,000 domestic
and 29,000 international overnight visitors and 543,000 day trippers. Domestic overnight visitors to
Cessnock spent an average of $246 per day. Day trippers spent on average $120 per day in Cessnock, with
expenditure by international visitors being lower at $94 per day.
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Port Stephens Tourism Plan ‐ Diagnostic Report
Table 4.10 Visitation to LGAs within the North Coast & Hunter Regions
LGA Domestic Overnight Visitors International Overnight Visitors Dom Day Average Daily Spend
Visits ('000) % of Nights ('000) % of Av Stay Nights ('000)
Visits ('000) Av Stay Trips Domestic Overseas Day
Region Region Nights Nights O'night Visitors Trippers
North Coast
Bellingen 87 2.6% 299 2.4% 3.4 np np np 139 $ 56 np $ 79
Coffs Harbour 790 23.3% 2678 21.6% 3.4 75 337 4.5 675 $123 $ 53 $145
Great Lakes 511 15.1% 1864 15.0% 3.6 14 46 3.3 401 $115 $ 57 $ 72
Kempsey 319 9.4% 1385 11.2% 4.3 8 36 4.7 221 $ 58 $ 94 $ 80
Nambucca 131 3.9% 494 4.0% 3.8 np np np np $ 90 np np
Port Macquarie 704 20.8% 2621 21.1% 3.7 54 214 3.9 662 $107 $ 65 $127
Port Stephens 617 18.2% 2384 19.2% 3.9 27 123 4.5 612 $141 $100 $ 99
Taree 232 6.8% 692 5.6% 3.0 7 36 4.9 383 $ 57 $108 $106
Hunter
Cessnock 322 15.2% 721 13.4% 2.2 29 86 3.0 543 $246 $94 $120
Dungog 75 3.5% 178 3.3% 2.4 np np np 126 $137 np $ 43
Gloucester 103 4.9% 321 6.0% 3.1 np np np np $ 86 np np
Lake Macquarie 220 10.4% 679 12.6% 3.1 9 102 11.0 434 $ 53 $99 $100
Maitland 151 7.1% 368 6.8% 2.4 np np np 395 $123 np $ 85
Muswellbrook 90 4.2% 203 3.8% 2.3 np np np np $ 94 np np
Newcastle 903 42.6% 2358 43.7% 2.6 59 1066 18.0 1959 $111 $69 $ 96
Singleton 144 6.8% 327 6.1% 2.3 np np np 188 $135 np $ 84
Upper Hunter 114 5.4% 239 4.4% 2.1 np np np np $101 np np
Source: Tourism Research Australia LGA Profiles, YE June 2007
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Port Stephens Tourism Plan ‐ Diagnostic Report
4.3 Market Outlook & Forecasts
The Global Financial Crisis has had a significant impact on the tourism sector, with Tourism Research
Australia (TRA) estimating that the industry has contracted by 3.5%. In 2009, international visitors to
Australia fell by 1.4%, while the number of domestic visitor nights fell by 5.4%. TRA expects a modest
recovery in 2010 with international arrivals forecast to increase by 4.4% and domestic nights to increase by
2.3%. From 2010 to 2013 the domestic market is expected to decline by 0.4% per annum, with slight
growth (0.5% pa) forecast for 2013‐2018. International arrivals are forecast to increase by 3.5% per
annum.
The forecast growth rates for the main international markets attracted to the North Coast and Hunter area
are:
Table 4.11 Forecast Annual Growth Rates ‐ Main International Markets
Market Forecast Annual Growth Rate
2010‐2013 2013 ‐ 2018
United Kingdom 1.2% 2.8%
North America 2.1% 4.8%
New Zealand 1.6% 1.3%
Germany 1.2% 2.8%
Canada 1.9% 4.2%
China 11.5% 9.1%
South Korea 8.1% 2.4%
India 16.5% 13.1%
China is forecast to account for 13.7% of total additional visitor arrivals generated from 2010 to 2018, with
New Zealand ranking second (12.5%), followed by the United Kingdom (8.8%) and the United States
(.77%). India is forecast to rank 7th accounting for 5.5% of additional arrivals. By 2018 the Indian market is
forecast to grow to 459,000 arrivals per annum.
4.4 Port Stephens Visitor Profile
The Port Stephens Tourism Profile provides a broad overview of the scale and characteristics of visitation
to the LGA. According to the Tourism Profile for the YE June 2007:
Domestic Overnight Visitors
Port Stephens attracted in the order of 617,000 domestic overnight visitors, with these visitors
spending around 2.384 million nights in the LGA.
Visitors stayed an average of 3.9 nights, with 23% of visitors staying one night, 27% staying 2 nights,
24% staying 3‐4 nights, 19% staying 5‐9 nights and 7% staying 10+ nights.
Visitors spent on average $141 per person per night while in the LGA.
90% of visitors were from NSW with 60% coming from Sydney and 30% from Regional NSW.
Interstate visitors account for 10% of visits with Melbourne being the main interstate market.
Holiday and leisure travellers accounted for 73% of visits.
Visiting friends and relatives accounted for 21% of visits, with 26% of visitors staying with friends and
relatives.
Business travel was very low, accounting for only 4% of trips.
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Port Stephens Tourism Plan ‐ Diagnostic Report
30% of visitors stayed in hotels, resorts and motels, while 19% rented holiday houses, apartments and
13% stayed in caravan parks.
94% of visitors travelled to Port Stephens by car with only 1% travelling by air. Given the proximity of
Newcastle Airport, the percentage of air travellers is lower than expected.
The main activities undertaken by visitors to Port Stephens were dining out (58%), going to the beach
(55%), driving and walking around (40%), visiting friends and relatives (33%), shopping for pleasure
(31%) and going to pubs and clubs (27%).
For 85% of visitors, Port Stephens was the main destination with 15% of visitors staying in the LGA as
part of a multi‐destination trip.
13% of visitors to Port Stephens were aged 15‐24 years (Generation Y), 39% were aged 25‐44 years
(Generation X), with 31% being 45‐64 years (Baby Boomers) and 17% being 65+ years of age.
37% of visitors were families with children, 28% were younger midlife singles and couples, 13% were
older working couples with 23% being retirees.
32% of visitors were travelling as a family with children, 32% as couples, 23% with friends or relatives
and 10% alone.
International Overnight Visitors
In 2007 Port Stephens attracted 27,000 international visitors, with these visitors staying 123,000
nights in the area.
55% of international visitors to Port Stephens were repeat visitors.
28% of international visitors came from the United Kingdom, with 12% from New Zealand and 8%
from Germany.
83% of international visitors were holiday‐leisure travellers, with 13% visiting friends and relatives and
3% travelling for business.
44% of visitors stayed in hotel, motel or resort accommodation, with 19% staying in caravan parks,
17% with friends and relatives and 9% at back packer hostels. Only 4% rented holiday houses or flats.
The most popular activities undertaken by international visitors were dining out (86%), going to the
beach (83%), shopping for pleasure (66%), whale and/or dolphin watching, (45%), going to pubs and
clubs (41%) and visiting National Parks and State Forests (32%).
The average length of stay was 3.5 nights, with 32% staying 1 night, 23% staying 2 nights, 18% staying
3‐4 nights, 18% staying 5‐9 nights and 9% staying 10+ nights.
14% of international visitors were aged 15‐24 years, 36% were 25‐44 years, 37% were 45‐64 years
with 7% being 65+ years.
44% were travelling as adult couples, with 35% being unaccompanied, and 11% travelling with friends
or relatives. Only 9% were travelling with children.
Domestic Day Trippers
In 2007 Port Stephens attracted an estimated 612,000 day trippers, of which 63% were leisure
travellers, 25% were visiting friends and relatives and 12% were travelling for other reasons.
56% were aged 15‐44 years, with 32% being 45‐64 years and 13% being 65+.
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Port Stephens Tourism Plan ‐ Diagnostic Report
35% were younger midlife couples and singles, 31% were families with children, 11% were older
working couples and 22% were retired.
The most popular activities undertaken were dining out (47%), going to the beach (35%), visiting
friends and relatives (29%) and walking and driving around (23%).
The different market segments attracted to Port Stephens are discussed in Section 4.6.
4.5 Comparison of Visitor Profiles ‐ North Coast & Hunter
A comparison of visitor and trip characteristics of Port Stephens with the most visited destinations in the
North Coast and Hunter Regions is given in the following tables. The main findings from this comparison
were:
Domestic Market
Port Stephens visitor markets are more closely aligned with the North Coast than the Hunter Region.
Port Stephens is highly dependent on the Sydney market, with low penetration of the regional NSW
and Interstate markets.
Port Stephens has a relatively narrow market base and is highly dependent on holiday and leisure
travellers.
The LGA is more popular with the family market, particularly families with young children, and with
retirees, and marginally less popular with the market segments that are likely to have more disposable
income.
Port Stephens does not appear to be capitalising effectively on Newcastle Airport.
International Overnight Visitors
Port Stephens appears to attract a different mix of international visitors to Hunter and North Coast,
with a higher propensity for repeat visitors, adult couples and visitors staying 3+ nights in the area.
Back‐packers appear to be by‐passing the LGA, possibly due to limited accommodation and/or the
coach services north which depart from Newcastle.
Visitors from western countries are the primary markets for both the North Coast and Hunter Regions.
4.5.1 Domestic Overnight Visitors
Origin of Visitors
NSW is the main source of visitors for each of the LGAs, with Port Stephens and Great Lakes having the
highest proportion (around 90%) of intrastate visitors. Port Stephens, Cessnock, Lake Macquarie and Great
Lakes are dependent on the Sydney market for around 60% of their visitation. Given the proximity of Port
Stephens to the Hunter and Central Coast regions, and the road links to Central NSW (Golden Highway)
and the New England ‐ North West Region (New England Highway and Thunderbolts Way), the proportion
of visitors from Regional NSW is lower than expected. Port Stephens penetration of the interstate market
(10% of visitors) is also very low, given the proximity to Newcastle Airport.
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Port Stephens Tourism Plan ‐ Diagnostic Report
LGA Origin of Domestic Overnight Visitors‐ % of visits
NSW Interstate Sydney Regional NSW
Port Stephens 90% 10% 60% 30%
Coffs Harbour 71% 29% 34% 37%
Port Macquarie 82% 18% 44% 38%
Great Lakes 91% 9% 58% 33%
Newcastle 77% 23% 43% 33%
Cessnock 81% 19% 60% 21%
Lake Macquarie 86% 14% 60% 26%
NSW Average 68% 32% 35% 33%
Source: Tourism Research Australia – Tourism Profiles Regional Areas – 2007
Main Purpose of Visit
Cessnock, Port Stephens and Great Lakes Shire are highly dependent on holiday and leisure travellers, with
these travellers accounting for 73% of travellers to Port Stephens. Holiday and leisure travel is highly
discretionary, and as such these LGAs are likely to be more vulnerable in tough economic conditions.
Newcastle, Coffs Harbour and Port Macquarie have reasonable business travel sectors which helps to
under‐pin the viability of their accommodation sectors.
LGA Main Purpose of Visit ‐ % of visits
Holiday VFR Business Other
Port Stephens 73% 21% 4% 2%
Coffs Harbour 51% 28% 14% 7%
Port Macquarie 54% 31% 11% 5%
Great Lakes 72% 22% 3% 3%
Newcastle 22% 53% 19% 5%
Cessnock 85% 7% 4% 4%
Lake Macquarie 42% 49% np np
NSW Average 42% 37% 18% 6%
Source: Tourism Research Australia – Tourism Profiles Regional Areas – 2007
VFR = Visiting Friends and Relatives np = Not Published
Type and Duration of Trip
Port Stephens has the highest proportion of destination based travellers, reflecting in part the distance
from the Pacific Highway to the main tourist areas. It is likely that most of the transit (multi‐destination
visits) in the LGA are concentrated along the Highway corridor at Raymond Terrace and Karuah. The
coastal areas of Port Stephens do not have the benefit of transit traffic and impulse stops, nor does it
appear that the area is tapping effectively into the touring market. The data also indicates the importance
of having effective motivational and directional signage along the Pacific Highway corridor.
74% of trips to Port Stephens are short breaks (1 to 4 nights). The duration of trips to Port Stephens is
similar to the other coastal destinations.
LGA Sole Duration of Visit (nights)
Destination 1 2 3‐4 5‐ 9 10+
Port Stephens 85% 23% 27% 24% 19% 7%
Coffs Harbour 64% 33% 22% 22% 18% 5%
Port Macquarie 70% 28% 23% 24% 19% 6%
Great Lakes 81% 21% 26% 29% 18% 5%
Newcastle 81% 40% 28% 21% 8% 3%
Cessnock 81% 31% 42% 23% np np
Lake Macquarie 81% 30% 36% 16% 14% 4%
NSW Average 86% 29% 27% 24% 15% 5%
Source: Tourism Research Australia – Tourism Profiles Regional Areas – 2007
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Port Stephens Tourism Plan ‐ Diagnostic Report
Accommodation
Port Stephens has the highest proportion of visitors staying in rented holiday houses and apartments
(19%) and the second highest proportion of visitors staying in caravan parks (13%). The apartment statistic
is interesting because both Coffs Harbour and Port Macquarie have large apartment complexes, however
these are managed and promoted as 'resorts'.
LGA Accommodation Used
Hotel, Motel, Rented House / Caravan Park Friends / Other
Resort Apartment / Camping Relatives
Port Stephens 30% 19% 13% 26% 10%
Coffs Harbour 47% 6% 11% 29% 6%
Port Macquarie 36% 12% 11% 30% 10%
Great Lakes 23% 17% 19% 26% 16%
Newcastle 34% 2% 3% 57% 4%
Cessnock 46% 11% 12% 21% 15%
Lake Macquarie 14% 8% 11% 55% 12%
NSW Average 36% 6% 8% 42% 14%
Source: Tourism Australia – Tourism Profiles Regional Areas – 2007
Other includes caravan / camping in non‐commercial areas and houseboats
Transport Used
The majority of visitors to all LGAs travel by private car. Only 1% of visitors to Port Stephens arrive by air.
In contrast, 5% of visitors to Cessnock and 2% to Lake Macquarie travel by air. While Lake Macquarie's
visitation is probably VFR related, visitors to Cessnock are likely to be leisure travellers and/or conference
delegates. Newcastle is also drawing visitors through the Airport, many of whom are likely to be business
travellers, conference delegates and sporting and event attendees. With the interstate air services
available through the Airport, there is opportunity for Port Stephens to build the interstate markets.
LGA Transport Used
Private Car Air Other
Port Stephens 94% 1% 5%
Coffs Harbour 86% 9% 5%
Port Macquarie 91% 4% 5%
Great Lakes 95% 1% 4%
Newcastle 78% 11% 11%
Cessnock 87% 5% 8%
Lake Macquarie 88% 2% 10%
NSW Average 78% 15% 8%
Source: Tourism Australia – Tourism Profiles Regional Areas – 2007
Activities Undertaken
Dining out, going to the beach and undertaking walks and drives are very popular activities with visitors to
Port Stephens. These figures indicate the importance of having the information and infrastructure in place
to support these activities.
LGA Dining Out Beach Drives / VFR Shop Clubs Winery
Walks Pubs
Port Stephens 58% 55% 40% 33% 31% 27%
Coffs Harbour 58% 48% 34% 42% 34% 28%
Port Macquarie 57% 45% 35% 42% 34% 29%
Great Lakes 52% 56% 35% 34% 23% 28%
Newcastle 52% 23% 24% 58% 26% 23%
Cessnock 60% ‐ 33% 31% 26% 24% 62%
Lake Macquarie 41% 28% 20% 55% 24% 24%
NSW Average 52% 24% 27% 45% 27% 25% 3%
Source: Tourism Australia – Tourism Profiles Regional Areas – 2007
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Port Stephens Tourism Plan ‐ Diagnostic Report
Age Profile of Visitors
Although the age profiles in each of the LGAs are similar, it appears that Port Stephens attracts less of the
Baby Boomer generation and slightly more of Generation X and Seniors. As a generalisation, these
generations are less affluent, with lower disposable income, than the Baby Boomer generation.
LGA Age of Visitors
15‐24 years 25‐44 years 45‐64 years 65+ years
(Gen Y) (Gen X) (Baby Boomers (Seniors)
Port Stephens 13% 39% 31% 17%
Coffs Harbour 14% 37% 37% 12%
Port Macquarie 13% 36% 36% 16%
Great Lakes 15% 36% 35% 13%
Newcastle 19% 38% 32% 11%
Cessnock 9% 42% 36% 13%
Lake Macquarie 12% 40% 34% 19%
NSW Average 16% 37% 34% 13%
Source: Tourism Research Australia – Tourism Profiles Regional Areas – 2007
Lifecycle Group
The lifecycle stage of visitors to Port Stephens is similar to those of Coffs Harbour, Port Macquarie and
Great Lakes, with Port Stephens attracting slightly more families with younger (pre‐school aged) children
and slightly less families with older children.
LGA Young Midlife Parents with youngest Older
child
Single Couple < 6 years 6+ years Working Retired
Port Stephens 16% 12% 17% 20% 13% 23%
Coffs Harbour 18% 11% 14% 23% 14% 20%
Port Macquarie 14% 12% 14% 22% 15% 23%
Great Lakes 17% 13% 14% 23% 13% 19%
Newcastle 23% 14% 14% 18% 14% 17%
Cessnock 11% 21% 12% 22% 15% 19%
Lake Macquarie 13% 16% 16% 17% 14% 24%
NSW Average 19% 13% 13% 22% 15% 18%
Source: Tourism Australia – Tourism Profiles Regional Areas – 2007
Travel Party
Port Stephens attracts a higher proportion of families with children than the other LGAs, with the area also
being popular with adult couples. Port Stephens does not attract a lot of visitors travelling alone, possibly
reflecting the limited size of the business sector.
LGA Travel Party
Alone Adult Couple Family + Friends / other
children Relatives
Port Stephens 10% 32% 32% 23% 3%
Coffs Harbour 17% 33% 25% 19% 6%
Port Macquarie 14% 35% 27% 19% 4%
Great Lakes 9% 33% 29% 26% 3%
Newcastle 31% 29% 20% 14% 6%
Cessnock 10% 42% 12% 28% 7%
Lake Macquarie 14% 32% 27% 21% 6%
NSW Average 25% 28% 21% 20% 6%
Source: Tourism Australia – Tourism Profiles Regional Areas – 2007
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Port Stephens Tourism Plan ‐ Diagnostic Report
4.5.2 International Overnight Visitors
Repeat Visitation and Purpose of Visit
55% of international visitors to Port Stephens are repeat visitors with this proportion being considerable
higher than repeat visitor to other LGA's in the North Coast Region. It is also higher than the average for
the State. Port Stephens needs to investigate this percentage as it means that there are only 12,150 'new'
international visitors each year staying in the LGA. Lake Macquarie also has a very high proportion of
repeat visitors, however these visitors appear to be mainly VFR travellers.
LGA Repeat Visitor Purpose of Visit
Holiday VFR Business Other
Port Stephens 55% 83% 13% 3% 1%
Coffs Harbour 36% 90% 7% ‐ 3%
Port Macquarie 37% 88% 9% 1% 2%
Great Lakes 47% 86% 15% ‐ ‐
Newcastle 49% 50% 30% 11% 11%
Cessnock 49% 85% 7% 4% 4%
Lake Macquarie 76% 29% 62% ‐ ‐
NSW Average 51% 58% 25% 15% 10%
Source: Tourism Australia – Tourism Profiles Regional Areas – 2007
Origin of Visitors ‐ Main Source Countries
Western markets are the primary source of international visitors to each of the LGAs, with the United
Kingdom being the most significant market, followed by New Zealand and the United States.
LGA UK Germany Other New Zealand USA Canada
Europe
Port Stephens 28% 8% 8% 12%
Coffs Harbour 30% 10% ‐ 10% 11% ‐
Port Macquarie 32% 11% 8% 11% ‐ ‐
Great Lakes 29% ‐ ‐ 15% ‐
Newcastle 22% ‐ 14% 10% 6%
Cessnock 26% 9% 13% 13%
Lake Macquarie 30% 22%
NSW Average 15% 4% 4% 13% 10% 3%
Source: Tourism Australia – Tourism Profiles Regional Areas – 2007
Accommodation Used
Compared to other coastal LGAs, Port Stephens had a higher proportion of international visitors staying in
hotel, motel and resort accommodation. This may reflect either a different market demographic to other
areas or limited availability of back packer / hostel accommodation, with these travellers staying in other
types of accommodation when in the area. International visitors have a low propensity to rent holiday
houses and apartments, possibly due to their relatively short stay in the area (most holiday rentals have a
minimum stay) and/or the fact that they may not be travelling with linen.
LGA Hotel Motel Rented Caravan Friends / Back Other
Resort House / Park Relatives Packers
Unit
Port Stephens 44% 4% 19% 17% 9% 7%
Coffs Harbour 38% 3% 20% 8% 27% 4%
Port Macquarie 30% 2% 24% 11% 30% 3%
Great Lakes 35% ‐ 31% 15% 17% ‐
Newcastle 22% 6% 8% 36% 21% 8%
Cessnock 62% 3% 10% 7% 6% 12%
Lake Macquarie 10% ‐ 16% 63% ‐ 11%
NSW Average 58% 6% 3% 29% 12% 6%
Source: Tourism Australia – Tourism Profiles Regional Areas – 2007
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Port Stephens Tourism Plan ‐ Diagnostic Report
Age Profile
Port Stephens appears to attract an older demographic than Coffs Harbour and Port Macquarie. It is
possible that the younger back packer market is by‐passing the LGA.
LGA Age of Visitors
15‐24 years 25‐44 years 45‐64 years 65+ years
(Gen Y) (Gen X) (Baby Boomers (Seniors)
Port Stephens 14% 36% 37% 12%
Coffs Harbour 31% 35% 26% 8%
Port Macquarie 31% 40% 22% 7%
Newcastle 32% 40% 23% 4%
Cessnock 9% 41% 43% 7%
Great Lakes 51% 39% 10%
Lake Macquarie 38% 49% 13%
NSW Average 17% 43% 32% 7%
Source: Tourism Australia – Tourism Profiles Regional Areas – 2007
Travel Party
LGA Travel Party
Alone Adult Couple Family + Friends / other
children Relatives
Port Stephens 35% 44% 9% 11% 1%
Coffs Harbour 46% 36% 6% 12% ‐
Port Macquarie 42% 39% 5% 13% 1%
Great Lakes 38% 46% ‐ 16% ‐
Newcastle 60% 20% 6% 12% 3%
Cessnock 36% 48% 6% 9% 1%
Lake Macquarie 39% 46% ‐ 14% 1%
NSW Average 50% 26% 9% 10% 5%
Source: Tourism Australia – Tourism Profiles Regional Areas – 2007
Duration of Visit
Newcastle and Lake Macquarie attract the highest proportion of international visitors staying 3 or more
nights. These are primarily VFR travellers plus some educational related travel associated with the
University of Newcastle. In the holiday and leisure market, international visitors tend to stay longer in Port
Stephens than they do in Coffs Harbour, Port Macquarie and Great Lakes.
LGA Duration of Visit (nights)
1 2 3‐4 5‐ 9 10+
Port Stephens 32% 23% 18% 18% 9%
Coffs Harbour 51% 18% 14% 11% 6%
Port Macquarie 44% 24% 15% 12% 5%
Newcastle 24% 17% 16% 19% 24%
Cessnock 38% 35% 18% 5% 5%
Great Lakes 74% 9% 17%
Lake Macquarie 28% 14% 59%
NSW Average 5% 14% 24% 25% 31%
Source: Tourism Australia – Tourism Profiles Regional Areas – 2007
4.5.3 Domestic Day Trips
Port Stephens Shire attracted an estimated 612,000 domestic day trips in 2007.
Main Purpose of Visit
The majority of day trips to Port Stephens are leisure related, with the LGA having a small business trip
market.
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Port Stephens Tourism Plan ‐ Diagnostic Report
LGA Main Purpose of Visit ‐ % of visits
Holiday VFR Business / Other
Port Stephens 63% 25% 12%
Coffs Harbour 53% 25% 22%
Port Macquarie 53% 25% 23%
Great Lakes 60% 27% 14%
Newcastle 40% 33% 27%
Cessnock 70% 23% 7%
Lake Macquarie 44% 46% 10%
NSW Average 52% 29% 19%
Source: Tourism Research Australia – Tourism Profiles Regional Areas – 2007
VFR = Visiting Friends and Relatives
Age Profile
Port Stephens appears to attract less day trips from retires than the other destinations on the North Coast.
LGA Age of Day Trippers
15‐44 years 45‐64 years 65+
Port Stephens 56% 32% 13%
Coffs Harbour 52% 31% 17%
Port Macquarie 50% 27% 23%
Great Lakes 53% 30% 31%
Newcastle 56% 30% 14%
Cessnock 42% 35% 22%
Lake Macquarie 53% 34% 13%
NSW Average 53% 31% 15%
Source: Tourism Australia – Tourism Profiles Regional Areas – 2007
Lifecycle Stage
LGA Lifecycle Stage
Younger Midlife Parents with Older Working Older Non‐working
Singles + Children
Couples
Port Stephens 35% 31% 11% 22%
Coffs Harbour 31% 34% 19% 26%
Port Macquarie 26% 30% 9% 34%
Great Lakes 34% 30% 13% 22%
Newcastle 34% 35% 12% 19%
Cessnock 25% 29% 15% 31%
Lake Macquarie 24% 42% 10% 24%
NSW Average 32% 35% 12% 21%
Source: Tourism Research Australia – Tourism Profiles Regional Areas – 2007
4.6 Markets Attracted to Port Stephens
The following information on the different markets attracted to Port Stephens is qualitative and based on
observations provided by the Visitor Information Centre Staff and local accommodation, tour and
attraction operators. Port Stephens attracts a very diverse range of markets, with the market mix varying
quite significantly in the different localities.
The primary and secondary markets for each locality are summarised in Table 4.12 and discussed below.
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Port Stephens Tourism Plan ‐ Diagnostic Report
Table 4.12 Primary and Secondary Markets
Locality Primary Markets Secondary / Minor Markets
Nelson Bay Shoal Families ‐ holiday makers ‐ concentrated in Conferences & meetings
Bay Fingal Bay school holiday periods Business related travel
Couples ‐ short breaks and holiday Domestic tour groups ‐ primarily retirees
markets ‐ warmer months and weekends visiting mid‐week
Retirees ‐ off season International Tour Groups
Visiting friends and relatives (VFR) International travellers ‐ FIT self drive
International groups ‐ primarily day visitors Activity based groups and individuals ‐
participating in dolphin watching activities including golfers, anglers, boating, diving
Day trippers ‐ Hunter enthusiasts
Event attendees
Day trippers ‐ Sydney & Central Coast
Soldiers Point Families / holiday makers Boating enthusiasts
Retirees Fishing clubs / social groups of anglers
VFR Fishing enthusiasts
Anna Bay Families ‐ holiday makers Retirees ‐ off season
One Mile Couples ‐ short breaks and holiday Visiting friends and relatives (VFR)
Boat Harbour markets ‐ warmer months and weekends 4WD clubs and enthusiasts
Stockton Dunes International groups ‐ day visitors ‐ sand Back packers
dune activities Boating and fishing enthusiasts
Day trippers Surfers
Touring vans & motorhomes
Tilligerry Families / holiday makers Boating & fishing enthusiasts
Peninsula Retirees Day trippers from other parts of the LGA and
Hunter Region
Car Clubs
Raymond Terrace Highway travellers Sporting groups & sporting event attendees
Heatherbrae RAAF Small conference & meetings
Motto Farm Business and work related travellers ‐ VFR
Monday to Thursday nights, drawn from Overflow from Newcastle and Maitland cities
the western suburbs of Newcastle, the Event visitors for Dungog Shire
new industrial areas at the end of F3 Water skiers
Freeway (Beresfield ‐ Thornton) and the Touring vans & motorhomes
Williamtown and Tomago areas. Airport travellers (staying the night before
flying out of Newcastle airport)
.Overflow from coastal areas in peak times
Karuah Highway travellers (motels) Airport travellers
Retirees (caravan park) Fishing & Boating enthusiasts
Day trippers
VFR
Seaham Passing traffic ‐ enroute to Dungog Bird watchers
Water skiers Touring Vans & motorhomes
Hinton Day trips ‐ often visited in conjunction with
Morpeth
For the majority of market segments, Port Stephens draws primarily from the Sydney, Hunter and Central
Coast Regions.
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Port Stephens Tourism Plan ‐ Diagnostic Report
Table 4.13 Origin of Market Segments
Market Segment Primary Source Secondary Source
Family holiday market ‐ Sydney ‐ northern and north western Hunter, Central Coast
apartments & resorts suburbs
Family holiday market ‐ Sydney ‐ western and south western Central Coast
camping & caravans suburbs Central NSW ‐ Dubbo & surrounds
Hunter
Couples / short breaks Sydney Hunter, Central Coast
Interstate ‐ packages
Retirees / Grey Nomads Sydney Hunter, Regional NSW, Interstate ‐ long
Central Coast haul touring trips
Conferences & meetings Hunter Sydney, Central Coast
Coach tour groups Central Coast Sydney, Hunter, Lower North Coast
Water skiers, wake Lower Hunter ‐ primarily Newcastle Upper Hunter, Central Coast
boarders Occasionally ‐ Sydney & Taree
Anglers / Fishing Clubs Hunter Sydney, Central Coast
4WD Enthusiasts / Clubs Sydney ‐ western and south western Cental Coast, Upper Hunter
suburbs, Lower Hunter
Boating (power / cruising) Hunter Sydney, Central Coast
Sailing Hunter Sydney, Central Coast, Touring Yachts
Surfers Hunter Central Coast, Sydney, North Coast ‐ often
as part of touring surfing trip
Golfers Hunter Cental Coast, Sydney
Sport Hunter Sydney & Regional NSW
School Excursions Hunter
4.6.1 Domestic Holiday & Leisure Markets
Family Holiday Market
The domestic holiday market is the primary market for the Tomaree and Tilligerry Peninsulas and the
caravan parks at Karuah. Sydney is the main source of visitors, with Port Stephens primarily drawing from
the northern and north‐western suburbs for the more up‐market accommodation, and from the western
and south western suburbs for mid range accommodation and camping / caravans. The area is also
popular with holiday‐makers from the Central Coast and Hunter Valley, in particular with coal miners.
The area attracts some visitors from Central NSW, primarily from the Dubbo area and also from the
southern end of the New England ‐ North West region ‐ Liverpool Plains and Gunnedah area. The road
links to Central NSW (Golden Highway) and the NE‐NW Region (New England Highway and Thunderbolts
Way), provide the opportunity to build visitation from these areas.
Visitation from families with school aged children is concentrated in the school holidays, peaking over
Christmas. There is a high level of repeat visitation, with families booking from year to year. Over the past
decade, the length of stay has been decreasing, from 3 to 4 weeks down to 7 to 10 days.
Price, the age of the children and activities interested in tend to determine where people stay in the area.
Boating enthusiasts and people interested in fishing are more likely to stay around the foreshores of the
Bay, close to areas where they can launch their boats. Soldiers Point, Lemon Tree Passage and Karuah are
popular with the boating and fishing markets, particularly those with younger children who want to avoid
congestion in the Nelson ‐ Shoal ‐ Fingal Bay areas. People interested in surfing are more likely to stay at
One Mile and Anna Bay. The bay beaches are popular with families with pre‐school aged, with this market
often travelling in the shoulder season, particularly February, to take advantage of the shoulder season
pricing and packages.
Polarisation of the market is occurring. At one end there is a shift towards higher standard self contained
accommodation ‐ houses, apartments and cabins in caravan parks. At the other end of the market, there
has been strong increase in the number of families camping, both in caravan parks and along Stockton
Beach. Stockton Beach is attracting an increasing number of large social and family groups interested in
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Port Stephens Tourism Plan ‐ Diagnostic Report
4WD and using quad bikes. These groups, which are coming mainly out of the Hunter and the western and
south‐western suburbs of Sydney, are becoming an issue for the area.
There is also a growing trend for a number of families to holiday together (often sharing a house to spread
costs) and for families to be accompanied by grand parents. As such they are seeking larger properties
with 4‐5 bedrooms.
Short Breaks Family Market
This is primarily a week‐end market coming out of the Lower Hunter and Sydney regions. Travel is
concentrated in the warmer months, from October through to Easter. Travel is often impulsive with a very
short lead time, and is highly dependent on the weather and weather forecast for the weekend. This
market tends to stay in caravan parks, with cabins being popular.
Adult Couples ‐ Holiday and Short Break Markets
There is strong demand for up‐market accommodation over the Christmas ‐ New Year period and at Easter
from adult couples taking a short holiday ‐ generally 5‐7 days. The area also attracts the short‐break /
weekend escape markets and the romance markets, as well as groups of couples.
The Tomaree Peninsular (particularly the Nelson ‐ Shoal Bay area) is popular with this market, with the
market generally looking for quality accommodation, preferably with water views within walking distance
of restaurants, cafes etc.
This market has a relatively short booking lead time and will generally surf the web looking for deals.
Retiree Market
The retiree holiday market tends to visit outside of school holiday periods. This market includes both
destination based travellers coming to Port Stephens to fish, boat, play golf and/or just relax, and the
touring market, with Port Stephens being one a number of locations visited. In the past the Victorian
market was quite strong in winter, however this market has declined significantly in recent years.
The retiree market primarily travels as couples, couples with a friend or small groups of couples. For those
staying more than 1‐2 nights, self‐contained accommodation (apartments, caravan park cabins) is
preferred. The market is generally price conscious.
Visiting Friends & Relatives (VFR)
The VFR market is an important market for local businesses. While it is difficult to promote to this market,
initiatives that can be undertaken include:
Ensuring that activities and events in Port Stephens are included in the 'What's On' guides in the local
and regional media.
Placing articles about the different activities on offer in the LGA in the local and regional media in the
lead‐up to school holidays. Local papers often have a feature article and discount coupons.
Producing a 'holiday activities' guide that can be distributed locally ‐ in shopping centres, through
libraries, schools, pre‐schools etc.
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Port Stephens Tourism Plan ‐ Diagnostic Report
Car‐based Touring
The coastal areas of Port Stephens attract some touring travellers, primarily those on an extended trip
who have the time to turn off the Highway and come into the area and explore. These visitors generally
stay 1‐2 nights. It appears that the area is more likely to attract south‐bound travellers, who look to spend
a couple of days relaxing before heading on to Sydney. Caravan park cabins are very popular with this
market.
North‐bound travellers will often break their journey in Raymond Terrace or Karuah, either for a meal
break or to stay overnight if they have left Sydney late in the afternoon. North‐bound touring travellers
generally do not visit the coastal areas of the LGA, possibly due to the proximity of Port Stephens to
Sydney (visit another time for a weekend) and the distance off the Highway with the need to 'back track'
along the same road. Many travellers just starting their touring trip want to put distance between
themselves and home, with Forster‐Tuncurry ‐ Myall Lakes often seen as the 'starting place' for the
holiday.
Touring Caravans and Motorhomes
The touring campervan and motor home market is a relatively small market for Port Stephens. Most
caravans, campervans and motorhomes are self‐contained and travellers generally stay in a mix of
commercial parks and 'free' areas such as rest areas and car parks (particularly those with attractive
outlooks – riverside, parks etc). Caravan parks tend to be used when travellers are staying in an area for a
few nights and/or when they need to charge batteries, use a dump point and/or do laundry.
Port Stephens does not have a high profile amongst this market. This is partly due to its close proximity to
Sydney (too early to set up camp), and partly due to the lack of 'free' camping sites. The distance of the
coastal destinations off the Highway is also a deterrent. The touring market coming into the Tomaree and
Tilligerry peninsulas have generally made the decision to stay at least one night in the area, realising that
they are likely to have to stay in a commercial caravan park.
The coastal area is attracting an increasing number of international travellers (see Section 4.6.6) arriving in
rented campervans and motorhomes. These visitors have generally come via Newcastle and are following
the Pacific Coast Touring Route.
Raymond Terrace and Karuah are seeing an increase in the number of vans staying overnight, with these
vans coming in late and leaving early. There is also an occasional van at Seaham.
4.6.2 Business and Work‐Related Travel Markets
Business and work‐related travel markets are important mid‐week markets for accommodation in
Raymond Terrace.
The Raymond Terrace motels draw from:
Business travellers to the local area ‐ Raymond Terrace CBD and the Heatherbrae industrial estate.
Industrial and commercial areas of Tomago and Williamtown, with the RAAF base being a significant
generator of room nights.
Businesses and institutions in the Mayfield ‐ Jesmond ‐ Sandgate ‐ Hexham corridor, including
industrial and business parks, Mater Hospital, St Joseph's Home and the University.
Business parks at the end of the F3 Freeway in the Beresfield and Thornton areas.
Construction projects in the surrounding region with 'workers' looking for budget to mid‐range
accommodation with access to facilities.
Air travellers ‐ over‐nighting in Raymond Terrace before flying out from Newcastle Airport. (Note:
Karuah also attracts this market).
Raymond Terrace is currently benefiting from the accommodation shortage in Newcastle. Newcastle
properties are running at high occupancy rates which is enabling properties, particularly in the CBD, to
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Port Stephens Tourism Plan ‐ Diagnostic Report
charge premium rates. This has filtered through to the suburban motels, with the motels running at
reasonably strong occupancy rates with relatively high tariffs. For business and work‐related travellers
looking for mid‐range, reasonably priced accommodation the Raymond Terrace ‐ Motto Farm Motels are a
viable option.
The Raymond Terrace motels are dated, and their competitiveness will be eroded by new properties
coming into the market in the surrounding area. There are a number of accommodation properties
mooted for Newcastle with 4 properties likely to come on‐line in the CBD, with properties also under
construction in Mayfield and Wallsend, with a motel proposed at Stockton. There is also provision for a
business‐class hotel in the Newcastle Airport Business Park.
As an emerging regional centre, Raymond Terrace should be looking at options to encourage the
development of a business‐class hotel.
Consideration should to be given to producing a dining out and services guide for Raymond Terrace, with
this available from the accommodation properties and possibly at the Airport. It is a project that the
Business Association could take on. As most business travellers are travelling with internet access on via
telephone or lap top, consideration should also be given to having a Raymond Terrace website, with a
dining guide available on the site.
Business and work‐related travellers should also be viewed as a potential future holiday / leisure market
for the Tomaree and Tilligerry Peninsulas, with promotional material on display in the accommodation
properties.
Due to distance from the main employment centres, business and work‐related travel is only a minor
market for accommodation on the Tomaree and Tilligerry peninsulas. This is unlikely to change.
4.6.3 Conference and Meetings Market
When the first up‐market resort properties (Peppers and Horizons) opened in Port Stephens, the area
quickly developed a profile as a conference destination, proving very popular for corporate meetings out
Sydney and for small, high‐end conferences, such as professional associations. The Sir Francis Drake Motel
at Raymond Terrace also built conference and meeting facilities and was very successful in attracting mid‐
market conferences and meetings from the surrounding area.
