1.6 Opportunities & Challenges

The development of this plan addresses a number of issues, which highlight strengths or opportunities for the industry as well as the challenges that lay ahead. Strategies to maximise opportunities and address challenges are outlined throughout the plan.

Opportunities

Recognition and consistency of the Jigsaw Brand remains a competitive strength. Further development of the brand and leveraging off the work and profile already achieved, provides a unique opportunity for the State.

Selling Victoria's compactness, especially the diversity of attractions and experiences in a relatively small area. A combined city and regional holiday or visit is readily accessible.

Aligning industry goals with economic, social and environmental outcomes. Although emphasis on the economic benefits of the industry is obvious, tourism also delivers social value, e.g. contribution to community renewal in regional centres, and environmental benefits (ie. education and awareness of conservation values).

Growing professionalism and relative cohesion and cooperation of the industry can be further enhanced by developing a strong industry voice that influences both public and private sector policy.

The ability to highlight and leverage product strengths such as events and festivals, food and wine, touring and nature-based product exists. There is an opportunity to further expand marketing and integrate product to develop a more holistic experience for the consumer.

Using the advantages of Melbourne Airport in attracting and maintaining international and domestic air services, e.g. 24-hour operation provides a competitive edge. In addition to the advantage this provides in international airline negotiations, there is an opportunity to increase domestic air services out of standard hours.

The perception of Australia as a safe and friendly destination will assist in attracting international visits.

Greater understanding of the tourism industry and availability of cause and effect research will further highlight the economic and social benefits of the industry, particularly in regional communities.

A focus on visitor satisfaction as a competitive strength not only places an emphasis on the professionalism of the industry, but can contribute to building community pride. This will enhance the visitor experience and stimulate repeat visitation.

Interdependence of the tourism industry with other sectors provides the opportunity for industry, government and community leaders from outside the industry to become involved in its future. Growth of the industry can only be nurtured if a vision is developed and shared with those outside the parameters of the traditional industry players.

Challenges

Low community and government awareness of the value of tourism. There is a need to clearly articulate the economic, social and environmental benefits of tourism.

The lack of a singular product strength. Although Victoria's diversity provides a competitive advantage, it requires a spread of the marketing effort. It also makes it difficult to have a single image with which consumers associate the State.

International and interstate awareness of regional Victoria is low. Success achieved in marketing Melbourne needs to be mirrored in regional Victoria.

Limited cohesion between tourism industry organisations. The absence of a strong industry voice has hindered the profile and negotiating position of the industry. More effort needs to be directed to small organisations amalgamating part or all of their operations. This is particularly relevant when considering administrative support and other functions that have a common operating platform.

A decrease in Victoria's competitive position in the business market due to competition from Asia and other states. As research and analysis reveals the importance of this market there will be a natural flow-on effect for competitive destinations to place more emphasis on facilitating appropriate infrastructure and marketing activity. Parts of Asia, for example Singapore, are becoming more aggressive in attracting the business market.

The medium to long term effects of the 2001 crises, i.e. collapse of Ansett, insurance premiums and reluctance to undertake long haul travel, reflect the need to have dynamic, flexible strategies that can be adapted to changing circumstances.

Without market intervention, it will be difficult for Victoria to maintain its market share of an increasing Asian market. Visitors from Asia visit fewer states compared with those of traditional markets. This places increased pressure on the need to increase direct air services and marketing effort to make Victoria a destination of choice.

Lack of a career structure for prospective tourism and hospitality employees. Although the availability of positions will increase, the perception of a lack of well paid positions compared to other industries could lead to high level talent being attracted to other industry sectors. The passion of people towards the industry will increasingly need to be matched by economic and social benefits.

One of the most crucial trends will be the merging of the tourism and leisure industries. This places tourism in competition with other leisure and entertainment activities such as theatre, home entertainment and other related products and services.