Tourism Investment Guidelines: Your Guide to - Tourism Victoria

TOURISM INVESTMENT GUIDELINES 

your guide to tourism investment in victoria 

tourismvictoria.com.au 

September 2008

Notice & Disclaimer 

Use of these Guidelines 

These Guidelines are intended to provide general guidance only and are not intended to provide financial advice 

or to be used as the basis for investment decisions. Specialist advice should be obtained regarding each project specific investment. 

While endeavours have been made to provide reliable and accurate information in the Guidelines based on data currently available, 

Tourism Victoria does not warrant the accuracy, currency nor completeness of the Guidelines or any information contained in the Guidelines. 

These Guidelines have been prepared solely for the purpose noted above and must not to be utilised or relied upon for any other purpose. 

Anyone using the Guidelines does so at their own risk and no responsibility is accepted by Tourism Victoria for any losses which might directly 

or indirectly result from any reliance on or use of the Guidelines.

message from the minister 

“ 

The Victorian Government is committed 

to working with local government, 

community groups and investors who 

wish to explore the exciting opportunities 

available in Victoria. 

” 

Tourism is one of the fastest growing industries in Victoria, 

contributing $10.9 billion to our economy and employing 159,000 people. 

Under the 10 Year Tourism and Events Industry Strategy, the Victorian Government aims 

to grow tourism to an $18 billion industry, employing 225,000 people by 2016. To achieve 

this aim, we need to enhance our existing tourism infrastructure, attractions and events as 

well as facilitate the delivery of new projects that capitalise on the State’s tourism strengths. 

In an environment of strong international competition for the tourist dollar, partnerships 

between Government and industry, along with significant private sector investment, 

will be crucial for the ongoing success of tourism in this State. 

The new Tourism Investment Guidelines: Your Guide to Tourism Investment in Victoria 

contains planning and development guidelines for tourism projects and is intended to assist in 

advancing projects from concept through to business planning and statutory planning stages. 

The Victorian Government is committed to working with local government, community 

groups and investors who wish to explore the exciting opportunities available in Victoria. 

I strongly encourage you to take advantage of this booklet 

as you develop and enhance your tourism product. 

TIM HOLDING MP 

Minister for Tourism and Major Events 

tourism investment guidelines 1

2 tourism investment guidelines 

Buckland Studio Retreat, Buckland Valley.

contents 

Clyde Park Vineyard, Bannockburn. Photographer: Mark Chew. 

Message from the Minister 1 

Introduction 4 

Project Process Summary 6 

Context For Tourism Investment 8 

Market Identification 15 

Concept Development 22 

Project Approvals 32 

Financing & Funding 48 

Construction 56 

Key Success Factors 58 

Appendices 59 

A. Summary – 10 Year Tourism & Events Industry Strategy 59 

B. Sustainable Design 60 

C. Key Organisations 61 

Cover image: 

Brambuk, Grampians. 

Photographer: Bindi Cole – Snap Happy. 


INTRODUCTION 

Tourism is a global growth industry. 

In Victoria, tourism activity has grown 

dramatically over the last two decades. 

Victoria’s principal tourism products – 

quality food and wine, events, natural 

attractions, cultural and heritage attractions, 

and retail diversity – have established a 

market identity and presence in Australia. 

Victoria has a number of critical competitive 

advantages in relation to tourism options 

and development – distinctive and consistent 

marketing, a wide range of lifestyle experiences, 

compactness and excellent accessibility 

(internationally and throughout the State) 

to diverse destinations and venues that host 

major events for sport, culture and business. 

Tourism is dynamic and competitive. Factors 

affecting its performance and operation 

include technological change, market 

influences, societal influences (environment, 

security, transportation, communications), 

and consumer preferences and aspirations. 

Understanding how such factors influence 

tourism choices made by consumers is 

essential for a successful and sustainable 

tourism industry. The full spectrum of 

factors that influence consumer choice 

– from global to local – also need to be 

considered together with how those factors 

affect different markets. 

Development and Investment in 

Victoria’s Tourism Industry 

Victoria has a comprehensive approach 

to tourism development and investment. 

The Victorian Government’s 10 Year Tourism 

and Events Industry Strategy (October 2006) 

establishes a strategic platform for tourism 

growth over the next decade. 

Victoria’s key tourism industry objectives are: 

• Build upon existing strengths. 

• Develop new strengths. 

• Focus on long-term growth 

opportunities. 

• Strengthen the partnership between 

Government and industry. 

Assisting Tourism Investment 

This document aims to assist individuals 

and organisations to become part of 

the Victorian tourism industry and assist 

its growth through investment and 

development of a tourism project. 

It is a resource and procedure guide that aims 

to assist proponents with small to medium 

scale investment projects to conceptualise, 

plan and develop their projects. 

The guidelines will: 

• Provide key data on the recent 

performance of Victoria’s tourism 

industry and information on statistical 

resources available to help assess 

market opportunities. 

• Outline the vital considerations in 

identifying the market demand for an 

investment idea, selection of a location 

and a site and creation of a 

development concept. 

• Identify the processes and pitfalls of 

obtaining development approval for 

the concept. 

• Highlight local government’s central 

role in informing and assisting tourism 

investors. It is also the primary approval 

body for development and its role in these 

processes are described in this document. 

• Provide advice on the special requirements 

that come into play if you are interested in 

investing in a project on public land. 

• Describe the principal elements for 

business planning and obtaining funds 

to turn the concept into reality. 

• Finally, the realisation of your investment 

is likely to require skill in the management 

of the construction phase to ensure 

quality and cost control. 

Tourism Victoria’s Role 

Tourism Victoria assists in the improvement 

of Victoria’s tourism assets by identifying 

economically and socially sustainable 

infrastructure opportunities, which will 

maintain the State’s competitive edge. 

Tourism Victoria’s strategic objectives include 

the expansion of private sector investment 

in tourism projects and the coordination 

of public infrastructure investment to gain 

optimum benefits for the tourism industry. 

This is achieved by providing data, new 

concept and investment ideas, information 

and facilitation of project approvals to both 

the public and private sectors. 

This guideline provides a broad overview 

of the tourism investment process in 

Victoria. Opportunities and information 

about specialised tourism areas such as wine 

tourism, golf tourism, nature-based tourism, 

spa and wellness tourism, alpine tourism, 

Aboriginal tourism and other sectors are 

also available at Tourism Victoria’s website 

www.tourismvictoria.com.au. Similarly, 

also available on this website are Regional 

Tourism Action Plans and Concept Proposals 

for Tourism Development in Victoria 2005, 

which identify opportunities and directions 

for future tourism investment throughout 

the State. 

Twelve Apostles, Great Ocean Walk. Photographer: Mark Watson. 

4 tourism investment guidelines


project process summary 

The following is a quick reference for developing new tourism projects 

from concept to reality. 

PROJECT STAGE required actions (The to-do list) what needs to be done 

Coming up with a 

Tourism Concept 

✓✓ Can a gap in tourism products be identified? If so, why? 

✓✓ Does the concept have a ‘point of difference’? 

✓✓ Identify the region/locality of the new tourism product. 

✓✓ Identify the project team and specialist advisors. 

• Preliminary assessment of products 

in selected locality. 

• Preliminary assessment of competition, 

quality and market strength. 

• Appoint architect, planner, and financial 

adviser as required. 

Market Assessment 

✓✓ Collect and analyse data on the performance of the proposed 

type of tourism product in the selected region/locality. 

✓✓ Identify the market segments likely to utilise the new product/ 

service. 

✓✓ Are there opportunities in the region/locality to build on the 

tourism strengths of the area or to form strategic alliances 

with others? 

✓✓ Assess consumer expenditure levels and preparedness to pay. 

✓✓ Assess price competitiveness and marketing expenditure 

necessary to reach the market in both the start-up phase and 

once you are operational. 

✓✓ Determine the risks to the projected market performance of 

the project. 

• Market research, local and regional data 

collection. 

• Research activities to include: discussions 

with Tourism Victoria, local government, local 

and regional tourism bodies, and evaluation 

of national demographic and tourism data. 

Site Selection 

✓✓ Ensure that the site is accessible and appropriately exposed 

to the target market. Ensure that the site is suitable to 

accommodate the intended use and all ancillary services 

and facilities. 

✓✓ Consider the statutory approval requirements – is the use and 

development permitted on the site? 

• Appoint planning advisor. 

• Speak with local real estate agents. 

• Discussions with local government 

planning department. 

• Discussions with servicing authorities. 

Concept Design 

✓✓ Assess the site attributes and limitations – 

enhance the attributes and minimise the limitations. 

✓✓ Prepare a functional layout that identifies the location, area 

and relationship of activities to be carried out on the site. 

✓✓ Prepare a preliminary architectural concept design for the 

project and proposals for services and facilities. 

✓✓ Ensure that the project concept includes sustainable design 

approaches and proposals to minimise adverse on-site and 

off-site impacts. 

✓✓ Assess the project cost and initial feasibility and ensure 

it is within the project budget. 

• Appoint architect. Consider various 

concept options. 

• Obtain reliable cost estimate of proposed 

development (appoint quantity surveyor to 

obtain estimate). 

• Have preliminary discussions 

with potential financiers. 

Continued on next page 


project process summary 

PROJECT STAGE required actions (The to-do list) what needs to be done 

Consultation 

✓✓ Meet with the local government – planning department, 

economic development department, tourism services, 

infrastructure services and local councillor(s) to identify 

requirements and procedures. 

✓✓ Meet with neighbouring property owners and if required, 

more broadly with community and specific interest groups 

to minimise potential objections to the project. 

✓✓ Meet with service authorities and related government 

agencies to determine their requirements, including any special 

requirements that apply to public land and alpine resorts. 

Discuss concepts with: 

• Local government. 

• Adjoining landowners and the local 

community as required. 

• Service authorities. 

• Government departments including DSE 

or Alpine Resort Management Board for 

public land. 

Development Approval 

✓✓ Identify the scope of requirements under the planning 

scheme and other statutory provisions for planning permit 

approval, including a pre-application discussion with the 

local government. 

✓✓ Compile a planning application submission that responds to 

the requirements of the planning scheme. 

✓✓ Consider an application for review to VCAT if the planning 

permit application outcome is unfavourable. 

• Planning advisor to arrange pre-application 

discussion with local government. 

• Meet with local government councillors if 

significant local community issues are likely. 

• Obtain advice from planning advisor 

and lawyer regarding VCAT application 

for review. 

Financial Feasibility 

& the Business Plan 

✓✓ Prepare a detailed Business Plan that includes business 

structure, management, marketing and operation. 

✓✓ Include a detailed financial feasibility analysis that contains 

a projection of longer term (say 10 year) cash-flow and 

profitability and considers changes to the project parameters 

with best and worse case scenarios. 

✓✓ Identify the potential staging of the development. 

• Obtain advice from financial advisor 

on Business Plan. 

• Discussions with accountant. 

• Discussions with legal advisor. 

Obtaining Funding 

✓✓ Prepare a detailed financial submission for the consideration 

of financial institutions and financiers. 

✓✓ Consider funding support that is available through State 

and Federal agencies. 

✓✓ Consider equity partners or project sponsors 

(not for profit proposals). 

• Identify potential financiers and identify 

preferred funding arrangements. 

• Meet with Regional Development Victoria 

and other State funding assistance agencies. 

• Contact Federal funding bodies. 

Project Construction 

✓✓ Appoint a construction phase project manager. 

✓✓ Detail the project design and confirm the project cost. 

✓✓ Ensure competitive prices are obtained from builders for the 

construction of the project. 

✓✓ Maintain tight management of the construction program, 

development quality and variations to costs. 

• Appoint construction project manager. 

• Obtain building construction quotes. 

• Refine design and specifications with 

architect to fit budget and quality 

outcome required. 


context for tourism investment 

Victoria’s tourism industry competes on 

a national and international stage. Our 

attractions, experiences, facilities and services 

are assessed by Victorians and visitors alike, 

against those available interstate and around 

the world. Internet access and cheap air 

travel have broadened the options for 

travellers and holiday-makers. The tourism 

market is experienced and discerning. 

Travel by Victorians within Victoria, 

constitutes the largest proportion of total 

tourism visitation in the State. Travel by 

interstate and international visitors within 

the State provides the greatest economic 

benefit to Victoria from tourism. Tourism 

investment decisions must recognise the 

highly competitive nature of the industry 

and the need to provide services that meet 

the needs of all travellers – 5 star to no 

star, indulgence to no frills, for fun and for 

business. Our product offer will be judged 

against a much more diverse range of 

options than in the past. 

Performance & Importance 

Tourism is a key economic activity for Victoria. 

“In 2003/04 tourism and events contributed 

$10.9 billion or 5.3% of Gross State Product 

and employed 159,000 people or 6.6% of 

the State’s workforce. In the same year, more 

than 1.3 million international visitors spent 

more than $2.6 billion in Victoria. ” 1 

In regional Victoria, tourism contributed 

$3.4 billion to the regional economy in 

2003/04 and employed 61,000 people. 

This was 31% of the State’s total tourism 

output and 39% of the State’s total tourism 

employment. 2 

The State Government has invested heavily 

in the tourism industry and since 1999 

nearly $350 million has been invested 

in marketing and product development 

strategies. This investment has been targeted 

towards achieving increased visitor yield 

and also improving visitation to the State. 

Increasing visitor yield requires tourism 

operators to match consumer preferences 

and expectations. Today’s tourists 

increasingly seek better standards of 

service and new experiences. 

Figure 1: expenditure in victoria 

by purpose ($M) 3 

(includes domestic & international expenditure) 

* 

* 

* 

* 

* 

Holiday 6,012 

Visiting friends and relatives 2,505 

Business 1,488 

International education 1,045 

Other 600 

Mantra Deep Blue, Warrnambool. 

1 p. 6, 10 Year Tourism and Events Industry Strategy, Dept of Innovation, 

Industry and Regional Development, October 2006 

2 p. 34, ibid 

3 International and National Visitor Surveys, Tourism Research 

Australia, year ending December 2006 



Tarrawarra Estate, Yarra Valley. Photographer: Peter Dunphy. 

The 10 Year Tourism and Events Industry 

Strategy forecasts that overseas tourists 

are likely to account for 70% of overall 

tourism growth and almost 40% of tourism 

expenditure (currently 30%) by 2016 4 . It is 

expected that the economic importance of 

overseas students to tourism yield will be 

maintained over the next decade. 

“Asia is expected to be the primary sources 

of international growth, with China’s share of 

international visitors likely to increase from 

9% to 19% in that period” 5 . 

The Tourism Strategy estimates, based on 

the continuation of recent growth, by 2016 

tourism and events will be an $18 billion 

industry and one of the State’s leading 

exporters, contributing 7–8% of Gross 

State Product and employing 225,000 

Victorians 6 . 

“The predominant sources of tourism 

expenditure are international and interstate 

visitors, who account for only one third 

of Visitor numbers but two thirds of 

expenditure. Increasing lengths of stay 

(international) and higher spends per night 

(interstate) have driven Victoria’s recent 

growth in visitor expenditure.” 7 

Victoria has particular competitive 

advantages in relation to it’s: 

• Highly creative, consistent and 

well-targeted advertising campaigns. 

• Distinctive range of lifestyle experiences, 

particularly in relation to its art, cultural 

and heritage precincts, shopping, nightlife, 

car touring and boutique food and wine. 

• Compactness and agreeable seasonal 

variations provide year round diversity 

and enhance the opportunities in 

Melbourne and regional Victoria. 

• Internationally recognised cultural, 

sporting and business events. 

• Ability to attract increasing numbers 

of international airlines flying directly 

into Melbourne and increased 

passenger capacity. 

• Tertiary education institutions, which 

attract large numbers of international 

students (who represent approximately 

40% of present international yield). 

4 p. 14, 10 Year Tourism and Events Industry Strategy, Dept of Innovation, 

Industry and Regional Development, October 2006 

5 p. 15, ibid 

6 p. 7, ibid 

7 p. 11, ibid 



Silverwater Resort, San Remo. 

Current Issues 

At the national and international level there 

are several key influences on Victoria’s 

tourism future. They include: 

• Emergence of new markets – growing 

middle class in China, India and other 

parts of Asia (China and India provided 

70,000 visitors to Australia in 1996, which 

has grown by 500% today). To maximise 

benefits from these emerging markets, 

potential local experiences, infrastructure 

and services must meet the cultural 

requirements of these visitors. 

• On-line tourism services available 

through the internet (the information 

source of choice for many travellers). 

Local tourism businesses need to provide 

comprehensive product information to 

enable bookings to be made on-line. 

• Tourist demands and expectations are 

becoming increasingly sophisticated. 

Excellence in service standards is vital. 

There is a growing need for well trained 

and skilled tourism professionals to meet 

future expectations. 

• Convenient access to information and its 

widespread availability can also impact on 

attitudes and preferences when major 

natural, political or economic shocks occur. 

• Low cost air carriers provide a significant 

incentive for consumers to take interstate 

or international holidays. 

• The growing markets around the world 

for specialised tourism niches, including 

nature based and health and well being 

activities and experiences. 

• Global competition in tourism marketing 

is increasing and effective coordinated 

campaigns are required to maintain 

and grow market share. Marketing to 

interstate and intrastate visitors must 

not be neglected if market share is to 

be maintained. 

To ensure a competitive and responsive 

tourism industry in Victoria, the Government 

is committed to: 

• Giving higher priority to the tourism and 

events industry in infrastructure planning 

and investment attraction. 