Over the past 20 years the competitiveness of the area, particularly at the top end of the market, has been
eroded, firstly by the up‐market resort development in the Pokolbin area and more recently by the quality
hotel development in Newcastle. Newcastle City has established a Convention Bureau which has been
very successful at marketing the City as a conference and meetings destination.
Port Stephens is still attracting a range of smaller meetings, most of which are drawn from the surrounding
area. Given the conference and meeting facilities available in the LGA, the area is under‐performing in this
market.
The conference and meetings market is discussed in more detail in Chapter 7.
4.6.4 Group and Volume Markets
Coach Tour Groups
Coach tour groups are a mid‐week market for Port Stephens, with the area attracting both day and
overnight tour groups. These groups are a low yield volume market. Coach tour groups can be used by
accommodation properties to reduce seasonality and are also a reasonably good market for clubs and as a
'filler' for the marine tour operators.
Most of the day tour groups are from the surrounding region and include tours organised by Licensed
Clubs, groups such as Probus and View Clubs, groups from nursing homes and retirement villages and
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Port Stephens Tourism Plan ‐ Diagnostic Report
groups with special needs / disabilities. Some of these groups just picnic and sight‐see in the area, while
some include a visit to Fighter World, and/or a dolphin or whale tour. Some groups take the ferry across
to Tea Gardens where they are met by the coach.
Overnight groups include both charter groups (ie the coach is charted by a club or organisation) and tours
organised by coach companies. This market generally travels mid‐week outside of school holiday periods.
Tours take a number of forms ‐ they can be destination based (eg 3‐5 days in Port Stephens), inclusion of
Port Stephens as part of a longer tour and hub‐and‐spoke style tours where the group stays in a central
location and undertakes day tours to different locations. A number of coach companies in metropolitan
Sydney, on the Central Coast and in regional NSW regularly organise tours. There are also a number of
companies that organise and promote tours to the seniors market.
In the past Newcastle was popular for hub and spoke style tours, however high accommodation occupancy
rates and tariffs has displaced this market. This market now seems to be focussed further north in the
Forster ‐ Tuncurry area. Raymond Terrace would be an ideal location for hub and spoke style tours, with
the town having suitable accommodation, licensed clubs and ready access to a variety of destinations ‐
Nelson Bay, Newcastle, Barrington Ranges, Pokolbin vineyards and Maitland‐Morpeth.
Heatherbrae, and to a less extent Karuah, are both popular meal stops for the long haul coach market,
with coach tour groups occasionally over‐nighting in the Raymond Terrace area. Karuah also attracts the
occasional coach tour group, generally as part of a combined boat‐coach tour. One of the ferries /charter
boats picks up the coach tour passengers at Karuah and takes them across to Tea Gardens, or sometimes
to one of the jetties on the southern shore of Port Stephens (Lemon Tree, Soldiers Point or Nelson Bay)
where they are met by the coach.
Within the coach tour market, the main opportunities are:
Direct marketing to organisations and groups (eg licensed clubs, retirement homes, Councils with
community buses, Probus Clubs) within the surrounding region that have access to buses and/or are
likely to charter coaches, promoting Port Stephens for day trips and short tours.
Target the coach operators that are already bringing tours into the surrounding region seeking to
incorporate localities within Port Stephens into their tour itineraries.
Direct marketing Port Stephens to coach companies in Sydney, the surrounding region and in regional
NSW that organise tour trips.
Working with the coach companies from the surrounding region to organise tours to relevant events
held in Port Stephens.
Encourage a motel in the Raymond Terrace area to investigate the possibility of working with a coach
company or one of the tour operators who target the seniors market, to establish a 5‐7 day program
using Raymond Terrace as a base.
Sports Market
Port Stephens Council has in place a Sports Tourism Marketing Plan. Council has been targeting non‐elite
sports that have high participation rates. The LGA has an extensive range of quality sporting facilities with
the area having the capacity to cater for:
Major regional and State carnivals for field sports ‐ primarily rugby and soccer
Rowing, power‐boating, water skiing and wakeboarding competitions on the Hunter and Williams
Rivers at Raymond Terrace
Sailing (smaller classes) at Grahamstown Dam as well as sailing on the Bay.
Horse sports ‐ in the Raymond Terrace area.
Marine sports ‐ Port Stephens
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Port Stephens Tourism Plan ‐ Diagnostic Report
Golf tournaments
Bowls tournaments ‐ Raymond Terrace, Tomaree and Tillegerry Peninsulas
Tennis tournaments ‐ Raymond Terrace
Surf events ‐ surfing, paddling, surf life saving
There is also potential to hold long distance and endurance events, such as marathons.
Opportunities to build sports‐related tourism include:
Growing existing sporting events.
Working with local sporting clubs and groups to bid to host carnivals and sports development
programs.
Targeting sporting associations (regional, state and national) and the Hunter Academy of Sport to hold
carnivals, sports development programs, camps and clinics in Port Stephens.
Developing tournament / competition circuits to capitalise on other events in the region. For
example, linking the main golf events in the sub‐region, to encourage competitors to stay in the region
and compete in a number of events.
Packaging sporting activities for promotion to external clubs. Golf and bowls are ideal for packaging,
however their may be opportunities for other sports.
Targeting 'foot loose' sporting events that could be hosted in Port Stephens ‐ these could include
triathlons, marathons, long distance cycle races etc.
Target the pre‐trip training camp for sporting teams flying out of Newcastle Airport.
The sporting event market is discussed in Chapter 7.
School Excursions
The school excursion market is a small market for Port Stephens, with most of the attractions and activities
available in the area not directly relevant to the curriculum.
This will change as the Murrook Cultural Centre develops, with the Centre having the potential to become
popular with the school market. The Tailor‐Made Barramundi Farm will also be ideal for the school
excursion market.
The school excursion market is becoming increasing difficult to attract. Over the past decade the number
of excursions undertaken has declined. The decline is attributed to a combination of factors including the
requirement for teachers to prepare and submit risk assessments for every excursion, rising costs with
excursions becoming too expensive, increased teacher work‐loads and increasing pressure for secondary
students not to miss classes.
The challenge with this market lies in packaging and selling 'excursion programs'. The school market is
very time consuming to target. Schools are 'bombarded' with fliers and promotional material from areas
trying to attract excursions. The most effective way of attracting the market is to visit the schools and talk
to the teachers. The number of sales calls that can be done in a day is limited. In addition, teachers need
to visit the area prior to the excursion (Departmental policy) and prepare risk assessments.
Given the level of competition for the school excursion market, Port Stephens would need to tailor its
promotions to the specific needs of this market including:
Ensuring that the attractions and activities that are promoted meet curriculum needs and are pitched
at the right level for school students.
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Port Stephens Tourism Plan ‐ Diagnostic Report
Making it 'easier' for the teachers, with operators preparing a risk assessment to Departmental
standards
Hosting the pre‐excursion trips made by teachers to the area.
Having a page on the Port Stephens Tourism website designed for the education market.
Car Clubs
Car clubs are currently a very small market for Port Stephens LGA. Lemon Tree Passage hosts the Tilligerry
Motorama which brings car clubs into the area.
The car club market is potentially large. There are over 3,000 registered car clubs in Australia, with clubs
including vintage, veteran, classic and custom car clubs, model based clubs (eg Austin Club), locality based
clubs and activity based clubs. In NSW alone there are 216 clubs (26,000) members of the Australian
Historic Motor Federation, and 234 member clubs of the Classic Car Club of Australia.
Car Clubs have a strong social focus, with people essentially getting together to have a good time with
their cars. Activities undertaken by clubs include:
Day trips and tours
Rallies
Shine ‘ Show
Expos
Swap Meets
Events – hire a venue and organises races, skills competitions etc
Scavenger hunts and navigational challenges
Sub‐groups within the clubs also organise activities amongst themselves; for example, a group of 8‐10 may
organise a weekend away, which is independent of the club’s official trip program, but is still covered by
the club’s insurance. Most clubs set up a tour subcommittee to develop the tour program for the year.
Destinations are generally determined 12 to 18 months in advance.
Tours are typically designed in two main formats:
Meet at a specified location and then tour as a group to the destination. The tour to and from the
destination forms part of the organised trip itinerary.
Meet at the destination, with activities and trips organised from this base.
Within Port Stephens LGA, Raymond Terrace is an ideal location for the latter type of trip. Raymond
Terrace as a base, is easy to access. The network of rural roads in the western area of the Shire, linking
through to Maitland, Dungog and Stroud‐Gloucester are ideal for car club activities. These roads have low
traffic volumes and minimal truck traffic and traverse very scenically attractive country‐side. There are a
number of destinations and attractions that will also appeal to this market ‐ Morpeth, Victoria Hotel at
Hinton, Paterson, wineries and Hotel at Gresford, the picnic area and historic pub at Clarence Town and
the lagoon at Seaham. In addition, there is the opportunity to take a run to Nelson Bay, Newcastle and/or
the Pokolbin area.
4.6.5 Special Interest & Activity Based Markets
Port Stephens attracts a range of overnight visitors and day trippers who come into the area to pursue a
specific interest of undertake an activity. The larger of these visitor markets include:
Water skiers and wake boarders
Anglers ‐ recreation, sports and game fishing
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Port Stephens Tourism Plan ‐ Diagnostic Report
Boating enthusiasts
4WD clubs and enthusiasts
Surfers
Golfers
Water Skiers & Wake Boarders
The water skiing and wake boarding enthusiasts are a weekend market for Raymond Terrace and to a
lesser extent Seaham, with most visitors being day‐trippers.
Until 2006, the Williams River was the focal point for water skiing and wake boarding in the Lower Hunter
Region, with activities undertaken on the River at Clarence Town, Seaham and Raymond Terrace. The area
attracted skiers mainly from the Hunter Valley and Central Coast, with the occasional ski boat from Sydney
and the Taree area. As a result of bank erosion, speed limits and no‐wake zones have been introduced at
various locations along the River. This has focused tow activities at Raymond Terrace. Congestion is
emerging as a significant issue. The Waterways Authority has advised that it would like to see power
boating and tow activities relocated elsewhere, in particular wake boarding which the Authority does not
consider sustainable given the condition of the river banks. If Tillegra Dam proceeds, the Waterways
Authority has indicated it would be ideal for the relocation of these activities off the Williams River.
Competitive water skiing and water ski training on the Williams River have already been scaled back. A
tournament training site has been developed at Myuna Bay on Lake Macquarie, with most training
programs now undertaken at this site. Water ski clubs in the area tend to use Myuna Bay more‐so than
the Williams River.
Given the above factors, the opportunity to build this market appears limited. In the short to medium
terms, there may be potential to host a high profile ski / wake board event or target State or National
titles.
Fishing
Port Stephens is an established fishing destination, which is widely known amongst both dedicated anglers
and the recreational fishing market. The area offers a range of fishing environments and experiences ‐
blue water game fishing, reef, bay, estuary, river, rock and beach fishing, and has a well developed charter
boat and charter fishing sector. Port Stephens has two major fishing tournaments each year as well as a
number of smaller competitions.
The fishing markets attracted to the area include:
Hard‐core, dedicated anglers ‐ either bringing their own boats to the area or going out on the game
and sports fishing charter boats.
Tournament competitors ‐ coming into Port Stephens to compete.
Fishing clubs ‐ most fishing clubs have a program of social and competitive fishing trips, most of which
are held on weekends. While traditionally these have been 'male only' trips, clubs have begun to
include a number of family trips as part of their annual calendar. Most family trips involve camping.
Due to their proximity to boat ramps, Soldiers Point and Halifax Caravan Parks are popular with the
fishing club market.
Social groups ‐ groups of friends (generally fishing enthusiasts) who go away together on fishing trips.
The priorities are generally fishing and drinking. Trips are flexible ‐ they may charter a fishing boat,
take their own boats or go beach fishing. Stockton Beach is popular with groups looking to camp, fish
off the beach and party.
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Families ‐ visiting the area to fish, or participating in fishing as one of the activities undertaken while in
the area. Some bring boats, with others go rock and/or beach fishing. The emphasis is more on
spending time together and having fun rather than catching a fish.
Retirees ‐ often a couple or a few 'mates' who put the boat in for a fish.
The boat ramps at Karuah and Lemon Tree Passage are popular with retirees and the recreational fishing
market from the Hunter region as they are quicker to access than the Tomaree Peninsula ramps and are
generally less congested. With the improvements to the Karuah ramp, there is opportunity to grow this
market and take pressure off the ramps on the Tomaree Peninsula.
The National Recreational and Indigenous Fishing Survey undertaken in 2001 estimated that there were
just under 1 million active anglers in NSW, with almost half (48.3%) residing in the Sydney region. The
Hunter ranked next with 13.8% of anglers (131,350) followed by the Mid North Coast with 7.5% (74,500).
Around 5.6% of anglers in NSW belonged to fishing clubs, with around 5% of anglers participating regularly
in tournaments. There is opportunity to build the fishing market to the area.
4WD
The Stockton Sand Dunes are a popular attraction for 4WD enthusiasts, with the dunes known nationally
amongst the 4WD community. The 4WD markets attracted to the area include:
Hard core 4 WD enthusiasts – looking for 'excitement' on the dunes and beach.
4WD clubs – with Stockton popular for camping trips and also to 'teach' beach and dune driving, often
as a precursor to a long haul trip through Central Australia or to Fraser Island.
Beginners ‐ Owners of 4WD and 'soft‐roaders' who want to try their vehicle off‐road and experience
the 'freedom' of driving along a beach.
Outdoor recreationalists ‐ using their vehicle to access the beach, for fishing, surfing etc. There is an
increasing number of visitors bring quad bikes into the area.
There are a number of 4WD tour and Tag‐Along operators servicing the dunes with these operators
primarily targeting the beginners market. These operators promote 'responsible' use of the area.
The 4WD clubs also promote responsible use of the area. Most clubs have a 'tread lightly' policy and are
aware that continued access to the area is largely dependent on behaviour and the impact on the
environment. There are eighty 4WD Clubs in NSW registered with 4WD NSW. Of these, 36 clubs are
Sydney‐based, with 12 clubs in the Hunter, 4 on the Central Coast and 1 in Tamworth. Club membership is
dominated by families, followed by 'empty nesters'.
Most Clubs organise at least one trip per month, with the larger clubs offering at least one trip per week.
The trip calendar is generally set 12‐18 months ahead. In addition, Club members can organise trips
amongst themselves, with these trips then registered with the Club for insurance purposes. Trip programs
typically include a mix of extended trips (eg Simpson Desert), shorter trips (up to 14 days), weekend/short
breaks (2‐4 days) and day trips, with trips graded in terms of difficulty. The number of vehicles
participating on a trip is usually capped, with 6‐10 vehicles for a difficult trip with 'tight' trails and up to 30
vehicles for 'easy' trips. Camping is the preferred form of accommodation, although not the only form of
accommodation used.
The Hunter Region is popular for 4WD trips, with Clubs in Sydney, Central Coast and Hunter Region
organising both day trips and 2‐3 day touring trips to the Region. In addition to the Stockton dunes, the
other high profile 4WD areas in the area are:
Barrington Tops ‐ with the Barrington Trail considered a 'must do' trail.
Chichester State Forest
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Port Stephens Tourism Plan ‐ Diagnostic Report
Massey Creek State Forest ‐ the Newcastle 4WD Club has a 4WD park in the Forest
Watagans ‐ National Park and surrounding State Forests
While there is potential to grow the 4WD market, the future of 4 wheel driving in the area needs to be
determined before proceeding. If access is to be limited, the priority should be given to licensed 4WD and
tag‐along tour operators, followed by the 4WD clubs.
Boating
Boating is one of the main activities undertaken in Port Stephens LGA, with the area being popular for a
range of recreational and competitive activities. Recreational boating accounts for around 90% of the
market.
The Port offers a spectacularly attractive safe boating environment with good support infrastructure.
Boating is also popular on the Williams and Hunter Rivers at Raymond Terrace, with sailing undertaken
both in the Port and on the Grahamstown Dam (small classes).
Boating markets attracted to Port Stephens LGA include:
Marina markets ‐ boat that are moored permanently at marinas ‐ many of these boats are owned by
residents from outside of the LGA ‐ primarily from the Hunter, Central Coast and Sydney. Owners,
often accompanied by families and friends are a regular market for the area.
Cruising market ‐ ocean‐going yachts and cruisers that call into Port Stephens as part of tour along the
east coast. This is a transient market that uses temporary marina berths and moorings. The 'long
term' live‐aboard market is a generally a low yield market preferring to stay on their boat and
occasionally dine out and/or visit a club or pub. In contrast the higher‐end crewed boats tend to be
more 'party boats' for the owner and their friends and relatives, and as such can make a significant
contribution to the local economy, particularly if guests stay in onshore accommodation and just go
out on the boat during the day.
Tournament market ‐ boats coming into Port Stephens to compete in events such as 'Sail Port
Stephens' and the trailer boat fishing competition.
Recreational boating ‐ trailer boats ‐ this is the bulk of the boating market and includes day trippers
and holiday‐makers who launch their boats at the various ramps throughout the LGA. Activities
undertaken by this market include cruising / sight seeing, tow activities (biscuits, water skiing, wake
boarding etc) and fishing.
Sailing ‐ both competitive and recreational. The Grahamstown Sailing & Aquatic Club operates sailing
on the Grahamstown Dam. The Club is primarily involved in a 'Sailability' Program which provides an
introduction to sailing for people of all abilities, specialising in sailing for the disabled. From
Wednesday to Friday the Club runs sailing classes for schools and special needs groups, with sailing
competitions on Saturday mornings. The Club also runs sailing programs during school holidays.
Visitors can bring their own sailing boat to the Dam, however the boats have to be inspected by Club
Officials before they can be launched.
The up‐grading of boat ramps throughout the LGA will improve safety and reduce congestion. In peak
times, the boat ramps on the Tomaree Peninsula become very congested with holiday makers competing
with locals and day trippers for access and parking. A considerable proportion of day trippers come from
the Hunter and Central Coast areas and, with the upgrading of the Karuah ramp and improvements in
facilities at Lemon Tree Passage, there is potential to encourage day trippers to use these ramps (which
are quicker to access), to take pressure off the Tomaree Peninsula ramps.
There is potential to develop a boat 'touring' route around the bay, encouraging boaters to call in at
various locations ‐ Soldiers Point, Lemon Tree Passage, Karuah etc. There is also potential to promote the
Williams and Hunter Rivers to holiday makers with trailer boats who are staying in the coastal
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Port Stephens Tourism Plan ‐ Diagnostic Report
destinations, to encourage them to take the boat across to Raymond Terrace for the day and explore the
Williams and Hunter Rivers.
Surfing
Port Stephens has number of surf beaches and breaks (Zenith, Box Beach, Fly Roads, Samurai, One Mile,
Birubi and Stockton) that are well known amongst the surfing community. These breaks are featured in
directories such as Wave‐Finder. While the area primarily attracts surfers from the local area and Lower
Hunter, it does draw from further afield if the surf is 'pumping'. Surf tour companies that operate along
the NSW coast occasionally surf the Port Stephens breaks, generally on route north from Newcastle.
Tourism NSW has recently released its 'Surf Tourism Action Plan' for NSW. The Plan aims to consolidate
and grow surf travel, surf events and surf based activities (eg learn to surf schools) over the next 3 years.
The Plan has identified an evolving 'surf route' that links Newcastle, Port Macquarie, Coffs Harbour and
Byron Bay, and is looking to 'formalise' this route and position it as a 'must‐do' route for hard core and
recreational surfers, targeting both the domestic and international markets. Port Stephens should seek to
be included on this route, with the Port Stephens 'product' incorporating the variety of surfing breaks, the
Stockton Dune adventure‐based activities and the back‐packer accommodation in the Anna Bay ‐ One Mile
Beach area.
The Action Plan also looks to build on the Merewether Beach National Surf Reserve and the Surfest
tournament in Newcastle and the Australian Surfing Festival In Port Macquarie. Advice should be sought
on whether any of the surf breaks in Port Stephens are possible candidates for inclusion in a surf reserve.
Consideration should also be given to how to promote Port Stephens at surfing tournaments and carnivals
in the surrounding regions. Events Port Stephens is looking at options for a surf event in the area and,
given the interest by TNSW in this market, it may be an opportune time to proceed with this.
TNSW has launched 'www.visitnsw.com/surf as a guide to surfing destinations in NSW. Fingal Beach is the
only beach in Port Stephens featured on the site. Rather than positioning the Beach for dedicated surfers,
it is promoted as a family beach and 'nipper haven', both of which are instant 'turn‐offs' to the surfing
market. This needs to be addressed, with the information 'revamped' to pitch the surf breaks in the area
to the dedicated surfing market, as well as provide information on the accommodation in the area and
adventure‐based tour activities.
Golf
Port Stephens is well known amongst golfers for its four quality courses (Nelson Bay, Pacific Dunes,
Horizons and Newcastle), with golfers coming into the LGA to play and compete in tournaments.
Events
The events held in Port Stephens bring more than 50,000 visitors per annum into the LGA. Events are
discussed in Chapter 8.
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Port Stephens Tourism Plan ‐ Diagnostic Report
4.6.6 International
The number of international visitors staying overnight in Port Stephens is very low, estimated at around
27,000 visitors per annum (4.2% of visitors who stay one or more nights in the LGA). The market includes:
FIT self drive ‐ visitors who have hired cars / campervans and are exploring the region. There is a
small, but increasing number of international visitors who are following the Pacific Coast Touring
Route. The majority of these visitors are from the UK and Europe.
Back‐packers ‐ generally those who have acquired a car. Most have come out of Newcastle and are
travelling north. The majority of back‐packer are from the UK and Europe.
Groups ‐ a couple of the accommodation properties have built a small Korean market that stays
overnight in the area. With the travel scandals in Korea followed by the GFC, this market has virtually
collapsed.
VFR
Business travel ‐ associated with the Defence and aerospace industries.
Port Stephens has been successful in building the Asian day trip group markets. In the mid 1990's the
Japanese market dominated, with this then replaced by the Korean market. There was also growth in
groups coming out of Singapore and, to a lesser extent, Malaysia and Taiwan. The scandal in Korea
coupled with the SARS impacted significantly on the Asian market. The growth in low cost air services in
Asia (Air Asia) has also significantly impacted on travel patterns.
China is currently the main growth market for the day‐trip groups. There has also been growth in the
Indian market, however this market is being impacted on by the negative publicity generated in India by
the recent spate of attacks on Indian students.
4.7 Directions Forward
Domestic Market
Continue to focus on Sydney as the main source market.
Explore options for increasing visitation form the intrastate market that is readily accessible to Port
Stephens ‐ Central Coast, Hunter Region, as well as Central NSW (Dubbo and Mudgee areas),
Gunnedah Basin, Tamworth and Armidale area. Where relevant, work with Thunderbolts Way and
Golden Highway committees.
Establish a marketing alliance with the Newcastle Convention Bureau to grow business event tourism
to the sub‐region.
Capitalise on the opportunities afforded by Newcastle Airport for access to new markets ‐ aligning
interstate marketing to the routes being opened up by Newcastle and also positioning the area to
attract national conferences and meetings and sporting events.
Build the special interest and activity based markets, to reduce the dependence on the seasonal
holiday‐maker.
Continue to develop sporting and event‐based markets.
Work with the smaller localities to develop day trip markets from with Port Stephens and the
surrounding region.
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Port Stephens Tourism Plan ‐ Diagnostic Report
International Market
Market to ethnic communities within Australia (eg Indian and Chinese communities) to tap into the
international VFR market.
Continue to develop international markets to support those operators with a strong international
business base.
Align international marketing to international routes being opened up by Newcastle Airport.
Continue to support the Pacific Coast Touring Route.
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5. ATTRACTION & ACTIVITY BASE
The attraction base and the activities that can be undertaken form the backbone of the tourism industry.
Attractions and activities have a major influence on trip behaviour, providing a reason for visiting an area
and/or in encouraging people to stay longer. Attractions can be broadly classified as:
Iconic Attractions ‐ High profile attractions and activities that draw visitors into the area, including
attractions/activities the tourist makes the purpose of their trip (anchors) and attractions/activities
that tourists perceive that they 'must see' when in the area.
Local Attractions ‐ These are the 'filler' attractions that people may visit or participate in while they
are in the area. They play no or a minimal role in the decision to visit the area.
The propensity to visit attractions depends on the type and purpose of the trip. Through traffic (transit
market), particularly repeat visitors, have a lower propensity to visit attractions than the touring and
destination markets. The transit market generally has a limited time‐frame and tends to 'program' visits to
attractions into their trip itinerary. They are more likely to visit the higher profile attractions or attractions
that they have a specific interest in. These travellers are less likely to deviate from their route. For this
market, the attractions in Port Stephens are competing with other locations within the North Coast and
Hunter Regions and along the Pacific Highway corridor. A decision to visit will come down to whether the
traveller perceives the attractions / activities offered by Port Stephens are sufficiently ‘unique’ or
'superior' to warrant the 100km round‐trip off the Highway. The decision on whether or not to visit the
coastal areas of Port Stephens is likely to be made at the trip planning stage – indicating the importance of
a motivational website.
Touring travellers generally allow more time to explore an area and are interested in the range of
attractions and activities on offer. This market has a stronger likelihood of setting up a 'base' to explore
the surrounding area.
The coach tour and school excursion markets have a very high propensity to visit attractions. The
attractions are however incorporated into the trip itinerary at the trip planning stage, with the itinerary
being relatively inflexible. There is no 'impulse' visitation to local attractions.
The propensity of destination‐based visitors to visit attractions depends primarily on their reason for
visiting the area and the amount of 'free' time that they have and the weather conditions they are
experiencing. Business travellers, for example, are less likely to visit attractions than holiday‐markets and
people visiting friends and relatives (VFR). Cost will also be an issue. As one indoor attraction
commented, ’sunshine is my main competitor, when it is cloudy or wet, my numbers increase’.
5.1 Regional Attractions – An Overview
The attraction and activity base in Port Stephens needs to be considered in the context of the attraction
base of the surrounding region. In particular, how the products, activities and experiences offered in Port
Stephens:
Complement and strengthen other attractions in the region.
Compare to other parts of the region ‐ are they competitive.
Differentiates the LGA from other parts of the region.
North Coast
The higher profile attractions within the North Coast Region, and the activities and images strongly
associated with the Region include:
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Port Stephens Tourism Plan ‐ Diagnostic Report
Attractions
Beaches & waterways
National Parks
Rivers & rural hinterlands
Activities:
Beach activities
Surfing
Fishing
Boating
Touring / exploring
Images:
Beaches, headlands, spectacular coastal scenery
National Parks
Marinas, yachts, boats
Soft adventure activities – water and land based
Marine animals – corals, fish, whales / scuba divers / snorkelling
Sunrise at the beach
Alfresco dining / sea food / cocktails by the beach
Resorts – coastal living
Wildlife – typically koalas
Shopping – boutiques & lifestyle
Visitation within the North Coast Region is strongly oriented towards coastal destinations with the beaches
and the waterways being the main attractions. Many of the coastal activities and experiences offered by
Port Stephens are available in other coastal localities. Touring and sight‐seeing are popular, with trips to
other coastal towns and villages, into the hinterland areas and to National Parks. Port Stephens does not
have the depth of National Park, rural and hinterland product offered by the other LGA’s within the North
Coast region.
Port Stephens’ main points of difference are:
Stockton Sand Dunes – and the activities that can be undertake on the dunes. The quad bike tours
have a very high profile in the market place.
Port Stephens – shear size and beauty of the waterway (Great Lakes shares the waterway).
'Dolphin Capital of Australia ‐ resident dolphin pod / dolphin watching. (also promoted by Great
Lakes, further north Yamba and Iluka promote their resident dolphin pod).
Hunter
The Hunter Region is very strongly associated with wine, with vineyards, wineries and wining and dining
dominating the promotional material. Other attractions and images that are identified with the Region
include:
Barrington Tops
Newcastle / Hunter Foreshore and Newcastle Coast / Nobbys
Fine dining / fireside dining
Fresh produce / harvest produce
Rural scenery / horse‐riding
Heritage – often Morpeth or Maitland
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Port Stephens Tourism Plan ‐ Diagnostic Report
Port Stephens complements rather than duplicates the product base of the Hunter ‐ offering pristine
waterways and a range of soft adventure and water‐based activities.
5.2 Attraction & Activity Base of Port Stephens
Existing Attractions
The main attraction of Port Stephens is the spectacular bay and coastal scenery – the ‘Blue Water
Paradise’ ‐ the white sandy beaches and the aqua‐blue, crystal clear waters. Port Stephens is
approximately 2.5 times the size of Sydney Harbour, extending from the entrance at Tomaree, 24
kilometres inland to the mouth of the Karuah River.
Consumers primarily perceive the Tomaree Peninsula to be 'Port Stephens' with the area known for its
beaches, marinas, bottle‐nosed dolphins, fishing and sand dunes. The Tomaree Peninsula has well‐
developed marine cruise and soft adventure‐based tour sectors that provide access to the natural
environment.
Consumer awareness of the Tilligerry Peninsula is significantly lower, with koalas being the main attraction
associated with this area. Karuah is known for its oysters. Raymond Terrace is not associated with any
particular attraction or activity, being known primarily because of its location on the Highway.
The attractions and activities available in the Port Stephens are summarised in the following Tables.
Table 5.1 Main Attractions by Locality
Locality Attractions
Port Stephens Scenery ‐ beauty of the Bay / blue clear waters.
(waterbody) Port Stephens – Great Lakes Marine Park
Cruise & Charter Operators
Ferry to Tea Gardens
Marine Life – Dolphin, Whales, Turtles
Off Shore Islands / Gould’s Petrel
Nelson Bay – Shoal Bay – Tomaree National Park – Tomaree Lookout, Walking Tracks, Heritage
Corlette Bay Beaches – Sandy Point, Bagnalls, Dutchman’s Bay, Nelson Bay, Little Beach, Shoal
Bay
Ocean Beaches – Zenith, Wreck, Box, Fly Rods
Inner Light House Cottage & Tea Rooms
Shopping – Nelson Bay, Shoal Bay, Salamander Bay
Marinas – d’Albora Nelson Bay, Anchorage Corlette
Native Flora Gardens Fly Point
Gan Gan Look Out
Toboggan Hill Park
Community Arts Centre
Fingal Bay Fingal Beach
Tomaree National Park
Fingal Island
Salamander Bay – Soldiers Bay Beaches – Sunset, Wanda,
Point Soldiers Point Marina
Holberts Oyster Farm
Anna Bay – One Mile – Boat Stockton Sand Dunes / Worimi Conservation Lands – Sygna Shipwreck
Harbour Ocean Beaches – Samurai, One Mile, Birubi, Stockton
Tomaree National Park
Boat Harbour
David Grahams Golf Complex
Sahara Horse Trails
Bobs Farm Wonganella Winery
Murray’s Brewery and Port Stephens Winery
Australian Shark & Ray Centre
Farm Gate produce outlets
Nelson Bay Go‐Karts
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Port Stephens Tourism Plan ‐ Diagnostic Report
Salt Ash Dizzyland
Oakvale Farm & Fauna World
Medowie Medowie Macadamias
Farm gate produce outlets
Tilligerry Peninsula Tilligerry Habitat Centre – Koalas
Tanilba House
Lemon Tree Passage Marina
Lemon Tree Passage Lookout
Mangrove Board Walk & Tilligerry Koala Walk
Williamtown Fighter World Museum / RAAF Base
Murrook Cultural Centre / Djapa Bush Tucker
Monarch Historical Museum
Raymond Terrace – Grahamtown Dam
Heatherbrae – Tomago Shopping – sub regional centre
Riverside Park / Roalyn Park
Hunter Region Botanic Gardens
Port Stephens Art Gallery (Council Chambers)
Slab Cottage Museum
Tomago House & Chapel
Karuah Oyster Farms – Oyster sales
Karuah River
Seaham Seaham Swamp Nature Reserve, Bird Hide, Seaham Park, Tom's Cottage
Water Bird Hot Spot
Williams River
Hinton Historic Pub
Riverside Park & Jetty
Historic Cemetery
Historic oval
Table 5.2 Activities that can be undertaken in Part Stephens
Activity Location / Product / Service
Whale & Dolphin Watching 7 cruise operators
Surfing Ocean Beaches
Two surf schools / board hire
Boating Port Stephens, Karuah River, Ocean
Boat hires & charters
Marinas
Raymond Terrace Hunter & William Rivers
Jet Skis / Jet Boats Jet Boat Operator
Jet Ski Hire
Sailing Port Stephens
Grahamtown Dam
Fishing Game, Sports, Boat, Reef, Estuarine, Rock, Shore
Fishing Charters, Guides & Tuition
Diving Marine Park
Dive Operators – Pro Dive, Feet First Dive
Parasailing / Wind Sports Parasailing
Wind Surfing, Wave Surfing, Kite Boarding
Water skiing / Wakeboard Williams / Hunter Rivers
Kayaking Port Stephens – sea kayaking
Sand Boarding Stockton Sand Dunes – Tours
4WD Tours Stockton Beach & Dunes
Escorted, Tag‐a‐Long, Safaris
4WD – FIT Stockton Beach & Sand Dunes, Karuah State Forest
Quad Bikes Stockton Sand Dunes ‐ FIT
Tours
Horse Riding Stockton Sand Dunes – Sahara Trails, Rambling Sands
Camel Rides Oakfield Ranch
Go‐Karting Port Stephens Go‐Karts
Skirmish Laser Skirmish
Cycling Cycle ways / Bicycle hire
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Golf Nelson Bay Golf Club, Le Meilleur Horizons, Pacific Dunes, Newcastle
Lemon Tree Passage, Raymond Terrace
David Graham’s Golf Complex
Bowls Nelson Bay, Soldiers Point, Lemon Tree Passage, Raymond Terrace, Fingal Bay
Bowling Salamander Super Strike, Raymond Terrace
Walking Trails Tomaree Headland
Tilligerry Habitat, Tilligerry Koala Walk, Mangrove Board Walk
Food & Wine Brewery, Wineries (3)
Oysters – Salamander Bay & Karuah
Medowie Macadamias
Farm Gate outlets ‐ mushrooms, figs, avocado, fruit & vegetables
Farm Gate Outlets – Bobs Farm, Salt Ash, Medowie
Koala Viewing Oakvale Farm, Tilligerry Habitat Centre, Tilligerry Koala Walk
Pampering Spa & beauty treatments
New Attractions / Changes to Existing Attractions
New attractions being developed or proposed for Port Stephens include:
Tailor Made Fish Farms ‐ Tailor Made Fish Farms is a commercial aquaculture enterprise located near
the Australian Shark and Ray Centre at Bob's Farm. Tailor Made specialises in Barramundi farming and
has developed an integrated farming system which incorporates hydroponic vegetable crops as a by‐
product. The Farm is operational and supplies fish to the Sydney restaurant market. The operator is
in the process of building a visitor ‐ interpretative centre and will be conducting farm tours. The Farm
will be open to the public, and will be specifically targeting groups and school excursions. A retired
teacher has been employed to develop and service the education market. Fresh fish will be available
for sale at the visitors centre, with the centre also having a small eatery specialising in fish and chips.
The Farm is expected to open to the public in early 2010. This is expected to be a quality attraction
for the area.
Murrook Cultural Centre ‐ At present, the Murrook Cultural Centres offers indigenous cultural
activities for pre‐booked groups. The Centre has found it difficult to accommodate FIT visitors as it
does not always have the staff on‐site to demonstrate spear and boomerang throwing. The Centre is
considering the feasibility of having staff with these skills employed on weekends, to provide activities
for the day trip and visitor markets. Murrook is proposing to introduce an entertainment and events
program. The gardens surrounding the Centre are also to be developed as an attraction and will
feature bush tucker and healing plants. The on‐going development of the Centre is subject to funding.
Worimi Sand Dune Tours ‐ the Worimi Land Council owns part of the high dune area at Stockton
Beach. The entrance to this area is very close to Murrook. The Worimi Land Council has established a
company to operate the Sand Dune Tours, with the company to operate out of Murrook (separate
shed adjacent to the café). The Tour company has acquired a Hummer for 4WD tours and quad bikes.
A quad bike sand dune tour program is being developed, with the tour to incorporate an interpretive
tour with talks at key sites followed by 'free riding' on the dunes before returning to Murrook. The
tour company is proposing to target the cruise ship market out of Newcastle, picking up guests in the
Hummer and bringing them to Murrook. While Murrook and the Sand Dune Tours are separate
businesses, they need to be positioned as an integrated product in the marketplace.
Cultural / Arts Trail ‐ Council's Cultural Officer is exploring options to develop a cultural / arts trail in
the LGA.
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5.3 Issues
The main issues with the attraction sector are:
Poor presentation of key attractions.
National Park / State Conservation Area product limited and not well presented.
The future of the tour sector.
Imbalance between commercial and 'free' products and activities and limited development and
management of non‐commercial assets and activities.
Standard of the commercial attractions.
Directions forward for the Marine Park
These issues are discussed below.
Presentation of the Key Attractions
Port Stephens three highest profile attractions are Birubi Beach ‐ Stockton sand dunes, Tomaree Headland
and the Nelson Bay Boat Harbour and foreshore area, with most visitors to the area visiting these areas at
some stage during their stay. All international and domestic tour groups visit the Nelson Bay Boat Harbour
area with a high proportion of international visitors also taking sand dune tours. The Birubi Beach car park
is often the first introduction to Port Stephens for international visitors. There are plans prepared for
upgrading the Nelson Bay Foreshore area.
The presentation of the Biribu Beach area and foreshore reserve on the Tomaree Headland is very poor,
with the problems being:
Birubi Beach / Stockton Sand Dunes
There is no sense of arrival, in the area, with the Gan Gan Road corridor (from Nelson Bay Road to
James Paterson Street) not being particularly attractive. There is no signage at the turnoff for the
dunes.
The access to the area is via a residential street that is narrow and not particularly attractive. It does
not have the capacity to accommodate coaches and the volume of traffic generated at peak times.
This issue is being addressed with access for tour groups being relocated.
Land degradation ‐ along the access road and around the car park and surf club areas, with areas of
severe erosion and weed infestation.
Graffiti, vandalism and litter.
The surf club is building is old and presents very poorly, with limited facilities for visitors. The external
showers are not well maintained, with algal growth on the walls.
Picnic furniture is in poor condition and due for replacement.
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Port Stephens Tourism Plan ‐ Diagnostic Report
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Port Stephens Tourism Plan ‐ Diagnostic Report
Tomaree Headland Reserve
The Reserve extends along the foreshore from the end of the Shoal Bay urban area to the entrance to
Tomaree Lodge. The access road to the Headland runs through the middle of the reserve. Along its
southern side, the reserve abuts the Tomaree National Park.
Erosion ‐ along the side of the road, around the boat ramp and the picnic facilities. In a couple of
places, the soil has been washed out from under the concrete slabs, with the slabs being suspended.
This is potentially an OH&S issue.
Picnic facilities, fencing and toilets are all in poor condition and need to be replaced. The toilet block is
very prominently located with the block having been vandalised.
Litter and rubbish ‐ the area is used for a dumping ground, with the rubbish sometimes staying for
days before it is cleaned up.
Weed infestation.
Limited parking. The parking area is not sealed or marked, with visitor parking haphazardly,
particularly in peak times. Coaches, particularly the large coaches, find it difficult to turn around.
