LME Case Study
Case Study
How Bundaberg Tourism Supported the Establishment of Lady Musgrave Experience
FROM A COMMUNITY VISION TO AN ICONIC REEF EXPERIENCE
Lady Musgrave Experience (LME) is now recognised as one of Queensland’s most iconic reef tourism operations, connecting visitors with the pristine coral gardens of Lady Musgrave Island and lagoon, on the Southern Great Barrier Reef.
As LME marks its 10-year anniversary, it also marks a decade long partnership that reflects the role destination organisations play in fostering a sustainable business environment for tourism – particularly in regional areas where regulatory complexity, accessibility, commercial challenges, visitor expectations and environmental stewardship can intersect.
This case study tells the story not only of LME’s success, but of what becomes possible when destination leadership, private enterprise and long term vision align.
SUMMARY
- Bundaberg Tourism played a long-term destination leadership role in establishing Lady Musgrave Experience, helping turn a community vision into one of Queensland’s most iconic reef tourism operations.
- By securing and holding GBRMPA reef permits, providing financial backing and de-risking early investment, BT shortened the pathway to market for a locally based Great Barrier Reef operator.
- Bundaberg Tourism reduced start-up costs and accelerated growth through free bookings, membership, mentoring, and over $250,000 in early tour sales support.
- BT facilitated $1.6 million in infrastructure funding and delivered a global marketing and PR campaign valued at over $260,000 to launch the Lady Musgrave Headquarters pontoon.
- Ten years on, Lady Musgrave Experience stands as a benchmark for sustainable reef tourism, showcasing the impact of destination-led industry development and strong regional collaboration.
THE ROLE OF A DESTINATION ORGANISATION
Building the Conditions for Success
Bundaberg Tourism works alongside community, industry and all levels of government to navigate regulatory barriers, address early-stage challenges and create the conditions for high quality tourism investment to thrive. In the case of Lady Musgrave Experience, this meant recognising the long-term value of securing locally based reef access, not just for a single operator, but for the broader destination, community and visitor economy. |
DESTINATION VISION
Anchoring SGBR Access Locally
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The need for a Bundaberg based Great Barrier Reef day cruise operation was first identified in the Bundaberg–Fraser Coast Tourism Opportunity Plan (2009), which highlighted a reef day cruise as a critical catalyst project for the region’s visitor economy. In response, Bundaberg Tourism took a deliberate, long-term destination management approach, establishing the Lady Musgrave Taskforce, bringing together expertise across tourism, government, economic development and industry to pursue a supportive framework for a future tourism operation. Recognising the considerable time, complexity and uncertainty associated with securing reef permits, BT applied for and acquired the Great Barrier Reef Marine Park Authority (GBRMPA) permit for the Capricorn Bunker Group, encompassing Lady Musgrave Island and lagoon, with the express purpose of shortening the pathway to market and providing certainty for future private investment. By holding the permits during the establishment phase, BT was able to de-risk the project for the operator, accelerate timelines and support the emergence of a locally based reef operator aligned with the region’s environmental values and long-term destination goals. |
FROM VISION TO VIABILITY
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Armed with a robust evidence base and a clear understanding of the regulatory and commercial landscape, Bundaberg Tourism progressed from feasibility into action. The next phase focused on securing an operating partner who could translate the opportunity into a commercially viable, environmentally responsible, high quality reef experience. At this point, BT’s role evolved from destination planning to active enablement, working to establish the agreements and frameworks required to support a successful operator-led delivery model. |
INDUSTRY DEVELOPMENT
Financial and Regulatory Enablement
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Driven by the governance of the dedicated Lady Musgrave Taskforce, one of the most significant early supports was Bundaberg Tourism’s provision of a bank guarantee with Auswide Bank, which underwrote the initial finance required for the purchase of the Lady Musgrave Experience vessel, Main Event. This financial backing de-risked the project at a pivotal moment and enabled LME to secure finance. BT also facilitated access to the reef itself by providing the Great Barrier Reef Marine Park Authority (GBRMPA) permit required to operate within the Marine Park at Lady Musgrave Island and its lagoon. This permit was transferred to LME free of charge, removing a substantial regulatory and financial hurdle during start-up. |
