Application Guidelines

Tourism Demand Driver Infrastructure Program

Application Guidelines

1.  Overview

1.1.  Tourism in Victoria

Tourism is an important industry for Victoria, contributing $20.6 billion (5.9 per cent) towards the Gross State Product and employing 206,000 people (directly and indirectly)[1].

In July 2013, Victoria's 2020 Tourism Strategy was released; a whole-of-government document that provides a clear vision about how the tourism industry can increase its economic and social contribution to the State. This document aligns to Victoria’s commitment to the Commonwealth Government’s Tourism 2020 Strategy.

Consistent with the long term national tourism strategy, Victoria’s aim is to grow overnight tourism expenditure to $24.7 billion by 2020.

Reaching this goal would have a significant impact on the Victorian economy. By 2020-21, it is estimated that tourism will contribute approximately $34 billion to Victoria's Gross State Product (both direct and indirect impacts) and generate an estimated 310,000 (direct and indirect) jobs.

1.2.  Tourism Demand Driver Infrastructure Program

The Commonwealth Government, through the Tourism Demand Driver Infrastructure Program (TDDI), has allocated funding to each jurisdiction for the development of tourism infrastructure, while ensuring that the benefits of any government investment can be multiplied across the sector. Tourism Victoria is responsible for the administration and management of the TDDI for Victoria.

The Commonwealth Government has set out principles to guide their expectations of jurisdictions for the implementation of this program, as outlined below:

·  Projects must align to one or more of the Tourism 2020 strategic areas or to a request by Tourism Ministers;

·  Jurisdictions must be able to show that the project will demonstrate a return on the Commonwealth Government’s investment across the tourism supply chain;

·  Projects must have funding that matches the Commonwealth Government’s contribution, noting that funding may be sourced from either the public or private sector, or a combination of both. In kind contributions are not considered as matching funds; and

·  Jurisdictions may also choose to spend funds on a national project where benefits cross state borders.

1.3.  Purpose of this document

This document sets out the guidelines for the Tourism Demand Driver Infrastructure Program.

2.  Description and objectives of program

2.1.  What is the Tourism Demand Driver Infrastructure Program?

The program provides monetary investment on a matched dollar-for-dollar basis, to develop tourism infrastructure, ensuring that the benefits of any government investment can be multiplied across the sector. In particular the program supports projects that contribute to achieving the Tourism 2020 objectives.

Victoria has approximately $7 million over four years beginning in 2014/15 to allocate towards projects that are seen to contribute to the State’s tourism industry, the Commonwealth Tourism 2020 Strategy and Victoria’s 2020 Tourism Strategy. Funds will be allocated on contestable basis.

2.2.  Who can apply?

The TDDI funding is available to tourism related businesses or investors, local governments or tourism associations.

Applicants are encouraged to seek comment from the State Government’s Regional Tourism Boards or Destination Melbourne, in respect to how their project will align to local priorities.

2.3.  Funding support

Applicants are expected to make a significant financial contribution or identify third party funding for projects. Funding from the Tourism Demand Driver Infrastructure Program will generally be limited to $250,000 to $750,000, with at least equal funding from another source. Projects of greater or lesser value will be considered subject to merit.

Applicants should maximise funding support from a range of sources including local and State government, community, private sector and regional organisations. Note that additional Commonwealth Government funding cannot be used as part of the ‘matched funds’. In-kind contributions are not accepted as part of the funding contribution.

3.  What types of projects can be funded?

3.1.  Eligible projects

Funded projects should create and encourage visitation to a destination and to assist the tourism industry in meeting Tourism 2020 targets. Eligible projects, and examples for each, include:

·  Environmental – the development or enhancement of natural assets such as protected and recreational areas, public spaces such as beaches and parks and walking trails;

·  Built – such as mixed-used facilities, convention facilities, cultural institutions, entertainment and sporting facilities, city/town precincts and tourist attractions;

·  Transport – such as roads, rail networks, ports and airports; and

·  Enabling – such as tourism networks, plans and feasibility studies, and programmes to improve industry capability and capacity (eg destination management planning, business planning, workforce development, cultural awareness, digital product development).

