South Australia. A brilliant blend. The official site of the South Australian Tourism Commission
South Australia. A brilliant blend.South Australia. A brilliant blend.

What is sustainable tourism considered to be, and what is the SATC doing about it?

  • South Australian Tourism Commission policy is to encourage both economically and environmentally sustainable development. This means development that will meet the present and long-term needs of people (both visitors and hosts) whilst ensuring the physical and cultural environment is capable of sustaining this use. In other words, tourism must be assessed on the basis of its net benefit to the people of South Australia.

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Can tourism contribute tangible economic and employment benefits to South Australia in the same way as, say, manufacturing or agriculture?

  • Independent economic analysis undertaken for the South Australian Tourism Commission (SATC) demonstrates that tourism is currently driving 10% of South Australia's economic growth through the 'export' dollars it generates - with long-term growth prospects being strong. (Source: Comparative Economic Contribution of Tourism to South Australia, Economic Research Consultants, Oct. 2000)

  • South Australian tourism exports represent two-thirds the size of the State's agricultural exports and about the same as mining - although tourism creates almost twice the jobs that mining does. (Source: Economic Research Consultants, April 2000)

  • Jobs in tourism related industries in South Australia have grown at 4 times the average for all jobs since 1989/90. (Source: Productive Approach to SATC Marketing, BDA Marketing Planning, September 2000). This has occurred at a time when manufacturing (-7%), agriculture (-8%) and mining (-25%) have experienced declining levels of employment. (Source: Australian Bureau of Statistics PCAustats)

  • 'The rise of service industries like tourism … acts as an 'economic shock absorber' because services are more recession-proof than goods'. (Source: Phil Ruthven, IBIS Business Information)

  • Importantly, in South Australia, growth in tourism has been achieved without creating significant pollution, resource depletion, erosion and or other negative externalities associated with some other forms of economic activity.

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South Australia is a great place to live, but who would want to visit here?

  • South Australians take the State's natural and cultural attributes for granted. The fact is that, despite not having well recognized classic tourism 'icons'; not being a 'gateway'; and not having a large population base, the State is performing well in tourism.

  • South Australia's average 6% share of Australian tourism nights generates $3.1 billion in tourism spending and supports 36,000 FTE jobs (Source: Economic Research Consultants, April 2000).

  • For the twelve months to March 2000, South Australia exceeded national tourism growth in international, interstate and intrastate visitor nights. (Source: Bureau of Tourism Research: International Visitors Survey; National Visitor Survey)

  • The tourism market and the tourism industry are maturing. There is significant growth in interest in authentic destinations relative to conventional destinations. Visitors are seeking out authentic places and 'special interest' experiences. Far from limiting growth potential, these specialty (niche) experiences tap global markets.

  • South Australia's competitive strength is its relatively authentic and unspoilt character. It is not 'touristy'. Its appeal is largely derived from whom we are as South Australians, our environment, how we live and play and what we do and produce. If we conserve and enhance the special natural and cultural attributes of our State and regions this will appeal to this growing market.

  • South Australia has a lot to offer the ever increasingly sophisticated and discerning tourism market. Opportunities for tourism growth in South Australia include wine and food, special events, heritage and culture, nature-based activities (including marine and coastal) and the Outback experience.

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Does tourism enjoy strong community support compared to other industries?

  • As regions struggle through economic restructuring due to global market forces, tourism will become increasingly important.

  • An illustration of this is the fact that 89% of the residents of Kangaroo Island consider tourism to be either 'good' or 'very good' for the Island with only 3.2% considering it to be bad. (Source: Kangaroo Island Residents Survey, KI DB, Tan Research Pty. Ltd., April 1998).

  • Tourism will provide opportunities for regional development and in particular for rural areas that are undergoing structural change. As a labour intensive industry, tourism - with the right encouragement - will deliver even greater job opportunities, particularly for young people.

  • Other benefits include opportunities for diversification, new local businesses, improved services and facilities, preservation of heritage and culture, improved environmental management and community development.

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Why doesn't South Australia 'market' these tourism opportunities better?

  • SATC undertakes most of its marketing initiatives externally and residents rarely see the evidence of this in their own State.

  • South Australia's tourism marketing is arguably the most targeted and innovative in Australia. Independent evaluation of SATC marketing demonstrates a high degree of effectiveness achieving a return on investment of 10:1. Recent overall performance figures testify to this with record levels of tourism from all markets.

  • In addition to these key measures, South Australia recently won the Australian Marketing Institute's National Award for Marketing Excellence in the Tourism and Leisure Category. This Award rewarded excellence in strategy, creativity and achieving the Secrets campaign objectives.

