The Lord Howe Island Board has formally notified the LHITA that it is no longer in a financial position to support the LHITA and is terminating all funding support for the Association.
Tourism is the economic life blood of the Island, delivering incomes to businesses, residents and their families and of course revenue to the Board.
The LHITA plays a critical role in supporting the tourism industry and promoting the Island as a premier tourist destination in a highly competitive national and international market.
The LHITA Visitor Centre at the Museum is the central hub for information to visitors and tourism businesses and is the first point of contact for enquiries including emergency, educational, biosecurity and operational-related queries.
The Board has provided financial support since the LHITA was formed in 1995 and took over operation of the Visitor Centre from the Board.
If alternative funding cannot be secured rapidly from the NSW government, the LHITA will have to consider restructuring options involving dramatic reductions in services and closure.
LHITA funding cut letters
19 October 2022
Attn: Suzie Christensen (CEO)
The LHIB,
1 Bowker Ave
Lord Howe Island NSW 2898
Dear Suzie,
Re: The LHIB annual funding for the Lord Howe Island Tourism Association
During our recent meeting in your office on Tuesday, 4th of October, 2022, you informed the LHITA that the LHIB had decided during the last LHIB meeting that it would no longer be providing funding for tourism to the LHITA. The LHITA would like to put forward the following responses for consideration by the LHIB Members:
1. The history and importance of the partnership between the LHIB and the LHITA
The LHIB and the LHITA have a long partnership history. In 1995, the Lord Howe Island Tourism Association (LHITA) was formed and the LHIB provided funding to the LHITA of $55K per year to contribute to the promotional activity of the Island. In the 1990’s, the LHIB also paid a staff member to operate the Visitor Centre which was initially in the old communications building (now the Crooked Post).
Once the Museum was completed in 2000, the VC staff member, paid by the LHIB, was then based at the Museum. Following this arrangement, the LHIB proposed that the LHITA take on the responsibility of the running of the LHI Visitor Centre. The LHIB contributed an extra $60K per year to cover rent and a full-time staff member for the running of the Visitor Centre and its services. This funding amount, which in subsequent years has been reduced to $110K and during the pandemic reduced to $40K, has not been increased during the last 27 years. The Visitor Centre plays an integral role on the Island as a central hub for communication and information between visitors, businesses and the LHIB. (The roles and responsibilities of the LHI Visitor Centre are attached with this email for your reference).
An example of the importance of this ongoing partnership is the LHITA’s current work with LHI Biosecurity to provide updated information on our official destination website in order to adequately protect Lord Howe Island from biosecurity risks. This is the first piece of information displayed when landing on the site and provides all visitors and prospective visitors with accurate and up-to-date information around biosecurity measures on the Island under the guidance and approval of LHI Biosecurity. Further, this information is distributed to our 120k+ followers across our social channels and provides clear and concise information for mitigating biosecurity risks to the Island, which wouldn’t be available without the partnership between the LHITA and the LHIB.
The Visitor Centre is more than just a service for visitors. It supports and assists with the workload of the local tourism industry helping facilitate the management of bookings, services and information about their offerings.
2. The Lord Howe Island Act 1953 – The LHIB’s Charter
The Lord Howe Island Act 1953 provides a legal framework for the LHIB’s obligations as a governing entity. Within section 5, subsection 1(g), the LHIB are obligated to ‘promote the Island as a tourist destination’ with respect to subsections ‘e’ and ‘f’ as outlined below.
