Contemporary Destination Governance: A Case Study

Approach
Tourism and Events Queensland
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 Case 13

TOURISM AND EVENTS

QUEENSLAND

Abstract: Tourism is an important part of the Queensland economy, con-

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tributing 7.3% to the state’s GDP, and alongside agriculture, resources,

and construction, is part of the state’s “four-pillar economy.” Tourism
and Events Queensland is the state’s peak tourism organization, a quasi-
governmental body with responsibility for destination marketing and
management, and more recently, organizing major events including the
2018 Commonwealth Games. This case explores the roles, responsibil-
ities, and governance challenges of Tourism and Events Queensland,
providing insights to regional cooperation, destination marketing, and
policy and planning. Keywords: Queensland, regional tourism, marketing,
policy, planning

INTRODUCTION

This case reveals the changing organizational structure and governance

of the tourism sector in Queensland, Australia. As in many countries, the
governance of tourism in Queensland is dynamic and subject to a number
of diverse and often contradictory trends. For example, in Queensland there
is both a move toward the decentralization of power from the state to
the regional level and as well the merging of the government promotion
organizations responsible for events and tourism into one. This case dis-
cusses the roles and responsibilities of the regional tourism organizations

Contemporary Destination Governance: A Case Study Approach

Bridging Tourism Theory and Practice, Volume 6, 167 179
Copyright r 2015 by Emerald Group Publishing Limited
All rights of reproduction in any form reserved
ISSN: 2042-1443/doi:10.1108/S2042-144320140000006034
 168 Contemporary Destination Governance

(RTOs) and their relationship with Tourism and Events Queensland

(TEQ). One important implication for tourism governance suggested by
this case is the need for integrated planning across all levels of tourism in
Queensland.

DESTINATION GOVERNANCE AT A STATE LEVEL

The concept of governance initially arose in the context of the “hollowing

out” of the state in the United Kingdom as part of a neoliberal agenda to
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reduce the authority of the central government (Rhodes, 1997). Similar

processes, although not necessarily driven by the same agenda, are found in
Spain’s decentralization process from the 1970s (Ivars Baidal, 2004) and
more recently in Turkey (Yuksel, Bramwell, & Yuksel, 2005). The result is a
focus on regional areas as the appropriate unit of analysis for tourism
policy, planning, and marketing, with a consequent requirement for the
implementation of a governance system for tourism in these regions.
There have been some discussions of this new focus on regional areas as
appropriate for tourism, rather than state or national boundaries in Europe
(Prokkola, 2007), as well as the relationship between national and state
levels of tourism administration in Australia (Dredge & Jenkins, 2003).
There is little discussion of how these movements affect the dynamics of
destination governance, however. One theoretical approach to the examina-
tion of changes in the structure of tourism organization is that pioneered by
Chandler (1962), who argued that “structure followed strategy.” This means
that if a company or destination changes its strategy, then it may also need
to change its organizational structure. In terms of TEQ, its strategy changed
from promotion of the state as a whole in the early 1990s to one of promo-
tion of individual destinations such as the Gold Coast by the end of that
decade. In the 2000s the Queensland government, in response to changing
markets and tastes, began to engage with new product development and
supply-side policy interventions in training and new technology. Most
recently Queensland was successful in its bid for the 2018 Commonwealth
Games to be held on the Gold Coast.
These changes in tourism demand and strategy have required reconsi-
deration of the governance arrangements. In response to winning the 2018
Commonwealth Games, two key tourism organizations, Queensland Events
and Tourism Queensland, have been combined into one organization.
For regional tourism, they imply shifts of power that places additional
 Tourism and Events Queensland 169

requirements on the skills of RTO boards and managers. While some

larger and well-funded RTOs have been able to adapt to these changing
conditions, other smaller ones are struggling, leading to moves to combine
them into more competitive entities. Overall, there is an ongoing
realignment of roles and responsibilities that form the focus of this case
study.

