Tourism as a Component of Business - Bega Valley Shire

Council Tourism Expenditure
Bega Valley Shire Council staff have undertaken an assessment of Council’s contribution to tourism since July 2000.

During this period:

• Council has expended general rate revenue of $3.9 million on tourism marketing and promotions and the booking service;
• Expenditure on tourism over the period aggregated to $6.6 million (VICs, booking service and promotions – including capital to purchase the booking service of $180,000);
• Income for the same period was $2.7 million (including of $69,000 loans, transfer of payments for terminations $57,000 and amortisation of the booking service $140k);
• Expenditure on economic development for the same period has been $570,000;
• Tourism infrastructure projects carried out over the period have cost $3.5 million (included Fishpen/Ford Park upgrades, provision of ocean lifeguards, Tathra Wharf upgrade, Quarantine Bay Jetty, Mogareeka Jetty, Beauty Point Jetty, Fishpen Rock wall, Merimbula boardwalk Broadwater carpark/jetty).

A number of tourism projects, with a total conservative estimate $4.7 million, that could/should progress, include but are not limited to:

• Completion Fishpen rock wall,
• Beach Street foreshore upgrade Merimbula, upgrade Bar Beach reserve,
• Tathra ring road,
• Timms estate to beach path,
• Quarantine Bay reserve upgrade,
• Rotary Park to fish platform walk,
• Long Point whale watch trail,
• Walk with the Whales trail Bermagui

Industry Assessment Bega Valley Shire
Consistently the tourism industry raises the issue that Council must provide considerable financial support for the marketing and promotions of tourism due to the value of the industry to the Shire. Council does not provide direct support to any other industry group. Figures are quoted at meetings that $290 million is brought into the local economy by tourism and considerable research has been undertaken to try and ascertain the validity of this figure.

There is no lower level (i.e. Bega Valley specific) data available from the Australian Bureau of Statistics except relating to number of tourism establishments (includes holiday flats, units and houses), numbers of beds, people employed and takings.
The December figures show:

Higher level comparative figures are produced and much of the local “anecdotal” material about the “value” of tourism is possibly derived from this source. There is no recent local research that can definitively quantify these figures that Council management have been able to source.

The issue with using the higher level figures which uses employment numbers and applies a pro rata output and apportioning them for the Bega Valley is that the process masks regional strengths and can equally be used to show the strengths and benefits of other sectors.

Economist Dr Kim Houghton, who has provided detailed economic assessment for the South East Area Consultative Committee and who recently presented to the Markets and Industry Committee prepared tables for Councillors.

As identified through the circulated document also prepared by Dr Houghton for SEACC and outlining the business mix by sector for the Bega Valley Council has provided an advantage to the tourism industry that it is unable to provide to other business/industry groups. Clearly tourism is critically important to the area as are the health and community sectors, education, construction and agriculture, forestry and farming.

In Council’s current challenged financial position with expectations about the provision of core services including crucial infrastructure for the tourism sector there is limited or no opportunity or justification to continue funding tourism promotions, marketing, bookings and Visitor Information Centres to previous levels when consideration is given to the economic contributions of other sectors which on occasions surpass tourism.

Council In-kind Support
Council has provided considerable in-kind support over the $2007-08 financial year including legal advice, provision of facilities in Bermagui, Eden, Merimbula at a peppercorn rental, staff time to support and assist the various management organisations, finance staff support. It is expected that this will continue for the remainder of this current financial year particularly if the recommendations contained in this report are adopted. The further items to be covered include legal advice in relation to the creation of the independent body, advertising costs and staff time in assessing nominations for the independent Board.

This in-kind support will be quantified so that the independent Board can utilise this information in funding application and other processes and so that Council is aware of the real costs associated with its current involvement in tourism.