5.2 Primary Product Segments

Victoria's primary product segments offer competitive positioning and high visitation and yield with significant growth potential. The primary product strengths are:

• Food and wine
  
• Nature based
  
• Alpine/ski
  
• Arts, theatre and cultural heritage
  
• Backpackers
  
• Shopping
  
• Touring
  
• Accommodation
  
• Golf
  
• Events (expanded upon in Chapters 8 and 9)

Food and Wine

Objectives

• Increase awareness of the quality of winery tourism experiences, diversity and accessibility of Victoria's wine regions.
  
• Further develop the natural synergy between food and wine and achieve the consistent integration of food as part of the winery tourism experience.
  
• Achieve wider regional and seasonal dispersal of food and winery tourism.
  
• Encourage training, education and accreditation of operators and employees.
  
• Increase and strengthen co-operative alliances between key stakeholders.
  
• Increase and strengthen cooperative alliances between wineries and other local and regional tourism products and services.

Background

Food and wine is one of Victoria's core tourism strengths. The estimated expenditure generated from winery tourism in Victoria in 2000 was $394 million, including amounts spent on food, cellar door sales, accommodation and on-site purchases such as souvenirs. The economic value of food and wine tourism has steadily increased due to higher visitation and per visit expenditure. This segment has excellent potential for further development through co-operative alliances and packaging with other tourism product.

The Victorian Wineries Tourism Council (VWTC) was established in 1993 to provide advice and facilitate the growth of Victoria's food and wineries tourism capacity, marketing and results. The VWTC has played a pivotal role in increasing the State's competitiveness and will continue with particular emphasis on food and wine tourism integration.

Issues

The number of wineries offering food as part of the cellar door experience is increasing, generating higher yield. However there is low awareness of Victorian food and wine product in interstate and international markets.
Consumer desire to participate in lifestyle experiences is increasing and products such as produce outlets and gourmet trails, which are not tourism-ready, can do considerable harm to a region's reputation. Festivals could be improved to better leverage food and wine tourism.
The regional food (tourism) sector is largely unstructured with few networking, training and educational opportunities. There are also low levels of accreditation among food and winery tourism operators.
Greater promotion of regional restaurants is also required.

Strategies

• o Integrate food and wine as core product strengths in all marketing strategies.
  
• Promote the profile of Melbourne's pre-eminent and diverse restaurant strength.
  
• Brand and promote the Yarra Valley as Victoria's hero food and wine destination to national and international markets.
  
• Encourage and promote quality restaurant experiences in regional Victoria.
  
• Encourage the development of regional food tourism groups with the skills to provide leadership and integrate marketing strategies at the local and regional levels.
  
• Ensure cooperation between regional wine and food groups, and local and regional tourism organisations.
  
• Increase national marketing of Victoria's wineries in conjunction with regional restaurants, local food and regional produce.
  
• Encourage quality food and wine festivals that have the capacity to increase regional and seasonal visitor dispersal.
  
• Develop alliances with regional primary producers, markets, cafes and restaurants.
  
• Investigate opportunities for agri-tourism development.
  
• Capitalise on Australia's wine export industry and Melbourne's inclusion in the Great Wine Capitals Global Network.
  
• VWTC to continue providing advice to Tourism Victoria and the industry on strategies and programs to develop and interpret food and wineries tourism.

Further details are available in the Victorian Wineries Tourism Council's Food and Wine Tourism Development Plan.

Offers Quality food experiences and world class restaurants (Brand Health Graph):
Has many boutique wineries to visit (Brand Health Graph):

Melbourne and Sydney are dominant in the minds of domestic consumers for offering quality food experiences and world class restaurants, with Melbourne being the brand leader in 2001. However, South Australia is the clear choice for boutique wineries. Victoria's reputation for food and wine has grown significantly since 1996, highlighting the potential of this product segment in the future.

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Nature Based

Objectives

• Position Victoria as having diverse and accessible world-class natural attractions and activities, such as walking, fishing and adventure.
  
