What THRIVE 2030 means for regional tourism destinations
The federal government has developed “a national strategy for Australia’s visitor economy recovery and return to sustainable growth” called THRIVE 2030 (THe Re-Imagined Visitor Economy).
This article looks at what THRIVE 2030 means for regional tourism over the coming eight years. We have summarised the key regional content below.
Ensuring a focus on regional tourism
We acknowledge those who undertook this work and Australian Regional Tourism for ensuring that regional tourism was strongly considered and not an afterthought.
The strategy recognises the importance of regional visitation by establishing a regional visitor expenditure target that will monitor activity in regional Australia and help determine if strategy actions are successful.
The strategy has set a goal for regional tourism growth (visitor expenditure in regional Australia)
The impact of tourism on regional communities
The strategy identifies that
30% of Australia’s tourism businesses are in the regions
63 cents in every tourism dollar is spent in regional destinations (as of September 2021, up from 44 cents in 2018-19, likely due to COVID’s impact on domestic travel)
in regional Australia tourism businesses are an important part of local economies and communities, contributing 3.4% to GDP in regional economies, compared with 1.6% in the capitals.
“There has been disparity in how regions benefit from and participate in the visitor economy. There is more work to do to spread more equitably the economic and community benefits of the visitor economy. To be successful, identifying and prioritising regions according to their readiness and ability to support visitation is required. A stronger specific focus in Austrade on the regional visitor economy through focused regular engagement with key stakeholders will drive attention and focus for this important sector, along with strong promotion of innovative collaborative approaches within locations and regions.”
Vision for 2030
The strategy’s vision for Australia’s visitor economy is
Challenges for regional tourism
Constraints on tourism in regional areas identified in the strategy include the following.
Limited available workforce and a reliance on skilled migrant workers and temporary visitors (such as Working Holiday Makers), particularly in sectors with casualised seasonal operations.
Volume, quality and age of connective and destination infrastructure to meet demand.
Micro and small businesses’ ability to adapt to disruptive technologies and increased consumer expectations driven by the ongoing technology revolution, particularly the ability of consumers to instantly compare prices, and demand a seamless booking and travel experience online.
Weather, financial and health shocks that impact insurance markets, crisis planning and resilience of operators.
Increased consumer focus on climate change and environmental sustainability which is influencing travel preferences for more sustainable options, with negative implications for long haul travel (but an opportunity for competitive advantage)
Demand for accessibility options to meet consumers’ needs, including those who are linguistically diverse, those with a disability, families, and the aged (another opportunity for competitive advantage)
In some communities, social licence challenges, with some locals questioning the net benefits of having visitors in their region.
The impact of COVID on aviation and connectivity.
The availability and affordability of public liability insurance.
How do you think your business, event or destination might overcome these challenges and turn them into opportunities?
Opportunities for regional tourism
“The visitor economy must address pre-existing challenges, many of which have been exacerbated by the pandemic, and additional ones arising from the pandemic itself.
While there are many challenges, there are also significant opportunities to be seized. These opportunities, accompanied by an extensive range of actions to respond to these challenges, are detailed in the [strategy’s] Action Plan.”
Opportunities relevant to regional destinations identified in the strategy include the following.
In the immediate term, growing the domestic market by encouraging Australians to explore more of their own country and engage in local experiences.
Expanding Indigenous tourism offerings, and respectfully embedding Aboriginal and Torres Strait Islander peoples and cultures into the visitor economy through initial partnerships and ongoing inclusion.
Developing our distinctive regions.
Creating new products and experiences, for example in luxury, high-yield and environmentally conscious travel.
Encouraging greater spend by domestic visitors, meaning a renewed focus on high-yield travellers.
Growing as a world leader in international education, attracting thousands of students, and the flow-on benefits of visiting family and friends, return visits, and students’ vital contribution to the workforce (an interesting addition in the strategy as the federal government’s policy during COVID was to abandon tertiary education providers financially when international students could not attend, meaning there has been a significant contraction in this industry which was financially dependent on those students)
Restoring confidence in domestic business travel and events will also support the visitor economy supply chain, especially given the greater per day spend in this sub-sector
Rebuilding the visitor economy workforce by exploring strategies with people underutilised in the workforce, such as people with a disability, women, parents returning to the workforce, older Australians, young Australians, culturally diverse peoples, and Aboriginal and Torres Strait Islander peoples, complemented by reviewing visa settings to expand the pool of people recruited from overseas, and better use of technology to better support customer needs and improve business operations, and over the longer term, enhancing the reputation of the visitor economy as a career of choice by improving working conditions, training and career opportunities
Providing eco-friendly and sustainable destinations, authentic experiences delivered onsite by local experts, digitally enabling interactions throughout the journey, and accessible infrastructure, quality experiences, and a safe environment.
Investing in new and refreshed assets/infrastructure, especially in regional Australia, including major infrastructure such as aviation, port, and hotel facilities, and smaller scale developments such as new competitive visitor experiences, including regional accommodation, attractions, and supporting infrastructure that improves experiences in regional areas, with all governments playing an important role in investment attraction and facilitation, including by working to reduce or remove impediments to investment.
