TOURISM in Bass Coast contributes $308.5 million in economic output and over 1600 jobs, most of that coming from Phillip Island and its world-famous major events.
However, while it successfully hosts the MotoGP, World Superbikes and Phillip Island Pro world surfing qualifying event, along the way to attracting some 35 per cent of Melbourne’s international visitors, according to the State Government, Phillip Island doesn’t warrant having a stand-alone regional tourism board.
But at the Bass Coast Shire Council meeting this Wednesday, Bass Coast Shire Councillors will be asked to vote on an alternative option to the three merger proposals put forward by the Department of Jobs, Skills Industry and Regions (DJSIR) as part of a statewide reform of regional tourism promotion.
The DJSIR wants Destination Phillip Island to either join the rest of Bass Coast in merging with Destination Gippsland or Mornington Peninsula or for DPI to join Mornington on its own.
Bass Coast Shire and Destination Phillip Island want to reject all three options.
They want the government to consider supporting a fourth way given the significance of the visitor economy in the area, called ‘One Bass Coast’, effectively a standalone ‘regional’ tourism association with Bass Coast as its only member.
If council votes that way this Wednesday, Bass Coast will write to the Minister for Tourism, Sport and Major Events outlining Council’s position.
There’s one obvious problem with that approach.
In its ‘Supporting regional tourism in Bass Coast Shire’ options paper delivered to Bass Coast Shire and DPI in November last year, DJSIR only agreed to extend funding to the existing structure on the basis that Bass Coast Shire and Destination Phillip Island accepted one of the three options.
“The approval of funding for DG ($590,000 to June 30, 2025) and DPI ($250,000 to December 31 2025) were conditional on negotiations and co-design continuing, with the ultimate intent of merging the two regions. Both organisations accepted funding on this basis,” said DJSIR.
While the State Government acknowledges that “Phillip Island has a strong international profile, with only 618 visitor economy businesses… it does not achieve the principle of scale outlined as an objective of reform.”
Under the government’s reform proposal, regional tourism boards would be funded on the following basis; three or more regional councils, including a regional city $350,000 per year, six or more regional councils $590,000 per year.
The options paper went on to say:
“As the Local Government Authority with the responsibility for the promotion of the economy of the municipality, BCSC plays a critical role in leading and directing the reform process to support the Phillip Island/San Remo visitor economy. While DPI’s preference is to remain independent, it cannot achieve the VEP principles outlined above.
“When co-design of the merged DG/DPI region commenced in early 2024, DPI wished to explore the alternative reform option of joining with Mornington Peninsula Regional Tourism Board (MPRTB) and positive conversations have occurred since that time.
“To finalise reform in Gippsland and progress the reform of Mornington Peninsula, the representation of Phillip Island/San Remo in the Regional Tourism Network needs to be resolved. DJSIR considers that there are three options that are available to BCSC as the relevant Council as a critical decision maker regarding the future alignment of Phillip Island/San Remo and a major investor into the future VEP.”
But the DJSIR left open the possibility that Bass Coast might be able to argue otherwise.
“These options and likely funding arrangements are working options developed by DJSIR to assist BCSC, they do not represent the formal position of the Minister or the Victorian Government.”
So, while the state government prefers to see groups of councils cooperating to manage the promotion of regional tourism, thereby achieving better economies of scale, Bass Coast hopes to be able to argue that Phillip Island and Bass Coast as a whole represent a special case.
In its papers for this week’s council meeting, Bass Coast has considered the risks associated with adopting an unpopular merger option, including possible political backlash.
“The One Bass Coast model,” said the council in its report, “ensures a unified and strategic approach to managing the visitor economy across the entire municipality. This model maintains Bass Coast’s strong regional identity, safeguards current funding levels, and provides continuity in destination management and industry support.”
As part of the fourth option to be considered by council, the shire has guaranteed its existing funding to DPI and DG of $134,500 will be paid to the new entity. How Bass Coast will continue to interact with Destination Gippsland, of which its neighbour South Gippsland is a prominent member, is unknown.