• Improve operator viability and standards.
  
• Increase environmental awareness, including knowledge of the environment, potential impacts of tourism and ecologically sustainable practices.
  
• Develop iconic natural attractions and associated product.
  
• Ensure Victoria's trail network is developed and managed using principles and practical outcomes of environmental sustainability.

Background

Nature based tourism is a growing phenomenon around the world, with increasing importance for attracting high yield visitors. Research indicates that the economic and environmental value of nature based tourism is significant.

Victoria possesses the following primary competitive nature based tourism strengths:

1. Diversity of natural landscapes, from desert, alpine and coastal to rainforest and wilderness, and a distinctive biodiversity of ecosystems within these settings.
   
2. Accessibility of nature based experiences from Melbourne and major regional centres and the most extensive range of national parks and public lands within a compact and easily toured state.

Victoria's wealth of natural attractions, featuring an outstanding range of landscapes, distinctive flora and fauna and high levels of biodiversity, offers the potential to position the State as a world-class nature based tourist destination. In addition to general sightseeing, nature study and passive enjoyment of nature based tourism includes segments such as adventure, trail activities and fishing.

Adventure tourism in Victoria is positioned as, "a range of accessible and safe adventure activities, conducted in a sustainable manner throughout the State's diverse environment." This sector includes high adrenalin activities, such as white water rafting and abseiling, and softer adventure experiences, like horse riding. Adventure tourism has the potential to appeal to a cross-section of visitors.

The future of adventure tourism relies on cooperative partnerships and alliances within the industry. The annual summit on adventure tourism encourages this by providing a forum for sharing information on the latest research, accreditation, insurance, websites, marketing cooperatives, and training workshops.

Victoria has more than 2000 trails with a total length of about 8000 kilometres, ranging from short walking loops to long distance overnight hikes. Combined with diverse landscapes such as forests, mountains, coasts and river valleys, the network offers a great variety of trail experiences.

The Victorian Trails Coordinating Committee with representation from Tourism Victoria, Parks Victoria, the Department of Natural Resources and Environment and Sport and Recreation is coordinating implementation of the Victorian Trails Strategy 2001-2004.

Victoria offers diverse recreational fishing opportunities from freshwater river and lake, to estuary, inlet, bay, beach and ocean fishing. The State's size, well-developed tourism infrastructure and the proximity of fishing attractions to parks and reserves, makes recreational fishing readily accessible.

Issues

There is still much to be done to realise the true tourism potential of the nature-based segment. There is a need to raise consumer and community awareness and increase the participation of regional communities in the protection of natural resources and the development and maintenance of a viable regional tourism industry.

There is a lack of viability of many tourism businesses, while links between core product and supporting products and services are not fully developed.

There is a need to enhance infrastructure, which will allow visitors to fully experience Victoria's natural assets. A high profile walk, would better position Victoria as a desirable destination for walking and experiencing nature-based tourism.

Limited market knowledge about the quality, diversity and accessibility of Victoria's natural attractions and activities (e.g adventure, fishing) at an interstate and international level, needs to be addressed.

While fishing is a significant recreational activity attracting visitors to several regions, in tourism terms the high yield markets are relatively small. Victoria lacks a single standout fishing activity that will position the State against interstate competition. A high profile fishing experience is needed that competes with those available throughout Australia and New Zealand.

Among Victoria's adventure tourism providers there is a lack of cohesion and understanding of the importance of strategic marketing, accreditation, licensing, training, visitor satisfaction, monitoring, loyalty programs, and value adding. Operators require risk management strategies to minimise risk and reduce claims as well as collective purchasing initiatives and pricing strategies, to minimise the impact of rising insurance premiums.

Integrating and coordinating implementation of a range of government policy and strategy commitments will require ongoing attention, including the Nature Based Tourism Directions and Opportunities Plan 2000-2003 and Parks Victoria strategies.

