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Victoria's alpine resorts face many challenges in an increasingly competitive environment and in a time of climate change.

The Framework for Discussion document provides managers and stakeholders of the alpine resorts, as well as the wider community, with an outline of the goals and directions needed to achieve the vision of the Alpine Resorts 2020 Strategy.

Those goals include the sustainable management and development of resorts without compromising community access to alpine areas and the ongoing financial sustainability of individual resorts.

The Framework for Discussion document was developed after considering the State Services Authority review of the institutional and governance arrangements of Victoria’s alpine resorts and information from a range of other people and organisations. The terms of reference for the review and the final report can be found on the State Services Authority website.

The State Services Authority alpine areas review was the first examination of the institutional arrangements governing our alpine resorts in more than 10 years. The review also took place in the context of increasing awareness of the impacts of climate change, increasing competition from overseas resorts and heightened community expectations.

Sustainable Alpine Resorts discussion framework - printable version [PDF File - 1.0 MB]

Overview

Government’s role in Victoria’s alpine resorts is to ensure the appropriate use of alpine land for the greatest public benefit.

Victoria’s alpine resorts are owned by the Crown and managed for and on behalf of all Victorians by individual Alpine Resort Management Boards (ARMBs). The Alpine Resorts Co­ordinating Council’s (ARCC) role is to co­ordinate interactions between Government, departments and ARMBs.

My goals for alpine areas emphasise the importance of environmentally sustainable management and development of the resorts while ensuring community access to alpine areas and the ongoing financial efficiency of individual resorts. These goals are encapsulated in the Alpine Resorts 2020 Strategy which contains a long­term vision for the future of four season, vibrant, sustainable resorts.

The alpine resorts are an important part of Victoria’s regional economy and local communities. They are a key generator of economic and social activity, attracting approximately 900,000 visitors each year and generating annually more than $500 million in economic activity and 6,500 jobs. The alpine resorts also contain significant environmental assets, including rare and fragile communities of flora and fauna.

Our alpine resorts face many challenges including the forecast impacts of climate change, rising petrol prices, competition from overseas ski destinations such as New Zealand, Japan and North America and competition for discretionary spending from broader travel and leisure opportunities.

I have therefore sought advice from the State Services Authority and a range of other people and organisations and have identified eight goals that I believe need to be the focus of our efforts if we are to achieve the vision of the Alpine Resorts 2020 Strategy.

These goals are:

This document provides an outline of the proposed directions within each goal.

GAVIN JENNINGS MLC
Minister for Environment and Climate Change (2007-2010)

1. Protecting our unique alpine environment

The Victorian Alps bioregion contains a rich diversity of native flora and fauna species. Although alpine resorts are designated as areas for use primarily for alpine recreation and tourism throughout the year, they are located in environmentally sensitive areas, generally surrounded by national parks where environmental protection is of paramount importance. Climate change is likely to pose a major threat to some alpine species and ecological communities.

Environmental Management Plans for each alpine resort have been in place since the inception of the ARMBs. Site Environmental Management Plans, part of planning permit applications, are also required to be prepared and implemented in the case of any development activities at all alpine resorts.

Several of the resorts have also developed plans for the protection of the endangered Mountain Pygmy­possum and other species such as the Baw Baw Frog.

All ARMBs have made significant investment in weed control, threatened species recovery, waste water treatment and disposal, site rehabilitation and other environmental programs, many in conjunction with Parks Victoria.

‘Keep Winter Cool’ is a climate awareness initiative now in its fourth year. Falls Creek ARMB became the world’s first alpine­based organisation to be benchmarked by Green Globe in March 2005. Green Globe is the international certification program for ecologically and socially sustainable tourism. The ARMB will seek Green Globe certification later this year.

I will encourage the resorts to continue and enhance their environmental programs and undertake more detailed native vegetation planning.

More guidance will be provided to resorts on how to balance the potentially competing demands of environmental protection, development of the resorts and promotion of all­season use.

The ARCC will continue to facilitate implementation of environmental key performance indicators (KPIs) and establish long term targets for approval by Government.

I will ensure that Mt Stirling remains an all­season, nature­based tourism, recreation and education resource with no ski lifts in accordance with the provisions of theAlpine Resorts (Management) Act 1997.