The management of both areas has been neglected for decades. The Birubi ‐ Stockton Bight area has been
'on‐hold' for a number of years while the ownership of the area was resolved. Ownership of large sections
of Stockton Bight has now been transferred to the Worimi Local Aboriginal Land Council, with much of the
area now incorporated in the 'Worimi Conservation Lands'.
The Worimi Conservation Lands include the Worimi National Park, Worimi State Conservation Area and
the Worimi Regional Park. Part of the area has been designated for recreational vehicle use. Parts of the
Worimi Conservation Lands have recently been leased to National Parks (DECCC), with National Parks to
manage the land on behalf of the Worimi. There are a number of parcels of land at the eastern end of the
Bight, around the surf club and along Gan Gan Road that remain vested in the Crown, with Council being
the Trustee for the area around the surf club. Council is proposing to redevelop the Club House.
The Department of Lands has also called for expressions of interest from developers for a parcel of crown
land on the western side of Gan Gan Road, that abuts the Worimi Lands. There appears to be minimal
communication between National Parks, Council and the Department of Lands, with the agencies acting
independently. This approach is not likely to deliver the best outcome for the area.
The Stockton Bight is one of the few areas in close proximity to Sydney that has the potential to become a
world‐class attraction. To achieve this, the area will need quality visitor facilities as well as quality tour and
activity‐based product. An integrated plan and shared vision for the area is required with this involving all
participating agencies and landowners.
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Port Stephens Tourism Plan ‐ Diagnostic Report
Land tenure is also the part of the problem on the Tomaree Peninsula, with the reserve being Crown Land,
that is being managed by Council. A joint approach, and access to funds are needed to resolve access and
parking issues and upgrade the presentation of the area.
National Parks and Conservation Areas
Significant tracts of land in Port Stephens are under the control of the Department of Environment,
Climate Change and Water (National Parks). These areas include:
Tomaree National Park
'Worimi Conservation Lands
Tilligerry State Conservation Area
Medowie State Conservation Area
Karuah State Conservation Area
The Tilligerry SCA is managed to protect water resources and is closed to the public. There are limited
visitors facilities in the Tomaree National Park with no facilities in the Medowie or Karuah State
Conservation Areas.
Tomaree National Park incorporates much of the Tomaree Headland and extends south along the coast to
Birubi Point. Visitor facilities in the Park are limited. Walking trails, interpretation and a lookout has been
developed on the Tomaree Headland, with the walking trails being used by over 100,000 visitors per year.
Vehicle access is available to Box Beach. Other than a few information shelters, there are no visitor
facilities in other areas of the Park. Access has been very limited, a legacy from Hunter Water not wanting
any disturbance of wetlands or aquifers in the area.
National Parks have funding to develop walking trails in the Park over the next 2‐3 years. From a tourism
perspective the Park has the potential to be a very significant attraction for Port Stephens and the
surrounding region. With its spectacular coastal scenery it would be an ideal location for a coastal walk.
Both ends of the National Park can be accessed by public transport and there is camping and other
accommodation available at One Mile Beach. The development of the walk would also provide the
opportunity for short walks for visitors accessing the Park locations along the coast ‐ Fingal, One Mile, Boat
Harbour, Fisherman's Bay.
A number of the headlands in the Park are very popular with visitors for whale watching. A designated
whale watching area, similar to that provided by National Parks at Kurnell, would strengthen the whale
watching product in the area. There is also significant opportunity to provide tour product to Fingal
Island.
Consideration should also be given to providing a number of short walking trails in the Tilligerry State
Conservation Area. There are a number of areas adjacent to Lemon Tree Passage Road that would be ideal
for a board walk to interpret the wetlands. There are also a number of areas where there are prolific
wildflowers in spring that could also be show‐cased to visitors. Short, interpretative walking trails in this
Park would complement and strengthen the habitat product already available in the area. These actions
would have no impact on the wetlands or aquifers in the area.
The Future of the Tour Sector
Tours. cruises and charter operations form a significant part of the attraction and activity base of Port
Stephens. This sector in Port Stephens is well developed, with Port Stephens possibly having the largest
number of tour operators of any destination outside of Sydney. The positioning, marketing and promotion
of Port Stephens is highly geared towards tour and activity based products and experiences. This is a
potential risk for the destination.
The operating environment for tour operators is far more difficult than for accommodation operators,
with the sector being more exposed to economic conditions and to the effectiveness of the marketing and
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Port Stephens Tourism Plan ‐ Diagnostic Report
promotion undertaken. The market available for tours is relatively limited, with not all visitors taking tours.
First time visitors are more likely to take a tour, than repeat visitors. Due to cost, visitors may only decide
to undertake one tour / activity during their stay. Other than for activities such as diving, fishing and golf,
repeat patronage is generally low.
As such, the type of visitor attracted to the area is important. If the area targets markets that have a lower
propensity to participate in tour activities, then the tour operators suffer. For accommodation operators,
repeat, longer stay visitors are the most cost effective market to target. In contrast most tour operators
need a high turnover of first time visitors. The different needs of the two sectors are a factor in the tension
relating to the marketing directions and priorities of PSTL.
Most of the tour operators are dependent on access to either the Stockton Sand Dunes or the Marine
Park. Both assets are managed by Agencies for which tourism is not a core activity. A moratorium is
already in place on licenses to operate in the Worimi Conservation Lands, until the Plan of Management is
completed. It is highly likely that the Plan of Management will limit the number and type of operations,
and that the licenses will be tendered. Adventure based activities without some form of education ‐
interpretative component may not be approved.
At this stage, there are no restriction on the number of permits issued by the MPA, however if the tour
activities are shown to be having a negative impact on the habitat or the marine life, caps or restrictions
could be introduced. It is important that operators adopt environmentally sustainable practices and work
closely with the MPA to achieve the best outcomes for the area.
There is also a planning issue that has the potential to have significant impacts on the marine tour
operators. It is understood that while Council requires marine tour operators to have development
approval, the need for a DA is disputed by operators. It appears that only one of the operators has sought
DA approval. If operators are deemed to be operating 'illegally' then they will not be able to apply for a
MPA permit. This issue needs to be resolved. There are reportedly operators who are interested in
setting up tour and activity‐based marine businesses in Port Stephens however are reluctant to make an
investment while the matter remains unresolved.
Imbalance between Commercial and 'Free' Activities
The information available on Port Stephens and the marketing and promotion is focused on member
businesses and driven by commissionable product. The website is almost completely devoted to
commercial activities and attractions. This needs to be balanced with information on non‐commercial
activities that can be undertaken ‐ bushwalking, cycling, snorkelling, touring / sight seeing, picnicking etc.
The non‐commercial activities available in the LGA need to be developed and promoted. This should be
part of the product development and destination management role of the Tourism Unit.
Standard of the Commercial Attractions
The product and experience offered by most of the man‐made attractions (eg Oakvale Farm, Dizzyland,
Australian Shark and Ray Centre, Murrook) is less sophisticated than the market would generally expect.
These attractions are at best 'average' although the operators are enthusiastic and know their business.
They are under‐managed and possibly under‐capitalised. Improvements needed include:
Improved presentation of exhibits
Professional signage
Sense or arrival and a sense of experience.
These attractions are generally clean and with basic landscaping and presentation of exhibits. They lack
that quality which makes for a memorable experience.
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5.4 Opportunities to Expand the Product and Attraction Base
Possible opportunities to expand the product and attraction base include:
Murrook Cultural Centre ‐ there is strong demand from the international market for indigenous
product. There is potential to develop Murrook into a significant product for Port Stephens and the
surrounding region.
Signature coastal walk through the Tomaree National Park from Tomaree Headland to Birubi Point.
Tour to Fingal Island, departing from Fingal Bay.
Scenic drives and touring routes ‐ encouraging visitors to explore different parts of the LGA the
surrounding region.
Mambo Wetlands ‐ possibility of a board walk through the wetlands with interpretation and bird
hides.
Local produce / harvest trail ‐ linking farm gate outlets, seafood products, wineries and the brewery.
Mountain bike trails in the Karuah State Forest or National Park or in the Medowie or Karuah State
Conservation Areas.
Establishing a high quality adventure play‐ground at Lemon Tree Passage and possibly at Fingal Bay.
Wetland and wildflower boardwalks in the Tilligerry State Conservation Area.
Further development of the Tilligerry Habitat Centre at Tanilba Bay.
Developing boat touring routes ‐ Port Stephens and in the Hunter ‐ Williams Rivers.
Clustering of activities that to appeal to special interest markets ‐ for example the bird watching
market ‐ Goulds Petrel, Broughton Island, Mambo Wetlands, Roalyn Park at Raymond Terrace and the
Seaham Swamp Nature Reserve.
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6. ACCOMMODATION BASE
6.1 Accommodation Base
There is no directory that lists all accommodation available in Port Stephens LGA. The Port Stephens
Visitor Centre has information on properties that are members of PSTL. The accommodation listings on
the State Tourism Data Warehouse is not comprehensive, nor are the listings in the NRMA (AAA)
Accommodation Guide. The data provided in Tables 6.1, 6.2 and 6.4 has been compiled from a range of
sources and may not be completely accurate.
There is also some confusion with the classification of properties, with a number of properties listed under
different categories in different data bases. In addition, for some data bases, Port Stephens includes
properties on both sides of the Port, with Raymond Terrace either not listed, or listed under Newcastle or
Hunter.
The Australian Bureau of Statistics, Tourist Accommodation Survey collects data from 25 hotel, motel and
serviced apartment properties, 14 caravan parks and 8 holiday letting agents from within the LGA. Based
on the ABS data and the properties listed in various accommodation directories, the accommodation base
in Port Stephens LGA includes:
Resorts, hotels, motels, apartment hotels and serviced apartments ‐ 37 properties. The ABS surveys 25 of these
properties, with the 25 surveyed providing around 1,600 rooms. When all properties are included, there is
probably in the order of 1,800 rooms / apartments.
Caravan Parks ‐ 17 parks plus camping available at Melaleuca Backpackers. The ABS surveys 14 parks, with these
parks providing around 1,560 tourist sites (1,400 powered sites and 160 unpowered sites) and 430 cabins, and
also have around 700 on‐site holiday vans.
Holiday rental properties ‐ apartments and houses ‐ The ABS surveys 8 letting agents, with these agents having
between 1,300 ‐ 1,400 active properties on their books. Based on an internet search it is likely that there are
around 1,450 ‐ 1500 holiday letting properties managed by letting agents and a further 400‐500 that are
privately let, through accommodation booking websites.
Holiday homes and apartments ‐ At the 2006 Census there were 4737 unoccupied dwellings in the
urban areas on the Tomaree and Tilligerry Peninsulas. Possibly around 2,000 of these properties are
let for holiday rentals (see above). A significant proportion of the remainder are likely to be holiday
homes and apartments that are used on an occasional basis.
Bed & Breakfast & farm stay properties ‐ there appears to be around 30 B&Bs in the LGA and 2 ‐ 3
farm stay properties.
Back Packer ‐ 2 hostels, plus two properties with budget bunk‐house and unit accommodation.
Accommodation is concentrated on the Tomaree Peninsula, with most of the resort, apartment and motel
accommodation located in the Nelson Bay ‐ Shoal Bay area. There is also resort‐apartment
accommodation at Corlette, Salamander and Soldiers Bay, with these properties located in residential
areas.
There is a secondary cluster of small resorts and back‐packer accommodation in the Anna Bay ‐ One Mile
area. There is a distinct difference in the character of the accommodation between Anna Bay and the bay‐
side suburbs. Nelson and Shoal Bay are urban centres, with a concentration of medium density
apartments. In contrast the properties in the Anna Bay ‐ One Mile area are smaller, low density, 'eco'
style properties with interesting architecture and bush settings.
Rental accommodation (houses and apartments) are spread throughout the Peninsula, from Soldiers
Point through to Fingal Bay and in the Anna Bay ‐ Boat Harbour area. There are also 11 caravan parks
(over 1900 tourist sites) on the Tomaree Peninsula, with parks located at Fingal Bay, Shoal Bay, Nelson
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Bay, Soldiers Point (2), Anna Bay (2), Biribu Beach (1), One Mile Beach (2) and Fenninghams Island. The
two parks at Anna Bay and at Fenninghams Island are predominantly longer term residential parks with
limited tourist accommodation.
On the Tilligerry Peninsula accommodation is concentrated at Lemon Tree Passage, and includes a large
caravan park, small motel, a few B&B’s and possibly 20‐30 holiday homes and apartments.
Karuah has three small motels, one very small caravan park and a larger resort‐style park on the Karuah
River. The motels and small caravan park were established more than 30 years ago to service the
highway traffic that used to flow through the town.
Raymond Terrace has 5 motels, 2 caravan parks, a B&B and a few pub hotels that provide
accommodation. There is also a caravan park at Tomago. The motels mainly service highway traffic,
business and work‐related travellers and visitors coming into the area for sport, social functions etc. The
caravan parks are primarily long‐term residential parks with limited tourist facilities.
Resorts, Apartment Hotels & Serviced Apartments
The are 16 'resort' and serviced apartment properties in Port Stephens, all of which are located on the
Tomaree Peninsula. There are also a number of apartment complexes, such as the Shoal Bay Beach Club
Apartments, that will provide cleaning and other services on a fee‐for service basis.
The new Armana Resort is the newest up‐market accommodation in the LGA with the property having
recently been rated 5 star. Six of the properties are 4.5 star rated by AAA with one property self rated at
4.5 star. These properties provide around 830 apartments. There are also three 4 star properties,
providing 97 apartments. (Note: star ratings are a guide only)
Table 6.1 Hotels and Resorts
Property Location Affiliation Star Rating Rooms / Apts
The Landmark Nelson Bay 4.5 125 apts
Nelson Bay Breeze Resort Nelson Bay 3.5 40 apts
Marina Resort Nelson Bay 3.5 44 rooms
Mantra Aqua Resort Nelson Bay Stella 4.5 110 apts
Oaks Lure Apartments Nelson Bay Oaks H&R 4.5 60 apts
Cote d'Azur Nelson Bay 4.5# 54 apts
Armana Resort Nelson Bay 5 11 suites
Shoal Bay Resort & Spa Shoal Bay 4.5 201 apts
Peppers Anchorage Corlette Stella 4.5 80 rooms
Oaks Pacific Blue Salamander Bay Oaks H&R 4.5 176 apts/34 rms
Le Meilleur Horizons Golf Resort Salamander Bay Le Meilleur 4 27 apts
Colonial Ridge Resort Salamander Bay 3.5 42 apts
All Seasons Salamander Shores Soldiers Point All Seasons 3.5 90 rooms
Samurai Beach Resort One Mile Beach 4 31 cottages
O'Carrolyns One Mile Beach 3.5 9 cottages
Wanderer's Retreat One Mile Beach 3.5 10 cottages
Source: Compiled from ‐ TNSW visitnsw.com, TotalTravel, Property & Accommodation Websites
# Self rated
Many of the apartment properties are strata titled, with the units in individual ownership and operated
under a management agreement. There are a number of issues with these properties, including:
Withdrawal of apartments from the management agreement, or not entering into a new agreement
once the original management contract has expired.
People buying the units as an investment in the short to medium term, with the expectation to retire
to the unit in the longer term.
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Apartments being taken out of the management pool and let privately or placed with another
managing agent. The management company has no control over guests in these apartments.
Conflict between permanent residents and visitors, with the two groups having different needs and
expectations.
As the number of units under a management contract declines, the viability of the operation can be
compromised.
Motels, Hotel ‐ Motels, Pub Hotels
There are 18 motels, 2 hotels with motel rooms and 3 pub hotels that provide accommodation. The rooms
available in the pub hotels fluctuate, depending on demand for permanent and semi‐permanent
accommodation.
Most of the motels are older, traditional style properties, with a number being ripe for redevelopment.
There is one 4 star property and nine 3.5 star properties. Only 5 of the properties have the capacity to
accommodate a coach tour group (>25 rooms), with three of these properties being located at Raymond
Terrace.
Table 6.2 Motel and Hotel / Motel Accommodation
Property Location Affiliation Star Rooms
Rating
Peninsula Motor Inn & Apts Nelson Bay 4 27 rms / 13 apts
Nelson Lodge Motel Nelson Bay 3.5 36
Nelson Towers Motel Nelson Bay 3.5 16
Dolphins Motel Nelson Bay 3.5 25
Admiral Nelson Motel Nelson Bay Golden Chain 3.5 25
Port Stephens Motor Lodge Nelson Bay 3 17
Seabreeze Hotel Nelson Bay 2.5 14
Central Motel Nelson Bay nr
Corlette Palms Corlette 3 13
Santa Catalina Motel Shoal Bay nr
Lemon Tree Passage Motel LTP Haven 3.5 11
Country Life Motel Karuah Budget 3.5 11
Karuah Motor Inn Karuah 3 14
Sally's Motel Karuah nr 8
Colonial Terrace Motor Inn Raymond Terrace 3.5 30
Sir Francis Drake Raymond Terrace C' Comfort 3.5 40
Motto Farm Motel Raymond Terrace nr 80
Sleepy Hill Motor Inn Raymond Terrace 3 30
Kingston Motel Raymond Terrace nr 12
Junction Inn Raymond Terrace Pub
The Palms Hotel Raymond Terrace Pub
Clare Castle Hotel Raymond Terrace Pub
Bull & Bush Hotel / Motel Medowie nr
Source: NRMA Accommodation Directory, Tourism NSW www.visitnsw.com
nr = not rated
Only four of the motel properties are members of National chains.
A number of the motels, particularly in the Raymond Terrace area, are tired and in need of major
refurbishment. The market has shifted with travellers increasingly seeking 4‐4.5 star properties.
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Holiday Houses & Apartments
Holiday houses and apartments can be broadly defined as properties that are not permanently occupied or
available for residential lettings (6+ month leases). They include properties which are used by the owner
and their friends and relatives for holidays and short stays in the area, and those that are available for
short term holiday lettings.
The ABS, through the Census Data, provides information on the total number of private dwellings (house,
apartments etc) and the number of occupied and unoccupied dwellings at the time of the Census.
Unoccupied dwellings includes holiday properties, plus those that are vacant ‐ eg for sale, for demolition
etc. As holiday lettings account for the majority of unoccupied properties, the Census data provides an
indication of the number of holiday properties in the area.
At the 2006 Census there were 4,304 unoccupied properties in the urban localities on the Tomaree
Peninsula and 433 properties on the Tilligerry Peninsula. 53.7% of unoccupied dwellings were located in
the Nelson Bay‐Shoal Bay area, with some of these dwelling being new apartments for sale.
Table 6.3 Unoccupied Private Dwellings ‐ Census 2006
Urban Locality Total Private Unoccupied Unoccupied as % of
Dwellings Dwellings % of Total Unoccupied
Dwellings Dwellings
Nelson Bay ‐ Shoal Bay 6039 2543 42.1% 53.7%
Fingal Bay 1113 435 39.1% 9.2%
Corlette 1465 331 22.5% 7.0%
Salamander Bay 2069 369 17.8% 7.8%
Soldier Point 845 357 42.2% 7.5%
Anna Bay ‐ Boat Harbour 1204 269 22.3% 5.7%
Total Tomaree 12735 4304 33.8% 90.0%
Tilligerry Urban Areas 2771 433 15.6% 9.1%
Total Urban Localities 15506 4737 30.5% 100%
Source: Australian Bureau of Statistics ‐ 2006 Census
Based on internet searches of the holiday property portfolios of the real estate and holiday letting agents
in the area, and of the main accommodation directories (eg total travel, stayz), there appears to be around
2,000 apartments and houses available for holiday rentals in Port Stephens. Of these, around 1,450 ‐
1,500 properties are listed with real estate and holiday letting agents, with around 400‐500 listed privately
on accommodation directory websites. The ABS, as part of their Tourist Accommodation Survey, surveys 8
letting agents in the area, with these agents managing in the order of 1,300 holiday rental properties.
Winnings Properties is the largest managing agent with over 500 properties on their books.
Around 98% of holiday rental properties are located on the Tomaree Peninsula, with around half being in
the Nelson Bay ‐ Shoal Bay area. There appears to be around 20‐30 holiday rental properties on the
Tilligerry Peninsula, with no holiday rental properties listed for Karuah or Raymond Terrace.
According to letting agents, rental properties in Shoal Bay, Nelson Bay and Fingal Bay generally rent first,
with Anna Bay and Boat Harbour beginning to increase in popularity. In holiday times, houses are more
popular than apartments. The preference is for properties with water views and/or in close proximity to
the beach. Waterfront properties in Soldiers Point and Salamander will 'sell', however properties not
located near the water are difficult to rent.
The market is becoming increasingly demanding, wanting modern accommodation, equipped with flat
screen televisions, play station / Wi etc. Many of the holiday letting properties in the area are older with
dated furnishings, fittings and equipment. These properties are more difficult to rent out.
Good properties generally achieve around 50‐60% occupancy, however most properties achieve around
20‐25%.
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Port Stephens Tourism Plan ‐ Diagnostic Report
Caravan Parks
There are 17 licensed caravan parks in Port Stephens LGA, plus a camping area at the Melaleuca Surfside
Back Packer Hostel. These parks provide over 2,400 sites of which around 40‐45% are available for
tourists. 12 of the parks are on the Tomaree Peninsula, with one at Lemon Tree Passage, two at Karuah,
two at Raymond Terrace and one at Tomago. Port Stephens Council operates four Parks under the brand
of 'Port Stephens Holiday Parks'.
Eight of the Parks are primarily residential parks with a high proportion of permanently occupied 'long
term' sites, and a limited number of tourist sites and/or cabins. Most of the Parks also cater for holiday
vans which are located permanently on‐site. The caravan parks on free‐hold land appear to have the
highest proportion of long term sites and holiday vans. Only 7 of the Parks are listed by CCIA as being
capable of accommodating a large motorhome. The majority of the parks have a black water dump point.
Overall, the Parks in the LGA are of a relatively high standard with one 4.5 star Park (Discovery Park at
Lemon Tree Passage) and 7 four star parks. Most of the 'tourist' parks provide quality visitor facilities,
with the parks being well maintained and well presented. A number of the parks run ‘Kids Clubs’ during
the school holidays. During January, the larger tourist parks can have upwards of 1,000 visitors staying on‐
site.
The four major franchise chains, Big4, Family Parks of Australia, Top Tourist Parks and Discovery Parks are
represented in the LGA. Most of the Parks in the LGA are members of the Caravan and Camping Industry
Association and are listed in the CCIA Holiday and Touring Guide and on the CCIA website.
Trends in the Caravan Park Sector
According to operators, the caravan park market is changing, with trends including:
Resurgence in the popularity of camping, particularly in the past 12‐18 months, possibly as a result of
the economic downturn. This is a 4 star camping market, bringing a lot of equipment and 'comfort'
with them.
Increase in the 'grey nomad' market towing camper trailers as opposed to caravans.
Strong preference, particularly amongst the touring van market, for drive through sites.
Strong demand for cabins, particularly the larger, more up‐market cabins that have separate
bedrooms.
Increased expectation that there will be activities available for children. The holiday market in
particular is looking for 'resort' style parks.
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Table 6.4 Caravan Park Accommodation ‐ Port Stephens LGA
Park Location Affiliation Rating Total sites Tourist Sites
Ens Pwd Un Pwd Total as % of Cabins Other
Tourist total sites
Sites
Fingal Bay Fingal Bay 4 430 111 144 35.5% 33
Shoal Bay Shoal Bay 4 124 8 116 124 100.0% 36 5 tents
Halifax Nelson Bay 4 170 91 2 93 54.7% 32
Soldiers Point Holiday Park Soldiers Point 4 60 55 5 60 100.0% 33
Big 4 Soldiers Point Holiday Park Soldiers Point Big 4 4 141 1 21 22 15.6% 11 24 units
One Mile Holiday Park One Mile Beach TTP 4.5 237 14 133 157 66.2% 32
Middle Rock Holiday Resort One Mile Beach 3.5 264 2 10 48 60 22.7% 23
Melaleuca Surfside Backpackers One Mile Beach Basic Primitive camping
Bays Holiday Park Anna Bay FPA 4 44 37 7 44 100.0% 8 2 bunk houses
Emerald Tiki Caravan Park Anna Bay Mainly permanent
Birubi Beach Holiday Park Anna Bay 4 196 16 30 36 18.4% 28
Island Leisure Village Fenninghams Is 234 16 16 32 13.7% 6
Discovery Holiday Park LT Passage Discovery 4.5 98 4 94 98 100.0% 21
Karuah Caravan Park Karuah 2.5 40 10 4 14 35.6% 4 8 on‐site van
Big 4 Karuah Jetty Holiday Village Karuah Big 4 3.5 135 21 34 55 40.7% 15
Pacific Gardens Caravan Park Raymond Terrace
Bellhaven Caravan Park Raymond Terrace 3 100 10 10 20 20.0% 19
Tomago Van Village Tomago 3.5 156 4 28 10 42 26.9% 39 17 on‐site vans
TTP Tourist Parks of Australia FPA = Family Parks of Australia
Source: NRMA Accommodation Directory, Caravan & Camping Industry Australia Holiday & Caravan Park Guide
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Bed & Breakfast (B&B) & Farm Stay Properties
Based on properties listed in the Yellow Pages and an internet search, there appears to be around 30 B&B
and 3 farm‐stay properties in the LGA. 22 of the properties are located in the urban areas of the Tomaree
Peninsula, at Nelson Bay (4), Shoal Bay (3), Corlette (5), Salamander Bay (3), Soldier Point (4) and Anna Bay
(4). The other B&Bs are located at Lemon Tree Passage (1), North Cove (1), Salt Ash (1), Seaham (1) and
Raymond Terrace (2).
Backpacker Hostels
There are two backpacker hostels at One Mile Beach, the Samuria Beach Bungalows which is YHA affiliated
and Melaleuca Surfside Backpackers. Both properties provide attractive timber cottages in bushland
settings. Melaleuca also has a camping ground, which is popular with the international campervan touring
market.
Bunkhouse and lodge style accommodation as available at two of the caravan parks, with Sahara Farm
Stay also having backpacker style rooms.
6.2 Possible Additions and Changes to Supply
Possible additions to the accommodation stock in Port Stephens includes:
West Diggers Nelson Bay ‐ Future development plans for the Club include hotel and hotel apartment
accommodation, possibly 150‐250 rooms of 4‐4.5 star standard.
Resort ‐ Anna Bay. Possibly 154 apartments. The site will require a rezoning.
Murrook ‐ Accommodation for school groups. This could be camping or 'onsite' tents initially, moving
to bunkhouse accommodation.
Samurai Beach Resort ‐ 6 additional units plus café, bar and conference room. The Resort has approval
for 86 rooms, of which only 33 have been developed. Additional rooms will be added as demand
warrants.
Former Army site, Gan Gan Road. The preliminary development concept for this site includes resort‐
style accommodation.
Karuah Jetty Big 4 Caravan Park ‐ Increasing the number of cabins from 18 to 30 over the next 4 years,
and expanding the recreational facilities to include a tennis court and jumping pillow.
6.3 Performance
The Australian Bureau of Statistics (ABS) publishes monthly performance statistics on a Local Government
Area (LGA) basis for
Hotels, motels, guesthouses and serviced apartments with ensuite facilities.
Caravan Parks, with more than 15 tourist sites
Holiday lettings ‐ apartments and houses that are commercially managed.
Hotels, Motels, Guesthouses and Serviced Apartments
The ABS statistics relate to hotel, motel, guesthouse and serviced apartment properties that have ensuite
facilities and 15 or more guest rooms. The performance data for the calender years 2004 to 2008 and for
the first 6 months of 2009 are summarised in Table 6.5. In June 2009, there were 23 properties surveyed,
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Port Stephens Tourism Plan ‐ Diagnostic Report
with these properties providing 1,479 rooms. In 2008, 4 additional properties were added to the data
base, increasing the average number of rooms available by 45.5%.
In 2008, there were 290,360 visitors who stayed in hotel, motel, guesthouse and serviced apartment
accommodation in Port Stephens LGA, with these visitors generating 293,932 room nights and 668,849
guest nights. Takings from accommodation were in the order of $45.385 million, with around 700 people
employed in the 25 properties surveyed.
The main findings are summarised below:
Guest Arrivals – From 2004 to 2008, the number of guest arrivals increased by 47.7%, with most of the
increase being in the 12 months from 2007 to 2008 (45.5% increase). The increase in guest arrivals is
directly comparable to the increase in the number of rooms surveyed, indicating no real growth in arrivals.
Guest arrivals in the first half of 2009 were down 6.6% on the same period 2008.
Guest Nights – The number of guest nights spent in Port Stephens LGA increase by 54.8% from 2004 to
2008, with most of the growth occurring from 2007 to 2008 with a 50.3% increase in nights spent in the
LHA. The increase in nights in 2007‐2008, was higher than the increase in rooms, indicating some growth
in the length of stay. Nights spent in the area in the first 6 months of 2009 were down 6.3% on the same
period in 2008.
Rooms Sold – The number of room nights sold has increased each year since 2004, with an overall increase
of 55%. The strongest growth (43.9%) occurred in the 12 months to 2008, in line with the increase in the
number of rooms surveyed.
Average Length of Stay – The average length of stay in 2008 was 2.3 nights, marginally higher than the 2.2
nights achieved in 2007. The average length of stay is longer (2.4 nights) in the warmer months
(December and March quarters) and lower in winter (2.1 nights in the September quarter). The average
length of stay in the first two quarters of 2009, was marginally lower than in the same quarters in 2008.
Persons per Room ‐ the average number of visitors per room was 2.3, with a higher density (2.4) in the
warmer months.
Occupancy Rates – From 2004 to 2007 the average occupancy rate increased marginally, from 49.8% to
51.4%, declining to 50.9% in 2008. (Note: in the 2 years prior to 2004, the occupancy rates were 51.8%
and 51.1% respectively). In all years, the occupancy rates in the March quarter have sat between 60 and
63%, with the December quarter occupancy ranging from 52% to 56%. Occupancy rates during colder
months (June and September quarters) have ranged between 41% and 45%.
The monthly occupancy rates are given in Table 6.6. Visitation is highly seasonal, with a very concentrated
January peak (around 70%) and very low occupancy rates in the colder months (36% ‐ 42%). Over the past
5 years occupancy rates from January through to October have remained relatively consistent (minimal or
no growth), with performance appearing to have improved marginally in November and December
(shoulder periods). Marketing needs to focus on building shoulder and low season occupancy rates.
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Table 6.5 Performance of Hotels, Motels and Guesthouses
Quarter Est Rooms Room Room Guest Guest Av. Persons Takings Av Room
Nights Occ. Nights Arrivals Stay / Room $'000 Rate
2004
March 22 1083 61178 62.1% 146464 60088 2.4 2.4 $ 7,818 $ 127.79
June 22 1046 40618 42.7% 88598 40618 2.2 2.2 $ 4,825 $ 118.79
September 22 1058 40332 41.4% 86495 45087 1.9 2.1 $ 4,487 $ 111.25
December 21 1020 49037 52.3% 110645 50740 2.2 2.3 $ 6,596 $ 134.51
Total 2004 21 1052 191165 49.8% 432202 196533 2.2 2.3 $ 23,726 $ 124.11
2005
March 22 1052 57279 60.5% 134148 53748 2.5 2.3 $ 7,809 $ 136.34
June 23 1059 40501 42.0% 81779 41609 2.0 2.0 $ 4,806 $ 118.66
September 23 1055 40622 41.9% 82311 44476 1.9 2.0 $ 4,849 $ 119.36
December 23 1051 52812 54.9% 114359 38303 3.0 2.2 $ 6,787 $ 128.52
Total 2005 23 1054 191214 49.7% 412597 178136 2.3 2.2 $ 24,251 $ 126.83
2006
March 23 1065 60136 62.7% 133648 56099 2.4 2.2 $ 8,121 $ 135.05
June 22 1046 40142 42.2% 80910 40404 2.0 2.0 $ 5,362 $ 133.57
September 22 1047 40273 41.8% 81372 45321 1.8 2.0 $ 5,083 $ 126.22
December 22 1046 53474 55.6% 118625 54456 2.2 2.2 $ 7,314 $ 136.78
Total 2006 22 1051 194025 50.6% 414555 196280 2.1 2.1 $ 25,880 $ 133.39
2007
March 22 1047 58347 61.4% 136966 62108 2.2 2.3 $ 9,513 $ 163.04
June 22 1047 42545 44.6% 89008 39554 2.3 2.1 $ 5,830 $ 137.03
September 22 1047 43199 44.8% 87521 40631 2.2 2.0 $ 5,626 $ 130.24
December 21 1211 60151 54.0% 131647 57261 2.3 2.2 $ 9,280 $ 154.28
Total 2007 21 1088 204242 51.4% 445142 199554 2.2 2.2 $ 30,249 $ 148.10
2008
March 23 1521 83438 60.3% 202326 82790 2.4 2.4 $ 13,496 $ 161.75
June 24 1539 62438 44.6% 130423 59086 2.2 2.1 $ 8,273 $ 132.50
September 25 1634 63659 42.3% 136908 64728 2.1 2.2 $ 9,424 $ 148.04
December 25 1636 84397 56.1% 199192 83756 2.4 2.4 $ 14,192 $ 168.16
Total 2008 25 1583 293932 50.9% 668849 290360 2.3 2.3 $ 45,385 $ 154.41
2009 ytd
March 25 1594 78852 55.0% 183658 79950 2.3 2.3 $ 12,697 $ 161.03
June 23 1479 57811 43.0% 128074 62181 2.1 2.2 $ 8,475 $ 146.59
% change
2004‐2008 19.0% 50.5% 53.8% 2.1% 54.8% 47.7% 4.7% 0.6% 91.3% 24.4%
2007‐2008 19.0% 45.4% 43.9% ‐1.1% 50.3% 45.5% 3.3% 4.4% 50.0% 4.3%
6months 08‐09 0.4% ‐6.3% ‐6.7% ‐6.3% ‐6.6% ‐2.7% 3.9%
Source: Australian Bureau of Statistics: Tourist Accommodation NSW 8635.1.40.001
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Table 6.6 Port Stephens Shire‐ Average Monthly Occupancy Rates 2004‐ 2009
Month 2004 2005 2006 2007 2008 2009
January 73.0% 68.5% 70.0% 70.1% 70.7% 63.2%
February 60.5% 58.3% 59.1% 58.4% 57.1% 51.7%
March 52.6% 54.5% 58.8% 56.9% 52.9% 49.6%
April 50.5% 48.0% 51.2% 51.7% 56.2% 54.7%
May 39.2% 38.1% 38.9% 40.9% 42.2% 39.8%
June 38.5% 40.1% 36.5% 41.5% 36.5% 34.5%
July 40.5% 39.7% 39.0% 41.4% 36.9%
August 37.5% 38.7% 40.1% 39.8% 38.6%
September 48.3% 47.3% 46.5% 53.6% 51.9%
October 52.7% 56.3% 55.5% 52.2% 53.9%
November 50.9% 56.9% 54.2% 55.3% 56.5%
December 53.1% 55.9% 56.9% 56.5% 58.8%
Annual 49.8% 49.7% 50.6% 51.4% 50.9%
Source: Australian Bureau of Statistics: Tourist Accommodation NSW 8635.1.40.001
As a 'rule of thumb', occupancy rates in excess of 65% indicate the need for additional accommodation.
This rate is only achieved in January, with the area being over‐supplied with accommodation for the
remainder of the year.
Takings from Accommodation ‐ In 2008 total takings from accommodation was $45.385 million, up 91.3%
on 2005, with a 50% increase in takings in the last 12 months.
Average Room Rate – The average room rate per occupied room per night has increased each year, from
$124.11 in 2004 to $154.41 in 2008. Rates fluctuate seasonally. In 2008, the achieved rates in the
December and March quarters were $168.16 and $161.75 respectively, declining to $148.04 in the
September quarter and to $132.50 in the June quarter.
The achieved rate for total rooms available was $78.53 in 2008.
Comparison with other LGA's
Table 6.7 provides a comparison of the performance of the hotel, motel and serviced apartment sector in
Port Stephens with the performance of properties in Newcastle City and the larger LGAs within the Coast
Region, for 2008. The performance comparison for the January to June period for 2008 and 2009 given in
Table 6.8. The main findings for 2008 are:
Port Stephens had 25.7% of the rooms available for sale in the North Coast Region. It attracted 22.7%
of guest arrivals and 26.2% of guest nights, and sold 24.5% of the rooms and achieved 29.5% of the
revenue generated by the accommodation. These figures indicate that Port Stephens is attracting
slightly less than its 'fair share' of guest arrivals and rooms sold, but is attracting slightly more of its
fair share in terms of guest nights and takings from accommodation.
Newcastle City had by far the highest room occupancy rate achieving 74.7%, compared to 50.9%
achieved in Port Stephens. Properties in both Coffs Harbour and Port Macquarie averaged higher
occupancy rates than Port Stephens, 60.6% and 58.0% respectively. Port Stephens and all other LGAs
on the North Coast performed below the regional average of 53.1%.
Port Stephens has the longest average length of stay in the Region, 2.3 nights, compared to the
regional average of 2.0 nights.
Port Stephens achieved the highest takings from accommodation ($45.38m) and the highest average
rate per occupied room ($154.21). Newcastle achieved $142.21, while the average for the North
Coast was $129.88. For rates achieved for total rooms, Port Stephens ($78.53) ranked second in the
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region, behind Port Macquarie ($79.40). Newcastle City had by far the best rate, $108.30 per room
per night.
In the first 6 months of 2009, Port Stephens experienced larger percentage falls in room sales, room
occupancy and takings, than the other LGAs in the North Coast Region.
Newcastle achieved very high occupancy rates year round, with the slowest month being January
(66.9%). This reflects the diverse market base of the City ‐ business travellers, conference delegates,
event attendees, holiday and leisure travellers, sporting competitors etc.
Seasonality is a significant issue in all LGA's in the North Coast Region. Coffs Harbour achieved the
highest occupancy rates in the Region, with seasonality not being as pronounced in Coffs Harbour as it
is in other LGAs. Coffs Harbour appears to have been successful in building its shoulder season
visitation. Port Macquarie ranked second, followed by Port Stephens. Occupancy rates in Great Lakes
Shire were very low.