Integrating digital tools into all aspects of the traveller journey to improve productivity and enhance the consumer experience, including real-time access, artificial intelligence, augmented reality, and data personalisation
Building resilience by embracing methodologies that prepare businesses for future climate challenges, and utilising sustainable practices to engage visitors, help protect against future challenges, and leverage our natural assets to educate visitors about the importance of sustainable practices, and embrace regenerative tourism opportunities.
Engaging with communities by acknowledging their needs, and businesses and communities working together to achieve shared benefits.
Our article does not include commentary on the strategy’s actions that relate to international visitation, because regional dispersal for international visitors is highly concentrated in destinations close to capital cities and coastal centres, and are predominantly day trips, according to Understanding Regional Dispersal of Australian Tourists by Tourism Research Australia.
Which of these opportunities do you see for your destination, business or event? How do you think you will embrace these?
The strategy’s priorities
Highlights for regional destinations from the action plan
For regional destinations, some actions of note in the strategy include the following.
Focus on regional tourism
Regions need attention to unlock the potential of destinations that have the desire, capacity and capability to service visitors
A stronger collaborative approach to tourism investment involving industry and governments at all levels to achieve investment in new tourism assets.
Leverage Regional Development Australia (RDA) to facilitate engagement. RDA is an established national network of local leaders that works with all levels of government to support economic and community development, including local governments that intersect with the visitor economy in many ways, including visitor attraction, service delivery, and facilitation and regulation of infrastructure development
Prioritise new destination development through use of holistic destination development plans, community and stakeholder collaboration, and streamlined regulatory approvals.
Austrade will implement a visitor expenditure target specifically for regional Australia to help drive and monitor visitor economy growth in regional Australia
Sustainable tourism
Regenerative tourism as a way for the visitor economy and local communities to work together to create authentic, respectful tourism experiences.
Implement measures to address emissions reductions, and climate resilience and adaptation including through Australia’s Long-Term Emissions Reduction Plan and the National Climate Resilience and Adaptation Strategy.
Sustainability practices must be embedded into all products and experiences, and businesses need to effectively promote their sustainability credentials to maximise market penetration and conversion.
Industry and governments will work together to develop and implement a tailored sustainability framework for the industry to provide practical assistance and tools to implement sustainability practices expected by consumers and local communities.
Asset development and management must be conducted in a sustainable way which takes into account community expectations, environmental concerns, and the wishes and priorities of traditional custodians
Support businesses
Identify gaps and provide practical immediate solutions to address the current workforce challenges, and support the development of the future needs of the visitor economy workforce
The Rural Financial Counselling Service and Regional Small Business Support Program to help regional businesses to build resilience and capability.
Examine the impacts on the travel distribution system brought about by the pandemic including how businesses and consumers will respond to new and different travelling arrangements and provide suggestions as to how travel and tourism businesses can change and adapt their sales, marketing, and business practices to cater to and embrace the new environment.
Product development
A request to all states and territories to create new, or refresh existing, iconic destinations, which will need an ongoing coordinated approach to investment, planning, development, workforce attraction, and marketing.
A more cooperative approach to creating experience-based reasons for people to travel. For example, cultural and sporting events could be scheduled and marketed in a collaborative way that encourages regional dispersal and repeat visitation.
Grow and develop high-quality products and experiences around unique Australian locations and themes, including approaches which integrate sustainable nature tourism with economic opportunities for Traditional Owners, and capitalising on emerging tourism trends such as geo-tourism.
Develop new and expand existing Aboriginal and Torres Strait Islander owned and operated tourism enterprises.
Attract visitors to regional events and heritage offerings
Establish new mass participation events including in regional areas to encourage visitor dispersal
Connectivity
Ensure that visitor economy businesses, especially those in the regions, have access to internet products, services, and infrastructure
Ensure that regional airport facilities meet the needs of visitors and communities
For regional locations, cooperation across levels of government is critical to ensure appropriate destinations can be opened up through provision of new or enhanced transport links.
The $2.5 billion Local Roads and Community Infrastructure Program will support local councils across Australia to deliver priority local infrastructure projects to support local communities including roads, parks and sports facilities, and bike paths.
Infrastructure
Improve and maintain public infrastructure in national parks and World Heritage Areas, according to master planning and destination management planning developed alongside Traditional Owners
Improve tourism infrastructure in regional areas including through the roll out of the Regional Recovery Partnerships Program, the Building Better Regions Fund, and other regional infrastructure programs
Removal of planning barriers through regulatory reform and reducing red tape.
“To be successful in the long-term, visitors will need a reason and motivation to visit and spend. This will be secured through ongoing product development, experience and asset enhancement, improving the workforce across the country, and better connectivity to drive dispersal.”
Over to you
What are your thoughts on THRIVE 2030 and how it relates to your corner of Australia?
Please share in the comments below.
Learn more
Learn how to build a successful and sustainable regional tourism destination
Read a case study on developing a rural destination (or read this one)
Learn 5 ways your regional destination can leverage the current surge in domestic tourism