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 Future of Sapphire Coast Tourism continues to hang in balance 

Future of Sapphire Coast Tourism continues to hang in balance

04 Nov, 2009 08:49 AM
Story Liz McCormick

Les Murphy

The future of Sapphire Coast Tourism (SCT) is poised on a cliff edge as it teeters on the brink of financial ruin.

However the Bega Valley Shire Council has thrown it a short-term safety net after it decided at a Special Meeting on Tuesday, October 27 to provide interim funding of $120,000 to June 2010.

A failure to rescue the tourism body would have seen the death of SCT as it had no funds to sustain itself.

In light of SCT’s beleaguered state, it is likely there will be a renewed push to introduce a tourism levy in the 2010-2011 rating year.

The council failed in its bid to secure it for the current rating year after the Minister for Local Government, Barbara Perry, rejected the economic and tourism special rate variation because of a lack of evidence of community support for it.

In response to SCT’s plight council general manager Peter Tegart presented a report to the council in which he recommended a reduced role for the body set up by council only last year to mastermind the shire’s tourism industry, but advocated continued council funding of its operations.

Mr Tegart said that when council restricted its role in tourism it had established the SCT board with the intention that it assumes management or oversight of tourism strategy, marketing and information centres.

But council’s decision to wind back its funding of SCT put it in the financially precarious position of having to rely on existing funding provided by the council in previous years. It was a measure the council invoked to make the industry more self reliant in terms of funding and direction.

“It would appear the oversight of Visitor Information Centres membership and the booking service has remained contentious and indeed may have hampered the ability of SCT to progress their strategic objectives contained in the business plan,” Mr Tegart said.

“Councillors may wish to consider whether council’s initial intent in establishing SCT has been successful or requires modification,” he said.

“That may include consideration of the model contained in this report, or allowing SCT to falter, or council assuming a greater role in tourism, marketing and information services.”

Mr Tegart’s recommendation to councillors was that they endorse a revised tourism model with SCT having no further direct involvement with the shire’s visitor information centres.

He said it had now been suggested that local chambers of commerce or tourism associations manage their own VICs with possible seed funding from council.

It might also be appropriate to discontinue the Sapphire Coast booking service or sell it to private operators, as it did not appear to provide an appropriate return to SCT.

Councillors were open to that recommendation and have authorised Mr Tegart to enter negotiations with the SCT board regarding the terms and licensing operations at Merimbula, Bermagui and Eden visitor information centres from July 2010 including the terms for their operation.

Councillors also agreed that the council should move to divest both itself and SCT of any interests in the booking system.

There was also an option to bring SCT staffing within council by resourcing an economic and tourism development officer.

Mr Tegart said that further council assistance might facilitate rationalising the local tourism industry and articulating the roles of SCT, local associations, local operators and council on the understanding that the industry becomes self-reliant.

He said that following rejection of the council’s proposed tourism and economic development levy, SCT faced a funding shortfall of $230,000 for the current financial year, though its membership had grown from 80 in January to 215 in October.

He said the SCT board was seeking $164,000 from council for the current financial year and $235,000 per annum thereafter.

Mr Tegart said preliminary information from council’s 2008/09 financial reports and trends indicated that funding of $250,000 might be available across this financial year and next.

He said the SCT board had narrowed its own strategic initiatives to the following budgeted areas:

• Preparation of marketing strategy $30,000

• Contribution to Coastal Wilderness brand roll out $30,000

• Tourism sector promotion partnerships $25,000

• Contribution to Heritage Tourism Strategy $25,000

• Assemble digital information library $ 3,000

• Assemble digital image library $ 2,000

• Web site enhancement $ 7,000

Mr Tegart said that no funding had been identified for proposed tourism signage, including gateway, route, town entry and facility.

Councillors reiterated their commitment to investing in economic and tourism development and to progressive investments and advocacy in tourism-based signage, recreation and cultural facilities, including continuing support through the provision of premises for accredited visitor information centres.

They also reiterated a commitment to leadership in redevelopment of the Eden Seaport and Merimbula Airport.

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