Introduction              

Melbourne is a popular destination for tourists travelling to Australia. Tourism in Melbourne is developing rapidly. In 2015, there were 26.5 million visitors coming to Melbourne (Tourism Research Australia, 2015). Many facilities, city tours and trips, a variety of popular events and festivals create unique vibes of the capital of the state Victoria (Official Site of Melbourne). At the same time, the population in Melbourne is thriving and more people choose the city as a home (Victorian Planning Authority). However, the destination’s tourism development differ for each area and need to be researched separately from one another.

​

This research is based on a case study in the so called “Northern Precincts” of Melbourne, focusing on the position of Medium and Large Organisations (MLO’s) in this region. To ensure a clear understanding of the terminology used in this research paper, definitions are going to be applied. Firstly, the research area which is the “Northern Precincts” is going to be described by making use of a regional division. Secondly, MLO’s will be described as they are the focus of the research. The research goal will be presented together with the research questions. The methodology will show the approach of making use of primary and secondary data. From the collected data, the findings will demonstrate the match between demand and supply, the current situation of the organisations, eventually reveal the future development potential in the Northern Precincts and the possible future for MLO’s.

​

Defining the area Northern Precincts

The terminology "Northern Precincts" (NP) is used in this report to describe a part of Melbourne which is located up north from the city centre. Through the research several regions within NP were identified:

• Business and leisure district in the south which consists of the Flagstaff Garden and several businesses such as Hotels and QVM are in this area.

• Residential district in the north and west mostly consists of North Melbourne. The Meat Markets and the Arts House which are made for residential events as well as the hospital districts are part of it.

• Cultural and artistic district in the east consists of the Melbourne Museum, the Royal Exhibition Building, Carlton Gardens and Lygon Street.

• Educational district is the area of the University of Melbourne in the middle of the Northern Precinct.

 

The region is also characterized as an industrial and commercial area where most of the population are middleclass workers employed in local industry. The Northern Precincts has a very young population, compared to other districts of the city.

​

 

 

 

 

 

 

 

 

                      

​

​

​

​

 

 

 

 

 

 

 

 

 

 

Tourism development

In the first scenario, tourism focussed MLO’s will be impacted by several trends and developments. Firstly, tourism supply will increase as well as the demand. This will go along with the creation of more jobs. These developments are considered as the expansion of businesses. It will affect the CBD to expand and cause that artistic places such as the cultural district with Lygon street, the Melbourne Museum and the business district with the theatre and the QVM will move into the focus of tourists. The cultural and artistic district will become even more an area of entertainment with a diverse range of shop offers, restaurants and bars, which might be the reason why tourists will consider staying in this area. Moreover, the district is also known for its “serendipity”, which means that tourists wander around and discover the area while coincidentally come across venues and happenings. Besides attracting backpackers, wealthier tourists might also enjoy this atmosphere. Organisations such as the theatre and the QVM are going to diversify their services more for a wider range of products, which will keep on attracting tourists.

​

The second trend is the expansion of the University buildings due to an increasing number of students. This will cause an increase of accommodation supply for students. Even though keeping prices reasonable will remain a challenge, the University will try to keep on creating a cheap economy in the area around Carlton. Additionally, a higher number of students will result in a higher number of visitors. Besides tourists who visit the historical buildings there will be people visiting friends and relatives.

​

The third trend is the accessibility of the Northern Precincts. A better accessibility due to the Metro Tunnel Project will be achieved close to the University and in North Melbourne. More tourists will consider accessing this area also in terms of accommodation. Accommodation providers and artistic venues in the area will Benefit. Increase of accommodation supply is a trend for the possible future for tourism concentrated MLO’s. This will be a reaction of an increasing demand. Accommodation providers and car rental companies will be affected by this and can benefit in terms of a rising competitiveness. Nevertheless, Caroline stresses her hope that the demand keeps on increasing so that there will not be an oversupply. Simultaneously, hospitals will also benefit from the accommodation supply in the area. This opportunity can help to prevent a huge variation in seasonality from happening. The facilities will be used by the increasing number of students and especially their visiting friends and relatives in low Season.

​

Residential development

The second scenario will affect residential focussed MLO’s, according to the trends of the future development. The expansion of the University will accommodate more students. According to various opinions, students as temporary residents are already dominating the Northern Precincts. Regarding the University’s strong strategic position, its worldwide image will improve which will have a high impact on the surrounding. In terms of study offerings, the University is beneficial for a variety of sectors in the area as well as for the residential liveability. Firstly, hospitals benefit from the graduates in the medical sector, businesses can acquire students from business programs as well as the court from law students and the Melbourne Museum, the Meat Market and the Theatre from arts students. Secondly, a rising number of especially international students (University tour) increases the need for student accommodations. Moreover, the University attracts tourists in the way that friends and relatives are visiting as well as tourists interested in heritage buildings from 1850s (Heather, historian). According to a urban developer, “not many of the tourists visiting the University will stay in the area”.

​

The trends expansion of businesses and increase of accommodation supply will lead to the development of the cultural and artistic area into a more entertaining area as well as North Melbourne will create more jobs for residents. The QVM will expand their opening hours so that residents and workers close to the markets have the ability to shop when needed. The possible future for a cinema in the area lies in the growth of the business. The organization will change in terms of its nature in terms of becoming more experience-driven with a great atmosphere. It has a good location, surrounding by the area for entertainment with good artistic vibes. Other businesses will be able to increase their customer numbers. Some will be influential in terms of demand for health, fitness and education of residents gives security. Airbnb will be forbidden or restricted to a minimum stay of three months. Hotels do not need to fear competitors and (temporary) residents are still able to live in their housing. Even more residential projects are in planning process, which will save space but create common areas at the same time.

​

The Metro Tunnel will have significant impacts. Especially the Hospitals and the University are going to profit from the optimized accessibility. Moreover, the value of North Melbourne will increase enormously. An MLO which will benefit most in the region will be the Meat Market, which are already on an ascending development. The residents in North Melbourne feel the need of diversity and public and social housing with recreation areas. They wish to be able to keep the village atmosphere in their area, even though such huge developments are going on.                                                             

According to the research, several themes were identified, that can also be considered as trends of future tourism development and residential development of NP: accessibility through the Metro Tunnel, expansion of businesses, expansion of the University and increase in accommodation supply. In both cases, MLO’s will be affected. In the following, the two scenarios that might happen will be presented regarding the trends resulting from the research.According to the research, several themes were identified, that can also be considered as trends of future tourism development and residential development of NP: accessibility through the Metro Tunnel, expansion of businesses, expansion of the University and increase in accommodation supply. In both cases, MLO’s will be affected. In the following, the two scenarios that might happen will be presented regarding the trends resulting from the research.According to the research, several themes were identified, that can also be considered as trends of future tourism development and residential development of NP: accessibility through the Metro Tunnel, expansion of businesses, expansion of the University and increase in accommodation supply. In both cases, MLO’s will be affected. In the following, the two scenarios that might happen will be presented regarding the trends resulting from the research.