2. Driving financial efficiency and sustained contribution to regional economies

The alpine resorts are significant contributors to Victoria’s regional economies, generating a significant proportion of gross regional product as well as hundreds of seasonal jobs.

The current capacity of the ARMBs to operate without significant Government funding varies considerably as they have different levels of assets and different revenue­raising abilities. The three larger resorts of Mt Buller, Mt Hotham and Falls Creek have decreased their financial demand on Government, but the smaller resorts of Mt Baw Baw and Lake Mountain have found it hard to build resilience and their financial performance depends heavily on the quality and duration of the snow season.

I recognise the importance of the Lake Mountain and Mt Baw Baw Alpine Resorts for their visitors and surrounding communities. Both resorts offer affordable and accessible winter recreation, and act as the nurseries for the more distant resorts. They are also repositioning themselves as all­season, nature­based resorts. A project to look at a range of future options is underway.

Previous legislative and institutional reforms, such as the Alpine Resorts Reform Package 2003, require the ARMBs to be financially sustainable and to report on economic KPIs. Financial sustainability requires further definition in the current climate. This will involve developing a new financial management framework and building a solid understanding of the future capital and recurrent funding requirements.

The current performance monitoring and reporting approach does not help the ARMBs improve the way they conduct their business. I will simplify and clarify performance monitoring and reporting processes, and clearly specify what is to be monitored, how it is to be monitored, how reporting is to be carried out, and what is needed to be produced.

I will also work with the ARMBs to implement a suite of procedures for asset management, maintenance, capital planning, risk management and procurement, based on best practice for public sector entities of this size. Long­term strategic infrastructure plans are required for Government to develop an overview of service­related asset requirements and plan appropriately.

Under the Alpine Resorts (Management) Act 1997, ARMBs are required to provide a range of services such as garbage disposal, utility supply and road works and to charge for these services. While research into property and user charges, commissioned by the ARCC in 2008, demonstrated that Victorian ARMB charges compare favourably with equivalent charges imposed by adjacent municipalities, the New South Wales alpine resorts and a selection of home­base municipalities of many alpine resort visitors, other service providers such as local government and potential private providers may be able to deliver services in a more efficient and effective way. Such consideration should be based on an analysis of how best to provide services to the resort and visitors without compromising quality standards.

3. Building resilience to climate change

I remain committed to the vision of the Alpine Resorts 2020 Strategy for four season, vibrant, sustainable resorts.

CSIRO simulations show that climate change will impact on the alpine resorts in a number of ways including a reduction in the maximum snow depths, area covered by snow and annual duration of snow cover. This will have impacts not only on resort operations but also on biodiversity and fire management in the alpine region.

DSE will collaborate with the CSIRO and appropriate government and industry partners, to build on the 2003 report The impact of climate change on snow conditions in mainland Australia, by considering a range of new scientific data and interpretations. In analysing the data and determining appropriate responses, DSE will also consider the costs and impacts, including the pursuit of all­season activities.

The larger and higher resorts in particular, may be able to adapt to the impacts of climate change through investment in snow making until at least 2020. All resorts have made major investments in snow­making systems, drainage improvements and slope preparation to ensure that they can continue to offer a positive snow experience for visitors.

The resorts have also made significant progress in delivering quality, memorable experiences during summer to help reposition the resorts as year­round destinations. This has been achieved through festivals and events, investment in visitor facilities, trail developments and links to the surrounding parks and forests, summer promotions and working closely with key businesses in each resort. However, there is a need to better research the market potential and product requirements for all­season use and develop a strategy around this.

Because of the increasing risk to the resorts from fire, I will ensure that roles and responsibilities for fire and emergency management are clear. DSE and the ARMBs will continue to work with the CFA and other agencies to develop integrated fire management plans.

4. Providing access to the alpine environment for all Victorians

Object 1A of the Alpine Resorts (Management) Act 1997 makes provision for the use of the resorts by persons from varied cultural and economic groups.

The Alpine Resorts 2020 Strategy states that sustainable management and development of Victoria’s alpine resorts requires consideration of equity and the provision of access to the alpine experience for the broad community. The Alpine Resorts 2020 Strategy however, provides few direct action statements to support this management principle.

Over the decade since the establishment of the ARMBs, winter visitation collectively, and to each resort, has risen significantly, except in the case of Mt Stirling. While more difficult to measure because of its dispersed nature, summer visitation also appears to have increased over the past decade.

