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Part 1 - Shire of Ashburton

Part 1 - Shire of Ashburton

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<strong>Shire</strong> <strong>of</strong> <strong>Ashburton</strong> Tourism Strategy<br />

January 2011<br />

local operator undertake the service (booking commissions retained by the VC). A regular passenger service<br />

to the National Park would work to alleviate vehicle and parking congestion in the NP, encourage greater<br />

extended stay and expenditure in Tom Price, provide additional income to the VC, and position Tom Price<br />

as the main service town for Karijini. This service could also be utilised by the Department <strong>of</strong> Environment<br />

and Conservation and management <strong>of</strong> the Karijini Eco Retreat.<br />

Recommendation 1: Investigate the opportunity to establish a regular passenger transport service (bus<br />

service not tour) operating during the peak visitor season between Tom Price and the Karijini NP.<br />

Souvenir sales make up the large proportion <strong>of</strong> the Tom Price VC revenue and the <strong>Shire</strong> is to be<br />

congratulated for refocusing commercial activities upon leveraging merchandising opportunities in‐store.<br />

As per 2009/10 <strong>Shire</strong> VC financial reports souvenir sales have averaged around $13,600 per month with<br />

cost <strong>of</strong> goods expenses at $9,850 per month, or an average markup <strong>of</strong> around 38% (assuming opening and<br />

closing stocks levels over the 10 month period are roughly similar). There appears an opportunity to<br />

improve this average markup in line with a budgeted markup around 60%.<br />

Recommendation 2: Management <strong>of</strong> the Tom Price Visitor Centre to focus upon improving gross margins<br />

across all souvenir and merchandising lines with the aim <strong>of</strong> achieving an average sale markup <strong>of</strong> at least<br />

60% on cost <strong>of</strong> goods purchased.<br />

Interestingly, commission revenue from accommodation bookings was negligible for the 12 month period<br />

being less than $100. Typically, visitor centres representing destinations with a large accommodation base<br />

can generate significant revenue commissions by promoting and taking bookings for local accommodation<br />

received from visitor enquiries. Many <strong>of</strong> these VCs now utilise an online booking system called “Bookeasy”.<br />

Visitors can book accommodation and tours online 24 hrs per day or telephone the visitor centres directly<br />

during business hours.<br />

To date, Tom Price has a limited number <strong>of</strong> local accommodation operators and the seasonal tourism<br />

markets must compete with the more consistent mining and associated contractor market sources. This<br />

lack <strong>of</strong> room capacity has hindered the ability <strong>of</strong> the Visitor Centre to perform a more active role as a local<br />

accommodation booking agent.<br />

A larger range <strong>of</strong> local accommodation operators is therefore required and this should be a goal <strong>of</strong><br />

successful long term tourism development. The establishment <strong>of</strong> the Karijini Eco Retreat is a good example<br />

<strong>of</strong> the new investment in additional accommodation required.<br />

The planned “tourism lodge” development within the Tom Price town centre is another project that will be<br />

important. As new accommodation capacity is added to the Tom Price and Karijini destination the Tom<br />

Price Visitor Centre should investigate including an online accommodation booking agency facility such as<br />

“Bookeasy” to their operations.<br />

Recommendation 3: Management <strong>of</strong> the Tom Price Visitor Centre to encourage more investment in local<br />

tourist accommodation capacity and once achieved investigate opportunity to establish an effective<br />

accommodation booking service.<br />

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