Hospitality Strategy

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COVER

Melbourne Hospitality Strategy 2008-2012A City of Melbourne initiative.

City of Melbourne 2008

CONTENTS

INTRODUCTION

SCOPE OF THE STRATEGYMelbourne Hospitality Advisory Board

A SHARED VISION - MELBOURNE HOSPITALITY STRATEGY 2008-2012

Vision for the future of hospitalityShared success

GUIDING PRINCIPLES, STRATEGIC OBJECTIVES AND ACTIONS

Key partners

1. Collaboration2. Recognition3. Positioning4. Services

5. Sustainability

BEYOND 2008-09

1. Collaboration2. Recognition3. Positioning4. Services5. Sustainability

MELBOURNES HOSPITALITY SECTOR TODAY

A statistical snapshot

GROWING YOUR BUSINESS

The City of Melbourne here to helpBenefits to your businessHospitality in MelbourneCity of Melbourne municipality

WHERE TO GET MORE INFORMATION

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PAGE 1. INTRODUCTION

Melbourne is a culturally diverse and colourful city with an endless variety of culinary,beverage, accommodation and event experiences on offer. We enjoy a high classsporting and cultural calendar and a hospitality experience that rivals the finest citiesin the world.

Hospitality is at the very heart of Melbournes social and cultural appeal, whichincludes arts and culture, public spaces, access and ambience.

The City of Melbourne appreciates that the hospitality sector plays an integral role inmany other industries, such as tourism and events, retail, culture and recreation, andis now seeking to formalise its connections with this sector to ensure it receives theattention and support it deserves.

This Melbourne Hospitality Strategy 2008-2012represents a great opportunity for the

city to recognise the hospitality sectors importance and value and to acknowledge itsbroad contribution to Melbournes position as a thriving and sustainable city.

Hospitality is also an important contributor to the citys gross economic output and isa significant partner in the economic growth of the city and the state.

When the hospitality sector does things well, it creates benefits for the whole city,generating increased visitation, better experiences, longer stays, more spending anda lasting goodwill towards Melbourne.

Working in partnership with the hospitality sector, the City of Melbourne looks forwardto creating many opportunities for improvements, growth and innovation within this

sector.

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PAGE 2. SCOPE OF THE STRATEGY

Running a hospitality business in Melbourne is a rewarding experience. Our city isone that embraces the new and the different, and seeks out high-quality, professionalservices. Melburnians dont settle for second best. So were always being challengedto take on changes and stay in step with our fast-growing, thoroughly diverse andmodern city.

The Melbourne Hospitality Advisory Board, established by the City of Melbourne in2007, has looked at how Melbournes hospitality sector functions, how it works withthe City of Melbourne, where the sector is heading, where it should be heading andwhat we can all do better.

The results wont come as a shock to anyone were doing well, but we need to startworking together to ensure our position remains strong as the city grows anddemands on our services increase.

The Melbourne Hospitality Advisory Board has been an important guide for the Cityof Melbourne in developing this strategy, and will oversee its implementation, monitorits progress and provide a platform for communication between the City ofMelbourne, and its hospitality stakeholders.

Based on the recommendations of the board, this strategy focuses on five broadthemes:

collaboration

recognition

positioning

services

sustainability

This strategy acknowledges that Melbournes hospitality experience is part of thebroader city experience. The welcome we offer visitors (the citys ambience, itssafety, its transport and parking), the way we engage visitors while theyre here(attractions, events, culture and community) as well as the nuts and bolts ofhospitality (food, beverages and accommodation) all contribute to the cityexperience.

Working with the City of Melbourne, and with each other, we can use our combined

strength to continue building hospitalitys well-established place in the life of the city,and find better ways to promote the sector, service its customers and contribute toMelbournes future.

The strategys scope is 2008-2012, but it will be regularly reviewed and revised aswe progress with achieving our vision for Melbournes hospitality sector.