All ARMBs have improved facilities for non­skiing and snowboarding visitors, such as snow players and tobogganers. The new All Resorts Pass has simplified access for visitors wishing to visit more than one resort, and efforts have progressed to improve opportunities for people with disabilities. The ARMBs actively engage with school groups to provide affordable winter and summer recreation experiences for all students. The issue of affordable housing for workers is being addressed at several resorts.

The ARCC has completed a set of social KPIs which I have endorsed. These KPIs provide a mechanism by which the ARMBs can start to measure their performance in relation to valuing culture and heritage, community strength, workplace quality, and diverse patronage.

I have tasked DSE with developing comprehensive policy options and mechanisms to facilitate equitable access and use of the resorts by people from diverse cultural and socio­economic backgrounds. This will be done in consultation with ARMBs and a range of other stakeholders.

5. Increasing community satisfaction and participation in the resorts

Alpine resorts are an important part of life in the high country communities. Economic studies indicate that the 2008 winter season alone contributed $470 million in gross state product and nearly 5,000 equivalent jobs. Many of the regions in which the resorts are located are facing particular economic pressures so that the resorts’ contribution to the regional economy is critically important.

Communities, leaseholders and businesses often have close associations with a particular resort. Many have contributed to the establishment and development of a resort and feel a strong sense of connection and ownership. There are active and engaged chambers of commerce, associations of leaseholders and various user groups on most of the mountains, and many interested individuals in adjacent local government areas.

I am keen to ensure that ARMBs embrace the stewardship role they have at each resort, working with their communities and stakeholders.

The ARMBs regularly undertake consultation both on­mountain and off­site. They seek input during the preparation of documents such as corporate plans, strategic management plans and master plans. They hold regular stakeholder meetings, working bees and community events. They use regular email communications and mail­outs. Government likewise uses a range of tools for seeking stakeholder input on resort issues.

Despite these efforts, many people are dissatisfied with the number of opportunities provided to them for making a meaningful contribution to day­to­day and strategic issues for the resorts. Others would like more feedback on how their input was considered.

I am committed to consultation on the way forward for alpine resorts and on specific policy issues. I will also support the ARMBs in continuing to develop skills in engagement policy, planning and practice with the aim of increasing transparency in decision­making and improving trust and confidence.

The recent sealing of the Bogong High Plains Road between Falls Creek and the Omeo Highway and the opening of the South Face Road at Mt Baw Baw have physically improved the connections to regional communities. I am keen to ensure that these investments result in enhanced recreation opportunities for locals as well as tourists.

The new social KPIs contain a measure related to community participation and consultation. I will ensure these are reported regularly in annual reports.

6. Ensuring integrated and transparent planning and leasing processes

The Alpine Resorts 2020 Strategy provides the strategic policy directions for the resorts. To support this strategy there is a need for a comprehensive vision for the resorts collectively and individually, and a clear articulation of long­term planning and development opportunities and requirements. The hierarchy of existing strategic and spatial plans will be reviewed to ensure that there is a comprehensive planning package in place to provide guidance for the resorts. This will be a collaborative effort across Government with the ARCC, the ARMBs and their stakeholders.

Development and use of land in the alpine resorts is controlled by the Alpine Resorts Planning Scheme. The Minister for Planning is both the planning authority and responsible authority for the scheme, which is administered on his behalf by the Department of Planning and Community Development (DPCD). ARMBs have referral authority powers in relation to servicing and site stability. The ARMBs can also provide comments more generally in their role as land managers.

There is a lack of understanding about the planning process for the alpine resorts, leading to the potential for probity concerns and perceptions that ARMBs misuse their planning and leasing powers. It also contributes to uncertainty regarding planning processes and unnecessary time delays for investors.

DPCD considers that a review of the Alpine Resorts Planning Scheme is timely. That review will consider the requirements of the scheme, resort­specific design guidelines and any improvements to planning processes. I want to see ecologically sustainable mountain villages that have local character, a sense of connection to the landscape, accessible community spaces and facilitate high quality, safe experiences for locals and visitors.

DPCD will also consider ways to improve capability in the assessment of development proposals. DSE will assist the ARMBs in developing communication tools and training materials to improve understanding among stakeholders of planning roles and processes and the links to leasing.