• Creating a larger and more highly trained 

tourism workforce. 

• Strengthening the on-line presence of 

Victoria’s tourism products and services. 

• Integrating government decision-making 

on economic, social and environmental 

issues in relation to tourism activities. 

• Enhancing the reputation and 

performance of Victoria for 

environmentally sustainable tourism. 

These directions and an action program are 

detailed in the Government’s 10 Year Tourism 

& Events Industry Strategy that was released 

in October 2006. The principal features of 

this strategy are: 

• Building upon existing tourism strengths 

by improving the branding and marketing 

of Victoria; continuing to pursue major 

events and increasing aviation access. 

• Developing new tourism strengths 

by ensuring that public infrastructure 

development takes into account tourism 

requirements; continuing to attract and 

facilitate investment; enhancing service 

skills and standards; and promoting 

greater use of on-line services. 

• Having a focus on long-term tourism 

growth opportunities and in particular 

targeting emerging international markets; 

expanding the acquisition of business 

events; developing regional destinations; 

and building the synergies between 

tourism and international education. 

• Strengthening the partnership between 

Government and industry through 

better coordinated decision-making; 

policy coordination and advocacy; and 

continuing communication of the benefits 

derived from the tourism industry. 

Further information on the key activities in relation to this 

Strategy is provided in Appendix A. 



Peppers Springs Retreat, Daylesford. 

Overview of the 

Tourism Investment Process 

Successful development of a tourism project 

requires a coordinated and sustained process. 

A good idea, a desire to mix business and 

lifestyle in an attractive location or a stunning 

parcel of land may seem a reasonable basis to 

launch a tourism venture. As illustrated (fig. 2), 

realisation of a tourism development requires 

the successful conduct and negotiation of 

several processes to that end. 

The following sections of the Guidelines 

provide details of: 

▶▶ How to take an idea to a realistic 

development concept. 

▶▶ The essential need to identify a market 

for the tourism product. 

▶▶ Selection of a suitable site, fitted to the 

market and to be targeted and suited to 

the concept. 

▶▶ Fitting the concept to the site attributes. 

▶▶ Discussions/consultation that is required 

to inform the project in relation to legal 

requirements and avoid delays through 

community opposition. 

▶▶ The fundamental requirements to 

demonstrate that the project is financially 

feasible and a sound investment. 

▶▶ The procedures to obtain development 

approval for the project. 

▶▶ Considerations in relation to obtaining 

finance and funding the development. 

▶▶ The detailed design, tendering and 

construction of the development. 

Various advisors are essential to this process. 

They may include a project manager, town 

planner, architect, civil and other engineers, 

landscape designer, marketing consultants, 

financial and legal advisors or other specialists. 

Each advisor will play a key role at particular 

stages of the project. Selection of experienced 

and suitable advisors should be undertaken 

with research and careful consideration. It 

is highly desirable to define their scope of 

work with a written brief. Most professional 

associations can provide information on 

potential advisors in these fields. 

Figure 2: tourism investment process 

PROGRESS 

Idea 

Concept 

Consultation 

Feasibility 

Approvals 

Financial 

Arrangement 

Construction 

TIME 



Investment Opportunities 

Strategic studies by Tourism Victoria, regional 

tourism organisations and a number of 

local governments throughout Victoria have 

identified many investment opportunities in 

the State. They include: 

• Visitor accommodation in Melbourne 

and throughout regional Victoria. 

Particular market niches have strong 

prospects including high yield high 

end accommodation, backpacker 

accommodation, bed and breakfast, alpine 

accommodation and cabins. 

• The provision of nature based 

experiences and accommodation, 

particularly supporting experiences in 

the Otway Ranges, Great Ocean Road 

Region, Grampians and East Gippsland. 

Similar facilities can be linked to trail 

networks or special recreation sectors 

such as bike touring, mountain biking, 

fishing and hiking. 

• Food and wine products such as vineyard 

accommodation, cellar doors and facilities 

that showcase regional food. 

• Facilities that utilise Victoria’s extensive 

geothermal and mineral spring resources 

such as day spas and health resorts. 

• Aboriginal cultural heritage interpretation 

and experiences. 

• Golf based tourism and recreation 

establishments. 

• Water based attractions. 

Tourism Victoria’s web site provides details 

of plans and related research that describe 

current investment opportunities that 

support the strategic directions for Victoria. 

TABLE 1: plans and strategies 

that identify tourism investment 

opportunities in victoria 

• Victoria’s Regional Tourism Action Plan 

2008–2011 and earlier Regional Tourism 

Development Plans 2004–2007 for all 

Regions 

• Concept Proposals for Tourism 

Development in Victoria 2005 

• Investment Guidelines for Wine Tourism 

• Victoria’s Spa & Wellness Tourism 

Action Plan 2005–2010 

• Victoria’s Geothermal & Natural 

Mineral Water Tourism Investment 

Opportunities 2007 

• Victoria’s Nature Based Tourism 

Strategy 2008–2012 

• Victoria’s Aboriginal Tourism 

Development Plan 2006–2009 

• Alpine Resorts 2020 Strategy 

The Buckland Studio Retreat café, Buckland Valley. 




market identification 

Mt Zero Olives. Photographer: Helen Hiscocks. 

If we build it, will they come? The likelihood 

of a positive response and subsequent 

action to invest must be based on a sound 

understanding of the magnitude, nature and 

characteristics of the market. A creative 

tourism concept must have access to its 

intended market and be executed in a 

manner that meets that market’s expectations. 

A thorough analysis of the market opportunity 

is the essential starting point to develop and 

test an investment concept. 

Opportunity Identification 

The identification of a likely market, the 

prospects for market growth and their 

critical price point (willingness to pay) 

underpins the creation of a concept 

for the project. 

“ 

Is there likely to be 

demand for this tourism 

idea? What is the number 

and characteristics of 

Visitors who might want to 

come to or use this facility? 

” 

Broad analysis should be carried out to 

initially scope an opportunity. This can occur 

through informal discussion and observation, 

coupled with basic research – web based 

tourism data, real estate data, operators in 

complementary fields, visitor information 

centre resources and similar areas. 

Opportunities may be defined through 

research into comparable geographic areas, 

from social and demographic trends or 

through data on economic or environmental 

change. Consider whether existing tourism 

facilities in the locality are performing to an 

optimum level – if not, what factors might be 

contributing to that performance. 

Table 2: MARKET ESSENTIALS SNAPSHOT 

Identify potential market opportunities 

within the region: 

• Are there gaps in the current provision 

of services or facilities? If so, why? 

• Are there consumer trends that 

have not been recognised through 

development in the region? 

• Are there strategic alliances that 

haven’t been developed or are 

underdeveloped? 

• What is the delivery of complementary 

market products in the region? 

• What are the asset strengths of the region? 

• Identify what is driving tourism activity 

and demand in the region. 

• Are there particular market segments 

for which the locality has appeal? 

• Are there special interest groups that 

are not catered for? 

Market Intelligence & Data 

Your market assessment must be based on 

a well-founded analysis of the supply and 

demand for the product. It must assess 

questions like “What are the trends local, 

interstate and overseas?”, “What are the 

drivers for this product and what local 

characteristics does it hope to harness?”, and 

“Can the product be distinctively branded?”. 

For example, ecotourism is growing in 

popularity on a global basis. Australia 

has world-wide appeal for nature based 

experiences. Nature based tourism 

experiences appeal particularly to 

international tourists and travellers with 

higher education levels. Higher levels of per 

capita average expenditure are generally 

recorded for ecotourism trips. 

Specific data on the ecotourism market 

can be obtained through the World Tourism 

Organisation, The International Ecotourism 

Society, Tourism Research Australia and 

Tourism Victoria. Victoria’s Regional Tourism 

Action Plan 2008–2012 identifies target 

markets and local development opportunities 

including nature based activities. 

Key data sources include the International 

Visitor Survey, National Visitors Survey and 

Destination Visitor Survey series produced 

by Tourism Research Australia. The majority 

of regional and State data is available for free 

on Tourism Victoria’s corporate website and 

includes regional and market profiles. 

Generally there is a time lag between the 

collection and publication of secondary data. 

It varies according to the nature of the data 

collected and it’s utility. There is a need to 

refine historic analysis with more current 

information and indicators for the future. 

Local government may be able to 

provide data on existing approved tourist 

development, not yet commenced or 

proposals being considered. Similarly the 

identification of infrastructure projects 

committed or planned will assist with an 

appreciation of public sector priorities that 

may impact on potential tourist activity. 

Local government is also frequently 

the organiser or coordinator of major 

festivals and events in the locality. Data on 

programmes, attendance, target markets 

and plans for future development of these 

events may be of particular value. Where 

traffic data is available this can provide an 

indication of local activity trends and should 

be considered in the context of activities in 

the locality/region that may be contributing 

to observed traffic volume changes. Traffic 

data also provides an indicator of passing 

trade exposure and opportunities. 



The examination of this information should 

aim to provide an indication of the nature of 

the project opportunity, its target markets, 

potential scale and principal components. 

table 3: KEY DATA SOURCES 

Tourism Research Australia 

www.tra.australia.com 

• International Visitor Survey 

• National Visitors Survey 

• Destination Visitor Surveys 

Australian Bureau of Statistics 

www.abs.gov.au 

• Overseas Arrivals and Departures 

• Survey of Tourist Accommodation 

• Tourism Satellite Account and others 

Tourism Victoria 

www.tourismvictoria.com.au 

• Regional Market Visitation and Profiles 

• Market Segment data 

• Visitor statistics for international, domestic 

and regional markets and others 

Royal Automobile Club of Victoria 

www.racv.com.au 

• Accommodation listing 

Market Feasibility 

A market feasibility study assesses the demand 

for a project. While the preliminary market 

data assessment may indicate an opportunity 

or gap in the market, a full market analysis is 

required to prepare a detailed project concept 

for financial evaluation. 

The market feasibility study will: 

• Confirm and quantify potential markets 

• Assess the characteristics and requirements 

of markets. 

• Provide an analysis of the anticipated long 

term performance of the project in the 

market place. 

• Identify any barriers to successful 

establishment and operation of the business 

(local image or reputation, labour and skills 

availability, goods supply limitations etc). 

The primary elements in this assessment are 

existing product demand and supply, current 

performance and level of utilization, direct 

competitor performance, anticipated change 

in supply and demand, initial and longer-term 

performance of the proposed tourism product. 

Data on existing supply and demand will 

be of variable availability, quality and detail 

and will depend on the nature of the 

business proposed. 

For example, data is available on 

accommodation establishments on a 

monthly basis for establishments with 

5 or more rooms. It provides an overall 

indicator of visitor trends, seasonal variation 

and the performance of particular types 

of accommodation establishments. Local 

government may have more generalised 

visitor activity data and also particular 

statistics associated with attractions, festivals 

or events in a locality. The challenge is to 

identify data that informs an understanding 

of the size of a specific market segment, how 

it is provided for at present, its potential to 

increase and the price that consumers will 

pay for the service or attraction. Secondary 

data may not provide sufficient insight to 

the potential performance of a concept 

and it may need to be supplemented 

with primary research into matters such 

as visitor characteristics, travel patterns, 

expenditure, motivation for and purpose of 

travel, performance of identified competitors 

and the like. Market research or tourism 

specialists should be contacted in relation to 

the conduct of surveys and analysis of data. 

The market feasibility will also examine the 

external factors influencing current demand 

and likely to influence future demand 

including the focus of marketing at National, 

State, regional and local levels, infrastructure 

development that will for example, enhance 

the attractiveness of a locality, its accessibility 

or improve the cost of operations. 

Market Penetration 

The broad market statistics will lead to an 

assessment of market size. The critical issue 

is to estimate the likely penetration, ie. the 

proportion that can be attracted to the new 

product. A realistic determination should 

inform on the scale of the facility and its 

supporting elements. 

These estimates may be derived from 

examining comparable facilities (relating daily 

visitation/occupancy to scale), examining the 

size of market segments and estimating share 

on a daily basis, consideration of the features 

or characteristics of the new product that 

will increase or impact on market share and 

consideration of competition for market 

share in the locality and what might be a 

reasonable proportion of that market likely 

to be captured by a new facility. 

Lyall Hotel, South Yarra. Photographer: Mark Chew. 



Novotel Melbourne on Collins. 

Mantra on Russell. 

The assessment of market penetration 

should be critically reviewed to evaluate its 

reasonableness. It is not a question of taking an 

arbitrary percentage; rather it assumes a realistic 

look at what actions will be taken to give the 

product an identity and to capture market 

share. Is it consistent or in contrast with the 

expected product quality in the locality? 

Competition & Alliances 

Existing developments need to be assessed as 

to their performance as a competitor and as 

a potential ally in capturing visitor interest. The 

presence of existing operators of a similar kind 

of business in a locality can create a critical mass 

and enhance the reputation and attraction of 

that area for that particular service, eg. bed and 

breakfast operations, fishing or boating tours, 

farm stays, golf courses and day spas. 

Analysis of the nature and performance of 

competitors will provide an indication of the 

market segments visiting an area, volume 

of business and yield. It will also provide an 

indication of prevailing standards of quality and 

service and assist in the definition of a point of 

difference for a new venture. 

The existence of other businesses in 

complementary fields in a locality can 

strengthen the total offer of a new business 

through the establishment of alliances, linkages 

and joint marketing. Research with existing 

operators will help to expand the possibilities 

for a new business. 

Positioning / Brand 

Establishing the image and position in the 

market of a new venture is a crucial step. 

Key motivators of consumer choice are a 

product’s image associations and confidence 

in a brand. Being part of an established 

brand brings with it market recognition, 

reputation and expectations of certain 

standards. Establishing an entirely new 

brand requires creativity in order to make it 

memorable. It demands a careful analysis of 

what will appeal to your target market and 

what local strengths might be harnessed. 

Identification of the aspirations and values 

of the market segments to be targeted 

is critical to deciding on the quality and 

content of the venture. The development 

of establishments with well-known or 

internationally reputed brands provides 

status to a locality – a region, a town or a 

city precinct. New brands should take into 

account the profile and market segment 

appeal of existing operations. Is the 

prevailing market attracted to a locality likely 

to support the proposed product image or 

position or will development of new markets 

be required? 

Branded accommodation has many 

advantages over independently operated 

properties. Branding accommodation 

requires payment for a licence (for a specific 

period of time) to trade under a particular 

brand’s name and use the associated name 

or logo. Branding is a way of distinguishing 

products from competitors. The benefits of 

aligning with a particular brand include: 

• Centralised reservation system – easier 

for consumers to make a reservation. 

• Collaborative marketing – global 

marketing/promotional alliances to 

broaden exposure in the market 

(through brand recognition). 

• Brand image and reputation – 

identification of product and expectation 

of standards. 

• Managerial expertise – assures 

hotel investor of the strength of the 

management of the hotel and provides 

consistent quality and service with 

administrative guidelines. 

• Access to higher level of demand and 

lower costs – able to generate demand 

through brand loyalty. 

• Financing opportunities. 



Market Assessment Risks 

The market assessment includes an appraisal 

of historic and contemporary performance 

of a locality and information on indicators 

of future performance. Projections on 

future performance are predicated on a 

range of assumptions. The analysis of future 

performance should be supported by an 

assessment of the factors that may impact 

on those projections. 

The assessment should include alternative 

growth scenarios and enable the financial 

assessment to take such alternatives 

into account. 

The factors that influence targeted markets 

and the likelihood of change in market 

opportunity need to be examined, eg. 

improved air access to competitor destinations 

and allowances made in the assessment. 

The assessment must also consider the 

establishment and development phases 

as well as ‘normal’ operations. Internal 

and external factors that will influence 

performance of the business over time 

need to be considered in the assessment. 

The likelihood of change occurring in such 

factors represents the level of risk in relation 

to the assessment of demand. 

Project Market Parameters 

The analysis conducted should provide: 

• Identification of target market segments 

• Assessment of market penetration with 

estimates for the product of annual 

demand and identification of any seasonal 

variation (with monthly estimates 

desirable to address seasonality). 

• Likely expenditure per capita on the 

services to be provided 

• The sensitivity of the product price 

• Estimates of growth over time based on 

various assumptions in relation to internal 

or external change. 

The analysis should provide a clear basis 

for the design of the concept – what it 

will contain, scale, complementary facilities, 

quality, image, setting and location. 

Preparing Market Assessment Studies 

Specialist consultants should preferably be 

engaged for market and financial analysis. 

Such experts may include market research 

and development consultants, appropriately 

qualified accountants, and specialist tourism 

business consultants. General advice can 

also be obtained at minimal or no cost from 

financial institutions and from organisations 

listed in Appendix C. 

RACV Cape Schanck Resort, Mornington Peninsula. 



CASE STUDY 1 

sea melbourne 

Charter hire catamaran with capacity for up to 150 passengers. 

Business provides pre-booked cruises of Port Phillip Bay for 

corporate functions, weddings, parties. 

Docklands, Melbourne 

For more information go to: 

www.cruisevictoria.com.au 

Success Factors 

• Market research indicated that there was a gap in the provision of this type of service in Melbourne. 

• Investor had a sound working knowledge of boating operations and chartering for fishing. 

• Significant research conducted into the design and construction requirements for the vessel, 

which enabled it to be delivered on time and within budget. 

• Existing development in Victoria Harbour and its promotion by the State Government as a tourist 

destination provided an opportunity for high visibility and accessible base of operations. 

