Tourism Investment Opportunities of Significance in National Parks. Guidelines

Transcription

1 Tourism Investment Opportunities of Significance in National Parks Guidelines

2 Published by the Victorian Government Department of Sustainability and Environment Melbourne April The State of Victoria Department of Sustainability and Environment 2012 This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act Authorised by the Victorian Government, 8 Nicholson Street, East Melbourne. ISBN (online) For more information contact the DSE Customer Service Centre Disclaimer This publication may be of assistance to you but the State of Victoria and its employees do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication. Accessibility If you would like to receive this publication in an accessible format, such as large print or audio, please telephone , or customer.service@dse.vic.gov.au Deaf, hearing impaired or speech impaired? Call us via the National Relay Service on or visit This document is also available in PDF format on the internet at

3 Contents Minister s foreword ii 1. Introduction and scope Introduction Background Scope Application Implementation 2 2. Guiding principles 3 3. Approval process 4 Stage 1: Pre-proposal Information 4 Stage 2: Preliminary Concept Assessment 5 Stage 3: Public Notification and In Principle Approval 6 Stage 4: Full Proposal 7 Stage 5: Lease Negotiation and Preparation 7 Tourism Investment Opportunities of Significance in National Parks Guidelines i

4 Minister s foreword Victorians are extremely fortunate to have so many beautiful national parks and other public land at our doorstep. These unique places provide enormous environmental, social, cultural and economic benefits and memorable experiences to those who visit them. The Victorian Government is working to unlock the tourism potential of Victoria s world class natural assets. We are supporting efforts to attract more visitors to our great state while maintaining important environmental safeguards. The Guidelines for Tourism Investment Opportunities of Significance in National Parks outline a set of principles for the consideration of investment proposals and a clear process for prospective investors and other parties. These guidelines make it clear that investment proposals must demonstrate high environmental standards. Proposals will require a detailed environmental management plan supported by an independent environmental risk assessment and auditing of the plan. There is to be proper community consultation and projects must generate a net public benefit for the community use of the park. They are a key part of our efforts to enable investment in our regions and provide significant tourism opportunities to make the most of this state s remarkable natural assets. This plan to boost eco-tourism in Victoria will enable us to better compete with similar attractions in Australia and overseas and will provide people the opportunity to experience, appreciate and care for their natural environment. We will be supporting sensible and sensitive investment in national parks that complements local environmental, heritage and other values. Our national parks are much loved and are enormously valuable to our state. By investing in these areas we will help to strengthen their future. We want more people to visit and enjoy our internationally-acclaimed national parks. These guidelines will help to show investors how to realise these opportunities in an appropriate and sustainable way. The Hon Ryan Smith MP Minister for Environment and Climate Change ii Tourism Investment Opportunities of Significance in National Parks Guidelines

5 Introduction and scope Introduction In Australia there has been a growing interest in, and recognition of the benefits of, developing and investing in high quality sustainable tourism investment opportunities in national parks. The aim of these tourism investment opportunities is to provide contemporary visitor infrastructure that is of a high environmental standard and can be established and managed to complement the values of national parks. These investment opportunities are intended to provide experiences which enhance visitor satisfaction and appeal to national and international tourists. It is anticipated that these investment opportunities will provide benefits for regions and local communities, and make positive contributions towards the conservation of the environmental and Aboriginal and historic cultural values of national parks. Most Australian states and the Northern Territory governments allow some level of private tourism investment such as commercial accommodation and other infrastructure-intensive tourism experiences to be developed in and around national parks. Recognising that some tourism investment opportunities can complement natural values and enhance visitor experiences the Victorian Government has decided to allow appropriate and environmentally sensitive investment opportunities in national parks. Proposals will be considered on a case-by-case basis in order to safeguard our national parks for present and future generations. 1.2 Background On 23 August 2012 the Victorian Government announced its response to the Victorian Competition and Efficiency Commission s (VCEC) report Unlocking Victorian Tourism: An Inquiry into Victoria s Tourism Industry. The report recommends the Victorian Government introduce a streamlined approval process for investment opportunities on public land which: progressively reduces uncertainty about the overall outcome, and sharpens the focus on key issues of uncertainty separates responsibility for developing policy and administrative processes provides more certain timeframes for assessment, such as binding or negotiated time limits, and public reporting against these limits, and provides a more integrated decision making process. That report makes recommendations specific to public land that the Victorian Government: allow appropriate private investment opportunities in Victoria s national parks, provided they complement environmental, Aboriginal and historic cultural heritage and other values, and generate a net public benefit make appropriate lease terms available for tourism investment opportunities in national parks. The report recommends that the Department of Sustainability and Environment (DSE) release guidelines that identify and clarify: the steps involved in the proposal approval process the relevant contacts at each stage of the approval process criteria for assessing proposals. The government has accepted the above recommendations and in its response stated that it will: propose sensible and sensitive developments in national parks provided they complement environmental, heritage and other values and generate a net public benefit. (Page 4 of government response). Tourism Investment Opportunities of Significance in National Parks Guidelines 1

