Unlocking the value of nature based tourism in Western Australia

Yet by and large the economic and social value of the state’s natural assets for tourism is not being realised. Road access to many sites is poor, public amenities are often basic and there is little in the way of high quality accommodation to attract the discerning ecotourist or outdoor adventurer. This article puts forward a policy framework to unlock the potential tourism value of these assets.

Tourism is expected to be one of Australia’s next big growth sectors – or the ‘next wave’ after mining – more than doubling its size over the next two decades.^[1] Future demand for ecotourism, or more broadly nature-based tourism, is expected to be particularly strong, primarily due to increasing incomes in emerging Asian markets.^[2] Australia is already experiencing good growth in this segment. In 2012-13, an estimated 3.7 million visitors from overseas came to Australia to participate in nature-based tourism, which represents an 8.2% increase on the previous year.

Not only is demand for nature based tourism growing at a faster rate than other forms of tourism, visitors that come to Australia to experience its natural landscapes typically spend more and stay longer than other types of tourists.^[3]

In addition to the economic benefits of tourism, nature-based tourism can also raise awareness about the importance of conservation, indigenous culture and sustainable management of natural areas. Moreover, visitor fees and other revenue streams from commercial tourism ventures in protected areas can provide an important source of funding for conservation and park management.

But not everyone agrees that benefits of nature-based tourism can outweigh the costs imposed by human impacts. This is where the challenge for government begins.  In this article we outline several principles that we think should form the basis of a policy framework to assist Western Australia to leverage greater value from its natural assets and facilitate the development of a sustainable (financially and environmentally) industry.

The policy framework is based on six principles:

• a regulatory process and culture in government that is open to innovative tourism offerings that meet conservation outcomes in natural areas.
• an approvals process that establishes clear and accountable processes for allowing ecotourism ventures to operate in protected areas.
• adequate security of tenure through long term leases, subject to private operators meeting the terms and conditions of the lease.
• a sound pricing mechanism to allow the state to earn an appropriate return for providing the opportunity to use natural assets for commercial purposes – for example lease payments for use of land, facilities, or management services in State-owned parks.^[4]
• a tender system for evaluating expressions of interest from the private sector to operate ecotourism ventures in protected areas, while ensuring adequate protections to intellectual property.
• a mechanism to promote market-driven selection of sites and tourism offerings, as opposed to the government ‘picking winners’.

Western Australia has already adopted some of these principles. For example, the 2006 Review of Nature-Based Tourism resulted in legislative changes that made provision for longer duration licences for operators. In 2009 the government launched Naturebank. Under this initiative, the government assesses and releases ‘investor-ready’ land in the state’s protected areas for low impact visitor accommodation (safari camps or wilderness lodges). The successful investor is offered a performance-based lease with social and environmental performance conditions. Naturebank has resulted in several ecotourism ventures being established in national parks, however Synergies understands that uptake by the private sector has been less than expected. This may due partly to lack of investment confidence post global financial crisis. Or it could be that the selected sites do not represent a sufficiently strong value proposition.

Instead of assisting with site selection, government may need to focus more attention on reducing red tape, such as protracted planning approval processes, restrictive licensing arrangements, heavy monitoring and compliance burdens and in some cases insufficient certainty for businesses about tenure. The Economic Regulation Authority, in a recent inquiry into microeconomic reform,^[5] found that the tourism sector is subject to a broad range of regulations administered by multiple agencies at local, state, and federal government levels (for example, planning and building regulation, labour supply, taxation, liquor licensing, food hygiene and occupational safety and health). And because nature-based tourism is usually located in protected areas, the regulatory burden is even more acute than for other types of tourism businesses.

New Zealand’s approach, which has adopted a strategy of promoting conservation outcomes through partnerships with business, is a model worth considering. It has done this through improving the policy and management regulations for existing and new businesses, rather than setting land aside or assisting with due diligence for operators.^[6] The New Zealand Department of Conservation leases more than 3,500 concessions on public conservation land to private companies. By comparison, with some notable exceptions, protected areas in Western Australia continue to be largely funded and managed by government.

Rottnest Island off the coast of Perth, for example, could be a showcase for ecologically sustainable accommodation. But tight restrictions on new development have meant that much of the island’s present accommodation consists of out-dated, aging buildings of no historic value and that do not meet even modest eco standards. The lack of privately-funded development has resulted in inadequate reinvestment being made into the island’s infrastructure and conservation assets.^[7]

In another example, the Cape-to-Cape track in the state’s south west is regarded by many to be one of Australia’s finest long distance walk trails owing to the dramatic coastal scenery. Yet only very basic camping facilities exist along the track, which makes it largely unsuitable for all but committed and experienced hikers. In our view, the full potential of this track as an ecotourist attraction is not being realised. Better facilities, such as eco lodges or hikers huts, would cater for a people with a wider range of abilities and preferences – and provide much needed revenue to maintain the track.

If the demand for nature-based tourism continues to grow, as projected, Western Australia should make more use of its natural assets. This will call for a strategic, principled approach along the lines set out in this article. It will require greater use of public-private partnerships as a means of delivering enhanced visitor experiences in natural areas, better quality accommodation and opportunities for increased private investment in conservation.

[1] Deloitte Access Economics (2014) Positioning for Prosperity? Catching the next wave

[2] Government of Western Australia (2013) State Government Strategy for Tourism in WA 2020 – Detailed Strategy

[3] The Tourism and Transport Forum (TTF) reports that overall international tourist numbers increased by 5.1% in 2012-13, while the number of international tourists participating in nature based tourism grew by 8.2%.

[4] Consideration should also be given to instances where it may be more efficient for the private sector to deliver certain management and conservation services in protected areas, instead of government (or in partnership with government). This might require government to make payments to the concessionaire for ‘public good’ outcomes.

[5] Economic Regulation Authority (2014) Inquiry into Microeconomic Reform in Western Australia: Final Report, 30 June 2014

[6] L.E.K Consulting (2011) Tourism Investment and Regulation Review – Final Report, prepared for Australian Government

[7] Rottnest Island Authority (2014) Draft Rottnest Island Management Plan 2014-19, April 2014