Evaluating Destination NSW Strategies for Visitor Economy Growth

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This report evaluates the strategies employed by Destination NSW to enhance the visitor economy of New South Wales. It examines key aspects such as infrastructure development, stakeholder engagement, risk management, and marketing initiatives. The report highlights Destination NSW's various services, including brand management, funding for tourism activities, and strategic partnerships. The analysis reveals that Destination NSW has implemented various strategies, including investment in infrastructure, stakeholder engagement, and marketing campaigns. The report also identifies areas for improvement, such as addressing infrastructure issues, enhancing stakeholder relationships, and improving product marketing. Recommendations include fostering collaboration, developing a state-wide infrastructure strategy, and leveraging digital strategies to boost the visitor economy. The ultimate goal is to increase overnight visitor expenditure and boost the state's economy. The report provides a comprehensive overview of Destination NSW's efforts to drive tourism growth and economic benefits for the region.
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Title: Role of Destination NSW (Destination agency) in increasing the visitor economy of a region, city
or country
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Contents
1. Executive Summary.......................................................................................................................1
2. Introduction..................................................................................................................................1
3. Strategies implemented by Destination NSW..............................................................................2
3.1 Destination NSW...................................................................................................................2
3.2 Infrastructure........................................................................................................................3
3.3 Principles and practices.........................................................................................................3
3.4 Stakeholders..........................................................................................................................3
3.5 Risk management..................................................................................................................4
3.6 Promotion and support.........................................................................................................5
4. Conclusion.....................................................................................................................................5
5. Recommendations........................................................................................................................5
6. Reference list................................................................................................................................6
7. Appendices....................................................................................................................................8
1.Executive Summary
The main purpose of this report to evaluate the strategies which have been deployed by
Destination NSW organization in increasing the visitor economy of NSW. The findings of
this report stated that the agency should improve its infrastructure, marketing, and
stakeholder engagement strategies in order to achieve increase visitor economy. The scope of
this study is to focus only on principles, practices, stakeholders, risk management and
marketing strategies of Destination NSW agency. In this report, some recommendations have
been provided to the agency that will help it to double overnight visitor expenditure by 2020.
2.Introduction
Visitor Economy includes communities and business organization which benefit from the
indirect and direct economic activity generated through various initiatives that support the
provision of services and goods to overnight visitors(Havi, 2013). Visitor’s economy reflects
the current transition in the way used to manage the destinations (Hristov, 2015). Destination
NSW (New South Wales) has established under the Destination NSW act 2011 in order to
achieve social and economic advantages for the people of NSW through the development of
tourism. The main purpose of this report is to evaluate the strategies which have been
implemented and articulated by Destination NSW agency to increase the visitor economy of
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NSW. This report outlines the infrastructure, stakeholders, risk management, principles and
practices, promotion and support that the agency provides for the destination in a detailed
manner.
3.Strategies implemented by Destination NSW
3.1 Destination NSW
The establishment of Destination NSW has merged four government-funded entities named
as the Greater Sydney Partnership, the Homebush Motor Racing Authority, Tourism NSW
and Events NSW into a single entity(NSW, 2018). The major responsibility of Destination
NSW agency is to implement and devise effective strategies to increase visitor economy of
state(Souris, 2012). It is the major investor in Business Events Sydney with an objective to
secure international conventions, corporate events, incentive travel reward programs for
regional and Sydney NSW(NSW, 2018). Presently, Destination NSW is offering a variety of
services to increase visitor economy such as
1. Brand development and management
2. Destination development assistance
3. Funding for tourism activities and tourism activities
4. Visual resources – photography and footage
5. Regional conferencing
6. Major event investment, evaluation, and acquisition
7. Product development advisory services
8. Strategic partnership programs
9. Market and business development programs
10. Market research and insights etc.
The mission of Destination NSW is to double overnight visitor expenditure in order to boost
the state’s economy by 2020. In simple words, the destination agency wants to achieve a total
of $36.6 billion in overnight visitor expenditure/annum by 2020. NSW government has
launched a flagship plan to increase tourism from China in NSW that will help the state to
double overnight visitor expenditure by 2020. The flagship plan is also referred to as “China
Tourism Strategy (2012-2020). This plan enhances various tourism areas such as business
growth in 4 primary China source markets, aviation and route development, business events,
targeting high performing consumer segments, etc. Destination NSW has decided to build
world-class visitor experience for Chinese visitors. In 2012, the count of Chinese visitors in
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NSW has been increased by 60% with the implementation of the China Tourism industry
(Writer, 2012).The current annual growth of the organization is 2.2% only, hence the
organization will be required to increase overnight visitor expenditure.Destination NSW has
launched the Western Sydney Visitor Economy Strategy as a strategic framework in August
2016 to increase visitor economy.