FEATURE BOX

Melbourne Hospitality Advisory Board

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In developing a strategy that was both relevant and useful, City of Melbourne knewit needed to draw upon the expertise of key stakeholders in the hospitality sector.The Melbourne Hospitality Advisory Board, the reference group for this strategy, ismade up of major hospitality operators, companies and organisationalrepresentatives; senior sector development representatives; and local and state

government representatives.

PAGE 3. A SHARED VISION - MELBOURNE HOSPITALITY STRATEGY 2008-2012

Vision for the future of hospitality

Our vision for the future of hospitality is a shared vision, developed in collaborationwith the Melbourne Hospitality Advisory Board. This shared vision is:

For Melbourne city to be recognised locally and internationally as aleading hospitality destination, distinguished by its unique diversity,cultural richness, professional service and consistent quality.

Shared success

This vision can only be achieved through collaboration. This includes working withhospitality businesses and agencies, but it also means looking at the bigger picture and working with all hospitality sector stakeholders, including:

Service providers: small and large business operators (restaurants, bars,cafs), accommodation owners and those working within the sector.

Regulators/administration: federal, state and local governments, authorities,industry associations and business representatives.

Customers: current and future users of hospitality services, including local,national and international customers

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PAGES 4 9: GUIDING PRINCIPLES, STRATEGIC OBJECTIVES AND ACTIONS

FEATURE BOX

Guiding principles, strategic objectives and actions

The Melbourne Hospitality Advisory Board has identified five areas where the City of Melbourne is best placed to support and promote thehospitality sector.

For the four year life of this strategy (2008-2012), the City of Melbournes work will focus on these five areas:

1. Collaboration2. Recognition3. Positioning4. Services5. Sustainability

Key partners

The City of Melbourne will engage with key stakeholders and partners in the delivery of this strategy. The implementation of planned actionsfor 2008-09 will require collaboration with:

Tourism Victoria Tourism Australia Restaurant and Catering Victoria

Department of Innovation Industry and Regional Development

Melbourne Convention and Visitors Bureau

Austrade

Business Partner Cities Network Melbournes sister cities

Lord Mayors Small Business Proprietor Commendations Committee local hospitality businesses

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1. Collaboration

Collaboration a guiding principle

Ecourage collaboration between leaders and key stakeholders of the hospitality sector. This means seeking out opportunities for buildingstronger links. It means identifying synergies in different industries and using these to improve communication and consultation betweensectors. Through collaboration we can achieve results that not only address the needs of the hospitality sector but also contribute to theoverall economic growth of the city.

Strategic objectives

Demonstrate commitment to the achievement of our vision through the establishment of shared goals. Promote a stronger industry voice.The following actions, results and benefits are planned for 2008-09.

2008-09 action Measurable results Hospitality sector benefits

Prepare an economic profile reportfor the cafe and restaurant sector inpartnership with Tourism Victoriaand Restaurant and CateringVictoria.

Produce a report profiling the economicstatus and health of the caf and restaurantsector.

Develop a plan for addressing any reportrecommendations.

The completed report will provide thehospitality sector (and its stakeholders)detailed information on:

baselineseconomic profilesworkforce developmentpatronage

Support the Melbourne Food andWine Festival and help positionMelbourne as the food and wine

capital of Australia.

Media coverage achieved for this event, andfor Melbourne, locally, nationally andglobally.

The development and production of twosuccessful events showcasing theDocklands precinct and laneways, rooftopsand piazzas.

Increased visitation to Melbourne.

Our support of this event will help buildMelbournes international reputation as aculinary, diverse and lively destination.

The event generates significant promotionfor Melbournes restaurants, cafes and bars.

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2. Recognition

Recognition a guiding principle

A guiding principle of this strategy is that it should ensure the importance and value of our hospitality sector is fully recognised. Thehospitality sector should be recognised as a major contributor to Melbournes global reputation, economic development and prosperity..