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Table 6.7 Comparison of Performance, Hotels, Motels & Guest Houses Newcastle City & North Coast LGAs ‐ 2008
LGA Est Rooms Guest Arrivals Room Nights Guest Nights Room Av Stay ‐ Takings Achieved Room Rates
Sold Occupancy Nights Occupied Rm Total rooms
Port Stephens 25 1583 290360 293932 668849 50.9% 2.3 $45.38m $154.21 $ 78.53
Newcastle 19 1110 237305 302700 457861 74.7% 1.9 $ 43.05m $142.21 $106.30
Coffs Harbour 40 1497 371236 331312 698495 60.6% 1.9 $ 39.12m $118.08 $ 71.58
Great Lakes 24 625 112648 97646 219843 42.4% 2.0 $ 12.00m $122.00 $ 51.82
Kempsey 14 362 75773 57833 105157 43.8% 1.4 $ 5.04m $ 87.19 $ 38.16
Port Macquarie 34 1287 295044 272523 602663 58.0% 2.0 $ 37.29m $136.85 $ 79.40
Taree 23 557 91257 94255 171563 46.4% 1.9 $ 9.14m $ 97.101 $ 44.98
North Coast 168 6167 1278302 1195635 2553881 53.1% 2.0 $155.26m $129.88 $ 68.97
PS as % of Region 14.9% 25.7% 22.7% 24.5% 26.2% 29.2%
Table 6.8 Comparison of Performance Percentage Change ‐ Jan‐June 2008 to Jan to June 2009
LGA Rooms Guest Arrivals Room Nights Guest Nights Room Takings Rate / Occ Rate
Available Sold Occupancy Room Total Rooms
Port Stephens 0.4% ‐6.6% ‐6.3% ‐6.3% ‐6.7% ‐2.7% 3.9% ‐3.1%
Newcastle 2.0% ‐2.5% ‐7.4% ‐8.4% ‐9.2% ‐0.5% 7.4% ‐2.5%
Coffs Harbour 0.1% ‐3.1% ‐2.2% 1.0% ‐2.3% 1.0% 3.3% 0.9%
Great Lakes ‐5.3% ‐2.0% 3.1% 6.7% 8.9% ‐2.5% ‐5.4% 3.3%
Kempsey ‐4.9% 6.2% ‐3.0% 0.7% 2.0% 1.9% 5.0% 7.2%
Port Macquarie ‐2.8% 4.5% ‐3.5% ‐3.4% ‐0.7% ‐1.3% 2.3% 1.6%
Taree 2.3% ‐7.6% 3.3% 5.1% 1.0% 1.2% ‐2.1% ‐1.0%
North Coast ‐0.7% ‐3.9% ‐2.5% ‐0.3% ‐1.8% ‐1.1% 1.5% ‐0.4%
Table 6.9 Comparison ‐ Monthly Room Occupancy Rate 2008
LGA Jan Feb March April May June July August Sept Oct Nov Dec Year
Port Stephens 70.5 57.1 52.9 55.2 42.2 36.5 36.9 38.6 51.9 53.9 55.5 58.8 50.9
Newcastle 66.9 75.2 70.8 81.2 78.7 71.0 78.9 72.5 77.8 74.0 76.3 71.7 74.7
Coffs Harbour 72.3 59.3 61.8 55.6 50.0 50.4 57.1 52.6 65.7 71.2 64.8 65.5 60.6
Great Lakes 63.5 42.0 46.0 39.4 33.3 28.0 32.4 32.8 37.5 52.7 45.9 50.6 42.4
Kempsey 56.5 40.9 40.3 40.0 39.0 35.6 42.5 39.2 41.6 48.6 48.1 51.4 43.8
Port Macquarie 74.7 60.0 58.5 59.6 46.7 42.1 52.0 48.9 56.3 70.2 62.5 64.9 58.0
Taree 50.9 36.5 44.5 47.6 48.6 44.3 50.4 42.4 44.1 50.1 44.6 50.3 46.4
North Coast 68.3 54.0 54.2 52.6 45.1 41.3 46.2 44.1 53.3 60.9 56.6 59.5 53.1
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Port Stephens Tourism Plan ‐ Diagnostic Report
Holiday Rental Accommodation ‐ Apartments and Houses
The ABS surveys 8 letting agents, with these agents having between 1,300 and 1,400 properties listed for
holiday rentals. The number of properties available has been relatively static for the past 4 years. (Table
6.10)
Lettings
In 2008, there were 31,355 holiday lettings, with lettings being 12.4% down on the number of lettings in
2005. In 2005 there were 35,756 lettings, with the number of lettings declining in 2006, with a further
decline to 24,541 lettings in 2007. While the number of lettings recovered strongly in 2008, lettings for
the first 6 month of 2009 were down 12.4% on the same period in 2008.
Nights Spent
In 2008, there were 168,569 nights in which dwellings were occupied. The average length of stay was 5.4
nights.
Unit Occupancy Rates
In 2008, the occupancy rate for holiday rental properties was 34.7%, down 10.1% from 2005. Occupancy is
seasonal, with the highest rates achieved in January (59.8% in 2008) and December (46.8%). Over the past
4 years, monthly occupancy rates in winter have fluctuated between 14% and 30%.
Table 6.11 Months Occupancy ‐ Holiday Lettings ‐ Port Stephens
LGA 2005 2006 2007 2008 2009
January 74.4% 61.5% 53.9% 59.8% 71.1%
February 47.1% 35.8% 30.9% 41.2% 45.2%
March 44.6% 30.1% 23.9% 37.0% 35.3%
April 41.1% 36.7% 25.7% 28.7% 41.4%
May 32.6% 20.3% 16.1% 21.9% 27.6%
June 33.3% 20.8% 14.1% 20.7% 26.4%
July 29.2% 26.4% 26.4% 30.2%
August 27.1% 19.9% 19.9% 23.3%
September 36.9% 27.5% 27.5% 33.6%
October 24.5% 30.4% 32.0% 36.6%
November 27.5% 30.4% 28.6% 33.0%
December 44.6% 48.6% 53.8% 46.8%
Annual 38.5% 32.5% 29.5% 34.7%
Source: Australian Bureau of Statistics: Tourist Accommodation NSW 8635.1.40.001
Comparison to other LGAs
Of the properties surveyed by the ABS in 2008, holiday rental properties in Port Stephens accounted for
38% of holiday rental properties on the North Coast. Port Stephens attracted 28.8% of lettings within the
Region and 34.0% of nights, with these figures being less than 'fair share'.
The annual occupancy rate in Port Stephens was 34.7%, which was below the regional average of 37.8%.
Coffs Harbour achieved the highest occupancy rate, 48.5%, however it has less than a quarter the number
of rental properties. The average length of stay in Port Stephens was 5.4 nights compared to the regional
average of 4.4 nights.
Port Stephens also achieved the highest average rate per occupied property per night, $133.28 compared
to $110.22 for the North Coast Region and $104.03 for Coffs Harbour.
In the first 6 months of 2009, the number of holiday property lettings in Port Stephens was up 1.3% over
the same period 2008, with Coffs Harbour being the only other LGA in the region to experience growth
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Port Stephens Tourism Plan ‐ Diagnostic Report
(13.5%). Regionally, the number of lettings was down by 17.1%, with lettings in Port Macquarie down
48.2% while Great Lakes was down 43.4%.
Over the same periods, nights spent in holiday rental properties in Port Stephens were up 8.3% on 2008,
well ahead of the regional average of 2.6%. Both Port Macquarie and Great Lakes experienced significant
decreases, with nights spent down 21.7% and 27.3% respectively.
In Port Stephens average takings were down 5.2%, while achieved rates per night per occupied dwelling
fell by 12.5%, with rates across the region falling by 3.4%. Coffs Harbour was the best 'performer'
achieving the highest rate in the region, $122.73, with rates being up 18.6% over the same period in 2008.
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Port Stephens Tourism Plan ‐ Diagnostic Report
6.10 Performance of Holiday Rental Accommodation ‐ Port Stephens 2005 ‐ 2008
No. Dwellings No. Lettings No. Nights Occupancy Av. Stay Takings Av. Rate Av. Rate
Booked Nights Occupied Total Dwelling/
Unit/Night Night
2005
March 1321 10509 66164 55.7% 6.3 $6,628,520 $100.18 $55.14
June 1342 10779 43541 35.7% 4.0 $2,098,370 $ 48.19 $17.18
September 1318 6218 37578 31.0% 6.0 $1,862.813 $ 49.57 $15.53
December 1312 8279 38902 32.2% 4.7 $4,639,225 $119.25 $38.86
Total 2005 1323 35785 186185 38.5% 5.2 $15,289,928 $ 81.79 $31.53
2006
March 1345 7388 51682 42.7% 7.0 $5,046,040 $ 97.64 $41.23
June 1269 8342 29869 25.9% 3.6 $2,977,502 $ 99.69 $25.78
September 1288 5876 29132 24.6% 5.0 $3,044,135 $104.49 $25.97
December 1315 9230 44199 36.5% 4.8 $5,108,160 $115.57 $42.69
Total 2006 1304 30836 154882 32.5% 5.0 $16,175,837 $104.44 $33.98
2007
March 1345 6705 43998 36.4% 6.6 $5,610,755 $127.52 $45.91
June 1379 3997 23350 18.6% 5.8 $2,245,027 $ 96.15 $17.89
September 1288 5876 29132 24.6% 5.0 $3,044,135 $104.49 $25.97
December 1384 7963 48688 38.2% 6.1 $6,673.977 $115.57 $52.99
Total 2007 1348 24541 145169 34.7% 5.9 $17,575,894 $104.44 $35.71
2008
March 1407 11752 58810 46.1% 5.0 $8,324,086 $141.54 $65.01
June 1307 6755 28209 23.7% 4.2 $2,974,270 $105.44 $25.01
September 1316 5037 35091 29.0% 7.0 $3,892,023 $110.91 $32.50
December 1300 7811 46459 38.8% 5.9 $6,673,977 $156.62 $61.51
Total 2009 1332 31355 167569 34.7% 5.4 $22,466,725 $133.28 $46.21
2009
March 1294 12364 59058 50.7% 4.8 $8,028,913 $135.95 $68.94
June 1228 6380 35224 31.8% 5.5 $2,677,672 $ 82.50 $24.23
% change 2005‐2008 0.7% ‐12.4% ‐9.5% ‐10.1% 3.3% 47.5% 62.9% 46.5%
Source: Australian Bureau of Statistics: Tourist Accommodation NSW 8635.1.40.001
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Port Stephens Tourism Plan ‐ Diagnostic Report
6.12 Comparison ‐ Holiday Lettings ‐ North Coast 2008
LGA No. Dwellings No. Lettings No. Nights Occupancy Av. Stay Takings ($) Av. Rate Av. Rate
Booked Nights Occupied Total Dwelling/
Unit/Night Night
Coffs Harbour 242 21414 42821 48.5% 2.0 4454594 $ 104.03 $ 50.49
Great Lakes 983 23007 136762 38.1% 5.9 12546918 $ 91.74 $ 34.98
Port Macquarie 321 11226 41679 47.5% 3.7 3952159 $ 94.82 $ 45.08
Kempsey 471 10854 66693 38.8% 6.1 5602725 $ 84.01 $ 32.56
Port Stephens 1332 31355 168569 34.7% 5.4 22466725 $ 133.28 $ 46.21
North Coast Region 3503 108706 483417 37.8% 4.4 53287886 $ 110.22 $ 41.68
Source: Australian Bureau of Statistics: Tourist Accommodation NSW 8635.1.40.001
6.13 Comparison of Performance ‐ January to June 2008 to 2009
LGA No. Dwellings No. Lettings No. Nights Occupancy Av. Stay Takings ($) Av. Rate Av. Rate
Booked Nights Occupied Total Dwelling/
Unit/Night Night
Coffs Harbour ‐2.3% 13.5% 14.5% 17.1% 0.8% 35.7% 18.6% 38.9%
Great Lakes ‐5.6% ‐43.4% ‐27.3% ‐22.9% 28.5% ‐31.8% ‐6.2% ‐27.7%
Port Macquarie ‐24.0% ‐48.2% ‐21.7% 3.1% 51.2% ‐39.5% 22.8% ‐20.4%
Kempsey ‐0.7% ‐29.1% ‐0.7% 0.0% 40.0% 5.8% 6.6% 6.6%
Port Stephens ‐7.1% 1.3% 8.3% 16.6% 7.0% ‐5.2% ‐12.5% 2.0%
North Coast Region ‐7.1% ‐17.1% 2.6% 10.4% 23.8% ‐0.9% ‐3.4% 6.6%
Source: Australian Bureau of Statistics: Tourist Accommodation NSW 8635.1.40.001
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Caravan Parks
The ABS data for Port Stephens Shire is collected from 14 caravan parks. The ABS provides data on the site
mix (long term permanent sites, sites occupied by holiday vans, powered and sites and cabins), site
occupancy and takings from accommodation. Long term permanent sites are not included in this analysis.
Site Mix
As at June 2009, there were 2,739 'tourist' sites, of which 55.1% were powered, 5.5% unpowered, with
14.8% occupied by cabins and units and 24.6% by holiday vans.
From 2005 to 2008 (calender years) the number of powered sites available for tourists fell by 20.8%. At
the same time there was a significant increase in the number of holiday vans (up 111.2%), with the
number of cabins and un‐powered sites also increasing. From 2007 to 2008 there was a decline in the
number of sites occupied by long term residents and it appears some of the holiday vans may have been
put onto these sites. (Table 6.14)
Table 6.14 Site Mix & Performance ‐ Port Stephens Caravan Parks 2005‐2009
2005 2006 2007 2008 2009(6mths) %
change
Establishments 14 14 14 14 14 0.0%
Total Tourist Sites 2578 2626 2623 2677 2739 3.8%
Site Mix:
Cabins 14.1% 14.4% 15.0% 16.0% 14.8% 17.9%
Powered Sites 68.6% 68.5% 64.6% 52.3% 55.1% ‐20.8%
Unpowered 4.7% 5.4% 5.5% 6.0% 5.5% 32.7%
Holiday Vans 12.7% 11.7% 14.9% 25.7% 24.6% 111.2%
Site Occupancy: Sites sold
All Sites 60.6% 62.8% 64.3% 70.3% 74.0% 15.9%
Pwd / Unpwd 51.2% 53.1% 52.9% 51.5% 59.2% ‐20.5%
Av Takings /
Occupied Site $22.64 $22.33 $21.65 $22.64 $23.61 0.0%
Source: Australian Bureau of Statistics: Tourist Accommodation NSW 8635.1.40.001
Table 6.15 provides a comparison of the site mix and performance of the caravan park sector in Port
Stephens with that of other LGAs within the North Coast Region. The comparison is for 2008. In terms of
tourist sites available in the Region, Port Stephens ranks third behind Great Lakes Shire (3,452 sites) and
Coffs Harbour (2,904 sites).
In its site mix, Port Stephens has the highest proportion of holiday vans, being more than double that
available in all other LGAs except Taree. Port Stephens has a lower proportion of cabins, powered and
unpowered sites, with unpowered sites in particular being very low.
Site Occupancy
In 2008, Port Stephens achieved the highest site occupancy rate within the region, 71.9% for all sites,
compared to the regional average of 58%. Parks in Coffs Harbour averaged 57%, with Port Macquarie and
Great Lakes achieving 51% and 59% respectively. The higher proportion of holiday vans in Port Stephens
contributes to the high occupancy rates. Excluding sites occupied by holiday vans and cabins, Port
Stephens achieved 51.5% occupancy of its powered and unpowered sites, which was significantly higher
than the regional average of 42% (see Table 6.15).
From 2005 to 2008, the occupancy rate for total sites in Port Stephens increased, from 60.6% to 70.3%,
increasing to 74% in the first six months of 2009, buoyed by the increase in number of sites occupied by
permanent holiday vans. Over this same period, the number of sites sold increased by 15.9%. The
occupancy rate achieved in the first 6 months of 2009 was higher again, at 74.0%. (Table 6.16)
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Over the 4 years, there was a 20.5% reduction in the number of powered and unpowered sites sold in Port
Stephens. The reduction in the number of sites available has enabled the site occupancy rate to remain
relatively constant, 51% to 53%. (Table 6.17)
Seasonality ‐ Monthly Site Occupancy Rates
Demand for caravan parks is highly seasonal, with a very strong and concentrated peak in January. In
January the parks are operating at or close to capacity, with total site occupancy being 91.7% in January
2008, with 85.2% occupancy of powered and unpowered sites.
In winter, the occupancy rates for powered and unpowered sites is low, fluctuating around 35% for the
winter months in 2008. Occupancy rates for powered and unpowered sites in winter have decreased over
the past 4 years. Over the same period, there has been growth in the shoulder season occupancy rates.
Monthly occupancy rates in January and February 2009 were lower than for the same period in 2008,
however the rates from March through to June were higher. This may be due in part to changes in travel
behaviour as a result of the economic downturn, with people postponing their Christmas holidays in 2009,
waiting to see what was happening. There has also been a shift to people taking lower cost holidays ‐
holidaying outside of peak periods and an increase in the number of campers.
Table 6.16 Monthly Site Occupancy Rates ‐ All Sites‐ Port Stephens Caravan Parks
Month 2005 2006 2007 2008 2009
January 79.6% 81.8% 85.8% 91.7% 88.1%
February 70.6% 72.1% 75.2% 79.0% 76.8%
March 67.9% 68.0% 71.4% 76.5% 73.6%
April 64.1% 67.0% 71.5% 68.6% 74.7%
May 59.3% 58.9% 62.4% 63.9% 65.7%
June 59.2% 57.9% 60.1% 62.9% 65.1%
July 58.8% 56.6% 56.6% 62.1%
August 58.6% 56.4% 56.4% 63.0%
September 64.0% 62.0% 62.0% 68.4%
October 62.7% 67.6% 67.6% 73.8%
November 62.4% 66.0% 66.0% 71.2%
December 64.1% 69.3% 69.3% 76.7%
Annual Average 64.4% 65.5% 67.1% 71.9%
Source: Australian Bureau of Statistics: Tourist Accommodation NSW 8635.1.40.001
Table 6.17 Monthly Site Occupancy Rates ‐ Powered and Unpowered Sites‐ Port Stephens Caravan
Parks
Month 2005 2006 2007 2008 2009
January 72.1% 75.8% 80.0% 85.2% 80.0%
February 59.7% 62.9% 65.8% 67.0% 48.5%
March 56.1% 57.5% 60.6% 58.2% 59.7%
April 50.7% 56.3% 53.1% 45.5% 54.9%
May 44.1% 44.1% 38.1% 37.4% 47.7%
June 44.0% 42.6% 34.2% 35.6% 39.9%
July 44.0% 40.9% 40.9% 34.5%
August 43.7% 40.6% 40.6% 36.2%
September 51.0% 48.2% 48.2% 45.5%
October 49.3% 56.0% 56.0% 57.2%
November 48.9% 53.8% 53.8% 52.9%
December 51.3% 58.3% 58.3% 62.0%
Annual Average 51.2% 53.1% 52.9% 51.5%
Source: Australian Bureau of Statistics: Tourist Accommodation NSW 8635.1.40.001
Seasonality is an issue throughout the North Coast Region, with strong January peaks and low occupancy
at other times. (see tables 6.18 and 6.19)
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Table 6.15 Comparison of Caravan Park Performance ‐ North Coast Region – 2008
Port Stephens Bellingen Coffs Harbour Great Lakes Kempsey Port Nambucca Taree North Coast
Macquarie
Establishments 14 5 21 16 10 18 9 11 104
Total Tourist Sites 2677 518 2904 3452 1511 2307 1338 1648 16361
Site Mix:
Cabins 16.0% 18.9% 16.9% 16.2% 19.5% 21.3% 19.5% 19.5% 17.3%
Powered Sites 52.3% 57.8% 60.8% 56.9% 64.9% 58.4% 64.9% 61.6% 58.9%
Unpowered 6.0% 15.5% 18.3% 14.4% 11.5% 15.3% 10.1% 11.8% 13.9%
Holiday Vans 25.7% 7.8% 4.0% 12.5% 3.3% 4.9% 5.5% 19.5% 10.0%
Site Occupancy
All Sites 71.9% 46% 57% 59% 40% 51% 59% 60% 58%
Pwd / Unpwd 51.5% 26% 46% 43% 29% 34% 45% 46% 42%
Av Takings /
Occupied Site $22.64 $25.33 $27.70 $19.99 $30.02 $28.19 $24.27 $24.79 $24.57
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Table 6.18 Comparison of Site Occupancy Rates, All Sites ‐ North Coast – 2008
Month Port Stephens Bellingen Coffs Harbour Great Lakes Kempsey Port Nambucca Taree North Coast
Macquarie
January 91.7% 54% 73% 80% 68% 67% 70% 76% 76%
February 79.0% 43% 51% 63% 38% 49% 59% 60% 58%
March 76.5% 47% 55% 62% 42% 51% 61% 64% 59%
April 68.6% 38% 52% 59% 44% 47% 58% 59% 56%
May 63.9% 37% 50% 55% 38% 45% 51% 57% 52%
June 62.9% 35% 51% 54% 35% 45% 52% 57% 51%
July 62.1% 43% 57% 50% 32% 49% 59% 55% 52%
August 63.0% 59% 57% 50% 30% 48% 50% 54% 53%
September 68.4% 59% 59% 53% 36% 51% 61% 58% 56%
October 73.8% 45% 59% 60% 37% 56% 64% 63% 60%
November 71.2% 43% 545 58% 32% 51% 56% 58% 58%
December 76.7% 43% 65% 63% 42% 55% 57% 65% 62%
Annual Average 71.9% 45.5% 57% 59% 40% 51% 59% 60% 58%
Source: Australian Bureau of Statistics: Tourist Accommodation NSW 8635.1.40.001
Table 6.19 Comparison of Occupancy Rates of Powered & Unpowered sites ‐ North Coast Region ‐ 2008
Month Port Stephens Bellingen Coffs Harbour Great Lakes Kempsey Port Nambucca Taree North Coast
Macquarie
January 85.2% 36% 66% 71% 63% 55% 61% 68% 66%
February 67.0% 23% 42% 50% 29% 33% 48% 48% 45%
March 58.2% 26% 44% 46% 32% 34% 47% 50% 44%
April 45.5% 14% 40% 43% 35% 29% 44% 44% 38%
May 37.4% 12% 38% 38% 27% 25% 35% 42% 34%
June 35.6% 10% 39% 37% 23% 26% 36% 41% 34%
July 34.5% 23% 47% 29% 20% 30% 45% 38% 34%
August 36.2% 45% 47% 29% 18% 29% 46% 37% 35%
September 45.5% 44% 48% 33% 25% 33% 48% 42% 39%
October 57.2% 26% 45% 45% 26% 40% 51% 49% 44%
November 52.9% 23% 39% 42% 20% 34% 41% 44% 39%
December 62.0% 23% 53% 49% 32% 38% 43% 52% 47%
Annual Average 51.5% 26% 46% 43% 29% 34% 45% 46% 41%
Source: Australian Bureau of Statistics: Tourist Accommodation NSW 8635.1.40.001
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Takings from Accommodation
From 2005 to 2008, total takings from caravan park accommodation increased by 15.9% to $15.9 million.
In 2008, the average achieved rate per occupied site per night was $22.64. (Note: the figure appears low
as it includes sites occupied by Holiday Vans which pay a minimal site rental when not in use). This rate
was the second lowest in the North Coast Region, with Great Lakes having the lowest rate at $19.99. The
Kempsey caravan parks achieved the highest rate, $30.02 per site, with the regional average being $24.57.
The low rate in Port Stephens is surprising given the proportion of cabins and holiday vans which are
higher yielding and the very low proportion of unpowered sites, which are lower yielding.
The rate achieved in 2008 was the same as that achieved in 2005, with rates being marginally lower in
2006 and 2007. The rate for the first 6 months of 2009 was marginally higher ($23.61), however was still
below the regional average ($24.97) for this period.
Main Findings
Although the ABS figures are somewhat 'questionable' as they rely on the accuracy of information
provided by operators, the figures do indicate that:
There has been a decline in the demand for powered and unpowered sites over the past 4 years.
The rate achieved per occupied site is low and has shown no growth in the past 4 years. During this
period, there has been a change in the mix of accommodation provided. The change should have
increased the achieved rates.
Seasonality is a significant issue. While there has been some improvement in the shoulder season
performance, the performance in winter is poor, particularly for powered and unpowered sites.
6.4 Issues with the Accommodation Sector
Tomaree Peninsula
Oversupply of rooms and apartments for 11 months of the year. Seasonality is a significant issue
A significant proportion of the accommodation stock, mainly motel rooms and holiday rentals are
older style properties that are tired and dated in design and fitout. These will become increasingly
difficult to 'sell'. (Note: most of the caravan parks are well maintained and presented).
Allied to this, a number of the hotel and resort properties are part of national or international groups.
As the properties are smaller and not 'cash cows', they are not priorities for refurbishment. Managers
at these properties are also rotated regularly.
The market is becoming increasingly sophisticated and demanding in their expectations. Many of the
properties in the area do not meet needs and expectations.
Conflict between residents and visitors, due to different aspirations and behaviours.
Security issues resulting from high vacancy rates, and a turn over of occupants.
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Tilligerry Peninsula
The area is under supplied with motel rooms
Raymond Terrace
Much of the motel product is tired and in need of modernisation and refurbishment.
As Raymond Terrace develops, as a regional centre there will be increased demand for 4‐4.5 star
standard, town centre accommodation.
Karuah
Motel product is tired and in need of modernisation and refurbishment.
6.5 Sustainable Environmental Practices
Environmental sustainability is becoming an increasingly important issue that needs to be addressed by
tourism operators. With significant increases in the costs of electricity, gas, water and waste disposal,
‘green’ is becoming the new ‘black’. Initiatives that are starting to be introduced by accommodation
properties to reduce both operating costs and carbon foot‐prints include:
On‐site power generation (with surplus power being sold back to the grid).
Use of energy efficient light bulbs and appliances.
Reduction in water and gas use through more efficient shower heads and toilet cisterns and other
usage saving devices.
Recycling of grey water and the use of rainwater tanks.
Introduction of occupancy‐based air conditioning systems.
Paperless offices.
Elimination of plastic bottles for toiletries.
Purchasing food produced in the immediate surrounding area.
Use of non‐hazardous chemicals.
Composting of organic wastes for use in gardens.
While PSTL currently has a sustainability policy, it will need to play a more active role in encouraging
sustainable environmental practices amongst operators. Members will be looking to PSTL to provide
education and information in this area.
6.6 Accommodation Opportunities
While the Tomaree Peninsula is over‐suppled with accommodation, some of the accommodation stock
(particularly motels and holiday rentals) is tired, dated and becoming increasingly difficult to sell. The
market is becoming more sophisticated and demanding. There will remain a need for new quality
accommodation in the area, with the preference being for the Shoal Bay and Nelson Bay areas.
Other opportunities include:
Low rise quality eco‐style resort, in the Anna Bay ‐ One Mile area.
Additional motel rooms in Lemon Tree Passage, preferably through the expansion of the existing
motel.
Airport Hotel ‐ medium to longer term
CBD Hotel ‐ Raymond Terrace ‐ medium to longer term
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7. CONFERENCES & MEETINGS
Port Stephens has a small conference and meetings market. When Peppers Anchorage and Horizon Golf
Resort first opened, the area had a very high profile as a conference and meetings destination. The
success of the properties stimulated interest and confidence in conference hotels and resorts which
contributed to investment in this style of property in the region surrounding Sydney and also in coastal
destinations. As new properties came on line and the facilities at Peppers and Horizons became dated,
Port Stephens largely lost its market profile.
7.1 Venues
The main venues used for conferences and meetings in Port Stephens are summarised below.
Table 7.1 Conference and Meeting Venues in Port Stephens
Venue Location Capacity of Largest Room Room Configuration & Capacity
Theatre Banquet
Venues with Accommodation
Shoal Bay Spa & Resort Shoal Bay 300 200 1 large room divisible into three rooms
4.5* 201 apartments – 120, 90, 80 theatre style
Boardroom – 16 board room style
9 villas each able to accommodate 20
board room style
Marina Resort Nelson Bay 200 120 1 large room divisible into two rooms –
3.5* 44 rooms each 100 theatre style
Boardroom – 30 theatre/18 boardroom
Le Meilleur Horizons Salamander Bay 180 140 1 large room divisible into two rooms –
4.5* 27 apartments 120, 60 theatre style
Boardroom – 20 board room style
Marque for banquets – up to 650
All Seasons Hotel Salamander Bay 150 150 Three rooms – 150, 110. 80 theatre
3.5* 90 rooms Boardroom – 12 board room style
Peppers Anchorage Corlette 140 120 2 rooms – 140, 70 theatre style – each
4.5* ‐ 80 rooms divisible into 2 – 2x70, 2 x 30
Oaks Pacific Blue Salamander Bay 140 90 1 meeting room – 140 theatre style
4.5* 176 apts / 34 rms
Shoal Bay Holiday Park 3‐ Shoal Bay 70 70 1 meeting room – 70 theatre style
4* 44 cabins
Aqua Blue Resort Nelson Bay 14 board 1 board room – 14 board room style
49 apartments room
Motto Farm Motel Raymond Terrace 140 120 2 rooms, each 140 theatre style
80 rooms
Sir Francis Drake Raymond Terrace 60 50 3 rooms – 60, 20,14 theatre
3.5* 40 rooms
O’Carrollyns One Mile Beach 30 I meeting room – 30 theatre style
3.5* 9 bungalows
Venues without Accommodation
Nelson Bay Diggers Nelson Bay 600 500 Auditorium + 1 meeting room
Nelson Bay Golf Club Nelson Bay 250 250 Auditorium
Nelson Bay Bowling Club Nelson Bay 330 300 3 rooms – 330, 90,70 – smaller room
divisible into two 30, 20 theatre
Lemon Tree Passage Lemon Tree 350 300 Auditorium + large room 200 – divisible
Bowling Club Passage into 3 – 120, 50, 50
RT Bowling Club Raymond Terrace 200 180 Auditorium 200+ Board room 18
Murrook Williamtown 300 1 large room
Cruising Venues
Moonshadow Nelson Bay 300 200‐250 Three Boats – capacities 300, 250 100
theatre style
Imagine Nelson Bay 60 60 60 theatre style
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Venues with Accommodation
Port Stephens has 11 accommodation properties that have in‐house conference and meeting rooms, 9 of
which are on the Tomaree Peninsula with two in Raymond Terrace. Shoal Bay Spa and Resort is the main
conference hotel, with state‐of‐the art conference and meeting facilities for up to 300 delegates. The
capacity to cater for a 300 delegate conference depends on the number and capacity of break‐out rooms
required and the conference program (whether there is time to change the plenary room to breakout
rooms and vice versa). The Resort is ideal for smaller meetings – up to 200 delegates, with the property
having 9 villas that can be used for small meeting and breakout rooms.
The lack of breakout rooms to support the main conference space is also an issue with the facilities at
Horizons and the Marina Resort, with these properties only having one meeting room. Horizons can erect
a marquee on the lawn terrace to provide function space (maximum capacity 650 guests). All Seasons
Salamander Shores Hotel and Peppers Anchorage can both cater for meetings of around 140‐150 and have
the breakout rooms to support them. The main issue with these 4 venues is their age, with the facilities
being tired.
The Shoal Holiday Park offers a ‘lay‐back’ experience with guests staying in cabin accommodation.
O’Carrollyns is ideal for small meetings looking for a ‘retreat’ venue.
The two motels at Raymond Terrace are mid range venues that attract small meetings from businesses
and organisations located in the western suburbs of Newcastle and the industrial areas at Heatherbrae,
Tomago and Williamtown as well as RAAF meeting business. The Sir Francis Drake is the more popular
venue. Motto Farm lost its market base as the property was very run‐down. It is however under new
management and currently being renovated.
Licensed Clubs
The majority of the Licensed Clubs in Port Stephens have an auditorium/function room, with a number of
the clubs also having a board room and/or meeting room. The Diggers Club at Nelson Bay is undergoing a
major refurbishment and will provide a large auditorium for 600 theatre style and possibly another smaller
meeting room. The Club will not have breakout rooms, which will limit its ability to attract conferences.
The Club is proposing to develop onsite accommodation and is also exploring the feasibility of developing
a 2,000 seat conference and entertainment venue at some time in the future.
The Nelson Bay Bowling Club has quality meeting rooms with the Club able to accommodate 330 theatre
style. The Club has the breakout rooms to support this size conference, with accommodation available
within a few minutes walk of the Club.
The Bowling Clubs at Lemon Tree Passage and Raymond Terrace are mid‐market venues that primarily
cater for local and regional meetings. The LTP Bowling Club has an auditorium which can cater for 350
theatre style with another large room that can be subdivided into three small meeting – break out rooms.
While the Club receives enquiries for conferences and multi‐day meetings, there is not sufficient
accommodation in the area to accommodate this business, with the motel only having 11 rooms. The Club
does not have any audio visual equipment.
Other Venues
The Murrook Cultural Centre at Williamtown has a large auditorium which can accommodate around 300
for a meeting. The room is basic and not air‐conditioned, with onsite catering available. The nearest
accommodation is 15‐20 minutes drive from the Centre. Murrook attracts the occasional meeting,
primarily from Government and Welfare organisations.
Port Stephens also has a number of ‘floating’ venues, with Moonshadow (3 boats) and Imagine Cruises
able to cater for on‐board meetings. The vessels plus a number of other cruise operations (eg Tamboi
Queen) are ideal for functions and tours for conferences held in the area. For functions Moonshadow can
accommodate 200‐250 on one vessel, and has a combine capacity of around 400 – 500 depending on the
dining set‐up. Imagine is ideal for smaller groups, up to 60 delegates.
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7.2 Support Infrastructure
Depending on the type of conference, factors (in addition to venue size and characteristics), taken into
consideration by conference organisers in selecting a location and venue include:
Venue management and the level of service provided by the venue ‐ conference organisers prefer
venues with professional management, with rooms and equipment set‐up and technical and support
staff on‐site to assist.
Accommodation – availability, quality and location in relation to the conference / meeting venue.
There are some conferences (eg training seminars) which require the meeting rooms,
accommodation and dining facilities to be in one complex. Most conference organisers prefer the
accommodation to be at or within easy walking distance of the venue, with the preference being for
4 to 4.5 star accommodation.
Ground transport – if accommodation and venues used by the conference are not within walking
distance, the logistics and costs of transporting delegates becomes an issue.
Location and access – for larger conferences – air access for delegates will be an important
consideration. Capacity and frequency of service are the main considerations as organisers often
need to fly speakers in and out on a half day turn‐around.
Access to equipment – electronic whiteboards, power point projectors etc. Hiring in equipment,
particularly if it has to be brought from out‐of‐town, can be cost prohibitive.
Opportunities for pre and post conference tours, partner programs, technical tours and conference
activities.
Opportunities for ‘themed’ functions, off‐site dinners etc.
Professional Conference Organiser – while most conferences bring in a conference organiser, some
will look to use a local service.
Sponsorship ‐ Conference organisers look to reduce costs by attracting local sponsorship. Local
Councils and local clubs and organisations are often asked to sponsor a dinner or conference activity,
assist with transport and/or set‐up costs and waive venue hire fees.
Port Stephens has this infrastructure in place on the Tomaree Peninsula. In addition it can offer a superb
setting and wide range of soft adventure based team building activities, tours, golf (4 championship
courses) and dining and entertainment options. The Tomaree area can accommodate conferences up to
300 delegates for conferences requiring in‐house accommodation, up to 330 delegates for conferences
requiring access to break‐out rooms but not requiring in‐house accommodation and will be able to
accommodate conferences and meetings up to 600 delegates provided that there is no requirement for
break‐out rooms (Note: these type of conferences are rare).
One issue that needs to be addressed is access from the airport. While it is possible to organise coach or
mini‐coach transfers, the taxi fare for individuals to the Tomaree Peninsula is very expensive.
Lemon Tree Passage does not have the accommodation to support conferences and meetings involving
over night stays. All conference and meeting equipment also needs to be brought into the Club. Raymond
Terrace has the facilities and supporting infrastructure for mid‐market day and residential style small
meetings but does not have the capacity to accommodate conferences requiring breakout rooms.
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7.3 Competitive Environment
The conference and meetings market is highly competitive. Locally, Port Stephens is primarily competing
with Newcastle and Hunter Wine Country. For the market that will drive out of Sydney, Port Stephens is
competing with venues in the Hunter, Central Coast, Blue Mountains, Southern Highlands and Illawarra
areas. For organisations looking to meet on the NSW North Coast, Port Stephens is competing primarily
with venues in Port Macquarie and Coffs Harbour as well as the new resort venues at Kingscliff on the far
North Coast.
Newcastle City
Newcastle City has more than 20 venues that provide purpose‐built, quality conference, meeting and
functions facilities, with 9 of these venues being waterfront. Eleven venues have on‐site 4‐4.5 star hotel
and/or hotel apartment accommodation. There are 4 hotels / serviced apartments projects under
construction that will come on‐line within the next 12‐18 months adding to the supply of conference and
meeting venues available. There are 5 venues in Newcastle that can accommodate over 1,000 delegates,
the largest of which is the Entertainment Centre with the capacity for 6,200 delegates theatre‐style. Only
one of these larger venues, Wests Leagues Club, has on‐site accommodation.
Newcastle City has an active Convention Bureau that has been successful in attracting large conferences
and meetings to the City. The Bureau handles around 350‐400 inquiries per year from organisations
looking to hold conferences and meetings in the City and surrounding area. This is in addition to the
business that contacts venues directly. Most of the larger venues and hotels have dedicated sales and
marketing staff who actively target the market.
The Bureau is membership based, and has members from Newcastle, Hunter Wine Country, Port Stephens
and Lake Macquarie. It runs a successful ‘Ambassador’ program where it works with academic, business
and professional institutions and organisations to bring conferences into Newcastle.
Hunter Wine Country
Hunter Wine Country (centred on Pokolbin) offers an extensive range of conference and meeting facilities,
including 15 hotel‐resort properties with purpose‐built conference – meeting rooms. There are also a
range of stand‐alone function and meeting venues at the various wineries, restaurants and licensed clubs
in the area. The area can accommodate conferences of 300‐400 delegates. The area has just over 2,000
accommodation rooms, with a further 11 properties proposed or under construction. If these properties
all proceed (which is unlikely) they will provide additional conference and meeting rooms, plus around 500
additional hotels rooms and up to 1,200 villas.
Wine Country primarily targets small to medium size corporate and association conferences and meetings
as well as the incentive business market. The area is attracting an increasing number of tour groups of
conference delegates (primarily international) who are attending conferences in Sydney and visit the
Hunter as a day trip as part of the conference program, and/or as a pre or post conferences tour.
Hunter Wine Country has a Convention Bureau as part of its Tourism Association. The Convention Bureau
functions solely as a service, handling enquiries received from organisations looking to hold conferences in
the area. It also organises the conference tour programs for conferences being held in Sydney. The
Bureau does not have the budget or resources to chase business.
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7.4 The Market
Port Stephens
The market attracted to venues in Port Stephens includes:
Tomaree Peninsula:
Corporate meetings and training seminars – these are main residential meetings involving 1‐3 night
stays. Corporate business is coming primarily from the Lower Hunter and Sydney.
Government agency meetings – both internal and inter‐agency meetings. This is more a mid‐range
market and includes both day and meetings involving overnight stays.
Smaller associations.
Conferences and meetings are primarily a mid‐week market. The market has been seriously affected by
the global financial crisis. Peppers amalgamation into the Stella marketing network has also affected the
local market, as the property no longer has dedicated sales staff. Peppers also has to compete internally
with a range properties, some of which are lower cost venues. Horizons is in a similar position.
Lemon Tree Passage ‐ The meeting market is small with the LTP Bowling Club attracting the occasional day
meeting from businesses in the Williamtown – Tomago area and occasionally from the industrial estates
along the Hunter River.
Murrook ‐ Murrook primarily attracts day meetings from Government Agencies, welfare organisations and
indigenous groups, that are looking for a budget venue that is readily accessible to Newcastle and Port
Stephens. Some of these meetings involve delegates or speakers that fly in through Newcastle Airport.
