Full Report - Port Douglas Chamber of Commerce

© MBS MBA 2012 Student Project – Revitalising Port Douglas 

Port Douglas 

Strategic Plan 

Integrative Project 2012 

Final Report 

6 th April 2012 

Shared Vision 

One Voice

Report Considerations 

• This report was prepared as part of the Melbourne Business School , Master Of 

Business Administration “elective course” - Integrative Projects 

– The project forms part of the student assessment for the degree 

– Students paid full fees to attend the course and for travel to Port Douglas 

– Accommodation and transport was provided by some generous citizens 

• The report represents the objective analysis of the students based on the limited 

available research / data for Port Douglas and on input from over 140 Port Douglas 

citizens 

• The report is solely for the purpose of assessing the students performance as part 

of their academic learning and is provided to Port Douglas Chamber of Commerce 

for its use to guide the “Revitalisation of Port Douglas” 

• Any third party relying on this report is responsible for validating the analysis. 

Neither the Melbourne Business School nor its students are liable for any 

consequences arising from the use of this report by third parties 

The MBS, its students, faculty and alumni thank the citizens of Port Douglas for 

the opportunity to undertake this project and especially to all the individuals 

who gave so generously of their time to provide input and insight to the project 


1

Many citizens, businesses, students and alumni contributed to the 

thinking, insights and analysis for “Revitalising Port Douglas” 

Alex Preuss Gordon Wellham Martin Tranter Stephen Nutt Maximillian Crosseman 

Amelia Hannaford Greg McClean Matt Churchill Stephen Warden Micheal Thadani 

Andy Taylor Iain and Fiona Colmore Matthew Hurley Steve Edmonson Mushfiqur Rahman 

Annetta Tantanis Ian Johnston Michael J. Gabour Steve Thomas Natasha Ahuja 

Anthony Dickinson James Elliot Michelle Howarth Sun Palm Per Johan Olson 

Backpackers Jeff Gale Natalie Johnson Terry Hooper Peter Cook 

Bar Staff Jenni Natalie Stone The Pavilions Port Douglas Priji Vijayakumar 

Billy Quaid Jennifer Hill Oriel Wild Tom Klinger Ravisha Sellahewa 

Bob Brown John and Carolyne Pam Willis Toni & Bruno Bennet Robert Pica 

Brett Hall John and Sue Paula Johnson Toni MacNamara Samuele Romani 

Bruno John Carney Peter Jones Tony McInnes Sebastian Spiez 

Callum Jones John McLean Peter Watts Trevor Hurst Ta Luong 

Chelsea Mee John Willis Pheobe Tourists Vaibhav Saxena 

Cheryl Griffith Josh Phil Holloway Val Schier Victoria Tee 

Chris Dahlberg Julia Lieu Philip Davey Wes and Kristein Connelly Vivienne Gibson 

Claire Tierney Julie Bell Phoebe Kitto Wendy Morris Ziying Hu 

Damian Passlow Karen Burchill Port Douglas Weddings Rob Za Harrison Clara Chen 

David Cotton Katrina Houghton Restaurant Owners Allan Bradley Rocky Armstrong 

Deli Owner Keithea Schaedler Rhys Bawden Anna Balawander Steve Stewart 

Don Morris Ken Dobbs Rick Staunton Bhavna Singh Elena Kuhn 

Don Murday Kevin Eldridge Rob Cooke Brady Gavin John Onto 

Doug Calvert Lachlan Walker Rob Shiels Christpher Betts Omeed Rameshni 

Doug Ryan Leona Brown Roy Weavers Craig Mclure Daniel Ho 

Evelyn Matthews Liz Collyer Russell David Sakti Angela Dickinson 

Fiona Wilson Liz Johnson Saltwater Apartments Felicia Siddharta Olga Rudenko 

Frank Frikker Louise Polain Sam Cullen Gal Caspi Adam Walkom 

Gary Hunt Mandy Stone Shane Branch Grace Ying Milosh_Milisavljevic 

Gaye Scott Marco Piat Soula Kazakis James LeCouture Cameron Leitch 

Glenn Smith Marianna and Luigi Stephen Nutt Jonathan Barlow Selwyn D'Souza 


2

Table of Contents 


Executive summary 

Context 

1 

2 

3 

4 

Growth and Development 

Key Challenges 

Key Strategic Initiatives 

Alignment & Leadership 

Appendices 

A1 

A2 

A3 

Citizen Contributions 

Terms of Reference 

Workstream Analysis 

3

Port Douglas citizens must understand the root causes of its historical 

performance .... 

I 

II 

Growth and development was underpinned by unique natural assets and 

major investment but has seen a significant decline in the last 5 years 

• Port Douglas has a unique natural environment and an economy dependent on 

tourism 

• 2006 marked a material (20%) collapse in the tourism market and untimely 

investment in cheap accommodation assets 

• This has resulted in Port Douglas underperforming some competitors and 

exposing inherent competitive weaknesses 

Community leaders and citizens must confront and overcome several major 

challenges to restore Port to its former glory 

• Port Douglas does not have a coordinated response to the decline and 

stakeholder groups have different agendas 

• Port Douglas is in a downward spiral on the road to “Tourist massification” 

(dilution or loss of premium destination status) 

• Marketing is underfunded, constrained by Tourism Queensland and alignment 

with tourist expectations can be improved 


4

… and secure commitment for its Strategic Plan and to the leaders 

selected to drive revitalisation 

III Long term goals must be established and can be achieved by implementing 

four strategic initiatives 

• S1 – Drive Tourism Growth: Focus the breadth and depth of Port resources to 

restore the allure of Port Douglas 

• S2 – Focus Marketing: Target key market segments that will drive growth and 

reverse the “massification” trend 

• S3 – Stimulate Investment: Secure “public” investment and create 

environment to attract private investment 

• S4 – Call to Immediate Action: Agree and implement action to rebuild the 

“heart and soul” of Port Douglas 

IV 

Delivering revitalisation and growth will require a strong coordinated 

approach and a team of leaders that have explicit support of the citizen 

• Implement a process to secure buy-in from all key stakeholders and the 

willingness to take outlined actions 

• Establish the governance structure and leadership required to drive the 

strategy 

• Agree actions plans, systems and processes to manage and monitor progress 


5




Context 

1 

2 

3 

4 





Appendices 

A1 

A2 

A3 




6

Port Douglas has overcome many obstacles but is again facing a 

tough economic outlook and needs revitalisation 

1981 1984 1988 1989 1994 2000 

2006 2007 

The Great 

Barrier 

Reef was 

inscribed 

on the 

World 

Cairns 

Heritage 

International 

List. 

Airport 

opened 

Sheraton 

Mirage Resort 

opened 

Pilots’ 

Dispute 

60 

50 

40 

30 

20 

10 


Occupancy Rate (%) 

0 

Takings Per Room Night – Occupied ($) 

250 

200 

150 

100 

50 

0 

Hurricane Rewa 

(100 km off Coast) 

Cyclone 

Steve 

Cyclone 

Larry 

YASI 

2011 

GFC 

7

In Nov 2011, the MBS proposed to undertake a student project to 

Revitalise Port Douglas 

Port Douglas - The Next Phase - A proposal 

• The possibility exists to bring a group of final year graduate management students from Australia’s leading business school to Port Douglas with the intention of delivering 

to the Chamber of Commerce a strategic and action plan leading to the economic resurgence of the town. Dr John Onto was formerly on the full time faculty of the 

Melbourne Business School (University of Melbourne) and has a continuing relationship with the School. For the past several years he and his wife, Judy have been 

visiting Port for various lengths of time and have now completed building a home in The Lake. Both have an interest in seeing the town restored as a preferred destination 

for tourism. John and Judy do not have any direct business interest in Port nor is any contemplated. 

• The Melbourne Business School (MBS) offers as part of its final year MBA program an elective unit, “Integrative Business Projects.” This unit provides students with the 

opportunity of bringing together their learning in an applied and socially valuable way. Professor Onto has now gained the interest of his colleagues in this proposal. No 

commitments on behalf of any potential Port Douglas stakeholders have been entered into. 

Organization of Project 

• Up to thirty students would undertake the project in groups of 4 or 5, each group focusing on an element of the strategic plan. 

• Phase 1 would be based on secondary research focusing on historical, economic and regional dynamics that have shaped the development of Port. 

• Phase 2 would be primary research involving a visit to Port by the students, meeting with The Chamber and its key constituents as well as other key stakeholders still to 

be identified. This phase would occupy an estimated 4 or 5 days. 

• Phase 3 would be a detailed presentation of reports that would be completed by the groups following their return to MBS. These reports would be written documents and 

direct presentations, probably utilizing videoconference facilities. 

Program leadership: 

• An MBS faculty member working with the student groups will direct the unit itself. This faculty member has been identified and is himself a leading strategy consultant and 

lecturer well known to John. John would act on a pro-bono basis as liaison between the Chamber and MBS. Additional direction of the program is anticipated from a 

national professional services firm that has been approached on a preliminary basis by the School as a program sponsor. 

Class profile 

• Typical MBS graduate students are all very experienced in a range of organizations. The average age is 30 with an avergae of seven years of full-time organizational life 

prior to program entry. They would bring strong practical, and theoretical orientations to this project. 

Sponsorship 

• MBS contribution: In addition to the intellectual capital that would be provided, (students and faculty) the School has made a preliminary approach to a national 

professional services firm to provide mentoring and financial resources for the program. The aim is to subsidize and hopefully cover the airfares of the students. 

• Port Douglas sponsorship. It is expected that local support would be garnered to cover accommodation and transport costs to and from Cairns airport. 

• Indirect student sponsorship: the students themselves already pay very substantial fees to undertake the MBA program. 

Proposed timing 

• Given the tourist year, the current proposal envisages this program being completed during term one of 2012, i.e. sometime between mid-January and late March. This 

should minimize the opportunity costs of transport and accommodation. 

Next steps 

• MBS now seeks an indication of interest from the Port Douglas Chamber of Commerce. If the Chamber were attracted by this opportunity, the next step will be to develop 

a brief addressing the primary interests of the Chamber and which can be readily formulated into various project components. The School will be signaling to final year 

students the selected project for 2012 during the next four-to-six weeks and will also be taking preliminary sponsorship approaches forward. 

• Both students’ interest and sponsorship targets are influenced by the nature of the project finally identified. 

• Additional information can be provided as required. 

Dr. John Onto 


8

Recoginising the problems the CoC agreed for the MBA MBS students 

to develop a Strategic Plan to guide Revitalisation of Port Douglas 


What 

Why 

When 

How 

Who 

Develop a comprehensive Five Year Strategic Plan 

for “revitalising Port Douglas” 

Since the GFC the Port and surrounding region have 

seen a significant decline in the economic and social 

infrastructure. There is consensus that a turnaround 

plan is required. 

The Plan will be developed during the period Feb to 

Apr 2012 

Develop a clear understanding of the issues and 

challenges through analysis of available information 

and engagement with key stakeholders. On this 

basis strategies for turnaround will be developed. 

The Project will be undertaken by MBS MBA students 

under the guidance and mentorship of faculty and 

alumni of the MBS; Business and Community 

leaders will be closely involved in the project 


Key deliverables 

Revitalisation Plan identifying 

the key initiatives 

and activities that Port 

Douglas must implement 

Leadership structures 

required to “lead” and “coordinate” 

revitalisation 

Public and Private funding 

requirements to deliver 

sustainable outcomes 

Systems and Processes 

to track and manage 

performance 

9




Context 

1 

2 

3 

4 





Appendices 

A1 

A2 

A3 




10

I 

Growth and Development of Port Douglas 


• Port Douglas has a unique natural environment and an 

economy dependent on tourism 

– Outstanding natural assets including the Great Barrier 

Reef, Daintree Rainforest & Four Mile Beach 

– The town has controlled development to maintain its 

natural environment and beauty , but appears to be 

losing this focus 

– Relatively small economy which is underpinned by 

tourism and related industries 

• Cyclone Larry (2006) marked a material (20%) collapse 

in the tourism market and untimely over investment in 

cheaper accommodation assets 

• This has resulted in Port Douglas underperforming some 

competitors exposing inherent competitive weaknesses 

11

Port Douglas has outstanding natural assets including the Great 

Barrier Reef, Daintree Rainforest & Four Mile Beach 

“A perfect base for exploring the 

Great Barrier Reef, the rainforest at 

Daintree and the beaches at Cape 

Tribulation, this Queensland town 

has an out-of-this-world setting 

between spectacular forest and the 

Coral Sea.” – Trip Advisor 

SOURCE: TripAdvisor, TPDD, BoM 


• Great Barrier Reef – the most diverse 

underwater botanical garden; close 

proximity to outer reef and Low Isles 

• Daintree Rainforest – the oldest living 

rainforest on Earth and home to the 

Kuku Yalanji, the oldest Aboriginal 

community 

• Four Mile Beach – Ranked 6th in 

TripAdvisor’s Travellers Choice Awards 

2011 – Best Beaches in the South 

Pacific 

• Mossman Gorge – a picturesque site 

of the Daintree National Park, with 

guided bushwalk tours 

• Tropical climate – typical temperature 

of 25C-30C; wet season in January to 

March 

12

The town has controlled development to maintain its natural 

environment and beauty , but may be losing this focus 

Successful control of environment … … but may be losing this focus 

• The residential and commercial 

developments in Port Douglas follow 

the strict environmental regulations 

• Sensitive environments and natural 

features in Port Douglas, in particular 

Four Mile Beach, Dickson's Inlet and 

Flagstaff Hill are well maintained 

• Scale and nature of industrial 

development is limited to service 

sector and hence has no adverse 

affect on the environment 

• The level of amenities (health, 

education, security and social 

services) is adequate for the local 

community of Port Douglas 

SOURCE: Over 140 Interviews with citizens of Port Douglas 


• Significant level of discontent 

expressed by citizens about the town 

management of amenity planning and 

basic services 

– Coconut trees on Four Mile Beach 

– White fence on the headland at 

Island Point 

– Provision of basic services not 

transparent 

• Community concern that there is not 

enough voice with the CRC and 

“community consultation” is bypassed 

• Community concern about 

governance of the Douglas Division 

13

Port Douglas has a relatively small economy … 

Economy size 

A$ Millions 

8,000 

7,000 

6,000 

5,000 

4,000 

3,000 

2,000 

1,000 

0 

6,713 

~380 

CRC PDOB 

SOURCE: NIEIR 2011; Modelled data 

PDOB: Sector size 

A$ Millions 


Accommodation and Food Services 

Financial and Insurance Services 

Transport, Postal and Warehousing 

Professional, Scientific and Technical Services 

Rental, Hiring and Real Estate Services 

Mining 

Health Care and Social Assistance 

Manufacturing 

Retail Trade 

Construction 

Administrative and Support Services 

Wholesale Trade 

Agriculture, Forestry and Fishing 

Public Administration and Safety 

Education and Training 

Electricity, Gas, Water and Waste Services 

Other Services 

Information Media and Telecommunications 

Arts and Recreation Services 

0.0 10.0 20.0 30.0 40.0 50.0 60.0 

Model developed by students to 

estimate size and structure of 

Port Douglas, no data could be 

provided by CRC 

CRC: Cairns Regional Coucil 

PDOB: Port Douglas and Oak Beach 

14

… underpinned by tourism and related industries 

Value added 

A$ Millions 

Cairns Regional 

Council, 6,713 


Port 

Douglas/Oak 

Beach, 380 

PDOB - 

Tourism, 305 

(80% 1 ) 

PDOB - Other, 

75 (20%) 

1 Estimated from data obtained from Australian Bureau of Statistics, Census of Population and Housing, 2006, Basic Community Profile - B42 

15

2006 marked a material (20%) drop in the tourism market followed by 

the GFC resulting in economic stagnation 

Tourism is stagnating 

• Number of overnight guest arrivals was 

significantly impacted by Cyclone Larry 

• Underperformed relative to Queensland 

and Australia 

• Although the Cyclone did not directly 

impact Port Douglas, widespread negative 

news broadcast was enough to deter 

tourists from coming 

Seasonality is widening 

• Demand has increasingly fluctuated 

throughout the year, triggering wide 

variation: 

(i) town atmosphere – the town is either 

very crowded or very quiet, and 

(ii) service level – businesses are closed 

during low seasons 

1 Data includes accommodation with 15 and more rooms in the Douglas region. 

SOURCE: ABS 


300 

250 

200 

150 

100 

50 

0 

120 

110 

100 

90 

80 

70 

60 

250 

200 

150 

100 

50 

0 

Douglas region - Guest arrivals (‘000) 

Cyclone Larry 

(Mar 06 ) 

2005 2006 2007 2008 2009 2010 2011* 

Jan-Jun Jul-Dec 

Douglas region – Guest arrivals (index) 

2005 2006 2007 2008 2009 2010 2011* 

Douglas Queensland Australia 

Douglas region - visitor nights (‘000) 

Peak Season 

(Jul-Oct) 

Low Season 

(Jan-Mar) 

2005 2006 2007 2008 2009 2010 2011 

1 

16

Untimely over-investment in cheaper accommodation assets coincided 

with downturn 

Key Development Indicators for Port Douglas 

Beds 

10,000 

8,000 

6,000 

4,000 

2,000 

0 

Early developments 

targeted at high-end 

premium tourists 


Significant increase in new 

accommodation driven by rising 

property prices, leading to 

oversupply, indicating lack of 

planning for building approvals 

New premium developments 

including Sea Temple and 

Peppers Beach Club 

Unit price is now 35% 

lower than 2006 peak; 

Occupancy is 15% and 

room rate 13% below 

2003 levels 

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 

Beds Occupancy rate Property unit price Average room rate 

Note: Numbers of beds are estimate figures used to depict the trend in accommodation development over time; they may exclude some smaller 

accommodation providers. Property unit prices are median prices of the units sold during the year; they are used as a proxy for the value of 

accommodation unit in general and may not fully reflect the value of all properties in the area. 

SOURCE: Tourism Port Douglas and Daintreee, RPData, ABS 

160 

140 

120 

100 

80 

60 

Index (2003 = 100) 

17

As a result Port Douglas has underperformed some regional 

competitors and is yet to return to 2005 levels 

It is more than just the weather and the economy 

• Based on overall performance between 2005-2011, Port 

Douglas has underperformed relative to Noosa, Cairns 

and Whitsundays on guest arrivals, despite having gone 

through similar weather disruptions and adverse 

economic conditions 

• Noosa has bounced back from the Cyclone Larry impact 

in 2006 and grown the number of visitors 

• Other destination are also facing issues, 3 island resorts 

have closed in the Whitsundays recently (source: TPDD) 

Competitors have maintained premium position 

• The difference in room rates between Port Douglas and 

Byron, Noosa and Whitsundays has widened 

• Port Douglas, having oversupply of beds, has engaged 

in price discounting to stimulate volume. 

• Port is now in a difficult “stuck-in-the-middle” position 

where it competes with Cairns’ low rates and with 

alternative destinations providing more premium 

offerings 

Note: Data includes accommodation with 15 and more rooms in the Douglas region, and comprises both leisure and business visitors. 

Source: ABS. 


120 

110 

100 

90 

80 

70 

60 

100 

80 

60 

40 

20 

0 

-20 

-40 

Guest arrivals (index) 

2005 2006 2007 2008 2009 2010 2011* 

Douglas Cairns Byron 

Noosa Whitsundays 

Room rate premium relative to Australian average ($) 

-60 

Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 

Douglas Byron Noosa Whitsundays Cairns 

18

23% arrivals decline in 2006 has not been recouped by 1% annual 

average growth over the subsequent five years 

• Tourism in the Douglas region declined more sharply in 2006 relative to many other Australian tourist 

destinations. Number of guest arrivals into Douglas was down 23%, relative to 2% growth for both 

Queensland and Cairns. 

• Over the following 5 years to 2011, Douglas had not been able to bounced back from the 2006 low, and 

only managed to grow guest numbers by 1% on average per annum despite from such a low base. 

