This page features essential marketing information for people planning on starting a tourist attraction. Use the bookmarks below to navigate quickly to the section you require, or simply go to tourismexcellence.com.au

The basics
Deciding to start up a tourist attraction
Am I ready to take the next step?
Reaching your decision
Meeting Government requirements
Insuring your business
Accreditation
Seek Advice
Planning for growth

The basics

• Make sure you and your family are ready – this industry has a demanding set of skills that will probably change your lifestyle
• Do your homework and know your local, state and federal requirements
• Ensure that you’re appropriately insured as a tourism business
• Good tourism businesses are always changing and growing; undertake all relevant research
• Be adequately resourced. It will take longer than you think to get things off the ground and to reach break-even, let alone make a profit
• Do you like dealing with people of all different types and personalities? Could you do it every day?
• Approach the business concept strategically; develop a business plan

Tip: Starting up in Tourism Workshop

Tourism Alliance Victoria, Small Business Victoria, Tourism Victoria and the OAMPS Group have combined their expertise and resources to develop an introduction to the tourism industry for new operators. Its intention is to provide a strategic insight across a range of essential business practices and improve overall business acumen and planning. For more information visit www.tourismalliance.com.au

Other valuable resources for business starters are:

• The Victorian Business Line - 13 22 15
• Business Victoria website - www.business.vic.gov.au
• Victorian Business Centres (20 kb)

Deciding to start up a tourist attraction

What is a tourist attrction?

A tourist attraction is a place of interest where tourists visit, typically for its inherent or exhibited cultural value, historical significance, natural or built beauty, or amusement opportunities.

Considerations

Arts & crafts outlets, nurseries, garden centres and most retail establishments are generally not considered to be tourist attractions unless the premises are significantly large and they provide some kind of value-added experience such as having a well known or established artist in residence, or interpretative tours of the premises are conducted.

Wineries must provide wine tastings and cellar door sales. Wineries that are only ‘open by appointment’, are not considered to be a tourist attraction for road signage purposes.

Am I ready to take the next step?

Running a touring business is definitely not a nine-to-five job. How ready are you to take the next step? Ask the following questions:

• Have you thoroughly researched potential tourism markets and the level of competition in the area you plan to set up your business?
• Are you willing to work long hours, as tourism is not a 9 to 5, Monday - Friday industry?
• Have you investigated the local, state and federal licences and registrations that could be relevant to your business? Have you investigated insurance costs?
• Do you have the financial resources to cover start up and living costs, until your business becomes profitable? Could you survive 2-3 years before making a profit?
• Have you written a business plan, complete with a marketing plan and projected budget?

If you answered ‘No’ to any of the questions above, it is recommended that further research is undertaken before commencing your business. Start by completing this form: Step-By-Step: Are you ready to start a business.

What skills do you have, and what skills gaps will you need to fill?
To help you to assess your skill level and training needs click here

Have you researched the market demand and need for your touring business?
To discover free and low cost research opportunities click here

Reaching your decision

The decision to commence a tourist attraction requires careful consideration regarding the type of tour you intend to develop.

• How much will the operation realistically cost to set up and how much money do you have available to invest in the business?
• Could you cover operating costs from other income sources or savings until the business breaks-even (typically 2-3 years)
• Is your location suitable for your proposed business? Will it easily capture passing trade? Will it be eligible for tourist sign-posting?
• What types of customers will be attracted to your attraction? Are they readily accessible? Is there enough of them to sustain your business?
• Where and how will you find your customers?
• Will your attraction represent quality and value for money?
• How will your attraction differ from the attractions already available in the region; in the state?

Meeting Government requirements

Your main local, state and federal Government requirements are as follows.

Applying for a planning permit

To set up a new business, undertake land or building development, or change the purpose of a property, your first step is to apply for a planning permit from your local council. The planning permit provides evidence that the council has given you permission to develop your property.

Make an appointment with a council planning officer who will take you through the application process. You will be advised on the zoning of your land and any other local planning conditions that apply to your development.

Do I also need a building permit?

If your development involves construction, demolition, alteration or extension of a building, you will probably need a building permit. This can be issued by either your local council building surveyor or a privately registered building surveyor.

The building permit gives the surveyor’s permission for building work to go ahead and ensures that building regulations are followed. If you are unsure if you need a building permit, contact either your council building department or a privately registered building surveyor of your choice.

Further licences, registrations and permits

• To register a business or company name: business name registration with Consumer Affairs Victoria, or company name registration with the Australian Securities and Investments Commission.
• To register for tax: Tax File Number, Australian Business Number and GST / PAYG withholding registrations from the Australian Taxation Office.
• To play recorded music: music licences from the Australian Performing Rights Association and Phonographic Performance Company of Australia.

Make the job easy – use ABLIS

The easiest way to identify the range of licences, registrations and permits you will need is to use the Australian Business Licence Information Service (ABLIS).

Go to www.business.vic.gov.au/blis, click ‘Search the Australian Business Licence Information Service (ABLIS)’, choose the report type you want, and search for ‘tours’. ABLIS will create a report of your relevant licences, application forms for those licences and details of the authorities you will need to contact.

Insuring your business

Insuring your business

As well as insuring your premises and assets, the following additional insurances can be critical for touring businesses.

• Public liability of at least $10 million to cover paying customers
• Product liability to cover prepared food or other products offered to guests
• Motor vehicle insurance
• Personal injury and/or income protection, especially if WorkCover is not applicable to your business. Personal injury and income protection are often taken out by sole traders and partnerships.

Learn more about this vital aspect of operating a tourism business

Accreditation

Accreditation is a set of industry standards established by the tourism industry to a model for better business practice and customer service. In other words, accreditation provides business operators with a guide or outline of industry requirements to help them plan, develop, improve and document their business practices and procedures.

Tourism Accreditation Board of Victoria Inc

The Tourism Accreditation Board of Victoria Inc (TABV) administers the accreditation program in Victoria.
TABV contact details: Address: Level 2, 10 Queen Street, Melbourne, VIC 3000
Phone: (03) 9620 4199
Email:
Website: www.tourismaccreditationvic.com.au

Seek Advice

Professional advice sought at this stage can save money and heartache down the track. Accountants, solicitors, business advisors, management consultants and experienced tourism staff can be sourced to provide objective and realistic advice. Don’t let your heart rule your head!

Planning for growth

Once you’re established, you need to plan for growth. Use the following contacts list to plan and develop an outstanding Victorian touring business.

Tourism Victoria’s online tourism excellence modules will also be an invaluable source of information as you proceed down the path to profitability.

View all the Tourism Excellence modules

View module 3 ‘Business Excellence’