Facts about the Destination

Queensland is a young, expansive, and sparsely settled state in the north of

the Australian continent, which can be considered to be geographically,
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socioeconomically, and bio-climatically organized into a set of reasonably

distinct regions. The capital, Brisbane, in the south of the state, is approxi-
mately 2,400 km from the tip of Cape York in the north and approximately
1,600 km from the border with the South Australia and the Northern
Territory in the west. In 1824 a penal colony was developed in the southeast
corner of Queensland in the vicinity of what is now the capital of
Queensland, Brisbane ([ABS], 2001). Despite the distances involved, the
majority of the state was settled quickly. For instance, the town of
Charleville in Western Queensland, located some 750 km from Brisbane,
was established in 1887, only 40 years after the first settlement, and as a
result, the material culture and heritage across the state is somewhat homo-
geneous (ABS, 2001). The estimated resident population of Queensland in
2012 was 4.6 million, or approximately 20% of the population of Australia.
The area of Queensland is 1,730,648 km2, which is more than five-and-a-
half times the area of the United Kingdom. Most people live in the cities in
the southeast of Queensland, with smaller towns making up regional centers
(ABS, 2001). Queensland has a varied climate and several distinct biore-
gions. A narrow, well-watered coastal strip is bounded in the west by the
Great Dividing Range, Australia’s largest mountain range and the third
longest in the world. The south of the state has a temperate climate, while
the north comprises tropical savannah with some coastal rainforest. The
Great Barrier Reef, the world’s largest coral reef system, follows the eastern
coastline.
The combination of a geographically large state with a small population
has led to a strong regional focus for economic and social development.
Along the coastline several regional cities, which are the hubs for transporta-
tion and services, have been established, with smaller towns in the sparsely
settled area west of the Great Dividing Range. This regionalism is reinforced
by the number of distinct biogeographical regions across the state. The town
 170 Contemporary Destination Governance

of Cairns in the north has a wet tropical climate, while Townsville, 400 km
to the south, has a dry tropical climate. Overall, the combination of distinct
economic service hubs and biogeographical regions, along with a relatively
pristine natural environment with unique features, has led to the develop-
ment of tourism as a major sector of the economy in Queensland, as well as
the organization of this sector into a regional pattern.

Historical Background and Development

Tourism in Queensland has developed over a period of approximately 130

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years, with the first leisure and recreation activities occurring at calm water
bayside locations around Brisbane. By 1880 a small tourism sector had
developed around Southport at the northern end of what is today the Gold
Coast. In the first half of the 20th century growth in the population of the
state and increasing travel from interstate along the developing main road
network led to an increase in the number of tourists traveling to regional
areas. During this time the Gold Coast established itself as the main leisure
destination in Australia. After World War II and the introduction of
cheaper automobiles and affordable air travel, tourist numbers increased
and the international tourism market developed. Today, tourism in
Queensland contributes $19.2 billion or 7.3% directly and indirectly to the
gross state product (Pambudi, Van Ho, Spurr, Forsyth, Dwyer, & Hoque,
2009). Tourism-related industries employ approximately 122,000
Queenslanders directly, or 222,700 in total, thus accounting for 10.34% of
the workforce (ABS, 2001).
Since the late 1990s Queensland has experienced increasing competition
for international visits from emerging destinations such as China, India,
and Southeast Asia, and domestically from other Australian states. In 2006
a tourism strategy was developed for Queensland to address issues of slower
growth from the domestic market and increasing competition for sun and
sand tourism. There is an increasing focus on the growing Asian economies.
Most tourism growth to 2020 is expected from international tourists, parti-
cularly from new tourism markets such as China (Queensland Government,
2006). To take advantage of the opportunities presented by growing
inbound visits, the industry has adopted a strategic approach to achieving
long-term sustainability through preserving existing markets, increasing
tourist expenditure, and enhancing product and industry development. The
targeted outcome of this strategic approach is growth above that which
would otherwise occur, as shown in Figure 1.
 Tourism and Events Queensland 171