• This is in contrast to Noosa and Byron who managed to grew sharply in 2007 by 24% and 14% respectively 

after a poor 2006 performance. 

• Considering the overall performance from 2005 to 2011, it appears that Douglas has underperformed 

relative to other destinations. 

Percentage year-on-year change of number of Guest arrivals 

Year Queensland Australia Douglas Cairns Byron Noosa Whitsundays 

2006 2% 3% -23% 2% 0% -14% -2% 

2007 4% 4% 0% 4% 14% 24% -2% 

2008 -3% -1% 3% -12% -4% 4% -10% 

2009 -2% -1% 3% -8% -11% -6% 0% 

2010 -1% -2% 0% 2% -7% 4% -2% 

2011* -2% 2% -2% -1% -5% -3% -5% 

Note: Data includes accommodation with 15 or more rooms. 

*2011 is an estimate figure assuming the last quarter of 2011 being equal to the last quarter of 2010. 

Source: ABS 


19

Inherent weaknesses in Port Douglas competitive position have been 

exposed in domestic and international markets 

Strength 

Evaluation of destination competitiveness 

Endowed 

resources 

Created 

resources 

Supporting 

resources 

SOURCE: MBS analysis, World Heritage Organization, TPDD, Sustainable Tourism 


8 

14 10 

12 

16 

Beach 3 

Reef 

Daintree 

1 

2 

4 

Cli- Heritage & 

11 

mate 

5 culture 

6 9 

13 

Importance 

15 

7 

Created resources are satisfactory 

6. Accommodation standard iequires refurbishments 

7. Marina and harbour require further development 

Supporting resources require attention 

10. Service is vital to tourists but has declined over time 

11. Hospitality is generally good across the town 

Strength Relative measure of how rare, in-imitable and non-substitutable a resource is 

Importance Relative importance of each resource to tourists visiting a destination 

8. Transport is satisfactory but insufficient for driving tourism 

9. Mix of activities is good but not unique and has many substitutes 

Weak Average Strong 

12. General infrastructure is satisfactory but accessibility is an issue 

13. Dining and entertainment is good but not world-class 

14. Special events exist but awareness is low 

15. Spa & wellness is good but perceived value is below that of SE Asia 

16. Shopping below average and chain store replacing local boutiques 

Legend: 1. Great barrier reef 2. Daintree Rainforest 3. Four Mile Beach 4. Subtropical climate 5. Cultural heritage 6. Accommodation 7. 

Marina & harbour 8. Transport 9. Mix of activities 10. Service 11. Hospitality 12. General infrastructure 13. Dining & entertainment 14. 

Special events 15. Spa & wellness 16. Shopping 

20

The town’s existing tourism assets are insufficient to deliver it a 

sustainable competitive advantage over other destinations 

Endowed 

Created 

Supporting 

Evaluation of destination competitiveness 

Tourism resources Low High Comments 

Great Barrier Reef u 

Daintree National Park u 

Four Mile Beach u Phuket and Hawaii feature world-famous beaches 

Subtropical climate u Many favourable climates locally and abroad 

Cultural heritage u Competing with many ancient cultures such as Chiang Mai, Thailand 

Arts and crafts u Competing with many well known arts & crafts regions in SE Asia 

Cultural diversity u 

Tours, attractions and activities u Many substitutes locally e.g. Cairns and Bali, and Sth Thailand 

Accomodation u 

Spa and wellness u 

Special events u 

Entertainment u 

Restaurants and dining u Competing with culinary destinations such as Thailand 

Sporting events u 

Shopping u Chain retailers have replaced boutique shopping 

Local transport u 

General infrastructure u Marina Mirage requires redevelopment 

Quality of service u Service levels have declined and below SE Asia standards 

Hospitality u 

Accessibility of destination u Accessibility is unfavourable compared with Cairns 

Village precinct u 


Competitiveness 

SOURCE: MBS analysis, World Heritage Organization, TPDD, Sustainable Tourism CRC 

21

Port is becoming more reliant on domestic tourists; lower international 

visitors signal loss of global competitiveness 

Domestic market is a steady source 

• Domestic currently makes up 72% of total 

overnight tourists, up from 65% in 2005. 

Domestic visitor numbers have recovered to 

2005 level. 

International tourist number is 31% below 2005 

• Number of international tourists has gradually 

declined by 6% pa (CAGR) since 2005. 

• External factors include loss of international 

flights to Cairns Airport (e.g. Qantas Japan 

flights in 2008), slowing economy and higher 

AUD. 

Domestic tourists spend more, but declining 

• Based on TNQ data, it appears that domestic 

tourists spend around $60 more per night stay 

relative to international tourists. However the 

trend is downward. 

> Lower international tourist numbers signal 

loss of competitiveness, but also points to 

future upside potential 

1 Based on Financial Year ending in June 

SOURCE: TRA 


400 

300 

200 

100 

4.0 

3.0 

2.0 

1.0 

0.0 

300 

200 

100 

0 

0 

Douglas - Number of visitors (‘000) 

2005 2006 2007 2008 2009 2010 2011 

International Visitors Domestic Visitors 

Passenger movements at Cairns Airport (mil) 

FY06 FY07 FY08 FY09 FY10 FY11 

International Domestic 

146 

TNQ - Average spending per night ($) 

206 197 190 

121 

133 

2009 2010 2011 

International visitors Domestic visitors 

22




Context 

1 

2 

3 

4 





Appendices 

A1 

A2 

A3 




23

II 

Community leaders and citizens must confront several major 


• Port Douglas does not have a co-ordinated response to the decline and stakeholder 

groups have different agendas 

• Port Douglas is in a downward spiral on the road to “Tourist massification” (dilution or 

loss of premium destination status) 

– Tourism underperformance driven by lack of cohesion and planning 

on the back of opportunistic property developments 

– Premium price positioning has eroded as occupancy and room rates decline 

– Low season occupancy decline is exacerbating seasonality impact on profit 

– When occupancy rates drive pricing decisions the cycle to “tourist massification” 

will continue 

• Marketing is underfunded, constrained by Tourism Queensland and alignment with 

tourist expectations can be improved 

– Port marketing and branding is constrained by Tourism Queensland and messages 

are diluted with no unique identity 

– The limited marketing budget ($0.5M) generates exposure of $22M, focuses on 

reach not target markets or return on investment 

– Port’s value proposition and perception is not fully aligned with domestic or 

international visitor motivations for visiting the region 

– Port’s segmentation strategy (from TQ) appears too complex to be executed 


24

Port Douglas does not have a co-ordinated response to the decline and 

stakeholder groups have different agendas 

Lack of coordinated response 

• The residential and commercial developments in Port Douglas 

follow the strict environmental regulations 

“No one knows who is in charge!” 

• Sensitive environments and natural features in Port Douglas, in 

particular Four Mile Beach, Dickson's Inlet and Flagstaff Hill are 

well maintained 

“We need an Obama to give the hope back!” 

• Scale and nature of industrial development is limited to service 

sector and hence has no adverse affect on the environment 

“We cannot even get our act together on the “Lagoon 

Development” 

• The level of amenities (health, education, security and social 

services) is adequate for the local community of Port Douglas 

“Cairns and Port Douglas are in fact competitors. So we have 

1 in 10 representatives in council that is competing with us.” 

Source: Protocols of focus groups and interviews 


Fragmentation (Illustrated by a list of community groups and 

clubs in PD) 

Community Service 

• National Landscapes committee, Douglas Shire Seniors, Port 

Douglas Combined Clubs, Rotary Club of Port Douglas, Douglas 

Shire Historical Society, Port Douglas Neighbourhood Centre, 

Volunteer Fire Service, Ambulance Service, Health Service in 

Mossman, Coast Guard Volunteers 

Tourism and Business Groups 

• Chamber of Commerce, Tourism Port Douglas Daintree, Port 

Douglas Marine Parks, Daintree Gateway panel, the Wet 

Tropics Tourism Liaison panel and the Eclipse Task Force, 

(TPDD Panels -Business Incentives TAG, Wedding TAG, SPA & 

Health TAG, Food TAG, Marketing TAG), Great Barrier Reef 

Marine Park Authority 

Sports Clubs 

• Douglas Tennis Association, Mossman Amateur Fishing 

Club,Mossman Amateur Boxing, Douglas Sailing Club, 

Mossman & Port Douglas Rugby League Club, Douglas United 

Soccer Club, Mossman & District Junior Cricket Association, 

Port Douglas Cricket Club, Port Douglas Outrigger Canoe Club, 

Port Douglas Surf Lifesaving Club, Port Douglas Rugby Union, 

Mossman Amateur Basketball Association, Douglas Netball 

Association, Port Douglas AFL Club, Douglas Shire Motorsports 

Association, Mossman Memorial Bowls Club, Mossman Golf 

Club, Coral Coast Judo, Tai Chi Club, Mossman Boating & 

Fishing Club, Mossman Junior Rugby League Club, Port 

Douglas Junior Football Club, Mossman Little Athletics Club, 

Mossman Pony Club 

Source: http://www.cairns.qld.gov.au/communityinformation/community-services/community-services-directory, 

25

Port Douglas appears to be in a downward spiral on the road to 

“Tourist massification” 

Overinvestment in below-5star 

accommodation and 

lacking refurbishments 

Investment 

in high-end 

declines 

High-end 

segment 

declines 

‘Tourist 

Massification 

Cycle’ 

Low-end 

tourists 

increases 

Low-end 

tourists 

enter 


Low-end 

services 

provided 

Tourist ‘massification’ is a loss of destination 

status, particularly affecting high-income segments, 

resulting from a decline in service standards and 

infrastructure investment 

Process of Tourist Massification 

• Dated properties losing their luster - the 

Sheraton Mirage losing their 5-star rating, while 

others lack in refurbishments 

• Overinvestment in accommodation lead 

to sub-optimal occupancy rate 

• Top resorts discounting rates to attract 

customers, followed by the low to middle 

price-range resorts 

• Lower room rates make investment in top quality 

resorts less attractive 

• Fewer high-end tourists, particularly 

international, come to Port as competition 

increases 

There are indications that Port Douglas has begun the Tourist massification 

path, which in the long term will lead to loss of its traditional high-end 

destination status and significantly lessens its ability to sustain price premium 

26

Tourism underperformance driven by lack of cohesion and planning 

on the back of opportunistic property developments 

Vicious Cycle 

Downward 

Trend 

Opportunistic 

development 

Profit 

crunch 

Underinvestment 

Value 

Proposition 

altered 

Port unable 

to adapt 

Source: MBS Analysis, ABS 


Contributing Factors Underlying Reasons 

•Significant property developments in 1990s and early 2000s to capitalise on 

property price growth 

•Little control or planning as supply outpaced demand 

•Oversupply of accommodation lead to price discounting to stimulate volume 

as marketing was unable to attract sufficient tourists 

•Lack of volume and lower rates reduced profitability resulting in declining 

new investment and refurbishments 

•Tourist products and services are not upgraded to compete internationally 

•Port Douglas is becoming dated and less competitive internationally 

•Price discounting along with budget airlines have made it more attractive to 

budget travelers 

•Continued focus on traditional markets 

•Inability to attract new high-value markets 

•Loss of premier destination status due to lack of investment 

1 

2 

3 

4 

5 

6 

Absence of clear unified 

vision for Port Douglas 

Development plans taking 

too long to action 

Low coordination across 

tourism-related 

businesses in marketing 

and investments 

Lacking industry data 

collection by local and 

regional Tourism boards 

Emerging growth markets 

receive inadequate 

attention 

Reactive focus 

27

Premium price positioning has been eroded as occupancy 

and room rates decline 

Occupancy rate in low seasons is drifting lower Average room rates is now 10% lower than in 2005 

80% 

60% 

40% 

20% 

Occupancy rate (monthly, %) 

0% 

Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 


Data includes accommodation with 15 and more rooms in the Douglas region between Jan 2005 – Sep 2011. 

Source: ABS. 


220 

200 

180 

160 

140 

120 

Room rate premium above Australian average ($) 

100 

80 

60 

40 

20 

0 

-20 

-40 

-60 


Douglas Noosa Cairns Byron 

Average takings per room night occupied 

(rolling quarterly, $) 

100 



Low occupancy rates, oversupply and direct competition from Cairns have pushed Port Douglas’ price premium lower. Port Douglas is 

currently trapped in the middle price band, competing with Cairns’ low rates and with competing destinations’ premium offerings. 

Port Douglas is ‘stuck-in-the-middle’ 

28

Occupancy rate in low seasons is declining, exacerbating seasonal 

impact on profit 

Nights ('000) 

200.0 

160.0 

120.0 

80.0 

40.0 

Occupancy rate 2005 2006 2007 2008 2009 2010 2011 1 

High season 64.3% 62.5% 65.3% 57.5% 61.5% 60.6% 59.5% 

Shoulder season 45.8% 46.8% 41.1% 40.4% 40.4% 38.5% 42.3% 

Low season 38.0% 40.8% 36.0% 32.0% 29.3% 25.9% 24.8% 


Douglas region - Visitor nights and Number of beds 

Total visitor nights is declining 

in the low seasons 

0.0 


Visitor nights (rolling qtrly) Number of beds 

10.0 

8.0 

6.0 

4.0 

2.0 

0.0 

Key issues 

1 Assuming Nov-Dec 2011 occupancy rate is the same as in 2010. 

Note: High season: Jul-Oct, Shoulder: Nov-Dec and Apr-May, Low: Jan-Mar. 


Source: ABS 

Beds ('000) 

• Room nights volume has become 

more volatile and is declining in 

the 

low seasons 

• Occupancy rate in peak seasons 

has averaged around 60% in 

the past 3 years, relatively low 

compared to Queensland (69%) 

and Australian average (65%). 

• In low seasons, occupancy fell 

from 41% in 2006 to 25% in 2011, 

adding pressure on profitability 

• Overall low occupancy rate signals 

oversupply of accommodation 

• Wide seasonality adds complexity 

into pricing and operational issues 

such as staffing, opening hours 

and inventory management 

29

Occupancy rates will drive pricing decisions; the “Tourist 

massification” will continue if occupancy falls further 

Average room rate 

220 

200 

180 

160 

140 

120 

100 


Relationship between occupancy rate and room rate 

(2005-2011) 

R² = 0.63 

Correlation = 0.79 

0 20 40 60 80 

Occupancy rate 


The regression line represent a line that best fit the data and shows relationship between room rates and occupancy rates. 

Source: ABS 

30

Port marketing and branding is constrained by Tourism Queensland 

and messages are diluted with no unique identity 

Source: TPDD 


Tourism Australia 

“There’s nothing like Australia” 

Tourism Queensland 

“Where Australia Shines” 

Tourism Tropical North 

Queensland 

“Adventurous by 

nature” 

TPDD 

“Adventurous 

by nature” 

“Naturally 

Paradise” 

Previous Tourism Port Douglas & 

Daintree Positioning 

• “Where the reef meets the rainforest.” 

• “The Gateway to the Great Barrier 

Reef” 

• “The original Gateway to the Great 

Barrier Reef” 

• “Live the nature, love the village” 

The Port Douglas identity has 

become less unique as Palm Cove 

and Cairns have also positioned 

themselves as “where the reef meets 

the rainforest” 

31

The limited marketing budget of $0.5M generates exposure of $22M 

and focuses on reach not target segments or ROI 

Marketing budget 

(A$M) 

New Zealand 

Hamilton Island 


Kangaroo Island 

1.70 

0.50 

0.26 

Phillip Island 0.18 


59.00 

$10M more from Board 

members (Source:TPDD) 

$6M campaign launched 

(Source:TPDD) 

Note: Kangaroo Island just launched a comms campaign that 

would have needed had a budget within $600k - $2m 

Source: New Zealand Tourism, Cairns International Film 

Festival, Tourism Queensland, Tourism Kangaroo 

Island, Tourism Victoria 

Traditional 

Media 

Below the Line 

Media 

Competitions 

(pay for the 

prize) 

Entertainment 

Marketing 

Marketing Initiatives 

• TV (regional Qld) 

• Radio (regional Qld) 

• Magazine inserts 

• Direct retail campaigns 

• Website 

• Online campaigns 

• EDM (Electronic Direct Mail) 

• Brochures and ebooks. 

• Social media: Youtube videos, 

Facebook and TripAdvisor 

• Promotional DVD 

• Myer 

• Nursing Magazine 

• Getaway 

• Magazine celebrity placement 

• Neighbours 

• X-Factor UK 

• MasterChef UK 

Source: Interview with Doug Ryan, Tourism Port Daintree & Tourism 

Queensland. 

32

There is a misalignment between stakeholder and visitor perceptions 

of Port Douglas 

Port Douglas Domestic visitors International visitors 

1. Visit the GBR Rest & Relax Visit the GBR 

2. Visit the rainforest Climate Rest & Relax 

3. Visit beaches 

4. 

Experience natural 

environment 



environment 

Visit the rainforest 

5. Climate Visit the GBR Climate 

Source: Synthesized from: Focus Group & Tourism Quarterly Report #2: Airport Exit Survey 

Visit the rainforest 


environment 

33

Port’s segmentation strategy (from TQ) is too complex to be executed; 

four segments are actively marketed by businesses 

Tourism Port Douglas 

Target Segments 

ON PAPER 

Connectors 

1. Weddings 

2. Families 

3. Couples 

Unwinders 

4. Couples 

5. High end 

6. Families 

7. Honeymooners 

Active explorers 

8. Divers. 

9. Snorkeling 

10. Bird watchers. 

11. Backpackers 

12. Adventurers 

13. Eco 


Social fun seekers 

14. Backpackers 

15. Couples 

16. Singles 

Stylish travelers 

17. High end. 

18. Eco. 

18 target 

segments is 

too complex. 


cannot target 

everyone. 

Port Douglas Businesses 

Most Obvious Targeted Segments 

IN ACTION 

Luxury Backpackers 

Wedding MICE 

Complementary 

Source: TPDD Marketing Plan 2011/2012 Source: Focus Groups and Interviews 

Source: Marketing workstream 

MICE is neglected in the 

TQ marketing strategy 

Clashing? 