5 Board’s charter
(1) The Board has the following charter –
(a) to provide directly or on behalf of other levels of government, after due consultation, adequate, equitable and appropriate services and facilities for the Island community and to ensure that those services and facilities are managed efficiently and effectively,
(b) to exercise community leadership,
(c) to exercise its powers, authorities, duties and functions in a manner that is consistent with and actively promotes the multicultural principles,
(d) to promote and to provide and plan for the needs of children,
(e) to manage, protect, restore, enhance and conserve the Island’s environment in a manner that is consistent with and promotes the principles of ecologically sustainable development set out in section 6 (2) of the Protection of the Environment Administration Act 1991,
(f) to manage, protect, restore, enhance and conserve –
(i) vacant Crown lands, and
(ii) lands reserved or dedicated under section 19 or 19A (including, in particular, the Lord Howe Island Permanent Park Preserve),in a manner that recognises the World Heritage values in respect of which the Island is inscribed on the World Heritage List referred to in the United Nations Convention Concerning the Protection of the World Cultural and Natural Heritage,
(g) subject to paragraphs (e) and (f), to promote the Island as a tourist destination,
(h) to have regard to the long term and cumulative effects of its decisions,
(i) to bear in mind that it is the custodian and trustee of public assets and to effectively account for and manage the assets for which it is responsible,
(j) to facilitate the involvement of members of the Board, members of the public, users of facilities and services and the Board’s staff in the development, improvement and co-ordination of the Board’s powers, authorities, duties and functions,
(k) to raise funds for Island community purposes by the fair imposition of charges and fees, by income earned from investments and, when appropriate, by borrowings and grants,
(l) to keep the Island community and the State government (and through it, the wider community) informed about its activities,
(m) to ensure that, in the exercise of its regulatory powers, authorities, duties and functions, it acts consistently and without bias, particularly where an activity of the Board is affected,
(n) to be a responsible employer.
I also reference section (a) highlighted above which refers to the responsibility of providing adequate services – which the funding does for the LHI tourism industry. This section also alludes to the need for genuine consultation which has not happened in this instance.
I reference section (h) highlighted above. Cutting the tourism funding will have long term effects to the Island. To our knowledge, future effects and the impact of little or no promotional activity have not been considered. An example of the loss in revenue was during the Covid period when no promotional activity and visitation was in progress.
May I also reference section (l) highlighted above. The decision to remove funding from tourism has not been either consultative or transparent in any communications.
3. The Lord Howe Island Board Financial Review Phase 1 dated 6 September 2013 conducted by Price Waterhouse Coopers (known as the PWC report) states the role of the LHIB in relation to tourism on the Island:
1.1 Background
The Lord Howe Island Board (the Board) is a statutory authority of the NSW Government and is responsible for the management of Lord Howe Island. It provides essential community services and facilities, along with protecting the environment and World Heritage values of the Island, and promoting the Island as a tourist destination. The Board also is responsible for the Island’s trade, financial affairs and the welfare of its residents.
Lord Howe Island was placed on the World Heritage List in 1982 in recognition of its natural beauty and its biodiversity values. The Island has a population of about 350 people and is situated 760 kilometres north east of Sydney. It is 1,455 hectares in area, 11 kilometres long and between 0.3 and 2 kilometres wide. Tourism is the major industry and source of income on the Island. Approximately 16,000 people visit the Island each year, and there are currently 18 lodge (accommodation) operators. To conserve the culture and environment of the Island, tourist accommodation is capped at 400 tourists.1
2.2 Key activities of the LHIB
3 Other discretionary activities of the board
The Board operates a trading enterprise, being a liquor distribution outlet and generates a profit from this activity to fund other activities on the Island. The Board regulates and controls tourism operations, and provides support for the Lord Howe Island Tourism Association Inc., which is responsible for marketing and promoting Island tourism. The Board also employs staff at its Visitor Information Centre.
This report further outlines the role of the LHIB and how the structure of the LHIB includes tourism and the Visitor Centre.
4. Tourism’s role as the major economic driver to the Island economy.
In the LHIB Budget Report Summary 20/21, which is available online, tourism is listed as having a ‘nil’ income whilst the LHITA contribution is listed as an expenditure. With tourism being outlined as the major economic driver for the Island economy in numerous reports including the most recent DMP 2017, it is confusing that tourism income is not reflected within the budget summary in areas such as the environmental levy within the airfare structure, the bed tax levy and other government charges relating to tourist accommodation that are directly derived from tourism dollars.
