Regional Food Cultures & Networks Conference

‘Challenges and Opportunities working in Food & Wine Tourism’

Karen Ronning

Challenges & opportunities of working with:

•Limestone Coast Food Group

•Limestone Coast Food and Wine Group

•South Australian Food and Wine Tourism Group

From a:

•Small Business experience

•Zema Estate experience

•Personal experiences

Top 10 Most Remote Places in the World

New South Wales

Victoria

Limestone Coast

South Australia

Wine and Food Tourism – what is it and why bother?

“Wine and food tourism encompasses travel primarily motivated by, or characterised by, wine and food leisure experiences that derive from specific production, social or cultural dimensions of a destination” Winemakers Federation of Australia (National Wine Tourism Strategy)

• The tourism industry contributes $33 billion a year to AUS GDP

• In 2009, international and domestic overnight winery visitors spent a total of $7.1 billion ($5 billion international visitors / $2 billion domestic visitors)

• 46 cents in every tourism $ is spent outside our major cities

• In 2009 660 000 international visitors went to at least one winery during their stay in Australia (approx 13% of total visitors) and International winery visitors have been increasing at a faster rate than total international visitors (average annual rate of 6% compared to 2%)

•Domestic overnight winery visitors increased at an av rate of 3% since 2000, despite a decline in the total domestic overnight market during this period

• Winery visitors spend more on average than any other visitor

International visitation to Australia

International visitation to Australia increased marginally in the year ended March 2012

Visitation from China grew by 14% compared to the previous year, complemented by strong growth in the number of Taiwanese and Indonesian visitors.

Australia has experienced reduced visitation from Japan.

The New Zealand market has increased, primarily due to the visiting friends and relatives market.

The average length of stay of International Travellers increased across all states in the year ending March 2012. This has been partially attributed to working holiday visas. 

Visitation from the US, UK and Europe (traditional wine drinkers) is at best ‘soft’ at present.

Source: Tourism QLD and Tourism Australia

Some factors that affect tourism..

• Competition for the disposable $ 

• Competition from other destinations, national and international

• State of the global & domestic economies

• Exchange rates

• Natural disasters (QLD floods, NZ & Japan earthquakes, bushfires) 

• Conflict / terrorism

• Changing consumer motivations, expectations, needs and wants, trends

Australians preferred overseas destinations are..Thailand, Indonesia, USA, NZ & UK

National Visitors Survey June 2012 – Tourism Research Australia

National Visitors Survey June 2012 – Tourism Research Australia

National Visitors Survey June 2012 – Tourism Research Australia

Source: Tourism NSW May 2011

South Australia:

•SA has an approx 20% market share of total visitors to wineries. This is much higher than our total market share of visitors (7%).

•There are approx 1600 Cellar Doors in Australia, 517 in Victoria, 343 in NSW/ACT, 335 in South Australia, 260 in WA, 92 in QLD and 67 in Tas.

• In 2006/07 142,400 or 37.8% of international visitors to South Australia went to wineries at some stage during their visit to Australia.

Source: Tourism Australia and  SATC

However:

•The five most visited specific food and wine regions within Australia were the Hunter Valley (27.4%), Stanthorpe (19.3%), Yarra Valley (15.5%), Barossa Valley (14.5%) and the Mornington Peninsula (9.2%) Source: CRC

• The numbers of people visiting wineries in SA has not matched Australia’s growth in international and domestic overnight and day trip visitors that go to wineries. 

Source: SATC

Why?• Location relative to source markets? 

• Lack of targeted marketing? 

• Changing consumer preferences?

• Not responding to market segmentation?

• Not enough product development and innovation? 

• Resources? ($, people, time, energy)

•Resources not being applied in the right way?

•Mature food and wine destination – ‘tired’?

•More competition? (VIC, NSW, QLD, NZ, Asia, South Africa)? http://www.youtube.com/watch?v=siTgbyavJAM

• Other?

makersWinemakers Federation of

Australia

Tourism Australia

DAFF -(National Food

Plan)

SAWIA SATC PIRSA Food SA GWRDC

RegionalDev

Aus/Ass

Regional Tourism

AssCouncil

Regional Food Group

Regional Wine Ass

Food, Wine and Tourism businesses & producers$, time, ?

Local organisations and groups

RCSA

Winemakers Federation of

Australia

Tourism Australia

DAFF -(National Food

Plan)

SAWIA SATC GWRDC

RegionalDev

Aus/Ass

Regional Tourism

AssCouncil

Regional Food Group

Regional Wine Ass

Food, Wine and Tourism businesses & producers

Local organisations , groups and communities

RCSA

Who staff’s these groups, committee’s and organisations? Who makes things happen in these

communities? Cost?

Travel time?Volunteer time?

Costs?Other ...

Challenges and opportunities working in food and wine tourism..at all levels

• Collaboration• Information sharing• Shared vision / plans / adopting helicopter view• Resourcing in the right areas• Transparency• Good research• Good analysis / review• Training (Inc Access and Affordability) ‐ and not just entry level training• Acknowledging, congratulating, asking, consulting with & supporting those at the coal face 

Harnessing the potential of wine and food tourism

“Wine and food tourism in Australia is at a crossroads. It can continue to be a useful add‐on for individual operators and a sidebar for regional tourism brochures or we can strive to harness its true potential to help underpin the next phase of the sector’s development.

First we need to acknowledge that the key word here is “tourism”. Producing good wine and food and offering it with a smile at cellar doors and restaurants is not enough; wine and food regions need to offer a compelling reason for people to visit.

Secondly we need to think in tourism terms about “product” and “packaging”. Potential visitors need to be able to easily identify and choose from a range of tailored options at all price points to suit differing tastes, markets and moods. We are not alone in seeking to attract them.”

Peter ShulzPresident – Winemakers Federation of Australia (National Wine Tourism Strategy)

Thank you

Some Food and Wine Tourism considerations• Not all ‘Food & Wine Tourists’ are one and the same

• Consider what attributes / USP’s your 

region/business can offer 

•Do you know why your current visitors choose 

your cellar door/ restaurant / farm gate/ 

region over others?

• Do potential visitors know where you are located? 

• Are you currently meeting or exceeding visitor 

expectations? How do you know?

• Would you like to attract more visitors?

• Do you know what sort of visitor you would like to attract and where from?

• Is your tourism offer / appeal  strong enough to attract more visitors?

• Are there things you could and should be doing?