Kiama tourism sector facing 'burn out'

"The challenge the local industry is facing whilst still in peak time is not so much attracting visitation, but being able to successfully service them to ensure experiences that leave the visitor with a desire to return," the documents state.

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While visitor numbers have rebounded during periods of relaxed restrictions and December 2021 saw higher spending than in pre-pandemic years, Sally Bursell, acting tourism and events manager at Kiama Council, said there was still a need to shift mindsets when it came to domestic travel.

"Typically, intrastate and even interstate visitors are often low yielding when comparing how much they are prepared to part with on an overseas trip or, on the flipside, what an International visitor is prepared to spend whilst on holiday in Australia. So without a sway to them spending more, we will need higher numbers, and longer stays of domestic tourists to make up what we are missing out on without the International market."

A survey of Kiama tourism businesses has found that of equal importance to the sector are staffing challenges and a lack of consumer confidence. These were followed by business confidence challenges and 38 per cent reported financial concerns that would affect their ability to stay open or solvent.

President of the Kiama and District Business Chamber, Cameron McDonald said that without the government support provided during previous COVID-19 waves and isolation requirements for workers, local businesses were struggling to stay open with skeleton staffing levels.

"This time of year is really important because we do have a drop in visitation over the winter months, and a lot of our efforts are to try and increase visitation," said Mr McDonald.

To address these concerns, planning is currently underway for a one-off month of events in May.

Named REVEL in May, the program aims to attract a variety of events over the month targeted at locals and businesses. So far, 20 event organisers have put forward events.

REVEL in May replaces Kiama's New Year's Eve celebrations and aligns with emerging trends in tourism towards unique events and experiences as a drawcard for tourists in a post-pandemic environment.

This trend is acknowledged in the updated draft Kiama Tourism and Events Strategic Plan 2022-2026.

Produced in light of the COVID-19 pandemic, the plan acknowledges a loss of consumer confidence and industry fatigue, alongside the impacts of COVID regulations and border closures.

In 2019, visitors to Kiama spent $255 million, and the Plan highlights that Kiama is well placed to recover to this level of spending following a drop in 2020 and 2021.

The region's distance from Sydney along with its natural environment are positives for the region, particularly as consumers opt to travel regionally, rather than further afield, and as travellers look for distanced, outdoor activities, many of which can be done in the Kiama hinterland.

The challenge for the region and its tourism-focused businesses will be navigating how to balance the attraction of unique offerings such as events and local food and retail experiences with travellers' desire to stay away from crowds and confined spaces.

Some business have opted to offer takeaway options to travellers who would prefer to eat in at their accommodation instead of at a restaurant. However, Mr McDonald said that anecdotally more day trippers are bringing food with them, presenting a challenge for the takeaway shops and other that would normally service this segment.

"Local entrepreneurs [can] really think about what they can offer people to do not just on a food basis, but from a recreational basis, to get people into the shops in the main street."

With a number of events planned for the autumn months, the rebound of the Kiama tourism sector will depend upon changing perceptions about what is on offer in the destination, from the natural environment to the arts and culture scene.

"One of the core challenges of ours as a coastal destination, is the same as it has always been - seasonality," said Ms Bursell. "If we can support sectors such as events that are scheduled for typical off peak times of year we have the opportunity to distribute visitors over the course of the year, and demonstrate that we are not only a summertime destination, so they consider coming again at an atypical time of year."

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