Raymond Terrace ‐ Raymond Terrace attracts both day meetings and residential workshops and training
sessions. Most of the groups are small, around 15‐20 delegates, with the occasional group of 50‐60. Most
business is generated locally from the Raymond Terrace area, Tomago, Williamtown and businesses from
the western suburbs of Newcastle.
Newcastle & Wine Country
Newcastle City has concentrated on building ’new’ business for the area. The City has focussed on
building the association market, primarily targeting organisations that have ‘links’ or ‘themes’ associated
with the City. It has been very successful in building the academic and research markets – attracting State,
National and international conferences and meetings. As air services to the region expand, the City will be
very well placed to build both the National and International professional and academic association
markets. It will also become a viable alternative to Sydney for national corporate meetings, offering a
similar standard ‘product’ but at more competitive rates. At present Newcastle is experiencing
accommodation capacity constraints. This mitigates against building the corporate market which has a
relatively short booking lead time (as opposed to the Association market which generally locks in dates 1
to 5 years ahead).
Most of the hotels in Newcastle are targeting the small corporate meetings market, primarily out of
Sydney. This is direct competition to Port Stephens. Newcastle is located closer to Sydney. The properties
are also newer and more closely orientated to the needs of the business market. Most properties have
dedicated sales and marketing staff, either in‐house or through the chain, that are very active in the
market.
Hunter Wine Country is positioned as an up‐market ‘incentive’ based conference destination. It primarily
attracts corporate business, professional associations and associations that have a strong social –
networking focus in which recreational activities are important. Companies often perceive the destination
as a ‘reward’ for staff. It is also popular as a ‘retreat’ location for executive meetings, strategic planning
seminars etc.
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7.5 Outlook and Opportunities for Port Stephens
The conference and meetings market to the Lower Hunter region will continue to grow, with Newcastle
positioned to become the leading conference destination outside of Sydney. As air services expand into
Adelaide, Perth, Hobart and Darwin, Newcastle will be ideally positioned to target National conferences
(particularly those that rotate between the States) offering a cost‐competitive alternative to Sydney.
Newcastle can offer both a city and beach experience (without the congestion of Sydney) with ready
access to the Hunter wineries. Likewise the expansion of air services will open up the market for Hunter
Wine Country, particularly for corporate business from companies that have interstate offices.
Both Newcastle and Hunter Wine Country have the venues, infrastructure and resources in place to grow
their markets. In addition to the activities of the Newcastle Convention Bureau, most of the venues in
both areas have sales and marketing teams working to build business.
In contrast, Port Stephens does not have the same depth of product or the resources. While PSTL has a
Business Events marketing group, this group does not have the resources to compete head‐on with either
Newcastle or Wine Country. The opportunities for Port Stephens (primarily the Tomaree properties) lie in:
Establishing a marketing relationship with Newcastle, with Port Stephens being one of the sub‐
regional destinations that Newcastle promotes. The ‘advantages’ that Port Stephens would bring to
the mix are additional ‘themes’ in relation to its defence and aeronautical sectors and the Marine
Park. It would also provides Newcastle with a coastal resort destination as well as a destination for
‘team building’ conferences and meetings that are looking for outdoor and soft‐adventure activities.
For the international market, Port Stephens also provides the opportunity for dolphin and wildlife /
koala viewing.
Establishing Port Stephens as a pre and post conference tour destination and also as a day trip
destination for conference delegates and partner programs.
Targeting the regional conference and meetings market – drawing from the Hunter Valley (including
the mines) and the Central Coast. Within the Region, the Newcastle CBD venues and the Wine
Country Resorts are perceived as being up‐market, expensive destinations. Newcastle also has a
reputation of being ‘booked’ out with accommodation being difficult to find (particularly for groups)
and over‐priced. There is opportunity for Port Stephens to position itself as a mid‐priced destination
that offers a range of 3.4 to 4.5 star reasonably priced venues. It also offers a ‘beach / resort’
experience rather than the city experience of Newcastle.
The other local market is the regional meetings market, in which organisations (eg, banks and
financial institutions, retail chains, employment agencies, government agencies, local government
etc) bring together their employees from throughout the area for briefings, training etc. Port
Stephens is potentially a cost effective and attractive location for these type of meetings. Organisers
are generally looking for more mid‐range, reasonably priced venues, particularly for training and
sales workshops and seminar.
Targeting regional functions – there are a range of organisations that hold annual Christmas
and/or end of financial year functions, as well as functions as ‘rewards’ for staff
performance. Due to drink‐drive and employer responsibility considerations, companies
sometimes hold their functions at venues with accommodation and book rooms for staff
(incentive / reward). Port Stephens properties are ideal for this type of business.
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8. EVENTS
Events form part of the attraction and activity base of Port Stephens and contribute to building visitation,
reducing seasonality and increasing the profile of the area in the marketplace. For nearly 11 months of the
year the tourism sector in Port Stephens operates with excess capacity, with events being one of the
‘tools’ that can be used to address this.
8.1 Events in Port Stephens
The main events for each locality within Port Stephens are summarised in the following Table. While the
scale of events between the Tomaree Peninsula and the other localities in the LGA is very different, the
visitation generated by the events in these localities is just as important to the local business communities
as the major events are on the Tomaree Peninsula.
Table 8.1 Main Events by Locality – Port Stephens LGA.
Event Timing Estimated Attendance
Tomaree Peninsula
New Years Eve at the Marina New Years Eve 5,000+
Nautilus Boat Insurance Interclub Game Feb ‐ March 200+ boats, 1000 anglers + family & friends
Fishing Tournament 14 days
Club Marine Trailerboat Sports Fishing March 400+ boats, 1500 competitors + family &
Tournament 1 weekend friends – 3000‐4000 spectators
Sail Port Stephens April ‐ 1 week 60‐100 boats ‐ 750+ competitors + family &
friends
Port Stephens Golf Cup May – 6 days Up to 240 competitors
Triathlon NSW Club Championships May – 1 day 500+
Blue Water Country Music Festival June – 4 days 20,000 ‐30,000
Port Stephens Classic Golf Tournament August – 6 days Up to 240 competitors
Shoal Bay Jazz & Wine Festival September – 1 day
Celtic Festival Sept – 1 weekend
Port Stephens Whale Festival Sept / Oct – 1 week
Tastes of the Bay Food, Wine & Jazz Nov – 1 weekend 9,000 – 10,000
Air Show Biennial – 1 day 15,000+
Raymond Terrace
RT Open Tennis Tournament Easter ‐ 3 days 500+
RT Junior Open Tennis March ‐ 2 days 500+
Tilligerry Peninsula
Tilligerry Arts Show & Festival Nov – 1 weekend
Tilligerry Motorama Car Show May ‐ 1weekend 250 – 300 cars
Karuah
Timber & Oyster Festival March – 1 weekend
Karuah River of Music – Blue Grass Festival May ‐ 1 weekend 200‐300 visitors
Karuah Fun Run May – 1 day
Attendance figures are estimates provided by the Event Organisers / local community groups
Tomaree Peninsula
The Tomaree Peninsula hosts 12 significant events each year, plus the Airshow, which is expected to
become a biennial event. These events bring 50,000+ visitors per year into the area, many of whom stay
one or more nights. There are also a diverse range of small events – markets, entertainment, bowls
tournaments and sporting activities that generate visitation.
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With more than 2,500 rooms in the area, the Tomaree Peninsula has the accommodation capacity to cater
for large events. The ability to grow the event sector is however limited by the scale and capacity of the
venues and locations available, and the physical ability of the area to accommodate large numbers of
people. For large events, access and parking are major issues. The strongest potential lies in growing
water‐based events (surf carnivals, surfing tournaments, wind and kite surfing competitions, boating and
fishing etc) as the land‐based venue and support infrastructure requirements are relatively limited.
Likewise, golf and bowls tournaments bring visitors into the area without creating significant logistical
problems.
Raymond Terrace
While Raymond Terrace does not have a major tourism event, it regularly hosts a range of large sporting,
equestrian, motorcycle, boating and water skiing events, including two high profile tennis tournaments
and at least one State or National power boating event each year.
The Business Association is exploring options to value‐add to existing activities and develop a signature
event and/or a program of smaller events for the town. The town has the space and infrastructure to
cater for large day events and for medium‐sized weekend and longer stay events.
Tilligerry Peninsula
The main event on the Tilligerry Peninsula is the Annual Arts Show and Festival. This is a local community
event which is similar in format to other events in the region – rides, stalls and entertainment. The
potential to grow the event in its current format is limited.
The Tilligerry Motorama car show is growing in popularity each year, with cars from all over NSW coming
into Lemon Tree Passage for the event. There is a motorhome club (20 rigs) booked in for the show in
2010. The event is recognised by vintage and veteran car clubs and associations and is included in the
annual ‘Shannon’ calendar of car events. This event has the potential to grow quite significantly and to be
used as the impetus for growing the car club rally market.
Lemon Tree Passage also hosts an annual darts tournament, which is attracting an increasing number of
competitors. The caravan park is working with the Tilligerry RSL Sports Club to grow this event.
The Tilligerry Peninsula has a number of areas that are ideal for outdoor events – MacCann Park, the
foreshore reserve adjacent to Cook Parade and the sporting complex at Mallabula, with the Bowling Club
having a large auditorium for event functions. The limited supply of accommodation is the main constraint
to growing the event market. One option for the Motorama would be allow temporary event‐based
camping on MacCann Park or at the sporting complex (showers, toilets etc are available).
Karuah
Karuah has three main events each year, the Timber & Oyster Festival, River of Music and the Fun Run, as
well as a number of small events such as the Car Boot Sale (200+ visitors), Arts & Craft Sale, Carols by
Torch Light (500+) and the annual Garage Sale. The River of Music and the Fun Run are growing in
popularity and have the potential to become more significant events. The Music Festival could ‘out grow’
the accommodation available in the town, with the need to use the oval (or other open space area) for
event‐related camping.
The Timber and Oyster Festival is ‘tired’ and needs to be revamped. The oysters need to become a more
significant feature of the event. Once the boat ramp is upgraded, the Chamber is considering running
some form of fishing competition. The community needs advice and assistance, particularly with
marketing and promotion, to take its events to the next level.
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8.2 The Event Framework
The benefits of a strong program of events has been recognised in a number of the strategic plans
prepared for the LGA and individual localities, with the need to build events, both for social and economic
development purposes, forming part of the strategic actions.
The Council Plan 2008 – 2012 sets the direction for developing both community and tourism events. For
cultural events (primarily local community events), Council’s objective is to increase the range of Council
sponsored or supported events in the LGA from 12 to 21. Funds and resources have been allocated to
achieve this. Under Economic Sustainability, one of the objectives includes boosting Port Stephens
tourism industries by broadening the market base, including diversification through events.
There are three sections in Council currently involved in building the events sector:
Economic Development Unit – the Unit is responsible for developing both tourism and community
events. Through Events Port Stephens, the Unit is implementing the Tomaree Events Strategy which
focuses on growing major events that have the potential to generate significant economic benefit for
the LGA. The Unit is also working with locality based groups to implement their Community
Economic Development Plans, which include strategies relating to event development. Business Port
Stephens / Council also supports Nelson Bay Town Centre Management, which organises a number of
Nelson Bay events and has the development of events as one its strategic directions.
Recreation Services – The Unit has formulated and is implementing a Sports Tourism Marketing Plan
to attract sporting events to the LGA.
Community Services – As part of Council’s Cultural Sustainability directions, funding and resources
have been allocated to grow cultural events within the LGA.
Council has an event calendar on its website, however the calendar has very few events listed and does
not appear to be being used by local organisations to list their event.
A number of tourism and business operators organise events to build visitation. While most of these
events are small and targeted (eg the events organised by Murrays Brewery and Oaks Pacific Blue Resort),
there are a number of events organised by d’Albora Marina that bring significant numbers of visitors into
Nelson Bay. A number of tourism operators were involved in the development of the Tomaree Events
Strategy and are supporting its implementation. A group of tourism operators is also responsible for
organising the Whale Festival.
Port Stephens Tourism Limited (PSTL) has played a minor role in the events sector, There are no actions
relating to events in the PSTL Strategic Plan. In the annual Marketing Plan prepared by PSTL and adopted
by the Joint Venture Committee, PSTL undertakes to assist with the promotion of all local events
(irrespective of whether or not they are members of PSTL) but not to provide resources for events, leaving
this role to Events Port Stephens. Under the Plan, PSTL is committed to include all events on the tourism
website and wherever possible promote events in relevant campaigns (note: Council / Tourism Unit not
PSTL owns and maintains the website, with PSTL not involved in promotional activities). PSTL occasionally
provides small sponsorship grants ($1,000‐$1,500) to events. These grants appear to be made on an ad
hoc basis without reference to Events Port Stephens or to any evaluation of the best use of its
‘sponsorship’ funds.
The Tourism Unit has not been involved in the preparation of Council’s various event strategies. The Unit
maintains an Event Calendar on the tourism website. The calendar is not comprehensive, with very few
non‐Tomaree events listed. Two significant events for the area, Sail Port Stephens and the Triathlon, are
not listed on the major events page, nor is the next Airshow event listed. The website needs to be
expanded to include some form of banner or flashing alert of forthcoming events with a link to event
website. The level of support provided by the Tourism Unit in promoting events appears to be variable
with some event organisers advising that they had received some assistance, while others (primarily non‐
members of PSTL) have received no support. Given that events are designed primarily to build visitation,
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the Tourism Unit should be playing a far more active and supportive role as part of its destination
management responsibilities.
The core elements of the various strategic plans advocating the development of events are summarised
below.
Tomaree Events Strategy
The Tomaree Events Strategy was prepared in 2007 to provide a framework to grow the events sector on
the Tomaree Peninsula, with the primary objective being to build visitation outside of the peak holiday
periods. The study confirmed that Port Stephens had the potential to significantly grow the events sector.
The Study recommended strategies to:
Generate economic and social benefits for the community by growing existing events and developing
new events, including growing sports and business events markets.
Build industry and community partnerships, developing the skill base in event planning and
management.
Develop integrated and effective systems in relation to the event approval process.
Improve the infrastructure and support available for events.
As a result of this Strategy, Events Port Stephens was established within the Economic and Tourism Unit,
and an Event Coordinator appointed. The Coordinator’s position is jointly funded by Council and the
Department of Industry and Investment. Events Port Stephens is in the process of implementing many of
the recommendations of the Strategy with the focus being to put in place the framework, systems and
support mechanisms needed to assist event organisers with the planning and approval process and to
provide logistical support. In developing events, the Unit is focussing on events that bring 500+ visitors
into the area who will stay 3 or more nights, and generate, or have the potential to generate, $500,000+
for the local area. The events have to be run professionally and be self funding or have the potential to
become self funding.
Events Port Stephens is planning to build a number of the existing events on the Tomaree Peninsula into a
series of activity‐based high profile events, and to then progressively add new events under this branding.
The first event being developed is ‘Sail Port Stephens’, with this being the ‘pilot’ for the program. Other
events will include ‘Fish Port Stephens’, ‘Golf Port Stephens’ and ‘Surf Port Stephens’ and possibly ‘Cycle
Port Stephens’. Opportunities for building on this theme include:
Wind surfing, wave surfing and kite events, with these events often being held in winter and spring due
to the strong prevailing winds.
Water skiing, wakeboarding and power boating events at Raymond Terrace.
Scuba diving – a ‘Dive Port Stephens’ Underwater Photographic Competition.
Bowls – utilising all the major bowling clubs in the LGA – Raymond Terrace, Lemon Tree Passage,
Soldiers Point and Nelson Bay. This could include both traditional bowls and barefoot bowls events.
Events Port Stephens is also providing support and assistance to the Whale Festival.
Neither Events Port Stephens nor Council are not looking to own events. While Council has some funds
that can be used for events, the emphasis is on providing support and in‐kind assistance (eg garbage
removal, cleaning etc) rather than cash.
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Sports Tourism Marketing Plan
The objective of the Sports Tourism Marketing Plan is to use the quality sporting facilities and
infrastructure in the LGA to attract a diversity of sporting events to generate direct economic benefits and
positive marketing outcomes for Port Stephens. The Plan focuses on targeting non‐elite sports that have
high participation rates, for example, school and amateur association‐based regional and State carnivals.
Target markets identified by the Plan include:
Field based sports
Equestrian sports
Beach / surf life‐saving sports
Sailing
Tennis
The Recreation Services Unit actively bids for sporting events, with Council providing sponsorship for the
larger events that bring visitors into the area.
The Recreation Services Units needs to work closely with Events Ports Stephens and the Tourism Unit to
ensure that the area achieves maximum benefits from the events attracted. There may also be
opportunities to grow some of the sporting events into signature events for the LGA.
Cultural Plan 2009‐2013
The development of a strong community events program is one of the four key directions of Council’s
Cultural Plan, with the event related strategies and actions including:
Providing professional support to community groups involved in events.
Develop resources, including an ‘Event Ready’ toolkit to ensure that Port Stephens is ‘event ready’.
Provide support with event planning.
Explore opportunities for Council to provide ‘in‐kind’ support and sponsorship for events.
Develop signature events for each locality.
There is considerable cross‐over between the actions proposed in the Cultural Plan with the framework,
systems and support mechanisms that are being developed by Events Port Stephens. Maximum benefits
will be achieved by both units working together. There will be a number of community events that have
the potential to become significant events for the LGA. Ideally, both units should be involved in
determining the longer term strategic directions and development strategies for these events, with
Community Services working with the event organisers to grow the event and put in place a professional
management structure, with the event ‘transferring’ to Events Port Stephens when it is at the stage to go
to the next level (ie move from a community to a tourism event).
Council has allocated $60,000 per annum ($20,000 per ward) for the development of cultural events and
activities.
Nelson Bay Community Economic Development Plan
The Nelson Bay Community Economic Development Plan recognises that events and tourism are crucial to
the economic sustainability of the Nelson Bay CBD and surrounds. It has, as one of its 4 key actions, the
need to develop a coordinated approach to events in Nelson Bay.
Nelson Bay Town Management Inc – Strategic Plan
Nelson Bay Town Centre Management (NBTCM) has as one of its growth strategies, to ‘identify and
develop events and activities for the mutual benefit of the area’. NBTCM organises the Blue Water
Country Music Festival, Tastes of the Bay and Carols by the Bay.
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Port Stephens Tourism Marketing Plan / Joint Venture Committee Position
The position adopted in the Tourism Marketing Plan is to not allocate resources for event marketing or
promotion, however all events will be listed on the Port Stephens Tourism website and that PSTL would
assist in event promotion where possible. (Note: there is no reference to the Tourism Unit).
8.3 Issues
Event related issues that have emerged during this study include:
The development of events and the event strategies have taken place largely independently of the
Tourism Unit. As such the strategies focus primarily on event development, with limited
consideration of marketing and promotion, public relations / media exposure opportunities, and
value adding and packaging.
Perception that the Tourism Unit is not interested in events. It appears that for some events the
Tourism Unit has provided no or minimal support as the people / businesses / organisations
associated with the events were not members of PSTL.
Confusion amongst community groups and event organisers regarding the structure of events at
Council level – should they be approaching Events Ports Stephens, Business Port Stephens
(community economic events), Cultural Services or Recreation Services.
Perception that Events Port Stephens was set up and resourced to run events in the LGA and
therefore should be playing a more far active leadership and organisational role, rather than leaving
it to under‐resourced and volunteer organisations, or to private operators.
Lack of a major event venue on the Tomaree Peninsula. This is seen as a constraint to attracting the
large entertainment style events that are driving visitation in Newcastle and Hunter Wine Country.
The key issue is how many venues can the Region support. Rather than focusing on what is not
available, or trying to duplicate what is already available elsewhere (and potentially splitting or
weakening the market) the emphasis should be on capitalising on the assets that are available in the
LGA to attract and host events.
Lack of a strategic framework / policy for funding and sponsorship of events. For community events,
the application process is considered to be ‘daunting’ and ‘onerous’.
Two event calendars, neither of which are comprehensive, nor provide the best format for publicising
the events.
For most events – no or minimal mechanisms in place to collect data (eg for future direct marketing)
or monitor results.
A number of events are very similar to events in the surrounding area, rather than be original or
innovative. Some events are also ‘tired’ and need to be either revamped or phased out.
The need to lodge a development application for some events (no clear policy on which events
require a DA). The length of time involved in the approval process is also of concern.
Volunteer ‘burn‐out’ particularly in the smaller communities.
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Nelson Bay
Parking and access are major issues for large events held in Nelson Bay. A traffic management plan
needs to be put in place with the plan addressing parking for event organisers and participants (eg
stall holders, entertainers), parking for attendees (possibly park and ride arrangements), coach access
and parking, and maintain access for residents and businesses.
There is no area within the town centre to run events, with some traders opposing road closures. As
a result, events are usually held on the foreshore, which significantly reduces the flow on benefits to
the retail community.
Reluctance by many operators and businesses in Nelson Bay to support events. Events are primarily
designed to build visitation and ‘drive’ business. If support from the business community is not forth‐
coming, then Council and other event organisers need to re‐evaluate whether they should continue
to provide funds and/or resources.
Tilligerry Peninsula
Accommodation capacity constraints – which limit the ability to grow events, particularly the
Motorama. This can be addressed by provision of temporary camping.
Need for temporary event signage / banners on Nelson Bay Road / Richardson Road to raise
awareness.
Need to revitalise the Tilligerry Festival.
Karuah
Volunteer burn‐out.
Whether building events is the right strategy to concentrate on for growing visitation – could limited
resources be better employed?
Need for temporary event signage on the Pacific Highway on either side of the Karuah by‐bass.
Need to revamp the Timber and Oyster Festival.
Accommodation capacity constraints.
Raymond Terrace
No quality promotional material / information on Raymond Terrace is available to use in bidding for
events or providing to event attendees.
Need / desire for a signature event for the Town.
8.4 Directions Forward
The establishment of Events Port Stephens and the framework and systems being put in place to support
and build the event sector will provide Port Stephens with a very solid platform for moving forward. The
Event Co‐ordinator’s position needs to become a full‐time, permanent appointment.
Major Events
The current strategy in relation to building the major events is supported. The emphasis should be on:
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Marine events – Port Stephens has a natural advantage in that it has a spectacularly beautiful setting,
large water‐body that is clean, protected and safe, and good marine infrastructure and services. In
addition, these events generally do not require a large ‘land‐based’ foot‐print.
Working with sporting / activity based associations – preferably at State or National level and with
commercial event promoters, to host State / National and/or high profile events. These events come
‘ready‐made’, enabling the focus to be on building participation and value‐adding.
Sports and family focused events – these type of events generate more room nights and activity
based expenditure, and there is a far lower risk of anti‐social behaviour.
Sports Events
The principals of the Sports Tourism Plan are sound, with Port Stephens ideally located to attract a range
of regional and State events. Once air services to all States are established, the LGA will be well positioned
to target National tournaments and carnivals. Newcastle Airport is seeing growth in the number of junior
State sports teams flying out Newcastle rather than Sydney and there is opportunity to market Port
Stephens / Raymond Terrace as a cost‐effective training base for State teams before they fly out.
The Sporting Tourism Plan is in draft format and needs to be expanded, completed and adopted by
Council.
Opportunities to support and capitalise on sporting events include:
Collate information packs / produce information fliers (pdf format) for sporting event organisers to
distribute to competitors and officials and/or put on their websites.
Ensure that the Port Stephens Tourism Website address (once the information base is
comprehensive), is given to the association / organiser to include on their website and on all
correspondence.
Provide an accommodation booking service.
Put together a range of special deal promotions – discount / added value vouchers.
Provide local information guide / packs for distribution to all competitors – where to eat, services
pertinent to the sport (eg physio), attractions and activities etc.
To maximise benefits from sporting events, the Recreation Services Unit needs to work with Events Port
Stephens and the Tourism Unit.
Local / Community Events
While the local events held at Karuah and Lemon Tree Passage are small by comparison to the Tomaree
events, they are very important to the local business communities. Two of the events, the Karuah River of
Music and the Tilligerry Motorama have the potential to grow into significant events, and outgrow the
accommodation available in the area. The markets for both these events will camp, and provision needs
to be made to permit event‐related temporary camping at one of the local reserves. Any changes required
to the planning controls should be initiated in the short term to enable the organisers to plan for growth.
At present, the limited supply of accommodation is limiting the ‘vision’ and forward planning of these
events ‐ ie ‘can’t afford to get much bigger’. There is also potential to grow the Karuah fun run, positioning
it as a regional event.
The Timber and Oyster and Tilligerry Festivals needs to be assessed to determine whether they can be
revitalised and if they have the potential to develop as tourism events.
For community events that have the potential to grow into significant tourism events, it would be
desirable for the Cultural Services Officer to work with Events Port Stephens to formulate a strategic
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directions / growth plan for the event. Community services should work with the organisers to grow the
event and put it on a professional footing, with the event then ‘transferring’ to Event Port Stephens when
it is ready to go to the next stage.
Involvement of the Tourism Unit
As part of its destination management and market development roles, the Tourism Unit needs to play a far
more active role in supporting events. The areas where the Unit could be involved are:
Providing information for inclusion in the ‘bid’ / event prospectus documents.
Event planning – providing input and advice from a tourism perspective – identifying the
opportunities to grow visitation and attract media coverage of the area, as well as business
opportunities for tourism businesses.
Coordinating accommodation bookings.
Collating the information (electronic information fliers / brochure) for the event organisers to
distribute / put on their websites for competitors and officials. A pro forma should be developed for
each locality, with this up‐dated and tailored to individual events.
Where required, providing information for inclusion in ‘sample bags’ for distribution to competitors.
Communication link with the tourism industry – to ensure that operators are geared up for the event,
and encouraging and coordinating the industry to provide promotional deals and packages (eg –
deals to encourage visitors to stay and extra night, or to come to back within 3 months).
Coordinating promotional offers that can be distributed to competitors.
Providing advice and assistance in event marketing and promotion, including suggestions and
contacts for publicity. Where the opportunity presents, the Tourism Unit should organise media
coverage and famils.
Where the opportunity exists – works with coach companies to package the event to bring visitors
into the area.
Promoting the event through the VIC and the Port Stephens website.
Providing advice and assistance with data base development (for event marketing) and event
monitoring.
Suggestions for Additional Events
‘Race Port Stephens’ – build up a program of long distance / endurance style races, for example ‐
open water swimming (3‐10km races), marathons, cycling, audax, iron‐man, kayaking / canoeing
(could be undertaken on the Hunter River – Maitland to Raymond Terrace), adventure racing.
Develop an ultra race/s. There are a number of high profile endurance races (eg the Comrades
Marathon and Marathon des Sables in Africa and the Ultraman World Championships in Hawaii) that
draw hard‐core competitors from all over the world. Stockton Beach lends itself to a gruelling
marathon or some form of ‘dune dash’.
Target the ‘wind’ sports events – wind surfing, wave surfing, kite boarding.
Lantern festival – evening festival with entertainment, food stalls and a floating lantern parade down
the River at Raymond Terrace.
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Coordinate events, eg various bowls tournaments, to encourage people to stay longer in the area to
compete in a number of events. Explore the possibility of developing events in Port Stephens in the
lead‐up to or as a follow‐on from events in the Hunter. For example, runners in Sydney use the
‘Sutherland to Surf’ race as a training run for the ‘City to Surf’.
If there is no Masters or Veteran Games in the Hunter Region, explore the feasibility of building an
event.
Develop workshop / clinic style events in which ‘high profile’ experts are brought in to run a series of
workshops and field trips ‐ dive photography, bird photography, golf clinics. The Sturt Contemporary
Craft summer and winter schools in Mittagong and the Textile Forum in Orange are examples of this
style of event.
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9. VISITOR FACILITIES & INFRASTRUCTURE
Facilities, services and infrastructure needed to support tourism include:
Signage
Public toilets
Parks, gardens and reserves / picnic facilities
Walking tracks
Cycleways
Marine Infrastructure
Dining and Shopping
9.1 Signage
Signage plays a very significant role in how an area presents. It also forms part of the visitor information
services network and is a significant marketing and promotional tool. To be effective, Port Stephens
needs a comprehensive, integrated family of signs which are strategically located. The signage needs to
include:
Motivational and promotional signage – to raise the profile of the area, develop brand / image
recognition and to make travellers aware of the area and the attractions and facilities on offer.
Operators sometimes erect large advertising signs along the highway corridor on the approaches into
town. These can be effective if well designed (eg quality images) and maintained. In many instances
however these signs are just visual pollution.
Gateway signs – important in creating a sense of arrival and making a visitor feel welcome. Gateway
signs also help to create and re‐inforce an image or brand for the area. Ideally gateway signs should
be integrated with landscaping to create a feature. The quality and the originality of the signs forms
part of a visitor's first impression of the area.
The relevance of, and need for, community signs at the gateway arrival points (eg Tidy Towns, Healthy
Communities, Service Club signs etc) is questionable and needs to be addressed.
Directional signage – primary purpose is to ensure that travellers can find their way easily. Directional
signage also provides re‐assurance and re‐inforces the motivational signage by creating the
perception that the area has ‘a lot to offer’.
Information signs – on arrival in a new area, visitors frequently look for a roadside map so that they
can get their bearings. They also look for the Visitor Information Centre ‘i’ signs.
Service signs – international symbols for public toilets, accommodation, parking etc. Fingerboard
signs are not as effective as the symbols.
Interpretive signage / information – this is particularly important at attractions and in ‘gateway’
towns, as it provides the link between the town and the surrounding attraction/s.
Advertising / shopping centre signage – shop fronts, awning, footpath – contributes to the
atmosphere, vitality and presentation of a centre.
Tourist / scenic drives signs / route markers
Signage is a significant issue in Port Stephens, particularly signage along the Pacific Highway. It is
recognised that Council has endeavoured to address issue. Summarised below are some of the signage
issues and suggested improvements. These are 'first impression' observations and are not comprehensive.
Signage issues in each of the localities are discussed in Chapter 11. The LGA needs a full signage audit,
with the audit undertaken from the perspective of a first time visitor to the area.
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Motivational and Promotional Signs
Port Stephens has a large billboard on the Pacific Highway just north of the Hexham Bridge. Being on the
eastern side of the road, the sign is not well positioned to attract the attention of north‐bound traffic. A
more ideal location would be the site occupied by the Marketplace bill board or close by. Consideration
should be given to a new sign if a suitable site becomes available.
The proposed by‐pass will change travel patterns, with the challenge being to draw travellers off the
Highway into Heatherbrae ‐ Raymond Terrace and possibly (depending on exit ramp locations) to the
coastal areas of Port Stephens. Council / Raymond Terrace Business Association / PSTL should be looking
to secure an appropriate site (or sites) for future signs, with this possibly being part of the negotiations
with the RTA / Highway Upgrade Project Manager.
Gateway Signage
Port Stephens Council has in place themed, coordinated gateways signs at the entrance to the LGA and to
each of the towns, villages and localities. Overall, the town, village and locality signs are very effective. In
most cases, the scale fits well with the scale of the road and the visual corridor. The only issues are that
the area around most of the signs is not maintained, with weeds obscuring the bottom panel (Port
Stephens) and, from a distance, the 'o' in Port appears to be graffiti. Some of the signs are starting to age
and may need to be replaced in the next few years. Budgets should be set aside for this purpose.
The gateway entry sign on Pacific Highway just north of Hexham Bridge is not effective. It is the wrong
scale for the location, being far too small (Note comparison to the size of the billboards and RTA signs in
the area). The angle at which the sign has been placed (perpendicular rather than angled slightly towards
the traffic) also reduces the impact. The Port Stephens panel on the bottom is difficult to read due to its
positioning at the bottom of the sign, with the panel obscured by weeds.
The relevance of the community directory signs and the tidy town signs at the entrance to some of the
towns is questionable, with the signs being old and rusted and presenting very poorly. All community and
advertising signs in the gateway corridors, that present poorly or are out of date should be removed or
replaced. If not already in place, a condition should be include in all development approvals for signs,
requiring that they be kept in good condition with a mechanism that enables Council to remove them if
they don't comply.
Directional Signage
Locality and directional signage along the Pacific Highway corridor and from Newcastle, particularly for
north‐bound traffic is exceptionally poor.
The branding and all of the marketing undertaken is of 'Port Stephens. Travellers, both domestic and
international, are looking for directions to Port Stephen. The only sign to Port Stephens is near Slaters
Creek on the M3 Motorway, with the sign stating 'Port Stephens use Pacific Highway 20km ahead'. After
seeing this sign, travellers looking for Port Stephens would be looking out for more signs to 'Port
Stephens'. After crossing the Hexham Bridge there is a large RTA sign with towns and distances. Port
Stephens is not included on this sign. In other areas a significant off‐highway destination is generally
shown in brackets on the locality / distance sign.
The 'Raymond Terrace Next Exit' sign just south of the Masonite round‐about is hidden behind trees and is
difficult to see. Raymond Terrace is not included on the Barrington Tops exit sign. Just north of the
roundabout, there is no listing for Port Stephens or Nelson Bay on the locality / distance sign. The
Raymond Terrace ‐ Nelson Bay Exit sign, 1 km south of the Richardson Road exit is located up a bank and
obscured by trees, with the Nelson Bay sign at the exit also obscured by trees. There is no brown tourist
signage to either the Tomaree National Park (note precedence set by Barrington Tops National Park sign)
or to the Stockton Sand Dunes. Given the significance of the sand dunes, they should be sign posted (both
to assist travellers and to raise awareness).
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While the RTA has resisted providing signage to Port Stephens (as there is no locality called Port Stephens),
there has been a precedence on the M3 Motorway with signs to Lake Macquarie East and Lake Macquarie
West. Similar signs, to 'Port Stephens South' and 'Port Stephens North', should be considered. The other
precedence is on the Hume Highway on the approaches to Goulburn, where all villages accessed from
Goulburn are listed, with the instruction to take the Goulburn exit. A similar sign, listing the main coastal
destinations, should be considered for the Richardson Road exit. The existing signs for Nelson Bay should
also include the official 'i' sign plus the distance. There is also a need for a locality (ie, Medowie, Nelson
Bay, Shoal Bay, Anna Bay, Soldiers Point etc) and distance sign on Richardson Road, to provide re‐
assurance for travellers.
It is the same situation coming south with a lack of effective directional signs on the Medowie and
Richardson Road exits.
There is minimal directional signage to Port Stephens from Newcastle or from the feeder roads coming
north from Lake Macquarie. The Pacific Coast Touring Route (which is being marketed internationally to
the FIT self drive / campervan travellers) encourages travellers to visit Newcastle and then head north to
Port Stephens. Without a GPS or good map, these travellers would not find 'Port Stephens' with the
current signage.
The directional signs through the central area of the LGA are relatively good, however signage is needed to
the Stockton Sand Dunes.
(Note: with the increased use of GPS systems, the need for directional signage will decrease).
Information 'i' Signs / Directories
Other than on the Mid North Coast Region information centres sign on the Pacific Highway just north of
the Hunter River Bridge, there are minimal 'i' signs to the information centre at Nelson Bay. The 'i' sign
should be included as a small icon on all signs to Nelson Bay. There should also be directional signage to
the VIC from the intersection of Nelson Bay Road and Port Stephens Drive, at other key intersections on
Nelson Bay Road, at the entry into Nelson Bay (Stockton Street) and at other key intersections (Stockton &
Church Streets and Church and Government Road). There should also be signs from Shoal Bay and from
Salamander Bay / Soldiers Point. The small fingerboard sign on he corner of Stockton and Church Street is
barely visible.
Information directories are also needed at key locations. This is discussed further in Section 10.3.
Facility & Service Signs
It is recommended that the international symbols for facilities (eg toilets, picnic areas, boat ramps,
accommodation etc) be used in all new facility signage and to replace the blue fingerboard signs when
they are due for renewal.
Interpretative Signage
Interpretative signage throughout the LGA is relatively limited. The interpretative material in the bird hide
at Seaham is excellent. Likewise most of the National Parks interpretative shelters in the Tomaree
National Park are informative. Some of the interpretive signs in the King Street precinct in Raymond
Terrace have been vandalised and need to be repaired.
There is a need for interpretative displays / information for the Stockton Sand Dunes and the Worimi
Conservation Lands at Birubi Beach, with the existing interpretative panels in the small park in Ocean
Street, repaired or removed. There is also need for interpretative signage for the Marine Park at Nelson
Bay and at other key locations around the Bay. Consideration should be given to erecting interpretive
material on whales at the more popular shore‐based whale watching areas.
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Tourist Route Signs
There are a number of very old tourist route marker signs at various locations within the LGA. If these
routes are still being promoted, then the route markers need to be updated. If not, then the markers need
to be removed.
Event Signs
Infrastructure need to be put in place in gateway locations to display temporary signs and/or banners to
advertise markets and events.
Commercial / Advertising / Shopping Centre Signs
Many of the signs on the Tomaree Peninsula and at Karuah are out‐of‐date and/or are in very poor
condition. Council / Tourism Unit needs to work with the business organisations and directly with the
businesses that are advertising on the signs to upgrade or remove the signs.
Quality, coordinated signage can significantly improve the presentation of a shopping centre or locality
and contribute to the atmosphere of the area. Signage needs to be addressed, with signage guide lines
provided for main street / beautification programs.
9.2 Public Toilets
The majority of public toilets on the Tomaree Peninsula are well past their use‐by dates and need either
major refurbishment or replacing. Council is aware of this issue and is allocating funds to improve facilities.
If replacing, consideration should be given to the design aesthetics and location of any new building. Most
of the existing toilet buildings are very prominently located and detract from the amenity of the area. For
toilets being refurbished, consideration should be given to modernising their appearance and providing
landscaping or screening to improve their presentation.
9.3 Parks, Gardens, Reserves, Playgrounds & Picnic Facilities
Parks, gardens and reserves are an integral part of the visitor infrastructure and the attraction base of the
area. Parks, gardens, reserves etc contribute to tourism in a number of ways:
Influences the visitor's first impressions and perceptions of an area.
A quality, well presented park will often encourage travellers to stop and take a break, with repeat
travellers often planning to take a break at a particular park along their route (eg Longworth Park at
Karuah.
Can become an attraction in its own right ‐ with visitors coming into the area specifically to patronise
the park etc.
Become part of the attraction and activity base of the area (eg for walking, cycling, picnicking etc) as
well as a venue for entertainment and activities.
Provide access to the foreshore / protect views.
Parks and reserves are particularly important in areas where visitors are staying in apartments and units
where there is limited open space.
Within Port Stephens, most of the parks and reserves used by visitors in Raymond Terrace, at Lemon Tree
Passage, Karuah, Seaham, Hinton, Fingal Bay and at Boat Harbour present well. A lot of the infrastructure
and facilities in the foreshore parks and reserves along the bay foreshore from Soldiers Point through to
Tomaree Headland is due for replacement, with many of the areas not presenting well. As discussed in
Section 5.2, the most poorly presented reserves in the LGA are Biribu Beach and the bay‐side reserve
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between Shoal Bay and the Tomaree Headland, with the Nelson Bay foreshore also needing significant
improvement.
Issues and opportunities with some of the parks and reserves that are popular with visitors are
summarised in the following Table. The list is based on 'first impressions' and is not comprehensive.
