DEDG: Business confidence starts with us



Thursday October 24 2013

DEDG: Business confidence starts with us

In this third excerpt from the Douglas Economic Development Group (DEDG), member Gerry Ireland discusses business community interaction with the Douglas Chamber of Commerce and the region's destination marketer, Tourism Port Douglas Daintree (TPDD). 

Read related articles:

  • <link have-your-say-on-douglas-economy.10438.0.html>Have your say on the Douglas economy
  • <link dedg-releases-second-report-extract.10469.0.html>Boost destination marketer funding: DEDG
  • <link tpdd-boss-council-will-drive-growth.10471.0.html>TPDD boss: Council will drive growth

In our past two excerpts, the DEDG highlighted:

  • The region’s dependency upon tourism is upwards of 80 per cent;
  • That the local government funding of our destination marketer, Tourism Port Douglas Daintree:
    • Has not been increased significantly since 2005; and
    • Is woeful and well behind the comparative funding and support by local governments of competitor regions like the Whitsundays, Noosa, Townsville and the Gold Coast.

The region is undergoing a tourism resurgence; a testament to TPDD’s talent and considerable skill, and to the costly private marketing endeavours of our major operators and accommodation providers over the past 18 months.      

However, any business owner or operator will tell you that where the income for your business is capped or remains relatively stagnant for a period of some seven years, there is very little opportunity and even less enthusiasm to grow the business or to inject fresh approaches or roles in to how that business is run. If we as a region are stymied, or do not increase expenditure on TPDD, then we cannot expect the organisation to evolve to take on other operating factors or activities. 

Crucially, we cannot expect TPDD to undertake a strategic planning or economic development role at the expense of existing marketing requirements. Such limited funds also means that we cannot expect TPDD to have a far more robust interaction with the regional tourist organisation, TTNQ or to significantly influence tourist marketing product. If we want TPDD to compete strongly, it needs to be the well-funded participatory partner in the room - not the poor LTO at the end of the table.

Do not think for one moment that Noosa or the Gold Coast are allowing themselves to remain stagnant, or are limiting themselves to the same tried and true functions of the marketing campaigns.  If they evolve and adapt and we do not, then the Douglas Region will suffer.

The focus of TEQ and other regional competitors has been to change the way that those organisations approach tourism destination marketing. The combination of Tourism Queensland with Events reflects that the operation of micro-events is a proven drawcard, both to tourist participation and promotion of the regions. As a consequence, all our regional competitors are overhauling or empowering their destination marketers/managers to embrace a far greater events strategy.

 

The DEDG report identified:

  • Increased micro/major events benefit the region and are viable, strategic ways to promote the off-season and draw international tourists during those months, to supplement the strong domestic peak season.
  • In order to obtain TEQ funding of an event, the organiser needs to  be able to capture and report key data demonstrating the increased economic benefit to the region. The limited resources available to most of the volunteer organisations in the region preclude them from being able to satisfy TEQ requirements.

Promotion and organisation of such events needs to be synchronised. It makes no sense to duplicate resources or skill levels in an already limited population base. Events need to be tailored to be inclusive of a number of business sectors, including operators and retail and service industries, and realistically to be coordinated and promoted by a well-resourced body.

It is not the DEDG’s intention that businesses and residents assume that the answer is to simply throw more money at the problem. Rather, any increase in funding to TPDD or any other business organisation needs to ensure that the organisation(s) can deliver increased or improved output.

 

The DEDG Report also identified:

  • There are some 1400 businesses in the Douglas Region.  Less than 15 per cent of those businesses are TPDD members.  Less than 10 per cent are Chamber members. Of the 10 per cent and the 15 per cent, many are in fact reciprocal members of both organisations.
  • The apathetic participation by the majority of businesses with those organisations massively undermines the authority and wider perception of the role and function of those organizations.

Damningly, there is extremely little participation by the region’s retailers.  No participation by any “chain store” outlets and scant participation by Banks and other national businesses.

Duplicating function or required resources of TPDD and the Chamber of Commerce makes no sense. There needs to be far greater cohesion in the future or an evolution of the organizations into a single organization role. It is the role of the organisations to sell the services they can deliver and improve membership. This requires both organizations to fundamentally rethink how they engage and encourage more participation by all businesses.    

It also requires the organisations to propose taxation structures which can be implemented by Council to collect revenue from all region businesses to then fund the organizations. Membership fees alone will not provide the increased funding required. The organisation(s) must act as the conduits between private business and better business – industry interaction with in the region. It will be their role as much as Council’s to sell the imposition of new tax structures or mechanisms to ensure that all businesses, including chain stores banks etc. play a role in promoting the Douglas region product not just mining the efforts of those businesses who do market.  

Ways to achieve the above and planning for Tourism infrastructure in the future are key questions both for the upcoming Council and TPDD and the Chamber of Commerce.   

The evolution of the TPDD and the Chamber into a single desk organisation makes significant sense in terms of the way we expect those organizations to deliver service, product and communication with the business.

Like the consultation that last occurred at the time of the last real tourism strategy in 1998, there needs to be a commitment by Council, TPDD and the Chamber to being open to suggestions of improved structures and wider engagement with the Douglas residents.

Improving the appeal of the region and business confidence starts and ends with us. It includes business embracing a willingness to evolve the product of their businesses to suit the market, and the way in which their organisations represent and support them.