• Delivery of a high quality service has been a priority with the benefit of significant additional business 

through word of mouth recommendations. Internet marketing has also been effective. 

• Approvals processes require persistence, careful planning and good research. 

• Important for investors to be familiar with financing and tax issues in order to gain optimum benefit 

from advisors. 


CASE STUDY 2 

DOHERTY’S BALLARAT LODGE 

& CONFERENCE CENTRE 

Ballarat Lodge is an accommodation and conference complex located 

in Ballarat, opposite the nationally significant tourist attraction of 

Sovereign Hill. The 4½ star lodge provides 71 rooms and conference 

and meeting facilities that cater for 1,200 people. Other facilities include 

two restaurants, a bar and a health and beauty spa. Located in a major 

regional centre, this complex services an extensive regional population 

and is conveniently located within 75 minutes drive from Melbourne. 


• A limited conference facility existed on this site when acquired by the current operators. A major 

opportunity for the expansion of this market was identified due to a limited level of competition in the 

region, excellent access to a major market in Melbourne and strong growth identified in the business 

sector. The opening of the facility has since provided access to a larger event and function market in the 

region than was originally projected. 

• The success of the conference centre has been in part due to its flexible design and versatility for a wide 

variety of events and functions and incorporation of high end audio visual technology and comprehensive 

kitchen facilities. 

• The comprehensive range of facilities on the site has provided access to diverse market segments – 

business, leisure, health, education and local. 

• The approvals process benefitted from local government assistance in relation to the lease of a portion 

of local government land. Successful consultation with local objectors enabled an extended approvals 

timeframe to be avoided. 

• Continued direct marketing is important in the conferences and events market. 

• Delivery of a high quality product at a competitive price has facilitated strong repeat business. A high level 

of staff retention with the required skills and outlook has been an important factor in this success. 

• Capacity to leverage off the existence of an established attraction in Sovereign Hill. 

Ballarat 


www.dohertyhotels.com.au 


concept development 

Figure 3 

Market Exposure and Access 

Mildura 

Portland 

Mildura 

Airport 

8 

Port 

Fairy 

11 

Horsham 

Swan Hill 

7 

Daylesford 2 

Ballarat 

Melbourne 

Airport 

Marysville 

Healesville 

MELBOURNE 

Avalon Airport 

1 3 

Geelong 

6 

Traralgon 

Queenscliff 

Warrnambool 

4 

Sorrento 

Lorne 

Port 

Campbell 

5 Phillip Island 

Apollo 

Bay 

Bendigo 

1 Melbourne 

2 Daylesford & The Macedon Ranges 

3 Yarra Valley & Dandenong Ranges 

4 Mornington Peninsula 

5 Phillip Island 

6 Great Ocean Road 

7 Goldfields 

8 Grampians 

9 Victoria’s High Country 

10 Gippsland 

11 The Murray 

Albury 

Airport 

Yarrawonga 

Echuca 

Rutherglen Albury Wodonga 

11 

Wangaratta 

Beechworth 11 

Nagambie 

Lake Eildon 

9 

Wilsons 

Promontory 

Bright 

Falls Creek 

Sale 

10 

Bairnsdale 

Gippsland 

Lakes 

Lakes Entrance 

Mallacoota 

travel time and distance 

locaTION DISTance (km) time (hrs) 

Melbourne to: 

Albury Wodonga 321 4 

Apollo Bay 194 3 

Bairnsdale 281 4 

Ballarat 115 1.5 

Beechworth 283 3.5 

Bendigo 150 2 

Bright 324 4 

Daylesford 114 1.5 

Echuca 230 3 

Falls Creek 385 5.5 

Healesville 65 1 

Horsham 301 4 

Lake Eildon 213 3.5 

Lakes Entrance 317 4.5 

Lorne 139 2 

Mallacoota 515 7 

Mildura 543 7 

Nagambie 135 1.5 

Phillip Island 142 2 

Port Campbell 226 3 

Port Fairy 300 4 

Portland 371 5 

Queenscliffe 105 1.5 

Rutherglen 292 3.5 

Sale 313 3 

Sorrento 112 2 

Swan Hill 336 4 

Traralgon 163 2 

Wangaratta 250 3 

Warrnambool 272 3.5 

Wilsons Promontory 215 3 

Yarrawonga 281 3.5 

Selection of a site for investment requires 

consideration of the physical area and setting 

that are required for the project, but also 

the regulatory requirements that must be 

satisfied for approval. Local government 

plays a major role in decision-making and 

the achievement of successful outcomes. 

Site Selection (where to locate?) 

The identification of a suitable site for 

a tourism development needs to take 

into account: 

• The site’s location in relation to the 

businesses potential market. 

• The setting of the site and the 

surrounding development context. 

• The particular characteristics of the site. 

Site choice must consider both macro 

and micro factors. 

Site Macro factors 

A large population base in close proximity 

to a site provides a significant market 

opportunity for the project. Sites within 

major centres or within easy access 

will potentially benefit from this market 

exposure (generally within 2 hours drive 

from Melbourne or 30 minutes to an hour 

from a provincial centre). 



Proximity to a major population centre 

also brings with it the benefits of better 

access to labour and skills, cheaper goods 

and materials, more diversity in the services 

available and generally a higher order of 

available site infrastructure – water, sewerage, 

energy, and communications (fig. 3). 

The most suitable site for a particular type 

of tourism investment will vary according 

to the image desired and nature of the 

business. The type of businesses or land uses 

in the surrounding area should complement 

the project, eg. accommodation to support 

an attraction, cafes/restaurants to support 

accommodation, parkland/open space 

near cultural/heritage establishments. A 

resort-based project will benefit greatly 

from a dramatic or unique setting, or one 

providing privacy or seclusion. The presence 

of industrial development nearby or a poor 

quality urban environment will detract from 

the image sought for the establishment. 

Views to or from the site, attractive or 

identifiable vegetation or topography and /or 

close proximity to a water body (pond, lake, 

creek, river coast) will enhance the site. 

The local climate and micro-climate of the 

site will influence both its use and design. 

From which direction are the prevailing 

winds? What are the minimum and 

maximum seasonal temperatures? How 

much sun exposure and rainfall? Will shaded 

or weather protected areas be required? 

The design will need to address these factors. 

Similar establishments in the locality may 

be seen as competitors but they also bring 

the benefits of the development of a critical 

mass of businesses that enhances the 

market’s awareness and exposure to that 

particular product. It also brings the potential 

for collaborative marketing and greater 

opportunities for passing trade, for example 

Daylesford is known for spa tourism. 

A major highway / main road location 

is highly desirable for accommodation 

establishments. Travellers expect to be 

able to find a bed on the main road. Main 

road locations provide essential visibility 

and passing trade exposure for a variety of 

businesses. In regional areas constructed 

(bitumen sealed) roads prove generally 

more acceptable for travellers, while the 

product at the end of a gravel road or 

track will have to work harder to ensure 

that the trip is worthwhile. Consider 

road traffic volumes and the split in the 

traffic between locals / business / trucks 

/ visitors when evaluating the benefits of 

alternative sites. Good pedestrian access 

may also be essential for some businesses. 

Is the site within walking distance of other 

potential tourist destinations such as a public 

transport terminal or shopping precincts? 

Site Micro Factors 

While there are numerous external factors 

to consider in selecting a site, it must also be 

suited for the intended purpose. 

The site needs to be large enough to 

contain the full range of development 

envisaged – allow for growth, consider the 

preservation of any beneficial features, allow 

for convenient access and site circulation, 

the provision of on-site car parking and also 

landscaping may be required. 

Experts may be required to advise 

whether there are attributes on the site 

of environmental, archaeological, heritage, 

cultural or scientific interest. The existence 

of a heritage building on the site may 

provide identity, character and a thematic 

base. There may also be heritage obligations 

regarding alterations to a building or site 

that need to be satisfied. Sites near the 

coast or water bodies are highly likely to 

be of importance in relation to Aboriginal 

cultural heritage. 

table 4: site considerations for 

particular development 

• Visitor Accommodation – 

Market exposure, visibility, access. 

• Resort – Special setting, 

distinctive site character. 

• Attraction – Market exposure, access, 

size of site. 

• Bed & Breakfast – special character, 

sense of privacy, access. 

The environmental state of the site also 

needs to be taken into consideration. 

For example, is the site contaminated 

from a previous industrial use; is it subject 

to flooding; does it contain acid sulphate 

soils; or is it subject to geotechnical risks 

(subsidence, slumping, slope failure and 

the like). It is essential to assess whether 

there will be extraordinary development 

costs, eg. special foundations or earthworks 

are required, or if there are significant 

constraints on parts of the land, eg. periodic 

flooding in relation to tidal peaks or from 

nearby drainage lines. 

There is also a range of non-physical site 

factors that must be identified such as 

planning scheme zoning (what are the 

land uses permitted and the requirements 

for development – see next section), title 

particulars (lease, freehold, encumbrances 

or restrictions), land value and local 

government rates. Whether the site or 

proposed use may be able to access any 

government incentives, eg. heritage grants, 

tax concessions or rate reductions, needs 

to be ascertained. 




Otway Fly Treetop Walk. 

Figure 4 : site analysis (example) 

Source: Meinhardt Infrastructure & Environment and 

MGS Architecture Planning Interior Design 


The preparation of the concept design is 

informed by the market assessment and the 

site evaluation. The site has been selected 

on the basis of the functional requirements 

of the project and the market to be served. 

Fitting the project to the site in an optimal 

manner requires an examination of the site 

opportunities and constraints. Site analysis 

(fig. 4) – mapping of the site micro factors 

as outlined will identify parts of the site well 

suited to arrival and principal building areas, 

service areas, access points and potential 

conflict zones, conservation areas, screening 

or landscaping zones. 

Site analysis should identify: 

• Topography 

(high points, steep land, flatter areas). 

• Drainage lines and susceptibility to flooding. 

• Vegetation type and quality. 

• Soil type and quality. 

• Wetlands or other areas of significant 

environment value. 

• Views to and from the site. 

• Suitability of roads that provide access 

to the site and access points onto the site. 

• Location of existing services (water, 

electricity, gas, sewerage, telecoms) 

and any extensions required. 

• Aboriginal and post-settlement 

heritage assets. 

• Unstable or erosion prone land. 

• Climatic effects (wind exposure, shade 

and sun exposure, precipitation). 

• External impacts (traffic noise, signage, 

night lighting, surrounding land uses). 

• Existing buildings on the site and their 

suitability for the proposed purpose 

or conversion. 

• Neighbouring buildings and land uses 

and in particular buildings used for 

residential purposes. 

The site analysis should provide a summary 

of the site opportunities and constraints. 

The concept should take advantage of the 

opportunities available (for example, attractive 

views from parts of the site, areas of flatter 

land that is less costly to develop, parts of the 

site that may be conveniently and efficiently 

serviced, areas of attractive landscape) and 

avoid or minimise the development of the 

parts of the site that are constrained by 

areas of high environmental or heritage value, 

unattractive outlook, steep or potentially 

unstable land and similar factors. 

From the mapping of these constraints 

and opportunities a number of development 

options for the site may be developed. 

A ‘high level’ evaluation of these alternatives 

should consider the overall project objectives, 

development costs (including the provision 

of on-site services), external impacts and 

relationships, staging and meeting market 

requirements. 



A matrix may be developed, for example 

that evaluates each option against criteria 

established for the project. Consider whether 

some criteria should be given greater 

importance (weighting) as part of this process. 

Determinaton of a building envelope or 

development area from this process should 

include a functional layout of the activities 

within the building, described for each level 

as they may vary. The functional layout will 

consider the scale and location of each part 

of the building and how it relates to other 

components, eg. point of entry, reception, 

access to public areas (such as restaurants and 

bars), access to private areas (accommodation), 

kitchens, service areas and administration areas. 

The functional layout should also address 

external relationships such as the protection 

of areas susceptible to amenity impacts, visually 

exposed parts of the site and unattractive 

neighbouring site attributes. The planning 

scheme requirements in relation to siting and 

works requirements should be addressed in 

the resolution of the project’s functional layout. 

Professional advice from town planners, 

landscape architects, architects, engineers 

and quantity surveyors would be advantageous 

to these processes. 

The architectural advisor should play a major 

role in the creation of the initial preferred 

conceptual layout for the project. Following 

the resolution of this fundamental layout, 

the architectural design concept can be 

developed. This will include detailed and three 

dimensional consideration of the bulk and scale 

of the buildings, overlooking, overshadowing 

and other neighbouring amenity factors, 

architectural style and local character, car 

parking, on-site and off-site public spaces, entry 

and identity, signage and landscaping theme. 

The concept design will require refinement 

through consideration of the project objectives 

and discussion on the proposal with the approval 

authorities, particularly local government. 

From these processes, resolved concept design 

plans should be produced that include as a 

minimum, site layout (including any demolition, 

excavations or earthworks and vegetation 

removal), building layout (for each level), 

elevations of buildings and additionally include 

proposals for materials and finishes, site parking, 

service operations, signage and landscaping 

as may be applicable. These plans will form 

the basis for seeking development approval 

for the project. A preliminary cost should 

be estimated for the project at this stage to 

ensure that it is within the set budget range. 

Milawa Cheese Factory. Photographer: Mojo Partners. 

Figure 5: preparation of concept design 

Site Data 

Site Analysis 

DEVELOPMENT OPTIONS 

Functional Layout 




table 5: tourism projects by the ‘not for profit’ sector 

Considerations for the establishment 

of a tourism project by ‘not for profit’ 

organisations. 

Creation of the Concept 

• Is the project consistent with the 

organisation’s principles and objectives? 

• If it is based on a collection, how eclectic 

is the appeal of that collection? 

• What is the principal theme and what 

thematic interpretation will be used to 

unlock the stories? 

• Research the experiences of other 

organisations with like concepts – identify 

the factors for success and potential pitfalls. 

• How big is the market attraction – the 

specialist enthusiast, the connoisseur or a 

broader market? 

• Does the theme of the attraction/project fit 

the location? 

• An asset obtained for little or no cost may 

require high levels of capital to upgrade it or 

make it fit for use and substantial continuing 

maintenance expenditure. 

The Incorporation Phase 

• Obtain advice on the various forms of 

incorporation available and assess the 

statutory requirements. 

• Are there ‘champions’ of the project and 

are they committed long term? Are they 

prepared to demonstrate that commitment 

through donations and /or support for fund 

raising processes? Is the project likely to be 

attractive to partners on a ‘sponsorship’ basis? 

• Is the project likely to meet criteria for 

government financial support? 

• Are there impediments to the project gaining 

‘Tax deductibility Gift Recipient’ status? 

• Assess the availability and cost of Public Risk 

and Product Liability insurance for the project. 

• Assess the availability of Volunteers and 

the demands the project might make in 

terms of training, volunteer leadership and 

communication. 

The Business Planning Phase 

• Ensure the Business Plan contains a credible 

rationale for the projections of Visitor 

numbers and revenue. 

• What is the level of likely profitability? 

Will it be profitable or at least cash positive? 

• Is the project likely to be independently 

financially sustainable or will it require 

on-going subsidy to meet operational costs 

and depreciation, asset replacement costs 

or upgrades? 

• Prepare a Risk Assessment Plan to identify 

potential financial risks and responses. 

• How will the project be marketed? 

Are there linkages available to other 

marketing programs? 

YHA Eco Beach, Apollo Bay. 

Role of Local Government 

The local government for the locality of 

the project plays a key role in providing 

information that will assist the preparation of 

the concept and later, approval of the project. 

There are several areas of local government 

management that can assist the preparation 

of a development concept. 

Local governments commonly have 

economic development groups – persons 

who are responsible to promote the 

investment opportunities within local 

government and facilitate investment. The 

economic development group may be 

able to provide statistics on development, 

information on new projects in the pipeline, 

advice on areas where certain investment 

opportunities are being promoted, 

employment profiles, demographic 

information, real estate information and 

contacts in State or regional agencies where 

further useful information and financial 

assistance may be obtained. 

Local government often carries out tourism 

management and promotion and many 

run Visitor Information Centres. Local 

government may be able to provide advice 

on marketing campaigns, visitation statistics, 

visitor profiles, market performance, 

significant and competitor attractions, 

regional linkages and strategic plans for 

tourism in the local government or region. 

Local tourism groups work closely with local 

operators and also with regional bodies and 

Tourism Victoria. 



Before the development concept is resolved 

it is essential that preliminary discussions are 

held with the town planning department of 

local government. This is generally referred 

to as the ‘pre-application’ phase and the local 

planning department will be able to provide 

advice on: 

• Specific information requirements that 

must be provided with the application for 

a permit. 

• Information about the site and the 

relationship of the development to the 

surrounding land uses. 

• Identification of relevant policies of the 

local government in the planning scheme 

that must be addressed and assistance 

in the interpretation of those policies to 

enable a suitable response to be made as 

part of the application. 

• The particular controls in the planning 

scheme that will affect the proposal and 

which will need to be addressed in the 

application. 

• The identification of local issues that need 

to be considered in the development of the 

concept and any external or community 

consultation that should be undertaken 

before the concept is finalised for approval. 

• The possible need for an Environmental 

Effects Statement (EES), a Cultural Heritage 

Management Plan (CHMP) or other 

specific statutory process. 

• Identification of Referral Authorities and 

other organisations to be contacted at 

the concept stage, eg. the Department 

of Sustainability and Environment, water 

and sewerage authorities, VicRoads, Liquor 

Licensing Victoria, Victorian Casino and 

Gaming Authority etc. as appropriate. 