  • However, notwithstanding the efficacy of SATC's marketing initiatives, most people have a narrow view of what marketing actually is. Tourism marketing is more than advertising and promotion - it involves co-ordinating a complex set of inter-related tasks, including:

    • Setting broad goals for tourism's contribution to State development
    • Forecasting and setting targets for growth
    • Researching market trends attitudes and behaviour (and our competitors)
    • Developing policies and strategies for sustainable industry development
    • Targeting the most productive segments of the market
    • Determining the position to adopt in the marketplace
    • Devising a brand identity that will appeal to the target markets
    • Developing and enhancing the destination experience
    • Encouraging synergies and linkages between tourism and other activities
    • Attracting the investment to implement tourism strategy
    • Providing access and infrastructure to facilitate the experience
    • Packaging the product (for some) to make it more convenient and affordable
    • Identifying and connecting with the travel distribution network
    • Seeking positive publicity to raise awareness of the product
    • Promoting the product to motivate the market to buy it
    • Ensuring the consumer has access to information and booking services
    • Influencing other relevant parties to complement the strategy
    • Delivering on the promise - professionalism and standards
    • Jointly monitoring and managing tourism with other stakeholders to ensure sustainability

  • From this it can be seen that advertising and promotion alone is only part of a complex and inter-connected process. The enhancement of the experience is as important as effectively communicating to people about the experiences on offer.

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South Australia is relatively 'authentic' and unspoilt compared to some other tourism destinations. Why do we need 'tourist' development - can't people just appreciate us the way we are?

  • One of the most consistent messages from the past twenty years of SATC market research is that potential visitors "do not perceive that there is enough to see and do in South Australia". Such consumer perceptions need to be addressed in order to encourage people to come and spend money in South Australia.

  • This is best achieved by leveraging our existing strengths and attributes. For example, one of the State's main strengths is its reputation for wine. The State is also aiming, through the State Food Plan, to significantly increase the export value of primary production through such things as encouraging value-adding and opening up new market outlets.

  • This provides an excellent opportunity to achieve synergies between wine, food and tourism. Food can complement the State's reputation for wine and enhance visitors' 'gourmet' and learning experience. Conversely, South Australia's reputation with visitors in this regard will help position the State in the wine and food export markets as being a special place that produces special wine and food.

  • From the consumers' perspective, recent research has demonstrated that visitor expectations to South Australia's wine regions are for "good quality wine, good food, good and experienced cellar door service …..".

  • Despite this expectation of good food and wine, as many as 39% of visitors to South Australia's wine regions mention dissatisfaction with the lack of dining facilities in conjunction their wine tourism experience either at the cellar door, or in the region generally. (Source: Wine Tourism Market Survey, Market Equity, October 2000) We therefore need to be constantly looking to how we can improve our destination appeal consistent with our inherent attributes.

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If we are too enthusiastic about encouraging tourism, won't we soon be over-run with tourists?

  • The conventional yardstick for measuring tourism success in the past has been based on the numbers of people attracted. This has led to the perception that tourism is just interested in attracting more people in order to be successful (some fear at any cost).

  • On average, on any one night in South Australia, international visitors (for any purpose) represent only about 0.2% of the State's population.

  • Tourism could therefore grow significantly larger before it makes a discernable impact on our lifestyle. (Even then this assumes that all visitors are somehow discernable from the local population and in some way incompatible, which is clearly not the case).

  • The economic benefits of tourism can be achieved by: (1) attracting more people; (2) getting those that come to stay longer; (3) encouraging those that come to spend more; and/or (4) encouraging those that come to come back for repeat visits.

  • Achieving mere numbers without economic return jeopardizes the achievement of goals related to creating jobs; developing regional economies; generating income for restoring and conserving valued heritage and cultural attributes; improving environmental management; improving facilities and infrastructure that the local community can enjoy.

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Is it likely that the State will lose its cultural identity by catering to the perceived needs of international markets?

  • Most tourists travel because they want to experience change - something different to what they can see or do at home. This includes experiencing the real life and lifestyle of the destinations they choose.

  • Over 69% of South Australia's discretionary travel relies on the local market, or friends and relatives that are visiting local residents. (Source: Productive Approach to SATC Marketing, BDA Marketing Planning, September 2000)

  • This suggests that, in the first instance, tourism development should aim to satisfy local needs. It is the distinctive local flavour that this generates that will then be so appealing to other [export] markets.

  • This is the core of South Australia's sustainable tourism strategy. Don't be conventional; don't copy; learn lessons from others - adapt perhaps, but grow your own character from within based on your own strengths and attributes; develop places, attractions and activities for the local market to give them their sense of relevance and vibrancy and share this 'unique' experience with visitors.

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Doesn't tourism development mean 'motel style' or big, 'large resort' development that conflicts with South Australia's character?

  • Whilst there may be scope for some larger tourism developments in country South Australia, as a general rule, this is neither desirable for the State's tourism positioning, nor is it likely to be commercially realistic given the State's small population and tourism demand base.

    SOUTH AUSTRALIA'S TOURISM DEVELOPMENT STRATEGY

    The preferences of our target markets (local character and homely feel)

    + Commercial realities (relatively small local demand and visitor levels)

    + Financial markets (seeking lower capital risk projects)

    + Community demands (development that fits)

    + Sustainable tourism (developments with low impacts)

    + Strategic imperative (differentiation from other conventional destinations)

    = Small to medium scale specialised developments (eg: B&Bs, farm stays, guesthouses, nature retreats, health retreats, country pubs, boutique hotels)

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Does this mean that small-scale B&B development is the only appropriate scale for tourism in South Australia

  • The key to successful tourism is providing choice within a distinctive market positioning. This means encouraging a range of suitable tourism developments that enhance the visitors' experience of our natural and cultural environment.

