Future Directions
Background
- The tourism and events industries were aligned in a single industry association some 10 years ago to create one voice for the sector. VTIC was established as the peak tourism industry body VTI Ltd (trading as VTIC) that would work closely with the peak general industry body, VCCI. This relationship has been in place since the inception and is structured around an Agreement for the provision of operational and corporate services.
- This Agreement underpins the operating relationship between VCCI and VTIC and is due to expire in late 2020. VTIC has been seeking a pathway forward with VCCI since late 2019.
- Victorian Tourism Industry Limited (VTIC) is a company Limited by Guarantee with its own Board of Directors and constitution. VTIC is a membership organisation owned by the members. VTIC members are the members of VTI Ltd and services are delivered by VCCI.
- The current structure raises issues around governance, effective control, financial management and Not-for-Profit status for the Board of VTIC.
- The current contractual arrangements between VTIC and VCCI are somewhat of a ‘half-way house’ where VTIC is neither part of VCCI nor independent. This creates challenges for VTIC staff as at times the lines of communication and delegation can be, and have been, blurred.
- Discussions have been held between VCCI and VTIC to develop a new working relationship and to create a more equitable and workable arrangement. However, it has now become evident that there is no option for a new agreement or extension of the current arrangements.
Pathways Forward
The following options outline the structure by which VTIC can continue to deliver the current membership services. This includes the components of membership currently included in the membership packages such as Workplace Relations Helpline, Training, Advocacy etc.
Option #1
VTIC to be disbanded and tourism membership and advocacy services to be delivered via another broader business Industry body. (VCCI or other business membership organisation).
This option involves the winding up of VTIC as a separate entity and the membership to transition to another membership organisation that would provide membership services for tourism alongside their existing offering.
This option would require the wind up of the VTIC Board and a fully independent voice for tourism.
Pros:
– Builds on the strength and systems of a larger organisation
– Reduced risk of financial challenges
– Advocacy leverage from larger organisation
– Shared resources
– Access to existing member servicing systems e.g. training packages, Workplace Relations Helpline
Cons:
– Loss of VTIC brand and membership
– No Board or membership representation with effective control of assets/work
– No singularly independent voice for the tourism and events sector
– Member confusion with the other organisation’s existing membership
– Conflicts of opinion over policy positions
– Lack of leadership dedicated to the tourism sector
– Future direction, leadership, and resources at the mercy of a third party
Option #2
VTIC to Operate with an independent Board and CEO with some services outsourced
This option involves VTIC remaining as a separate entity with its own membership, independent Board and CEO. Under this model, VTIC would have a number of sub-contracts with service provides (VCCI and/or others) that would deliver the majority of the VTIC services such as membership support, media, communications and advocacy. This option would be more in line with the current arrangements whereby VCCI delivers designated services on behalf of VTIC.
Pros:
– Membership retains control of industry voice and direction
– Member funds are retained in an organisation owned by the membership and reinvested in Industry’s future
– Ability to respond to tourism-related issues quickly and effectively
– Maintains an independent Board
– Clear tourism and events messaging without cross over from other sectors
– Improve the profile of tourism and events sector
– An independent team working directory for tourism businesses
– Ability to draw experience and insight from other organisations
– Contract management reflects activity and cost to supply
Cons:
– Contractual issues or potential reliance with sub-contractors
– Process issues with third parties
– Higher reliance on VTIC CEO
– Future sustainability during extended or repeated crisis
– Long term fixed costs with subcontracts
Option #3
VTIC to operate as a fully self-sufficient membership organisation
This option involves VTIC remaining as a separate entity with its own membership, independent Board, CEO and the majority of staff. Under this model, VTIC would then deliver the majority of services such as membership support, media, communications and advocacy. There may be a small number of outsourced services such as an ‘employment advice line’.
Pros:
– Membership retains control of industry voice and direction
– Member funds are retained in an organisation owned by the membership
– Ability to respond to tourism-related issues quickly and effectively
– Maintains an independent Board
– Clear messaging without cross over from other sectors
– Improve the profile of tourism and events sector
– An independent team working directly for Victorian tourism businesses
– Clear control of costs without large third-party contracts
– Freedom to align with other industry advocates as the need arises
Cons:
– Higher financial independence and risk
– Higher reliance on VTIC CEO, Board and Staff
– Higher risk on membership and independent directors’ responsibilities
– Future sustainability during extended or repeated crisis
– Responsibility on directors for employment and staffing
See table below for a full summary of the options outlined above and the link to member survey…..