34

Port Douglas’ on-line presence is uncoordinated, conflicting 

and confusing 

Top 4 Google hits for “Port Douglas” 


www.portdouglas.com 

Little information about Port Douglas 

• Provide only 1 page of general information about Port Douglas 

• Link to a list of (contracted?) accommodation providers 

• Part of www.travelonline.com yet uses the portdougla.com domain 

www.portdouglas.com.au 

Comprehensive accommodation information, less about activities 

• 5 out of 6 tabs of information are dedicated to accommodation 

• Only 1 page of information about activities 

• Not a lot of content and rich data 

www.pddt.com.au 

Information about activities, links to 150 businesses 

• Professional looking website 

• Provides comprehensive information about activities and natural tressures 

• Information for the entire region (Port Douglas and Daintree) 

www.tourismportdouglas.com.au 

Packed with information, yet simple appearance and many ads 

• Website appearance could be improved 

• The most comprehensive in terms of local businesses information, 

yet the directory is incomplete 

35

PDDT website lags behind private sites even though it offers a richer 

experience and more comprehensive content 

Google 

Rank 1 

Time spent in 

typical visit 


Top queries driving traffic from 

search engine (% of site’s traffic) 

Ownership Traffic rank & number 

of sites linking in 

www.portdouglas.com – Relatively low traffic rank though ranked #1 in Google; least time spent by visitors 

3:05 

min 

Port Douglas (27%), 

Port Douglas holidays (21%), 

Port Douglas accommodation (12%) 

www.tourismportdouglas.com.au – Top traffic rank; most time spent per visit yet unprofessional appearance 

3:56 

min 

Port Douglas (7%) 

Solar eclipse 2012 (4.5%) 

Port Douglas solar eclipse (1.8%) 

www.portdouglas.com.au – Very low traffic rank, focuses mainly on accommodation 

N.A 

Port Douglas (73%), 

Port douglas accommodation (16%) 

www.pddt.com.au - Low traffic rank, with relatively many sites linking in; much time spent per visit 

3:39 

min 

1 For “Port Douglas” term search conducted on 16/March/2012 

Source: ALEXA, Accessed 16/March/2012 

Port Douglas (44%) 

Port Douglas Australia (15.5%) 

Port Douglas tourism (4%) 

(the higher the better) 

64 

1,939,600 

462,005 

25 

(the lower the better) 

145 

274 

2,724,022 

8,559,632 

36




Context 

1 

2 

3 

4 





Appendices 

A1 

A2 

A3 




37

III 

Long term goals must be established and can be achieved by 

implementing four strategic initiatives 

Proposed long term goals 

• Grow Tourism visitor numbers and average 

spend by 25% (achieve 2005 levels) over 

next 5 years 

• Restore the “premium destination” status 

of the town as measured by comparison 

with premium international (Phuket) and 

local (Noosa) destinations 

• Secure “catalytic” investment ($50 -100M) 

from government for major community 

development 

• Secure incentives from government to 

stimulate private investment 

• Achieve alignment of the citizens and the 

leadership (>75% support from citizens) 

• Increase service standards to compare 

with world-class international destinations 

Source: Synthesis of workstream analysis – MBS MBA Teams 


Proposed strategic initiatives 

S1 Drive Tourism Growth: Focus the 

breadth and depth of Port resources to 


S2 Focus Marketing: Target key market 

segments that will drive growth and 


S3 Stimulate Investment: Secure “public” 

investment and create environment to 

attract private investment 

S4 Call to Immediate Action: Agree and 

implement action to rebuild the “heart 

and soul” of Port Douglas 

38

Port Douglas needs to grow at 5% pa over the next 5 years to reach 2005 

levels, this growth should be measured in relation to Australian competitors 

Regaining 2005 arrival levels will require a 5% pa growth rate over 5 years 

120 

110 

100 

90 

80 

70 

60 

Douglas region – Guest arrivals (index) 

2005 2006 2007 2008 2009 2010 2011* 



• 2011 Arrivals are at 80 (indexed with 2005=100) 

• Regaining 100, or 2005 levels, will require a 

5% pa growth rate over the next 5 years 

• This measure will give Port a tangible, 

measurable goal. 

Comparing Port’s growth rate to competitors will help to build an understanding for relative position 

Proposed list for comparison: 

• Noosa 

• Whitsunday Islands 

• Hamilton Island 

• Byron Bay 

For the comparisons the current growth rate 

should be considered, not a 5 year trend. 

Reason for selection: 

• secluded locations, none metropolitan 

• same affect of currency fluctuations 

• largely same laws and regulations apply 

• roughly same reasons to visit destination 

International destinations, such as Hawaii, Bali 

or Fiji, are more difficult to compare as they are 

affected differently due to currency fluctuations 

and operate under local legislation. 

39

S1 Drive Tourism Growth: Focus the breadth and depth of Port 

Douglas resources to restore the allure of Port Douglas 

1 • Improve understanding of Port Douglas’ value proposition and tourist 

profiles through better market research and benchmarking 

2 • Position Port Douglas to target Domestic Restful Break and 

International First-time Couple segments 

3 • Enhance commitment and strategic efforts towards capturing 

emerging Asian markets 

4 • Invest in infrastructure that is aligned to Port Douglas’ vision and 

identity to restore competitive advantage 

5 • Devise immediate action plan on improving low seasons in order 

relieve pressure on business profitability 

6 

• Develop an overarching holistic plan for Tourism industry, comprising 

a broad range of tourism-related businesses 


40

The Value Proposition most aligned with Domestic tourist’s motivation 

to visit Port Douglas is “TROPICAL RELAX”. 

Port’s Most Valued Assets by Domestics 

Tropical climate – typical 

temperature of 25C-30C; wet season 

in January to March 

Village precinct – award winning 

restaurants, sidewalk cafes, boutique 

shopping and galleries framed by 

tree lined streets and historic North 

Queesland architecture 

Four Mile Beach – Ranked 6th in 

TripAdvisor’s Travellers Choice 

Awards 2011 – Best Beaches in the 

South Pacific 


Value Proposition 

Quality Family Time 

Tropical climate 

Rest and Relax 

“TROPICAL RELAX” 

41

The Value Proposition most aligned with International tourist’s 

motivation to visit Port Douglas is “REEF & RELAX”. 

Port Douglas’ Assets 

Four Mile Beach – Ranked 6th in 

TripAdvisor’s Travellers Choice Awards 2011 – 

Best Beaches in the South Pacific 

Tropical climate – typical 

temperature of 25C-30C; wet season 

in January to March 

Great Barrier Reef – the most 

diverse underwater botanical garden; 

close proximity to outer reef and Low 

Isles 

Village precinct – award winning 

restaurants, sidewalk cafes, boutique 

shopping and galleries framed by 

tree lined streets and historic North 

Queesland architecture. 


Value Proposition 

Laid back Australian 

lifestyle 

Great Barrier Reef 



“REEF AND RELAX” 

42

1 

Market research is necessary for effective strategic planning; 

current data availability needs improvement 

Area for improvements: Market research 

Current situation 

• Limited available data of key 

tourism variables 

• Visitor survey is long and 

complex, and does not 

capture a representative 

sample of visitors due to 

small sample size and 

language issues 

• Insufficient benchmarking of 

performance against 

competing local and 

international destinations 

• Communication of market 

information to members and 

published in newspapers 


Recommendations 

• Invest in tourism market 

research to better 

understand customer 

profiles and comparison with 

competitors 

• Conduct regular survey with 

(i) improved structure 

(simple and targeted 

questions), 

(ii) larger sample size and 

(iii) in multiple languages 

• Expand communication and 

more extensive use 

of data for marketing and 

investment strategy 

formulation 

Implications 

• Data provides hard evidence 

to corroborate qualitative 

assessments to allow for 

objective decision making 

• Better understanding of 

the tourist profiles, the state 

of the Tourism industry in the 

region and its key drivers, 

leading to more effective 

marketing strategy and 

investment planning 

43

2 

Understanding key segments and targeting them is key to 

differentiate Port Douglas from Cairns and restore premium 

Area for improvements: Segmentation and Targeting 


• Port Douglas is focusing 

broadly on rest and relax; 

segmentation is done mainly 

by regions and not on 

specific customer attributes 

• Port Douglas is in direct 

competition with Cairns for 

the same pool of tourists 

• Lower price premium, 

dragged down by Cairns’ 

lower accommodation room 

rates 

• Limited by funding 



• Need to understand who 

comes (and should come) to 

Port Douglas: their 

attributes, needs and 

expectations 

• Target segments that are 

both profitable and aligned 

to Port Douglas’ offerings, 

including Restful break 

(domestic) and First-time 

couples (international) 

• Rather than competing 

directly with Cairns, 

differentiate by focusing on 

specific segments 

• While Cairns offers the big 

city experience, Port 

Douglas can be positioned 

around the more secluded, 

hideaway experience 

Implications 

• Targeting specific niche 

(rather than going after 

every type of visitor) 

provides Port Douglas with a 

point of differentiation to 

Cairns and subsequently 

allow Port to sustain and 

improve price premium 

44

2 

The market is broadly broken into 5 segments; domestic and 

international visitors profiles are significantly different 

Segment Key attributes 

Family 

Holiday 

Restful Break 

(Repeats) 

Campers & 

Backpackers 

First-time 

Couples 


• Travels with children 

• Parents mainly of high income ($85K+) 

• Domestic are mainly repeats, international are first-timers 

• Mainly 50+ age groups: 29% of age 50-59 and 39% of age 60+ 

• Skewed towards high income ($85K+) 

• Stays in resorts, B&B, hotels or holiday units 

• Mainly younger demographic (age 20-29) with lower income 

• Stays in backpacker hostels, caravan parks or camping 

• Stays in resorts, B&B, hotels or holiday units 

• Mainly young demographic, also international tourists age 50+ 

• Wide-spread across income brackets 

Social • Travels with friends and relatives, stays in relatives house, B&B, 

resorts, hotels or holiday units 

• Wide-spread age groups, slightly skewed towards higher income 

Size (Number of visitors) 

Denotes top 2 domestic and 

international market segments 

Port Douglas appears to be attracting a wide range of tourists: Domestic is mainly families and repeat visitors, 

while International is dominated by backpackers and first-time couples. The top 4 segments contribute 80% of 

total visitors in the town 

Overall Domestic Inter. 

25% 30% 13% 

23% 29% 9% 

17% 9% 35% 

16% 12% 24% 

12% 13% 11% 

Other • Remaining segments including scheduled tours 7% 6% 9% 

Note: 1. Length of nights stay is approximate of total stay in the Port Douglas and Daintree region – visitors typically spend most of their time in the town of Port Douglas, and spend an average of 

0.8 day each in Daintree, Cape Tribulation and Beaches, plus a daytrip to Mossman. 

2. Spending budget calculated as planned budget per adult visitor per night. For families with children, the budget is split 70/30 between parents and children. Budget is likely to 

be higher than actual spending. 

Source: James Cook University Survey of 987 tourists in Port Douglas in 2011, TPDD. 

45

2 

Top domestic segments are affluent, while international has to move 

away from budget backpackers’ dominance 

Domestic Visitors 

100% 

80% 

60% 

40% 

20% 

0% 

Number of Visitors Spending Budget* 

6% 

9% 

12% 

13% 

29% 

30% 

3% 

8% 

10% 

11% 

34% 

33% 

• The domestic segment mainly comprises repeat visitors, who are more affluent and of older demographic, and parents travelling 

with children. Family and Restful Break (repeats) segments combined contributes around 59% of visitors numbers and 67% of the 

overall domestic spending. 

• The international segment is currently dominated by Campers and Backpackers – while they bring in high volume, they have low 

spending capacity. The more valuable segments are First time Couples and Family Holiday, which together make up over 50% of 

total spending. 


International Visitors 

100% 

80% 

60% 

40% 

20% 

0% 

Number of Visitors Spending Budget 

9% 12% 

9% 

11% 

13% 

24% 

35% 

13% 

9% 

20% 

31% 

16% 

Other including tours 

Restful Break 

(Repeats) 

Social 

Family Holiday 

First-time Couples 

Campers & 

Backpackers 

Note: Spending budget is budget per adult visitor per night x length of nights stay x numbers of visitors. For families with children, the budget is split 

70/30 between parents and children. The budget is typically higher than actual spending. 


46

2 

Key target segments are First-time Couples for international 

and Restful Break (affluent repeats) for domestic 

• The existing composition of domestic tourists are skewed towards the more affluent segments. However 

the top Family Holiday segment are typically concentrated during high seasons and it is competing 

directly with established family entertainment destinations such as Gold Coast. 

• The key target segments are Restful Break (domestic) and First-time Couples (international), due to 

(i) their relatively large spending budget, (ii) strong fit with Port’s offerings, (iii) relatively less seasonal, and 

(iv) there is potential for spillover effect - them bringing their family back to Port for holiday in the future. 

Segment 

% total 

Domestic 

visitors 


Domestic International 

Nights 

Stay in PD 

and Daintree 1 

Budget 2 

per night 

% total 

International 

visitors 

Nights 

Stay in PD 

and Daintree 1 

Budget 2 

per night 

Family Holiday 30% 9.0 236 13% 7.3 328 

Restful Break 

(Repeats) 

29% 9.1 246 9% 9.1 250 

Social 13% 8.8 194 11% 6.1 221 

First-time Couples 12% 7.5 213 24% 7.5 270 

Campers & 

Backpackers 

Other 

including tours 

Key target segments 

Potential flow-through impact 

9% 8.6 205 35% 4.9 144 

6% n.m. n.m. 9% n.m. n.m. 

Note: 1. Length of nights stay is approximate of total stay in the Port Douglas and Daintree region – visitors typically spend most of their time in the town of Port Douglas, and 

spend an average of 0.8 day each in Daintree, Cape Tribulation and Beaches, plus a daytrip to Mossman. 

2. Spending budget calculated as planned budget per adult visitor per night. For families with children, the budget is split 70/30 between parents and children. Budget is likely to 

be higher than actual spending. 


47

3 

Port Douglas is missing out on the growing Asian markets, 

indicating significant upside 

• Port Douglas is highly concentrated in European, NZ and US visitors with the UK 

being the largest source. However visitor growth has been relatively slow over the 

past 5 years 

• The proportion of Asian tourists in the town appears low relative to Australia overall. 

Port Douglas has missed out on capturing the strong growth of China and 

Southeast Asian tourists 

• While the traditional European and USA markets has sustained Port Douglas’ tourism 

so far, tapping into the Chinese markets can provide considerable upside and 

become a growth platform for the long term 

• The contribution of Chinese tourists appears minimal at present. Our baseline 

scenario estimates indicate that Port Douglas could realistically attract additional 

12,800 visitors and generate $7M revenue uplift, growing to $14M by 2016 

• Further revenue upside requires more inbound flights, improved access into PD, 

Chinese-language friendly tours and tourist guide, enhancement of accommodation, 

retail, dining and entertainment offerings 


48

3 

Only 5% of international visitors into Queensland currently 

visit Port Douglas, compared to 33% for Cairns 1 

Overnight tourists to Port Douglas, 2011 

(in thousand visits) 

International overnight 

tourists to 

Queensland 1,730 

TNQ’s share of 

International 

tourists to Qld 

Domestic overnight 

tourists to 

Queensland 12,500 

TNQ’s share of 

Domestic 

tourists to Qld 

35% 

7% 


X 

X 

International overnight 

tourists to TNQ 

600 

Port Douglas’ share of 

International 

tourists to TNQ 15% 

Domestic overnight 

tourists to TNQ 

915 

Port Douglas’ share of 

Domestic 

tourists to TNQ 26% 

X 

X 

International tourists 

(28%) 

90 

Domestic tourists 

(72%) 

240 

Only 5% of international 

tourists into Qld go to 


+ 

Total overnight tourists 

to Port Douglas 

330 

1 Cairns including Trinity beach areas 

Note: Numbers of tourists are estimate figures including visitors with the purpose of holiday and visiting friends and relatives. Day trip numbers are 

excluded given lack of data available. 

Source: Tourism Australia, ABS, MBS estimates. 

49

3 

% of Total Int. Tourist Nights 

There is a major shift towards Chinese tourists in TNQ, 

while UK visitor nights declined by 21% 

Top 5 international tourist markets into TNQ 

• Top 5 international markets make up 48% of total nights. 

• The largest market, UK, is declining: visitor number down by 

19% and nights by 21% on 2010; while China is growing 

rapidly: visitors +41% and nights +50% on 2010. 

20% 

18% 

16% 

14% 

12% 

10% 

8% 

6% 

4% 

2% 

Germany 

447K 

Number of nights of 

Chinese tourists 

grew by 50% on 

2010 

USA 

386K 

184K 

China 


758K 

507K 

Japan 

0% 

25 45 65 85 105 

UK 

Tourists (‘000) 

Indicates size of Tourist nights in 2011 

Note: Figures for Port Douglas is based on a survey of 987 tourists conducted by James Cook University in 2011. The sample is relatively small and may not 

represent the true composition of tourists in the area; therefore it should only be used as a proxy. Figures for TNQ is based on the year ending June 2011.. 

Source: TNQ, TPDD Survey, Team Analysis 

% of Total Int. Tourist Nights 

Top 5 international tourist markets into Port Douglas 

• Top 5 markets make up 72% of total nights, concentrated in 

Europe, NZ and USA; the remaining is highly fragmented. 

• Port Douglas has minimal exposure to the growing Chinese 

market. 

40% 

35% 

30% 

25% 

20% 

15% 

10% 

5% 

Sweden 

25K 

Declining UK market 

(20%) into TNQ 

dominates PD 

NZ 

78K 

58K 

38K 

Germany 

USA 

UK 

152K 

0% 

0 5 10 15 20 25 30 

Best Estimate based on available data 

Tourists (‘000) 

50

3 

Port Douglas could gain at least 12K additional visitors and 

$7M revenue uplift by tapping into Chinese tourists 

Chinese visitors into Australia is to grow at 9% annually in the next 5 years 

542K^ 837K 

+9% p.a. 

2011 2016E 


• China is the fastest growing tourism market into 

Australia; In 2016, China is estimated to be the 

second largest inbound visitors 

• Capturing the Chinese market has been a major 

focus for competing Australian destinations, such as 

Hamilton Island 

^542,000 Chinese visitors into Australia include leisure, business, education and other. The number of Chinese leisure visitors is around 335,000 in 2011 

The baseline scenario for 2012E: Additional 12,800 tourists and $7M annual revenue uplift 

Chinese leisure 

visitors to 

Australia 

% visiting 

Queensland 

x 50% 

Chinese leisure 

visitors to 

Queensland 

% visiting 

TNQ 

x 44% 

Chinese holiday 

visitors to 

TNQ 

390K 195K 85K 

Port could realistically attract 12,800 Chinese visitors per year and gain $7M revenues, growing to $14M by 2016; 

Further revenue upside requires more inbound flights, improved access into PD, Chinese-language friendly tours 

and tourist guide, enhancement of accommodation, retail, dining and entertainment offerings. 