22

20

18

16
Actual
14 Forecast
Target
12
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1999

2000

2001

2002

2003

2004

2005

2005/06

2006/07

2007/08

2008/09

2009/10

2010/11

2011/12

2012/13

2013/14

2014/15

2015/16
Figure 1. Queensland Tourist Expenditure

Products, Services, and Market Situation

In some ways, Queensland is an ideal case for tourism regionalization. Its

geographical extent, distinct biological ecosystems and nodal pattern of
economic and social development have led to the establishment of a series
of RTOs throughout the state. However, government decisionmaking
related to the marketing of tourism was, until recently, centralized in TEQ,
a statutory body responsible by law for the marketing of Queensland as a
destination. Since 1997 Queensland has been marketed as a series of regions
(essentially destinations) with consequent changes in the relationships
between TEQ and RTOs from one of hierarchical control to one involving
the sharing of responsibility for policy and planning.
The regional differentiation in the biological and geographical environ-
ment, as well as the strong regional orientation of the tourism stakeholders,
including tourism operators, local government, and community, has led
TEQ, the state’s destination marketing organization, to develop a strategic
marketing approach that is based on destinations as distinctive products or
brands. Prior to 1995 TEQ, formerly the Queensland Tourism and Travel
Corporation, marketed Queensland as one, whole-of-state destination. In
1995 the opening of a new international airport in Cairns, North
Queensland, which changed consumer buying behaviors and sophisticated
competitor promotional campaigns, led to a new approach to Queensland’s
tourism marketing. After a review of its marketing strategy, TEQ shifted
 172 Contemporary Destination Governance

from the promotion of Queensland with one destination image to the devel-
opment of a portfolio of destination images or brands. This strategy
focused on promoting Queensland to consumers as five regions: Gold
Coast, Brisbane, Sunshine Coast, the Whitsundays, and Tropical North
Queensland. The location of these five destinations is shown in Figure 2.
By branding Queensland’s five developed destinations, TEQ undertook a
sophisticated consumer goods approach to tourism marketing, the first time
such an approach had been applied to regional tourism marketing in
Australia. The process involved extensive market research and industry
consultation. All organizations in each destination undertaking marketing
were involved, including the RTOs, TEQ, Tourism Australia—formerly the
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Australian Tourism Commission, and industry operators (Laws, Scott, &

Parfitt, 2002). Later, from around 1998, TEQ expanded this strategic
approach to include planning and development functions, rather than just
marketing. In 2003 a strategic plan, called a destination management plan
(DMP), was developed for every destination. Each DMP outlined the

Figure 2. Locating Queensland

 Tourism and Events Queensland 173

vision, goals, and strategies for the destination over the next three years.
The destination management approach recognizes that Queensland’s
destinations are all different. DMPs have now been established for
both developed and developing destinations. A DMP illustrates how the
destination can capitalize on these differences and ensures alignment
between development and marketing. DMPs are updated regularly and also
undergo a complete strategy review every three to five years to maintain
relevance.
The situation for the tourism market in Australia and Queensland varies
by market sector, with the domestic market experiencing little growth. In
comparison, the international market has experienced significant growth,
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driven by the development of the economies of countries in the region.

Several factors constrain domestic tourism in Australia. For instance, the
recent global financial crisis, while not as severe in Australia as in some
other countries, reduced consumer confidence and spending. Additionally,
a favorable exchange rate, affordable air travel, and preference for inter-
national travel continue to lure Australians offshore. Australians took 66
million domestic overnight trips in the year ending March 2010, down 3%
over the previous year’s figure. New South Wales receives the majority of
domestic tourists (34%), followed by Victoria (24%), and then Queensland
(24%). Expenditure by domestic tourists in Queensland was approximately
$10.5 billion (Tourism Queensland, 2012c). There were 5.2 million interna-
tional tourists to Australia in the year ending March 2012, an increase of
3% over the previous year’s figure. Queensland’s total international tourist
numbers were down 2% to 1.98 million over the same period (Tourism
Queensland, 2012c). The major international markets for Queensland are
New Zealand, China, Europe, and the United Kingdom, the United States
of America, and Japan. Overall, the market situation in Queensland
remains somewhat depressed.
The various tourism regions of Queensland each experience a slightly dif-
ferent pattern from the overall Queensland market situation. For example,
the number of domestic tourists to the Gold Coast declined 2% to
3,148,000 in the year ending March 2010, while international tourists
increased by 5%, resulting in no overall change in tourist numbers
(Tourism Queensland, 2012b). In comparison, Tropical North Queensland
saw an increase of 4% in domestic tourists and a decline of 9% in interna-
tional tourists, again with no overall change in tourist numbers. These pat-
terns indicate that, at least to some extent, these two destinations are
differentiated and experience distinct tourist trends.
 174 Contemporary Destination Governance