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Table 9.1 Opportunities and Issues with Parks, Gardens & Reserves used by Visitors in Port Stephens
Location Park / Reserve Observations Opportunities Issues to be Addressed
Nelson Bay Nelson Bay Very popular ‐ overcrowded at peak times Interpretation of Marine Park Maintenance & presentation (Council
Foreshore Should be a show‐piece for Nelson Bay Sculpture Walk ‐ marine creatures already working on this)
Parking & congestion are major issues Waterplay area ‐ eg Townsville / The
Only area near town centre suitable for events Entrance
No visual connection with dolphins and whales ‐ no
link with 'Dolphin Capital' positioning
Gan Gan Lookout Superb view Views & orientation Poor presentation ‐ vandalised / litter
Under‐promoted Trees growing up to obscure view
Shoal Bay Foreshore Reserve Spectacular view Implementation of a landscape plan for area Adhoc un‐coordinated approach to the
opposite shopping Dinghies add to the character of the area ‐ should be Part of a boat tour of PS ‐ tie up and visit provision of visitor facilities
centre retained shops, eateries and bars. Visual impact of the toilet block
Park furniture ‐ poorly coordinated and placed KD Winning Blue Water Wonderland sign
New picnic shelters are attractive and have minimal
visual impact
Toilet block ‐ very poorly placed ‐ dominates
entrance into Shoal Bay ‐ if it is to remain ‐ needs an
exterior make‐over
KD Winning Sign ‐ needs to be removed ‐ makes
minimal / no contribution to visitor information
services
Foreshore Reserve High use area Iconic attraction for the LGA and for Picnic facilities & infrastructure ‐ need to
to east of boat Gateway to the Tomaree National Park & Tomaree National Parks be refurbished or replaced
ramp Headland Toilet block ‐ needs to be demolished ‐ if
Should be an icon but instead is one of the most Signature coastal walk to Birubi replaced locate off the foreshore in a less
poorly presented reserves in the LGA prominent location ‐ needs to service
Parking area is too small, and difficult for coaches to headland car park as well
access and manoeuvre Land degradation / erosion
National Parks Interpretation is good Weed infestation
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Location Park / Reserve Observations Opportunities Issues to be Addressed
Fingal Bay Foreshore Better condition than most of the parks & reserves Surf / beach events Need for infrastructure for events
Reserve in the area (power, water etc).
Redevelopment of surf club ‐ has not maximised Continue to expand / improve playground
opportunities ‐minimal consideration given to Need for an integrated landscape plan
enhancing the capacity of the area to cater for for reserve and town centre
major surf / beach events
Tuckeroo trees used in car park landscaping should Improve appearance of toilet block
become theme for landscaping in the area
Need for a pedestrian link between the beach and
shops ‐ use Tuckeroos to create an avenue of trees
& provide a visual link
Cycleway should finish at shops ‐ Need bike racks at
beach & at shops to chain up bikes
One Mile Beach Well known surf beach ‐ high profile with surfing For the area to reinforce the eco / Anti social behaviour ‐ this could be
Beach Reserve community alternative / surf character of the area ‐ addressed by installing a gate on Hannah
Area being abused ‐ possibly a party spot ‐ litter, more of a bush / natural environment than Road and closing the area at night.
vandalism the foreshore reserves along the Bay Land degradation ‐ partially caused by
vehicles on the grass
Fisherman's Foreshore Very poorly maintained area Part of a coastal walk Toilets needs to be replaced
Bay Reserve Land degradation & weed infestation
Birubi Beach Reserve ‐ end of Access / parking area / facilities for beach users Redevelop as part of the redevelopment of Toilets in poor condition
/ Stockton Ocean Avenue Area presents very poorly the Birubi Beach precinct Visitor facilities need to be replaced
Sand Dunes / Fitzroy Street Interpretation panels ‐ due for
replacement
Surf Lifesaving Very high use area ‐ attracting both international Gateway location ‐ quality attraction for the Multiple land owners ‐ responsibility for
Club Precinct and domestic visitors ‐ one of the first places that area ‐ world class interpretative facilities and land management split between a
international visitors to the Shire experience visitor centre number of agencies
Gateway to Stockton Dunes ‐ world class feature ‐ Lack of shared vision and coordinated
should be an icon management approach
Area presents very poorly ‐ similar level of neglect Facilities in very poor condition ‐ past
and abuse as Tomaree Headland Reserve at Shoal their use‐by date
Bay Vandalism and graffiti
Need for quality visitor centre and facilities ‐ to Land degradation / weed infestation
interpret dunes, indigenous culture, ship wrecks etc Traffic and parking congestion
Proposed redevelopment of Club House not
capitalising on opportunities
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Location Park / Reserve Observations Opportunities Issues to be Addressed
Lemon Tree Foreshore Reserve ‐ Very popular park Regional destination ‐ people (eg families, Poor placement of facilities / design of
Passage Cook Parade Conflict between recreational park use and boat grand parents) with pre & primary school parking area and internal road system
ramp users ‐ potential safety issues with positioning aged children ‐ an alternative to the more Playground too small
of visitor facilities in relation to access roads congested areas on the Tomaree Peninsula ‐ Need for a jetty or floating pontoon for
Playground facilities are at capacity in peak times ‐ need for expanded playground & cycle ways boats to pull in
need for additional facilities. Links between reserve and foreshore
No link with, or signage to the Mangrove Board Group picnic area ‐ eg local and regional trail
Walk / Tilligerry Creek Koala Walk sporting clubs, disability groups etc
No where for visiting boats to tie up ‐ high tidal
range with mud flats at low tide Boat tour activity node
Koala theme of area not carried through in Park
Raymond Bettle Park Forms part of the entrance corridor into Raymond Gateway entry statement for Raymond Condition and presentation of the Plane
Terrace Terrace. The open space corridor between Speedy Terrace ‐ restoration could be used to generate
Lock Lane and Kinross Park presents well ‐ Bettle publicity for Raymond Terrace.(are there
Parks needs the same or a higher standard of Provide information directory ‐ for Raymond other planes being retired that could
presentation. Terrace and LGA. also be placed here)
One of the few places where people towing Use to attract caravans and motorhomes Community / service club signs need to
caravans can pull up and access toilets. Facilities are into Raymond Terrace. Will need to provide be removed
used by the touring van market. long rig parking in town centre / riverside
area for market to stop. Directory needs to be replaced.
Aeroplane well known amongst the older domestic
market. General appearance ‐ should be an entry
statement
Park presents poorly.
Riverside Park Presents well, very attractive Establish a foreshore reserve with walking / Parking for caravans / long rigs etc
Under‐utilised as a tourism asset. cycling trail to link Riverside Park to Kings
Could be used to draw visitors down main street Park and linking across to Roalyn Park ‐ Presentation of southern end of reserve
Caravans / long rigs needs to be able to park. alternatively, develop link along King Street ‐ (near boat ramp) needs to be improved.
Not integrated with other foreshore open space historic precinct with landscaping etc.
areas
Provide facilities for boats to tie up, use
park, Junction Inn for dining and explore
main street (and Kings Street precinct if
done up).
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Location Park / Reserve Observations Opportunities Issues to be Addressed
Roalyn Park Water bird hot‐spot ‐ could be positioned as a Part of an integrated foreshore ‐ open space Internal path system not designed to
waterbird sanctuary area ‐ used to extend length of stay in town integrate with surrounding area.
Popular with families with young children
Not well linked with surrounding area Bird watching market ‐ in conjunction with Reserve entrance & car park in Newline
Seaham Road not signposted from William Bailey
Rd
Boomerang Park Being used by touring van / motor home market for Lookout
overnight camping Arboretum / Urban forest
Good views
Longer term projects once foreshore & Bettle Park
addressed
Seaham Seaham Park Presenting very well Explore opportunity to access small swamp Access to Nature Reserve / River
Shelter shed will be ideal for small groups when to the east of the park as a wetland water
renovated feature for the park.
Not linked to Seaham Swamp Nature Reserve or
river Develop walking trail link to Seaham Nature
Reserve / Tom's Cottage
Seaham Swamp Low key presence to Seaham Road ‐ nothing to Bird watching market Walking trails not linked, well maintained
Nature Reserve encourage travellers to stop Coach tour market or signposted ‐ no directions to Tom's
Walking trails not well maintained ‐ no directions to Day trip market from other areas of LGA Cottage where track divides.
bird hide from entrance off Seaham Road Walking track / circuit around swamp with Weed infestation ‐ need for bush
Bird Hide and reserve area along East Seaham Road bird hides & possibly interpretation regeneration
frontage is a quality asset ‐ very well presented
Morning and dusk ‐ area alive with water birds ‐
spectacular sight
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Location Park / Reserve Observations Opportunities Issues to be Addressed
Karuah Memorial Park Area of park adjacent to Highway presents well. Regional boat ramp ‐ marketed to regional Changing the perception of Karuah being
Need to improve facilities and presentation around resident, fishing and boating clubs a dangerous/difficult place to launch a
boat ramp and area to west of the boat ramp. Commercial / tourist use of the boat shed boat
Vacant boat shed ‐ ideal location for gallery, eatery
and boat / canoe hire.
Longworth Park Very popular with Highway travellers. Attractive highway transit stop ‐ pleasant Poor presentation of adjoining oyster
Need to continue to maintain to a high standard place to stop / great place for kids. lease ‐ could be an attraction if better
Remove community directory ‐ not an appropriate presented.
location. Develop pedestrian link to town centre ‐
Signs on oyster farms adjacent to park need to be encourage travellers to get takeaway and
painted ‐ improve visual impact when viewed from eat it in the Park.
the Bridge
Adjoining Oyster Sheds & leases ‐ point of interest Include on PS boat touring route
and a difference to other parks in the LGA
Park ideal for groups ‐ eg coach tour groups (but Opportunity to capitalise on oyster industry ‐
access road is steep) interpret oyster farming in the area, direct
Wharf infrastructure ‐ linkage opportunities sales
Karuah Wetlands Board walk does not go any where ‐ no access to Wetlands walk through area to north of Extending the board walk
wetlands to north of Franklin Street Franklin Street with link back to Memorial Providing interpretation
No interpretation Park Need to link to other reserves
Sign difficult to see from Highway
Area between start of walk & Karuah
Centre not well presented
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9.4 Walking Trails & Cycle Ways
When on holidays, people often want to get out and about ‐ to leave their car and walk or cycle. Holidays
are also a time for many people to decide to start a 'get fit' program. Walking and cycling are also no‐cost
activities and a good way for visitors to explore the area. Families, and an increasing number of couples,
travel with bikes. Some of the holiday homes and accommodation establishment also have bicycles
available for guests. From a tourism perspective, the main opportunities for walking trails and cycle ways
are:
Tomaree Peninsula
Long distance cycling route from Newcastle to Taree via the Tomaree Peninsula ‐ this is a long term
possibility, with provision for cycling included in the progressive upgrade of Nelson Bay Road.
Foreshore shared pedestrian ‐ cycleway extending from Soldiers Point to Shoal Bay and onto Fingal
Bay, with the highest priority being from Bagnalls Beach to Shoal Bay.
Coastal Walk ‐ from Tomaree Headland to Birubu Beach through the Tomaree National Park.
Completion of the Anna Bay to One Mile Beach shared pedestrian ‐ cycleway and extension to Birubi
Beach.
Cycle track from Anna Bay / One Mile Beach to Nelson Bay.
Raymond Terrace
Shared pedestrian ‐ cycleway linking Riverside Park, Kings Park and Roalyn Park.
Seaham
Walking trail from Seaham Park to Tom's Cottage, with a loop around the swamp, connecting to the
bird hide on the East Seaham Road.
9.5 Marine Infrastructure
The marine infrastructure is discussed in Section 3.8.. In addition to the plans for the Nelson Bay Marina,
the main priorities from a tourism perspective are:
To provide the facilities and support infrastructure needed for the Lemon Tree Passage and Karuah
Boat Ramps to become regional facilities.
Jetty or floating pontoon at Lemon Tree Passage.
To encourage boat touring on Port Stephens and on the Hunter / Williams Rivers, with a number of
'nodes' where visitors can moor and get out and explore, go to a café, restaurant etc.
9.6 Dining and Shopping
Dining out and shopping for pleasure are two of the most popular activities undertaken by visitors.
The shopping opportunities in Port Stephens are relatively limited. While the shopping malls at
Salamander Bay and Raymond Terrace will meet the day‐to‐day needs of visitors, they do not provide a
shopping 'experience'. The shops on the Nelson Bay marina and at Shoal Bay are resort and lifestyle
focused and are popular with visitors.
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The shopping experience provided by the Nelson Bay town centre is at best 'average'. Trading hours are an
issue, particularly off season when businesses close early and don't open past lunchtime on Saturdays. The
town centre needs a modern supermarket.
The dining sector is developing. There is a concentration of eateries and bars in Nelson Bay, with the
marina eateries being the more popular with visitors. Shoal Bay is emerging as a café‐dining precinct.
The clubs are very popular, particularly for family meals. Dining options in Fingal Bay and Anna Bay‐One
Mile are limited. The Junction Inn at Raymond Terrace provides an attractive modern eatery.
There are no halal or kosher restaurants in the LGA., nor does the area have the dining and entertainment
services generally sort by the Indian market.
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10. INFORMATION
10.1 Overview
Information services are an integral part of the tourism infrastructure. These services incorporate
significantly more than just answering an inquiry or handing out a brochure. They are the communication
link between the locality, the tourist trade and the visitor.
Information services support the area’s marketing and promotion and provide a direct service to both the
tourism trade and visitors. Most importantly these services make a visitor feel welcome in the area and
ensure that they are aware of the area’s products and services.
Visitor information services encompass:
Visitor information centres (VIC's) and information outlets (manned and unmanned).
Information delivery systems – telephone, fax, Internet/email, mail.
Print‐based and digital information – brochures, maps, guides, videos, web sites, pod casts etc.
The point of contact for the trade and potential consumers – supporting marketing and promotional
activities.
Databases.
Sign posting – directional and promotional.
The visitor information services provided by an area need to operate both externally and internally – at the
international, national, regional and local levels. They also need to meet the needs of the travel trade and
visitors, to integrate with and support sales and marketing activities and to link visitors with products.
Services that need to be provided include:
Services to the Travel Trade
‐ Servicing trade inquiries ‐ including TNSW, North Coast RTO, travel wholesalers and agents etc.
‐ Media inquiries
‐ Collating data
‐ State Tourism Data Warehouse ‐ input and maintenance of the data base
‐ Trade briefings
‐ Hosting familiarisation programs
‐ Developing and supplying information kits
‐ Website development and maintenance
Services to Local Operators
‐ Communication link between the trade and the operators
‐ Production & distribution of information on behalf of operators
‐ Monitoring trends ‐ dissemination of statistics and data
‐ Feedback on activities that could impact on business
‐ Advice and assistance
Services to Potential Visitors
‐ Responding to telephone, fax, email inquiries
‐ Providing and distributing information
‐ Accommodation / tour bookings
‐ Liaison between potential customers and operators
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Services to Visitors in the Area
‐ Walk‐in inquiries ‐ accommodation, things to see and do, where to eat, road conditions etc
‐ Itinerary planning
‐ Distributing information
‐ Sourcing / referring accommodation
Table 10.1 Summary of information services that need to be provided
Important / necessary to provide 1 Desirable to provide
FOR THE TRAVEL TRADE
Service International National/State Regional Local
Computerised database
Website & Linkages
‘Destination’ Promotional Material
1
‘Product’ Promotional Brochures 1
Point of Contact
Sales calls / briefings
FOR CONSUMERS
Service International National/State Regional Local
Point of Contact
Computerised database
Website & Linkages
Destination Promotional Material
1
Product Brochures 1
VIC
Information bays/maps
Sign Posting
Booking Service / Sales
10.2 Information Services & Infrastructure in Port Stephens
Responsibility for Information Delivery
Port Stephens Council is the primary coordinator and provider of information services in Port Stephens.
The Tourism Unit is responsible for the operation of the Nelson Bay Visitor Centre and for handling trade
and consumer enquiries. Until recently the Tourism Unit primarily provided information on PSTL member
operators and businesses and did not represent non‐member businesses.
While PSTL is primarily responsible for providing information for its members, with this function
undertaken by the Tourism Unit on behalf of PSTL. PSTL also operates a website (serviced by the Tourism
Unit) that members can log on to for information and up‐dates. Operators who are not members of PSTL
do not receive information from either the Tourism Unit or PSTL. There is also no information going out to
the Business organisations or to businesses that are not members of PSTL.
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Council operates a Level 3 information outlet through the Telecentre at Raymond Terrace. There are also
Level 3 centres at Salamander Village Bottle Shop and in the Tilligerry Habitat Centre at Tanilba Bay.
Information services are also provided by:
Newcastle Airport – information and booking service in the arrivals area.
Karuah Working Together – information outlet at Karuah.
DECCC – Visitor Centre for National Parks and Marine Parks – located approximately 100m from the
Nelson Bay VIC.
Nelson Bay Visitor Information Centre
The Nelson Bay Visitor Information Centre (VIC) is located in Victoria Parade, Nelson Bay, adjacent to the
entrance to the Nelson Bay Marina. The VIC is Level 1 accredited. The Centre operates with both salaried
staff and volunteers, with around 15 volunteers on the books. The public area of the Centre is divided into
three main sections, the service counter, brochure and display area and a small retail area with television
screens with information on tour products and timetables. There are two internet kiosks in the VIC, and
there is WiFi access in proximity to the Centre. Cards for the WiFi access can be purchased at the Centre,
however this service is not promoted. There is no space in the Centre for visitors to sit down and use their
own lap tops to access information.
A few 5 minute parking spaces are available in Victoria Parade outside the front door of VIC. This space is
popular with local residents who use it to access the automatic teller. Metered car parking is also available
in the marina car park adjacent to the Centre and along sections of Victoria Parade. Coach parking is
available adjacent to the Centre, however time limits apply. Other than the coach spaces, there is no
parking for caravans and cars towing trailers.
While parking for cars is generally not an issue (other than resistance to having to pay) mid week outside
of school holiday periods, the area can become very congested on weekends, public holidays and during
school holidays. The VIC can also become congested during these times with people queuing for
information, to make bookings and to purchase 4WD beach access permits.
In 2008/09 the door counter at the Centre recorded 145,165 visitors. The number of visitors has declined
by 26% over the past 5 years, decreasing from an average of 538 visitors per day to 398. The Centre also
handled 19,611 telephone enquiries in 2008/9, with 53% of these calls being for general information,
36.5% accommodation enquiries and 10% being business calls. Information is not available on the number
of email enquiries that the Centre responds to. In 2008/9 there were 362,363 hits on the Port Stephens
tourism website. From 2004/5 to 2007/8 the number of website hits increased by 260% to peak at
693,733. In 2008/9 the number of hits fell by 47.8%. This is of concern and needs to be investigated.
2004/5 2005/6 2006/7 2007/8 2008/9 % change
04/5 – 08/9
Door Count 196,276 182,426 184,687 171116 145,165 ‐26.0%
Av per day 538 500 506 469 398
Telephone 25320 20255 19611 ‐22.4
Av per day 69 55 54
Web Hits 258,486 375,447 563,297 693,733 362,363 +40.2%
Av per day 708 1,029 1,543 1,901 993
Sales and bookings at the Centre are also down, with sales falling by 14.9% over the past 5 years. The
value of tour bookings declined by 14% from 2004/5 to 2006/7 and has grown marginally in both years
since 2006/7, with the value being down 12.5% on 2004/5. During the same period, on‐line
accommodation bookings have fallen by 20.9%, with a corresponding decrease in the number of nights
booked (‐18.3%) and the value of the accommodation bookings (‐13.8%).
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Factors that are possibly contributing to the decline in enquiries and bookings include:
Widespread use of the internet to research information – the number of people travelling with
laptops and mobile phones with internet access is also increasing.
Significant increase in the number of people booking accommodation on‐line through the
accommodation booking websites or direct to operators, with the belief that they will get the best
‘deal’.
Some operators are listing lower rates on accommodation booking websites than they are on the
Port Stephens tourism site.
An increasing number of people are travelling with a GPS or using the GPS capability of their mobile
phone.
There is minimal directional signage to the VIC in Nelson Bay or on the Tomaree Peninsula, with the signs
that are available on the roundabouts not being highly visible.
Information Outlets
There are three Level 3 accredited centres in the LGA plus an information outlet in the Karuah Centre in
Karuah.
The Raymond Terrace outlet is located in the Telecentre, with the centre open Monday to Friday during
business hours. The information is well presented and maintained. The Telecentre staff have produced a
number of information fliers on the Raymond Terrace area to meet demand for information on the local
area. The Internet is available for visitors to use (fee for service), and staff will also look up information for
visitors.
The information available from the Tilligerry Habitat Centre is very limited and not well displayed. The
Centre advises that it averages around 3‐5 visitors per day seeking information, with demand being mainly
for a map and brochure on the local area. The Centre produces a map which it sells for $2.
The Information outlet in the Salamander Bottle shop was not inspected as the bottle shop was not open
when the consultants were in the area. While there is an ‘i’ sign on Soldiers Point Road, there is no
signage on the bottle shop that indicates that this is the information outlet.
The Karuah Centre is well located on the entry into Karuah. The Centre is manned by volunteers. It stocks
a good range of brochures for both Port Stephens and Great Lakes as well brochures for other areas along
the Pacific Highway. The Centre also has maps and publications as well as a limited range of local produce
for sale. Although not in its area, Great Lakes supports the centre and provides brochures etc. The Centre
would like to become Level 3 accredited.
Airport Information Centre
Newcastle Airport has an information centre and booking office at the Airport. The airport is currently
handling around 1.2 million passengers per year which is forecast to increase to 4 million. The Airport
charges operators a fee to display and distribute their brochures. While some Port Stephens operators
have taken advantage of this service, the majority of brochures relate to Hunter product.
Information Bays & Directories
Information bays with maps and directories are often located at the gateway entry points, to enable
visitors to stop and get their bearings. There are only 4 directories that are readily visible in Port Stephens
LGA:
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Bettle Park Raymond Terrace – this directory is in very poor condition with most of it unreadable. It
was interesting to observe a number of caravans and drivers pull up at the park and get out and try to
read the map. Ideally the directory should be replaced, with this possibly being a project that the
Chamber or one of the Service Clubs could take on.
Karuah ‐ There are information directories on both sides of the Highway adjacent to the Bridge, in
Memorial and Longworth Parks. These directories provide a map of Karuah with points of interest, a
map of the surrounding region, a local business directory and a list of suggested day tours from
Karuah.
Shoal Bay Foreshore Reserve – there is a very dated directory in the foreshore reserve at the
entrance to Shoal bay (near the intersection of Shoal Bay Road and Government Road). The directory
has a map promoting ‘Port Stephens Blue Water Wonderland’ and an advertisement for one of the
local real estate agents. This sign is out of place and providing minimal benefit (other than for the
advertiser)
There is a need for information directories at the main gateways into the LGA and on the approaches to
the towns. Suggested locations include:
Pacific Highway just north of the Hunter River Bridge – to service north‐bound traffic.
Raymond Terrace ‐ replace the map in Bettle Park.
Salt Ash – possibly in the service centre (Paul’s Corner) or park at the Richardson Rd – Nelson Bay
Road intersection or, for the Tilligerry Peninsula, along Lemon Tree Passage Road.
On Nelson Bay Road, to the west of the intersection with Port Stephens Drive – this should be a large
directory with sufficient parking to pull up with a caravan. The directory should be lit at night.
Other possible locations include:
Pacific Highway for south–bound traffic – possible in the rest area adjacent to the Medowie Road
turnoff.
Somewhere near the boat ramp / sporting fields in Raymond Terrace, accessible to travellers on the
Seaham Road.
On Nelson Bay Road – near the southern entrance to the LGA (Fullerton Cove area).
Road coming out of the Airport, so that travellers in rental cars can pull over and get their bearings.
Websites
Websites are now the first source of information used by consumers in researching destinations. Most
holiday searches generally start with a location or destination. The two main sites that are likely to be
used by domestic travellers, particularly intra‐state residents are the Port Stephens Tourism site
www.portstephens.org.au and the TNSW site visitnsw.com. If searching under North Coast NSW, the two
key sites are likely to be the TNSW visitnsw site and the North Coast RTO site www.midnorthcoast.com.au
which directs viewers back to the Port Stephens Tourism site.
As the first ‘port of call’ for information on a destination, the website has to ‘sell’ the destination – the
home page needs to capture interest and encourage viewers to spend time exploring the site.
www.portstephens.org.au
The website is well optimised and loads quickly. The first impression of the home page is that this is a
‘commercial’ site set up to ‘sell’ rather than being a site that motivates by ‘bombarding the visual senses’.
Likewise going into most of the pages, the first thing that appears is the selection boxes rather than a
motivational page. A good comparison is the Great Lakes site, which has a motivational page as the lead
in to the selection page.
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The site is not well set up to ‘browse’ or provide the information that visitors are generally interested in.
The selection boxes are somewhat confusing for someone who wants a complete list. Other issues with
the site include:
Accommodation – have to enter a date before accommodation will list and then only the properties
that have vacancies on those dates are listed. If ‘All’ is ticked there is no logical grouping of the
accommodation in terms of type or star rating. There is no accommodation listed for Raymond
Terrace and only one caravan park listed for Karuah.
Things To Do page – only lists the commercial tour and activity based products – there is no reference
to ‘free’ activities – bush walking, cycling, snorkelling, picnic spots etc. The Coffs Harbour, Port
Macquarie and Great Lakes sites all have a range of commercial and free activities – things that
people expect to do on holidays, activities that can be enjoyed by the whole family without having to
keep ‘putting their hand in their pocket’.
Attractions page – only lists commercial attractions – The site does not include information on the
scenic beauty of the area – enjoy the sunrises and sunsets, nor on the National Parks, beaches, the
Port etc.
Conference Page – the page is of minimal assistance to conference organisers. There is no link to the
conference planner, nor a summary of the venues available and their capacities. Most of the
information provided in the introduction to each of the conference venue and service providers is not
relevant to the very basic information that the viewer needs – venue capacity, accommodation etc.
For most of the venues, the viewer has to go through a number of pages just to pull out the basic
information needed.
Shopping – this page works on the assumption that the viewer knows what type of shop they want to
visit. It doesn’t position the shopping centres (Nelson Bay, Salamander, Raymond Terrace etc) as
destinations, nor does it promote the more alternative shopping – the farm gate outlets in the
central area of the Shire, the seafood and oysters, the local markets etc.
Entertainment – there is no listing of the entertainment available for the week. This should be put in
each week as the lead in page for the venue listings.
Our Region – the information is very limited and Tomaree Peninsula focused. There is a limited
description on Tilligerry and no mention of Raymond Terrace of the western areas of the LGA. There
needs to be a page on each of the towns and villages that have something to offer as well as
suggested touring routes.
No information on the activities that people can do in the area and where they can do them and the
infrastructure available to support them – sailing, boating, water skiing, fishing, snorkelling, cycling,
scenic drives, bird watching, koala viewing. Most of these activities are primarily ‘free’ but provide
the lead in to tour and charter operators and equipment hire etc, if people want to take it further.
www.visitnsw.com
The main issues with this site are:
Some of the descriptions about the area are inaccurate – not capturing what the area is like.
The information available is not comprehensive – for example only 25 self contained properties are
included, when there are over a thousand in the area.
Raymond Terrace has only one B&B accommodation property listed, with no properties listed for
Karuah.
Properties and businesses listed in the wrong categories.
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This website draws from the State Tourism Data Warehouse data base, which is the same data base that
Tourism Australia draws on, and which the travel wholesale industry use. The information needs to be
both accurate and comprehensive. The Tourism Unit staff need to spend time to improve the information
on the area.
Print Material
While the VIC carries product brochure of members, the information available is relatively limited. The
types of information that is missing includes:
A good map of the area – at present the VIC is distributing a commercially produced map that is
dominated by advertisements, and promotes the location of the advertiser’s business. It is also
‘Tomaree focussed’.
Activity based information – bush walks, cycle trails, fishing guide, activities with kids, 4WD areas etc.
While staff have some of this information on sheets that they will photocopy, it is not on display in
the Centre.
Brochures / maps for Raymond Terrace, Tilligerry Peninsula and Karuah.
Scenic drives, touring routes and trails (eg a farm gate trail)
A good map of the Port – a map used to be produced by the Waterways Authority but is now out of
print. An ‘around the Bay boat touring trail’ could be incorporated in the map, encouraging boaters
to visit Lemon Tree Passage, Karuah etc. This map should also include information on boating on the
Williams and Hunter Rivers at Raymond Terrace.
Product Planners, Information Kits & Special Interest Fliers / Brochures
As discussed in Section 4.6 there are opportunities to build the niche, special interest and group markets,
primarily through direct marketing. The Tourism Unit has put together two product planners –
International Planner and a Conference Planner. Additional kits are needed. To be effective, the
information available on the LGA needs to be tailored specifically for each target group. For example:
The schools kit needs to have detailed information on schools programs that can be undertaken in the
Shire and surrounding area, with these programs linked directly to the school curriculum. Risk
assessments also need to be provided
The coach kit needs to have suggested itineraries, event programs, information on accommodation
that can hold a coach group etc.
Fishing kit ‐ fishing map of the area, information on species, access, regulations etc
4WD / Soft Roading – Stockton plus other 4WD areas and routes in the surrounding region, caravan
parks and camping areas, references to maps that cover the area, information on Beach Permits,
driving tips etc
While the Information kits do not need to be glossy publications, they do need to be well designed and
formatted and targeted to the information needs of the specific market segment.
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10.3 Issues Raised by the Tourism Sector
Issues raised by the tourism industry in relation to the information services in Port Stephens are
summarised below. Most of the comments related to the VIC. Some of these issues are perceptions
expressed by tourism operators, with the perception possibly being different from reality. If this is the
case, then it points to a communication issue between the Centre and the tourism sector.
Location of the Nelson Bay VIC, with most operators believing that it needs to be located out of town.
This is discussed below.
The VIC is not accessible to people towing caravans and trailers.
The VIC is a Council asset paid for by rate‐payers, however PSTL dictates what goes on there.
Information provided by the Centre is not comprehensive – the practice of only providing information
on PSTL members has come at the expense of providing comprehensive information to consumers
and the trade. It was considered that staff were too focused on making sure that they do not provide
information on non member products rather than focussing on meeting the needs of the customers.
Customers expect that all information about an area will be available at an accredited VIC.
There are a number of brochures and maps in circulation in the area. This has arisen because the VIC
has refused to carry maps and publications that include non‐member businesses. Consequently, none
of these publications are comprehensive, which is confusing for visitors and not professional. The
member‐only policy has resulted in some good publications not being able to be displayed.
The Centre staff are too sales focused and not information / customer service focused. The focus
needs to be on promoting and motivating, not telling visitors to ‘look at the screen and come back
with a selection’.
Staff in the VIC are not familiar with all the products and services in the area. This is particularly the
case with the volunteers. Unless a consumer asks for a business by name, the staff generally only
suggest the ones that they are familiar with. There is a need for staff to undertake more famils and
product training.
VIC staff stay behind the counter rather than come out an engage visitors. The Counter is a barrier to
communication.
The setup costs for operators to take full advantage of the listing opportunities on the Port Stephens
website is considered a barrier for small business.
The tour booking service run by the VIC is duplicating and competing with a service provided by two
commercial operators.
The Tourism Unit are not adequately supporting the Level 3 Centres and discouraging other localities
/ businesses from applying to become Level 3 accredited.
Issues with the Book Easy System – for example it cannot accommodate places with a minimum stay
requirement, nor does it work effectively for letting agents.
The number of bookings that most operators are getting from the VIC / book easy system is minimal
and not covering the cost of membership and being on the system.
The VIC is not open in the evenings during peak season.
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Location of the VIC
Most of the operators are of the opinion that the VIC is poorly located and should be relocated out of
town. The preferred option was to establish a ‘Gateway’ Centre on the former sporting field on the corner
of Nelson Bay Road and Port Stephens Drive. This was identified as the preferred location as it would
service all visitors to the Tomaree Peninsula, be able to provide adequate car and coach parking, be
purpose built and include interpretative displays on the area. The Centre would also be the ‘track’ head for
the Stockton Dunes, with coaches and tour participants meeting tour operators at the VIC rather than in
the carpark at Birubi Beach. The other location suggested was Paul’s Corner at the intersection of Nelson
Bay Road and Richardson Road.
There is need for information to be available both at the ‘entrance’ to the Tomaree Peninsula and in
Nelson Bay at the Marina. Possible options to meet this need include:
Retain the existing VIC but supplement with a large Information Bay located near the intersection of
Nelson Bay Road and Port Stephens Drive. The Information Bay would provide a directory of
accommodation properties as well as contact details (web address and phone numbers) for the Port
Stephens website and the VIC.
Retain the existing Centre, establish an information bay on Nelson Bay Road and have a demountable
VIC set up at the information bay during peak periods.
Establish a new Gateway Visitor Centre on Nelson Bay Road on the approaches into Tomeree and
provide an information directory at the Marina.
Establish a new Gateway VIC and continue to operate the existing VIC or have a shop‐front or
information booth at the Marina.
Cost will be a major consideration and it is unlikely that Council would have the funds to establish a
Gateway Centre. There may be some opportunity to offset costs by some form of joint venture with a
developer or private operator. Another factor to take into consideration is that digital technology is
changing how information is being sourced and travel booked, and as such the level of demand for VIC
services may decline significantly in future years.
The other unknown factor is the likely length of tenure that the VIC will have in its current location. The
local officer from the Department of Lands advised that the land occupied by the VIC may be needed in
the future as part of the re‐development of the Nelson Bay foreshore area. This should be investigated
prior to Council disposing of the land that it owns on Nelson Bay Road, in case there is a need to hold the
site for a future VIC.
10.4 Impact of Technology – Changes in Information Delivery
Over the past decade, the internet and digital technology has significantly changed the way that
consumers source information, select destinations and products, and book travel. The recent introduction
of 'smart phones' and GPS systems, and the widespread use of MP3 players is further changing these
dynamics, particularly amongst the younger generations (primarily Generations X and Y). The changes that
are occurring and the implications for information services in Port Stephens are discussed below.
Internet
The internet is now the primary tool used to source travel information. World‐wide, on‐line travel
bookings have outpaced all other types of internet retail sales.
In 1998, 16% of Australian households had internet access. By 2006‐7 this has increased to 64%, with 67%
of households in metropolitan areas having internet access and 57% in non‐metropolitan areas. In
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December 2008, Australia had 7.9 million active internet subscribers, of which 6.6 million were households
and 1.3 million were businesses.
Just under 84% of internet connections are now broadband (compared to 16% in 2004‐5). Increased
reliability, faster speed, greater capacity to perform tasks and a reduction in cost are key factors in the
broadband take‐up rate. 21% of broadband connections are wireless, with wireless subscriptions set to
increase as the speed and coverage improve. 25% of Australians also access the internet through internet‐
enabled mobile phones.
Australians have embraced the internet with 89% of people now accessing the internet at least once a
week. Of these, 55% use the internet on average more than once a day. People access the internet from a
range of sources – home, educational institution, workforce, internet cafes etc.
A survey of Internet use undertaken by Nielsen in February 2008 found that the main activities performed
on the Internet were emails (98%), banking (72%), checking news, sport and weather (72%), paying bills
(66%) and sourcing maps and directions (62%).
Ways of using the internet and technology to access and disseminate information are continually evolving.
More recent additions include:
Google Maps – maps, satellite images, photographic images, routes, directions, distances and
travelling times.
Trip Itinerary planning programs.
Pod casts ‐ which can be down‐loaded onto MP3 players, smart phones and other hand‐held digital
devices
User generated content (blogs) both on websites and through the networking sites.
Social networking sites such as Facebook, Myspace, Bebo, Twitter etc. Combined, the two most
popular sites, Facebook and Myspace, have over 170 million active users world‐wide. It is estimated
that one in two Australians use social networking sites and hold, on average, membership of 2‐3
different sites.
Travel specific networking sites – such as Trip Wotif, Virtual Tourist, Lonely Planet Thorn Tree and
Trip Advisor. These sites not only advertise destinations, accommodation, attractions, tours, events
etc, they also provide forums where travellers can discuss their experiences – providing a digital
word‐of‐mouth referral system.
Travel directories and booking systems.
Mobile Telephones
Mobile telephones are being increasingly used to access information. In 2006, the majority of Australians,
aged 14+ years owned mobile phones, with the ownership being:
Age Mobile Phone Ownership
14‐17 82%
18‐24 94%
25‐39 91%
40‐54 87%
55+ 66%
(Source: Department of Broadband, Communications & Digital Economy)
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'Smart Phones' (the Apple 'I' phone, 3G and Next G enabled phones) and Blackberries are the new
generation of mobile telephones. These devices have operating systems that provide the ability to add
applications. These applications include internet access ‐ web browsing, email, diary ‐ organiser,
navigation (GPS), media (music, photos, video) and access to documents (eg word, pdf, excel files).
More than 50% of mobile phones in the market are now 3G or Next G connected, with 25% of Australians
already accessing the internet through their mobile phone. In 2008 Smart Phones accounted for 23% of
handset sales in Australia, with Smart Phone sales forecast to increase by 28.7% per annum over the next
4 years. Within 5 years the majority of mobile phones in Australia will be application based.
From a tourism perspective, Smart Phones are being used in a number of ways including:
Navigation ‐ with phones being GPS enabled (satellite positioning) or having GPS assist (triangulates
position from communication towers).
Internet access ‐ to source information and book travel, while travelling.
Map applications (eg Google Maps). Map applications downloaded to mobile phones increased by
144% in the 2006‐7.
Audio information and tours ‐ information and tours can be down‐loaded from the internet. The
information is GPS coded so that when the traveller passes a specific point, information is provided in
audio form.
Listening Posts ‐ locations (eg bus stops) which broadcast to mobile telephones (similar to the audio
tour concept) ‐ there is a pilot program currently underway in Queensland.
Transfer of information and images between phones.
Tourism NSW has recently launched a dedicated mobile telephone information service (m.visitnsw.com)
which enables mobile phones to access the STDW data base. (Another reason why it is important for the
data on the STDW site to be comprehensive)
GPS Systems
In 1996, the USA granted permission for civilian access to its navigation satellites. This was followed by 9
years of development, with the launch of portable GPS vehicle navigation devices in 2004‐05. Sales of
devices have grown exponentially, with an estimated 0.75 million vehicle navigation devices sold in
Australia in 2008. Sales for the first 6 months of 2009 were 35% up on the same period 2008, with sales in
excess of 1 million devices forecast for the year.
In addition most new mobile phones, digital cameras, laptops and PDAs are GPS enabled.
The introduction of GPS devices is resulting in a decline in the number of requests for directions and, to a
lesser extent, maps at VICs.
Implications for VICs
The role and function of VICs are changing, and will continue to change as new technologies emerge and
travel by younger generations increases. Currently it is the older Baby Boomer and Seniors markets that
are more likely to seek out a VIC for information. Changes that are occurring in the demand for
information include:
Reduction in requests for simple directions and an increase in the number of requests for more
detailed information.