  • The reality is that B&Bs account for only 2.3% of overnight visitors in SA and 1.8% of visitor nights. (Source: National Visitor Survey). Given that the current average occupancy of B&B establishments is around 35%, it is unlikely that this form of accommodation will satisfy tourism demand.

  • As positive as the B&B sector is to the State's tourism appeal for particular types of experiences (eg short escape breaks) and for particular regions, it would be unwise to develop policy for country South Australia that seeks to build a tourism industry largely on the B&B sector.

  • Whilst the many different types of B&Bs can provide unique and intimate experiences, they can't possibly cater for the huge diversity of needs and expectations of visitors.

  • More-over, B&Bs, whilst appealing to international visitors, are not suitable for the international market distribution system. They do not provide inbound tour operators with sufficient capacity, choice and flexibility in booking when catering for groups of travellers.

  • SA must provide a range of tourism accommodation. Major gaps that currently exist are in the medium-scale range and the coastal/nature retreat sector.

  • SATC's strategy is to encourage accommodation that is part of the experience and to provide linkages and synergies to the authentic natural and cultural attributes of an area.

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Isn't it true that tourism development is subject to the vagaries of market forces. Is today's 'fad' therefore tomorrow's unwanted development?

  • This is perhaps true of culturally irrelevant development. However, tourism development that is derived from, or integrates with the natural and cultural environment will be more enduring. As authentic natural and cultural resources diminish, these will become more valued.

  • The possibility of changes in demand patterns is no more a feature of tourism as it is of any economic activity. For example, the farming and rural community, in general, is often subjected to unforeseen and dramatic shifts in business based on external forces and conditions.

  • Any tourism development that achieves a sense of being special (different), of continuity (having connections to the past), of belonging (fitting with the fabric of the present community) and of conserving and enhancing (valued local attributes and resources) is also likely to evolve with that community. Such development will have a long life span given the increasing maturity and discernment of the tourism market.

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Don't tourism developments have high environmental impacts and therefore constitute a large risk?

  • Whilst badly conceived and managed tourism development can have negative impacts, tourism is nevertheless a relatively benign land use.

  • Unlike many other economic land uses, tourism does not require broad-acre vegetation clearance, engage in mass use of chemicals (fertilizers, growth enhancers, pesticides), cause erosion, result in land degradation such as soil salinity, involve visually intrusive operations, deplete resources, produce toxic emissions or by-products, and it has few negative downstream effects.

  • In fact, more than any other land-use, tourism depends, and will increasingly depend on its sensitive use of the natural and cultural environment and its aesthetic appeal to ensure a quality visitor experience.

  • Sensitive tourism design is not only pursued for altruistic purposes, but it makes good commercial sense. Sustainable tourism has a direct economic interest in helping people understand, appreciate and conserve the natural and cultural assets they use.

  • This is particularly relevant today as consumers are becoming more environmentally conscious and responsible and are seeking to learn more about the environment and the culture within which they move.

  • In South Australia, tourism's success will depend on its ability to sensitively value-add to existing landscapes and activities. It may even provide the economic impetus to restore degraded landscapes and sites and in the process raise environmental awareness and model positive steps to care for the environment (eg Banrock Station in the Riverland - wine and tourism synergy).

  • Tourism can potentially be a powerful force for conservation through its ability to present and interpret the natural and cultural environment. Appropriate performance measures will provide parameters within which innovative sustainable development can be achieved.

  • Just as most other economic sectors are now doing, the tourism industry in South Australia takes its environmental responsibilities seriously. Indeed this is where its greatest future competitive advantage may be.

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Won't tourism development compete with agriculture for productive land, or constrain primary producers 'right to farm'?

  • In regard to competition for productive land the reality is that tourism is not a broad-acre user of land. Only a miniscule portion of land will be used for tourism purposes.

  • In either a stand alone, or value-adding context, appropriate performance measures can be put in place to ensure that the tourism component does not alienate scarce highly productive land.

  • In the same way, if there is potential conflict between those seeking leisure and recreation and those engaging in primary production, then appropriate separation distance performance measures can be applied.

  • There are significant potential synergies between tourism and agriculture especially in wine and niche agricultural products. Tourism has the ability to value-add in a variety of ways from greater awareness of the produce and greater esteem of the brand through positive association with its place of origin.

  • More directly, tourism can help diversify agricultural operations and provide an alternative income stream in less buoyant times. Case studies currently being compiled by SATC reveal that tourism comprises between 10% and 80% of the income for those primary producers that have diversified into tourism.

  • As a further illustration of this, one third of Kangaroo Island residents who derived income from agriculture also had part-time income from tourism. Furthermore, 54% of farming related workers project that their farm enterprise could not continue to operate beyond 3 years without an increase in prices or change in mix of enterprise. (Source: Kangaroo Island Residents Survey, KI Development Board, Tan Research Pty. Ltd., March 2000).

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