Governance

The Commonwealth of Australia was created in 1901, with Queensland

becoming part of a federation of six states and two territories. The
Queensland State Government, like that of Australia, is modeled on the
British Westminster system. The Queensland State Parliament takes respon-
sibility for domestic affairs and shares mutual responsibilities with the
Commonwealth Government. The Queensland Local Government Act 2009
allows cities, towns, and shires to provide a system of government in their
local areas. Thus, government is exercised in the three jurisdictions of
federal, state, and local (ABS, 2001, p. 6). The organization of tourism
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in Australia and in Queensland is built around a core base of industry

operators, local government authorities, and regional and local tourism
organizations. At the Queensland regional level, RTOs provide a focus for
the coordination of regional stakeholders, including industry, local govern-
ment, and the community.
TEQ is the government agency responsible for guiding tourism develop-
ment and marketing at a state level, while at the national level, Tourism
Australia coordinates the marketing activities of states in the international
arena. The role of government policy development for the tourism sector,
as well as oversight of TEQ, is performed by a department of the state
government currently known as Tourism, Fair Trading and Wine Industry
Development. Similarly, federal government policy development and over-
sight of Tourism Australia is undertaken by the Department of Industry,
Tourism and Resources. Thus, several organizations are involved in the
coordination of tourism in Queensland, each with complementary roles and
responsibilities. The framework below generally outlines the structure and
function of the key coordinating agencies.
TEQ was established as a statutory body under Tourism Queensland
Act 1979 that empowers it to undertake the marketing and development of
tourism. As of August 2013 the board of directors comprised 13 industry
representatives from around the state and a representative from the
Queensland Department of Tourism, Major Events, Small Business and the
Commonwealth Games. The chair and board members are appointed by,
and responsible to, the Minister for Tourism, Major Events, Small Business
and the Commonwealth Games. Working with senior management, the
board of directors is responsible for TEQ’s overall performance. It approves
goals and directions, strategic plans and performance targets. The board of
directors ensures that appropriate policies, procedures, and systems are in
place to optimize performance, maintain high standards of ethical behavior,
and provide leadership to Queensland’s tourism industry (Figure 3).
 Tourism and Events Queensland 175
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Figure 3. Planning for Tourism in Queensland

Because tourism is a complex and multisectoral activity, the ability to

achieve coordination among the organizations involved in the various
aspects of tourism and between the government and private sector enter-
prises is a major consideration. For effective governance, coordination,
communication, and an understanding of stakeholders and their networks
within a destination are critical (Scott, Baggio, & Cooper, 2008a). This
understanding is made more difficult by the global trends impacting on des-
tinations. These global changes are confronting the model of destination
governance that is currently hierarchical and in many countries directed
from a central agency. This centralist and hierarchical approach is less
 176 Contemporary Destination Governance

flexible and therefore less able to respond to these challenges. TEQ is there-
fore moving to a regional planning model.
The development of this regional planning model indicates an attempt to
improve effective coordination within the Queensland tourism industry.
This is based on a system of RTOs formally established around 1980. These
organizations are in turn based on heterogeneous destinations recognized by
the differentiation strategy of TEQ. In general, this approach is reflected in
the concept “structure follows strategy”, where the differentiated destination
strategy leads to an organizational structure that suits that strategy (Miller,
1986). In the case of Queensland’s tourism regions, the appropriate govern-
ance (or coordination) structure under a regional branding strategy differs
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from that under a whole-of-state strategy. One implication is that in