• The time frame for the approval 

procedures to be carried out and steps 

in the process where the ‘clock stops’ 

in terms of the statutory time limits for 

approval. 

The local government infrastructure or 

engineering department should be contacted 

to identify issues relating to roads, drainage, 

street tree planting, site access and similar 

matters. Discussions with this department 

will generally provide more specific technical 

information that will assist in the concept’s 

refinement. Information may also be provided 

in relation to compliance requirements for 

other legislation, eg. Health registration. Local 

government engineering departments are 

not responsible for services such as water, 

electricity, gas and sewerage (in most instances) 

but will be able to assist in directing enquiries 

to the local providers of these services. 

table 6: role of local government in relation to tourism projects 

Corporate Plan 

• Provide a strategic direction for tourism in the 

local government’s principal policy document. 

Economic Development 

• Identify investment opportunities, provide 

local economic and social data and identify 

opportunities for assistance and facilitation. 

• Economic development strategies for 

local government areas should address 

the interrelationship between tourism and 

other economic sectors, and their impacts 

on existing infrastructure; and explore 

opportunities for increasing economic benefit 

through improved linkages within other parts 

of the local and regional economy. 

Tourism 

• Provide data on tourism activities, conduct 

marketing campaigns, prepare tourism 

development strategies, monitor visitation 

and collect data. 

• Foster the establishment and facilitate the 

operations of local tourism organisations 

and interests. 

Planning 

• Local planning policies or zoning may provide 

specifically for tourism development. 

• Local government should link the Regional 

Tourism Action Plans 2008-2011 into their 

MSS or Local Planning Policy Framework. 

• Identify tourism development objectives 

and policy guidelines within strategy plans to 

influence the development and assessment 

of tourist proposals, and for use in marketing 

local tourism development opportunities. 

• Local government can actively encourage 

appropriate tourism development, by 

identifying precincts or individual sites 

appropriate for tourism development. 

• Facilitate consultation between project 

proponents and stakeholder (particularly 

communities). 

• Provide advice on statutory controls, 

information requirements and time frames. 

Infrastructure & Engineering 

• Provide information on requirements for 

roads, drainage and related infrastructure 

and provide details of proposed public 

works and related approvals. 

Other tourism related initiatives of local 

government might include: 

• Offering rate reductions or other financial 

assistance to attract investment likely to 

generate long-term economic benefits for 

the local government. 

• Conducting seminars for developers to 

identify opportunities on particular sites 

or precincts, and outlining available local 

government assistance, eg. provision of 

professional or design expertise. 

• Financial incentives. 

It is critical that decision making by local 

government in relation to tourism projects be 

effectively internally coordinated. 


CONCEPT DEVELOPMENT 

sustainable building design and construction 

Why is it Important? 

According to the Green Building Council, 

buildings consume one third of the world’s 

resources; they use 42% of Australia’s energy; 

12% of our water demand is consumed by 

buildings; up to 40% of waste going to landfill 

is from construction and deconstruction 

activities (predominantly the churn of 

refurbishments); and 40% of Australia’s air 

emissions are from buildings. 

With the exception of hospitals, tourism 

accommodation can have the greatest 

environmental impact of any commercial 

buildings: it consumes energy, water and 

other resources 365 days a year. Support 

services such as laundries, restaurants, 

swimming pools, energy-intensive heating 

and cooling systems, gardens and other 

recreational facilities consume large amounts 

of resources. 

Importantly, a number of recent international 

studies indicate a growing consumer 

awareness and concern of the environmental 

impacts of tourism. For instance, an April 

2007 TripAdvisor survey of more than 1,000 

travellers worldwide found that: 

• 40% take environmentally-friendly 

tourism into consideration when making 

travel plans; 

• Just over a third (34%) said they would 

pay more to stay at an environmentallyfriendly 

hotel. When asked to specify how 

much extra they would be prepared to 

pay for ‘green’ accommodation, 25% said 

they would pay a 5-10% premium, and 

12% would pay a 10-20% premium. 

For investors and developers that are 

prepared to develop and promote 

environmentally sustainable tourism, 

there are obvious benefits. 

Benefits of Sustainable Buildings 

Sustainable buildings generally incur a small 

green premium above the costs of standard 

construction. But green buildings deliver a 

suite of financial and environmental benefits 

that conventional buildings do not. These 

benefits, such as energy and water savings, 

should be looked at through a whole of 

life or life cycle cost methodology, not just 

evaluated in terms of upfront costs. 

From a life cycle savings evaluation it is 

documented that savings from investment 

in sustainable design and construction 

dramatically exceed any additional 

upfront costs. 

International research has found that the 

average construction cost premium for 

green buildings is almost 2% – substantially 

less than is generally perceived. Increasingly 

the small green premium above the costs 

of standard construction is covered in high 

resale value of the asset, as a result of lower 

operating costs of sustainable buildings. 

Other Benefits include: 

• Net savings from lower running and 

maintenance costs; 

• Improved corporate image through 

a demonstrable commitment to the 

environment; 

• Lower carbon dioxide (CO2) emissions 

thanks to efficient energy use and the use 

of renewable energy technologies where 

this makes design and business sense; 

• Better opportunities to let or sell in a 

competitive market; and 

• Enhanced occupant comfort, improving 

productivity. 

Sustainable Design and 

Construction Principles 

A building’s life spans its planning, design, 

construction and operation; and its ultimate 

re-use or demolition. In the accommodation 

sector, often the entity responsible for design, 

construction, and initial financing of a building 

is different from those operating the building, 

meeting its operational expenses and paying 

employee salaries. 

As a result, decisions made at the first phase 

of building design and construction can 

significantly affect the costs and efficiencies 

of later phases. 

In a general context, sustainable design and 

construction principles for future tourism 

developments should: 

• Take into account the climate; 

• Be subordinate to and aesthetically 

sympathetic with the natural environment 

and cultural context; 

• Reinforce and exemplify environmental 

responsiveness; 

• Enhance appreciation and awareness of 

the environment; 

• Minimise pollution of soil, air and water; 

• Use renewable indigenous building 

materials wherever possible; 

• Increase efficiency in the use of materials, 

energy and other resources; 

• Use life-cycle analysis in decision 

making about material and construction 

techniques; 

• Minimise the consumption of resources, 

especially non-renewable ones; 

• Maximise the use of materials with low 

embodied energy; 

• Identify opportunities for re-use and 

recycling; and 

• Identify opportunities for water 

conservation and re-use. 

Tips for Sustainable Design are detailed 

in Appendix B. 

Further information regarding sustainable developments 

can be obtained from The Green Building Council Australia 

(GBCA), The Royal Australian Institute of Architects (RAIA) 

and the Australian Sustainable Built Environment Council 

(ASBEC). (see contacts Appendix C). 


CONCEPT DEVELOPMENT 

sustainable building design and construction 

RACV Inverloch Resort, Inverloch. 

Case Study – RACV Inverloch 

As part of its commitment to environmental 

outcomes in the conduct of its business 

and to assist members to reduce their 

environmental impact, the RACV has 

developed and applied environmental design 

criteria to its building, construction and 

refurbishment projects. 

RACV’s new holiday facility at Inverloch has 

been designed to maximise the site’s natural 

attributes. The site is being revegetated with 

native grasses and trees – all indigenous 

species. The wetlands will provide habitat 

for birds and aquatic life while assisting with 

drainage and water quality management. 

Landscaping is being designed to minimise 

watering requirements. 

The Inverloch resort is an affiliate of 

Green Globe, an international sustainable 

travel and tourism program. Similarly, 

redevelopment of the RACV Healesville 

Country Club in 2007 encompasses 

ecologically sustainable design provisions. 

Of note is the unique geo-exchange cooling 

system which will use the earth’s natural 

thermal energy to regulate temperature. 


CASE STUDY 3 

eco beach YHA 

The Eco Beach YHA at Apollo Bay is a 24 room (72 bed) budget 

accommodation development, located one street back from the 

harbour and foreshore of this west coast village. This is a “green” 

project that incorporates a high level of energy saving and 

environmentally sustainable features in its design. Apollo Bay is in the 

heart of the Great Ocean Road region, an iconic tourism destination 

for overseas, interstate and domestic tourists. 


• Market opportunity was identified through the success of the Grampians YHA Eco Hostel, 

a similar YHA ‘green’ project in Halls Gap, and the high profile of the Great Ocean Road region. 

• The strong environmentally friendly design approach has been a major selling point with high appeal for 

youth hostel travellers, particularly international visitors. 

• Site selection met the needs of central accessibility for budget travellers (beaches, shops, bars); northern 

orientation that provided maximum solar benefit, attention to the amenity needs of adjacent properties, 

sufficient space for necessary on-site parking and circulation and views to the surrounding hills. 

• The architect was provided with a clear brief for the project design that required attention to energy and 

water conservation, passive heating and cooling elements that met seasonal variation and the use of energy 

saving technology without a reduction in guest comfort. These requirements were achieved through 

building orientation, planning and design, material and colour selection, fixture and fittings selection, site 

treatment and landscaping. 

• Marketing of the facility benefits significantly from the generic marketing of the Great Ocean Road, 

nationally and internationally, from the strength of the YHA hostel network and also from the local 

Visitor Information Centre in Apollo Bay. 

Apollo Bay 


www.yha.com.au 


Project approvals 

Gaining approval for a project requires 

attention to the potential external impacts of 

a project and the statutory procedures that 

must be negotiated. Investors will usually 

need to engage closely with neighbours, the 

broader local community, local government 

and service authorities if they are to 

minimise the time frame and issues in the 

approval process. 

What types of Approvals are required? 

An examination of the planning scheme will 

have identified whether the proposed use 

and development is permitted under the 

planning scheme or not. The assessment of 

the planning scheme must identify whether 

there are parts of the development that are 

permitted and others that do not conform 

to the planning scheme requirements. In 

the event that an element of the use or 

development (or the proposal generally) 

does not comply with the planning scheme 

requirements then consideration will need 

to be given to: 

• Modifying the proposal to bring it within 

the scope of what may be permitted 

under the planning scheme. 

• Seeking an amendment to the planning 

scheme to provide for an alternative zone 

for the site, or other alteration to the 

planning scheme provisions that would 

enable the development to be approved. 

• Abandoning the site and seeking an 

alternative location for the development. 

If the concept is not consistent with the 

strategies and policies of the local government 

contained in the planning scheme it will be a 

significant task to achieve a modification to the 

planning scheme to enable the development 

to proceed. In this circumstance a decision to 

proceed with the project should only be taken 

after detailed discussions with Tourism Victoria, 

Department of Planning and Community 

Development, the local government and any 

referral authorities, eg. VicRoads, Department 

of Sustainability & Environment, Country 

Fire Authority, to establish a basis for the 

amendment. 

table 7: summary tourism project approval checklist for developers 

✓✓ Come up with the idea and develop the concept. 

✓✓ Contact local government’s planning department to discuss the initial tourism concept and 

Tourism Victoria on compatibility with the State’s Tourism product regions, and for assistance options. 

✓✓ Identify what planning policies affect the land where the development is proposed, 

including the zoning of the subject land and the surrounding area. 

✓✓ Determine what issues, including design and siting issues, need to be investigated 

to refine the initial concept. 

✓✓ Determine whether there are any relevant referral authorities that should be 

consulted at the preliminary design concept stage. 

✓✓ Determine whether Councillors, local residents, or community groups should be consulted 

prior to the lodgement of the planning application. 

✓✓ If appropriate, appoint professional design and planning assistance to assist with 

concept development. 

✓✓ Refine the concept, in conjunction with local government officers and other relevant agencies, 

after having investigated the relevant issues. 

✓✓ Identify what information needs to be included in the planning application; 

this will depend on the location, scale and complexity of the proposal. 

On the basis that the proposed use and 

development may be permitted under 

the planning scheme an application for a 

planning permit needs to be prepared. 

Proceeding with a non-complying 

proposal would require a planning scheme 

amendment to be sought. These processes 

are described briefly. Information on the 

planning permit process and planning 

scheme amendment process is contained 

in Planning: a Short Guide (2005) which may 

be obtained from www.dpcd.vic.gov.au at 

the planning/planning permits/application 

process links. 

Planning Requirements 

Victoria’s Planning Framework 

The provisions of the planning scheme 

that applies to the locality determine 

the planning requirements for a project. 

Victoria’s planning schemes are governed 

by the Planning and Environment Act 1987, 

which regulates land use and development. 

Generally local government administers 

planning schemes in Victoria (except for 

alpine resort areas – see Chapter 4) and 

the local government is responsible for the 

approvals required. 

The planning scheme regulates the type of 

land use and the nature of development 

on all land. It may specify requirements 

that must be satisfied by the development. 

Throughout the State, planning schemes 

have a standard format and a number 

of standard provisions. There are also 

local provisions that are unique to that 

local government area and are applied to 

specified areas, sites or activities. 

Information on all of Victoria’s Planning 

Schemes is available online at www.dpcd. 

vic.gov.au/planning. Information available 

includes all the planning scheme maps across 

the State and the details of the planning 

controls. A planning property report may 

be generated through this site that provides 

information on the planning controls 

applicable to a particular property. 



Planning Schemes 

In Victoria a planning scheme has the 

following components: 

State Planning Policy Framework (SPPF) 

The SPPF is common to all planning schemes 

and describes State planning policy in relation 

to matters of State importance. These 

policies include important principles for the 

coordination of development, protection 

of the environment, housing, economic 

development and infrastructure provision. 

Municipal Strategic Statement (MSS) 

& Local Planning Policy Framework (LPPF) 

The MSS and LPPF are unique for each local 

government/municipality. The MSS succinctly 

describes the principal planning objectives 

and strategies for the municipality and is 

linked to the municipal corporate plan. The 

MSS provides an important foundation for 

decision making by local government on 

development proposals. The LPPF provides 

statements of planning policy and intended 

actions in relation to localities, uses or 

activities. The MSS and LPPF must be taken 

into account by local government when 

making a decision on a planning permit or 

planning scheme amendment. 

Zones 

The planning scheme maps delineate the 

extent and nature of the land use zones 

that apply in each local government area. 

The zones are typically based on a primary 

land use (Residential, Business, Industrial 

etc) and the zone provisions describe 

the primary purposes of each zone and 

the controls in relation to land use and 

development. Within each land use zone 

the uses that are permitted without the 

need for a permit, require a planning permit 

or that are prohibited are detailed. Zones 

typically include decision guidelines, which 

are matters that the local government will 

consider when making a decision on a 

planning permit. 

table 8: planning data sources 

Information available on the website 

of the Department of Planning & 

Community Development – 

www.dpcd.vic.gov.au/planning includes: 

• Access to Planning Scheme Documents 

and Maps for all local governments. 

• Content and current status of all planning 

scheme amendments. 

• A guide to the Victorian Planning System. 

• Legislation and regulations that are 

applicable in the planning system. 

Overlays 

Overlays operate in addition to the zone 

requirements. They may be applied to 

particular areas for a variety of reasons 

including special environmental, landscape 

or heritage values, particular physical 

constraints (flooding, land slip hazard for 

example) or specific design or development 

requirements. Overlays will influence how 

land may be used or developed and its 

requirements will be considered by the local 

government in deciding a planning permit. 

The number and type of overlay that applies 

will be particular to each parcel of land and 

across local governments. The specific details 

of all applicable overlays must be ascertained 

at the outset. 

Other Provisions 

All planning schemes contain a range of 

standard provisions that apply to specific land 

uses or development activities. They include 

advertising signs, access to main roads, car 

parking, multi-unit development and a range 

of other activities. These requirements may 

be relevant for some proposals and need 

to be checked in each instance. Planning 

schemes also contain information on 

procedures and interpretation, which affects 

the administration of the scheme and permit 

decision-making. 

• Planning permit processes, permit types, 

application forms and other resources. 

• Government policy information that applies 

for example to Green Wedge areas, coastal 

areas, Melbourne 2030, regional planning 

and other topics. 

• Urban design objectives and considerations. 

• Environmental assessment processes and 

guidelines including current project status. 

• A comprehensive range of planning related 

publications including fact sheets, guidelines 

and advisory documents. 

table 9: planning/development 

approvals – identifying the planning 

requirements 

• Who is the planning authority? 

(Which local government?) 

• Does State or local policy provide 

support for the concept? 

• Are there specific local policies that 

apply to your type of proposal? 

• What zone is the land located in? 

Is the proposed use permitted? 

• Are there any overlay provisions that 

apply to the land? 

• Is the proposal affected by the general 

provisions of the planning scheme? 



Pre-Application Consultation 

Considering the views of others about the 

impacts of development proposals is part 

of the formal planning approvals process. 

It is usually highly advantageous to discuss 

the concept with persons or organisations 

that may have an interest in a project 

(stakeholders) before the concept is finalised 

and the application is submitted. There may be 

several different points at which external views 

are fed into the formulation and detailing of 

the development concept. 

Discussions with neighbours may identify 

potential impacts that can be eliminated or 

overcome with a variation to the design – 

moving a building, planting trees, changing 

the access point, earthworks, building design. 

Such modifications during the detailing of the 

concept may enable support for a project to 

be obtained. Negative reactions and concerns 

need to be addressed in the context of 

(amongst other things) the overall project 

objectives (will they be compromised by 

change?), project budget and viability (how 

do changes affect total costs and revenue), 

outcomes sought in the planning scheme (State 

and local policy, zones and overlays) and lateral 

alternatives to address such issues. Discussions 

and communication that commences at an early 

stage in the creation of the project and continues 

will establish valuable relationships and the best 

outcome for all. Delays in the approval process 

and significant costs can also be avoided. 