Seek better support at state and federal level, gaining recognition for the sector as a stand-alone industry. Engage in more funding for activities to support the sector and the citys hospitality offer

The following actions, results and benefits are planned for 2008-09.


Produce a value of hospitality report. Ensure the Melbourne Hospitality Strategyreport card for 2008-09, includes information onthe health and value of the hospitality sector.

Recognition of the value of the hospitality sectorand the contribution it makes toward the overallsustainability and success of Melbourne.

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3. Positioning

Positioning a guiding principle

A guiding principle of this strategy is that it should promote and position Melbourne as Australias hospitality capital, and as a leading globalfood and wine destination.


Attract and nurture a diverse and distinct hospitality sector that reflects the rich authentic fabric of Melbourne. Increase visitation, spend and economic returns for the hospitality sector. Provide opportunities for the sector to work with and alongside sporting and cultural events, increasing benefits for the sector, for the

events and for patrons of both.



Through the Small Business GrantProgram, attract innovative new smallbusinesses to the City of Melbourneand nurture existing businesses lookingto expand their offer.

The hospitality sector is valued as one ofMelbournes key industries. Ensure businessexpansion or export support for innovative newoffers remains a priority for the BusinessDevelopment Fund.

Successful hospitality-sector grant applicantsgain a unique opportunity to establish and/orexpand their innovative hospitalityservices/products. The growth of innovativebusiness in the city adds to Melbournes identityas a cultural and tourist hub.

Enhance local, regional, national andinternational connections and positionMelbournes hospitality sector through:

local events

tourism ambassador activities

seasonal marketing campaigns

and ensuring Melbournes hospitalityoffer is consistently presented in allmarkets.

Deliver hospitality specific campaignshighlighting Melbournes unique hospitalityexperience.

Build Melbournes profile as a leading foodand wine destination and drive visitation andspend to the sector.

Melbournes strong reputation as a leadinghospitality destination will increase the health ofthe sector.

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Commend long-serving small businessproprietors for their significantcontribution to the prosperity andvitality of Melbourne through the LordMayors Small Business ProprietorCommendations.

Ensure that the City of Melbourne continues togrow and develop the alumni of more than 200businesses.

The Lord Mayors Small Business ProprietorCommendations create a fraternity among smallbusinesses. The commendations are anopportunity for business proprietors to beformally commended for their commitment toMelbourne.

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4. Services

Services - a guiding principle

A guiding principle of this strategy is that it should ensure the delivery of local government services that contribute to the hospitality sector'sprofessionalism and quality standards. It should ensure local government requirements are communicated via mechanisms and timeframesthat suit the needs of hospitality businesses.

Strategic objectives:

The sector provides consistent, professional, high quality hospitality experiences Hospitality experiences in Melbourne meet expectations Hospitality entrepreneurs and businesses enjoy the benefits of a prosperous, global city offering state-of-the-art infrastructure and

services, a highly skilled workforce and affordable business accommodation. The hospitality sector and City of Melbourne service providers improve their communication with one another.



Develop a quarterly newsletter for thehospitality sector, with information onevents, marketing, health services,local government requirements,business services and sustainabilitypractices.

Delivery of a quarterly newsletter that isresponsive to the needs and expectations of thehospitality sector and distributed to hospitalitybusinesses in the City of Melbourne.

A better informed and engaged sector.

Hospitality businesses are better informed abouthealth inspection services, environmentallyfriendly business practices, waste management,noise management, marketing opportunities andbusiness services.

The hospitality sector is considered inthe development and delivery of localgovernment and public infrastructureservices.

The Melbourne Hospitality Advisory Boardprovides advice and direction on thedevelopment of local government services(guidelines) that impact the hospitality sector.

Local government services understand,consider and respond to the needs andexpectations of the hospitality sector.

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5. Sustainability

Sustainability a guiding principle

A guiding principle of this strategy is that it should support and promote businesses and initiatives with positive influences on our environment/The actions in this strategy should encourage industry sustainability and help the hospitality sector adapt to our changing climate.

