Sapphire Coast Tourism has struggled to survive over the past 12 months and if the Bega Valley Shire Council had not thrown it a lifeline at a Special Meeting of the council on Tuesday its demise would have been inevitable.
There are a number of issues that have brought the shirewide organisation to its current parlous state and it is the combination of these that have pushed it to the point of collapse.
We need to examine the council’s vision for the tourism industry and the attitude of the tourism industry to SCT. The two are inextricably linked and have had a major influence on SCT’s capacity to function.
In 2007 the council flagged its intent to make the tourism industry self-reliant and to withdraw from its management role. This significant alteration saw council over the ensuing months shed its responsibilities and define its role with regards to the industry as an infrastructure provider.
Council’s decision had merit; its foray into the management of the industry proved expensive due to staffing costs, which consumed most of the council’s tourism budget.
In 2008 council had advanced its tourism reform agenda to allow for the establishment of an independent body to manage Sapphire Coast Tourism. The new body, Sapphire Coast Tourism Limited would be responsible for the Merimbula Visitor Information Centre and the SCT booking service as a source of funds.
In January 2009 council discussed the option of providing $250,000 from the application of a special rate variation on business rated properties to fund SCT for 2009-2010.
This exposed SCT to funding uncertainty and in hindsight the council should have funded the body directly as the application for the special rate variation was rejected by the Minister for Local Government, Barbara Perry. However the council was largely responsible for this failure, as it had changed the concept from a charge to be applied to commercial ratepayers to include the residential ratepayer as well. The Minister was sympathetic to the plight of the residential ratepayer faced with increased general rates, the levy for sportsground improvements and high sewerage and water charges.
This essentially left SCT bereft of funds forcing it to exist on a cash carry over from 2008-09 of $210,000 and other funds it may secure from membership, grant funds or fundraising activities.
SCT’s uncertain future has compounded its financial problems, as it is reluctant to seek annual membership fees while its funding arrangements are in doubt.
Subsequently it found itself in a financial predicament, which the council has temporarily relieved with the $120,000 lifeline it threw to it last week.
The other issue that has underpinned SCT’s problems is a failure of the tourism industry to throw its weight behind the body. Council’s general manager Peter Tegart discreetly referred to this in his report to the council. He states, “It would appear the oversight (by SCT) of visitor information centres, memberships and the booking service has remained contentious and indeed may have hampered the ability of SCT to progress their strategic objectives contained in their business plan.”
This reflects poorly on some members of the tourism industry who continue to its detriment to promote their own agendas, driven we suspect, by a desire to see SCT falter.
Under the circumstances, one could not blame the council if it were to wash its hands completely of the tourism industry given its factionalism.
If the industry cannot embrace a tourism body that is striving to create and foster new markets should the general ratepayer continue to support it, is a question that needs to be answered.
The council is showing some leadership on the matter.
It is reviewing the terms and licensing operations of the visitor information centres with a view to removing them from SCT’s management and has said it might be appropriate to discontinue the booking service.
But herein lies another problem - one of the key reasons for membership of SCT is that it entitles the member to display their brochures in the VICs without this key attraction holding on to members might prove to be a challenge.
The booking service, once a source of revenue, has virtually become obsolete, as other websites have sprung up and taken business from it.
Mr Tegart has identified that further council assistance might be required to rationalise the tourism industry and define the roles of SCT, local associations and local operators on the understanding the industry becomes self reliant.
This is a positive response to an exceedingly vexatious issue.
Mr Tegart sees a role for SCT in the local tourism industry albeit different from its role today.
We believe SCT is critical to the future of the tourism industry in the shire and it must survive.
If the industry is to grow it is imperative it reaches into new markets.We cannot afford to stand still on the expectation that out primary target market, Victoria, will sustain the area into the future.
If the conservative farming industry can embrace change, which it has been forced to do to survive, our local tourism operators must broaden their concept of the industry.
SCT is the vehicle to fulfil this role and it should be provided with the financial wherewithal to allow it to do this.
SCT offers a long-term vision for the industry.
SCT plans to position the Sapphire Coast in the market so it is able to take full advantage of future shifts in the tourism industry. Part of its brief is also to maintain relationships with Australia’s Coastal Wilderness, Tourism NSW, South Coast Regional Tourism Organisation and Tourism Australia.
It might be appropriate for the council to resubmit an application for a rate variation for 2010-2011 to fund SCT. But if it is to gain the Minister’s approval it should only be applied to the commercial ratepayer. The Department of Local Government’s Comparative Information on NSW councils shows that the commercial rate in this shire is much lower than that of the other councils that it is benchmarked against.