6 1.3 Scope The following guidelines are designed to provide clear and transparent advice and a streamlined process for assessing proposals for high quality tourism investment opportunities of regional and/or state significance in national parks. Tourism investment opportunities are defined as any facilities which are primarily intended to be used by visitors to the region in which the national park is located. Consistent with the government response, no investment proposals will be considered in areas classified as wilderness parks, wilderness zones and remote and natural areas under the National Parks Act 1975 or reference areas under the Reference Areas Act The guidelines will be used in conjunction with the Leasing Policy for Crown Land in Victoria The Leasing Policy for Crown Land in Victoria 2010 provides a framework to guide tenure management decision-making. There are three principles: 1. Provide benefits to the public through leasing. Benefits to the community of granting exclusive occupation must be justified taking into account social, economic and environmental considerations 2. Ensure consistency and transparency in leasing. Leasing processes must be fair, open and impartial whether the lease is allocated through a competitive process or through direct negotiations 3. Manage leased Crown land in an ecologically sustainable manner. The economic, social and cultural benefits the community derives from Crown land depend on long term sustainable management. These guidelines will support decision makers in determining whether investment proposals in national parks are appropriate in that they complement environmental, heritage and other values; and investment proposal in national parks will generate a net public benefit. The guidelines will support decision makers in determining appropriate lease durations and conditions for tourism investment opportunities in national parks. The guidelines will inform potential developers and investors on how key decision makers will assess a proposal and when decisions will be made. The guidelines will inform the broader community on the process for assessing investment proposals and determining lease durations for such proposals. 1.4 Application The guidelines are structured to respond to developer initiated approaches for significant, large scale proposals to government rather than government initiated proposals. A framework for allocation of rights on public land will support the implementation of the guidelines and apply to a broader range of tourism investment opportunities on public land. Government initiated proposals will be dealt with via a competitive process, and will specify the site, conditions, rental and lease duration prior to going to market. The guidelines will be reviewed as required. 1.5 Implementation The Secretary to DSE is responsible for coordinating the assessment of tourism investment opportunities proposals in accordance with the guidelines, prior to their consideration for approval by the Minister for Environment and Climate Change. Depending on the scale, nature and location of the project, statutory approvals may be required under a range of Victorian and Commonwealth legislation. Local governments play an important role in the approval of tourism investment proposals, in line with their administrative responsibilities for the planning scheme under the Planning and Environment Act 1987, and in providing other services such as maintenance of local roads, and waste collection. Other departments and agencies will also have a role in the assessment and/or approval of investment opportunities as required. The Secretary to DSE shall ensure that relevant government departments and agencies are appropriately involved in the assessment of investment opportunities. This includes Parks Victoria, which in addition to providing land management services to the Secretary, provides advice of the Minister and the Secretary about the operational elements of management of national parks. 2 Tourism Investment Opportunities of Significance in National Parks Guidelines