Projects that demonstrate a collaborative approach across a region or the State are strongly encouraged.

In each case, any proposal must be able to measure and show how the proposed project will contribute to the program principles outlined at 1.2 above.

3.2.  What will not be funded?

The Tourism Demand Driver Infrastructure Program will not fund:

·  marketing, advertising or product promotion;

·  regular repairs and maintenance;

·  upgrading or developing facilities predominantly for local communities;

·  buying or upgrading non-fixed equipment;

·  engaging or paying permanent employees;

·  buying or leasing real estate of any type; or

·  administrative or running costs that are normally the responsibility of a business, state or territory administration or local council; or

·  projects requiring ongoing funding from State or Commonwealth Government once completed.

4.  What is the application process?

There are some important steps to consider prior to submitting an application to the Tourism Demand Driver Infrastructure Program.

4.1.  Step 1: Prior to application

Prior to submitting an application, prospective applicants are advised to:

·  read the Guidelines carefully to establish eligibility;

·  discuss the proposed application with a Tourism Victoria officer and (where relevant) the local Regional Tourism Board or Destination Melbourne;

·  identify the alignment of the project with the relevant eligibility criteria and Tourism 2020 priorities;

·  demonstrate return on government investment; and

·  read the Terms and Conditions upon which the funding will be offered.

4.2.  Step 2: Prepare an application

Prospective applicants should use the application to clearly and succinctly describe the purpose and objectives of the project.

Applications must be signed by the Chief Executive Officer or equivalent.

GST

Prospective applicants should note that all project costs included in the application must be exclusive of GST. The funding to be paid by Tourism Victoria will be inclusive of GST, provided the applicant provides details of registration for the GST or proof of exemption from being required to register.

Application criteria

In preparing the applications, prospective applicants will be asked to address each of the following criteria:

a)  Project readiness.

b)  Demonstrated need (the project would not occur or would take much longer without this funding).

c)  Availability of co-funding.

d)  Capacity to deliver the project.

e)  Alignment with regional, state and national priorities.

f)  Demonstration of return of government investment.

The evidence supplied to support the alignment with these criteria will be evaluated.

Meeting the eligibility and assessment criteria does not guarantee that an offer of funding will be made as funds are limited.

5.  Assessment

5.1.  Assessment criteria

Eligible applications will be assessed using the questions and criteria listed below. Applicants should address all relevant criteria and also provide supporting documents. Weightings in percentage are provided as a guide to the relative importance of different criterion in the assessment process.

a)  Project Readiness: Is the project ready to commence upon receipt of funding? (Pre-requisite)

The application demonstrates the extent to which the project:

·  is investment ready, supported by clear approach and realistic timeframes, and is expected to commence within six months of approval;

·  is financially viable, based on sound cost estimates and represents value for money;

·  is environmentally sound and consistent with good heritage practice, i.e. The Burra Charter (if heritage listed); and

·  provides supporting documentation that is required by Tourism Victoria (see Section 6).

Projects that fall within the categories of Environmental, Built and Transport must have support of relevant government agencies.

b)  Demonstrated need: Why funding is important to this project? (Pre-requisite)

The application demonstrates that without funding the project would not occur or would take a long time to complete.

c)  Availability of co-funding? (Pre-requisite)

The application demonstrates that at least 50% of funding for the project is from a separate source. Commonwealth funding from separate sources will not count towards this criteria.

d)  Capacity to deliver the project. How will the project be managed? (30%)

The application demonstrates the extent to which the organisation:

·  demonstrates an organisational capacity to implement the project, including prior experience with similar project and personnel with appropriate experience, and/or the capacity to source expertise to manage the project; and

·  demonstrates a collaborative approach with a range of partners and indicates how they will contribute to the project.

e)  Alignment with regional, state and national priorities: Why is the project needed? (35%)

The application:

·  demonstrates the extent to which the project aligns to priorities identified within Commonwealth and State Tourism 2020 Strategies and Victoria’s Regional Tourism Strategy 2013-16; and

·  describes the benefits of this project – economic (return on investment, jobs etc), social, environmental.

f)  How the project demonstrates return on investment? (35%)

The application demonstrates the extent to which the project, directly or indirectly, provides a return on Government investment across the tourism sector in terms of jobs and growth in GDP.