Strategic objectives:

The hospitality sector participates in ensuring a sustainable future for Melbourne The City of Melbourne reduces its ecological footprint to fit within the boundaries of one planet. Melbourne becomes a zero net emissions city



Facilitate the delivery of Green Tables an international sustainabilityaccreditation program for restaurantsand cafes.

Approximately five per cent (150) ofMelbournes restaurants and cafes sign upto Green Tables during its first year,

Measurable data from Epicure at the TownHall and Zinc regarding waste, water,energy savings.

Associated reductions in GHG emissionsextrapolated from data of participants.

Green Tables is a structured and easy to followsustainability program that will reduce businesscosts of energy/water/waste services (after anyrelevant payback period for start-up costs.)

Green Tables provides the sector with anopportunity to be involved in an (inter)nationallyrecognised sustainability program, withaccredited businesses supported through 'greendining' promotions.

Develop a sustainable small businessstrategy to encourage and help smallbusinesses in reducing their carbonfootprint.

Deliver sustainability projects that fit smallbusiness community needs. The focus will beon introducing environmental managementmeasures that help small businesses reducetheir carbon footprint in cost effective ways.

Reduced long-term operating costs.

Hospitality sector businesses will have everyopportunity to do their bit in ensuring asustainable future for our city,

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Identify opportunities for the hospitalitysector to become involved in City ofMelbourne-led sustainability projects.

The City of Melbourne is actively workingtowards reducing its ecological footprint andtowards becoming a zero net emissions city.

Reduced long-term operating costs.

Hospitality sector businesses will have everyopportunity to do their bit in ensuring asustainable future for our city,

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PAGE 10: ACTION BEYOND 2008-09

Actions for the years 2009-10 through to 2011-12 will be confirmed in the future. Theactions listed here are indicative only.

1. Collaboration

2009-10 Actions

Create an action plan to address recommendations in the Economic Profile Report.

Support the Melbourne Food and Wine Festival and help position Melbourne as thefood and wine capital of Australia..

2. Recognition

2009-10 ActionsProduce a second Value of Hospitalityreport.

3. Positioning

2009-10 Actions

Through the Small Business Grant Program, attract innovative new smallbusinesses to City of Melbourne and nurture existing businesses looking to expandtheir offer.

Enhance local, regional, national and international connections.

Implement agreed components of the City of Melbournes Cultural PrecinctStrategic Framework to enhance the amenity and activation of Melbournes threekey cultural precincts.

4. Services

2009-10 Actions

Continue the publication of the hospitality sectors quarterly newsletter initiated in

2008-09.

Continue liaising with the hospitality sector during the development and delivery oflocal government and public infrastructure services.

5. Sustainability

2009-10 Actions

Implement recommendations of the Sustainable Small Business Strategy.

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PAGES 11-12: MELBOURNES HOSPITALITY SECTOR TODAY

Melbourne continues to rank number one in Australia for its total hospitalityexperience. Each year it increases its lead as a city offering quality hospitalityexperiences and world class restaurants.

Brand Health Survey, Roy Morgan Research 1996-2007

Melbournes hospitality sector is essential to the citys economic, social andenvironmental sustainability because:

a significant portion of the citys floor space is used for hospitality purposes; hospitality services are used by almost all city visitors, including Melbournes

many thousands of workers;

the sector employs a significant number of staff; and

Melbournes quality hospitality offerings have established it as a world-class cityfor dining and entertainment.

FEATURE BOX

City of Melbourne research

The City of Melbourne conducts extensive research into its people and places andinto city activities. This research is used by planners, businesses and others to geta better understanding of how the city is changing and evolving and what peoplewant out of Melbourne.

The City of Melbournes CLUE: Census of Land Use and Employment is conductedevery two years. The most recent census was conducted in 2006, with the nextscheduled for 2008.