3.2 Infrastructure
NSW government has been investing in sports in order to fulfilthe demands of its
users(SOURIS, 2012). In order to drive growth in the visitor economy, the NSW government
has invested in major events for various stadiums like rectangular Western Sydney Stadium
at Parramatta, Sydney Football Stadium at Moore Park(Crilley, Weber & Taplin, 2012). This
initiative of the NSW government increases social and economic benefits of strong cultural
and sports sector which will further improve the liveability of citizens and the entire NSW
community. According to the Tourism Research Australia’s Tourism Investment report 2017,
Destination NSW has invested 36% in tourism pipeline, 27% in accommodation and 32% in
recreation, arts and business services(NSW, 2018). Currently, Destination NSW agency has
been faced some infrastructure and cross-border issues due to poor strategic engagement and
planning. Along with this, it is highly challenging for the agency to improve the supply of
visitor accommodation and secure funding(Destination NSW, 2018).
3.3 Principles and practices
Destination NSW has committed to offering a supportive, productive and harmonious
environment for its valuable end users. It has been reviewed grievance management policy
and procedures including issues, grievances, resolution of complaints, etc. to ensure best
practices have been implemented(Quinn, 2016). The monthly wages have been provided to
staff members based on NSW Wages policy taskforce. The destination agency encourages
and welcomes applications from all groups including LGBTI, Indigenous people, people with
disability, etc. Along with this, the agency is used multi-cultural policies and services plan to
promote the economic and social participation of destination visitors. It supports the policy of
the NSW Government on Aboriginal Employment by offering significant support to
Aboriginal tourism events & operators as a part of the sponsorship, product development and
investment activities(Chipchase, 2013).
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3.4 Stakeholders
Event Delivery Manager, Event Organizers, Local Councils, NSW Government Agencies,
Local Communities. Venue Managers and Owners, Suppliers, Consultants, Contractors,
Visitors, Customers, Airline organizations, etc. are key stakeholders of Destination NSW
Agency. By reviewing the sports and strategic event report 2017, it has been found that it is
difficult for the agency to maintain effective working relationships and networks with
government agencies, stakeholders and event proponents due to poor stakeholder
engagement.It would be difficult for the destination agency to achieve its goals and objectives
if its stakeholders do not participate actively in the business.
3.5 Risk management
An Audit and Risk Committee is responsible for managing risks by reviewing audit reports,
endorsement of internal and external audit plans and reviewing risk assessment and
management. In the reporting year, the destination agency has completed four audits such as
1. Enterprise risk assessment
2. Stakeholder communications
3. Funding – Destination networks
4. Event Funding – Lifestyle portfolio
The aim risk management plan of Destination NSW is to safeguard the public, buildings, staff
and related assets(NSW, 2018). Risk controls include:
Figure-1 Risk controls
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3.6 Promotion and support
The agency has secured a series of strategic partnerships with 235 travel trade partners and
23 airlines in 2017-2018 to promote regional and Sydney NSW destinations and event at a
national and international level. It has delivered programs in Hong Kong, China, USA, Japan,
New Zealand, Singapore, the UK, and Japan through this partnership which has generated
estimated $28.1 million growth in visitor economy(NSW, 2018).Moreover, Destination NSW
agency has delivered acollaborative and integrated marketing campaign in 2017-2018 with
tourism industry partners to maintain its position as the number one events and tourism state
in Australia by investing in major events like Vivid Sydney Festival. During this festival,
112,753 domestic packages were sold which positively affect visitor economy in NSW. This
domestic marketing has delivered more than 153,000 visits to visitnsw.com, 8000 leads to the
NSW tourism industry and 1.5 million video views(NSW, 2018). Currently, the destination
agency uses various social media channels like Facebook, Twitter, Instagram, YouTube to
target its visitors at a global level. Destination NSW could not achieve its mission and vision
through domestic campaigns and strategic partnership only.
4.Conclusion
This report summarized principles, practices, stakeholders, risk management and marketing
strategies of Destination NSW agency in a detailed manner. The findings of this report stated
AssessingcorporateriskandconductinternalauditsManageongoingriskValuingassetsDevelopingriskstrategiesMaintainingadequateinsurancecoverwiththeTresuryManagedFundwhichcoverallclassesofriskReviewfinancialmanagementprocesses
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that destination agency should overcome issues associated with poor stakeholder
engagement, poor planning, weak product marketing, and limited infrastructure. All these
issues can be resolved by 2020 if the destination agency will follow the below-mentioned
recommendations:
5.Recommendations
It has been recommended to Tourism Australia, State Tourism Bodies, Adjacent local
government agencies, and the cross-border commissioners to work collaboratively
with each other to facilitate cross border infrastructure and marketing.