An amount from every airfare is allocated to the environment levy and this amount is largely contributed by visitors to the Island.
5. The impact of the LHIB funding cut on services to visitors and the industry.
The impact that the LHIB funding cut will have to both visitors and the industry is significant.
The Visitor Centre has experienced challenges and opportunities linked with the changes that local development, as well as global tourism trends, have brought to Lord Howe Island in recent years. The Visitor Centre team must therefore provide world-class service and manage communications, expectations, stakeholders and promotions from a remote destination with limited resources in a way that lives up to industry expectations. Today, the Visitor Centre is a central hub for information to visitors and businesses alike and is the first point of contact for most enquiries including emergency, educational and operational-related queries.
An attachment outlines in more depth, the roles and responsibilities of the Visitor Centre today. All of the services listed in the attachment will need to be provided by someone other than the LHITA should funding no longer be provided by the LHIB. These services are imperative for visitor experience, satisfaction and the Lord Howe Island ‘brand’.
Please do not hesitate to contact myself or the LHITA Committee to discuss further.
Kindest regards,
Trina Shepherd | Executive Officer on behalf of the LHITA Committee
LORD HOWE ISLAND TOURISM
Record Number: ED23/1043
Enquiries: Suzie Christensen
10 February 2023
Andrea Young, President
LHI Tourism Association
C/O Post Office
LORD HOWE ISLAND NSW 2898
Cc: Trina Shepard
trina@lordhoweisland.info
Dear Andrea
RE: LHIB contribution to LHITA
As you are aware the Board has been carefully reviewing its expenditure and financial position, including its contribution to the Lord Howe Island Tourism Association. (LHITA). Unfortunately, a decision was made at the December 2022 Board meeting not to continue to provide funding to LHITA in the next financial year (2023/2024).
To enable a transition to a new business model, a one-off grant of $55,000 has been approved. If the LHITA would like to accept this grant, please send an invoice at your convenience.
The Board remains committed to its support for the LHITA through my participation in Committee meetings and other in-kind advice and support.
If you have any queries regarding this matter, please feel free to contact me on 6563 2066.
Yours sincerely
Suzie Christensen
Chief Executive Officer
14 February 2023
Attn: Suzie Christensen (CEO)
The LHIB
1 Bowker Ave
Lord Howe Island NSW 2898
Dear Suzie,
Re: Record Number: ED23/1043 LHIB contribution to the LHITA
I refer to your letter – record number ED23/1043 as stated above. Firstly, thank you for your financial contribution to the LHITA throughout this financial year considering the uncertainty around funding and resources.
On receipt of your letter referenced above, the LHITA Committee seeks to clarify whether the LHIB is cutting ALL funding ongoing to the LHITA for services to support the Visitor Centre and the promotion of Tourism. After outside conversations with LHIB members, the LHITA Committee believed the funding was being reduced by 50% in the next financial year (2023/24) and consecutive years here after.
The LHITA committee refer to the Lord Howe Island Act 1953 – The LHIB’s Charter which provides a legal framework for the LHIB’s obligations as the governing entity. (Please refer to section 5, subsection 1(a)(e)(f)(h)(l)).
The LHITA request this matter is taken to the next LHIB meeting on the 28th February for further consideration and clarification. I have re-attached my letter dated 19 October 2022, reference: ‘The LHIB annual funding for the Lord Howe Island Tourism Association’ for further background information relating to this matter.
Please don’t hesitate to contact me if you require any further documentation to support this case.
Kindest regards,
Trina Shepherd | Executive Officer
on behalf of the LHITA Committee
LORD HOWE ISLAND TOURISM
Phone: 0410 832 613
This article appeared in The Lord Howe Island Signal, 28 February 2023.