Strategies

• Integrate the promotion of Victoria's leading natural attractions in regional, national and international marketing programs. These attractions have been identified as Grampians National Park, Port Campbell National Park/ Otways, Wilsons Promontory/ Corner Inlet, Melbourne's Bays, Phillip Island Nature Park, Murray River, East Gippsland Coast, Gippsland Lakes and the High Country.
  
• Develop and profile icon product that will clearly make a difference to the competitive positioning of Victoria, such as wilderness lodges and high profile walks.
  
• Facilitate appropriate product and infrastructure development and/or improvement at or adjacent to key natural attractions to match consumer expectations.
  
• Conduct further analysis of visitor research to determine key nature based/ adventure tourism visitor markets for Victoria.
  
• Market key regional natural attractions and associated experiences, adventure and fishing product to target state, national and international markets.
  
• Encourage the formation of adventure tourism business collectives.
  
• Encourage the development of private fishing impoundments with accommodation within two hours of Melbourne.
  
• Provide quality information on fishing through visitor guides, online and other collateral at a regional level.

Further details are available in Tourism Victoria's:

• Victoria's Nature Based Tourism Directions and Opportunities;
  
• Adventure Tourism Action Plan;
  
• Fishing Tourism Action Plan; and
  
• Victoria's Trail Strategy.

Has world class natural attractions (Brand Health Graph):
Brand perception of Victoria's world class natural attractions is very low, however enhanced awareness of their diversity and accessibility will assist Victoria's positioning in the future. Development of icon product and infrastructure is needed, in addition to increased emphasis on professionalism and standards.

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Alpine/ Ski

Objectives

• Achieve growth in first time and repeat ski visitors, targeting specific segments such as the family market.
  
• Increase visitation outside the ski season.
  
• Maximise alpine visitation in touring and regional experiences.
  
• Raise awareness of the unique benefits of the Victorian alpine resorts.
  
• Increase yield through increased visitation and length of stay.

Background

Alpine tourism has been identified as a major product strength for 2002-2006, offering a range of attractive recreational activities. While visitation during the winter months continues to grow, alpine areas are increasingly recognised as viable destinations at all times of the year.

Research shows that growth in winter visitation is primarily attributed to new skiers and snow visitors, however repeat visitation is predominantly by ski enthusiasts. Therefore, potential exists to encourage a higher volume of repeat visitation from high growth segments.

The development of alpine tourism relies heavily on alliances between the Board of Alpine Resorts Tourism (BART), local government and the Department of Infrastructure. BART is representative of Victoria's smaller alpine resorts, the three major resorts, the Department of Natural Resources and Environment, Alpine Resorts Co-ordinating Council and Tourism Victoria.

Issues

Victoria's alpine areas have strong competition from New Zealand, Canada and New South Wales skifields. Competition also exists with destinations that have warm climates during Victoria's ski season.

Consumer perception is that alpine visitation in Victoria is expensive.

A lack of cohesiveness and communication between key stakeholders and low levels of cooperative funding limits the ability to capitalise on common objectives, marketing and branding for the alpine areas.

There is limited access to transport for independent travellers and a lack of tourism product outside the ski season.

Global climate changes could also affect snowfalls in the long term.

Strategies

• Promote a single consistent brand for the Victorian winter experience.
  
• Include spring, summer and autumn experiences in complementary marketing campaigns.
  
• Leverage touring to increase year-round visitation to the alpine regions.
  
• Position alpine destinations for holidaymakers, not just sport enthusiasts.
  
• Increase cohesiveness and cooperation between industry partners.
  
• BART continues to lead the strategic direction and marketing of Victoria's alpine areas.

Further details are available in the Board of Alpine Resort Tourism's Grow the Market Strategy.

Major motivation for going to the Snow by Year (Snow Motivation Graph):

Research conducted in 2001 identified the two most common motivations for going to the snow as "a family holiday" (20.9%) and "for excitement" (19.3%). Since 1996 there has been a 9.4 percentage point decline in "excitement" as a major motivation. "Family holiday" is now the most common reason for going to the snow. There has also been a marginal increase in other major motivators since 1996, with a higher proportion of respondents wanting "a winter holiday experience", "to relax or escape" or "social experiences".