PD’s 

share 

2012E 

Visitors 

2012E 

Revenue 

2016E 

Visitors 

INDICATIVE 

2016E 

Revenue 

10% 8.5K $5M 11K $9M 

15% 12.8K $7M 17K $14M 

20% 17.1K $10M 23K $18M 

25% 21.4K $12M 29K $23M 

Baseline estimate 1 

1 The baseline scenario is based on the current Port Douglas’ share of TNQ tourists (15%); this is conservative compared to Port Douglas’ share of TNQ visitors from the 

UK, which is circa 30%. Revenue is based on each visitor spending 3 nights, growing to 4 nights in 2016 and spend $172 per night (19% higher than $145 average – 

Chinese visitors typically spend around19% more than average visitors when visiting Qld), growing at 3% inflation. Visitor growth is based on TRA forecasts 

Source: Tourism Queensland, TPDD 

51

4 

Infrastructure development is required but has to be selective, 

based on the vision and identity of Port Douglas 

Area for improvements: Town Infrastructure 


• Low investment levels has 

lead to aging infrastructure 

particularly in retail and 

accommodation 

• The town looks dated 

relative to competing 

destinations 

• Investment planning lacks 

vision and alignment with 

Port Douglas brand 

positioning 

• Limited availability of 

transport or access into 

and around the town 



• Encourage investments 

that are consistent and 

leverage the identity of 


(and discourage those 

that are inconsistent) 

• Start with smaller targeted 

investments in the right 

areas in the short term 

• Cooperate with local bus 

and tour operators to 

improve quantity and 

quality of transport service 

Implications 

• Port Douglas will attract 

the desired target 

segments, leading to 

increased visitor volume, 

improved price premium 

and preservation of the 

town’s identity 

• Improved returns from 

Port’s natural assets 

• Restoration of Port 

Douglas’ competitive 

position in local and 

international markets 

52

4 

Port Douglas needs to invest in resources to enable tourism 

and be more competitive as a destination 

Opportunities and recommendations 

Endowed 

Created 

Supporting 

Tourism resources Recommendations 

Great Barrier Reef u 

Daintree National Park u 

Four Mile Beach u 

Subtropical climate u u 

Cultural heritage u u 

Arts and crafts u u 

Cultural diversity u u 

Tours, attractions and activities u u 

Accomodation u u 

Spa and wellness u u 

Special events u 

Entertainment u u 

Restaurants and dining u u 

Sporting events u 

Shopping u u 

Local transport u u 

General infrastructure u u 

Quality of service u u 

Hospitality u u 

Accessibility of destination u u 

Village precinct u u Improved town planning aligned with brand positioning 


Competitiveness 

L M 

u Current position u Future state/opportunity 

Source: MBS analysis, World Heritage Organization, TPDD, Sustainable Tourism CRC 

H 

Use marketing communications to manage negative perceptions 

of climate in the region (very difficult but must keep trying) 

Collaboration with Mossman to make indigenous culture a 

drawcard 

Develop new flagship resort + upgrade existing properties 

Develop a world-class gastronomic experiences featuring local 

produce 

Develop an accreditation system supported by a training and 

development program 

53

5 

Continued deterioration in low season visitor numbers need to be 

immediately addressed to reduce pressure on business profit 

Area for improvements: Low seasons 


• Number of visitors in Jan- 

Mar has been declining, 

causing significant 

pressure on business 

profitability 

• Increasing price discounts 

and inconsistent service 

levels during low seasons 



• Develop specific 

marketing strategy 

focusing on the wet (low) 

season – this can include 

both leisure and business 

segments 

• Leverage asset features 

that are specific to the wet 

season 

• Organise regular annual 

events to take place during 

Jan-Mar 

Implications 

• Lifting low seasons reduce 

short-term pressure on 

business profitability and 

reduce the urge for price 

discounting 

• Improved profits allow for 

reinvestment in the 

medium term to rejuvenate 

the town’s image 

• Less seasonality supports 

more consistent service 

levels and better inventory 

management 

54

6 

A comprehensive plan for the Tourism industry is required to 

orchestrate business decisions towards a unified vision 

Area for improvements: Planning and co-ordination 


• No overarching, unified 

vision for Port Douglas 

to guide individual 

actions and community 

• Development plans and 

investment either in limbo 

or taking too long to action 

• Little co-ordination 

between tourism-related 

businesses 

• Poor town planning - 

mishmash of high-end and 

budget service providers 

sitting alongside each 

other 



• Need to agree on a 

unified vision across all 

tourism-related 

businesses as a basis 

for decision making in 

marketing and 

investments 

• Appoint a representative 

council or action group for 

oversight and evaluation 

• Develop tactical plans and 

conduct regular evaluation 

of the progress 

Implications 

• Consistent projection of 

Port Douglas’ identity – a 

clear brand positioning 

allows PD 

to sustain and grow price 

premium 

• Better matching of supply 

and demand for 

accommodation, leading to 

improved profitability 

• Faster development 

approvals 

• Improve tourist numbers 

and spending through 

bundled offerings 

55

S2 Focus Marketing: Target key market segments that will 

drive growth and reverse the “massification” trend 

1 • Implement a new marketing strategy to target specific segments and 

differentiate from other tourist destinations 

• Returning Couples & Families (domestically) and 

• First-time Couples & Families (internationally) 

2 • Enhance commitment and strategic efforts towards capturing 

emerging Asian markets 

3 • Focus on the key motivators that drive domestic and international 

purchasing behaviour (Rest and Relax and Great Barrier Reef) 

4 • Media strategy must reflect buying behaviour: online media (70%) 

for domestic and travel agents (50%) for International tourists 

5 

• Develop a creative and fun events calendar underpinned by 

“iconic”events to drive awareness and visitation 


56

The fundamental shift in tourism behaviour demands a new marketing 

strategy to target specific segments 

Guest arrivals in Port Douglas 

30000 

28000 

26000 

24000 

22000 

20000 

18000 

16000 

14000 

12000 

10000 

Source: ABS 

No change in seasonality 

Overall increase in tourists 

Mar-03 

Jun-03 

Sep-03 

Dec-03 

Mar-04 

Jun-04 

Sep-04 

Dec-04 

Mar-05 

Jun-05 

Sep-05 

Dec-05 

Mar-06 

Jun-06 

Sep-06 

Dec-06 

Mar-07 

Jun-07 

Sep-07 

Dec-07 

Mar-08 

Jun-08 

Sep-08 

Dec-08 

Mar-09 

Jun-09 

Sep-09 

Dec-09 

Mar-10 

Jun-10 

Sep-10 

Dec-10 

Mar-11 

Jun-11 

Sep-11 


Tourist numbers in Sep- 

11 are lower than Sep- 

05 with increased 

seasonality. 

Businesses that have 

targeted specific 

segments in marketing 

activities (MICE or 

Weddings) have 

experienced growth. 

Increasing 

seasonality 

indicates 

new tourist 

patterns 

Changing tourist 

patterns indicate the 

need for a different 

marketing strategy 

that targets specific 

consumer segments. 

57

Port Douglas must strongly differentiate from other tourist destinations 

because it can uniquely deliver a personalised and relaxed experience 

High 

Activity 

Level 

Gold Coast 

High rise 

builidings 

Adventure 

Fast Paced 

Cairns 

Party 

Busy 

atmosphere 

and crowds 

Chain Stores 


Hawaii 

Personalised 

Boutique/Spa 

Relax 


Village 

Scuba Diving 

Private reef tour 

in a relaxed 

atmosphere Away from 

Hamilton 

the crowds 

Island Secluded Beach 

Scuba Diving 

in a party 

atmosphere 

Developed 

Beach 

Rest 

Mass market 

Hideaway 

Sailing 

Thailand Massage 

Shopping Malls 

Buildings no 

higher than a 

palm tree 

Local 

produce 

Broome 

Slow Paced 

Low 

Activity 

Level 

58

Returning Couples & Families (domestically) and First-time Couples & 

Families (internationally) drive most value for Port Douglas 

Domestic Visitors 

100% 

80% 

60% 

40% 

20% 

0% 

Number of Visitors Spending Budget* 

6% 

9% 

12% 

13% 

29% 

30% 

3% 

8% 

10% 

11% 

34% 

33% 

Family Holiday makers and 

Restful Breakers contribute over 

60% of the spend, demonstrating 

that they are valuable segments 

and should be targeted in 

domestic marketing activities. 


100% 

80% 

60% 

40% 

20% 

Source: James Cook University Survey of 987 tourists in Port Douglas in 2011. 

International Visitors 

0% 

Number of Visitors Spending Budget 

9% 12% 

9% 

11% 

13% 

24% 

35% 

While Campers & 

Backpackers represent 

35% of the international 

market they only account 

for 16% of spending and 

are therefore not a 

valuable segment. 

13% 

9% 

20% 

31% 

16% 

Other including tours 

Restful Break 

(Repeats) 

Social 



Campers & 

Backpackers 

International spend is 

driven by First-time 

couples (non-repeat) 

and Family Holiday 

makers, together 

accounting for almost 

50% of spend. 

59

Chinese tourists are the fastest growing international visitor segment 

and are a valuable segment going forward 

Japan 


UK 

Chinese – First Timers 

“China is now Australia's largest source market in terms of economic value, 

worth $3.5 billion, followed by United Kingdom ($2.6 billion), New Zealand 

($2 billion), and USA ($1.8 billion).” (Tourism Australia December 2011) 

Composition of international visitors by country of origin 

Australia Port Douglas 

Proportion of tinternational visitors 

35% 

30% 

25% 

20% 

15% 

10% 

5% 

0% 

USA 

NZ 

China 

Singapore 

Korea 

Malaysia 

Germany 

HK 

-5% 

-20% -10% 0% 10% 20% 

5-year CAGR (2006-11) 

Proportion of tinternational visitors 

35% 

30% 

25% 

20% 

15% 

10% 

5% 

0% 

Japan 

UK 

USA 

Sweden 

Netherlands 

Germany 

NZ 

France 

Canada 

Italy 

-5% 

-20% -10% 0% 10% 20% 

5-year CAGR (2006-11) 

60

Domestic and international Value Propositions should drive all 

marketing decisions and be reflected in messaging and imagery 

Domestic Value Proposition 


Tropical climate 


“TROPICAL RELAX” 

International Value Proposition 

Laid back Australian lifestyle 

Great Barrier Reef 



“REEF AND RELAX” 


Imagery must reflect Tropical Relax 

Imagery must reflect Reef and Relax 

61

“Rest & Relax” is a common motivator while only international tourists 

rank GBR as top motivators 

Domestic 

Restful Breakers 

Domestic 

Families 


International 


International 

Families 

1. Climate Time with Family Rest & Relax Rest & Relax 

2. Rest & Relax Rest & Relax Visit the GBR Visit the GBR 

3. Visit Beaches Climate Climate 

4. 


environment 

5. Restaurants & Dining 

Visit Beaches 


environment 

All segments value the 

rest and relax qualities of 

Port Douglas ranking #1 

internationally, and #2 

domestically. 

Source: Synthesized from 2011 Exit Survey, James Cook University 


environment 


environment 

Climate 

Visit Beaches Visit Beaches 

International tourists come to visit GBR, 

however domestic tourists (73%) do not 

consider GBR as a reason to visit PD. 

However, approximately 50% of the 

tourists visit GBR once in PD. 

The most 

prominent reason 

for coming to PD 

across the four 

segments is R&R. 

62

Domestic “Restful Breakers” primarily motivated by climate and 

relaxation provide the greatest value (34%) to Port Douglas 

Domestic Restful Breakers 

Couples 

50 years plus 

Returners (88%) 

Income is 85k+ and they eat 1.51 

meals out a day. 

Average spend in Port 

is $4,492. 

64% from Victoria, 26% from NSW, 

6.8% from Qld 

89% Stay 5+ days, in a holiday unit 

(74%) or resort (15%). 

Book via online travel website (45%) 

or to the accom. directly (27%). 


“DOMESTIC 

RESTFUL 

BREAKERS” 

VALUE: 

Climate 

Rest & Relax 

Quality Time 

Beaches, Nature & 

Restaurants 

Motivation to visit 


1. Climate 

2. Rest & Relax 

3. Visit Beaches 

4. 


environment 

5. Restaurants & Dining 

Only 45% visit the GBR 

and 59% the Daintree. 

Ref: James Cook university 

63

“Family Returners” account for 30% of the domestic market and spend 

the longest time in Port, spending an average of $7,000 

Domestic Family Returners 

Families with 2 children 

Returners (81%) 

Income is 65k+ and they eat 1.42 

meals out a day. 


is $7,363. 

77% stay 7 nights or more, 15% stay 

4 or 5 nights 

81% stay in a Holiday apartment/unit 

and 15% in a Resort. 

Book via online travel website (41%) 

or to the accom. directly (32%). 


“DOMESTIC 

FAMILY 

RETURNERS” 

VALUE: 

Together/ 

Romance 

Quality Time 

Rest & relax 

Easy family time 



1. Time with Family 


3. Climate 


5. 


environment 

52% visit the GBR and 

47% visit the Daintree. 


64

“First Time Couples” account for 24% of international visitors and 31% 

of international spend 

International 

First Time Couple 

Couples 

50 years plus 


is $4,946, 

eat 1.55 meals out day. 

42% from the UK, 

18% from NZ, 

67% stay 5+ nights. 

49% stay in a Holiday apartment/unit 

and 22% in a Resort. 

Book via travel agent (62%) or online 

travel website (16%). 


“INTERNATIONAL 

FIRST TIME 

COUPLES” 

VALUE: 

Rest & Relax 

Reef & Exploration 

Australian lifestyle 

(sun, sand, relaxed 

atmosphere) 

Nature, Village 




2. Visit the GBR 

3. Climate 

4. 


environment 



71% the Daintree. 


65

Family holidays are popular with International tourists too, who value 

relaxation and the Great Barrier Reef above all else 

International 


Families with 1 or more children, 

23% return customers 


is $5510, 

eat 1.48 meals out day. 

34% from the UK, 

15% from the US, 46% Stay 5+ 

Days 

38% stay in a Holiday apartment/unit, 

15% in a Hotel/Motel and 12% in a 

Resort. 

Book via travel agent (41%) or online 

travel website (16%). 


“INTERNATIONAL 

FIRST TIME 

COUPLES” 

VALUE: 

Rest & Relax 

Reef & Daintree 

Australian lifestyle 

(sun, sand, relaxed 

atmosphere) 

Nature, Village 




2. Visit the GBR 

3. Climate 

4. 


environment 



78% the Daintree 


66

Domestic and International segments can be combined as they share 

key attributes, resulting in 2 clear target segments 

Domestic tourists International tourists 


Families 

Domestic segments 

• High awareness of Port Douglas 

• 70% returners 

• Value: Quality family time, tropical climate, “rest and 

relax” 

• Majority book via an online travel or accommodation 

website (60%) 

Marketing Objective: Remind Australians about Port 

Douglas and get them to come back again. 


First Time Couples Families 

International first timers 

• Low awareness of Port Douglas 

• Value: “laid back Australian lifestyle”, Great Barrier 

Reef, quality family time. 

• Most book via travel agent (45%) 

• Many book via an online travel or accommodation 

website (32%) 

Marketing Objective: Convert international visitors 

who intend on travelling to Australia to visit Port 

Douglas as well. 

67

Media strategy must reflect buying behaviour: online media (70%) for 

domestic and travel agents (50%) for International tourists 

Domestic tourists International tourists 


Families 

• • High awareness of Port Douglas 

• • 70% returners 

• • Majority book their trip online (60%) 

70% OF DOMESTIC SEGMENTS HAVE ALREADY 

BEEN TO PORT DOUGLAS, 60% BOOK THEIR 

TRIP ONLINE. TARGET THEM WITH A REMINDER 

ONLINE CAMPIGN: 

• Online banner campaign that clicks through to the 

accommodation page of TPDD. 

• Target websites that affluent Australian couples and 

families visit regularly in Victoria and New South 

Wales. 


First Time Couples Families 

• • Low awareness of Port Douglas 

• • Most book via travel agent (45%) 

LACK MONEY TO INCREASE AWARENESS 

INTERNATIONALLY, TARGET TRAVEL AGENTS. 

Internationally we recommend to target: 

A) The UK - The largest International segment 

B) China – The fastest growing market 

Develop relationship with travel agents. 

Invest into brochures, posters and sales material for 

POS in English and Chinese. 

Host more international focused travel agents in Port 

“families” 

* CONTINUE TO INVEST IN ENTERTAINMENT MEDIA THAT HAS EXPOSURE TO FAMILY UK PROGRAMS. 

68

With a number of modifications to websites more visitors could be 

attracted 

Modifications to PDDT and private websites will 

increase visitor traffic and conversion 2 

Modifications (PDDT): 

• Introduce the latest Search Engine 

Optimisations 

• Make PDDT interface more intuitive (have menu 

bars/search option only at the top) 

Modifications (Private Websites): 

• Provide private websites with consistent 

message and information about Port Douglas. 

• Support other means of online information for 

visitors (mobile applications, social media pages, 

etc.) 

Anticipated Impact: 

• Improved websites are better able to engage 

visitors attention potentially leading to an 

increase in the conversion rate** of 0.1% to 

0.5%. 

• Increased ease of finding full information about 

Port could be translated to more traffic. 


$3.5m-17.6m of value is expected from 

additional visitors each year 1 

Millions 

$20 

$18 

$16 

$14 

$12 

$10 

$8 

$6 

$4 

$2 

$- 

$12.4 

$2.5 

Additional 

Revenue 

(Domestic) 

$5.2 

$1.0 

Additional 

Revenue 

(International) 

INDICATIVE 

$17.6 

$3.5 

Total Addtional 

Revenues 

1 Calculated based on an average of 5.05/5.11 nights per visit (domestic /international) and an average spend per night of $130/$190 (domestic/ 

international) 

2 % of traffic translated to booking, typically ranging between 0.4% and 12% 

Source: Tourism Research Australia, IVS Core, (2009-10, 2011 figures for P.D); Team analysis 

McKinsey Quarterly 2001 (E-performance: The path to rational exuberance) 

69

Develop a creative and fun events calendar underpinned by “iconic 

events” to drive awareness and visitation 

EXAMPLE of proposed Marysville Calendar to drive revitalisation 


70

S3 Stimulate Investment: Secure “public” investment and create 


1 • Secure public investment for key revitalisation drivers and 

for the community to have visibility/input into public spending 

2 • Provide incentives for private investors to develop targeted 

sectors eg. MICE, Retirement 

3 

• Attract new investment for developments to restore 

“premier” destination status and attract affluent tourists 


71

Secure CRC investment in key revitalistion drivers and for town to 

have visibility/control of public spending 

There are 3 channels through which public money can flow into Port Douglas 

Capital Works and 

Services 

• Road upgrades 

• CCTV 

• Street Lighting 

• Waste Removal 

• Esplanade Upgrade - 

$0.6M 

• Etc. 

Base level of council’s 

activity 


Major Projects 

• Port Douglas Master Plan 

Implementation -$60M 

Catalytic projects driving 

the growth of the 

economy 

Different Funds and 

Programs 

• Diversification Fund 

• Tourism Fund – TPDD 

received $50K in 2011 

Amounts granted are 

insignificant for material 

growth of economy 

How major projects are initiated? 

• Identification of particular need/addressing particular problem in community e.g. Decline in 

tourism results in tough conditions for resort owners and retailers 

• Community consultation 

• Project proposed for evaluation and investment 

• Project must have major impact on the local economic development 

Source: CRC Annual Report 2010/2011 , Informational interviews with Katrina Houghton and Liz Collyerexuberance) 

72

A major catalytic public investment is a key driver of economic 

revitalisation of Port Douglas 

Waterfront 

development 

75% of the Port 

Douglas community 

supports the 

project, including 

the lagoon 

...YET 

minority is vocal: 

no lagoon is better 

than the “puddle 

in the park” 

More Tourists 

Longer Stays 


Improved cash 

flows for resort 

owners 

Need for unified voice 

and big picture thinking 

Better financing prospects → 

refurbishment of the resorts 

Improved conditions to attract 

the right tourist segments 

Source: Port Douglas Masterplan Implementation. Consultation Report; Cairns.com.au “Call to delay and review PD lagoon”; 

Regional Development Fund Australia – 2nd Round Grant Applications 

73

Provide incentives for private investors to develop targeted sectors eg. 