7 Guiding principles 2 In considering proposals for tourism investment opportunities in national parks, the following high level principles will be applied: Principle 1: Tourism investment opportunities will be allowed which are sensible and sensitive to their setting and which support broader visitor enjoyment of national parks. Principle 2: Tourism investment opportunities must be determined as the highest and best use of the area of national park proposed for use. That is, proposals must provide the greatest public benefit. The greatest net public benefit will be determined by considering: Environmental outcomes - the primary purpose of national parks is the preservation and protection of the natural environment (a legislative objective) Social outcomes - parks are also for the use and enjoyment of the public (a legislative objective), requiring appropriately managed access and facilities in specific areas Economic outcomes - proposals may include broader economic benefits for the region, which may have an impact on determining the greatest benefit. Principle 3: Investment opportunities must be consistent with the legislative objectives and purpose of national parks and have regard to applicable management plans. Principle 4: Investment opportunities must take account of associated risks and give regard to any risk management plans for the proposed settings, for example bushfire and climate variability. Principle 5: Tourism facilities must be established and managed in an ecologically sustainable manner, must minimise impact on Aboriginal cultural and historic heritage and must contribute to the maintenance and enhancement of national park values. Principle 6: Access to national parks by Aboriginal enterprises for tourism operations should be encouraged. Principle 7: Lease durations granted for private tourism investment proposals will be commensurate to the level of capital investment, rate of return on investment and level of environmental and social outcomes delivered. Principle 8: The approval process should not compromise the intellectual property of the proponent. Demonstrating compliance with these principles is an integral part of the approval process for investment and in securing ministerial approval. Tourism Investment Opportunities of Significance in National Parks Guidelines 3

8 Approval process 3 The five stage approval process is outlined below. Stage 1: Pre-proposal Information The provision of preliminary information to the proponent to assist in the development of a preliminary concept proposal. Stage 2: Preliminary Concept Assessment An initial assessment of the proposed concept against the Guiding Principles. Stage 3: Public Notification and In Principle Approval by Minister Consideration by the Minister for Environment and Climate Change (the Minister) A public notification period of the proposal (including information on the proposed location, lease duration, etc) Subject to the outcomes of the public notification period, provision of the Minister s In Principle Approval Stage 4: Full Proposal The development of a full proposal by the proponent for assessment and the development of appropriate leasing conditions, including lease duration. Stage 5: Lease Negotiation and Preparation Issuing of the lease with appropriate lease conditions, including lease duration. The approach, requirements for the proponent and relevant assessment criteria for each stage are detailed on the following pages. Stage 1: Pre-proposal Information The Pre-proposal Information stage is where the initial information is provided to the proponent by the assessment agency. The aim is to inform the proponent about the proposal development and assessment process. Information will include: The broad types of tourism investment opportunities that are likely to be successful in terms of national park management objectives, sustainability and enhancing the visitor offer The legislative, planning and policy requirements affecting tourism investment opportunities and operations Advice on relevant contacts within state and local government and their relationship / role within the overall process Information about the assessment process including criteria that will be used at all decision points Existing risk management plans for the proposed settings, and any other risk considerations Lease durations and criteria. This information will assist the proponent in developing a preliminary concept proposal for assessment (Stage 2). 4 Tourism Investment Opportunities of Significance in National Parks Guidelines