In 2002, Government approved a policy to apply to the leasing of all land within alpine resorts in Victoria. The policy takes into account probity, conflict of interest, public interest and competition requirements and is based on the principles of demonstrated public and economic benefit, transparent lease allocation and process, appropriate lease terms and conditions, consistent lease documentation, and approval in principle. Site rental is determined in relation to site value using a market­based approach. Boards negotiate and issue all leases in alpine resorts, subject to my approval in my capacity as the Minister for Environment and Climate Change. I will review elements of the leasing policy to ensure it is the best framework for the future. This will include affirming a common and equitable rental model and investigating a common model for determining annual service charges.

7. Strengthening the market position of the resorts

Winter visitation continues to be the main driver of resort vitality. However, increasingly, alpine resorts compete for visitation against other alpine destinations interstate and internationally. In the summer market they compete against other nature­based tourism destinations and other tourism and leisure opportunities.

To strengthen their market position, it is critical that the facilities, services and recreational opportunities provided within and outside the resort villages match the expectations of existing and potential visitors. The focus on all­season resorts has started to drive an expansion in the range of cultural and tourism products offered by the ARMBs. However, there is more work to be done.

Victoria’s Nature­based Tourism Strategy proposes five areas of focus if the industry is to reach its potential. These are:

• creating supportive frameworks and partnerships
• planning and managing sustainable destinations
• developing authentic memorable experiences
• facilitating viable and innovative businesses
• effective marketing.

These five areas are applicable to the resorts in winter and summer as well as to the nature­based tourism industry more broadly.

The listing of the Australian Alps on the National Heritage List and their incorporation in the National Landscapes program represents an opportunity for the alpine resorts to access international market exposure, and develop an international profile which will attract high­yielding, long­stay visitors.

Tourism Victoria is the lead agency in Victoria for tourism marketing and development. The Alpine Resorts (Management) Act 1997, provides that one of the functions of the ARCC is to co­ordinate, in conjunction with Tourism Victoria, the overall promotion of the resorts. The Act also stipulates that it is a function of the ARMBs to contribute to this promotion.

8. Ensuring sound governance and clear roles and responsibilities

The ARMBs were originally established as separate entities, based on the concept of enhancing competition between the resorts. Individual ARMBs have been able to drive the competitive advantages of their respective resorts in unique ways. The ARCC was set up as a co­ordinating body with a complementary role, being to undertake strategic, industry and cross­resort projects and to provide advice.

Ten years on, I thought it was important to review the institutional arrangements for the management of Victoria’s alpine resorts. I sought advice from a range of sources in order to form a view about appropriate future arrangements.

The ARMBs and the ARCC are making progress to achieve Government’s goals for alpine resorts. However, there are a range of issues that need to be addressed:

• roles and responsibilities of Government departments and agencies, ARMBs, the ARCC and the private sector need to be clarified
• there is a need to build capability and scale around policy and management
• there is a need for a more integrated and long­term approach in a number of areas
• the benefits of competition and innovation, facilitated through individual ARMBs, should not be lost
• policy and governance, and operational functions, should be separated
• there needs to be more transparent decision­making, meaningful monitoring and clearer accountability.

To address these issues, the ARCC will be given greater authority to improve cooperation, learning and risk management, as well as create operational efficiencies. The ARCC will continue to be funded by the ARMBs. These contributions should be off­set in time by operational savings resulting from the ARCC's work.

I will continue to appoint independent ARMBs for each resort, which will manage significant on­site capability. Mt Stirling will continue to be managed by the Mt Buller and Mt Stirling ARMB.

Policy, research, and review and monitoring functions will be the responsibility of DSE, working with other Government agencies, the ARCC and the ARMBs.

The ARMBs are subject to conflicts and tensions resulting from the requirement to pursue both commercial and public good goals. DSE will provide improved guidance on how the ARMBs should balance their economic, social and environmental responsibilities.

These amendments are consistent with the public sector governance principles published by the State Services Authority.

I will continue to consult with stakeholders to confirm in detail the roles and responsibilities of all parties.

In addition to clarifying roles and responsibilities, I will ensure improvements to the governance framework. In my capacity as Minister for Environment and Climate Change, I have begun issuing annual statements of expectations to each ARMB to outline how the ARMBs should undertake their roles. DSE has commenced work on streamlining planning and reporting requirements, and is in the process of reviewing the alpine resort regulatory framework.