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Arts, Theatre and Cultural Heritage

Objectives

• Develop strategies to enhance awareness of the richness of Victoria's arts and cultural heritage product.
  
• Encourage product development that is appropriate and competitive for target markets.
  
• Support industry development opportunities that improve professionalism and maintain industry standards.
  
• Capitalise on the cultural component of the Commonwealth Games to enhance Victoria's position as the cultural capital of Australia.
  
• Identify integrated and co-operative marketing opportunities for arts and cultural heritage product.
  
• Increase domestic and international visitation to Victoria by consumers of arts, theatre and cultural heritage product.

Background

Arts, theatre and cultural heritage are recognised core product strengths for Victoria and will continue to play an important role in the future. Research shows that arts, cultural events, theatre and visiting history and heritage buildings, museums and art galleries are the most popular cultural activities enjoyed by visitors while in Victoria. Recently completed and planned infrastructure, such as the Melbourne Museum and Federation Square's National Gallery of Victoria: Ian Potter Centre for Australian Art, and the Australian Centre for the Moving Image, is likely to increase the level of interest in Melbourne as a cultural destination.

Regional Victoria is also well positioned to meet the needs of cultural visitors. It is home to some of the finest regional galleries in Australia, as well as a number of nationally significant collections, and is rich with history and heritage sites.

Complementary product such as food and wine and natural attractions have the potential to encourage experiential self-drive touring, that includes arts, theatre or cultural heritage experiences.

An Arts, Theatre and Cultural Heritage Tourism Plan (2002) has been developed to investigate ways in which the public and private sector can work together to increase the tourism profile of this core product segment in Victoria.

Issues

In an increasingly competitive environment, effort is needed to maintain and enhance Victoria's reputation as a culturally rich state and Melbourne's reputation as the cultural capital of Australia.

Strategies

• Identify and feature arts, theatre and cultural heritage product that is of national or international standard in regional, national and international marketing initiatives.
  
• Encourage the development of regional product that is appropriate and competitive within national and international markets.
  
• Support the premiering of theatre productions and blockbuster art and cultural exhibitions.
  
• Capitalise on the cultural component of the 2006 Commonwealth Games.

Further details are available in Tourism Victoria's Arts, Theatre and Cultural Heritage Tourism Plan.

Reputation as a great city for theatre (Brand Health Graph):
Offers the opportunity to discover unique history and heritage (Brand Health Graph):
Melbourne continues to lead in reputation as a great city for theatre as reflected in the brand awareness research of 2001. However, the perception of unique history and heritage is more prominent for New South Wales, NT and TAS. Therefore, Victoria has the opportunity to achieve greater awareness in key domestic markets for this product.

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Backpackers

Objectives

• Increase backpackers' length of stay in Victoria by offering relevant product such as adventure activities.
  
• Strengthen Victoria's positioning as a backpacker friendly destination.
  
• Develop products, services and infrastructure to facilitate growth and dispersal of the backpacker market.

Background

The backpacker market is a key niche segment for Victoria and has been identified as a priority development area for 2002-2006. With the product, facilities and accessibility in place to cater to this market, Victoria is a popular inclusion in international backpacker itineraries, with almost half (43%) of all backpackers to Australia visiting the State.

Backpacker visitors to Victoria have more than doubled in the last decade. They stay considerably longer in Australia than other international visitors, with an average stay in Victoria of 24 nights compared with 19 nights for total international visitors. Similarly, backpackers spend more than other international visitors.

Melbourne continues to be a key drawcard for backpackers to Victoria, however regional destinations are also important, offering a sense of adventure and somewhere less travelled.

While in Australia, backpackers tend to be interested in socialising with locals and other backpackers, attending major events such as the Australian Open championship tennis, working in both the city and regions and undertaking adventure activities and nature-based tourism experiences. Some of these aspects, along with the climate and cost of a destination are key factors in influencing travel decisions.

Issues

The main travel route of backpackers is generally north from Sydney, not south to Victoria.