BUSINESS SUPPORT AND DISTRIBUTION
Reducing Start-Up Costs and Accelerating Market Entry
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BT delivered free booking functionality for the first two years of operation, with the Bundaberg Tourism Visitor Information Centre and destination website providing seven-day-a-week tour bookings and handling customer enquiries, commission free. During this period, BT booked more than $250,000 worth of tours on behalf of LME, generating early revenue, market exposure and consumer confidence while allowing the operator to focus on operational excellence. |
FUNDING FACILITATION AND DESTINATION MARKETING
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Through grant writing and feasibility support, BT assisted Lady Musgrave Experience to successfully secure $1.6 million in Growing Tourism Infrastructure funding for lagoon pontoon infrastructure, supporting further investment and an enhanced on-reef visitor experience. Following this, BT delivered a comprehensive marketing and global PR program to support the launch of the Lady Musgrave Headquarters (LMHQ) pontoon, with a total activity value of over $260,000. This included organic and paid social media posts, digital campaigns such as NewsXtend and Concrete Playground takeovers, blogs and amplification, and SGBR social and blog activity, and content creation. BT also worked with Tourism and Events Queensland (TEQ) to secure extensive media outcomes across major publications including Escape, Lonely Planet UK, Urban List, NZ Herald, Courier Mail, RACQ and Dive Planit. Overall, the campaign amplified national and international awareness of the experience, reinforced the Southern Great Barrier Reef brand, Bundaberg as the gateway to the Great Barrier Reef and positioned LME as a must-do reef encounter. Beyond infrastructure and launch support, BT has continued to work alongside Lady Musgrave Experience over the past ten years to support experience development, trade engagement and distribution. Through a blend of dedicated internal resources and TEQ funded programs, BT has supported ongoing mentoring, workforce capability development and market readiness across the evolving needs of the LME team. This sustained investment has helped evolve the experience, strengthen distribution pathways and ensure the product remains competitive, trade-ready and aligned with visitor expectations. |
INDUSTRY COLLABORATION
The Power of a Team Bundaberg Approach
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Established businesses took the experience under their wing, supporting early packaging opportunities, cooperative marketing initiatives and peer-to-peer connections across local networks. This collective approach helped integrate LME into the regional tourism ecosystem from the outset, strengthening distribution, visibility and confidence during the early stages of operation. The power of this Team Bundaberg approach, characterised by collaboration, shared ambition and a genuine willingness to support new operators, and of course the Bundaberg spirit, played an important role in LME’s establishment and ongoing success. |
A MODEL FOR DESTINATION-LED INDUSTRY DEVELOPMENT
Today, Lady Musgrave Experience stands as both a commercial success and a benchmark for environmentally responsible reef tourism. It contributes to regional jobs, increased visitation and global awareness of the Bundaberg and Southern Great Barrier Reef destination. Over 10 years of operation, Lady Musgrave Experience is recognised as a Best of Queensland Experience, has achieved Advanced Eco certification with Ecotourism Australia and has maintained the TripAdvisor Travellers Choice Award for the last 5 years. Known as a high-standard tourism operator on the Great Barrier Reef, LME has a strong commitment to ecologically sustainable use of the Marine Park. Through practical business support, funding facilitation, capability building and destination marketing, Bundaberg Tourism enabled a high-potential tourism concept to progress from idea to operation, demonstrating the value of strategic planning and robust destination management, driven by collaboration and a community working for the greater good. |



Prior to taking the opportunity to market, Bundaberg Tourism invested in a comprehensive feasibility study to test whether a Bundaberg-based Great Barrier Reef day cruise operation could succeed.
Recognising the cash-flow pressures faced by new tourism businesses, Bundaberg Tourism provided complimentary top-tier membership for the first 2 years of LME’s operation, ensuring immediate access to destination marketing channels, trade engagement and industry networks without upfront cost.
In addition to support from BT and government funding, Lady Musgrave Experience was strongly buoyed by the region’s existing tourism and accommodation operators, many of whom recognised the value of new tourism investment coming into the region.