9 Stage 2: Preliminary Concept Assessment The preliminary concept assessment stage requires the proponent to develop a preliminary concept proposal about the use of the site. The preliminary concept proposal, guided by the information gathered in Stage 1, will include: A concept plan about the use of the site and visitor experience(s) Descriptions of how the investment opportunity will contribute to the environmental, social and economic outcomes of the park and the region An assessment of compatibility with all legislative requirements An assessment of the likely environmental impacts and how these impacts will be managed. This assessment should be undertaken by a consultant with relevant and recognised accreditation. The Environmental Assessment process and guidelines developed by the Department of Planning and Community Development will be used for reference when undertaking the assessment Where appropriate, an assessment against cultural heritage requirements. This assessment should be undertaken by a consultant with relevant and recognised accreditation. The Aboriginal cultural heritage guides, forms and practice notes and non Aboriginal historic heritage guides, forms and practice notes developed by the Department of Planning and Community Development will be used for reference when undertaking the assessment An assessment of the benefits and costs of the investment opportunity to the local community The developer s track record in delivering similar proposals. In assessing whether the preliminary concept is consistent with the guiding principles, the following criteria will be considered: Compatibility of proposal with legislative requirements for the national park and respective values The nature and level of environmental impacts. All residual predicted environmental impacts after relevant mitigations must be local, acceptable and manageable over time. Proposals with significant environmental impacts will not proceed further. The contribution of the investment opportunity to visitor satisfaction and experience. The investment opportunity must complement and enhance the visitor enjoyment of the national park The level of benefits and costs of the investment opportunity to the land and the community. There must be a net public benefit of the investment opportunity The opportunities for Aboriginal Victorians consistent with government strategy The alignment of the facility footprint with previously disturbed areas. In order to minimise environmental impacts, it is desirable that infrastructure development occur on land that has previously been significantly disturbed and has reduced environmental values The adequacy of the facility footprint to meet all current and future infrastructure requirements. It is important that the initial proposal identifies a site sufficient to meet the future needs of the proposal, reducing the need for site expansion in the future The appropriate lease duration and conditions Potential risks associated with the project proposal including potential community issues Developer s/operator s track record, capacity to deliver triple bottom line values and environmental accreditation. A significant track record in delivering and managing facilities in environmentally sensitive areas will be beneficial. Following receipt of all information a detailed assessment will be submitted for consideration by the Minister. After considering an application, the Minister will as soon as practicable (normally within 28 days) approve the proposal to go to public notification, request further information, or refuse the application. The notification will specify whether a lease term longer than 21 years is contemplated. If not satisfied, the Minister will not approve the proposal and provide a statement which sets out the reasons for non-approval. The proponent may then submit an amended investment proposal for consideration by the Minister. Tourism Investment Opportunities of Significance in National Parks Guidelines 5

10 Stage 3: Public Notification and In Principle Approval The Public Notification and In Principle Approval stage requires advising the community of the In Principle Approval of the proposal and seeking public feedback. The public notification process will consist of: The Minister will issue a public notice of the proposed investment opportunity. This notice will be in a newspaper that circulates throughout Victoria and the relevant local newspaper. It will also be placed on Parks Victoria s website. The public notice will call for specific comment from individuals, businesses or groups on elements of the proposal that affect them. The public notification period will be 28 days. The public notice will include a request for comments on: a. The interaction of the proposed investment opportunity with local values and the local economy b. The interaction of the proposed investment opportunity with localised Aboriginal cultural and historic heritage c. The interaction of the proposed investment opportunity with existing public access and use. Following the close of the public notification process feedback will be analysed and then considered by the Minister. At this stage, the Minister may request the proponent undertake a formal, targeted engagement process and report on the outcomes of that process. Following consideration of the issues raised through the public notification and any engagement processes conducted by the proponent, the Minister, if satisfied, will announce In Principle Approval to grant a lease for the tourism investment opportunity. Following the public notification, and subject to further advice from the proponent or the department, the Minister will advise the proponent of their decision, normally within 28 days. If the decision of the Minister is to support the investment opportunity the proponent will be advised to prepare a full proposal. The In Principle Approval will advise that the investment opportunity, subject to any specified matters, is in principle consistent with the Guiding Principles. The In Principle Approval will specify any matters to be addressed in developing the full proposal including any communication activities and actions to ensure benefits are realised. The approval will also specify the expected lease terms and conditions, subject to final lease negotiation. The In Principle Approval will also provide the basis for the proponent to commence other relevant statutory approvals. Depending on the scale, nature and location of the project, statutory approvals may be required under a range of Commonwealth and Victorian legislation, particularly relevant to the role of State and Local Government. DSE will provide guidance on statutory approval requirements and relevant contacts. The proponent will be responsible for identifying and ensuring all statutory approvals are obtained before the full proposal is agreed. If not approved, the Minister will provide the proponent with a statement of the reasons for non-approval. The proponent may submit an amended investment proposal for consideration by the Minister and consideration at Stage 2. 6 Tourism Investment Opportunities of Significance in National Parks Guidelines