The existing infrastructure issues can be mitigated by developing a state-wide tourism
infrastructure strategy that will help the agency to guide investment in nature-based
and state-owned tourism inclusive, cultural, scientific, entertainment and recreation
facilities.
The agency should start work with the private rental sector in order to improve the
demand (supply) of visitor accommodation against the projected demand.
In order to enhance visitor economy, Destination NSW should secure its funding by
following ‘Restart NSW fund’ to upgrade and develop regional airports.
It has been recommended to Destination NSW to develop a digital strategy to
accelerate emerging market and improve customer experience. The agency should use
the Visitor Economy Index to analyze customer preferences through big data that will
help the organization to make better strategic decisions.
The destination networks should regularly report whether stakeholders perform their
tasks as per the designed stakeholder engagement plan or not.
6.Reference list
Chipchase, S. (2013). Aboriginal Tourism Action Plan 2017-2020
[Ebook]. Retrieved from https://www.destinationnsw.com.au/wp-
content/uploads/2017/11/aboriginal-tourism-action-plan-2017-
2020.pdf?x15361
Crilley, G., Weber, D., & Taplin, R. (2012). Predicting Visitor Satisfaction
in Parks: Comparing the Value of Personal Benefit Attainment and
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Service Levels in Kakadu National Park, Australia. Visitor Studies,
15(2), 217-237. doi: 10.1080/10645578.2012.715038
Destination NSW. (2018). Visitor Economy Industry Action Plan 2030
[Ebook]. Retrieved from
https://www.industry.nsw.gov.au/__data/assets/pdf_file/0003/172
092/Visitor-Economy-Industry-Action-Plan-2030.pdf
Havi, E. (2013). THE IMPACT OF TOURISM ON ECONOMIC
PERFORMANCE IN GHANA. European Scientific Journal, 9(34).
Retrieved from
http://eujournal.org/index.php/esj/article/viewFile/2173/2058
Hristov, D. (2015). Tourism Versus the Visitor Economy and the Shifting
Landscape of Destination Management. An International
Multidisciplinary Journal Of Tourism, 10(1). Retrieved from
https://www.researchgate.net/publication/289505356_Tourism_V
ersus_the_Visitor_Economy_and_the_Shifting_Landscape_of_Desti
nation_Management
NSW, D. (2018). Destination NSW ANNUAL REPORT 2017-2018 [Ebook].
Retrieved from
https://www.destinationnsw.com.au/wp-content/uploads/2018/11/
destination-nsw-annual-report-2017-2018.pdf?x15361
NSW, D. (2018). Event Planning and Liaison Officer, Sport, and
Strategic Events [Ebook]. Retrieved from
https://www.destinationnsw.com.au/wp-content/uploads/2018/06/
role-description-event-planning-and-liaison-officer-sport-
strategic-events.pdf
NSW, D. (2018). Travel to NSW to Visit Friends and Relatives [Ebook].
Retrieved from
https://www.destinationnsw.com.au/wp-content/uploads/2018/04/
vfr-to-nsw-ye-dec-17.pdf?x15361
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Quinn, T. (2016). Visitor Economy exports worth $45 billion in 2015-16
- Austrade. Retrieved from
https://www.austrade.gov.au/news/economic-analysis/visitor-
economy-exports-worth-45-billion-in-2015-16
Research Branch, T. (2018). INTERNATIONAL EDUCATION WITHIN THE
VISITOR ECONOMY [Ebook]. Retrieved from
https://www.business.vic.gov.au/__data/assets/pdf_file/0006/1730
337/International-Education-within-the-Visitor_Economy-Report-
for-Year-Ending-December-2017.pdf
Souris, G. (2012). Retrieved from
https://www.destinationnsw.com.au/wp-content/uploads/2013/10/
NSW-visitor-economy-taskforce-report.pdf?x15361
Writer, S. (2012). Destination NSW launches China tourism strategy -
Spice News: Special Events, Product Launches, Incentives,
Conferences, Exhibition. Retrieved from
https://www.spicenews.com.au/industry-news/business-tourism-
news/destination-nsw-launches-china-tourism-strategy/
7.Appendices
Visitor economy industry action plan 2030 for Destination NSW
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International overnight visitor travel in 2017
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