Floor space

In 2006, the hospitality sector occupied more than 1.7 million m2 of Melbournes floor

space, more than many of the citys largest industries, such as finance and insuranceand education and training. The seating capacity of Melbourne cafs and restaurantshas increased significantly in recent years.

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Source:CLUE (Census of Land Use and Employment) 2006

A National Institute of Economic and Industry Research Melbourne Hospitality Study(March 2007) found that Melbourne has seen consistent growth in the number ofhotels, from 41 hotels in 2000 to 58 in 2007. The number of five-star hotels alsoincreased from eight hotels in 2000 to 12 in 2007.

This same study found that Melbournes hospitality sector is well served when itcomes to finding quality produce for its tables but rapid growth means the availabilityof skilled labour is a concern now and will become more so in the future.

Melbourne visitors

The most popular activities, undertaken by nine out of ten domestic overnightleisure trips in Australia were social activities, including eating out atrestaurants and shopping.

Tourism Victoria

Weekdays in the city

In 2006, 543,000 people visited the city every weekday.

Workers made up 48 per cent of visitors, with 32 per cent of visitors coming to thecity to access hospitality services. Of course, many of the 48 per cent of workerswould also access hospitality services during their time in the city.

Weekends in the city

In 2006, 389,000 people visited the city on a weekend, including 73 per cent ofvisitors who were there to access hospitality services.

Domestic visitors

Nine out of ten domestic visitors taking an overnight leisure trip in Melbourne are in

the city for social activities such as eating out at restaurants and shopping.

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Source:Tourism Research Australia, National Visitor Survey Year Ending June2006

International visitors

Close to nine out of ten international visitors say their favourite activity in Australia iseating out at a restaurant and/or caf.

Source:Tourism Research Australia, International Visitor Survey December 2006Base: Visitors 15 years and older.

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PAGE 13: GROWING YOUR BUSINESS

The City of Melbourne here to help

The City of Melbourne has worked with the Melbourne Hospitality Advisory Board todevelop a strategy that not only presents an achievable vision for the future ofhospitality in the city, but also identifies new ways we can support your growth andprosperity.

The City of Melbourne will work with the sector to ensure our city maintains itscompetitive edge and winning mix of diverse businesses. We support localbusinesses of all shapes and sizes.

Benefits to your business

This strategy aims to benefit your business through:

improved, targeted promotion of Melbournes hospitality sector locally, interstateand internationally;

better access to quality information about doing business in the city, includinghospitality-specific statistics and data;

easily accessible support from your local council whether you are establishingor expanding your business; and

a shared vision and commitment for the hospitality sector, with agreed goals wecan all work towards together.

Hospitality in Melbourne

Hospitality is a critical component of the overall success of city industries such as:retail trade; tourism and events; and culture and recreation. Almost every activityundertaken by city visitors includes a hospitality element.

Within this strategy, hospitality refers to:

accommodation venues;

cafes and restaurants;

casinos;

pubs and bars; and

licensed membership based clubs.

The Australian and New Zealand Standard Industrial Classification (ANZSIC) hasbeen used for the production and analysis of industry statistics. To determine whatthe city means by hospitality the following codes were considered:

4511 cafes and restaurants 4520 pubs, taverns and bars 4530 clubs (hospitality) 4400 accommodation

City of Melbourne municipality

Within this strategy, Melbourne and city both refer to the City of Melbournemunicipality.

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INSERT MUNICIPAL MAP (NEW BOUNDARIES)PAGE 14: WHERE TO GET MORE INFORMATION

For more information on City of Melbourne business support services, including forthe hospitality sector, visit our business-focused website:

www.businessmelbourne.com.au

For more information on City of Melbourne research, visit our corporate website:

www.melbourne.vic.gov.au

Thats Melbourne website showcases the citys best restaurants, cafes, bars, as wellas events, shopping and attractions.

www.thatsmelbourne.com.au

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Documents

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