There is a lack of qualitative data on Victoria's backpacker market. There are also gaps in Victoria's backpacker infrastructure and insufficient commissionable product.

There is a need for greater availability and flexibility of working holiday visas to Australia.

Strategies

• Undertake a backpacker marketing campaign in New South Wales, Queensland and Victoria to influence travel patterns and length of stay in Victoria.
  
• Develop an international marketing campaign and specific distribution system incorporating more efficient information distribution to backpackers through a specific website and targeted promotional material.
  
• Encourage product suppliers to participate in cooperative marketing campaigns and to undertake product development to meet consumer demand.
  
• Educate the industry on opportunities and specific needs of backpackers, including appropriately responding to information needs in the market.

Backpacker Visitors to Victoria

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Shopping

Objectives

• Maintain Melbourne's brand reputation for shopping.
  
• Increase awareness of Melbourne's shopping precincts.
  
• Promote Melbourne shopping experiences as part of visitor itineraries.
  
• Encourage development of unique local or regional shopping experiences.

Background

Shopping is an important component of visitor experience and contributes significantly to Melbourne's retail sustainability. Consumer research illustrates that recognition of shopping in Melbourne is high in domestic markets. Laneways and arcades offer a unique city shopping experience, while precincts encourage visitors to explore surrounding districts. There has been recent growth in shopping strips and precincts.

Shopping enhances visitor experiences in regional Victoria, but does not act as a motivator for travel.

Issues

Melbourne continues to be the leader for shopping, but Sydney is a major competitor in this segment. To retain dominance in this segment, attention to service excellence and training is required, in addition to maintaining a good range of quality shopping experiences. This will only be achieved if retailers recognise the value of tourism. Alliances between the tourism industry and retailers are crucial to this process.

Destination Melbourne Inc. is well placed to act as an intermediary between tourism and retailers, including streamlining the process of cooperative marketing.

Retail shopping hours are prohibitive to some important international markets.

Strategies

• Maximise visitor satisfaction by achieving a greater understanding of the value of tourism and expectations of key markets among retailers.
  
• Promote the uniqueness of Melbourne's laneways and arcades and the diverse shopping experiences and precincts available around Melbourne.
  
• Align shopping experiences with the unique strengths of Victoria's regions to enhance visitor satisfaction and yield e.g. antiques, local craft markets, Surf City at Torquay.
  
• Promote shopping in Melbourne to interstate and country Victoria target markets.

Is a great place to go shopping (Brand Health Graph):
Brand research conducted in 2001 indicates the high brand awareness of Melbourne as a shopping destination, in domestic markets. While Melbourne has traditionally dominated other capital cities in this product segment, authentic Australian product and high fashion are pivotal to retaining market share.

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Touring

Objectives

• Increase yield and overnight stays in regional Victoria.
  
• Recognise the different needs of markets and offer touring that is themed and research-based.
  
• Develop touring to meet the needs of national and international target markets.
  
• Establish strong partnerships with neighbouring states.

Background

Victoria's compact nature and diversity along with its high quality roads and road signing has led to the development of touring as a product strength for the State. While numerous touring routes have developed in recent years, a review needs to be undertaken to prioritise these touring routes and to ensure that each is adequately marketed in the relevant national and international markets.

Issues

Routes that link Melbourne with touring destinations need to be developed and the issues of sustainability considered. There is a lack of understanding about how the various market segments perceive the concept of touring, and a current lack of research about the value of touring routes.

Touring routes depend on quality infrastructure, signage, services and consumer collateral, which are developed to varying degrees around the State.

Strategies

• Develop and implement a touring strategy incorporating an audit of existing touring routes and product availability.
  
• Investigate special interest touring for the domestic market.
  
• Conduct research on specific markets, motivations, trip cycles and relevant product strengths.
  
• Develop a hierarchy of national, regional and local touring routes.
  
• Increase marketing of touring by Tourism Victoria through a touring guide publication and customised touring itineraries on visitvictoria.com.