MICE, Retirement 

Maturing 

• Meetings, 

Incentives, 

Conventions and 

Exhibitions 

• Sugar 

• Fishing 


Growing 

• Retirees’ Hub 

• Arts and 

Recreation 

Services 

• Professional and 

Technical 

Services 

Emerging 

• Fly In – Fly Out 

• Healthcare and 

Social Services 

74

The Port Douglas share of the MICE market is significant and 

incentives for investment must be provided 

Existing 

economic 

sector 

Contributes 

$15 - $20 

million to 

economy 

Fast growing 

market but… 


• Port Douglas hosted 120 - 

130 business events out of 

total 480 events in TNQ in 

2011 

• Business meetings 60% 

• Incentives 40% 

• 25% market share 

• MICE market forecasted to 

grow at 10% CAGR 

• Risk of eroding current 

market share unless 

existing facilities are 

upgraded to be 

comparable to competitors 

Source: Tourism Queensland; Business Events Cairns; Tourism Action Plan to 2012 (Queensland Government) 

$m 

25 

20 

15 

10 

Australia 

$8.5b 

Queensland 

$1.2b 

Cairns Region 

$60 - $80m 


$15- $20m 

Assumption: 1% decline in market share 

per annum to 20% by 2017 

2009 2010 2011 2012 2013 2014 2015 2016 2017 

75

Changing demographics show importance of retirees and Port 

Douglas must seek to attract this segment 

Decrease in numbers of 

middle aged persons 

Source: Forecast.id CRC Population and Growth Forecasts 31/03/2011 


Increase in retirees who may 

be interested to relocate to PD 

76

FIFO is emerging as major segment nationally; Port Douglas must 

seek to attract the right type of FIFO worker 

Estimated Change in Value Added in 2006 – 2011 in mining $(millions) 

2006 

~$7.9m 


2011 

~$12m 

• Over 90% increase in mining jobs over the last 5 years 

• Each job adds approximately $412k to the economy 

77

S4 Call to Immediate Action: Agree and implement actions to 

rebuild the “heart and soul” of Port Douglas 

Enrich the Arts & Culture 

scene of PD to give visitors a 

memorable experience 

Offer a world class 

hospitality and service to 

tourists ALWAYS 

Create a unified leadership 

structure for the clubs and 

community 

Improve transportation 

services 

Ensure PD is a safe and 

secure destination for both 

locals and tourists 

Ensure that the Port Douglas 

Amenities are consistent 

with its high-end identity 


• Commission local artists to create an iconic image at the entrance 

to PD 

• Utilise community assets such as Sugar Wharf to promote local 

artists and their work 

• Conduct a 2 hour monthly PD service workshop 

• Instil a sense of ambassadorship in all residents 

• Create a leadership structure for all clubs and societies in Port 

Douglas 

• One voice of the clubs towards leadership of the community 

• Resolve transport service levels 

• Transport to/from Mossman is infrequent 

• CC TV Cameras should be installed on Macrossan St 

• Street lights should be installed on Warner St 

• Better utilisation of Community hall 

• Hurricane shelter proposal should be modified to a multi-purpose 

facility for community use 

78

Enrich the Arts & Culture scene of PD to give visitors a memorable 

experience 

Commission 

local artists to 

create an iconic 

image at the 

entrance to PD 

Utilise 

community 

assets such as 

Sugar Wharf to 

promote local 

artists and their 

work 


• A unifying symbol for Port Douglas 

• Can be used on everything from 

Postcards to T-Shirts to replica 

artworks 

• Set Port Douglas apart from other 

GBR destinations 

• Have an art hall where local artist 

rotate there exhibitions and can put 

up works for sale 

• Promotes Port Douglas as an art 

hub 

79

Offer a world class hospitality and service to tourists ALWAYS 

Conduct a 2 

hour monthly 

PD service 

workshop 

Instil a sense of 

ambassadorship 

in all residents 


• Ensures that every employee 

knows the standard of Port 

Douglas hospitality levels 

• Provide participants with 

certification that they can use to get 

employment in Port Douglas 

• All residents are hosts to the tourist 

guests and should always be “on 

duty” to make the guests welcome 

• Employees of local businesses in 

uniform is especially noticeable 

80

Create a unified leadership structure for the clubs and community 

Create a 

leadership 

structure for all 

clubs and 

societies in Port 


One voice of the 

clubs towards 

leadership of the 

community 


• Have one executive board to 

oversee groups of clubs to facilitate 

asset allocations 

• Clubs with similarities are grouped 

together with their own leadership 

team 

• Provides a unified message of the 

community towards Cairns 

• Creates a forum for discussions 

within the community 

Exec 

Sports Nature Community 

Leadership/ 

Protection 

81

Social and Community Clubs in Port Douglas 

Sports Clubs 

Tennis 

Fishing 

Boxing 

Rugby League 

Cricket 

Rugby Union 

Basketball 

Netball 


Nature Clubs 

Executive 

Community 

Outrigger Canoe 

Sailing 

Boating & Fishing 

Community Clubs 

Seniors Club 

Combined Club 

Rotary Society 

Historical Society 

Leadership / 

Protection clubs 

Chamber of 

Commerce 

TPDD 

Marine Parks 

GBR Marine 

Authority 

Coast Guard 

Volunteers 

Surf Lifesaving Club 

82

Improve transportation services 

Resolve the 

transport 

service level 

issues 

Transport 

to/from 

Mossman is 

infrequent 


• Two bus companies create 

confusion amongst tourists 

• The competition is so fierce that 

sometimes commuters suffer due 

to lack of predictable services 

• There is only one company 

operating services to Mossman 

(Sun Palm) 

• Although this may be sufficient for 

tourist needs, the infrequency and 

cost of getting to Mossman is high 

83

Ensure PD is a safe and secure destination for both locals and 

tourists 

CC TV Cameras 

should be 

installed on 

Macrossan St 

Street lights 

should be 

installed on 

Warner St 


• There has been an increase in the 

number of late-night incidents due 

to the increasing popularity of PD 

nightlife such as Iron Bar 

• CC TV Cameras would enable 

Police to identify instigators and 

thereby reducing these incidents 

• There have been some assaults on 

Warner St recently 

• Lack of lighting has been identified 

as a factor since Warner St is very 

dark 

84

Ensure that the Port Douglas Amenities are consistent with its highend 

identity 

Better utilisation 

of Community 

hall 

Hurricane 

shelter proposal 

should be modified 

to a multipurpose 

facility 

for community 

use 

Improve 

Connectivity and 

Online presence 


• Cost of renting community hall 

should be reduced for community 

clubs in order to promote usage 

• Community hall should be opened 

up to hold art exhibitions once a 

fortnight/month to promote local art 

community 

• Proposed Hurricane shelter to be 

modified in order to be a multipurpose 

centre for community 

• Could be used as recreation hall for 

teenagers to use during nonhurricane 

seasons 

• Online presence should focus on 

one brand and key messages … 

remove conflicts in websites 

• Private business sites can market 

the Port Douglas brand 

• Free WiFi likely to increase 

economic activity 

85

Improvements in online presence and the provision of free WiFi will 

provide economic benefit to Port Douglas 

Prioritising the different initiative that could take Port Douglas 

forward from Technology and Innovation perspective 

Impact 

[$,exposure] 

High 

Med 

Low 

10 

Hard to coordinate 

NBN is essential 

Low Med High 

Feasibility 

[$,complexity] 

1 Denotes a fast internet pre-requisite (NBN) 


8 

Borderline benefit 

6 

2 

1 

No direct benefit to Port 

7 

9 

5 

4 

3 

X 

Initiative number 

High Priority Initiative 

1. Innovation committee for Port 


2. MICE – Meetings, Incentives, 

Conferences and Exhibitions 1 

3. Social media marketing – 

Facebook + QR codes 

4. Free Wifi (analytics, survey) 

5. Improve online presence 

6. End to end booking website 

7. Wind farm and innovation centre 

8. Hydro electric 

9. Daintree research centre 

10. Remote imaging (medical) 1 

86

Installing free WiFi will provide both financial and non financial 

benefits ... 

Non financial benefits Financial benefits Douglas: 

Allow visitors satisfaction data to be collected 

• Short online questionnaire for visitors who use 

WiFi. 

• Results can be used as part of market research. 

Provide new targeted communication channels 

• Last minute business promotions (activities, 

dinning, accommodation, etc’). 

• Disseminate information about events, activities, 

and public celebrations 

Promote Port Douglas through social media usage 

• Encouraging location based social media usage. 

Meet demand from business and leisure visitors 

• Both business and leisure visitors are increasingly 

demanding better connectivity as can be observed 

from visitor surveys. 

Increase online rating and satisfaction 

• Research indicates that free WiFi offered by hotels 

contributes to improved visitor satisfaction as 

measured by online. 


333,000 visitors to Douglas Region each 

year 

50% own Smartphone = 166,500 visitors 

Approximately 100% will use the free 

WiFi = 166,500 visitors 

Assuming that only 15% of the visitors will 

spend, on average, an additional $10 leads 

to an increase of about $250K in 

economic activity each year. 

Source: Google smartphone research, PDDT Visitor Surveys Q1-2 2011, Team analysis, “Improving hotel ratings by 

offering free Wi-Fi”; University of Las Palmas de Gran Canaria, Las Palmas, Spain 

87

... at an initial investment of $100k and annual running cost of $19k 

Initial investment of $100k is required 

based on a similar project done in 

Brisbane 

Brisbane’s ‘WiFi in parks’ 

Initiative is expected to include 20 

additional parks at a cost of $2m. 

With an average park area of about 

the same as Macrossan street, the cost 

of installing WiFi equipment should be 

around $100k. 

1 Subjected to Acceptable Usage Policy 

Source: Brisbane City Council website, Telstra website, Team analysis 


Annual internet connectivity cost would 

range between $3,720 to $18,600 

It will require about 5 Telstra connections, 

each of which support some of the free 

WiFi around the town centre 1 

Telstra Connectivity Cost 

Unlimited internet connection 

[1 Month] 


[1 Year] 

5 x unlimited internet 

connections [1 Year] 

$310 

$3720 

$18600 

88




Context 

1 

2 

3 

4 





Appendices 

A1 

A2 

A3 




89

IV 

Delivering revitalisation will require a strong co-ordinated approach 

and a team of leaders supported by the citizens 

1 

2 


3 

Establish the governance structure and leadership required to 

drive the strategy 

Implement a process to secure buy-in from all key 

stakeholders and the willingness to take outlined actions 

Agree actions plans, systems and processes to manage and 

monitor progress 

90

A new board should be created to represent the interests of Port 


Structural 

Solution 

Key Skills 

Key 

Representatives 

Charter – the PD 

Board will: 


• Create a single PD governance body. 

• Accountable for co-ordination across the town. 

• Responsible for creating the PD economic development plan. 

• Economic Development 

• Marketing 

• Community Engagement 

• Cairns Council 

• Chamber of Commerce 

• Major Resorts Representatives 

• Allocate funds received from Cairns Council for marketing and 

non-essential services 

• Represent PD with external investors 

• Develop the PD economic development and strategic plans 

• Align activity in PD to the strategic plan 

• Marketing PD, including defining the brand and the marketing plan 

• Lead communication and community engagement 

91

A Board structure is recommended, supported by formal processes, 

and with members acting as role models for Port Douglas 

Experience 

Strategic 

Accountable 

Transparent 

Structural Examples 

Board Charter, roles and 

authority to deliver 

strategic plan for PD 

Board directly 

accountable to Cairns 

Regional Council 

Governance framework 

requiring public 

reporting to CRC, clear 

guidelines on selection 

of Board members and 

their duties 


Formal Process 

Examples 

PD strategic plan to be 

reviewed and updated 

regularly 

Board to have finance, 

risk and audit 

responsibilities 

Minutes and records to 

be made publicly 

available. Regular 

communications with PD 

community 

Role Modelling 

Examples 

Recruit esteemed, 

successful leaders with 

strategy experience 

Have regular discussion 

on PD agenda with CRC 

councillors, CEO 

Hold community 

discussions about 

defining how CRC can 

help PD and articulate 

how PD is benefitting 

from CRC 

92

Representation is Driven by the Composition of the Board 

and Eligibility for Selection 

Cairns Regional Council Board composition 

should reflect broad 

stakeholder 

Port Douglas Economic Development Board 

interests – large, 

small business, 

community. 

President 

The President is 

the public figurehead 

and has 

responsibility to 

bring out the very 

best contributions 

of energy, 

commitment and 

expertise of the 

Board and staff. 


Port Douglas Councilor 

CRC – Economic Development Dept, Port Douglas 

Manager 

Treasurer – Responsible for financial stewardship 

and reporting 

Secretary – Calling meetings, recording minutes 

Board Member 

Board Member 

Economic 

Development 

Community 

Engagement 

Marketing 

Tourism 

93

Collectively, Board members will ideally possess relevant industry 

experience whilst broadly providing relevant expertise 

Experience Government 

Field of 

expertise 

Economic 

Development 

Community 

Engagement 

Marketing 

Tourism 

Select Board members 

will currently hold senior 

CRC positions and can 

• Drive change through 

their strong influence 

• Apply for large-scale 

funding 

• Escalate proposals 

and issues directly to 

the Mayor and CRC 

Board 


Large-scale 

Business 


will ideally possess: 

• Relevant experience 

as a director/executive 

within a multi-million 

dollar turnover 

company 

• A proven record of 

successfully delivering 

quality business 

outcomes whilst 

influencing key 

decision makers 

Non-Profit 

Organisation 


will ideally possess 

• Relevant experience 

as a director/executive 

within a reputable nonprofit 

organisation 

• In-depth knowledge of 

the key issues 

affecting Port Douglas’ 

businesses and 

community 

94

4 Key criteria required for an effective governance model 

A 

B 

C 

D 

Criteria Description How Solution Meets It 

Central authority 

for decision 

making and 

alignment 

Needs to engage 

with relevant and 

influential bodies 

in PD 

Meet community 

expectations for 

effective 

governance 

Direct influence 

over key PD 

levers – funding 

and tourism 


Single organisation that has the authority to make 

PD level decisions, allocate funding and represent 

PD at regional level (with Cairns Council) and with 

key stakeholders (interested businesses) 

The new board needs to have representation from 

PD and Cairns that have a high local relevance to 

PD and have the requisite influence to push the 

PD agenda/projects 

PD Board needs to be representative, strategic, 

transparent and accountable to the community 

Need a recognised authority to control funds as a 

means of driving programs and ensuring sufficient 

buy-in from PD and Cairns. Also requires direct 

influence over PD tourism as a key local priority 

and driver of initiative alignment 

PD Board 


Commerce, Cairns 

Council and Advisory 

Board are represented 

Transparency in PD 

Board members 

selection 

TPDD to be 

amalgamated into PD 

Board 

95

A 

Babinda has demonstrated the effectiveness of a central local body, 

accountable for decision making and alignment 

The Town 

The Problem 

Community 

Engagement 

Council 

Engagement 

Source: Babinda Projects Steering Committee – update in activities – 24th August 2011 


• Babinda is a town of 1200 people, located 60km south of Cairns. 

Its major industries are agriculture and some tourism. 

• Declines in the local economy from the late 1990’s, cyclones and 

closure of the sugar mill have all impacted the town. 

BABINDA TASKFORCE - http://babinda.info/ 

• Community Association formed in 2000 to turn around the 

economic misfortunes of the town. 

• Created revenue generating services in order to become self 

sustaining, eg. Centrelink agency, QLD Rail Agent, Office Services. 

• Initiated small-scale community led projects to improve the town. 

BABINDA PROJECTS STEERING COMMITTEE 

• Created in 2011 in response to the closure of the sugar mill. 

• Established as an official committee within Cairns Council. 

• Representatives from Cairns Council(Planning & Econ Dev), 

Babinda Taskforce & Chamber of Commerce, Maryborough Sugar 

and State Government. 

96

B 

CoC, TPDD and CC were identified as most relevant and influential 

groups for the Revitalizing Cairns Project engagement purposes 

Relevance 

• Broad 

community 

representation 

• Relate to 

project at 

hand 

High 

Low 

SPA TAG 

Marine 

Parks 

Historical 

Society 


PD 

Seniors 

Incentive 

TAG 

Wedding 

TAG 

Rotary 

Club 

Chamber 

of Commerce 

TPDD 

Advisory 

Board 

Friends 

of D. 

Shire 

Water 

Group 

Cairns 

Council 

Radio 

PD 

Gazette 

Low High 

Influence 

• Formal (funding, mandate, etc) 

• Informal 

Source: Source for list of Clubs and Community Organisations : http://www.cairns.qld.gov.au/communityinformation/community-services/community-services-directory, 

Position on the Matrix is based on evaluation of the 

project team 

PD 

Newsport 

Daily 

97

C 

Community’s expectation of ideal leadership 

“We need 

someone who 

represents 

everyone!” 

“Currently it’s 

the same 

people in many 

boards. 

“The person 

should be 

someone new” 

“Whoever is in charge 

should not have any 

vested interest” 

Source: Focus Group & Interviews 

“We need someone 

who actually sits in Port 

Douglas” 

Representative 


Adequate Funding 

Strategic 

Transparent Accountable 

“No more volunteers! 

You can’t criticise them!” 

“We need to request a 

separate grants for the 

leadership body” 

“We need one assigned 

full time position who is 

accountable” 

“Get the 

leadership 

team to be 

formally 

approved by 

Council to 

ease actions” 

“We need 

someone 

who’s a strong 

driver, is 

strategic, has a 

plan and can 

make sure that 

money is spent 

at the right 

place. 

98

D 

Existing local bodies lack funding and sufficient representation to 

drive strategic plan and presence to fill the leadership gap 

Business 

representa- 

tion 2011 

Funding 

2011 

100% 

All stakeholders Businesses PD region Businesses PD 

$343M 

N=350 N=300 

Cairns Council TPDD 

www.cairns.qld.gov.au/ TPDD Business Plan Estimation based on membership info: 

http://www.portdouglaschamber.com.au/ 


Paying members 

47% 

53% 

Not members 

~$500’000 

Paying members 

17% 


Commerce 

83% 

Not members 

$8’250 

N/A represents 

Community Groups 

$0 

PD Advisory Board 

99

A change in behaviour requires a change in underlying thoughts, 

feelings and beliefs…. 

Behaviour 

Thoughts 

& Feelings 

Beliefs 

From To 

• Insufficient engagement between the 

various committees and bodies in PD 

and 

– The community 

– Each other 

– Cairns Regional Council 

• I “think” the community wants this. 

• I don’t need to engage to get 

outcomes. 

• We don’t feel our voice is being heard. 

• When I do speak out nothing happens 

• A little bit of engagement is enough. 

• I don’t have any control over outcomes. 

• Its not my job to drive outcomes. 

• Other committees in PD have no power 

or influence either. 

• PD committees can’t get things done. 

• PD is a low priority for CRC 


• Collaborative problem solving and 

decision making at all levels creates 

successful outcomes for Port Douglas. 

• We need to engage with other 

committees to do our job effectively. 

• Input from the community is vital in 

shaping PD strategy and actions 

• We need to engage with the community 

at a level (depth and frequency) that 

clearly meets community expectations. 

• We need to focus on delivering 

outcomes. 

• Only co-ordinated action across PD will 

deliver the desired outcomes. 

• CRC is a critical partner in delivering 

outcomes 

100

The “Influence model” helps us understand what is required to change 

mindsets and behaviours towards achieving a common goal 

Typical elements Typical elements 

• Leadership actions 

• Opinion shapers 

• Interactions 

• Learning 

– On-the-job 

development 

– Training 

– Action learning 

• Talent management 

– Hiring 

– Replacing 

– Retaining 

Source: McKinsey 

Role-modelling 

and leadership 

"… I see my 

leaders behaving 

differently" 

"… I have the skills 

to behave in the 

new way" 

Capability building 


“I will change my 

behaviour if… 

Understanding 

and commitment 

"… I know what 

I need to change 

and I want to do it" 

"… the systems 

reinforce the 

desired change" 

Aligned systems 

and structure 

• Alignment on the 

compelling story for 

change (includes all 

the key elements, 

e.g., values, strategy, 

case for change) 

• Story delivery 

(relevant across 

different stakeholder 

groups) 

• Targets and metrics 

• Management 

processes 

• Business processes 

• Rewards, 

recognition and 

consequences 

• Information systems 

101

Four key levers to create sustainable change in Port Douglas… 

Role Modelling 

• PD councillor has regular discussions with 

CRC mayor and CEO, makes decisions 

public 

• CRC to hold periodic community discussion 

sessions focused on service delivery in PD 

• Successful business leaders(eg. Coconut 

Grove, Posiedon) share their stories with PD 

community and committees. 

Skills & Capabilities 

• Training of service staff to become 

‘ambassadors’ for Port 

• People with experience in local government, 

business and non-profit sectors 

• Leverage professional management 

available within CRC, eg. Economic 

Development, Planning 


Desired Change 

Compelling Story 

• Develop a common and compelling story 

that resonates with the community focused 

on driving change—focus on business 

success stories and build in early wins… 

• Leverage examples of leadership, 

governance and revitalisation, eg. 

