Felicia Mariani, Chief Executive of Victoria Tourism Industry Council

The challenges capital cities will face in a post-pandemic environment will require a new approach to tourism, with the recovery relying heavily on domestic tourism.

Both Melbourne and Sydney have unique hurdles to overcome in the next 12 -18 months as the key drivers for tourism performance are no longer possible during this time.

Melbourne as a tourism destination has relied heavily on three main features; its attraction as an international destination, the interest created from major events – sporting, cultural and live performance – as well as its appeal as an exciting destination for hosting business events. These factors have been in Melbourne’s DNA for decades and our tourism strategy for Melbourne has leaned on these to fuel its growth.

We will need to reframe the tourism strategy for Melbourne in the coming weeks and months if we are going to be successful in attracting a domestic audience who, by all current analysis, will be attracted to wide open spaces; clean, green nature-based offerings; and health and wellness experiences.

To illustrate this, recent research conducted by Deloitte Access Economics provided insights into the challenges ahead for both Melbourne and Sydney in planning a pathway to recovery.

Tourists spent roughly $32 billion in Victoria by the end of 2019. Of that amount, nearly two thirds - or $20 billion - was spent by visitors in Melbourne. 40% of that $20 billion is spent by international visitors and 32% is from interstate, meaning that over 70% of Melbourne’s tourism revenue comes from outside of Victoria. By contrast, just 20% of regional Victoria’s tourism revenue comes from outside of the state. That means Melbourne faces a greater challenge than regional Victoria in redirecting travel spend from Victorians.

With the absence of the major draw cards that have attracted interstate markets to visit Melbourne (major sporting, cultural and business events), we need to rethink and reposition how we present our city on the national stage. Innovation and collaboration will be vital components to this task.

Historically, Melbourne has always led the way with innovative use of our spaces as a way to create new dimensions to our brand offering. We were the first city to open our laneways as an extension of our enviable dining options, which has since been copied by most capital cities across Australia.

Rooftop bars were another first for Melbourne, taking our vibrant nightlife to the skyline and positioning Melbourne again as leaders in reimagining our city offering.

Let’s take to heart the expression to….Never waste a good crisis….and use this time to revisit yet again how we bring creative use to our city spaces in ways that will set Melbourne ahead of the pack.

As part of our response to government on steps that can put Victoria’s tourism industry on the road to recovery, the Victorian Tourism Industry Council (VTIC) has formed a Visitor Economy Recovery Taskforce composed of some of Victoria’s brightest tourism leaders. As part of the work of this group, it was noted that the City of Melbourne has the chance to yet again position its innovation by encouraging creative use of city spaces to present our city in a new and engaging dimension.

Throughout this global pandemic, we’ve watched communities finding beautiful ways to connect in isolation and to put their creative personalities on show to the world. Think operas being sung on rooftops and Juliet balconies across Italy.

There’s an opportunity to make this a feature of Melbourne’s landscape by considering how we might distribute temporary event licenses or permits, allowing creative spaces to emerge that can engage locals and visitors alike in an immersive capital city experience like no other. Whether this might be impromptu areas for live entertainment, or activating spaces in different ways to help businesses operate more viably during this period of restrictions, the limitations of this crisis can give way to another exciting new dimension for Melbourne.

This would all need to be thought through carefully and must remain true to the brand of our amazing city. But in looking to support tourism in Melbourne, we can embrace some of the most emotive moments, images, and “new normal” practices of this pandemic, and bring them to life on the Melbourne streetscape. This approach will leverage our already entrenched position as a thought leader in reimagining our city spaces.

This opinion paper is part of the City of the Future event 2, exploring focus area 1: Current Business

Problem statement: How might we enable existing industries and businesses to transform and stay viable?