Is a great place to tour by car (Brand Health Graph):
Consumer perception in 2001 of great places to tour by car was very positive, with Victoria being top of mind for the majority of consumers surveyed. Queensland and Tasmania also performed well, highlighting a need to further develop and market this segment in Victoria to maintain competitive advantage.

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Accommodation

Objectives

• Achieve greater consumer awareness of the diversity and quality of accommodation in Victoria.
  
• Strengthen strategic alliances between key associations to encourage greater synergy and effectiveness.
  
• Raise the professionalism and standards of accommodation to world class standards relative to market demands.

Background

There are a number of associations that play a pivotal role in the development of Victoria's accommodation sector. These include Bed and Breakfast Council of Victoria; Australian Farm and Country Tourism; Australian Hotels Association; Hotel, Motel and Accommodation Association of Victoria; Victorian Caravan Parks Association; Caravan Trades and Industry Association; Country Victoria Tourism Council and Tourism Victoria.

Issues

Most accommodation providers are small business operators with small marketing budgets, which limits their ability to market through the travel trade. Professionalism and standards vary widely and there is a reluctance to participate in accreditation programs.

Confusion with AAA Tourism's accommodation classification scheme (star rating) is also an issue for this sector.

Several new hotel developments have begun in regional Victoria. These hotels, when complete, will significantly add to the accommodation base in regional Victoria.

Strategies

Hosted Accommodation (Bed and Breakfast, Farm Stays, Guesthouses, Cottages)

• Package hosted accommodation with other appropriate product or experiences, such as arts, theatre and cultural heritage, food and wine or touring opportunities.
  
• Develop cooperative marketing programs such as Bed and Breakfast Getaways.

Hotels, Motels, Serviced Apartments, Resorts

• Capitalise on market opportunities related to the corporate travel or conference and convention market.
  
• Develop a cooperative marketing program such as Victoria's Great Escapes.
  
• Further leverage public relations opportunities, such as media familiarisations to raise the awareness and profile of this sector.

Caravan and Holiday Parks, Camping, Cabins

• Enhance consumer perception through raising awareness of contemporary product development initiatives such as the expansion of family facilities and self-contained cabins.

More information on Victoria's accommodation can be found in the Investment Attraction section of this plan.

Golf

Objectives

• Raise Victoria's profile as Australia's premier golf destination.
  
• Increase golf tourism expenditure in Victoria.
  
• Ensure product development is in line with market needs.

Background

Victoria is currently experiencing unparalleled investment in golf infrastructure, presenting a significant opportunity to establish a distinct competitive advantage in the market place. Victoria's advantage is the depth, quality and cluster of its golf product.

In the past two years several courses designed by internationally recognised golf course designers have opened in Victoria, with several more under current development. Some of these private courses allow visitors to use them on a "pay for play" basis.

Alongside these developments are major events such as the Heineken Classic, which will be hosted in Melbourne from 2002-2006. This represents a major opportunity to position Melbourne and Victoria as the golfing capital in Australia.

Issues

Victoria has long been renowned as home to many of the best courses in Australia, with several ranking among the world's best. Known as 'sand belt' courses, they are privately run and access for non-members is strictly limited. This has severely hampered delivery of a top quality golfing experience to visitors in the past. However, most of the new high standard courses are either public, or make provision for public access. This trend is expected to continue in new developments.

The value of golf to the economy is significant. In light of Victoria's high quality golf facilities, there is potential to target very high yield market segments. While golf courses are to date not travel industry commissionable, there is also potential to package golf through accommodation and transport providers, incentive operators, and destination management companies.

Strategies

• Develop a golf tourism development strategy including:

• Undertaking an audit of golf product and development needs in specific regions.
  
• Prepare marketing strategies for golf to be used for both national and international markets.
  
• Promoting golf product, including events, to consumers and trade.

• Develop strategic alliances between Sport and Recreation Victoria, the Victorian Golf Association and other relevant golf industry bodies.

Addendum - October 2004

Addendum - October 2003