It is recognised that some projects directed towards local capacity building (eg in skills and employment, or IT development) or strategic planning and investment (eg destination management planning or moving a project to “investment ready” status), may not directly lead to additional jobs or growth in GDP. In these cases, proponents should outline how the project will provide the basis for further investment and/or growth in the future.

5.2.  Assessment process

The Tourism Demand Driver Infrastructure Program involves a targeted process and may have a number of applications for the available funding. Eligibility does not guarantee the success of a proposal.

An Assessment Panel will assess and rank all eligible applications against the criteria set out above. Additional comments on applications may be sought from interested stakeholders such as local councils, Regional Tourism Boards, Destination Melbourne, Regional Development Victoria and Parks Victoria. Applications will be ranked based on a sum of scores across all criteria. The final funding ‘cut off’ score will be determined by available funds and the quality of applications.

Tourism Victoria intends to inform applicants of a decision approximately two months after the relevant closing date for contestable applications.

6.  Supporting documents checklist

Please submit the following documents where required with your application.

All applications
□ a response to the assessment criteria set out in the program guidelines
□ completed project plan
□ cost estimates/quotes
□ letters of support from at least two other organisations that clearly define their involvement with the project or anticipated benefit from the project
□ evidence confirming funding sources (for example Local Government report/letter confirming contribution)
□ evidence showing alignment to the Tourism 2020 Strategy and Victoria’s 2020 Tourism Strategy
□ two annual reports or three years’ worth of audited financial statements
Additional information
Please also submit the following information depending on your organisation type.
Applicants with auspice
□ written advice from the auspice organisation that they have sighted and support the application.
Local Strategic and Project Planning
□ draft Project/Consultants brief.
Community infrastructure
□ planning permits, if available.
□ floor/site plans for project.
□ schematic plans for project (where available).

7.  Application and funding conditions

7.1.  Funding agreements

Successful applicants will be required to enter into a funding agreement with Tourism Victoria detailing all funding obligations and conditions. The standard terms and conditions upon which the funding is offered are available via contacting Tourism Victoria on (03) 9653 9777.

The funding agreement is a legally enforceable document that clearly defines the obligations of both parties. The funding agreement aims to protect the Government’s interests and to ensure the efficient and effective use of public money, while also ensuring that there is appropriate recognition of Commonwealth and Victorian Government support on project related publications, media releases and promotional materials.

Funding agreements must be signed by the organisation’s Chief Executive Officer (or equivalent) and will:

·  describe the purpose for which the funding must be used;

·  Set out any requirements or conditions that must be met prior to payment of a funding instalment; and

·  Outline agreed milestones and project outcomes that must be achieved before payment of a funding instalment.

Once the funding agreement has been executed, the applicant will be required to actively manage and deliver the project, and provide progress reports to Tourism Victoria. During the course of the project, Tourism Victoria may conduct site visits, as necessary.

Successful applicants must enter into a funding agreement and commence the project within six months from the date of offer of the funding. If a project does not commence within this timeframe, an application for extension will need to be submitted and will be considered by Tourism Victoria or the application will lapse.

7.2.  Payments

Payments for the TDDI Program will be made in arrears twice yearly. Applicants will be expected to meet project costs beforehand. Projects funded under the TDDI program must demonstrate that they have reached specified milestones before any payments will be made.

Payments will be made as long as:

·  The funding agreement has been signed by both parties;

·  Funding recipients provide reports as required, or otherwise demonstrates that the activity is progressing as expected;

·  Other terms and conditions of funding continue to be met.

7.3.  Promotions

Successful applicants need to acknowledge the Victorian Government’s support through the provision of funding through Tourism Demand Driver Infrastructure Program.

Promotional guidelines form a part of the Funding Agreement and include the requirement for all projects to acknowledge the Victorian Government’s support through logo presentation on any project related publications, media releases and promotional material; and/or erection of a Tourism Victoria endorsed sign at the site of infrastructure projects.