More complex projects may require a strategy 

to ensure that accurate information about the 

project is provided and that key persons or 

organisations with an interest are informed and 

engaged at critical points in the project’s progress. 

Pre-application discussions should not 

be limited to neighbours or community 

organisations. It is essential that discussions 

be held with the local government, service 

authorities and similar statutory bodies. The 

discussions with local government should be 

held, as a minimum in the following stages: 

• Prior to the development of the concept. 

• Following analysis of the site and the creation 

of a preliminary concept. 

• Prior to the planning application being 

finalised. 

It is important to be well prepared for the initial 

and all subsequent meetings with the local 

government. It may be advantageous to provide 

information on the concept in advance to assist 

participants to prepare for the meeting. 

Planning Application Requirements 

Local government web sites will usually 

detail the information that must be 

submitted to support a planning application. 

There may be general information 

requirements and specific matters that are 

to be addressed for particular types of land 

use or development. A systematic planning 

application that properly addresses all 

issues with a comprehensive analysis of the 

proposal enables local government to make 

an informed decision. There are statutory 

forms and fees that must be submitted with 

each application. An incomplete application 

will prevent the processing of the application 

from commencing. If there is insufficient 

information submitted with the application 

a request will be made to supply further 

information and the ‘clock will stop’ – the 

statutory time-frame for processing the 

application will be suspended. 

Information requirements will vary between 

proposals, but should generally include 

(where relevant). 

• Identification of the relevant State and 

Local planning policy frameworks of the 

local government planning scheme. 

• Site analysis, identifying site opportunities 

and constraints. 

• The expected social, economic and 

environmental impacts. 

• Detail of pre-application consultations, 

including discussions with local 

government officers, service agencies and 

local residents; with dates and discussion 

scope or outcomes. 

• Case studies relevant to the proposal. 

• A Site Plan, drawn to scale showing: 

–– site boundaries and dimensions; 

–– the location of existing buildings on 

the site, including identification of 

those proposed for retention and 

removal; 

–– areas of significant vegetation to be 

retained or removed; 

–– abutting land uses and buildings; and 

–– proposed setbacks of proposed site 

developments. 

Tarrawarra Estate, Yarra Valley. Photographer: John De La Roche. 



Figure 6 : POTENTIAL ISSUES FOR TOURISM PROJECTS 

project type 

potential issues 

car parking 

access & 

circulation 

traffic 

generation 

noise 

visual impacts 

other amenity 

impacts 

local character 

waste discharge 

public 

infrastructure 

impacts 

signage 

environmental 

impacts 

vegetation removal 

water supply 

public land impacts 

economic impacts 

aboriginal heritage 

hotel • • • • • • • 

motel • • • • 

camping / caravan park • • • • • • • 

tourist attraction • • • • • • • • • • • • 

museum • • 

heritage attraction • • • • 

nature based attraction • • • • • • • • 

cabins • • • • • • • • • • 

lodge / resort • • • • • • • • • • • 

health spa • • • • • • • 

cellar door • • • • • 

marina • • • • • • • • • • • 

golf course • • • • • • • • • • 

café / restaurant • • • • • • • 

recreation attraction • • • • • • • • • 

animal based attraction • • • • • • • • • 

• Elevations of proposed buildings and 

infrastructure showing: 

–– the elevations of every building and 

associated infrastructure (eg. car parks); 

–– the relationship of the elevation of 

proposed buildings and infrastructure 

to natural ground level, and showing 

any proposed cut and fill; and 

–– a schedule of finishes, detailing 

proposed building materials, and the 

colour of the main external surfaces 

including roofs and buildings. 

• A landscape concept plan showing: 

–– details of existing trees and shrubs and 

proposed modifications; and 

–– any proposed landscaping, including 

the type of trees and shrubs proposed, 

and their estimated heights at maturity. 

• Proposed signage or interpretative facilities. 

• Any management issues, for example 

the restriction of domestic dogs and cats 

on land, which abuts a fauna reserve or 

National Park. 

This is a general list of information which 

needs to supplemented and modified 

according to the particular development 

and specific requirements in the planning 

scheme as detailed in the zone, overlay or 

particular provisions. 

Professional assistance is advantageous 

in this process to enable complete and 

correct documentation to be provided and 

to minimize delays through the need for 

further information to be submitted. This 

documentation may be examined by referral 

bodies and the general public and so it needs 

to present a comprehensive response to the 

information requirements and also address 

potential issues associated with the project. 

Figure 6 illustrates the issues that are 

typically associated with various forms 

of tourism projects. The design should 

minimize the potential for such issues. The 

documentation that supports the project 

should address how such issues are to 

be mitigated. Specialist advice on traffic, 

environmental impacts, noise, visual impacts 

and similar matters may be required in 

some instances. 



Planning Scheme Amendment 

Careful consideration needs to be given 

to proposing a project on a site that is not 

permitted under the planning scheme. If 

after a close assessment of the planning 

scheme it is considered that a strong case 

can be made for a change to the planning 

scheme then it may be possible to have 

the planning scheme amended so that the 

project may be considered. Initial discussions 

should occur at this stage with Tourism 

Victoria to inform this assessment. 

The essential step in this process is to obtain 

support from the local planning authority 

for the amendment. This may be possible if 

for example: 

• The project outcomes are supported 

by the local government corporate plan 

or State planning policy. 

• Significant economic, community 

or environmental benefits can be 

demonstrated. 

• The current controls on the land are 

inappropriate or anomalous. 

• The change would achieve a better 

strategic planning outcome. 

A critical test for local government in 

deciding on an amendment is whether it is 

consistent with the future strategic directions 

for the local government. A reference point 

for local governments and the Department 

in advising the Minister is ensuring that the 

amendment satisfies the matters set out 

in the Planning Practice Note – Strategic 

Assessment Guidelines for Planning Scheme 

Amendments (see Department of Planning 

& Community Development web site 

www.dpcd.vic.gov.au). 

Figure 7 : planning scheme amendment process 

Proposed planning scheme change 

discussed with Planning Authority 

Authorisation of the amendment 

by the Minister 

Formal presentation 

of the amendment 

Consideration of submissions 

by local government 

Referral of submissions to a Panel 

(incl. Priority Development Panel) 

Submission to the 

Minister for approval 

Gazettal of amendment 

If the local government agrees to support 

the amendment it will then request that 

the Minister for Planning authorise the 

amendment. In deciding whether or not 

to authorise an amendment the Minister 

gives consideration to consistency of the 

amendment with State policy or interests 

and whether the modification is of a 

local significance only. The Department 

of Planning & Community Development 

provides advice to the Minister in relation to 

the compliance of the proposed amendment 

with the objectives for planning in Victoria 

and strategic policy. Consultation with the 

Department on the proposed planning 

scheme change should be an early part of 

the amendment process. Authorisation by 

the Minister will enable a formal amendment 

to be prepared and the statutory 

procedures to be followed. 

Requires support of 

the Planning Authority 

Draft ammendment 

to be prepared 

Decision by local government to 

adopt amendment for exhibition 

Public Exhibition of 

amendment and submissions 

Panel Hearing and report 

Final decision by local 

government on the amendment 

The amendment to the planning scheme 

may provide a change, which enables a 

permit to be applied for as a subsequent 

and separate process. Alternatively, 

amendments may also be structured to 

enable a development to proceed subject 

to conformity with a particular plan or set 

of criteria. There are also procedures that 

enable the concurrent amendment to the 

planning scheme and grant of a permit for 

a specific development. 

These procedures will require expert 

assistance and it will generally take at least 

six to twelve months for an amendment to 

be prepared, considered and approved. 



Planning Application 

Submission & Assessment 

Pre-application discussions with local 

government will clearly identify the 

required documentation to be submitted 

with a planning application, including the 

statutory forms, fee, plans and supporting 

information. The initial assessment by local 

government will be to determine whether 

there is sufficient information to enable the 

processing of the application. This reinforces 

the need for comprehensive documentation 

at the outset to avoid delays as there will 

be no further processing of the application 

by the local government until the additional 

information is submitted. 

Satisfactory documentation will enable the 

local government to refer the application to 

any statutory referral bodies (eg. VicRoads, 

Catchment Management Authority, and 

Water Authority) and determine the 

notification required in relation to the 

application. Notification may involve advice 

by letter to neighbouring property owners 

and occupiers or more broadly, on-site 

signage and public newspaper notices. A 

period of at least 14 days is given for any 

submissions to be lodged on the application. 

Pre-application consultation will assist in 

minimizing the formal objections to an 

application. When the notification processes 

have been completed the local government 

should be contacted to obtain information 

on any objections submitted. Local 

government will consider the submissions 

in making a decision on the application. If 

objections have been lodged the following 

courses of action may be appropriate: 

Figure 8: planning permit application 

Complete Planing Application Forms 

Further Information 

Referrals 

Assessment and report 

Local government decision 

– approval or refusal 

• Discuss with local government the 

planning importance of the issues raised 

and changes that may be desirable. 

• Amend the application to address 

the issues – further notification may 

be required if the changes made are 

significant. 

• Seek resolution of the issues through 

a mediation process facilitated by local 

government. 

• Directly discuss the issues with objectors. 

The content and impact of the objections 

will determine the most appropriate course 

and a combination of all of these processes 

may be desirable if there is an opportunity 

to resolve issues in order to achieve a direct 

approval and avoid the cost and delay of 

subsequent appeal processes through the 

Victorian Civil and Administrative Tribunal 

(VCAT). Agreement reached on changes to 

the proposal and subsequent actions – such 

as a withdrawal of an objection should be 

confirmed through written documentation. 

Compile all supporting 

Documentation 

Lodgement and initial Assessment 

Public Notification 

Objections 

– consideration and mediation 

VCAT application for review 

– refusal or conditions, third parties 

Discussions as a result of objections will 

normally need to be concluded before the 

application is assessed and presented to local 

government for a decision. An officer of the 

local government will prepare a report on 

the application, which discusses the planning 

merits and issues including the proposal’s fit 

with policy and statutory requirements, the 

content of objections and any responses 

to those issues. The report will include the 

views of any referral bodies with an interest 

in the project. 



Local government (or an appointed delegate 

in relatively straight forward cases) will make 

the decision on the application. An approval 

will contain a range of conditions that must 

be satisfied. These need to be examined and 

an application for a review of the decision 

may be made to VCAT if a condition is 

considered inappropriate, unnecessary or 

onerous. Similarly, a request may be made 

to VCAT for a review of a refusal of the 

permit. Where there have been objections, 

those parties also have the right to request 

a review of a decision by VCAT. Time limits 

exist for the right to request a review by 

VCAT for both applicants and objectors. 

The VCAT review is independent and public. 

VCAT is the final arbiter in disputed planning 

decisions. There is however the right 

for a Supreme Court review of the legal 

aspects of a VCAT decision. The process is 

conducted by State Government appointed 

legal practitioners and planning experts. 

VCAT hearings are less formal than normal 

court proceedings and legal representation 

is not essential. Advice should be sought 

however on the benefit of conducting a 

review case with legal representation and 

the need to engage other experts (town 

planners, traffic consultants, environmental 

experts and others) in relation to particular 

aspects of the case. A matter brought 

before VCAT is heard ‘de novo’ – essentially 

the whole matter is heard afresh and the 

Tribunal stands in the shoes of the local 

government. The risk of this aspect needs to 

be recognised in deciding to refer a matter 

to VCAT. 

table 10: request for review 

of a decision by VCAT 

Legislation: see Victorian Civil and 

Administrative Tribunal Act 1998 

For information see VCAT web site 

www.vcat.vic.gov.au 

Procedures guidance: Practice Note 

Planning & Environment List (No. 1) 

– General Procedures, Practice note 

VCAT No. 2 – Expert Evidence. 

See also Planning & Environment List 

Guidelines and other Practice Notes 

on the web site. 

Most hearings are conducted in Melbourne, 

but periodically cases are heard in major 

regional cities. VCAT hearings can be time 

consuming and costly for all parties and should 

be embarked on after due consideration. 

Decisions are normally provided several weeks 

after the hearing and local government is 

required to act administratively in accordance 

with the decision. 

Aboriginal Heritage 

Native Title 

The Commonwealth Native Title Act 

1993 provides for the establishment and 

protection of a range of native title rights, 

and future regimes and compensation, and 

for determinations over future grants and 

acts affecting native title to land and water. 

The Act requires notification of 

development on or uses of public land 

to claimants, potential claimants, or 

owners. Developers are strongly advised 

to seek clarification of the Act and any 

associated issues, during early consultation 

with Aboriginal Affairs Victoria and the 

Department of Planning and Community 

Development. 

Aboriginal Cultural Heritage 

The Aboriginal Heritage Act 2006 provides 

for the management and protection of 

culturally sensitive landscapes. The Act 

applies to all land in Victoria. Development 

and activities proposed for example, near 

the coast or adjacent to water bodies may 

affect areas of indigenous cultural heritage 

value. The Aboriginal Cultural Heritage Act 

2006 establishes a process to identify the 

potential for Aboriginal cultural heritage 

places and objects to be affected by 

development. 

Foxeys Hangour Winery, Red Hill. Photographer: John De La Roche. 



Brambuk, Grampians. Photographer: Bindi Cole – Snap Happy. 

The Aboriginal Heritage Regulations 2007 

define areas of high cultural sensitivity and 

activities that may impact on Aboriginal 

cultural heritage values. A Cultural Heritage 

Management Plan (CHMP) may be required 

to protect places or objects of heritage 

value. Where there is a requirement for 

a Cultural Heritage Management Plan 

it is required as part of the planning 

permit application and approval process. 

A planning permit must be consistent 

with the provisions of a Cultural Heritage 

Management Plan. 

A Cultural Heritage Management Plan 

is required for an activity if: 

• All or part of the activity area is an area 

of cultural heritage sensitivity; and 

• All or part of the activity is a high 

impact activity. 

A high impact activity is an activity that is 

likely to harm Aboriginal cultural heritage 

and examples include: 

• Developments that require an 

Environment Effects Statement. 

• Larger scale residential or industrial 

subdivisions on areas of cultural heritage 

sensitivity, which have not previously been 

significantly disturbed. 

• Substantial infrastructure or resource 

development projects on areas of cultural 

heritage sensitivity, which have not 

previously been significantly disturbed. 

Other circumstances requiring a Cultural 

Heritage Management Plan are prescribed 

in the Regulations. Information on the 

requirements of the Aboriginal Heritage Act 

2006 is available at www.dpcd.vic.gov.au/aav. 

figure 9: cultural heritage management plan (CHMP) process 

The diagram is an example of the process a developer would follow 

when seeking approvals for a large scale subdivision/development. 

Developer decides that a CHMP 

is required after checking the 

Regulations and any published guidelines 

Developer notifies the Secretary, 

DVC and relevant 

Registered Aboriginal Party (RAP) 

RAP responds to developer 

(within 14 days) 

and elects to evaluate the CHMP 

RAP has 30 days to review CHMP 

and to notify developer of any decision 

Developer provides a copy of CHMP 

in support of application to Council 

for a Residential Subdivision Permit 

OR 

Developer engages Cultural Heritage 

Advisor to prepare the CHMP 

If RAP refuses to approve the Plan, 

the developer is able 

to appeal to VCAT 

Developer submits application 

to Local Council 

without an approved CHMP 

Council advises that it is a 

prescribed activity on sensitive land and 

that it cannot make a planning decision 

without an approved CHMP 

Developer prepares CHMP 

Developer submits finished CHMP and 

prescribed fee to RAP for evaluation 

Local Council able to decide 

whether to grant or refuse 

approval for subdivision 



Tourism Development on Public Land 

Public land in Victoria is an extensive and 

valuable community resource comprising 

most of the coastal edges and foreshores of 

the State; National Parks, State Parks, State 

Forests and other reserves; river and lake 

reserves; our Alpine Resorts and a range of 

other special purpose public reserves such 

as flora and fauna reserves, gardens, cultural 

and historic sites. These areas contain 

approximately 8 million hectares and receive 

an estimated 130 million visit days from 

tourists and recreational visitors annually. 

The Minister for Environment and 

Climate Change is responsible for the 

management of this land, which is carried 

out by the Department of Sustainability 

and Environment and bodies such as Parks 

Victoria, Alpine Resort Management Boards 

and Committees of Management. 

The use and development of public areas 

for tourism and other purposes is generally 

provided for through Management Plans 

and similar policy documents. Management 

Plans identify the nature, location and level 

of tourism related facilities and services to 

be provided on public land. Most facilities 

are provided by the State Government 

through the organisation responsible for 

the management of a particular area. There 

is however, a wide range of services that 

may be conducted by the private sector 

on public land. They may include services 

such as guided tours and interpretation, 

boat hire and equipment hire services, 

skill development, recreation experiences, 

special events and other activities. These 

activities may only be seasonal and may 

generally require minimal built infrastructure 

investment. Operators may be granted a 

business license and a short-term lease 

where a specific area of public land is to be 

used for the delivery of the service or as a 

base for such operations. 

table 11: tourism & recreation use 

of public land 

The provision for tourism and 

recreation use of public land must 

accord with the following principles: 

• The activity accords with the objectives 

of the relevant reservation legislation 

and related management plans and 

policies. 

• The activity is consistent with the 

National Ecologically Sustainable 

Development objectives and principles. 