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Customers are far more knowledgeable about the destination, often coming into a VIC with printouts
from the internet. They often have attractions and activities in mind and ask for assistance with
itinerary planning as well as ‘reassurance’ that what is shown on the internet is ‘accurate’.
Decline in bookings through the VIC booking systems – while the number of website hits and pages
accessed has increased substantially as consumers research information, the actual bookings are
being made on the accommodation booking websites (eg WOTIF) or directly with the property (either
via on‐line booking facilities or over the phone) rather than on VIC websites.
On the trade side, some tourist associations are reporting a decline in membership as operators do not see
value in their membership as most bookings and enquiries are coming via the internet.
Changes that are being made at VICs to capitalise on the digital technology market include:
Availability of internet terminals in the VIC
VICs as WiFi hotspots
Data being increasingly stored and available digitally
Quality websites, with the web address being the main ‘call to action’ in promotional material.
Investigations into and introduction of downloadable applications and information
IT training for staff, including training in data base development and applications, and e.marketing
Increase in resources allocated to data base development, electronic marketing and website
monitoring and maintenance
10.5 Directions Forward
The immediate priorities are:
To ensure that the information on the LGA is comprehensive and accurate.
To ensure that the data on the Port Stephens website and that entered into the STDW data base is
comprehensive and accurate. Note: The new Tourism Australia Tourism Exchange Australia and
Open Booking Exchange Program (TXA‐OBX) draws on the Australian Tourism Data Warehouse data
base, which in turn draws on the NSW STDW data base. As such it is important that information on
Port Stephens in the data base is accurate, comprehensive and kept up to date.
This should be followed by:
Further developing and improving the website – addressing the shortcomings outlined in Section
10.2.
Checking the accuracy and comprehensiveness of the information on Port Stephens on other popular
travel websites. This needs to be on‐going.
Developing a strategy / program to capitalise on the opportunities afforded by the internet and
digital technology. This may require changes to the staff structure and the skill base at the VIC.
Reviewing staff and volunteer induction and training programs and putting in place a famils program
for staff and volunteers. Ideally the volunteer program should be phased out and possibly be
replaced with a trainee program that draws on Government subsidies for funding.
Improving and expanding the range of information available for visitors – including a quality map,
activity based information, and brochures / maps for each of the ‘smaller’ localities.
Review the information provided to tourism operators and businesses in the LGA. There is basic
information that all operators should receive. PSTL may chose to provide more comprehensive
information to members.
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Review of the Level 3 Centres, to ensure that there are L3 outlets in strategic locations, that these
outlets are set up to display the information professionally, and that the outlets receive adequate
support and training from the Tourism Unit.
Information directories need to be erected in strategic locations on the gateway into the LGA and in
key locations on the approaches to the different localities.
Council also needs to address the issue of location of the VIC. If it is to remain in its current position, then
consideration should be given to a large information bay on Nelson Bay Road at the gateway to the
Tomaree urban areas.
Given the changes needed, it is recommended that Council continues to operate the VIC. Once the
information services are operating to the standard required, Council could consider contracting out the
management of the Centre. The management rights could be contracted to PSTL or another business or
organisation. As part of the contract, the service provider would need to meet a set of requirements and
performance criteria, including the requirement to represent all operators.
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11. LOCALITIES, TOWNS & VILLAGES
11.1 The Potential
Each of the localities, towns and villages within Port Stephens forms part of the product base of the area
and has a role to play in building visitation and contributing to the visitor experience.
In the east and the north of the LGA, the main attractions are the spectacular beauty of the Port and the
coastline and the quality of the natural environment, while to the west it is the rivers and the rural
scenery. Regrettably, in the east, the quality of the natural environment is not reflected in the quality of
the built environment. This is particularly the case on the Tomaree Peninsula and along the Nelson Bay
Road corridor, where the quality of the urban planning and design and the standard of development over
the past 50 years has generally been low, with limited ‘vision’ for the area. Council is endeavouring to
address this through the Futures 2030 Strategy and other studies that are underway.
For tourism, the dispersed settlement pattern in the LGA is a significant attribute. Firstly, it provides a
marked contrast to the urban agglomerations along the Central Coast, Lake Macquarie and Newcastle
coastlines, and marks the beginning of the North Coast. This is strengthened by Port Stephens location at
the ‘end’ of the Hawkesbury sandstone country, creating the impression that ‘you are finally out of
Sydney’.
Secondly, there is potential to establish each locality within the LGA as a destination and/or attraction in
its own right, each with its own character and with something different to offer. Each of the areas is
already attracting different markets, and this can be further developed to diversify and strengthen the
market base of the area, reducing the dependency on holiday‐makers. In addition, the diversity of the
different centres can be promoted as part of the attraction base of the area, encouraging visitors to move
between areas and explore (eg a holiday maker with a boat staying at Shoal Bay can be encouraged to
bring the boat across to Raymond Terrace and spend the day exploring the river, water skiing, go to the
Hinton pub etc). This is similar to the approach adopted in the Northern Rivers region where the emphasis
has been to differentiate the coast and hinterland areas, with the hinterland positioned as an attraction
and as a day trip destination. This has been very successful, with the hinterland now becoming a
destination in its own right, with the development of small eco style lodges, retreats and health spas.
The ‘raw assets’ are in place within Port Stephens to achieve this. In addition, much of the existing
development in the main tourist areas is ripe for redevelopment, which provides the opportunity to
influence the design outcomes. Likewise, the pressure for new development to accommodate population
growth over the next 20 years, provides the opportunity to effect change.
There is already differentiation between the areas. This needs to be formally recognised and consolidated
into a 'vision’, with the framework put in place to enable the vision to be realised.
The points of difference, character and themes that are already evident are summarised below:
Nelson Bay ‐ Shoal Bay
Built urban environment ‐ medium density, with the density likely to be increased as older style
housing is redeveloped.
Lifestyle area ‐ Nelson Bay Marina, Shoal Bay shopping centre ‐ boutique shops, cafes and restaurants
and bars.
Activity node and meeting place.
Nelson Bay ‐ focal point for the Bay activities.
Fingal Bay
Family holiday destination ‐ neat, tidy, safe.
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Anna Bay ‐ One Mile
The bushland area (former Gan Gan Army base and the Tomaree National Park) provides separation
between the highly urbanised bay‐side environment and the more laid‐back beach style of the Anna Bay ‐
One Mile Beach area. This separation needs to be retained, with any development of the former Army
Base being completely screened from the road, in particular the Gan Gan Road, with the Gan Gan Road
retained as a 'forest' drive.
Surf / beach culture
Soft adventure / adventure
'Alternative' style accommodation ‐ eco lodges, back‐packers, Samurai Resort ‐ low rise, low impact
developments in a bushland setting.
Village atmosphere in town centre
Bushlands
Headlands and beaches
Sand dunes
Bobs Farm
Local produce / farm gate outlets
Wineries / brewery
Attractions ‐ Shark and Ray, Barramundi Farm,
Tilligerry Peninsula
A 'village in a habitat'
Tilligerry Conservation Area ‐ wetlands, wildflowers and forests ‐ providing the separation from the
low standard, poorly presented development in the Salt Ash area.
Koalas ‐ with this reinforced by the Tilligerry Habitat Centre, the Tilligerry Koala Walk and koala
warning signs.
Bush setting.
Quiet, safe, protected
Landscaping of the new housing development along Lemon Tree Passage Road, reinforcing the native
habitat and wildflowers in the area.
Tanilba House and Avenue of Allies Gates
Karuah
Karuah River, access to the upper reaches of Port Stephens
Oysters
Karuah Jetty
Backdrop of the National Park, State Forest and Nature Reserves
Karuah still needs to make the transition from a highway focused town to a river focused town.
Raymond Terrace
Service Centre / shopping centre
Remnants of the historic river port / Kings Street Precinct
Hunter & Williams Rivers
Parks, Reserves, Gardens ‐ tree lined streets
Quality developments ‐ Junction Inn & Kings Terrace
Gateway to the rural west
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Seaham
Bird sanctuary
Williams River
Hinton
Small, historic rural village
Paterson River
Historic pub, cemetery & bridge
Rural scenery
Proximity to Morpeth
The potential of the different localities, towns and villages and their suggested positioning from a tourism
perspective are outlined below. Issues that need to be addressed and suggested improvements and
changes are also identified. (Note: Some of these issues have been raised in earlier sections of this
report).
11.2 Nelson Bay
Nelson Bay is the main visitor destination in Port Stephens, with the town identified as a tourism town in
the Lower Hunter Regional Plan. The town is the focal point for tourism in the area, with visitors coming
into Nelson Bay for a variety of reasons – to shop and dine, for entertainment, to access the marine tours
and cruises, for information, to go to the beach and to enjoy the atmosphere. The marina, is the main
attraction and activity node, bringing together shopping, dining and entertainment in a waterfront setting.
While the town thrives during the summer school holidays, it struggles throughout the remainder of the
year. Retailers are in the difficult position of balancing their merchandise mix to meet the day to day
needs of the local community, while trying to attract the more lucrative tourism dollar. Some of the
businesses do not present well, with customer service levels being low. The predominance of commercial
businesses also creates ‘dead‐spots’ in the centre. While visitors generally make their way from the
waterfront into the town centre, there is not a lot on offer in the centre, to attract expenditure, encourage
visitors to stay longer or generate repeat visitation. On subsequent visits to the area, unless they
specifically need to visit a shop / business in the town centre, visitors are more likely to go directly to the
waterfront or to Shoal Bay, for their ‘pleasure’ shopping and dining and to the Salamander Shopping
Centre for other shopping.
Traffic congestion and parking are significant problems at peak times, with conflict between through traffic
trying to access other areas of the peninsula and destination based traffic, as well as the volume of people
trying to visit the town. There are also issues for the coach market, with no adequate provision for coach
parking.
These issues are being addressed by Council, with Nelson Bay Town Centre Management also
endeavouring to improve trading performance.
From a tourism perspective the main issues with the Centre are:
Overall presentation of the area – lack of vision and coordination. There are no design guidelines in
relation to aesthetics, resulting in less than optimal outcomes for the centre.
Parking – while metered parking has been introduced on the waterfront to encourage vehicle
turnover, the time limits bear no relationship to how people use the area. The time limit does not
provide visitors with sufficient time to take a tour and to then dine or shop in the area. As it is people
arrive back from marine tours to find that they have been booked. A simple solution to this problem
would be to be able to buy a parking ticket for ‘x’ number of hours (with the number of hours
exceeding that available from a parking meter) when purchasing the cruise ticket – a half day cruise
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may entitle the visitor to be able to purchase a 6 hour ticket, with the time and date stamped on the
ticket.
Inadequate provisions for tourist coaches. Coaches need to be able to drop off and pick up
passengers and also have somewhere to park while the group is on tour.
No ‘sense of arrival’ to the town – the entry corridor along Stockton Street is not attractive. While
there are dolphin / whale sculptures on the two roundabouts (intersections of Stockton Street with
Church Street and Dowling Streets), these are the only visual reference to the positioning as the
‘dolphin capital’ of Australian. There are no visual connections between the entry corridor and the
waterfront, nor are there and strong visual cues at the Church Street – Donald Street intersection or
the Stockton Street – Dowling Street roundabout that draw visitors into the town centre. In fact the
town centre when viewed from these intersections does not appear attractive or vibrant – there is
nothing to attract attention or to stimulate interest (we’ve got to have a look down there).
Very poor directional and informational signage, including lack of visibility of signs to the Visitor
Information Centre.
The poor presentation of the waterfront (this is discussed in Section 5.3).
Difficulties in accessing the VIC, particularly in peak times and lack of parking for caravans and cars
towing trailers (see Section 10.2).
Limited space for events and activities (see Section 8.3).
There are significant divisions in Nelson Bay, between the town centre traders and the waterfront and
between the different business, tourism and community groups. There appears to be a culture of ‘blame’
and ‘excuses on why things are not happening’ rather than taking the initiative to make them happen. If
the town is going to move forward, the traders need to be working together, with Council taking a strong
leadership role to raise the ‘standard’ in the area.
11.3 Shoal Bay
Shoal Bay is a popular activity node with visitors congregating both in the cafes in the shopping centre and
on the beach. While improvements are occurring along the foreshore reserve opposite the shopping
centre, the area would benefit from a coordinated approach. The toilet block is very poorly located and if
it is to remain, needs to an exterior makeover. Signage in the area also needs to be up‐dated. The parcel
of vacant crown land on the corner Shoal Bay and Government Roads, functions as a parking area for the
shopping centre and the beach. Should this land be developed, consideration will need to be given to
providing adequate parking in the area.
11.4 Fingal Bay
Fingal Bay is very popular with the family market, with the area being relatively quiet and safe. The beach
and island are spectacular, with this area being one of the most scenically attractive parts of the LGA. The
area presents as ‘clean and neat’ but lacks vibrancy. The new development with retail shops in Market
Street should provide a more lifestyle focus for the area.
Consideration should also be given to corridor tree planting, extending the Tuckeroos planted at the Surf
Club along the foreshore area and then up Boulder Road to Market Street. The toilet block in the park
needs a face lift. There may be an opportunity is to operate tours to Fingal Island, off the beach at Fingal.
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11.5 Anna Bay ‐ One Mile
Anna Bay – One Mile Beach area has a beach‐surf culture atmosphere, with the tourist accommodation
being ‘eco’ style with small cabins in a bushland setting and caravan parks.
The main attractions are:
Stockton Bight (Birubi Beach and Stockton sand dunes) – by far the main attraction (see Sections 5.2
and 5.3).
One Mile Beach and Samurai Beach – with One Mile being well known as a surfing beach.
Tomaree National Park – the headlands in the area are popular for walking and shore‐based whale
watching.
Boat Harbour – protected bay with an ocean boat ramp. There is also a boat ramp at Fishermans Bay
Presentation
Gan Gan Road
The drive along Gan Gan Road from Nelson Bay is very attractive, with the forests and wetlands providing
a marked contrast to the suburbs on the northern end of the Tomaree Peninsula and sets the ‘tone’ for the
One Mile Beach area. It is very important to retain this drive, with any development on the former Army
Camp site, set well back and effectively screened from Gan Gan Road.
Access to the area from Nelson Bay Road via the southern end of Gan Gan Road is not as attractive. It
would benefit from corridor tree planting (melaleucas trees) and the removal of out of date and/or poorly
presented signs.
To date, most of the development has occurred by way of feeder roads radiating from Gan Gan Road,
rather than strip development along the Road. The actual urban interface with the Road is relatively
limited and as such can be effectively managed. Strip development should be avoided with the road
corridor protected and landscaped.
The Melaleuca trees are a feature of the area and it is suggested that they be adopted as the feature
street tree for the area, extending the clump of Melaleucas adjacent to Essington Way – Callaghan St.
There is a need for signage to the Stockton sand dunes at both the intersections of Gan Gan and Nelson
Bay Roads, with good clear directional and advance warning signs at the entrance to the dunes. The
current signs are not effective or attractive.
Gan Gan Road – it is important to protect this Melaleuca Trees have been used effectively to
corridor to provide separation between the Anna screen development from the Gan Gan Road
Bay- One Mile area and the Nelson Bay area. corridor.
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Anna Bay Town Centre
The Anna Bay shopping centre has the advantage of being quite compact with a ‘village’ feel. It does not
present well, lacking coordination and landscaping. Given the small size of the centre, the appearance and
atmosphere could be changed quickly and effectively with a town centre beautification program. Design
guidelines and/or a DCP also need to be formulated for the area to provide the framework for future
development.
Birubi Beach – Stockton Sand Dunes
The Stockton Sand Dunes are one of the main attractions of Port Stephens and are the most significant
point of difference between Port Stephens and other NSW coastal destinations. The dunes also have a
high profile in the marketplace. The Stockton product is being sold successfully in the international
market‐place, with the area often the first stop for international visitors in the LGA. It is also the focal
point for adventure based tourism activities in the LGA.
As discussed in Section 5.3, this area presents very poorly, suffering from land degradation, graffiti and
vandalism, with the facilities and infrastructure being well past their use‐by date. The area also suffers
from significant access and parking problems. A joint Interagency – Council approach to the resolution of
issues and the redevelopment of the area to provide world class visitor facilities and interpretation is
required.
Boat Harbour
The area presents well. There is opportunity to formalise and improve the headland walks.
One Mile Beach Car Park
The One Mile Beach access and car park area is attractive with mature trees on the flat, flanked by
bushland. The area is however being degraded by anti‐social behaviour. Consideration should be given to
installing a gate at the entrance and locking the area at night. The adjoining caravan park operator should
be approached to manage the gate.
Tomaree National Park & Adjoining Reserves
The Tomaree National Park and foreshore reserves are one of the main features of the area, with the
headlands being very popular for walking and shore‐based whale watching. In the Fishermans Bay – Anna
Bay area the interface between the Park and the urban areas is poor with weed infestation and the
dumping of rubbish being problems. The interpretative shelter provided at Fishermans Bay is good,
however the area around it and the toilet block is very degraded. The interpretation on the walk way near
Birubi Point (off Ocean Avenue) needs to be replaced, as do the toilet blocks and picnic facilities in this
area.
A designated whale watching area should be identified, with the area having interpretive material on
whales, similar to that provided in the Botany Bay National Park at Kurnell.
Toilet block at Fishermans Bay needs replacing Information Plaques at Birubi Point need
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Destination Management
This area has the potential to be a very significant attraction for both Port Stephens and NSW, for both the
domestic and international markets. The emphasis needs to be on formulating a vision for the area and
putting in place the framework to realise it. Key factors that need to be addressed are:
Management and development of the Birubi Beach – Stockton Sand Dune area (Worimi Conservation
Lands) to resolve current issues and to provide world‐class visitor facilities.
Positioning the Anna Bay shopping centre as the service centre / gateway for the dunes – a small,
vibrant, centre with an ‘alternative’ atmosphere.
Protecting and enhancing the Gan Gan Road corridor – preventing strip development and enhancing
the bushland corridor.
Ensuring that future development, particularly tourist accommodation in the area, reinforces the
coastal living – surf culture theme. It is important to put in place the planning polices (eg design
guidelines, DCP etc) before major development occurs in the area. The type and scale of
development needs to be very different to that of Nelson Bay, with emphasis on quality design and
landscaping.
Improving the presentation of the National Park – Foreshore Reserves, with a foreshore walk from
Samurai through to Birubi Beach, as part of longer walk that connects through to Tomaree Headland.
Facilities / interpretation for shore‐based whale watching is also needed.
Completing the cycle‐way from One Mile (Samurai Beach Resort) through to Anna Bay and onto
Birubi Beach. There is also a need for a cycleway link from Anna Bay to Nelson Bay.
Improved signage, with directional and promotional signage for the sand dunes.
11.6 Bob's Farm
There are a number of farm gate outlets, wineries and brewery in the Bob’s Farm area as well as the
Barramundi Farm and the Shark and Ray Centre. There is potential to develop a fresh produce trail in the
LGA, with this area being a focal point.
11.7 Tilligerry Peninsula
The Tilligerry Peninsula is located to the west of the Tomaree Peninsula and provides access to the middle
reaches of Port Stephens. The Tilligerry State Conservation Area (SCA) covers most of the central and
southern parts of the Peninsula with habitats including extensive wetlands, native heath and forests. In
some parts of the SCA, wildflowers are prolific in spring. Settlement is concentrated along the northern
shores of the Peninsula, at Lemon Tree Passage, Tanilba Bay and Mallabula.
The area is known for its koalas, with its main attractions being:
Lemon Tree Passage ‐ Reserve and Marina ‐ boat ramp, picnic areas, play ground, bay pool, walking
trails, boat and kayak hire.
Tilligerry Habitat Centre ‐ walking trails and interpretation.
Tanilba House and the Tanilba Gates ‐ historic house.
The Discovery Caravan Park provides quality accommodation, with the Lemon Tree Passage Motel being
one of the most attractively presented motels in the LGA. Other accommodation includes holiday houses
and apartments and B&Bs. There are three licensed clubs, the largest of which is the Bowling Club, which
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has a large auditorium and meeting rooms. There is a neighbourhood shopping centre at Tanilba Bay and a
small local centre at Lemon Tree Passage. There is an Italian pizzeria on the Marina.
The Peninsula hosts two annual events, the Tilligerry Festival and the Tilligarry Motorama, with the
Motorama attracting attendees from throughout NSW. The Bowling Club also holds a large darts
tournament as well as the occasional bowling event.
Positioning and Potential
The Tilligerry Peninsula is already known for its koalas and there is potential to consolidate this perception
and position the area as the 'Koala Capital' of Port Stephens. The koalas are an attraction for both the
international and domestic markets. For the international market, the area needs to be promoted in
conjunction with Oakvale Farm with visitors able to see koalas up close and then experience them ‘in the
wild’ at the Tilligerry Habitat Centre. For the domestic market, the attraction is to see koalas ‘in the wild'.
In peak holiday times, the Peninsula provides access to the Bay without the congestion of Tomaree
Peninsula.
With the product available, the market potential of the area includes:
FIT international visitors ‐ to see the koalas. This market could be encouraged to stay overnight and
go 'spot lighting' along the trails in the area.
Seniors groups ‐ View Clubs, Probus Clubs, walking groups, retirement home groups etc ‐ combining
the Tilligerry Habitat Centre, Tanilba House, the koala walk, lunch at one clubs or at the pizza
restaurant and possibly with a ferry pick‐up at the Marina with the group taken on a trip on the Bay or
across to Karuah, Soldiers Point or Nelson Bay where they a picked up by their coach.
Day visits from people staying in Port Stephens, Newcastle and the surrounding the region – to see
the koalas and also undertake the walks in the area.
VFR and regional market ‐ day out / picnic in an attractive location ‐ accessible to Raymond Terrace
and the Hunter, without the congestion of the Tomaree Peninsula. In particular the area is ideal for
families / grandparents with pre and primary school aged children ‐ with the area being safe and
suitable for children to explore.
School excursions ‐ to the Habitat Centre and mangrove board‐walk.
Group picnics (eg sporting clubs presentations), with the Bowling Club providing a wet‐weather
alternative venue.
Regional boating and fishing markets / fishing clubs and social group weekends away.
Boat touring market ‐ boats pulling up to buy a pizza, look around the shops etc.
Destination Development ‐ Suggested Product and Infrastructure Improvements
Tilligerry Habitat Centre ‐ The Centre is a quality attraction that has the potential to be developed
further. The Centre would benefit from assistance with merchandising which would add to the
attraction base and also provide additional revenue. It should also be positioned as the 'track head'
for all walking trails on the peninsula, with the long term objective being to have a network of linked
trails throughout the Peninsula. Consideration should also be given to approaching National Parks and
Hunter Water to explore the possibility of the Centre hosting an interpretative display (funded by the
Agencies) for the Tilligerry State Conservation Area. The information display (L3 Centre) also needs to
be improved.
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Walking trails ‐ Develop a network of connected walking trails on the peninsula. At present there are
trails at the Tilligerry Habitat Centre, to the Lookout and around the foreshore from Cook Street to
John Parade. There is potential to develop a foreshore walking trail around the northern side of the
Peninsula from the Habitat Centre to the Lemon Tree Passage Reserve and continue the Mangrove
Board walk along the foreshore and then link back through Mallabula to the Habitat Centre or through
Kooindah Park to the Habitat Centre. The walking trail to the lookout needs to be upgraded.
The feasibility of establishing a board walk (or walks) in the Tilligerry SCA, accessible from Lemon Tree
Passage Road should also be explored.
Accommodation – There is an under‐supply of motel rooms on the Peninsula. The existing motel is
very well located adjacent to the Club, and ideally this property should be expanded rather than a new
property developed. An additional 15 rooms would enable the motel to accommodate coach tour
groups and residential style small meetings.
The potential to grow the Motorama event is limited by lack of accommodation. Consideration should
be given to allowing temporary camping on the Mallabula sporting fields with access to the amenities.
The camping could ‘kick‐in’ once the caravan park is booked out. The camping could also be managed
by the caravan park operator on behalf of Council with some form of revenue sharing arrangement in
place.
Floating Pontoon – Due to the high tidal range, it is not possible for boats to pull into the beach /
reserve at Lemon Tree Passage. There is a need for a floating pontoon to enable boats to tie‐up and
have a meal in the restaurant or patronise the shops.
Playground Facilities / Reserve – The establishment of a quality regional playground in the foreshore
reserve at Lemon Tree Passage would strengthen the Peninsula’s as a destination for the people with
younger children, sporting groups etc. The Chamber could also consider funding a large jumping
pillow in the reserve in peak holiday times.
The large picnic shed needs to be painted and the brickwork at the toilets steam or pressure cleaned.
The internal circulation pattern and parking in the Reserve also needs to be addressed to reduce
pedestrian / vehicle conflict.
Presentation – The landscaping along the Lemon Tree Passage Road frontage of the new residential
estate at Mallabula is very attractive. The shopping centre in Tanilba Bay would benefit from similar
landscaping, particularly along the Lemon Tree Passage Road frontage. Landscaping would also
improve the presentation of the shopping centre at Lemon Tree Passage. A landscaping policy or DCP
should be considered to encourage quality landscaping in keeping with the habitat values of the area.
Signage – Suggested improvements to the signage in the area include:
‐ Gateway signage at the entrance to the Peninsula, preferably reinforcing the koala theme.
‐ Information directory, either at the entrance to the Peninsula or on the edge of the urban area
(eg to the west of the intersection of the Avenue of the Allies Road and Lemon Tree Passage
Road.
‐ Improving the signage at the entrance to the walks in Kooindah Park.
‐ Improve directional signage to the main attractions and facilities.
‐ The koala signage throughout the area also needs to be updated. This signage adds to the ‘koala’
theme of the area.
Information – There is a need for a good map of the area showing the attractions, accommodation,
services and walking trails. The koala habitat areas and hints for how to locate a koala should also be
included. It would also be ideal if a ‘koala hotline’ could be established, whereby local residents who
spot a koala can ring in the location to the Tilligerry Habitat Centre, with Centre putting up a daily list
of where visitor are likely to see a koala. The koala sitings could also be emailed to the Caravan Park
and possibly a business in the Lemon Tree Passage Shopping Centre for inclusion on notice boards.
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11.8 Karuah
Karuah is a small river town located on the Karuah River at the western end of Port Stephen. The town is
the northern gateway into Port Stephens LGA. Karuah grew from being a river crossing to a highway
service town. The town was by‐passed in 2004, and although there have been a number of studies
undertaken, the town has struggled to make the transition from highway town to a riverside town. Traffic
that previously stopped in town is now stopping further north at Bulahdelah, however the dynamics will
change again once the Bulahdelah by‐pass is completed, with Karuah likely to attract more traffic.
The town is well serviced by accommodation with three small motels and two caravan parks, one of which
is part of the Big 4 chain and is a large park with quality facilities. There is a licensed Club, hotel and a
small strip shopping centre with a number of food outlets including a good seafood (fish and chip) outlet.
The town has always been a popular transit and overnight stop on the Pacific Highway and still attracts
some travellers, who are aware of the town’s facilities. The two parks on either side of the bridge
(Memorial and Longworth Parks) are well presented and pleasant places to stop. They are ideal for
families travelling with young children. The service station has a road house that is popular with regular
highway travellers, with the roadhouse also attracting the occasional coach tour group. The Karuah Centre
provides visitor information and sells locally produced jams and condiments.
Karuah has traditionally been known for its oysters, with oyster sales available directly from the oyster
leases. The oyster leases form part of the townscape and are a point of difference from other river towns
along the Highway corridor. There is potential to do more with this asset.
Karuah has a number of small events, including a music festival, fun run and timber and oyster festival,
which have the potential to be grown.
The main attractions are:
Karuah River – the boat ramp is currently being upgraded, which will significantly improve access to
the waterway. Due to the river currents, the area has a reputation as being a difficult and somewhat
dangerous place to launch a boat, with this to be rectified by the new facilities.
Longworth and Memorial Parks – picnic, playground and toilet facilities, with Longworth Park having
an enclosed river pool and large shelter shed suitable for group picnics.
Oysters
There is also a mangrove boardwalk however this is very short and lacks interpretation.
Market Potential
While passing travellers will remain a significant market for the town, the improvements to the boat ramp
provide opportunities to grow both the fishing and boating markets. Karuah needs to concentrate on
identifying and growing markets that will come into town to undertake a specific activity rather than be
dependent on waiting for visitors to come through and stop. Existing and potential markets for the town
include:
Highway travellers, with potential for this market to grow once the Bulahdelah by‐pass is in place. It
is important to promote the fact that the Karuah Petrol Station and Roadhouse are open 24 hours per
day, seven days per week.
Event attendees – with potential to grow this market.
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Retirees – the Karuah Jetty Caravan Park is ideal for this market, providing a quiet, relaxed
environment with a range of facilities, including a long jetty which is popular for fishing.
Anglers – individuals, small social groups and fishing clubs, with potential to grow this market once
the boat ramp is improved.
Boating enthusiasts – once the ramp is improved there is opportunity to promote Karuah to the
regional boating market, as an alternative launching area to the Tomaree Peninsula. Visitors with
trailer boats staying on the Tomaree Penisula (particularly the smaller ‘tinny’ style boats) could be
encourage to come across to the Karuah to launch their boats to explore the upper reaches of the
Port and the Karuah River.
Boat touring – people touring around the Port on their boat should be encouraged to pull into Karuah
and tie up, buy oysters and have a look around.
Coach tour groups – combining Karuah with a ferry trip to other parts of the Port, where the groups is
met by their coach.
Social groups – retirement homes, disability groups, sporting clubs etc – using the facilities in
Longworth Park and the adjoining Club.
Airport travellers – Karuah is already seeing a very small market of people from the North Coast
staying overnight to fly‐out in the morning from Newcastle Airport. Karuah is viewed as a convenient
and low cost option.
There is a need for mountain bike trails and riding areas within the Hunter. Consideration should be given
to whether the trails in the surrounding State Forests, National Parks and State Conservation Areas are
suitable for mountain bikes. There are a number of areas in southern NSW, including Bermagui, that have
been very successful in building mountain bike trails and facilities. Mountain bike trails are currently being
developed in the Awaba State Forest and Watagan areas. The mountain bike market is relatively high yield
and travels year round. (Note: further information on mountain biking can be provided if separately if
required).
There is possibly potential to do more to position Karuah as an attraction on the Pacific Coast Touring
Route.
Product & Infrastructure Development
Improving presentation ‐ As identified in other reports prepared for the town, improving
presentation is a priority. Five years on from the by‐pass, old highway infrastructure and signage (eg
Zacs) is still present in the town, with the town presenting as a run‐down by‐passed town. The first
stage of the streetscaping program has been implemented and it is important that this be continued.
The landscaping breaks down the scale of the highway corridor, reduces the visual impact of the
telegraph poles and power cables and focuses attention on the town centre. A number of businesses
also need to improve their presentation – fresh coat of paint, replace / refurbish their signage, and
landscaping. Consideration should also be given to improving the presentation of the outdoor dining
areas adjacent to the eateries. The town would benefit from co‐ordinated signage and from foot‐
path landscaping to compliment the median strip plantings, as well as flags and banners to add colour
and movement.
Iconic eatery – An iconic eatery or ‘eat street’ has the potential to draw visitors off the Highway.
Travellers, particularly repeat travellers, will build a stop into their trip to visit a specific eatery – for
example – The Robertson Pie Shop, Nimmitabel Bakery, Beechworth Bakery (Vic), Long Track Pantry
(at Jugiong off the Hume Highway), Paragon Cafe in Goulburn etc. In Karuah, the sea food outlet
and/or be bakery could potentially be positioned in this role. There may need to be improvements in
the product offered and the presentation. The roadhouse also specialises in Oyster Pies, with this
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also being a food product that could be promoted. Product awareness can be built relatively quickly
through PR style marketing, however the product needs to be of a high standard and offer something
different (biggest, best, unusual etc) before it can be promoted.
‘Karuah Kitchen’ was suggested as a possible business opportunity, bringing together – smoked
oysters, smoked chickens, oyster pies, local chutneys and jams, Medowie macadamias and possibly
some bush tucker foods. The cost of setting up a commercial kitchen was considered prohibitive,
however it is noted that the community centre has a commercial kitchen that is not being used and
that it may be possible to lease the kitchen from Council to undertake preparation, with the products
sold through a main street business.
Oyster leases – The oyster leases add character to the town and provide a point of difference to
other localities along the Highway corridor. Most of the oyster sales signs, particularly those that can
be seen from the bridge, are old, faded and difficult to read. To the passing motorist, it is not clear
whether the oyster leases are open for sales, or whether they are a casualty of the by‐pass. There is
potential to provide interpretation of the oyster industry in Longworth Park adjacent to the oyster
sheds and also encourage travellers to wander along Barclay Street and have a look at the sheds
(from the road).
If one of the operators is prepared to give a talk to coach and school groups, then Karuah can also be
included in suggested Port Stephens itineraries and programs prepared for these markets.
Boat Ramp – ensure that there are picnic facilities available close‐by to support the ramp.
Consideration should also be given to planting shade trees in the reserve to the immediate west of
the boat ramp.
Mountain Bike Trails – assess the potential to use the trails in the surrounding National Parks, State
Forests and State Conservation Areas for mountain‐biking. This could potentially be developed into a
product and marketed to mountain‐bike enthusiasts and clubs.
Fishing Competition – Explore the potential for developing a fishing competition to capitalise on the
new boat ramp.
Visitor Information – Seek to have the Karuah Centre accredited as the L3 Information Centre.
Boat Shed in Memorial Park – this would be ideal for some form of eatery and/or gallery. This
opportunity needs to be investigated further.
Events – the community needs advice and assistance to grow the Music Festival and Fun Run and to
revamp the Timber and Oyster Festival.
Temporary Accommodation – ensure that the planning policies are suitable to enable temporary
event camping on the oval (or other area) to facilitate growth of the Music Festival.
Event signage – need for infrastructure to hang temporary signs for events – with these signs located
in the highway corridor prior to the Karuah exits.
11.9 Raymond Terrace
While Raymond Terrace has a very strong visitor base, it has been overlooked in relation to tourism.
Raymond Terrace has a number of roles to play in the industry including:
Southern gateway to the LGA. There are thousands of travellers per day stopping in the food‐outlets,
service stations and motels at Heatherbrae and Raymond Terrace, however there is nothing in place
to promote Port Stephens to these travellers.
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Service centre for the LGA – centre for business and work related travel both in Port Stephens and for
the western areas of Newcastle. Raymond Terrace is also servicing the airport.
Potential day trip destination for visitors staying in Port Stephens.
Node for sports related tourism, with sports event attendees a potential future market for the
coastal areas.
As the centre develops, it will increasingly become the focal point for business‐related tourism in the LGA
and will ultimately need a business standard hotel and possibly serviced apartments within the CBD.
The poor presentation of Heatherbrae area gives travellers a false impression about Raymond Terrace.
Overall Raymond Terrace presents reasonably well, with some are areas being very attractive – the entry
corridor from the south to Kinross Park, Port Stephens Street to the south west of Williams Street,
Jacaranda Avenue and Riverside Park. There have also been some quality developments – such as the
extensions to the Junction Inn and Kings Terrace. Council should be looking to ensure that all new
development in the town is of a high standard.
As discussed in Section 9.1, the signposting into Raymond Terrace from the Pacific Highway in the
Heatherbrae area is ineffective, with the signs on the western side of the road (coming from the south)
being obscured by vegetation, while the international services symbol sign at the Masonite Road
Roundabout for south bound travellers directs travellers to Heatherbrae not into Raymond Terrace.
Within Raymond Terrace, there are no sign directional signs to the river.
With the combination of the riverside setting and the historic river port buildings, there is considerable
potential to develop the Kings Street precinct and riverside area as a lifestyle ‐ professional precinct for the
centre. If the area works for the town, it will also work for visitors.
In the short term, the highest priority projects, from a tourism perspective are:
Upgrading the presentation of Bettle Park – restoring the plane, replacing the information directory
and landscaping the area.
Linking Riverside Park to Kings Park via the foreshore, and onto Roalyn Park.
Continuing to improve Roalyn Park, including information on birds, with the Park to be included in
‘bird product’ developed for the LGA.
Addressing signage issues.
Providing a designated parking space for caravans / cars with trailers close to the town centre, with
this sign posted from Adelaide Street.
To promote the Raymond Terrace to visitors on the Tomaree Peninsula who have trailer boats, as a
day trip location – explore the Hunter and Williams Rivers.
To improve the Raymond Terrace brochure.
To improve the information on Raymond Terrace and the surrounding area that is distributed to
sporting visitors coming into town for events.
To develop Raymond Terrace as a ‘hub’ for coach tour groups, with the groups based in Raymond
Terrace and taking day trips into the surrounding region.
Consideration should also be given to improving the presentation of the Adelaide Street corridor (primarily
between Bettle Park and William Bailley Street), developing it into a tree‐lined boulevard, rather than
remaining as a former highway.
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11.10 Rural West
The western area of Port Stephens is scenically attractive, with both Seaham and Hinton having something
to ‘offer’ the day trip market. Hinton is also very close to Morpeth and has road links across to Paterson
and Maitland. There is opportunity to put together a day trip guide which encourages visitors staying on
the coast to explore the hinterland, via Raymond Terrace. Possible touring routes include:
Raymond Terrace and Hinton (Osterley Road), and then onto Morpeth (and possibly Maitland)
returning via the Duckenfield or Raymond Terrace Roads.
Raymond Terrace, Morpeth, Hinton, north to join the Clarence Town Road, to Seaham and return.
Raymond Terrace to Seaham to Clarence Town returning via East Seaham – Newline Road or one of
the roads linking across to the Highway to connect with the Medowie Road.
Raymond Terrace to Hinton, Paterson (history), Gresford (wineries) and north into the Allyn River
area at the base of the Barrington Ranges, returning via Dungog, Clarence Town and Seaham. There
are a range of forest trails in the Allyn River area that connect back to the Williams River Valley near
Dungog. This area is ideal for the 4WD market (staying in the Anna Bay area) as a day trip from
Stockton.
There is potential to work with Maitland and Dungog to develop joint routes which encourage visitors in
these LGAs to explore Port Stephens and vis‐versa.
11.11 Seaham
Seaham is developing as a very attractive rural village, with its main assets being the Seaham Swamp
Nature Reserve and the Williams River. The recent improvements to Seaham Park create an attractive
entrance way into the village, and when the shelter shed is refurbished, will provide a good facility for
group picnics.
The Seaham Swamp Nature Reserve is a bird ‘hotspot’ with the Swamp supporting just over 100 species of
local and migratory birds including a number of rare and endangered species. Late afternoon is an
amazing time with the birds coming in to roost for the night. There is a bird watching hide has been
established at the northern end of the Swamp (East Seaham Road) with the hide providing quality
interpretation. There is also a walking trail from the Nature Reserve entrance in Seaham Road (Warren
Street) to Tom’s Cottage, which is historic slab cottage dating from the 1800’s. While there is an
interpretation board near the St Andrews Church entrance to the Reserve, there are no directions to the
Cottage, along the walking track (where the track divides). The track is also not connected to the hide.
The other attraction in the Reserve is the Edgeworth David Quarry. The Quarry contains 90‐120 million
year old rocks and was dedicated in 1925 for scientific purposes. The quarry is used by the University of
Newcastle for excursions and has attracted groups of international geologists.