Newcastle, Babinda 

Management Processes 

• Port Douglas board with an effective charter 

and governance structure to champion the 

interests and needs of the town 

• Processes for CRC engagement 

• Processes for community consultation and 

engagement 

102

Implement a process to secure buy-in from all key stakeholders and 

the willingness to take outlined actions 

Objective To gain commitment from key stakeholders towards the successful 

adoption, implementation and operation of a new PD Board 

Support 

Approach 

Key 

Stakeholders 

Communication 

Plan 


Outline to key stakeholders the benefits that they will attain by committing 

their support to the Board 

• Cairns Regional Council 

• Port Douglas community 

• Port Douglas businesses 

• Port Douglas committees, clubs and local representative boards 

• Port Douglas Chamber of Commerce 

• TPDD 

• Public notice to local community and businesses 

• Addressing committees, clubs and local representative boards 

• Media publicity 

• Local advertising 

103

Agree actions plans, systems and processes to manage and monitor 

progress 

Step 1 

Step 2 

Step 3 

Step 4 


Establish Mission and Terms of Reference of the Board 

Document agreed Board structure, roles and member competencies 

Advertise for Board positions 

Shortlist, interview and appoint people to Board positions 

Step 5 Establish: (i) agenda for meetings, (ii) meeting deliverables, (iii) process for 

communicating meeting minutes to key stakeholders 

Expected time frame to complete all steps: 4 months 

104

Port Douglas citizens must understand the root causes of its 

performance, develop a Strategic Plan and support its leaders 

I 

II 

Growth and development was underpinned by unique natural assets and 

major investment but has seen a significant decline in the last 5 years 

Community leaders and citizens must confront and overcome several major 


III Long term goals must be established and can be achieved by implementing 

four strategic initiatives 

• S1 – Drive Tourism Growth: Focus the breadth and depth of Port resources to 


• S2 – Focus Marketing: Target key market segments that will drive growth and 


• S3 – Stimulate Investment: Secure “public” investment and create 


• S4 – Call to Immediate Action: Agree and implement action to rebuild the 

“heart and soul” of Port Douglas 

IV 

Delivering revitalisation and growth will require a strong coordinated 

approach and a team of leaders that have explicit support of the citizens 


105




Context 

1 

2 

3 

4 





Appendices 

A1 

A2 

A3 




106

Many citizens, businesses, students and alumni contributed to the 

thinking, insights and analysis for “Revitalising Port Douglas” 

Alex Preuss Gordon Wellham Martin Tranter Stephen Nutt Maximillian Crosseman 

Amelia Hannaford Greg McClean Matt Churchill Stephen Warden Micheal Thadani 

Andy Taylor Iain and Fiona Colmore Matthew Hurley Steve Edmonson Mushfiqur Rahman 

Annetta Tantanis Ian Johnston Michael J. Gabour Steve Thomas Natasha Ahuja 

Anthony Dickinson James Elliot Michelle Howarth Sun Palm Per Johan Olson 

Backpackers Jeff Gale Natalie Johnson Terry Hooper Peter Cook 

Bar Staff Jenni Natalie Stone The Pavilions Port Douglas Priji Vijayakumar 

Billy Quaid Jennifer Hill Oriel Wild Tom Klinger Ravisha Sellahewa 

Bob Brown John and Carolyne Pam Willis Toni & Bruno Bennet Robert Pica 

Brett Hall John and Sue Paula Johnson Toni MacNamara Samuele Romani 

Bruno John Carney Peter Jones Tony McInnes Sebastian Spiez 

Callum Jones John McLean Peter Watts Trevor Hurst Ta Luong 

Chelsea Mee John Willis Pheobe Tourists Vaibhav Saxena 

Cheryl Griffith Josh Phil Holloway Val Schier Victoria Tee 

Chris Dahlberg Julia Lieu Philip Davey Wes and Kristein Connelly Vivienne Gibson 

Claire Tierney Julie Bell Phoebe Kitto Wendy Morris Ziying Hu 

Damian Passlow Karen Burchill Port Douglas Weddings Rob Za Harrison Clara Chen 

David Cotton Katrina Houghton Restaurant Owners Allan Bradley Rocky Armstrong 

Deli Owner Keithea Schaedler Rhys Bawden Anna Balawander Steve Stewart 

Don Morris Ken Dobbs Rick Staunton Bhavna Singh Elena Kuhn 

Don Murday Kevin Eldridge Rob Cooke Brady Gavin John Onto 

Doug Calvert Lachlan Walker Rob Shiels Christpher Betts Omeed Rameshni 

Doug Ryan Leona Brown Roy Weavers Craig Mclure Daniel Ho 

Evelyn Matthews Liz Collyer Russell David Sakti Angela Dickinson 

Fiona Wilson Liz Johnson Saltwater Apartments Felicia Siddharta Olga Rudenko 

Frank Frikker Louise Polain Sam Cullen Gal Caspi Adam Walkom 

Gary Hunt Mandy Stone Shane Branch Grace Ying Milosh_Milisavljevic 

Gaye Scott Marco Piat Soula Kazakis James LeCouture Cameron Leitch 

Glenn Smith Marianna and Luigi Stephen Nutt Jonathan Barlow Selwyn D'Souza 


107




Context 

1 

2 

3 

4 





Appendices 

A1 

A2 

A3 




108



1. Issues and Challenges 

2. Project Charter 

3. Workstreams 

4. Project Governance 

5. Timeline 

6. Key Stakeholders 

7. Deliverables 

109

1. Issues and Challenges 

• Stakeholders have varied visions for the Port’s future 

• Key challenges include revival of tourism, creation of 

a sustainable local economy and resolving social / 

community issues 

• Leadership (formal / informal) and alignment of key 

stakeholders is unclear 

• Comprehensive and coherent plan for resolving 

business, economic and social issues 


110

Stakeholders have varied visions for Port’s future 

Stakeholders have a vision for… 

Positioning of 


Community 

structure 

Step-out growth 

opportunities 

“a season that lasts 

through to xmas [or 

why not the full 12 

months]” 

“integration between landlords 

and the community” 

“increased 

international flights” 


“have Port 

known for 

a unique 

theme“ 

“leverage 

agricultural 

initiatives e.g. 

chocolate 

manufacturing” 

“return of 

the luxury 

market“ 

“Be the #1 tourist 

destination [for a 

targeted 

demographic]“ 

“ensure people leave 

happy—every service 

worker as a salesperson” 

“capture value from 

the mining boom” 

• Stakeholders have 

varied visions for 


• Success will likely 

require significantly 

focusing efforts on 

one or two key 

areas rather than 

developing a range 

of themes 

• Developing a 

shared vision and 

identity for Port 

going forward will 

be key to success 

111

Port Douglas faces challenges in three main areas 

Key challenges Main drivers 

Decline in 

tourism 

Localised 

economic 

challenges 

Social/ 

Community 

issues 


Loss of identity (e.g. fishing village lost/not leveraged) 

Decline in global economic conditions 

High Australian dollar (parity with USD) 

Loss of direct flights from Los Angeles 

Limited real data/market research/fact base to diagnose issues 

Subject to conditions beyond the town’s control (cyclones, SARS) 

Tourism dependent economy 

Oversupply of property during the boom 

Low investment in refurbishment 

Limited tourist ‘season’ (or perception thereof) 

Poor business infrastructure (e.g. telecommunications) 

Limited infrastructure/facilities for retirees (e.g. medical services) 

Shift from high net worth tourists to backpackers 

Uncertain impact of fly-in fly-out mining workers 

112

2. Project Charter for “Revitalising Port Douglas” 

What 

Why 

When 

How 

Who 


Develop a comprehensive Five Year Strategic Plan for 

“revitalising Port Douglas” 

Since the GFC the Port and surrounding region have 

seen a significant decline in the economic and social 

infrastructure. There is consensus that a turnaround 

plan is required. 

The Plan will be developed during the period Feb to 

Apr 2012 

Develop a clear understanding of the issues and 

challenges through analysis of available information 

and engagement with key stakeholders. On this basis 

strategies for turnaround will be developed. 

The Project will be undertaken by MBS MBA students 

under the guidance and mentorship of faculty and 

alumni of the MBS; Business and Community leaders 

will be closely involved in the project 

113

3. Workstreams 

A 

B 

C 

D 

E 

F 

Five Year 


Tourism 

Economic 

Development 

Social and 

Community 

Development 

Technology 

and Innovation 

Marketing 

Strategy 

Key Question 


What initiatives, leadership structures and plans should be 

implemented to “revitalise Port Douglas” over the next five years? 

What are the most effective strategies for reviving the Tourism sector? 

(target segments, investment, infrastructure etc.) 

Which economic sectors should the Port focus on to underpin 

sustainable economic growth in the Port? (Retirement, Retail, 

Construction, FIFO etc.) 

What social and community infrastructure and investment is necessary 

to ensure a vibrant local community? (education, clubs, activities etc.) 

How can developments in technology (eg. NBN) be harnessed to drive 

innovative economic growth in the Port? 

What marketing (branding, promotional, events etc.) strategies will be 

most effective for Port Douglas to ensure success of its Strategic Plan? 

114

All workstreams will engage in a wide range of analysis 

A 

B 

C 

D 

E 

F 

Five Year 


Tourism 

Economic 

Development 

Social and 

Community 

Development 

Technology 

and Innovation 

Marketing 

Strategy 

Current 

State 


Industry 

Structure 

Monitoring 

Stakeholder 

Engagement 

Systems & 

Processes 

Performance 

Competitiv 

e Analysis 

115 

1

4. Project Governance 

Greg 

McClean 

Strategic 

Plan 


Steering Committee 

Councillor - Julia Lieu 

Chamber of Commerce - Ken Dobbs, Doug Calvert 

Tourism Port Douglas - Doug Ryan 

Sheraton Hotels - Lachlan Walker 

Independent - Wendy Morris, 

MBS - John Onto, Selwyn D’Souza 

MBS Faculty Lead 

Selwyn D’Souza 

Doug Ryan 

/ Chelsea 

Mee 

Tourism 

Economic 

Develop- 

ment 

Guidance Counsellors 

Cameron Leitch, TBA 

Port Douglas Workstream Leaders 

Terry 

Hooper 

Natalie 

Johnson 

Social and 

Community 

Develop- 

ment 

Sam Cullen 

Technology 

& 

Innovation 

Steve 

Edmonson 

Marketing 

Strategy 

116

5. Timetable 

0900 - 1230 

Break 

Dates 

1330 - 1400 

1400 - 1500 

1500 - 1600 

1600 - 1700 

Jan Feb Mar 

30th 2 3 4 5 10 17 24 2 8 16 23 30 

Structured 

Thinking 

Structured 

Thinking 

Workshop 

Project 

Briefing & 

Work Plan 

for Site Visit 

and Project 

Problem Framing 

& Fact Base 

Visit to Port 


Syndicates conduct 

primary research, 

interviews, focus 

groups 

Schedule to be 

developed by Port 

Douglas in January 

Daily team meeting 

AM/PM … clear 

outputs to be 

agreed 


Issue Analysis and Strategy 

Development 

Bi-Weekly meetings 

with SD (60 mins) 

Syndicates meet with 

Mentors every week 

(2 hrs) 

Present analysis 

Plan for next week 

Mid Term 

Presentati 

ons by all 

Syndicates 

(30 mins 

each) 

Recommendations and 

Synthesis 

Review 

with Port 


Represent 

atives 

Class Session - Compulsory Attendance. Identify any 

issues or barriers to progress 

Bi-Weekly meetings 

with SD (60 mins) 

Syndicates meet with 

Mentors every week (2 

hrs) 

Present analysis 

Plan for next week 

Final 

Present - 

ations (30 

mins) 

Final 

Report 

Submit 

Final 

Report 



Present to 

Stakehold 

ers at Port 

Douglas - 

selected 

participant 

s 

117

Port Douglas Visit 

Time 1 2 3 4 5 

0800 - 0900 

0900 - 1000 

1000 - 1100 

1100 - 1200 

1200 - 1300 

1300 - 1400 

1400 - 1500 

1500 - 1600 

1600 - 1700 

1800 - 2000 

Arrive Port 



Introduction to Port 

Douglas - 

Seminar & Panel 

Session 

Feb 2012 

Plan for the Day 

Data Collection 

Interviews 

Focus Group Meetings 

Lunch 

Data Collection 

Interviews 

Focus Group Meetings 

Review of Days Activities & Insights 

Dinner 

Closing Session 

Return to 

Melbourne 

118

6. Key Stakeholders 

Workstream Some Stakeholders 

Strategic Plan 1. Cairns Regional Council 

2. Chamber of Commerce 

3. Businesses and Residents of Port Douglas 

4. Visitors to Port Douglas 

Tourism 1. Tourism Australia / Queensland / Cairns 

2. TPDD 

3. Businesses servicing Tourism 

Economic Development 1. Cairns Regional Council 

2. Chamber of Commerce 

3. Industries groups and business owners 

Social & community 

Development 


1. Social and Community groups and clubs 

2. Residents of Port Douglas 

3. Councillors and Local Governments bodies 

Technology & Innovation 1. Cairns Regional Council 

2. Technology businesses 

3. Professionals relying on technology 

4. Community technology providers 

Marketing Strategy 1. Tourism Operators / Bodies 

2. Business Groups and Business Owners 

119

7. Deliverables 

1. Revitalisation Plan identifying the key initiatives and 

activities that Port Douglas must implement 

2. Leadership structures required to “lead” and “coordinate” 

revitalisation 

3. Public and Private funding requirements to deliver 

sustainable outcomes 

4. Systems and Processes to track and manage 

performance 


120




Context 

1 

2 

3 

4 





Appendices 

A1 

A2 

A3 




121

Elements of Tourism massification can be observed today in Port 

Main causes and evidence of 

Tourist massification 

1. Deterioration of facilities and service quality 

2. Low pricing policy 

3. Absence of trendy activities 

4. Absence of facilities required by affluent / 

luxury segment 

5. Rise of low end services and facilities, 

such as budget airlines and accommodation 


Evidence in Port Douglas 

1. Dated properties such as Sheraton Mirage 

- “Stay somewhere else ... not even worth staying here 

if it’s on special!” 

Comment on Sheraton Mirage on TripAdvisor 

(Sheraton Mirage is ranked 27 of 48 in Port Douglas) 

2. Rapidly declining room rates 

- Average room rate declined by 16% in high and 14% 

in low seasons relative to 5 years ago 

3. Few late dining and entertainment options 

- “Try getting dinner after 9.00pm… there is very little 

by way of entertainment on offer for tourists at night.” 

Port Douglas resident 

4. Empty shops and flight of high-end stores 

- The Marina Mirage is old, tired, empty and very 

disappointing…” 

Comment on Marina Mirage on TripAdvisor 

5. Few exclusive or trendy offerings 

122

Evidence of Massification 

Accommodation Development Mixed 

• 4 Star accommodation growth dominant 

• Downgrades expected for several hotels by AAA Tourism 

through a new rating system 

• Many tired properties, lacking refurbishments 

“This property is really in need of some major attention’ 

Comment on Sheraton Mirage, TripAdvisor 

• Many high-quality properties remain, however, little of 

international standard; Google search for top hotels in 

Australia yielded few if any results for Port Douglas 

Declining Revenue and Arrivals 

• Guest arrivals to PD appear to be declining as measured 

by accommodation providers 

• Accommodation takings have fallen faster than arrivals, 

nearly 25% down since 2003 with price discounting 

• The fall in international arrivals has been much more 

dramatic, exacerbated by loss of direct flights 

• The mix of international tourists has remained static 

despite rise of Asian travel to Australia 

Source: MBS Analysis, ABS, Trip Advisor, Google, AAA Tourism 


Guest Arrivals ('000) 

Number of Hotels 

Growth in Hotel Accommodation Port Douglas 

60 

50 

40 

30 

20 

10 

0 

1998-99 2001-02 2006-07 2011-12 

Accommodation Statistics Port Douglas 

290 

270 

250 

230 

210 

190 

170 

150 

2003 2004 2005 2006 2007 2008 2009 2010 2011 

Guest Arrivals PD Accommodation Takings 

Star 

Rating 

90 

85 

80 

75 

70 

65 

60 

55 

50 

5 

4.5 

4 

3.5 

3 

Takings ($ ml) 

123

Poor planning contributes to quicken massification 

Misaligned Development 

• Development of accommodation out of step with demand 

leading to oversupply 

• Planning laws add to incongruent development; for 

instance, accommodation on Macrossan St requires 

shops at the ground floor leading to oversupply of shops 

• Mishmash of high-end and budget products sitting 

alongside each other pulls down status of the village 

Misaligned Activities Lack of Governance 

• Accommodation price cutting to the detriment of all 

providers and possibly the whole sector 

• Lack of funding for promoting Port Douglas as a 

destination to drive up visitor volumes 

• Commercial tourist information centers (rather than one 

independent centre) lead to commission structures adding 

little value for tourists 

• Little bundling or packaging of holidays to attract longer 

stays, different segments and more spending 

Source: MBS Analysis, ABS, interviews 


Occupancy Rate 

54% 

52% 

50% 

48% 

46% 

44% 

42% 

40% 

Occupancy Room* Availability 

2003 2004 2005 2006 2007 2008 2009 2010 2011 

Occupancy Rooms Available 

*Based on accommodation with 15 or more rooms 

2650 

2600 

2550 

2500 

2450 

2400 

2350 

• No overarching, unified vision for Port Douglas to guide 

individual actions and community 

• Development plans and investment either in limbo or 

taking too long to action 

• Effectiveness of supporting groups such as TPDD and the 

Council have been questioned by some operators and 

businesses 

Avg Rooms Available 

124

Tourism Focus Group Interviews 

Feedback shows much room for improvements… 

Retail, dining and entertainment 

• Retail opening hours are not consistent; owners can freely choose to be open or closed on any given day, especially 

during the low seasons – many retailers appear complacent 

• While some are of high-quality, many cafes and restaurants are dull and need redevelopment. 

• There is lacking use of fresh local produce sourced directly from the marina. 

• The incoming major retail chains make the town more commercial and less unique. However the current offerings of 

smaller retail operators need improvements. 

• Little entertainment options for families with children. 

• New award system for weekends/public holidays are pressuring profitability 

Tours and transport 

• High-end tour operators are doing relatively well; they are also more active in marketing 

• Limited number of transport options into and around town is due to not enough tours and visitors to sustain more quantity 

of transport services to operate profitably 

• Only two taxis in town due to the small population size 

• Flights into Cairns plays an important role to boost tourist numbers 

Accommodation 

• Many properties look dated and needs redevelopment 

• No full-service 5-star hotel; service is poor 

• Premium hotels and executive homes appear to be doing better than the rest 

General 

• Tourists aren’t being looked after 

• Assets are not being worked hard enough 

• Investment in staff training required 

• Marketing is not well coordinated and not very effective 


125

Tourism Focus Group Interviews 

… and desire to contribute to the future good of Port Douglas 

Feedback on potential improvement ideas 

• Better promote the low seasons by targeting corporate groups and honeymoon travelers through local businesses working 

together to formulate packages and joint advertising 

• Set up a town visitor information centre where tourists can get guidance around town, gain local knowledge and book tours 

• Provide a discount booklet for tourists to give them incentive to try local cafes and shops 

• Attract Asian tourists by providing guides in multiple languages 

• Promote the destination to Asian markets by cooperating with Asian education providers such as in culinary or language 

programs for a study trip in Port Douglas 

• Sheraton Mirage and Marina Mirage shopping complex need to be rejuvenated – they have been an important assets to the 

town historically and until today 

• Promote bicycle track from Cairns to Port Douglas – there is some potential for Port Douglas to be the training place for 

professional racers 

• Place a regular daily weather update on the Port Douglas website to reduce impact of negative weather news broadcast 

• Four Mile Beach needs more regular and thorough cleaning 

Source: MBS Analysis, ABS, interviews 


126

Major Project: Port Douglas Master Plan 


SOURCE: Special 

Meeting 28 November 

2011 Recommendation - 

Regional Development 

Australia Fund – 2 nd 

Round Grant Application 

127

Major Project: Port Douglas Master Plan 

Why the project was postponed? 

Council 

“At the beginning of 2012 the project was not 

approved for funding at the Regional 

Development Australia Fund, other projects were 

given priority. However this was not because of 

local opposition but rather because state funding 

was not 100% secured at the time of application 

and the projects must be “investment ready”. 

On the contrary, project had significant 

community support (over 75% - Port Douglas 

Master Plan Implementation Consultation Report) 

and this big popularity led RDAF to encourage the 

CRC to reapply the same application in the next 

funding round. The project is not lost and in fact 

can get the funding soon. 

Chamber of Commerce is lobbying for the project 

and announced community wide support. 

SOURCE: Newsport.com.au; Citizen Interviews 


Community 

The project went back to the consultation stage. Which 

may indicate that redesign of the lagoon is taking 

place. Gary Hunt’s article on 27 th of April 2011 on 

newsport.com.au criticizing the Waterfront 

Development received overwhelming support from the 

readers(55 voices against the development in the 

proposed form, one voice pro development). 