• Meets demonstrated need and is 

dependent on the natural and cultural 

values of the area. 

• Risk levels are appropriate and 

manageable. 

• Community access is not unreasonably 

restricted. 

• Net public benefit is provided in the 

short and long term. 

‘Sustainable Recreation & Tourism on 

Victoria’s Public Land’, DNRE, 2002 

Opportunities for the development of 

major tourism facilities on public land, 

such as accommodation, boating facilities, 

cafes/restaurants, sports facilities are more 

limited but may be provided for as part of 

a management plan or master plan for a 

specific area. The preparation of such plans 

would identify the need for private sector 

development, its suitability, potential impacts, 

and examine alternatives to the use of public 

land for the proposed development. 

Current policy directs major new tourism 

facilities to service visitors in National Parks 

to locations outside of the declared park 

area. This policy is subject to a review to 

enable developments satisfying criteria that 

include public need, benefit and ecological 

sustainable development principles to be 

considered. 

A license to conduct a tourism or 

recreation service on public land may be 

sought through the body responsible for 

the management of that land. Public land 

managers may also from time to time 

seek the provision of commercial services 

from the private sector through a public 

tender process. The provision of a major 

development on public land is also normally 

pursued through public tender processes. 

In addition to approval by the land manager 

a planning permit from the Responsible 

Authority, usually the local government, will 

normally be required. A planning permit and 

other required approvals would need to be 

obtained following approval of the proposal 

by the land manager and prior to the 

commencement of any development. 

Lease and license terms 

A license term of up to 10 years is available 

for operators on public land who can satisfy 

sustainable tourism criteria. 

Lease terms for development on public 

land are generally limited to a maximum 

of 21 years, but vary according to the nature 

of the reservation and the proposed use. 

In Alpine Resorts lease terms of up to 

99 years may be granted. 



table 12: legislation and public land 

Legislation Purpose Agency 

Crown Land (/Reserves) Act 1978 To provide for the reservation of Crown Land. Department of Sustainability and Environment 

(DSE) 

Coastal Management Act 1995 

To plan for and manage the sustainable use of 

Victoria’s coastal resources. 

DSE 

National Parks Act 1975 To preserve and protect National and State Parks. DSE 

Alpine Resorts Act 1983 To provide for the reservation of Alpine Resorts. DSE 

Alpine Resorts (Management) Act 1997 

Planning and Environment Act 1987 

Provides for the establishment and functions of 

Alpine Resort Management Boards. 

Legislative framework controlling planning 

approvals and scheme amendments. 

DSE 

Department of Planning & Community 

Development (DPCD) 

Forests Act 1958 To protect and manage State forests DSE 

Local Government Act 1989 

Environment Effects Act 1978 

Environmental Protection & Biodiversity 

Conservation Act 1999 (federal) 

Controls local government functions and 

responsibilities. 

An Act to require the environmental effects 

of certain works to be assessed. This Act 

provides for the environmental assessment of 

development that has the potential to impact 

on the environment. 

Protect biodiversity and associated 

environmental issues. 

DPCD 

DPCD and DSE 

Federal Government 

Victoria’s Nature Based Tourism Strategy, 

2008–2012 (VNBTS) recommends 

provisions for longer leases commensurate 

with the level of investment for land that 

comes under the Crown Land (Reserves) 

Act 1978 and the Forest Act 1958, 

and licences for tour operators to be a 

maximum term of 10 years. The VNBTS 

encourages further development of nature 

based tourism accommodation projects 

in Victoria. 

table 13: information sources for tourism opportunities on public land 

• Victorian Coastal Strategy and approved 

Coastal Action Plans 

• Relevant National Park or Foreshore 

Management Plans 

• Approved Park Management Plans 

or concept plans. 

• Alpine Resorts 2020 Strategy, 

Alpine Planning Scheme. 

• Victoria’s Nature Based Tourism Strategy, 

2008–2012 

• Public land legislation (see above) 

• See Appendix C – Key Contacts for 

the Department of Sustainability & 

Environment and Parks Victoria for contact 

information. 



Tourism Development in Alpine Resorts 

The Victorian Alpine Resorts at Falls Creek, 

Mt Buller, Lake Mountain, Mt Baw Baw, 

Mt Hotham, and Mt Stirling are subject to 

specific arrangements for planning approvals 

and leases. Virtually all land in these Alpine 

Resorts is Crown Land. 

Development in all of these Alpine Resorts 

is administered under the Alpine Resorts 

Planning Scheme. The Minister for Planning 

is the Planning Authority and Responsible 

Authority for all planning matters. The 

Department of Planning & Community 

Development administers the Alpine Resorts 

Planning Scheme for the Minister. 

These alpine areas are managed by Alpine 

Resort Management Boards (constituted 

under the Alpine Resorts Management 

Act 1998) who have responsibility for the 

management of Crown Land in Alpine 

Resorts, the provision of a number of 

services and promotion of the Resorts. 

Alpine Resorts have been excised from local 

government boundaries, but the respective 

local government is consulted as part of the 

planning permit application process. 

The Minister for Environment & Climate 

Change is responsible for the granting of 

leases on Crown Land. The Alpine Resort 

Management Boards make recommendations 

to the Minister on the grant of a new lease or 

the extension of an existing lease. 

The procedures for planning permit 

applications are similar to those described in 

Section 4. The Alpine Planning Information 

Kit provides a comprehensive guide to the 

regulations, procedures and requirements for 

applications (www.dpcd.vic.gov.au). 

Some key differences that should be noted: 

• The Alpine Planning Unit at DPCD should 

be contacted to obtain advice on the 

applicable planning controls, information 

requirements and pre-application meetings. 

• As the custodian of Crown Land, the 

Minister’s consent is required for an 

application for a planning permit. 

• The application will be referred to the 

relevant Alpine Resort Management 

Board for its views and requirements and 

to the adjacent local government for its 

comments. Other authorities may also 

be contacted as part of the referral and 

notification processes. 

• Additional and specific information 

may be required for each application. 

This may include: 

–– A flora and fauna assessment 

(in relation to impacts on flora and 

fauna covered by the Flora and 

Fauna Guarantee Act 1988 and 

the Environment Protection and 

Biodiversity Conservation Act 1999). 

–– A geotechnical assessment of the site 

in relation to the stability of the land 

and design in order to avoid potential 

land-slip hazards. 

–– A Site Environmental Management 

Plan (SEMP) that identifies potential 

environmental impacts and provides 

for management measures to reduce 

impacts both during construction and 

ongoing. 

Alpine areas are fragile and highly sensitive 

natural environments. New development 

within these environments must be designed 

to minimise the environmental impact 

and be appropriate to the extremes of 

climate experienced – temperatures, wind, 

ice, snow load, and snow deposition. These 

matters must be thoroughly addressed in a 

development proposal within an alpine resort. 

The Minister’s decision on a planning permit 

application in an alpine resort is subject 

to the same rights of review by VCAT as 

are all other planning permit application 

decisions made under the Planning & 

Environment Act 1987. 

Huski, Falls Creek. Photographer: Peter Bennetts. 




Alpine Resorts Leases 

All Victorian alpine resorts are Crown land 

permanently reserved under the Crown 

Land Reserves Act 1978. The exceptions are 

three small parcels of freehold land within 

the Mt Hotham Alpine Resort. Dinner Plain 

is also freehold alpine land but is not within 

a declared alpine resort. 

The State Government approved the 

Alpine Resorts Leasing Policy in 2002. 

(See www.dse.vic.gov.au/dse/index.htm and 

go to Recreation & Tourism/Alpine Resorts/ 

Projects/Alpine Resorts Leasing Policy). 

The policy provides: 

• The right for existing lessees to negotiate a 

new lease on the expiry of the lease term. 

• The value of the improvements to the 

land rests with the lessee. 

• A lease term that is commensurate 

with the proposed use of the land and 

the value of the investment. For major 

investment (in excess of $8 million) lease 

terms of up to 51 years are available. 

Lease terms longer than 51 years up to 

99 years may be possible subject to an 

acceptable business case. Investment of 

$8 million or less will be provided with a 

shorter lease term as may be negotiated 

based on the levels and nature of 

investment and development. 

• The requirement for lessees to comply with 

uniform standards of occupancy – planning, 

environmental and building policies, repair 

and maintenance requirements. 

• Site rentals are determined on the basis 

of a market based site value reviewed 

each 3 years. 

• A standard lease document applies 

to all new leases. 

Alpine Resort Management Boards have 

been delegated the power to issue new 

leases in alpine resorts. Most tourism 

investment in alpine resorts occurs on the 

basis of the redevelopment of an existing 

leased site. A new lease appropriate to 

the use and magnitude of investment is 

negotiated for the development in that 

instance. The subdivision of a lease site may 

occur with approval of the Minister. From 

time to time new sites for development 

may be released within an alpine resort. 

The responsible Alpine Resort Management 

Board would normally conduct an 

expression of interest, a public auction and/ 

or public tendering process to ensure the 

best public interest outcome. 

table 14: tourism development 

in alpine resorts 

• Land in declared alpine resorts is almost 

exclusively Crown land. 

• Declared alpine resorts are excluded from 

adjacent local government areas and are 

administered by Government appointed 

Alpine Resort Management Boards. 

• The Victorian Planning Provisions 

apply to all alpine resorts, which are 

administered by the Department of 

Planning & Community Development 

(contact Alpine Resorts Unit, DPCD). 

The Minister for Planning is the 

Responsible Authority. 

• Development approval processes 

are similar to elsewhere in Victoria 

but details are available in the Alpine 

Planning Kit (see DSE web site). 

• Long-term standard leases apply to all 

new development within alpine resorts 

– see Alpine Resorts Leasing Policy on 

DSE web site for details. 

• See Appendix C – Key Contacts 

for the Alpine Resorts Unit and 

Department of Sustainability & 

Environment for contact information. 

Huski, Falls Creek. Photographer: Peter Bennetts. 


project approvals 

Convent Gallery, Daylesford and the Macedon Ranges. Photographer: Peter Dunphy. 

Victorian Water Authorities 

The Victorian water industry provides 

services to in excess of 4.6 million 

people encompassing 100% of the State’s 

population. Water business customers 

continue to benefit from the improved levels 

of service and investment to protect public 

and environmental health. 

The Victorian water industry covers the 

metropolitan and regional sectors of the 

State. All Victorian water businesses are 

State Government Business Entities (GBEs). 

Water businesses are guided by skills based 

Boards of Directors. 

The framework governing the conservation, 

allocation and supply of water in Victoria 

has undergone significant change over the 

last 25 years. As a result there are now 20 

water businesses in Victoria, 16 regional water 

businesses in Victoria that provide urban and/or 

rural services. Rural business regions include: 

Goulburn-Murray Water 

Goulburn-Murray Water manages waterrelated 

services in a region of 68,000 square 

kilometres, bordered by the Great Dividing 

Range in the south to the River Murray in the 

north, and stretching from Corryong in the 

east, downriver to Nyah. Goulburn-Murray 

Water also operates salt interception works 

on the Murray downstream of Nyah, manages 

Mildura Weir, delivers bulk water to supply 

points outside it’s region and is the Victorian 

Constructing Authority for the Murray- 

Darling Basin Commission. GMW also 

manages recreation and other public activities 

on and around our major water storages. 

Southern Rural Water 

Southern Rural Water is responsible for 

managing rural water resources across the 

southern half of country Victoria, from the 

Great Divide to the coast. 

Lower Murray Water 

Lower Murray Water’s area of operation 

extends from Kerang to the South Australian 

border taking in the municipalities of Mildura, 

Swan Hill and Gannawarra. 

GWM Water 

GWM Water is a government owned water 

business responsible for managing urban and 

rural water supply systems in the Grampians, 

Wimmera and Mallee regions of Western 

Victoria. GWM Water also own and operate 15 

major bulk water supply reservoirs and manage 

groundwater supplies and river diversions. They 

are also responsible for the implementation 

of the Wimmera Mallee Pipeline project, with 

construction already underway. 

Approval may be required from water 

authorities if your proposal requires access 

to a reticulated water supply and/or ground 

water reserves. 


CASE STUDY 4 

balgownie estate 

Balgownie Estate at Yarra Glen is a vineyard, which has established 

a 5-star conference venue (up to 250 persons), accommodation 

(65 suites and studio rooms), restaurant and bar, cellar door and day 

health spa. The business is part of a well reputed wine brand, originally 

established in the Bendigo region. The Yarra Glen tourism business 

employs 70 persons (excluding the day spa). 

Balgownie Estate, Yarra Valley. 

Yarra Glen 


www.balgownieestate.com.au 


• A market opportunity was identified in the Yarra Valley based on the high level of visitation, a large potential 

market within 1 hour drive and the burgeoning reputation of the region for high quality food and wine. 

• The site selected for the project provides high quality views and has been important 

to the establishment of the image and quality of the business. 

• Extensive pre-concept consultation was carried out with the local government, Tourism Victoria, 

neighbours and other local stakeholders. This process ensured that factual information was provided 

concerning the project and it benefited from a number of useful suggestions that were taken on board 

in the project’s development. 

• The planning approval was a complex process and appointment of a planning consultant was valuable in 

obtaining the required approvals. 

• The project business plan and financial backing was established at an early stage of the process. 

This provided a sound basis for the extensive approval process that was required. 

• Knowledge of the construction industry enabled detailed management of the design process, 

refinement of details during the building phase and attention to construction issues as they arose. 

• Partnerships have been formed with other tourism businesses in the region. This enables the visitor 

experience offer to be broadened and is combined with joint marketing and packaging. 



financing and funding 

Crowne Plaza, Torquay. 

Profitability is a fundamental requirement 

for any sustainable commercial business 

investment. Some tourism projects are 

however, established and operated by not 

for profit organisations - trusts, foundations, 

associations. The planning, financing 

and continuing funding for all tourism 

investment requires a business plan that 

is based on a sound assessment of the 

capital outlay, operating costs, revenue and 

longer term considerations of maintenance, 

refurbishment and upgrade. 

Preparation of the Business Plan 

Business Planning is a process of thinking 

strategically and combining information 

about the future of a business. It requires 

consideration of: 

External factors 

• the economy 

• the market 

• customers and competition 

Internal factors 

• internal organisation and management 

• product and market mix 

• facilities requirements 

• technology needs 

• finance 

The Business Plan enables full consideration 

of the proposal for a given time-frame, 

and is essential for obtaining finance from 

financial institutions. 

It also assists to: 

• Clarify many of the developer’s own 

questions and issues. 

• Provide a basis for future performance 

analysis and forward planning. 

A summary of Business Plan content 

requirements are discussed right (table 15). 

This discussion should be regarded only as a 

‘first-pass’ guide. 

table 15: business plan content 

A Business Plan scope should cover 

the following: 

• Executive Summary – brief summary of 

project, project investment return and 

strategic issues. 

• Venture Profile – product description, 

market opportunity, target markets, 

SWOT analysis, consideration of 

options, growth strategies, and project 

risks. 

• Business Structure and Management 

– management structure, employment 

details, project development 

management. 

• Operation Plan – financial feasibility 

analysis, cash-flow budgets, return 

on investment, potential government 

financial support. 

• Marketing Plan – target markets, 

communication tools, media, collateral 

material, and budget. 

• Appendix – supporting information 

such as developer credentials, market 

research details, and product details. 



Business plan – key elements 

Management and Business Structure 

Management Structure 

Early decision on the legal form for 

business management is important. This 

has important functional and financial 

implications. Tourism investors are therefore 

strongly advised to seek professional legal 

and financial advice on the appropriate 

structures for their proposals. Common 

management options include proprietorship, 

partnership (including limited liability 

partnership) and proprietary company. 

These options are summarised in Table 16. 

Other more complex structures include 

joint venture arrangements and trusts. It 

is a legal requirement for limited liability 

companies to identify the structure, directors 

and any professional counselling to be used, 

ie. accountancy, legal, marketing, etc. 

One of the earliest decisions to be made by 

the investor is the legal form of the business. 

Each of the options has advantages and 

disadvantages. Legal and financial advice should 

be sought before deciding which structure best 

suits the ownership and management of the 

proposed business venture. 

Employment Details 

Registration of a company requires 

information to be lodged that details 

information about directors and their 

qualifications, managers, staffing structure, 

and who the statutory officers are. 

Project Development Management 

Planning and implementing any development 

requires competent management. For 

larger projects, this may require a project 

management team. This will typically include 

the investor and other key stakeholders 

such as the landowner, architect builder, 

subcontractors, quantity surveyors, the 

development company, and possibly the 

financier. Project management in establishing 

a project is a specialist task. Its effectiveness 

can ‘make or break’ the project prior to it 

commencing operation. 

table 16: business structure options 

Option 1 Option 2 Option 3 

Sole Proprietorship Partnership Proprietary Company 

Advantages 

• Simplest legal structure 

• Low start up costs 

• Exclusive control of asserts 

and profits 

Disadvantages 

• Sole responsibility for all 

debts and obligations 

• Possible difficulties in 

raising capital 

Advantages 

• Simplicity of formation 

• Minimal start up costs 

Project Management companies exist to 

manage the interests of investors, and 

tourism investors should seriously consider 

the need for such professional service. 

• Increased access to finance 

• Diversity of skills and 

expertise 

• Limited regulation and 

protection from public 

scrutiny 

Disadvantages 

• Unlimited legal liability 

• Public scrutiny 

• Divided authority 

• Potential for friction 

• Limitations on size 

Operation Plan 

The Operation Plan provides the financial 

‘nuts and bolts’ of the proposal for analysis 

by investors or financiers. It is the most 

important component of the Business 

Plan and its professional development and 

presentation are essential. Its main elements 

are discussed below. 