The Williams River is popular with a number of access points in close proximity to Seaham. There is a
small picnic area and boat ramp in Torrence Street adjacent to the Jimmy Scott Bridge. The boat ramp is
steep and in poor condition. Touring caravans and campervans occasionally overnight along the River.
The access points along the East Seaham and Newline Roads are not signposted.
There is a B&B in Seaham, with motel and caravan park accommodation available in Raymond Terrace (10
minutes drive). There is also a general store.
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Market Potential
Potential markets for Seaham include:
Birdwatchers – there is potential to develop a ‘bird product’ combining the bird tours of Broughton
Island with other bird hotspots in the LGA, including Seaham Swamp.
Coach tour groups staying in Raymond Terrace – as an evening excursion before dinner.
Geology and climate change students – promoting the Quarry to the Sydney universities.
School excursions.
Day trip market from people staying in the surrounding region – the area would particularly suit
families, people with canoes, and people interested in river fishing,
Product Development
Projects and improvements that would enhance the Seaham experience include:
Council to continue to support the Seaham community in improving Seaham Park.
Walking trail from Seaham Park to Tom’s Cottage via the wetland, connecting with the existing trail,
with this trail then extended to include the bird trail. This should be supported by some
interpretation as well as track markers.
Walking trail from Seaham Park to the Williams River.
Bush regeneration of the Nature Reserve – to remove weeds.
Local shop – simple improvements to presentation (upgrade landscaping, repaint signs and furniture,
possibly umbrella or pergola) would encourage visitors to call in. The shop should also consider
investing in a coffee machine.
Information directory – possibly located at the shop to encourage visitors to pull into the shop. This
would need to be signposted using the ‘i’ sign.
Improved directional signage – to the bird hide, quarry and river access points.
Map / brochure of Seaham for distribution within the LGA and at Maitland and Dungog VICs and
relevant attractions, such as the Hunter Wetlands Centre and Botanic Gardens.
11.12 Hinton
Hinton is a lovely rural village located near the confluence of the Paterson and Hunter Rivers, just north of
Morpeth. The attractions of the village include the Paterson River, historic Victoria Hotel, historic river
bridge, Pioneer Cemetery and historic sporting ground. The village has a number of heritage buildings that
have been restored, as well as number of heritage buildings near the Hotel that could be very attractive if
restored and suitable for use as a cafe, gallery etc. The village is well maintained and presented, with the
landscaping being attractive. The rural setting is also beautiful, with the fertile river plains with views to
the Barrington Ranges in the distance.
The Hotel has a large beer garden which is being landscaped and would be ideal for entertainment as well
as group functions. The Pub is separated from the river by a small park, with the park being well
maintained. The park has very limited facilities, and would benefit from having toilets. It would also lend
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itself to be developed as a ‘show case’ garden. There is a jetty in the park which could potentially be used
by boats to visit the Hotel.
Market Potential
Potential for the pub to build a weekend lunch trade, drawing from the surrounding region.
Small events – music in the park
Day trip market‐ with Hinton positioned with Morpeth.
Boat market
While the village has a very attractive setting, the potential to build visitation is largely dependent on the
Hotel being entrepreneurial with its activities.
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12. STRUCTURE & MANAGEMENT OF TOURISM
12.1 Overview
Tourism is a global industry with Port Stephens competing regionally, nationally and internationally for a
share of the tourist dollar. The industry itself is complex and fragmented, with the sales and distribution
process being quite convoluted and involved.
At the local level, the industry is dependent on a range of Government Agencies, Council, operators,
community groups and individuals to provide and deliver the products, experiences and
infrastructure that forms the basis of the tourism industry.
These products and services need to be coordinated, packaged and positioned to appeal to
consumers (product development). Depending on the products, this is generally undertaken by
operators and by the local tourism organisation / Tourism Manager.
These products then need to be put into the sales and distribution systems – domestically and, where
relevant, internationally. Again, depending on the product, this is generally undertaken by the
tourism organisation / Tourism Manager and/or individual operators. It can involve direct sales, or
use of other distribution networks – such as travel wholesalers, retail agents, airlines etc.
Demand for the destination and its products then needs to be created. Potential consumers need to
be made aware of the destination and the products, and motivated to inquire. The inquiry then
needs to be converted to a ‘sale’.
Once a sale is made, the services and infrastructure need to be in place to deliver the ‘product’ –
placing the responsibility back onto the local area and local operators.
The number of players involved at each stage of the process, the different scales of operation (from
individuals through to multi‐national organisations) and skills and resources available, complicates the
process.
Within Port Stephens LGA, the major players in the tourism industry are Port Stephens Council, Port
Stephens Tourism Limited and the operators
Council is involved at all levels. The Tourism Unit of Port Stephens Council undertakes the
coordination role, is a major player in the sales and distribution process, undertakes the destination
marketing primarily in conjunction with Port Stephens Tourism Limited (PSTL) and operators, and is
involved in servicing visitors once they have arrived in the area.
PSTL is the peak industry body for tourism in Port Stephens, with its role being primarily to market
and promote Port Stephens in a joint venture with Council. It also has as its stated functions, the
marketing and promotion of its member’s businesses, advocacy on behalf of the tourism industry and
members and professional development of members.
Operators are largely responsible for the provision of the product and services. Some operators have
the skills and resources to manage their own distribution, marketing, promotion and sales. These
operators may do this, wholly or partly, in conjunction with PSTL and the Tourism Unit or in alliances
with other operators or localities. At the other end of the scale, there are a multitude of smaller
operators who rely almost entirely on the activities of the Tourism Unit and PSTL to generate
business.
There are a multitude of organisations, businesses and individuals that are involved in the management
and delivery of tourism products, activities, services and infrastructure. This is summarised in Figure 12.1.
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Figure 12.1 Organisations involved in the management and delivery of tourism products, activities, services and infrastructure.
TOURIST ATTRACTIONS & EVENTS ACCOMMODATION ACCESS / INFORMATION &
ACTIVITIES INFRASTRUCTURE BOOKING SERVICES
Council Council Council Council Council
Events Port Stephens Caravan Parks
Community events Resort
Government Agencies Sporting events Government Agencies Government Agencies
National Parks RTA TNSW
Marine Parks Authority Government Agencies National Parks National Parks
Waterways Authority Business & Community Groups National Parks ‐ camping Waterway Authority Marine Parks
Forestry Nelson Bay Town Management Crown Lands ‐ leases Crown Lands
Crown Lands Karuah Chamber
Karuah Working Together Level 3 Information Outlets
RAAF
Tilligerry Chamber Operators Transport Operators
Sporting Clubs & Associations Accommodation Airlines
Letting Agents Newcastle Airport Karuah Working Together
Worimi Land Council Coach Companies
Operators Tour Operators
d'Albora Marina Individuals Industry / Operators
Courtesy Coaches
Operators Licensed Clubs Property owners ‐ holiday rentals PSTL
Taxis
Tours Murray's Brewery Operators
Ferry Operator
Attractions Operators Local media
Pubs & Clubs Commercial booking agents
Restaurants & Cafes CONFERENCE & MEETING
Retail businesses
Commercial Promoters VENUES
Community Groups Accommodation Operators
Tilligerry Habitat Assoc Licensed Clubs
Community Arts Centre Worimi / Murrook
Lighthouse Volunteers
Historical Society
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The generic and destination marketing and promotion of Port Stephens is undertaken as a joint venture
arrangement between Council and PSTL. Council’s Tourism Unit also provides support services to PSTL on
a fee for service basis. Because of this close relationship, the lines between the Tourism Unit and PSTL
have become blurred, with the Tourism Unit often perceived to be PSTL.
Marketing and promotion of Port Stephens is undertaken by the Tourism Unit in accordance with
marketing plan and budget approved by the Joint venture Committee. This marketing is undertaken both
independently and in conjunction with operators and a range of organisations including Tourism NSW,
Tourism Australia and the North Coast Regional Tourism Organisation. The roles and responsibilities of
organisations involved in the tourism industry are discussed below.
12.2 Key Players
Port Stephens Council
Port Stephens Council has a significant investment in the tourism industry within the LGA, with its
involvement including:
Employment of professional staff – Economic Development and Tourism Unit
Own and operates the Nelson Bay Visitor Information Centre
Operates 4 large caravan parks and the Samurai Beach Resort
Care, control and management of Crown and Council reserves, parks, gardens, beaches etc
Provision of visitor infrastructure – toilets, picnic facilities, boat ramps, playgrounds etc
Marketing and promoting the LGA – through its joint venture agreement with PSTL
Event management
Part owner – Newcastle Airport
Council also has a range of planning and regulatory functions.
Council is structured along service delivery lines, with different departments within Council responsible for
different activities and assets. Tourism falls within the Economic Development Unit, with the Tourism
Coordinator reporting to the Manager, Economic Development.
Economic
Development
Business Tourism Events Communicate
Port Stephens Port Stephens Port Stephens
Tourism
Coordinator
Visitor Marketing
Information Coordinator
Over the past decade, Council’s focus for tourism has been on the marketing and promotion of the LGA.
There has been very limited tourism input in relation to the planning, development and management of
assets that form part of the tourism product and infrastructure base. From a tourism perspective, a ‘place
management’ approach is needed with a ‘shared vision’ in terms of appearance, presentation, facilities to
be provided etc.
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The Tourism Unit is based at the Nelson Bay Visitor Information Centre. The Unit has 4 full‐time and 3
part‐time and casual employees as well as a pool of volunteers that provide assistance. The key positions
are:
Tourism Coordinator – responsible for the management of the Tourism Unit – including the operation
of the VIC, product development, overseeing the marketing and promotion.
Marketing Officer – responsible for undertaking the marketing and promotion of Port Stephens as
per the Marketing Plan and budget approved by the Joint Venture Committee
Centre Supervisor – responsible for the management of the VIC and organising conference and group
travel arrangements as needed.
Customer Service / Administrative Officers – providing of visitor information, monitoring, data base
management and support services for the Tourism and Marketing Coordinators and the Centre
Supervisor.
The Position Descriptions for each position have not been up‐dated since the economic and tourism units
were restructured. The Tourism Unit provides, on a fee‐for‐service basis, a number of services to PSTL,
with these services including:
Administration and maintenance of the membership data base.
Newsletter and activity reports compiled and distributed to members.
Coordination of member ‘buy‐in’ and input into promotional activities.
Preparation and distribution of Board Papers.
Organising meetings.
Book‐keeping
Management of the PSTL website.
Because of the close working relationship between the Tourism Unit and PSTL, tourism and business
operators and the wider community tend to view the Tourism Unit as part of PSTL. The Tourism Unit staff
also appear to identify strongly with PSTL.
Port Stephens Tourism Limited
Port Stephens Tourism Limited (PSTL) was established in 1997 as the peak tourism body in Port Stephens,
to provide guidance, support and direction for the marketing of Port Stephens, both domestically and
internationally.
PSTL’s primary objectives are to:
Promote Port Stephens on a local, regional, national and international basis as a destination for
visitors.
Provide leadership as the peak tourism body in the Port Stephens area – to protect, advance and
promote the interests of both the tourism industry and the individual members of PSTL.
Provide opportunities to publicise and promote member’s businesses.
Develop and promote a policy on sustainable tourism, to protect and enhance the natural and
cultural assets of Port Stephens.
Communicate and cooperate with other organisations that have interest and/or involvement with
the tourism sector.
Encourage a high standard of customer service amongst member businesses.
Improve understanding of the significance of tourism amongst the local community.
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Structure
PSTL is a membership based organisation in the form of a company limited by guarantee, operating in
accordance with the Companies Act , 1961. PSTL is a membership based organisation. It has a Board of 9
members, 4 of which are appointed and 5 elected. The elected members represent:
Accommodation properties of less than 40 rooms – 1 member
Accommodation properties of 40+ rooms – 1 member
Attraction / activity / waterfront businesses – 1 member
General – 2 members
Appointments are made by Port Stephens Council in conjunction with the Chair of PSTL. Directors are
appointed for 2 years, with half appointed each year to ensure continuity of operations. The Board
positions are voluntary.
PSTL does not employ staff, however has the capacity to do so if desired. The administrative functions of
PSTL and management of the membership base is undertaken by Council's Tourism Unit with the costs
partly off‐set by a contribution from PSTL. The Tourism Coordinator acts as the executive officer for PSTL
with PSTL being highly dependent on the Tourism Unit to action its initiatives.
The marketing and promotion of Port Stephens is undertaken as a joint venture arrangement with Port
Stephens Council. The Joint Venture Committee has 8 members, 4 of which are PSTL directors. The
Councillors on the Joint Venture Committee can observe at PSTL meetings but cannot participate or vote.
The marketing and promotion is undertaken by the Tourism Unit in accordance with the marketing plan
approved by the Joint Venture Committee.
Focus
PSTL primarily focuses on the marketing and promotion of the Port Stephens. It has in place a draft
Strategic Plan (2007 to 2012) which provides the direction and framework for organisation. The strategic
objectives of the Plan are to:
Grow a progressive and vibrant organisation through innovative management, effective
communication, dynamic thinking and strong leadership.
To establish, maintain and develop strategic partnerships and alliances with industry, the community
and members for the long term benefit of tourism and Port Stephens.
Develop a structure that provides the opportunity for growth and sustainability of PSTL as a leading
destination marketing organisation.
Provide access and facilitate participation in community, industry and educational training programs
to increase sustainability, develop better business practices and enhance the tourism experience.
Develop an innovative and effective framework for the generic marketing of Port Stephens as a
tourism destination for the benefit of all members.
Develop systems for the effective collation and distribution of research data and statistics to develop
and improve the marketing decisions of the organisation and its members.
PSTL is progressively implementing the actions required to achieve these objectives. The structure of the
Board was amended in 2009 to put in place the skills needed to take the organisation forward. A
performance monitoring program to track industry performance and effectiveness of marketing and
promotional activities is also being developed. Without dedicated resources, the implementation of the
Plan has however been slow, with PSTL not being in a position to provide the level of support to members
that many members are seeking.
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Working Groups
PSTL has established a number of small working groups to advise on marketing and promotion –
International marketing, conferences and meetings and back packer markets. The international group is
the most active. This structure can be highly effective and can potentially be applied to grow other market
segments and activities.
Membership
PSTL is membership based. In 2009/10 there are 224 financial members, with membership down 12.9%
on the number of members in 2008/9. From 2006/7 to 2008/9 membership has sat around 250. Over the
past 4 years there has been some movement in the membership, with new members joining and some
members not renewing. It appears that there were around 40 members that did not renew in 2009/10.
(Note: data bases provided were not directly comparable). Most of the movement in membership is in the
smaller accommodation properties (B&Bs and individual operators) and in retail and commercial
businesses.
The membership breakdown is approximately:
Accommodation properties & letting agents 35.4%
Attractions 8.7%
Land Tour operators 4.7%
Marine operators 10.6%
Retail / commercial / service businesses 22.0%
Clubs and Taverns 2.4%
Restaurants / Coffee Shops 8.7%
Not for Profit Organisations 6.7%
Other 0.8%
Over 90% of members are based on the Tomaree Peninsula. All three accommodation properties from
Lemon Tree Passage are members, however none of the businesses or licensed clubs in the area have
joined. The only members from Raymond Terrace are one motel and the Botanic Garden, while Karuah
has 3 members, a caravan, motel and a community group.
Organisations and businesses on the Tilligerry Peninsula and the central and western areas of the LGA
perceive PSTL as being a ‘Tomaree focused’ organisation and see limited or no value in joining the
organisation. As such there is very low membership outside of the Tomaree Peninsula. Although PSTL has
endeavoured to build membership from throughout the LGA, it has been largely unsuccessful as it has not
been able to demonstrate that it can effectively meet the needs and expectations of businesses in these
areas. Distance, lack of resources and differences in the scale and level of maturity of the tourism sector
and individual operators, renders it very difficult to service these localities and businesses.
Not all major tourism businesses in Port Stephens are members of PSTL. The notable exceptions are some
of the holiday letting agents and the marinas. Holiday houses and apartments account for more than half
the accommodation in the LGA, while the marinas are an important part of the marine infrastructure and
attraction base of the area.
There is a degree of dissatisfaction amongst members with the performance of PSTL. The membership
fees are relatively expensive and as such Members are looking for value for money, a high level of service
from the Tourism Unit (under the mis‐perception that the staff report to PSTL) and for PSTL / Tourism Unit
to ‘deliver’ visitors to their business. (Issues raised are discussed in Section 12.4).
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Membership Fees & Benefits
The 2009/10 membership fees are summarised in Table 12.1.
Table 12.1 PSTL Membership Fees 2009/10
Category Base Fee# Additional Fee#
Accommodation
B&B / Guest Houses ‐ 1 bedroom $ 320 $17.30 / additional bed room
Backpackers 1‐40 beds $ 405 $ 3.65 / additional bed
Motels / Resorts 1‐ 15 rooms $ 656 $17.30 / additional room
Serviced Apartments 1 ‐15 apts $ 656 $17.30 / additional apt
Managed Units 1‐50 units $ 656 $17.30 / additional apt
Letting Agents 1‐ 50 units $ 656 $ 8.50 / additional unit
Unit Owners 1 ‐ 5 units $ 405
Mobile Home Parks $ 656
Holiday Parks 1‐100 sites $ 656 $3.65 / additional site
$17.30 per cabin
Waterfront Operators
Cruise / Fishing / Charter
1 – 20 pax $ 426
21 – 40 pax $ 586
41 – 60 pax $ 800
61 – 100 pax $1002 $5.00 / additional passenger
Marinas
1 – 100 berths $1002
100 + berths $1663
Other water based activities $ 426
Attractions
Small $ 405
Large $ 654
Land Tour Operators
Up to 25 seats $ 426
26 – 50 seat $ 586 $5.00 / additional seat
Clubs & Taverns
Level 1 (up to 50 poker machines) $ 843
Level 2 (50 – 99 machines) $1650 $16.60 / additional machine
Restaurants & Cafes
1 – 24 chairs $ 405
25 – 29 chairs $ 528 $3.65 / additional chair
General Business
Sole Trader $ 213
1 – 5 FTE employees $ 328
5+ employees $ 544
Shopping Centres $1002
Airports $1002
Other
Associate Members $ 107 No voting rights
Non‐profit organisations $ 176
Out of LGA Surcharge 20% On top of the membership fee
# Fees include GST
For the larger properties in particular, the membership fees are high (e.g. a 150 room resort the annual
membership fee is $3,251).
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The benefits attached to the membership fee are:
Access to listing in the Port Stephens Visitor Guide
Basic listing on the Port Stephens Website
Ability to display one DL size brochure in the Nelson Bay Visitor Centre and any satellite centres
Access to the booking system
Access to discounted advertising rates in Port Stephens sponsored promotions
Ability to participate in marketing and promotional activities.
Newsletter
Use of the photo library
Participation in PSTL events, hosting meetings and accessing marketing information
Voting rights
Ability to nominate for the Board
More detailed listing on the website and the brochure, and participation in promotional activities incurs
additional fees and charges.
Since the current structure was set‐up in 1997, there has been a practice in place that the Visitor Centre
would only display brochures and promote businesses that are members of PSTL. This practice does not
form part of the Joint Venture Agreement, nor is there a written agreement in place that allows PSTL to
include this as a membership benefit.
Council has recently changed this practice, with the VIC to represent all tourism operators and products in
the LGA. For some operators this was one of the most ‘valuable’ membership benefits, with Council's
decision likely to put pressure on PSTL to improve its other membership benefits and services. For other
operators, including some that have withdrawn from PSTL, this change will be welcomed.
Marketing & Promotion Joint Venture
The marketing and promotion of Port Stephens is undertaken as a joint venture arrangement with Port
Stephens Council. The Joint Venture Arrangement was entered into in 1997, with the purpose being to:
Formulate a marketing plan
Determine marketing and promotional strategies to implement the Plan
To allocate resources to achieve the objectives of the Plan
To monitor results
The Joint Venture Agreement is managed by a committee, comprising the General Manager of Council,
three appointed Councillors, one from each ward, and four Directors of PSTL, with these members
nominated by PSTL.
The Tourism Unit Marketing Coordinator prepares an annual Marketing Plan and budget, which is
submitted to the Committee for input and endorsement. The Plan is then implemented by the Tourism
Unit. While the implementation of the Plan is the responsibility of the Marketing Coordinator, in reality,
the work‐load is such that both the Tourism Coordinator and the Marketing Coordinator are both involved
in marketing and promotional activities.
The marketing and promotion is funded by Council, PSTL and the tourism operators. The $1.175 million is
allocated in the 2009/10 budget with $259,570 provided by PSTL, $233,000 by Council and $682,000 by
operators.
The Joint Venture Committee is more of a 'rubber stamp' for the Marketing Plan rather than driving the
marketing and promotion of the area.
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Ownership of Assets
Tourism in Port Stephens is under‐pinned by four key assets
The Visitor Centre in Nelson Bay, owned and operated by Council
The website, owned by Council
The booking engine, owned by Council
The visitor guide and associated collateral materials owned by PSTL
There are no assets other than cash and debtors shown in the balance sheet of PSTL. Costs of maintaining
the web site are shared between Council and PSTL.
Financial Structure
Tourism destination management and marketing of in Port Stephens is funded from four sources:
Port Stephens Council
PSTL
Members of PSTL
Demand building funds from Tourism NSW
Port Stephens Council employs all personnel involved in destination management and marketing, including
the Tourism Coordinator, Marketing Coordinator and the VIC staff. It meets all costs associated with the
running of the VIC and provides $200,000 for cooperative advertising and promotion. Council's current
budget is:
Table 12.2 Port Stephens Council Tourism Budget 2009‐2010
Income (from VIC activities) + PSTL contribution $358,300
Less
Salaries $411,803
VIC Expenses $164,635
Cooperative marketing and Promotion (paid to PSTL) $200,000
Other advertising $ 20,000
Total Expenditure $794,437
Net Cost to Council $438,137
Income includes a contribution of $18,500 by PSTL to help offset costs incurred on its behalf. Expenses
include $75,324 of internal charges, including rent of $53,570.
On a cash basis, after excluding the salaries (estimated) of the Tourism and Marketing Coordinators and
internal charges, the VIC probably achieves a positive return. It is recommended that the financial
performance of the Centre, on a cash basis, be measured to assess its trading position. There are no
destination management expenses (eg signage) met by the Tourism Unit, with these costs incurred within
other areas of Council
PSTL operates on a membership system. Membership fees generated $153,873 in the eleven months
August 2008 to June 2009. Other income included the $200,000 cooperative marketing contribution from
Council and $108,000 Demand Building funds from the Mid North Coast RTO, totalling $461,873 before
member contributions to promotion and advertising.
PSTL operating expenses before advertising and promotion were, in the same period as above, $99,138
including the contribution to the Tourism Unit for office services.
Budgeted expenditure by PSTL in 2009‐10 is $259,570 before the Council contribution is taken into
account, which is the sum of membership and North Coast Demand Building funds.
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Member contributions to marketing, via PSTL, are budgeted at $304,500.
Table 12.3 Financial Performance of PSTL
2005 2006 2007 2008 08/08‐06/09
Revenue $521,050 $594,587 $653,170 $604,414 $743,534
Profit (Loss) ($131) ($14,607) ($53,557) $ 61,375 $ 4,142
Note 2005‐2008 audited figures, 08/08‐06/09 ex MYOB internal summary
In the past, losses have been funded from substantial accumulated profits from prior years.
Observations
Assuming the continuation of a Council contribution to tourism at or about the same level, the financial
position of tourism marketing and promotion in Port Stephens is relatively healthy. The basis of the
operation is, however not. PSTL is effectively managed by Council staff members who work through the
Board, with the Board functioning more as an advisory marketing committee. The lines of responsibility
are not clear.
There are concerns regarding the level of membership fees as well as the practice of excluding non‐
members of PSTL from the VIC which is a Council‐owned and operated facility.
This raises the question as to whether the current operating model is the best one, and whether Council is
best served under this regime. That there are strong grounds for continuing a membership‐based industry
body which is directly involved in marketing and which enables the industry to work together in promoting
the area is not in question. The issue is whether the roles and responsibilities of the two organisations,
Council and PSTL, are clearly defined and whether both parties are performing their core functions
efficiently and effectively.
12.3 Other Players
Other players in the tourism industry are discussed briefly below.
12.3.1 Marketing
Tourism Australia
Tourism Australia is Australia’s peak tourism marketing authority. It is responsible for marketing and
promoting Australia internationally and encouraging Australians to holiday in their own country. Tourism
Australia organises ATE (Australian Tourism Exchange), which is the major event for the international
travel trade. It also provides assistance with gaining access to the international travel trade and to the
international media for public relations style marketing.
Tourism New South Wales (TNSW)
TNSW is State Government’s tourism industry development and marketing authority for the State. Its
main role is to encourage interstate and international visitors to holiday in NSW and for NSW residents to
travel within their own State. TNSW focused on developing destination awareness and sector‐based
market development and promotion.
TNSW is responsible for implementing the State Tourism Plan. As part of this, it is committed to building
regional tourism. In 2009 TNSW introduced the Regional Partnerships Program which provides funding for
market development and marketing and promotion to the Regional Tourism Organisations (see Section
12.3).
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TNSW also maintains the State Tourism Data Warehouse (STDW) and the ‘visitnsw’ website. The STDW is
a data base for NSW tourism localities and products. This data base underpins the ‘visitnsw’ website and
feeds into Tourism Australia’s data base.
North Coast Regional Tourism Organisation
The North Coast RTO is the peak tourism body for the North Coast Region. The Region extends from Port
Stephens to Coffs Harbour and incorporates 8 LGAs. The North Coast RTO is an umbrella organisation that
is responsible for the encouraging and facilitating the development of tourism product and infrastructure
throughout the Region, and co‐ordinating regional marketing and promotion. Under the new Regional
Partnership Program, the North Coast is classified as a Tier 1 RTO and receives Demand Building funding.
The RTO is responsible for the allocation of demand building funding throughout the region, with the
funding having to be met dollar for dollar by the industry.
Hunter Regional Tourism Authority
The Hunter RTO has the same function as the North Coast and is responsible for tourism development and
marketing of the Hunter Region. A number of operators in Port Stephens LGA are members of Hunter
Tourism and participate in marketing activities undertaken by the organisation. As a result of the Regional
Partnership Program, Hunter Tourism is currently under‐going re‐structure and it may not be possible for
Port Stephens operators to remain members of the Hunter. This is discussed further in Section 12.3.
LGA Tourism Units / Associations
A number of Port Stephens operators are members of the tourism associations in the surrounding area,
primarily Newcastle and Great Lakes. This membership provides access to additional marketing and
promotional initiatives, sometimes in markets not targeted by Port Stephens, as well as greater exposure
through the sales and distribution networks of these organisations. Gold level membership of Newcastle
Tourism ($1,250pa) entitles the member to be represented by the Newcastle Convention Bureau.
Thunderbolt’s Way
Thunderbolt’s Way is a marketing alliance between the Councils along Thunderbolt’s Way (Port Stephens
to Inverell), with the group primarily involved in maintaining the Thunderbolt’s Way website and
generating publicity for the route.
12.3.2 Land & Water Management Agencies & Organisations
The major tourism assets in Port Stephens – the Port itself, the Tomaree National Park, Stockton Beach
and sand‐dunes and the beaches and foreshore areas are managed by a number of State Government
Agencies and organisations. While tourism is highly dependent on these assets, tourism is not a core
function or priority of these Agencies. As such is important that Council has a good working relationship
with each of these Agencies to ensure that the assets are protected and well managed, and that access for
visitors and the local community is maintained. Council and PSTL are also in a position to assist these
agencies by lobbying relevant Ministers to provide the funds and resources for the improvement of the
assets and the provision and/or up grading of visitors facilities.
The main agencies and organisations, their roles and responsibilities are summarised in Table 12.4
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Table 12.4 Land Management Agencies responsible for Assets used by Visitors
Agency / Organisation Role / Responsibility Involvement in Tourism
Management of Tomaree National Park,
Department of Manage National Parks, State Stockton Dunes, Worimi Conservation Lands,
Environment and Climate Conservation areas, nature reserves Tilligerry State Conservation area, other
Change – National Parks and other dedicated lands in national parks and reserves in the Karuah area,
accordance with the Plan of and the off‐shore Islands
Management and the provisions of the Operation of the discovery tour programs,
enabling Act. including tours for groups and school
excursions.
Provision of visitor facilities and infrastructure
– walking tracks, signage and interpretation etc
Licensing of tour operators to operate in
National Parks.
Visitor information – operation of the Nelson
Bay NPWS visitor centre, publication of maps,
brochures etc for the Parks.
Controls on dolphin and whale watching.
Implementation of the foreshore improvement
Crown Lands Administration of Crown Land and and development plan – Corlette to Tomaree
leases on Crown Land. The current Headland.
priority is to generate revenue from Nelson Bay foreshore and marina re‐
the Crown’s assets. Most of the development.
foreshore reserves in the LGA are Controls a number of strategic sites including
Crown Land, with trusteeship vested in land at Shoal Bay and Anna Bay.
Council 5 caravan parks and 1 resort on Crown Land –
lease / trustee arrangements in place.
Determine, through the zoning plan, the
Marine Parks Authority Management of the Port Stephens activities that can be undertaken in the Marine
Marine Park Park.
Licensing of marine tour operators to operate
in the Park.
Production of information and maps on the
Marine Park and marine environment.
Licensing of charter vessels.
Waterways Authority Regulatory and licensing authority for Funding for / provision of boat ramps and
marine craft and the provision of jetties.
boating infrastructure Determines activities that can be undertaken
on waterways / sets speed limits / wash zones
etc
Determines activities that are permissible on
Hunter Water Management of Grahamstown Dam the dam and the foreshore areas & controls
access
Worimi Conservation Lands
Worimi Land Council Traditional owners of Worimi Murrook Cultural Centre
Conservation Lands 4WD Quad bike tours (proposed).
12.3.3 Business Groups & Organisations
There are a number of business groups and organisations in Port Stephens LGA that are involved in the
tourism sector primarily through the events that they organise and the promotions that they undertake.
These groups include:
Nelson Bay and District Chamber of Commerce
Nelson Bay Town Centre Management
Raymond Terrace Business Association
Tilligerry Chamber of Commerce
Karuah Working Together
Karuah Chamber of Commerce
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One of the primary functions of business groups and organisations is to consolidate and strengthen the
local business community and encourage growth. As such they have a vested interest in the development
of a strong and sustainable tourism industry. These groups have the potential to play a more active role in
tourism, including:
Presentation of the local area and local businesses with the group encouraging business owners to
improve their product and presentation, and lobby / work with Council to undertake main street /
beautification projects.
Education and training of business operators, particularly in customer service.
Access to leads for potential conferences, meetings and regional functions business.
Sponsor / produce local brochures / maps to promote the local area and/or local websites.
Build a program of local events and activities.
Communication link with the VIC – keeping them informed about what is happening in the area.
These groups also have access to grant programs to undertake projects that would strengthen the local
tourism product and infrastructure. The Tourism Unit needs to work more closely with these groups, with
both working towards a shared vision for tourism in their area.
12.4 Membership of the RTO
Port Stephens is a member of the North Coast Regional Tourism Organisation. The LGA was originally a
member of the Hunter RTO however transferred to the North Coast, due to a variety of reasons including
greater product and market synergies with the North Coast LGAs, lower membership costs and the
marketing directions of the RTO. There is still some debate on which RTO Port Stephens should belong to.
With the changes to the TNSW funding program the debate has been re‐ignited.
Recent Changes to the Funding Framework
In 2007 a major review of tourism in NSW was undertaken, with this review culminating in the O’Neill
Report. The report recommended re‐structuring the way tourism was developed and marketed in NSW. In
2008 TNSW adopted the NSW Tourism Strategy, with the Strategy designed to implement the
recommendations of the O’Neill report. The Tourism Strategy identified the opportunity to build tourism
to regional NSW by improving the capacity of Regional Tourism Organisations (RTOs) and increased
marketing of regional areas.
The Forum of Regional Tourism Organisations (FORTO) was established as the peak body for Regional
Tourism. The State Government replaced the Regional Tourism Investment Program with the Regional
Partnerships Program. Under this new program $15.4 million was committed for the restructuring of
regional tourism over a 3 year period, 2009 to 2011. The objective of the program is for all Regional
Tourism Organisations (RTOs) to become self‐funding by the end of 2011. In addition to undertaking
regional marketing, the RTO must meet specified requirements for industry development, product
development and developing an industry‐based membership.
The new Regional Partnerships Program provides two levels of funding:
Capacity building funding to assist RTOs become self funding.
Demand building funding for marketing and promotion, with the funding provided on a dollar for
dollar basis with the Industry.
RTOs are classified into Tier 1 or Tier 2, with Tier 1 RTOs being those that are self sustainable. These RTOs
receive demand building funding. In 2009 the Blue Mountains, Central Coast and North Coast had Tier 1
status, with the South Coast and Hunter advising that they are likely to achieve Tier 1 status in 2010.
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These 5 RTOs will each be able to access up to $ 510,000 in demand building funding in 2010. Tier 2 RTOs
are those that are not self‐funding, with these organisations receiving capacity building funding plus some
demand building funding. The funding allocated in 2010 is $120,000 for capacity building and $200,000 for
demand building. Capacity building funding ceases at the end of 2011, and only demand building funding
will be available. RTOs will need to have reached Tier 1 status to access this funding. FORTO is proposing
that RTOs that cannot achieve Tier 1 status amalgamate with adjoining regions.
The North Coast RTO has Tier 1 status, while the Hunter RTO is Tier 2. The Hunter RTO is currently under‐
going a major re‐structure to try to achieve Tier 1 status and is looking for financial support from Council's
to under‐write the viability of the operation.
From these RTOs, TNSW has established 7 campaign zones (plus Sydney and Lord Howe Island). The North
Coast RTO and Northern Rivers RTO are amalgamated to form the North Coast campaign zone, with the
Hunter included in the Short Breaks from Sydney zone.
In 2009 Port Stephens LGA received around $200,000 from demand building funding. In 2010, it is likely
that Port Stephens LGA will receive around $70,000, with $160,000 being allocated to the Pacific Coast
Touring Route.
On the basis that some of the RTOs will not achieve Tier 1 status, and that most RTOs will not have the
resource capabilities of meeting their industry and product development responsibilities, FORTO is
recommending amalgamation. The FORTO Discussion Paper (September 2009) recommends the
formation of 5 Regional Destination Organisations (RDOs) basically mirroring the TNSW campaign zones.
North Coast and Northern Rivers would be amalgamated into North Coast, while Hunter would be
amalgamated with Central Coast and Blue Mountains to form a Sydney Surrounds / Short Breaks RDO. At
the October FORTO meeting, the RTOs voted not to adopt the FORTO proposal, seeking instead to
continue to explore options to determine if they can achieve Tier 1 status. The RDO concept it to be re‐
visited once the RTOs have determined whether it will be possible to achieve Tier 1 status.
Implications for Port Stephens
Port Stephens marks the transition between the Hunter and North Coast Regions. The products and
experiences offered by Port Stephens are essentially the same as those offered by the other LGAs in the
North Coast Region. In contrast the Port Stephens product and experiences are markedly different to that
offered by other areas of the Hunter. The Hunter brings together a collection of diverse experiences ‐
Newcastle City, Hunter Wine Country, Barrington Ranges and the rural hinterland. Port Stephens needs to
assess whether it is more advantageous to have similar or contrasting product in determining which region
to align itself with.
Port Stephens shares markets with both regions. The characteristics of the Port Stephens holiday market
are very closely aligned with that of the other LGAs in the North Coast Region. For other markets, for
example the domestic short breaks market, conferences and meetings, day trips, Port Stephens markets
are far more closely aligned with the Hunter, with Port Stephens competing with the Hunter for business.
For the international day visitor market, there are potential synergies between Port Stephens and the Blue
Mountains. There are also benefits to be gained in working with the Lower Hunter sub‐region (particularly
Newcastle) to capitalise on the opportunities offered by Newcastle Airport.
Under the current RTO structure Port Stephens is probably best served by remaining in the North Coast
Region and entering into marketing alliances with other areas for specific market development activities
(eg alliance with the Newcastle Convention Bureau to build the conference and meetings market).
Given the cross‐over between markets, another option that could be considered is for Port Stephens
Council to join the Hunter RTO, with PSTL remaining with the Mid North Coast. There are no provisions in
the Regional Partnership Program that would prevent this.
If a decision is made to amalgamate RTOs into RDOs (as proposed by FORTO), then Port Stephens will need
to reconsider its position. As most of its market is coming out of Sydney, Port Stephens could potentially
be better served by being part of the Sydney Surrounds RDO.
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12.5 Issues
The main issues that emerged during this study were:
A high level of confusion about the relationship between PSTL, the Visitor Centre and Council. The
Tourism Unit staff have worked closely with PSTL for the past 12 years and have enforced the
practice of only supporting PSTL members. Many of the operators and the broader community
perceive PSTL and the Tourism Unit as being the same organisation. As such, they expect, as part of
their membership, a very high level of service from the Tourism Unit.
The ‘exclusive’ approach has been a major source of discontent amongst members, with it perceived
as being too restrictive and too inflexible, and often taken to extremes. It was also considered to be
used as a reason not to perform and/or not to communicate. The practice also impacts on the
quality of the service delivered to visitors and the external travel trade, in particular, only receiving
details on member products, rather than comprehensive information on what is available in the area.
The cost of being a member of PSTL is high. In addition to membership fees members have to pay
extra to be involved in marketing and promotional activities, with the additional costs also
considered high. Operators who are members of adjoining tourism associations (Newcastle and
Great Lakes) drew the comparison of lower membership fees and lower costs to participate in the
same activities (for example, trade show representation) offered by PSTL.
Paying a commission on bookings that come through the Centre is an issue with some operators, as
they consider that they have already paid for this through their membership fees. (Note: VICs
charging a booking commission is a standard industry practice).
PSTL (the Tourism Unit) is not generating business for the operators. Operators have seen a
significant growth in the number of enquiries and bookings received via their own websites and via
accommodation booking websites (e.g. wotif). For most of the operators interviewed during this
study, bookings coming through the VIC and the VIC booking system account for a very small and
decreasing proportion of total bookings. This is perceived as PSTL not performing.
Information from other areas (e.g. Shoalhaven and Blue Mountains), indicates a similar shift in source
of bookings. Research is these areas has shown that the tourism website is very important as the
first step in researching the destination / product, with the consumer then going to other websites
(e.g. the individual property site) for further information. Consumers are increasingly booking direct
through a operator’s own booking engine, which may offer more competitive rates. Consumers will
also compare prices quoted on different booking systems to get the ‘best deal’. The long‐term value
of the VIC booking system is in question.
Concern that PSTL is not providing the leadership needed in representing the interests of the tourism
industry. Members would like to see PSTL play a far more active role in community consultation
programs, such as the 2030 Workshops and provide input, from a tourism perspective into the plans
and polices being developed by Council and the Government Agencies. Allied with this is the issue of
who should be the ‘face’ of PSTL – at present it is perceived to be the Tourism Unit staff.
The Tourism Unit reporting to two different organisations. As PSTL does not have