Tourism Demand Driver Infrastructure Program

Application GuidelinesDriver Infrastructure Program

Application Guidelines

  1. Overview
  2. Tourism in Victoria

Tourism is an important industry for Victoria, contributing $21.7 billion (6.0 per cent) towards the Gross State Product and employing 210,400 people (directly and indirectly)[1].

Victoria’s Visitor Economy Strategy provides a whole-of-government 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 2020Strategy.

Victoria’s aim is to grow visitor expenditure to $36.5 billion by 2024-25. Reaching this goal would have a significant impact on the Victorian economy.

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. The Department of Economic Development, Jobs, Transport and Resources (DEDJTR) 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 mayalso 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 TourismDemand Driver Infrastructure Program.

  1. Description and objectives of program
  2. 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 Visitor Economy Strategy objectives.

Victoria has approximately $3.6 million over 2016/17 and 2017/18 to allocate towards projects that are seen to contribute to the State’s tourism industry, the Visitor Economy Strategy and the Commonwealth Tourism2020 Strategy. Funds will be allocated on a contestable basis.

2.2.Who can apply?

The TDDIfunding is available to tourism related businesses or investors, local governments and government bodies, 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.

  1. What types of projects can be funded?
  2. Eligible projects

Funded projects should create and encourage visitation to a destination and 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-use 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 programs 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?

TheTourism Demand Driver InfrastructureProgram 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.
  1. 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 DEDJTR or Regional Development 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 DEDJTR 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.

  1. Assessment
  2. 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 DEDJTR (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 Strategies; 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. Claims regarding economic benefits should include, at a minimum, direct revenue and full time equivalent employment generated as a result of the investment after three months, twelve months and three years of operations.

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 criteriaset 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.

DEDJTR intends to inform applicants of a decision within 2 months after the relevant closing date for contestable applications. Contracts are expected to be finalised one to two months after successful projects are announced.

  1. 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 theTourism 2020 Strategy and theVictorian Visitor Economy 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).
  1. Application and funding conditions
  2. Funding agreements

Successful applicants will be required to enter into a funding agreement with DEDJTR detailing all funding obligations and conditions.

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 DEDJTR. During the course of the project, DEDJTR 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 DEDJTR or the application will lapse.

7.2.Payments

Payments for the TDDI Program will be made in arrears twice yearly. Applicantswill 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.
  • Promotions

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

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

Successful applicants may be required to contribute information on project outcomes for use in program evaluation reviews and/or DEDJTR marketing materials.

7.4.Privacy

Any personal information about you or a third party in your application will be collected by DEDJTR for the purpose of funding administration. This information may be provided to other Government bodies for the purposes of assessing your application. If you intend to include personal information about third parties in your application, please ensure that they are aware of the contents of this privacy statement.

Any personal information about you or a third party in your correspondence will be collected, held, managed, used, disclosed or transferred in accordance with the provisions of the Information Privacy Act 2000 (Vic) and other applicable laws.

DEDJTR is committed to protecting the privacy of personal information. You can find the DEDJTR Privacy Policy online at Click on the Privacy Statement link at the bottom of the page and then click on the Department’s Privacy Policy. Enquiries about access to information about you held by DEDJTR should be directed to the Department’s Privacy Unit by phone (03) 9665 9535 or email .

  1. Additional information and useful resources

Below is a range of resources and publication that may be useful in planning for and delivering activities:

Tourism publications

Commonwealth Government Tourism 2020:

Visitor Economy Strategy

Research Statistics:

Environmentally sustainable design

Infrastructure proposals are encouraged to incorporate Environmentally Sustainable Design initiatives into project designs.

Universal design

Universal design is a philosophy that encourages building development beyond what is required by the Disability Standards for Access to premises. The intent of universal design is to create environments to be usable by all people, to the greatest extent possible.

Urban Design Charter

The Urban Design Charter is a commitment by the Victorian Government and other signatories to make cities and towns more liveable through good urban design.

The Burra Charter

The Burra Charter: The Australian International Council on Monumental Sites (ICOMOS) Charter for Places of Cultural Significance (1999) provides guidance for the conservation and management of places of cultural significance and is based on the knowledge and experience of Australia ICOMOS members.

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[1]2014-15 State Tourism Satellite Accounts, Tourism Research Australia, Canberra