Detailed and Realistic Cash-Flow Budgets 

All possible costs including taxes, and all 

assumptions used to predict cash-flows (cash 

in and cash out) need to be identified and 

explained. For example, predicted annual 

tourist numbers need to be substantiated 

by actual visitor statistics to the area, and to 

other attractions of similar type and scale 

in the region or State. Cash-flow must be 

distinguished from profit. Profit measures 

revenue less expenditure, but does not 

include one-off capital expenditures on 

items like site acquisition, development 

construction, equipment purchase and 

Advantages 

• Separate legal identity 

• Limited liability 

• Preferable management 

structure 

• Ready access to finance 

Disadvantages 

• Establishment costs 

• Increased regulation 

• More record keeping 

• Annual returns 

• Available for public scrutiny 

fit-out. It does however, include annual 

maintenance and depreciation as costs 

against the business. The period for which 

cash-flow projections need to be prepared, 

and their required level of detail requires 

discussion with professional advisers including 

prospective financiers. A business plan should 

normally cover no less than three years of 

operation, with at least the first year’s figures 

presented on a monthly basis. 

Financial Feasibility 

Financial feasibility assessment is needed, 

together with the market analysis, to gauge 

the developer’s likely return from the 

initiative, and whether its continuation is 

warranted. The analysis is also critical to 

obtaining finance. Therefore, realistic and 

appropriately indexed profitability and cashflow 

projections need to be prepared for 

both the development and operational life 

of the project. 



Business plan – key elements (continued) 

Key matters that should be included in the 

assessment (and which financial institutions 

would generally require to support a funding 

application) are: 

• Anticipated costs and contingency 

budgets, one-off costs such as capital 

investment, future ongoing operating 

costs including marketing, taxation and 

finance costs, and depreciation costs for 

plant and equipment. 

• Realistic estimates of short and long-term 

projected revenues. 

• Anticipated short and long-term profit 

and loss. 

• Expected rates of return on investment 

over a nominated period. 

• Projected discounted cash-flow analysis 

over the life of the project to indicate 

debt and project pay-backs. 

• Sensitivities of the project to factors 

such as cost and timing overruns, higher 

inflation and interest rates, decreased 

patronage and occupancy rates, ie. 

maximum reasonable adversity analysis. 

• Other reasonable investment 

assumptions. 

• Benchmarking to similar projects 

undertaken in the industry, where 

available; and 

• Appraisal of project options, eg. staged 

development or other modifications, 

scaling down increased equity versus 

finance etc. 

The options appraisal is critical to enable 

investment assessment. Options covered 

need to include both: 

• Staged development of the project. 

• Alternative options available to achieve 

similar or comparable tourism outcomes. 

Overview assessment of the relative viability 

of each option is required, to assist financiers 

and/or equity partners to determine the 

relative merits of the proposal within a 

broader context. Reasons for the choice of 

the preferred option need to be clear. 

Return on Investment 

The proposed investment’s profitability 

needs to be determined as accurately as 

possible, supported by financial feasibility 

studies. Where information is available, profit 

projections should be compared to those 

from other like investments. If the estimated 

profit margin is a little more or less than 

what could be earned in a traditional ‘safe’ 

investment, proponents and investors should 

carefully consider the wisdom of proceeding. 

Calculation of the Internal Rate of Return 

(IRR) provides a measure of the discount 

(interest) rate achieved by the initial capital 

investment and the anticipated future cashflows. 

This measure can be effectively used 

to compare the performance of different 

concepts or options and enables comparison 

with other known investment returns. 

Figure 10: assessment of project viability 

Project Design 

Capital Cost 

Development 

Sensitivity Analysis 

The financial feasibility assessment of the 

project should be tested as to the effect 

of a variation to key assumptions on the 

outcome – sensitivity analysis. This analysis 

can take the form of both negative and 

positive changes. In making changes to 

the analysis assumptions, whether it be 

sales, pricing, cost of capital or to other 

major costs the impact will be seen on the 

traditional measures such as rate of return 

or net present value. To bring it back to 

a more basic principle, this analysis will 

examine the effect on cash-flow and in turn 

the viability of the project. 

This analysis will also provide an insight to 

the project’s sensitivity to market factors 

and its viability in the prospect of changing 

market forces. The modeling will give further 

insight to what is required to ensure that the 

project is a viable proposition. 

Acceptable 

Unacceptable 

Review 

Funding 

Revenue 

Operating Cost 

Net Cash-Flow 

IRR 



Business plan – key elements (continued) 

Availability of Government Support 

Federal, State and local governments can 

provide a range of support, particularly 

where the investment can demonstrate 

significant economic benefits in a regional or 

State context. Such support could include 

grants, marketing assistance, infrastructure 

provision or access to Government planning 

approval services and facilitation assistance. 

All possible areas of Government support 

should be investigated at Local, State and 

Federal levels. 

Tourism Victoria will assist investors 

to facilitate their investment projects. 

Specifically, Tourism Victoria will assist with 

the coordination of State agency advice 

in the development approvals process. 

Regional Development Victoria and the 

Victorian Business Centre should be 

contacted in relation to a broad range of 

support and assistance that is available. 

Obtaining Financial Support 

Financial Submission 

The Business Plan discussed earlier in 

this section, provides understanding of a 

proposal’s expected business and operating 

environment to assist financiers and 

investors ascertain debt servicing capabilities 

and requirements. 

Financiers generally also require a detailed 

Financial Submission containing additional 

information including a project financing 

proposal. This and other required information 

is listed in table 17 as an indicative Financial 

Submission ‘checklist’. Main elements are also 

discussed in this section. 

Early consultation with potential financial 

institutions is essential, to clarify their 

requirements. 

table 17: indicative financial 

submission checklist 

• Business plan 

• Track record 

• Financial standing 

• Finance and repayment proposal 

• Supporting documentation 

• Additional collateral security 

Developer’s Track Record 

Financiers need knowledge of the 

developer’s business track record, 

particularly in business related to the 

submission. Descriptions of past ventures 

and of management experience and 

credentials are essential. Developers with 

limited experience in the tourism industry 

may be advised to consider employing a 

manager experienced in the industry. 

Financial Standing 

Financiers assess a developer’s current 

personal and business financial positions, and 

past credit and financial commitment history. 

Financial statements including balance sheets, 

profit and loss statements, management 

accounts and taxation returns will be 

required for current and recent past years. 

The Finance Proposal 

A viable finance proposal for the project will 

be needed. A financial consultant may be 

required for this task. The proposal will need 

to include at least: 

• The purpose of the required loan. 

• The amount of debt required, and the 

proposed loan term. 

• The amount of equity to be injected by 

the developer, and its proposed timing. 

• The proposed method of debt 

repayment, substantiated by cash-flow 

and other financial detail including 

guarantee information if applicable, and 

the proposed exit strategy for the lender. 

• Proposed debt servicing arrangements 

supported by expected cash-flow and 

abilities to meet repayments and interest. 

• Security offered over the development, 

which may include any land, leasehold 

interest, buildings, plant and equipment, 

goodwill and debts. 

Documentation to Support 

the Finance Proposal 

The tourism developer will also need 

to provide the following support 

documentation with the Finance Proposal: 

• The previously discussed Business Plan 

incorporating feasibility studies and 

management strategies. 

• An assets schedule, including valuations 

of property offered as financial security 

whether for the development site or 

collateral security. 

• Where construction would be needed, a 

quantity surveyor’s report substantiating 

design, construction and development 

costs. 

• Group structure charts detailing 

ownership shareholding and all connected 

entities. 

• A schedule of the developer’s legal, 

financial and other key advisers. 

• Details of planning and development 

approvals required and obtained 

(refer Project Approvals). 

• A summary of the developer’s 

individual or connected entities’ 

financial statements, and explanations for 

any major fluctuations in trading 

and balance movements. 

• Summaries and reconciliations of key 

items in projected profitability and 

cash-flow budgets, to explain funding 

requirements. 

• Relevant corporation documentation 

such as Memorandum and Articles of 

Association, Trust Deeds etc; details of 

the developer’s accounting system and 

reviews by independent accounting firms. 



• Current aged debtors and 

creditors listings and fixed asset 

depreciation schedules. 

• Realistic costs and timing factored 

into project expense considerations 

such as lease payments, income tax, 

interest, superannuation contribution, 

insurance, trading expenses, fringe 

benefits tax, annual and long service leave, 

capital expenses and debt repayment. 

Availability of contingency funds should 

also be demonstrated. 

Additional Collateral Security 

Collateral is security pledged as a guarantee 

for repayment of a loan. While the security 

of a venture may be sufficient collateral, 

financiers may also require additional 

collateral to guarantee payment. 

Examples may include a mortgage over the 

family home, or directors’ or shareholders’ 

guarantees. Developers may therefore 

need to be prepared to risk foreclosure of 

mortgages if venture failure occurs. 

Financiers may also require additional 

security such as fixed and floating debenture 

charges over the business, or charges over 

specific property or leasehold mortgages. 

Details of the above will be subject to 

individual circumstances and negotiation 

with prospective financiers. 

Credit Assessment Factors 

In addition to financial security matters, 

financiers will generally assess the following 

credit risk factors: 

• Financial institution’s lending policy 

for the type of business. 

• Proven market for the proposed venture 

product, benchmarked against the 

performance of existing clients in the 

same market. 

• Proponent’s experience, and business 

planning, and management skills. 

• Ratio of debt versus equity. 

• Professional standing of consultants, 

advisers and contractors engaged 

by the proponent; industry trends 

and competition. 

• Insurance availability for high risk 

or unusual ventures. 

• Proponent’s track record and 

disclosure integrity. 

• Proponent’s analytical objectivity and 

rigour used in assessing adverse factors 

impacting on cash-flow. 

• Quality of the proponent’s business 

reporting systems. 

Financing and Tax Considerations 

Equity versus Debt Finance 

Equity is the amount or proportion of 

the overall investment supplied by owners 

towards the venture. 

The greater the investor’s equity in the 

venture, the greater the risk being taken 

on its success. Equity provides funding 

opportunities where conventional security 

is not available, and where cash-flows are 

uncertain to support debt financing. 

Some specialised capital venture companies 

offer equity partnerships. Costs, project 

control and ownership issues of such 

partnerships will require professional legal 

and financial assessment. Debt finance may 

be obtained from various institutions such as 

banks, building societies, finance companies, 

credit unions and professional groups such 

as solicitors. 

In determining the correct mix between 

equity and debt finance for a development, 

factors to be considered include: 

• Developer’s funds potentially available. 

• Project size and cost. 

• Taxation considerations. 

• Gearing ratios for other ventures 

of that type. 

• Prevailing and anticipated interest rates. 

• Degree of control over the project 

development and cash-flow stream. 

Where interest rates are high or expected 

to be high, restricted borrowing may be 

desirable to reduce the risk of failure due 

to sudden interest rate increases. 

Geelong Yacht Club, Geelong. Photographer: Mark Chew. 

At the Heads, Barwon Heads. Photographer: Mark Chew. 




Also, debt financing conditions need to 

provide for projected business cash-flow and 

development requirements. For example, 

the choice of short, medium or long-term 

debt finance, and whether on an interestonly 

or progressive repayment, can impact 

greatly on business viability. 

Other considerations include: 

• Size of security sought by the debt financier. 

• Penalties potentially imposed against early 

loan repayment. 

• Consequences of late or non-payment 

of debt. 

• Financier’s flexibility in meeting 

the needs of the business venture. 

Taxation Considerations 

Taxation is a major and complex 

consideration in the financial structuring of 

projects, and in business planning generally. 

The apportionment of project, market and 

revenue risks between parties can impact 

greatly on a project’s viability. Most banks 

have finance project teams to develop 

customised project financing structures and 

proposals. Also, sensitive taxation aspects are 

usually confirmed via legally binding private 

taxation rulings obtained from the Australian 

Taxation Office. 

Taxation law is constantly changing. 

It is, therefore, essential that prospective 

developers seek professional taxation 

advice in the early stages of concept 

development, for attention within business 

planning and associated feasibility assessment 

documentation. 

Some broad overview issues 

are discussed below. 

Types of Taxes 

Relevant taxes include income tax, the GST, 

pay-roll tax, fringe benefits tax, land tax, local 

government rates and charges (including 

water rates, environmental levies, and 

general rates), bank account deposits and 

withdrawals taxes, and other Government 

licence fees and charges. 

Taxation Deductions and Incentives 

Taxation deductions or incentives against 

legitimate business establishment or 

improvement expenses influence income 

tax liability and hence business viability. 

Operational expenditure is usually 

deductible in the year incurred, while ‘capital’ 

or structural expenditure over $300 is 

generally deductible as depreciation over 

the approximated useful life of the asset. 

Some conditional tax incentives may be 

available to stimulate greater private sector 

infrastructure investment. 

Depreciation 

Accelerated depreciation rates may apply 

against business plant and equipment 

(including those installed on leased Crown 

Land). Guidelines are available from the 

Australian Taxation Office. 

Infrastructure Bonds 

Infrastructure bonds may be applicable 

to the financing of land/air transport or 

seaport infrastructure facilities associated 

with a project. These would reduce project 

financing costs through concessional tax 

treatment of paid bond interest. 

Company, individual or superannuation fund 

investors may apply to the Commissioner of 

Taxation for a tax rebate or tax exemption 

against positive taxable income, over 15 years. 

As with all aspects of project financing, 

it is important that professional advice be 

sought on infrastructure bonds and any 

associated implications, where they are 

potentially applicable. 


CASE STUDY 5 

the buckland –studio retreat 

The Buckland is an accommodation development of four studios 

complemented by a café/boutique function venue. The project is a 3½ 

hour drive from Melbourne and is located at the foot of the alpine area. 

Each studio is designed for a couple and features a luxury fit-out. 

The retreat is set in the stunning landscape of the Buckland Valley with 

views to Mt Buffalo. The popular regional tourist destination of Bright is 

only 10 minutes away. 


• The project concept was based on extensive market research by the developer that initially looked broadly 

at the ingredients that made luxury accommodation establishments successful and then at suitable locations 

(environment, destination, and landscape) that provided a market opportunity and affordable property prices. 

Statistical analysis was combined with field research of comparable businesses. 

• The site selected fitted the product image and market appeal desired. The spectacular views provided a unique 

setting. The location provided seclusion yet convenient access to both adventure and commercial facilities. 

The site area was sufficient for privacy for each studio and also for longer term development of later stages. 

• A business plan was developed early in the project’s conception. Initially the level of detail provided was sufficient 

for an in-principle funding approval. The plan was further detailed at a later stage for financial commitment and 

execution. The high level of detail in the business plan was critical to obtaining finance for the project. 

• The development approval process was lengthy and the proponent benefitted from early consultation with 

neighbours and the local government. A pro-active approach was adopted in pursuing the approval through a 

close association with local government staff and promptly dealing with issues raised. 

• The operators had a clear vision of the type of development that was desired. A close working relationship was 

established with the project architect who also managed the construction process. This relationship enabled the 

cost effective and timely translation of the vision to a reality. An environmentally sustainable design approach was 

incorporated in the concept. Control of the internal fit-out details remained with the operators. 

• Strong business relationships have been formed with wine and food producers, restaurants and recreation 

services in the area. This expands the potential offer to the visitor. 

• Considerable marketing was carried out before the project opened. Since opening, marketing has focussed on 

cultivating electronic and print media support, particularly outlets that are utilised by the target market. 

Buckland Valley, north east Victoria 


www.thebuckland.com.au 


construction 

Taking the project concept from approval to 

reality requires the coordinated input from a 

range of professions and services. 

The appointment of a project manager for 

this phase is desirable to ensure: 

• Effective coordination of the completion 

of the detailed design phase. 

• Competitive prices for construction are 

secured. 

• The construction phase is managed 

efficiently and cost effectively. 

Figure 11 describes the main activities 

in this phase. 

Detailed Design 

Approval of the concept design enables 

the project to proceed to detailed design. 

A qualified Architect may be engaged to 

co-ordinate the preparation of detailed 

documentation. Incorrect or inadequate 

documentation of the design can lead to a 

misinterpretation of the design intent and 

time and cost overruns. The design must 

meet regulatory and authority requirements 

and local design standards. Preparation 

of the documentation may involve the 

appointment of sub-consultants, as required 

(eg. engineers, environmental scientists, 

heritage advisors, quantity surveyors, 

landscape architects, etc). 

The content of this phase includes: 

• Detailed architectural drawings, structural 

design, building services design (cooling 

and heating, electrical services including 

lighting, hydraulic services including fire 

protection, lift services, security, information 

technology systems), building materials 

(internal, external, finishes and colours). 

Figure 11: project delivery flowchart 

DETaILED DESIGN 

Appoint 

Project Manager 

TENDERING/pRIcING 

Appoint 

Construction Manager 

• Interior design, fixtures and fittings 

and furnishings. 

• Site works including earthworks, fill and 

excavation, vegetation retention and 

removal, erosion remediation and 

land stabilisation. 

• Civil works including roads, car parks, 

pathways, service connections and 

distribution throughout the site, service 

areas, drainage and storm water 

management, waste storage and disposal. 

• Site landscaping, plant maintenance 

systems, water storage, fire hazard 

minimisation. 