Queensland the networks, roles, and responsibilities of regional tourism
coordinating organizations are also differentiated. This is most noticeable in
the two largest and most sophisticated regions in Queensland, the Gold
Coast and Tropical North Queensland. Here, the industry is well developed,
comparatively well funded, and able to undertake core roles such as promo-
tion and marketing independent of TEQ. This is further discussed in the
case study on the Gold Coast.
The second implication of this regional approach is the need for a clear
understanding of the roles and relationships of key industry stakeholders
as part of a coordinated system within the Queensland tourism industry.
The various RTOs differ in their power and influence. Significant differ-
ences also exist in the aggregate skills and influence of key organizations
in regional networks. The roles and responsibilities required of RTOs
vary between large and small regions. In addition, indications exist that
the roles and responsibilities do not match skills and resources available.
Finally, there is a need to examine integration across organizations for
specific functions. Some problems remain. From a structural perspective,
RTOs are the “regional gatekeepers.” At the same time many of the ser-
vices of TEQ are provided through them. However, this means that the
role of TEQ remains unclear for key stakeholders in regional areas.
Further, the devolution of power to regions has led to a reappraisal of
the roles of RTOs and TEQ and their relationship in all regions. The
change in the form of the governance relationship between TEQ and the
RTOs of developed regions is toward greater interorganizational colla-
boration. This collaboration should be based on recognition of equal sta-
tus where different roles and functions are allocated on the basis of skills
and resources.
 Tourism and Events Queensland 177

Two recent tourism-related developments have affected the role and gov-
ernance of TEQ. The first is the development of the National Long-Term
Tourism Strategy in late 2009 and an updated strategy, now referred to as
Tourism 2020, in December 2011. These provide a policy framework that is
increasingly focused on supply-side issues such as accommodation and avia-
tion capacity, labor supply and skills, and quality and productivity. The
aim of Tourism 2020 is to develop a coordinated national approach to
development of tourism. This has involved extensive industry consultation
and the establishment of a number of industry government working
groups. Dredge and Jenkins (2012, p. 246) argue that these working groups
are “blurring of relationships between the state and business interests” and
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that their membership is limited to government, business, and peak interest

groups. This is leading to nontransparent policy spaces and decreasing
clarity about who is writing policy. Further, the scope of policy is narrow
and focused on industry issues. Tourism faces similar issues at a state level
in Queensland. In addition, there is a lack of clarity about the allocation of
industry development and policy roles between TEQ and the Department
of Tourism, Major Events, Small Business and the Commonwealth Games.
While TEQ has a strong relationship with larger tourism businesses that are
likely to be involved in policy consultations, the State Government
Department of Tourism is responsible for policy development. These bodies
therefore need to work closely together but there are personal and organiza-
tional rivalries that interfere.
A second recent issue that has affected organization and governance of
tourism in Queensland is the successful bid for the 2018 Commonwealth
Games Corporation. It will be held on the Gold Coast. This initiative has
focused attention on the overlap between events and tourism in attracting
tourists to Queensland and has been reflected in the creation in 2012 of
TEQ from the two separate organizations, the Queensland Events
Corporation and Tourism Queensland. This organization provides the
opportunity for synergies in promotion and marketing, but also for a loss
of focus.

CONCLUSION

Tourism in Queensland is seen as an important part of the state’s economy

(Queensland Government, 2006). The location of Queensland within an
 178 Contemporary Destination Governance

English-speaking Western country with significant natural resources and

unique attractions suggests that international tourist numbers will continue
to grow. However, the tourism sector requires further investment and
upgrading in the quality of its hotels and attractions. Planning for these
improvements has been increasingly regionalized, consistent with the desti-
nation management philosophy adopted by TEQ.
A new collaborative planning approach has been introduced across
Queensland destinations led by the state’s RTOs. Action groups were
formed in each of Queensland’s destinations with representations from key
stakeholders, including state and local governments, TEQ, the federal gov-
ernment, and the tourism industry. These groups are responsible for imple-
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menting DMPs, including the preparation of regional tourism investment

and infrastructure plans and action plans. These plans inform state and
local government planning processes. As shown in Figure 4, organizational
dynamics indicate a systemic approach to tourism development is being
implemented.

Figure 4. Government Organizations Involved in Tourism

 Tourism and Events Queensland 179

QUESTIONS

1. Is the argument that “structure follows strategy” a convincing basis

for changing the governance arrangements for tourism planning and
marketing in Queensland?
2. Discuss some implications for the day-to-day operations of the TEQ
marketing department as a result of the changes to promote Queensland
as a portfolio of destinations.
3. Who should lead the planning process for tourism on the Gold Coast,
one of the main tourism regions in Queensland?
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