Requires an aligned approach to Port Douglas 

investment initiatives 

128

CRC support for local businesses and new investors 

Some forms of support to business sector 

Fast track decision 

making 


Assistance in 

property search and 

property acquisition 

The Council is not in a position to assist 

struggling individual resort owners or 

retailers(e.g. tax rebates). The Council can only 

support broader community programs that have 

wide circle of beneficiaries. 

SOURCE: Interview feedback 

Financial 

incentives 

Provision of economic 

data and statistics for 

businesses looking to 

expand 

Financial incentives can not be considered in 

the case of investors like Sheraton. Financial 

incentives can be considered only with regard 

to investors who are major employers, add 

diversity to local economy and who consider 

two or more destinations to locate their 

business. In such case the council can step in 

and offer direct financial incentives to win a bid 

for the region. 

129

CRC budget allocated to Port Douglas 

• Proportion of CRC budget spent on Port Douglas and Craiglie is not clear. It is not 

possible to obtain this data from the council 

• Furthermore we have not been given information on what proportion of council’s 

total rates and levies is sourced from Port Douglas. That would give us indication 

on the approximate significance of Port Douglas in the local economy. 

• Not knowing how much money is spent on Port Douglas makes it difficult to 

demand more or demand that the money is spent on different initiatives. 

SOURCE: Interview Feedback 


130

Technology and Innovation 

Technology 

• Improvements in online presence and the provision of free WiFi in 

town centre are the most practical methods to provide economic 

benefit to Port Douglas 

• Port Douglas can drive an additional $3.5 – 17.6 million in value by 

upgrading its online presence and connectivity 

Alternative Energy 

• Port Douglas should not pursue the creation of locally based (within 

50 km of town) renewable/alternative energy projects 

Innovation 

• Port Douglas should not pursue the creation of new locally based 

“innovation centres”. 

© MBS MBA 2012 Student Project – Revitalising Port Douglas

Technology and innovation are major drivers of growth, and open 

many opportunities 

NBN 

Renewable 

Energy 

Innovation 

Centres 

Existing ADSL 


Opportunities Opportunities for Port Douglas 

• Teleconference • Infrastructure upgrade for the MICE 

segment 

• Medical Centre (remote 

imaging) 

• Other • Keep infrastructure up to standard, 

allowing PD to be considered by tech 

firms and professionals 

• Wind farm 

• Hydro electric 

• In conjunction with 

Universities 

• Internet connectivity 

• Free WiFi 

• None 

• None 

• Free WiFi in town centre 

• Improvements to online presence 

132

Improvements in online presence and provision of free WiFi in town 

centre are practical methods to provide economic benefit 

Impact 

[$,exposure] 

High 

Med 

Low 

Prioritising the different initiative that could take Port Douglas 

forward from Technology and Innovation perspective 

10 

Hard to coordinate 

NBN is essential 

8 

Borderline benefit 

Low Med High 


6 

2 

No direct benefit to Port 

7 

1 

9 

5 

4 

3 

Feasibility 

[$,complexity] 

X 

Initiative number 

High Priority Initiative 

1. Innovation committee for Port Douglas 

2. MICE – Meetings, Incentives, Conferences 

and Exhibitions * 

3. Social media marketing – Facebook + QR 

codes 

4. Free Wifi (analytics, survey) 

5. Improve online presence 

6. End to end booking website 

7. Wind farm and innovation centre 

8. Hydro electric 

9. Daintree research centre 

10. Remote imaging (medical)* 

* Denotes a fast internet pre-requisite (NBN) 

133

Port Douglas can drive an additional $3.5 – 17.6 million in value by 

upgrading its online presence and connectivity 

• PDDT website lags behind private sites even though it 

offers a richer experience and more comprehensive 

content. 

• With a number of modifications to websites more visitors 

could be attracted, delivering an additional $3.5 – $17.6 

million annually. 

• Installing free WiFi will provide both financial and non 

financial benefits at an initial investment of $100k and 

annual running cost of $19k. 


134

PDDT website lags behind private sites even though it offers a richer 

experience and more comprehensive content 

Google 

Rank* 

Time spent in 

typical visit 

* For “Port Douglas” term search conducted on 16/March/2012 

SOURCE: ALEXA, Accessed 16/March/2012 


Top queries driving traffic from 

search engine (% of site’s traffic) 

Ownership Traffic rank & number 

of sites linking in 

www.portdouglas.com – Relatively low traffic rank though ranked #1 in Google; least time spent by visitors 

3:05 

min 

port douglas (27%), 

port douglas holidays (21%), 

port douglas accommodation (12%) 

www.tourismportdouglas.com.au – Top traffic rank; most time spent per visit yet unprofessional appearance 

3:56 

min 

port douglas (7%) 

solar eclipse 2012 (4.5%) 

port douglas solar eclipse (1.8%) 

www.portdouglas.com.au – Very low traffic rank, focuses mainly on accommodation 

N.A 

port douglas (73%), 

port douglas accommodation (16%) 

www.pddt.com.au - Low traffic rank, with relatively many sites linking in; much time spent per visit 

3:39 

min 

port douglas (44%) 

port douglas australia (15.5%) 

port douglas tourism (4%) 

64 

1,939,600 

462,005 

25 

8,559,632 

145 

274 

2,724,022 

(the higher the better) (the lower the better) 

135

With a number of modifications to websites more visitors could be 

attracted, delivering an additional $3.5 – $17.6 million annually 

Modifications to PDDT and private websites 

will increase visitor traffic and conversion** 

Modifications (PDDT): 

• Introduce the latest Search Engine 

Optimisations 

• Make PDDT interface more intuitive (have 

menu bars / search option only at the top) 

Modifications (Private Websites): 

• Provide private websites with consistent 

message and information about Port Douglas. 

• Support other means of online information for 

visitors (mobile applications, social media 

pages, etc.) 

Anticipated Impact: 

• Improved websites are better able to engage 

visitors attention potentially leading to an 

increase in the conversion rate** of 0.1% to 

0.5%. 

• Increased ease of finding full information 

about Port could be translated to more traffic. 

SOURCES: Tourism Research Australia, IVS Core, (2009-10, 2011 figures for P.D); Team analysis 

McKinsey Quarterly 2001 (E-performance: The path to rational exuberance) 


Millions 

$3.5m-17.6m of value is expected from 

additional visitors each year* 

$20 

$18 

$16 

$14 

$12 

$10 

$8 

$6 

$4 

$2 

$- 

$12.4 

$2.5 

Additional 

Revenue 

(Domestic) 

$5.2 

$1.0 

Additional 

Revenue 

(International) 

$17.6 

$3.5 

Total Addtional 

Revenues 

*Calculated based on an average of 5.05/5.11 nights per visit (domestic /international) and an average spend per night of $130/$190 

(domestic/ international) 

**% of traffic translated to booking, typically ranging between 0.4% and 12% 

136

Installing free WiFi will provide both financial and non financial 

benefits ... 

Non financial benefits: 

Allow visitors satisfaction data to be collected 

• Short online questionnaire for visitors who use WiFi. 

• Results can be used as part of market research. 

Provide new targeted communication channels 

• Last minute business promotions (activities, dinning, 

accommodation, etc’). 

• Disseminate information about events, activities, and public 

celebrations. 

Promote Port Douglas through social media usage 

• Encouraging location based social media usage. 

Meet demand from business and leisure visitors 

• Both business and leisure visitors are increasingly 

demanding better connectivity as can be observed from 

visitor surveys. 

Increase online rating and satisfaction 

• Research indicates that free WiFi offered by hotels 

contributes to improved visitor satisfaction as measured by 

online. 


Financial benefits Douglas: 

333,000 visitors to Douglas Region each 

year 

50% own Smartphone = 166,500 visitors 

Approximately 100% will use the free 

WiFi = 166,500 visitors 

Assuming that only 15% of the visitors will 

spend, on average, an additional $10 leads to 

an increase of about $250K in economic 

activity each year. 

SOURCES: Google smartphone research, PDDT Visitor Surveys Q1-2 2011, Team analysis, “Improving hotel ratings by offering free Wi-Fi”; 

University of Las Palmas de Gran Canaria, Las Palmas, Spain 

137

... at an initial investment of $100k and annual running cost of $19k 

Initial investment of $100k is required 

based on a similar project done in 

Brisbane 

Brisbane’s ‘WiFi in parks’ 

Initiative is expected to include 20 

additional parks at a cost of $2m. 

With an average park area of about 

the same as Macrossan street, the cost 

of installing WiFi equipment should be 

around $100k. 

* Subjected to Acceptable Usage Policy 

SOURCES: Brisbane City Council website, Telstra website, Team analysis 


Annual internet connectivity cost would 

range between $3,720 to $18,600 

It will require about 5 Telstra connections, 

each of which support some of the free WiFi 

around the town centre*. 

Telstra Connectivity Cost 


[1 Month] 


[1 Year] 

5 x unlimited internet 

connections [1 Year] 

$310 

$3720 

$18600 

138

ADSL and ADSL2 services are available in Port Douglas 


SOURCE: 

www.adsl2exchanges.com.au 

139

Traffic data (from Alexa) for the top 4 results (websites) in Google for 

the search term “Port Douglas” 

Website Google 

search rank 

portdouglas.com 

tourismportdouglas.com.au 


Alexa traffic data Traffic Rank 

1 Portdouglas.com is ranked #1,995,707 in the world according 

to the three-month Alexa traffic rankings. The time spent in a 

typical visit to it is approximately three minutes, with 64 

seconds spent on each pageview. About 43% of visits to the 

site are referred by search engines. Portdouglas.com has been 

online for more than fifteen years. The site is based in 

Australia. 

2 Tourismportdouglas.com.au has a three-month global Alexa 

traffic rank of 507,256. The site's content places it in the “Travel 

and Tourism” category of websites. It is relatively popular 

among users in the city of Brisbane (where it is ranked #867). 

Approximately 36% of visits to Tourismportdouglas.com.au are 

bounces (one pageview only). This site has attained a traffic 

rank of 4,417 among users in Australia, where we estimate that 

81% of its audience is located. 

portdouglas.com.au/ 3 Portdouglas.com.au's three-month global Alexa traffic rank is 

8,528,140. This site can be found in the “Travel and Tourism” 

category. 

pddt.com.au 4 There are 2,752,010 sites with a better three-month global 

Alexa traffic rank than Pddt.com.au. The time spent in a typical 

visit to the site is roughly four minutes, with 89 seconds spent 

on each pageview, and visitors to this site view an average of 

2.6 unique pages per day. It has a bounce rate of roughly 36% 

(i.e., 36% of visits consist of only one pageview), and 

Pddt.com.au is located in Australia 

1,939,600 with 

58 sites linking 

in 

462,005 with 


in 

Ranked 3,414 in 

Australia 

8,559,632 with 


in 

2,724,022 with 


in 

140

Port Douglas related queries have high impact for pddt.com.au, yes 

tourismportdouglas.com.au is also a strong competitor 

Impact 

Search Query pddt.com.au tourismportdouglas.com.au portdouglas.com portdouglas.com.au 

port douglas High High High High 

port douglas tourism High High 

port douglas australia High Medium 

media travel Medium 

port douglas accommodation Low Medium High High 

cairns rift Low Low 

daintree rainforest Low 

port douglas holidays High Low 

port douglas luxury accommodation Low 

port douglas resorts Low 

port douglas weather Low 

port douglas apartments Low 

port douglas attractions Medium 

solar eclipse 2012 Medium 

port douglas flights Medium 

SOURCE: ALEXA, statistics from 10/March/2012 


141

Additional revenues from increase conversion rate (0.1% to 0.5%) 

ranges between $3.5m and $17.6m 

Domestic International Total 

% booking online 27% 42% 31% 

Total visitors to Douglas 240,000 93,000 333,000 

Visitors who booked online 64,800 39,060 103,860 

AVG website traffic (2.5% conversion) 2,592,000 1,562,400 4,154,400 

Additional Bookings (0.1% increase) 2,592 1,562 4,154 

Additional Bookings (0.5% increase) 12,960 7,812 20,772 

Additional revenues (0.1% increase) $12,435,120 $5,189,511 $17,624,631 

Additional revenues (0.5% increase) $2,487,024 $1,037,902 $3,524,926 

Average Nights (2011) 

• Domestic: 5.05 

• International: 5.11 


Additional Visitors (est.) 

Average Spent Per Night 

• Domestic: $190 

• International: $130 

• Domestic: 2,600 – 13,000 

• International: 1,500 – 7,800 

142

42% of international visitors and 27% of domestic visitors used the 

internet to get information before planning their trip 

Sources: TRA, Internet Snapshot 2011 


143

Free WiFi could provide non financial benefits to Port Douglas 

Leisure visitors demand free WiFi (1) 

“I’ve got an iPhone with WI-FI built in. In 

many other of cities in Australia you can get 

free WI-FI at coffee shops, etc but not here in 

PD. I think there is a future for those who can 

give you free WI-FI.” Q1/2011 

“Need more free WiFi.” Q2/2011 

“Free wifi are few and far between.” Q2/2011 

Total qualitative responses: 44 

SOURCES:: 1. Port Douglas and Daintree Visitor Survey, Q1-2 2011, 

2. Improving hotel ratings by offering free Wi-Fi; University of Las Palmas de Gran Canaria, Las Palmas, Spain 


A Study shows rating increase following a 

free WiFi introduction (2) 

• A study from the University of Las Palmas 

shows that online rating improvements 

occurred for hotels that started offering free 

WiFi. 

• Similarly, the satisfaction of visitors to Port 

Douglas who would be using the free WiFi 

would improve significantly. 

144

Google research shows 50% of adults use smart phones in Australia, 

searching for local information a common activity 


145

Port Douglas should not pursue the creation of locally based 

renewable/alternative energy projects 

There are several reasons why alternative 

energy projects are not feasible: 

• Existing and proposed alternative energy 

projects are sufficient to support energy 

demand in the Cairns and FNQ region. 

• Transmission fault risks are substantially 

reduced given the proposed renewable 

projects are located much closer to Port 

Douglas than traditional coal sources. 

• Port Douglas is not an ideal location for 

wind, solar or hydroelectric energy projects. 

Source: Cairns and Far North Environment Centre (CAFNEC) (2011) Renewable Energy for Far North Queensland: A Discussion Paper, May 2011 (Ed. Sophie Allen), Cairns, (13pp). 


146

Existing and proposed alternative energy projects are sufficient to 

support energy demand in the Cairns and FNQ region 

600MW 

400MW 

200MW 

Current Energy 

Demand 

for FNQ 

FNQ Power 

Supplies from 

Renewables 

(~180MW) 

FNQ Power 

Supplies from 

Coal 

(180MW) 


Proposed Energy 

for FNQ by 2015 1 

Excess Production 

FNQ Power 

Supplies from 

Renewables 

(~480MW) 

Proposed Energy 

for FNQ by 2020 1 

Excess Production 

FNQ Power 

Supplies from 

Renewables 

(~650MW) 

Projected Peak 

Demand 2 

Sources: 1. Cairns 

and Far North 

Environment Centre 

(CAFNEC) (2011) 

Renewable Energy 

for Far North 

Queensland: A 

Discussion Paper, 

May 2011 (Ed. 

Sophie Allen), 

Cairns, (13pp). 

2. QLD Comp. Auth. 

Electricity Demand 

Forecast - Demand 

Forecast for 2001 to 

2011 

147

Transmission fault risks are reduced given the proposed renewable 

projects are much closer to Port Douglas than traditional coal sources 

The proposed wind farm 

at Windy Hill is located on 

the Atherton tablelands 

and is approximately ¼ 

the distance from the 

current coal based energy 

source in Townsville. 

Source: Australian National Electricity Market: NEM Power Stations and Generation Sources 


Hydro 

Wind farm 

Coal 

148

Port Douglas is not an ideal location for wind, solar or hydroelectric 

energy projects. 

• Port Douglas is at the northern tip 

of existing power network. Power 

would need to be transferred 

further (Map A). Grid is in green. 

• Inappropriateness for Wind 

• Port Douglas is close to 

Cyclone risk region (Map B). 

Risk relative to shading. 

• Average wind speed at 70 

Metres is not high enough in 

Port Douglas (Map 3a and b) 

• Inappropriateness for Solar 

• Port Douglas does not have 

consistent annual solar supply. 

Map 4. 

Source: https://webgis.dme.qld.gov.au/webgis/webqmin/viewer.htm 


1 2 

3a 3b 

4 

149

Port Douglas should not pursue the creation of new locally based 

“innovation centres”. 

There are several reasons why innovation 

centres are not feasible: 

• Port Douglas does not have many of the 

key components of a successful innovation 

centre 

• Access to funding will be difficult given 

existing government commitments in the 

region 

• Innovation hubs and centres are long-term 

(20+) year projects and outside the scope of 

Port Douglas’s control. 


150

Port Douglas does not possess many elements of the 

innovation ecosystem 

• Innovation centres require a developed innovation ecosystem that can support 

entrepreneurs 

• Port Douglas does not have access to many of these key components and is therefore 

missing a location based competitive advantage 

Source: 21 st Century Innovation Centres. Prayag Consulting 


Source: Porter. Location, Competition, and Economic Development: 

Local Clusters in a Global Economy 

151

Access to finance difficult given the number of existing government 

commitments to innovation, science and technology in the region 

Universities, Innovation Clusters and Research Centres in TNQ 

Universities in QLD 1 

• Australian Catholic University (3500+ students) 

• Bond University (6900 students) 

• Central Queensland University (19,500 students) 

• Griffith University (42,600 students) 

• James Cook University (18,800 students) 

• Queensland University of Technology (41,900 students) 

• University of Queensland (43,800 students) 

• University of Southern Queensland (25,500) 

• University of the Sunshine Coast (8,900 students). 

GBR Reef/Rainforest based Innovation Centre’s 

•Australian Tropical Forest Institute 

•Australian Tropical Herbarium 

•Reef and Rainforest Research Centre 

•Great Barrier Reef Marine Park Authority 


Alternative energy 

• Mount Emerald Wind Farm and Asia Pacific 

Energy Information Centre (opens in 2013/14) 

Tropical Expertise 

•The Cairns Institute 

•Australian Institute for Tropical Medicine 

•Queensland Tropical Health Consortium 

•The Australian Stinger Research Unit 

•Wet Tropics Management Authority 

•CSIRO – Atherton Tablelands 

•Centre for Tropical Agri-Tech Research 

•Australian Tropical Research Foundation 

Note: 

1. List is an indication only and is by no means a complete representation of all such centres in the region. 

2. Many of the individual research/innovation centre’s are affiliated through one of the Universities and funding is generally 

administered and reported through these (See next slide for total government contributions in 2011). 