11 Stage 4: Full Proposal This stage calls for the proponent to develop a full proposal for the development and operation of the site. The full proposal, informed by stages 1 3 will include: A full business case that meets the business case guidelines of the Department of Treasury and Finance A site master plan detailing site layout and function A detailed environmental management plan supported by independent environmental risk assessment, including processes for auditing the implementation of, and compliance with, the environmental management plan Consideration of, and regard to existing risk management plans or identified risks, including planning provisions with respect to Bushfire Prone Areas and Bushfire Management Overlays Where relevant, details of ancillary commercial uses of the investment opportunity (e.g. tour guiding operations that will be based at the facility and will operate beyond the building footprint) Where relevant, a detailed cultural heritage management plan including oversight and auditing arrangements A statement of compliance with all statutory approvals. Following receipt of all information a detailed assessment will be submitted for consideration by the Minister. In assessing the non-financial components of the full proposal, and in having regard to the guiding principles, the following criteria will be applied: Compatibility of the investment opportunity with relevant national park and public land legislation Effectiveness of the environmental management plan Where relevant, effectiveness of the cultural heritage management plan Measures to manage impacts and relations with other visitors and national park users, including the activities of ancillary users of the facility such as licensed tour operators Measures to ensure the delivery of a net public benefit. If satisfied, the Minister will advise the proponent of their decision, normally within 28 days. The agreement may specify matters to be addressed as part of operational plans in order to ensure the delivery of a net public benefit. If approved, lease negotiation and preparation will commence. If not approved, the Minister will provide the proponent with a statement of the reasons for non-approval. The proponent may submit an amended investment proposal for the consideration of the Minister. Stage 5: Lease Negotiation and Preparation In addition to standard lease conditions regarding rent, reporting and procedural matters, the lease for a tourism investment opportunity in national parks will incorporate measures which meet both the government and developer/ investor outcomes. Lease duration and conditions will be the primary means by which to achieve government and investor outcomes. Expectations regarding lease duration and conditions will be discussed at each stage of the approval process. 5.1 Lease Durations The commercial viability of the tourism investment opportunities, for both government and investor, will be strongly linked to a lease duration that enables an appropriate and fair return on the investment. The duration of the lease also affects the ability to secure finance and make ongoing improvements to infrastructure and services. The determination of the lease duration for tourism investment opportunities will follow the leasing principles as set out in the Leasing Policy for Crown Land in Victoria Any lease lengths beyond 65 years will need to demonstrate regional and/or state significance. It is anticipated these opportunities will generally be government initiated. 5.2 Lease Conditions Lease conditions are a key regulatory and legal tool for ensuring the tourism proposal achieves and complies with environmental, social and economic outcomes on or near the site. The lease also holds the lessee accountable for delivering outcomes that were agreed on with government. In general, lease conditions will relate to demonstrated compliance with the approved environmental management plan, cultural heritage management plan (where relevant), and operational plans. The lease will specify penalties for non-compliance. The lease will also clarify the management responsibilities and positive obligations of the public land manager and lessee. Once agreement is reached on lease duration and conditions, the draft leases will be submitted for consideration by the Minister. If satisfied, the Minister will issue the lease, normally within 14 days. If not satisfied the Minister will issue a statement of reasons for not issuing the lease and provide the proponent an opportunity to address the reasons. Tourism Investment Opportunities of Significance in National Parks Guidelines 7

12 For more information call the Customer Service Centre twitter.com/dse_vic youtube.com/dsevictoria flickr.com/dsevictoria