• Signage and external lighting. 

Prepare Construction 

Documentation 

Site Establishment 

Compliance of Works 

Obtain Construction 

Approvals 

Seek Builder Selection Process Establish Contract 

cONSTRUcTION phaSE 

Construction 

Contact Closure 

All detailed design should address access 

and facility requirements for disabled 

persons, energy efficiency and sustainable 

development elements – alternative energy 

systems, water conservation and recycling, 

heating and cooling systems, recycled 

materials, waste management and recycling 

(see Sustainability Victoria website – 

www.sustainability.vic.gov.au). 

The detailed design phase should also 

examine the construction program and 

phasing of the development stages according 

to funds availability, market demand or 

related factors. Detailed design requires a 

further and more detailed cost assessment 

of the development by a quantity surveyor. 

This cost assessment may require further 

refinement of the detailed design to bring 

the project within a desired budget range. 


construction 

Construction Tendering / Pricing 

The most common method of engaging a 

builder (or other contractors) to undertake 

the required works is through a tendering 

process. There are a number of ways in 

which this process can be undertaken 

including the following: 

1. Selective tendering – where 3 or more 

contractors are invited to submit a 

proposal/fee. 

In this process, contractors may be 

selected from a pre-qualification list – 

which includes organisations that have 

previously submitted general company 

information through a Registration/ 

Expression of Interest process. 

Government departments generally 

utilise this method. 

2. Open tendering – where a general 

advertisement is placed in the paper, 

online and/or through an agency calling 

for a fee proposal. 

Project Construction 

Assuming all relevant approvals have been 

obtained, the key steps in the construction 

phase are: 

• Tendering – advertising, assessment/ 

negotiations and awarding the contract. 

• Site establishment – contractor gains access 

to site and sets up office/amenities and 

materials start to be delivered to the site. 

• Contractual construction phase – 

supervisor/project manager oversees 

the works. 

Once the project is ready to proceed, a 

construction manager should be appointed 

to oversee the works. This person coordinates 

the construction team (including 

the architect and contractors) on behalf of 

the client and is charged with the task of 

getting the project to a practical completion 

stage within budget and time limitations. 

Key roles may include: 

• Managing the selection and appointment 

of contractors. 

• Planning and managing the various 

building activities – via phone calls, emails, 

faxes, site inspections and site meetings. 

• Managing contract variations. 

• Processing claims for payment. 

While the Project Manager is primarily 

responsible for the coordination of all 

construction activities, the Architect plays 

an important role in this construction 

phase, as it is their design and vision that 

is being implemented. The Architect 

should undertake regular inspections of 

the construction works to ensure that the 

design intent is being interpreted correctly. 

This also allows them to rectify any issues as 

they arise. 

The Construction Manager has a principal 

responsibility to ensure that all OHS 

Standards on the construction site are 

satisfied and that the project program is 

met. In some regional locations the timely 

sourcing of materials, specialist contractors 

and delivery of specified fittings needs to 

be realistically factored into the 

construction program. 

The successful completion of the project 

construction phase can be influenced by 

a number of factors, which include: 

• Getting good advice throughout the 

process, including planning, quantity 

surveying and financial. 

• Selecting good contractors with a proven 

track record in the field. Do not select 

a contractor based on price alone. 

Undertake reference checks to verify 

prior experience and quality of work. 

• Having a realistic budget for the works 

that makes provision for unexpected 

cost increases. 

• Keeping design changes and variations 

to a minimum. 

• Following the correct processes and 

not cutting corners. 

table 18: what are the pricing traps that 

inexperiences investors often fall into? 

• Under budgeting, which may be due 

to a wide range of design (design 

complexity, unresolved details, selection 

of fittings, finishes or materials and 

other aspects) or site factors (ground 

conditions, vegetation, demolition/ 

remediation works etc). 

• Conservative quantity surveyor costs. 

• Cost escalation during construction, 

eg. fuel prices and materials, which may 

occur between the detailed design 

and construction phases or during 

construction. There are often many 

external factors that have an impact 

on prices. 

• Selecting a contractor based on a 

low price – this will often be due to a 

contract with no contingencies included, 

and will generally lead to price variations 

throughout the construction stage. 

• Under estimating the construction 

period (eg. due to bad weather) – which 

can lead to delays and escalating costs. 


Key success factors 

The conception and development of a 

successful and sustainable tourism project 

should have the following attributes: 

table 19: key success factors 

Point of Difference ✓ The project should be based on a good idea 

Quantified Market Demand ✓ Comprehensively research the market opportunity. 

Location, Location, Location ✓ The location should suit the proposed use and enhance appeal. 

Sustainable Design ✓ Design for your customers, the environment, the surrounds and the budget. 

Manage the Approvals Process ✓ Understand approval processes and consult broadly to minimise delays. 

Financial Feasibility ✓ Test the financial viability of the project and identify risk areas. 

Sound Business Plan ✓ To obtain financial support detail your plan for the business to succeed. 

Effective Construction Management ✓ Ensure management of all construction activities to deliver it on time and budget. 

Experienced Specialist Advisors ✓ Choose experienced specialists to advise and assist in the project throughout its 

various stages. 

Royal Mail Hotel, Dunkeld. 


appendices 

appendix A 

Summary - 10 Year Tourism & Events Industry Strategy 

objective 

A. 

B. 

Building upon existing strengths. 

Develop new strengths. 

C. Focus on long-term 

growth opportunities. 

D. Strengthen the partnership 

between Government and 

Industry. 

Actions 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

9. 

Improving the branding and marketing of Victoria. 

Major events. 

Aviation access. 

Infrastructure development. 

Investment attraction and facilitation. 

Skills and service standards. 

Third generation customer conversion services. 

Emerging international markets. 

Business events acquisition. 

10. Regional destination development. 

11. Building synergies between tourism and 

international education. 

12. Promoting better decision-making. 

13. Coordination and policy advocacy. 

14. Communication. 

key activities 

• Soundly researched based marketing campaigns. 

• Complement national campaigns effectively. 

• Respond to contemporary influences. 

• Target high yield markets. 

• Actively support and pursue the retention, acquisition, staging 

and management of major events. 

• Pursue further Network Development Agreements with high 

value carriers. 

• Strengthen efforts on international aviation policy 

development and access advocacy. 

• Ensure the tourism and events industry needs are considered 

in the planning of major infrastructure projects. 

• Expand private investment into tourism assets, particularly from 

international sources. 

• Continue implementation of the Tourism Excellence Program. 

• Prepare a Workforce Development Plan for the tourism 

industry. 

• Maintain Tourism Victoria’s leadership in on-line services 

through innovation and new technology applications. 

• Assist the industry to develop its on-line capability. 

• Support development (infrastructure, skills, and products) that 

meets the needs of potential international markets. 

• Target emerging Asian markets, particularly China. 

• Strengthen the capacity of the Melbourne Convention and 

Visitors Bureau to capture business events. 

• Improve business event attraction 

in regional Victoria. 

• Continue implementation of the Government’s regional 

economic strategy – Moving Forward, Making Provincial Victoria 

the Best Place to Live, Work and Invest. 

• Convene a Regional Tourism Summit to address regional 

tourism issues. 

• Assist educational organisations in the promotion of Melbourne 

as an attractive study destination. 

• Promote a Destination Management approach to Victoria’s 

tourism and events industry through whole-of-government 

decision making. 

• Establish a Victorian Tourism and Events Advisory Council to 

oversee implementation of the 10 year Strategy. 

• Strengthen the role of local government through expanded 

Regional Tourism Development Plans and acquisition of 

necessary industry skills. 

• Advocate Victoria’s interests at the Commonwealth level. 

• Continue programs to communicate the economic significance 

of tourism. 

• Develop a communications strategy to highlight the importance 

of the tourism and events industry. 


appendices 

appendix B 

sustainable design and construction for tourism development 

Tips for Sustainable Design and Construction for Tourism Developments 

Energy Conservation 

• Incorporate passive solar design principles 

to maximise day-lighting and passive heating 

opportunities. 

• Incorporate energy efficient design principles 

to minimise active heating and cooling 

requirements. 

• Specify energy efficient equipment and 

lighting systems. 

• Provide efficient control and effective 

maintenance systems, including monitoring of 

energy consumption. 

• Optimise opportunities to use renewable 

energy sources and incorporate renewable 

energy technologies wherever possible. 

• Minimise embodied energy in construction 

materials. 

Water Conservation 

• Facilitate opportunities for on-site treatment 

and reuse of grey-water and black-water 

(sewage) streams 

• Minimise water consumption through practices 

such as: 

–– installing rain water and storm water 

collection tanks. 

–– installing reuse systems for grey water 

–– providing water efficient facilities and 

equipment. 

–– providing effective monitoring and 

maintenance systems. 

Minimisation of Fossil Fuel Usage 

associated with Transport 

• Facilitate staff access to public transport. 

• Encourage cycling by providing showering and 

storage facilities. 

• Facilitate the use of appropriate 

communication technologies, such as tele- and 

video conferencing facilities. 

• Minimise on-site car parking facilities. 

• Minimise transport distances involved in the 

demolition, recycling, construction, fit-out and 

operational phases of the project. 

Preserve Natural Features of Site 

• Avoid development on sites or sections 

of sites of high ecological value. 

• Minimise disturbance to site and regional 

ecosystems during construction and operation. 

• Restore land equivalent to the area disturbed 

by the building and where possible the 

ecological footprint associated with operational 

activities. 

Building Materials Conservation 

• Modify existing facilities to serve new 

requirements and reuse existing materials. 

• Minimise building materials produced from 

limited or ecologically unsustainable natural 

resources. 

• Minimise building materials that have 

damaging ecological effects during harvesting, 

manufacturing, and/or construction. 

• Minimise the use of building materials 

with high embodied energy. 

• Minimise life cycle costs through using materials 

and equipment requiring minimal maintenance 

and with maximised expected useful life. 

• Maximise the use of recycled content material 

where there is a cost difference 

of less than 5%. 

Waste Minimisation 

• Maximise building longevity through creation of 

flexible and readily adaptable designs. 

• Provide facilities to assist office waste 

separation into reusable, recyclable, 

compostable and landfill components. 

• Minimise construction waste going to land fill 

through a material tracking system. 

• Incorporate organic and water-based site 

waste disposal systems into landscaping design. 

Enhancement of Indoor 

Environmental Quality 

• Minimise all work spaces exposed to glare and 

excessive lighting. 

• Provide all building occupants with a view to 

the outside. 

• Use air conditioning systems that allow for the 

supply of fresh outside air. 

• Shield all building occupants from 

Electromagnetic Radiation (EMR) sources. 

Appropriate Landscaping 

• Design landscaping to facilitate year round 

moderation of the internal climate. 

• Minimise erosion potential. 

• Plant indigenous flora, and where appropriate, 

food-generating plants. 

• Design landscaping to allow external meeting 

and break out areas. 

• Maximise the reuse on site of all rock and 

topsoil emanating from excavations work. 

• Maximise the use of recycled compost, soil 

conditioners and mulches. 

Enhance Community Life 

• Involve the local community appropriately in 

the design process. 

• Respect, reflect and integrate the development 

with the surrounding culture and activities of 

the district. 

• Create facilities that are accessible and available 

for community use. 

• Purchase local products and services where 

possible. 

Maintenance 

• Provide legal structures (building leases, 

maintenance agreements, strata titles and 

tenancy agreements) to preserve the 

environmental performance of the building. 

Adopted from DSE’s ESDC Principles and Guidelines for Capital Works Projects 


appendices 

appendix C 

key organisations 

Aboriginal Affairs Victoria 

Department of Planning and 

Community Development (DPCD) 

GPO Box 2392 

Melbourne VIC 3001 

Phone: 1300 366 356 

www.dpcd.vic.gov.au/aav/ 

Alpine Planning Unit 


Community Development, 

North East Region 

89 Sydney Road 

BENALLA VIC 3672 

Phone: 03 5761 1611 

Australian Institute of 

Landscape Architects 

Level 1, 41 Exhibition Street 


Phone: 03 9650 1898 

Fax: 03 9650 3360 

Email: aila@raia.com.au 

www.aila.org.au 

Australian Bureau of Statistics 

GPO Box 2796Y 

MELBOURNE VIC 3000 

Phone: 1300 135 070 

Fax: 1300 135 211 

Email: client.services@abs.gov.au 

www.abs.gov.au 

Australian Market 

& Social Research Society 

Level 1, 3 Queen Street 

Glebe NSW 2037 

Phone: 02 9566 3100 

Fax: 02 9571 5944 

Email: mrsa@mrsa.com.au 

www.mrsa.com.au 

Australian Sustainable 

Built Environment Council 

20 Bryant Street, 

FLEMINGTON VIC 

info@asbec.asn.au 

www.asbec.asn.au 

Business Victoria 

121 Exhibition Street 


Phone 13 22 15 

Fax: 03 9651 9770 

Email: enquiries@iird.vic.gov.au 

www.business.vic.gov.au 

Consumer Affairs Victoria 

(Liquor Licensing) 

Level 2, 452 Flinders Street 


Phone: 1300 55 81 81 

Email: consumer@justice.vic.gov.au 

www.consumer.vic.gov.au 

Department of Infrastructure 

GPO Box 2797 


Phone: 03 9655 6666 

Fax: 03 9655 6762 

www.doi.vic.gov.au 


Community Development (DPCD) 

GPO Box 2392 


Phone: 1300 366 356 

www.dpcd.vic.gov.au/aav/ 

Department of Primary Industries 

GPO Box 4440 


Phone 03 9658 4000 

Email: customerservice@dpi.vic.gov.au 

www.dpi.vic.gov.au 

Department of Industry Innovation 

and Regional Development 

Invest Victoria 

GPO Box 4509 


Phone: 03 9651 8100 

Fax: 03 9651 9531 

Email: invest@iird.vic.gov.au 

www.invest.vic.gov.au 

Department of Sustainability 

and Environment 

8 Nicholson Street 

EAST MELBOURNE VIC 3002 

Phone: 03 9637 8000, 13 61 86 

www.dse.vic.gov.au 

Environment Protection Authority 

Information Centre 

H&WT Tower 

40 City Road 

SOUTHBANK VIC 3006 

Phone: 03 9695 2722 

Fax: 03 9695 2785 

www.epa.vic.gov.au 

GBCA Melbourne 

Level17, 

500 Collins Street, 


Phone: 03 8612 2000 

Fax: 03 9614 8338 

www.gbca.org.au 

GWM Water 

PO Box 481 

Horsham VIC 3402 

Phone: 1300 659 961 

www.gwmwater.org.au 

Goulburn-Murray Water 

PO Box 165 

Tatura VIC 3616 

Phone: 03 5833 5500 

www.g-mwater.com.au 

Heritage Victoria 

and Heritage Council 

Level 22, 80 Collins Street 


Telephone: 03 9655 6519 

www.heritage.vic.gov.au 

Lower Murray Water 

PO Box 1438 

Mildura VIC 3502 

Phone: 03 5051 3400 

www.gwmwater.org.au 

Municipal Association of Victoria 

GPO Box 4326PP 


Phone: 03 9667 5555 

Email: inquiries@mav.asn.au 

www.mav.asn.au 

Parks Victoria 

10/535 Bourke Street 


Phone: 03 8627 4699 

Fax: 03 9629 5563 

www.parkweb.vic.gov.au 

Planning Institute of Australia 

60 Leicester Street 

Carlton VIC 3053 

Phone: 03 9347 1900 

Fax: 03 9347 2900 

Email: vic@planning.org.au 

www.planning.org.au 

Property Council of Australia 

Level 7, 136 Exhibition Street 


Phone: 03 9650 8300 

Fax: 03 9650 8693 

www.propertyoz.com.au 

Regional Development Victoria 

GPO Box 4509 


Phone: 13 22 15 

Email: enquiries@iird.vic.gov.au 

www.business.vic.gov.au 

www.iird.vic.gov.au 

Royal Australian Institute 

of Architects 

1st floor , 41 Exhibition Street, 


PO Box 18025 

Phone: 03 8620 3866 

Fax: 03 8620 3886 

national@raia.com.au 

www.architecture.com.au 

Southern Rural Water 

PO Box 153 

Maffra VIC 3860 

Phone: 03 5139 3100 

www.srw.com.au 

Sustainability Victoria 

Level 28, 50 Lonsdale Street 


Phone: 03 8626 8700 

Fax: 03 9663 1007 

www.sustainability.vic.gov.au 

Tourism Alliance Victoria 

Level 3, 114 Flinders Street 


Phone: 03 9650 8399 

Fax: 03 9650 8543 

Email: info@tourismalliance.com.au 

www.tourismalliance.com.au 

Tourism Australia 

Level 4, 80 William Street 

East Sydney NSW 2000 

Phone: 02 9360 1111 

Fax: 02 9361 1388 

Email: corpaffairs@tourism.australia.com 

www.tourism.australia.com 

Tourism Research Australia 

PO Box 1110 

Belconnen ACT 2616 

Phone: 02 6228 6100 

Fax: 02 6228 6180 

www.tra.australia.com 

Tourism Victoria 

32/121 Exhibition Street 


GPO Box 2219T 


Phone: 03 9653 9777 

Fax: 03 9653 9722 

www.tourismvictoria.com.au 

VICROADS 

Head Office Administration 

60 Denmark Street 

Kew VIC 3101 

Phone: 13 11 74 

www.vicroads.vic.gov.au

Tourism Investment Guidelines: Your Guide to - Tourism Victoria

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