Source: 1 Student numbers obtained from http://education.qld.gov.au/students/higher-education/qld/uni/facts.html 

152

Government Funding to Tertiary Institutions in QLD currently exceeds 

$2.2 Billion 

University Federal ($M) State ($M) Other ($M) 

• Central Queensland University 99 NR NR 

• Griffith University 410 13.3 NR 

• James Cook University 184 1.8 26 

• Queensland University of Technology 427 9.5 NR 

• University of Queensland 793 59 NR 

• University of Southern Queensland 149 1.9 NR 

• University of the Sunshine Coast 96 2.4 NR 

• TOTAL 2148 87.9 26 

Notes: 

1. Figures have been taken from 2010 annual reports for each institution. 

2. Amounts include federal government HECS/HELP contributions, 

3. ACU has been excluded as government contributions for the QLD campus are not detailed in the Annual report. 

4. Bond University do not provide the government contributions in their annual report. 

5. Other revenue refers to other government funding received. NR- Nothing reported 


153

Economic Development 

• Situation 

• Complication 

• Recommendations 


154

Port Douglas economy is relatively small 

Value added as a measure of the CRC and PDOB 

economy 

Cairns Regional 

Council, 6,713 

SOURCE: Australian Bureau of Statistics, MBS Analysis 


Port Douglas / 

Oak Beach, 380 

PDOB - Tourism, 

305 

(80%*) 

PDOB - Other, 75 

(20%) 

CRC 

PDOB 

155

Size of the sectors in the PDOB economy 

Total value added $(millions) trends in 2006 -2011 







Retail Trade 

Construction 

Manufacturing 



Mining 









0 10 20 30 40 50 60 70 

2011 Total VA est. $380M 

2006 Total VA est. $320M 

Value Added = 

Employment X 

Productivity 

SOURCE: NIEIR 2011, Australian Bureau of Statistics, 2006 Census of Population and Housing (Enumerated), MBS Analysis 

156

Employment and Productivity by Sector 

Employment * Productivity by sector 2011 

Accommodation and Food… 

Administrative and… 

Agriculture, Forestry and… 

Arts and Recreation… 

Construction 


Electricity, Gas, Water… 

Financial and Insurance… 

Health Care and Social… 

Information Media and… 

Manufacturing 

Mining 


Professional, Scientific… 

Public Administration and… 

Rental, Hiring and Real… 

Retail Trade 

Transport, Postal and… 


Employment 

0 500 1000 1500 



X 

Accommodation and Food… 

Administrative and Support… 



Construction 


Electricity, Gas, Water and… 

Financial and Insurance… 

Health Care and Social… 

Information Media and… 

Manufacturing 

Mining 


Professional, Scientific and… 


Rental, Hiring and Real Estate… 

Retail Trade 

Transport, Postal and… 


Productivity 

0 200 400 600 

Thousands 

157

Change in the PDOB economy 2011 

Estimated Change in Value Added in 2006 – 2011 by sector $(millions) 








Mining 

Retail Trade 


Manufacturing 








Construction 


-10 -5 0 5 10 15 20 


158

Change in the PDOB economy 

Estimated change in employment in 2006 – 2011 by sector 





Retail Trade 





Mining 


Manufacturing 








Construction 

-200 -100 0 100 200 300 400 


159

Most productive industries 

Highest value adding ≠ Sustainable 

industry 

Top 5 industries Port Douglas - value added $ per job 

450,000 

400,000 

350,000 

300,000 

250,000 

200,000 

150,000 

100,000 

50,000 

0 

411,628 

256,122 

Mining Financial and 

Insurance Services 

SOURCE: National Institute of Economic and Industry Research (NIEIR) 


152,042 

Electricity, Gas, 

Water and Waste 

Services 

143,148 136,812 

Transport, Postal 

and Warehousing 


160

Least productive industries 

Lowest value added = Port Douglas focus at the 

moment 

Bottom 5 industries Port Douglas - value added $ per job 

60,000 

50,000 

40,000 

30,000 

20,000 

10,000 

0 

49,276 48,443 

Education and 

Training 

SOURCE: National Institute of Economic and Industry Research (NIEIR) 


47,159 

Other Services Accommodation 

and Food Services 

40,051 

38,240 

Retail Trade Arts and Recreation 

Services 

161

Model Methodology and Assumptions 

1. Estimates are for Port Douglas and Oak Beach district as defined on 

http://economy.id.com.au website 

2. Employment change in 2006 – 2011 in CRC by sector reflects employment 

change in PDOB by sector 

3. Productivity in Port Douglas by sector is the same as productivity in CRC in 

respective sector 

4. Employment data as estimated by NIEIR – not equivalent to fulltime employment 


162

Methodology for value added (VA) calculations for PDOB 

CRC 2006 on 

employment and VA by 

sector 

PDOB 2006 on 

employment by sector 

x multiplier 2006 

VA by employee 

in sector – 

“multiplier 2006” 

Given Calculated 


2006 2011 

VA by 

sector – for 

PDOB 2006 

x EGR 

CRC 2011 on 

employment and VA by 

sector 

Employment 

by sector 

PDOB 2011 

Employment 

growth rate by 

sector(EGR) 

2006 - 2011 

x multiplier 2011 

VA by employee 

in sector – 

“multiplier 2011” 

VA by 

sector – for 

PDOB 2011 

CRC 

PDOB 

163 

163

Currency fluctuations impacting the economy? 

Currency exchange rate impact on the economy 

14% 

12% 

10% 

8% 

6% 

4% 

2% 

0% 

-2% 

-4% 

CRC GRP growth rate & appreciation of AUD$ 

2006 2007 2008 2009 2010 2011 

1 GRP trend modelled against movement in foreign exchange 

SOURCE: Oanda.com, NIEIR 2011 


1.200 

1.000 

0.800 

0.600 

0.400 

0.200 

0.000 

Given the importance of 

domestic tourist for Port, rising 

AUD$ is not main growth barrier 

GRP CRC 

Average AUD/USD 

No clear evidence of negative 

impact on economy from rising 

AUD$ 

100% 

80% 

60% 

40% 

20% 

0% 

Estimated tourist spending Port 

Douglas 2011 

international domestic 

Domestic tourists dominate 

Port Douglas visitations and 

spend on average 40% more 

than international tourists 

164

Tourism numbers affected by the economy 

5.00% 

4.00% 

3.00% 

2.00% 

1.00% 

0.00% 

1.200 

1.000 

0.800 

0.600 

0.400 

0.200 

0.000 

Correlation between domestic tourists visits and state of Australian economy 

Australian real GDP growth 

2006 2007 2008 2009 2010 2011 

Currency appreciation AUD/US 

2006 2007 2008 2009 2010 2011 


300,000 

250,000 

200,000 

150,000 

100,000 

50,000 

0 

Tourist visits to Port Douglas (number) 

FY05 FY06 FY07 FY08 FY09 FY10 FY11 

International tourists visits show negative correlation with appreciating AUD$ 

SOURCE: Oanda.com, NIEIR 2011 

International 

Domestic 

165

Focus group outcomes 

Agriculture 

Fishing 

Sugar cane 

Cocoa 

Fresh 

produce 

(tropical fruits) 

Conference 

Centres 

SOURCE: Focus Group Discussion, MBS Analysis 


Existing 

Retail Retirement 

Economic 

sectors to 

focus on 

Spa / 

Wellness 

New / 

Potential 

FIFO 

Film 

Production 

Renewables 

Education 

Technology 

Hub 

166

Situation summary 

Size** 

Growth 

Diversity 


• The economy of Port Douglas is estimated to be $380 

million, underpinned by tourism-related activities 

which is approximately 80% of the economy 

• Material growth in Port Douglas has to come from 

tourism but significant investment is required 

• It is in Port Douglas’ interest to support other regional 

industries to ensure diversity 

SOURCE: ** MBS, Analysis from data obtained from ABS, Census of Population and Housing, 2006, Basic Community Profile - B42 

167

Contents 

• Situation 




168

Growing the economy requires significant investment 

SOURCE: MBS Analysis 

Tourism 

Targeted 

marketing 

and 

investment 

in tourism 

infrastructure 


Supporting 

industries 

Short term 

execution 

Long term 

investment 

Investment 

profile 

Public sector 

Private 

sector 

169

45% of Value Added in Douglas Shire depends on Tourism 

Value Added Sector 


Employment 

percentage* 

Tourism 

Dependence 

(estimated)** 

Non-Tourism 

depenent 

Agriculture, Forestry and Fishing 4.6% 15% 85% 

Mining 0.5% 0% 100% 

Manufacturing 4.3% 0% 100% 

Electricity, Gas, Water and Waste Services 0.6% 55% 45% 

Construction 8.9% 25% 75% 

Wholesale Trade 1.5% 50% 50% 

Retail Trade 10.8% 70% 30% 

Accommodation and Food Services 25.1% 80% 20% 

Transport, Postal and Warehousing 8.1% 50% 50% 

Information Media and Telecommunication 0.7% 20% 80% 

Financial and Insurance Services 2.1% 0% 100% 

Rental, Hiring and Real Estate Services 2.9% 60% 40% 

Professional, Scientific and Technical Services 2.8% 0% 100% 

Administrative and Support Services 5.0% 75% 25% 

Public Administartion and Safety 3.5% 40% 60% 

Education & Training 4.6% 0% 100% 

Health Care and Social Assistance 5.5% 15% 85% 

Arts and Recreations Services 1.9% 50% 50% 

Other Services 2.9% 0% 100% 

TOTAL 44.5% 55.5% 

*Source: Australian Bureau of Statistics, Census of Population and Housing, 2006, Basic Community Profile - B42 

** Estimated from local data 

Employment Numbers 

dependent on tourism in 

Douglas Shire 

55.5% 

44.5% 

Tourism 

170

87% of Employment in PDOB is dependent on Tourism 

70 

% 

SOURCE: * Australian Bureau of Statistics 2011, MBS Analysis 


Estimated 70% of Tourism in 

Douglas Shire is centered 

around Port Douglas – Craiglie 

Area 


and Craiglie 

Other 

Location of Tourism Activities in Douglas Shire (a) 70% 30% 

Total Population by Location (b) 35.7%* 64.3% 

Tourism Employees by Location (c) 31.1% 68.9% 

% Employment of PD dependent on Tourism (d) 87% 13% 

c = a * 44.5% (previous slide) 

d = c / b 

171

Regional non-tourism related industries 

Maturing 

• Meetings, 

Incentives, 

Conventions 

and 

Exhibitions 

• Sugar 

• Fishing 


Growing 

• Retirees’ 

Hub 

• Arts and 

Recreation 

Services 

• Professional 

and Technical 

Services 

.1 .2 .3 

.4 

SOURCE: Focus Group Discussion, MBS Analysis 

Emerging 

• Fly In – Fly 

Out 

• Healthcare 

and Social 

Services 

172

The Port Douglas share of the MICE market is significant 

Existing 

economic 

sector 

Contributes 

$15 - $20 

million to 

economy 

Fast 

growing 

market 

but… 

SOURCE: Tourism Queensland; Business Events Cairns; Tourism Action Plan to 2012 (Queensland Government), MBS Analysis 


• Port Douglas hosted 120 - 

130 business events out 

of total 480 events in TNQ 

in 2011 

• Business meetings 60% 

• Incentives 40% 

• 25% market share 

• MICE market forecasted 

to grow at 10% CAGR 

• Risk of eroding current 

market share unless 

existing facilities are 

upgraded to be 

comparable to 

competitors 

Assumption: 1% decline in market share per annum to 20% by 

2017 

$m 

25 

20 

15 

10 

Australia 

$8.5b 

Queensland 

$1.2b 

Cairns Region 

$60 - $80m 


$15- $20m 

2009 2010 2011 2012 2013 2014 2015 2016 2017 

.1

MICE is value adding 

750 

600 

450 

300 

150 

0 

Business Delegates 

spend more 

Business delegates spend considerably more per 

night than other visitors to Queensland 

102 

International Holiday 

Visitors 

181 

Domestic Holiday 

Visitors 

Source: 2020 Tourism Industry Potential – the Business Event Sector (Business Events Australia); A National Business Events 

Strategy for Australia 2020 (Business Event Council of Australia); Tourism Action Plan to 2012 (Queensland Government); State of 

the Business Events Industry 2010 (Business Event Council of Australia) 


606 

Business Tourism 

Delegates 

• Business delegates spend on average 

three to five times more than leisure 

tourist 

100% 

80% 

60% 

40% 

20% 

0% 

Is less exposed to a 

rising $A currency 

80% of the Cairns MICE market are domestic customers 

2009 2010 2011 

State National International 

• A rising $A will not impact the 

purchasing power of State and National 

(ie. interstate) delegates 

.1

Conventions and Exhibition market segments not being serviced 

Segment Description Primary Needs % of 

AU 

Spend 

Meetings Off-site gatherings of more than 15 

persons with a common purpose. 

Two primary sub-segments 

comprising corporate and 

associations 

Incentives Commonly associated with 

corporate events, attended by ‘high 

achievers' to recognise and further 

motivate their performance 

Conventions Also referred to as conferences, 

conventions are a large assembly 

of participants, often several 

thousand, with many international 

visitors. Most conventions will have 

some form of exhibition attached. 

Exhibitions Exhibition events are the gathering 

of suppliers to display their product 

and services for trade and public 

exhibition purposes (Deery et al, 

2005, p 59). 

Source: Business Events Council of Australia, MBS Analysis 


Suitable 

accommodation 

and meeting 

spaces 

Unique activities 

and attractions 

plus team-building 

events 

High capacity 

conference venues 

& 

large quantities of 

suitable 

accommodation 

Ample floor space 

& 

local population to 

provide necessary 

foot traffic 

60% 

6%* 

27% 

7% 

PD 

Strength 

Cairns 

Strength 

Very Poor 

Poor 

Average 

Good 

.1 

Legend of Strength 

Exceptional 

175

Key success factors to maintaining or increasing MICE market share 

Upgrade Facilities 

• Refurbish existing facilities 

More Service 

Providers 

• Innovate new 

activities 

that leverage natural 

assets 


KEY SUCCESS 

FACTORS 

Improve Supporting 

Infrastructure 

• Telecommunications (NBN) 

• Improve accessibility 

Premier Tropical 

Tourism Destination 

• Clear, independent identity 

• Effective Marketing 

Communication Strategy

Changing demographics show importance of retirees 

Decrease in numbers of 

middle aged persons 

SOURCE: Forecast.id CRC Population and Growth Forecasts 31/03/2011 


Overall population increase 

due to inflow of retirees 

.2 

177

Population shifts in the next 20 years 

Expected increase of over 820 people to 5,158 by 2021 

At an average annual growth rate of 1.17% per annum over 15 years (from 2006) 

Forecast.id CRC Population and Growth Forecasts 31/03/2011 


.2 

178

Household type an indicator of population split 

Couples without dependants will be largest population shift 

and likely to be in the 55+ age group 

Forecast.id CRC Population and Growth Forecasts 31/03/2011 


.2 

179

Retirees’ contribution to the economy 

$30k 

spend 

per 

couple 1 

Accommodating 

new retirees 

1 Extrapolated from date obtained from superannuation website 

2 Assumed that PD could attract 0.02% of couples from VIC and NSW (totalling 2.4m people aged 55+) 

3 Search query for available homes in Port Douglas via realestate.com.au 


240+ 

additional 

couples 2 

$7.2m 

injection 

into 

economy 

• 300+ private dwellings on 

market3 No further infrastructure investment 

• 

required in the short-term 

.2 

180

Catching up to competitors 

Need Port Douglas Noosa 1 Whitsundays 2 

Access to medical 

facilities ✔ ✔✔ ✔ 

Emergency services ✔ ✔ ✔ 

Retiree estates / Stand 

alone houses ✔ ✔✔ ✔✔ 

Social interaction ✔ ✔ - 

Access to funds ✔ ✔ ✔ 

Transportation ✔ ✔ ✔ 

Climate ✔✔ ✔ ✔✔ 

Critical factors such as Access to medical facilities and Transportation are 

deficient in comparison to Noosa and Whitsundays => investment may 

be required to increase attractiveness of Port Douglas 

1 Data obtained from Sunshine Coast Council website 

2 Data obtained from Whitsunday Regional Council website 


.2 

181

Emergence of FIFO in the economy 

Estimated Change in Value Added in 2006 – 2011 in mining $(millions) 

2006 

~$7.9m 


2011 

~$12m 

• Over 90% increase in mining jobs over the last 5 years 

• Each job adds approximately $412k to the economy 

.3 

182

Commercial Fishing Industry 

Hypothesis: 

Fishing is an 

attractive 

industry to be 

in for Port 


Strengths 

Proximity to fishing resource 

Opportunities 

Fishing adds twice as much 

value, on per capita basis than 

tourism related industries in PD 

Capacity available at port for 

additional fishing boats 




Fisheries 

Weakness/Barriers 

Fish density level shift frequently 

Fishing quota utilization low 

GBR restrictions 

Involvement of Middleman 

Slightly remote from markets 

Commodity business 

Significant capital investment 

Threats 

High Dollar reduced exports 

International competition 

Cyclones 

Risk of change in regulations 

.4 

Conclusion: 

Considering 

the high degree 

of risks and 

disadvantages, 

focusing on 

Fishing does 

not seem to be 

a feasible 

option. 

However we 

recommend 

that some 

effort should 

be put to 

support the 

existing fishing 

businesses in 

Port Douglas


Quota Utilization is low for most of 

the species and has decreased from 

2003 onwards. Possible causes: 

• GBR fishing restrictions introduced 

in 2004 

• Impact of cyclones 

• High Australian dollar impacting 

exports 

• Competition from foreign markets 


100% 

90% 

80% 

70% 

60% 

50% 

40% 

30% 

20% 

10% 

0% 

Figure: 1 Year 2011-12 Quota Utilization 

.4 

Quota Remaining 

Projected Usage 

Usage to Date


PD close to 

dense fishing 

resource 

But resource 

patterns shift 

over the years 


.4

Commercial Fishing Industry (Value Chain) 

Catch 

• Easy Access to 

some key 

species from PD 

Transport 


• PD located 

slightly far from 

key markets and 

export hub 

Middleman 

Process 

• Processing 

Unit in Cairns 

Export 

.4 

• Cairns Airport 

to China

Commercial Fishing Industry: recommendation 

A task force should be setup under the PD CoC for commercial fishing industry. 

The purpose of the force would be to: 

• Improve collaboration amongst key stake holders 

• Devise methods to achieve economies of scale in transportation and 

exporting by pooling resources together 

• Conduct a feasibility study for setting up a processing unit at Port 


Sources: 

Interviews: 

Steve Stonier, Fisherman, Island Point Marine 

Robin Hanson, Industry Development General Manager, Queensland Fisheries 

Websites/Reports: 

Queensland Primary industry and Fisheries http://www.dpi.qld.gov.au 

Australia Department of Agriculture, Forestry and Fisheries 

http://www.daff.gov.au 

Annual status report 2010 Coral Reef Fin Fish Fishery 


.4 

187

Other sectors: Filming 

• Most of the interesting locations of the Cairns area are located within or close 

to Port Douglas. 

• Port Douglas is the only place to offer decent accommodation for the filming 

crews. 

• Challenge is to house trained personnel as filming crews want to find local 

people as temporary workers to assist on shoots. 

• Shoots are not likely to happen frequently enough in Port Douglas to provide 

a means of permanent employment for workers. 

Tropical 

Creek 

Sugar 

Wharf 

SOURCE: http://www.cairns.qld.gov.au/invest/business-industry/film/location 


Beach & Sunday 

market stalls 

Dickson Inlet 

188

Other sectors: Education (Marine Research Institute) 

Needs 

affiliation 

with a 

university 

Marine 

Biology 

Institute 

JCU already has 

two campuses 

offering Marine 

Biology courses. 


• JCU is the only university in Far 

North Queensland area. 

• There is neither an incentive nor 

market for JCU to open another 

marine biology centre in PD 

• No other university may want to 

compete in a limited market.

Public funding 

There are 3 channels through which public money can flow into Port Douglas 

Baseline: Capital 

Works and Services 

Road upgrades 

CCTV 

Street Lighting 

Waste Removal 

Esplanade Upgrade - $0.6M 

SOURCE: CRC Annual 

Report 2010/2011, 

Informational interviews 

Identification of 

particular need 


Catalytic: Major 

Projects 

Port Douglas Master Plan 

Implementation -$60M 

Community 

engagement 

Different Funds and 

Programs 

Impact on local 

economy 

Diversification Fund 

Tourism Fund – TPDD 

received $50K in 2011 

190

Contents 

• Situation 




191


• Create a single group to ‘market’ the Port to government and private 

investors. 

• This group needs to have the autonomy to make decisions that 

benefit Port Douglas—even if there is not unanimous approval of the 

investment. Discussion at ‘town hall’ meetings is encouraged but a 

unified front must be shown to investors. 

• Sell a consistent, accurate brand to potential investors. Reduce 

confusion about existing brand. 

• Create an environment that welcomes investment with open arms. 

This message needs to be disseminated throughout the entire 

community. 

• Create hope amongst the residents. 


192

Full Report - Port Douglas Chamber of Commerce

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