Blue Mountains Lithgow and Oberon Tourism (BMLOT) will shortly close its doors after coming to a funding agreement with Destination NSW to settle its outstanding debts.
Participants at an industry summit this month will decide the shape of a replacement tourism organisation which could see the region jettison Lithgow and Oberon and embrace the Penrith and Hawkesbury areas.
BMLOT chairman Jason Cronshaw said the board had decided to "cease to exist", declaring that the upcoming summit was the most appropriate way "to work out what is the best new entity going forward". As well as industry players, the summit will involve Blue Mountains City Council and the state's leading tourism agency, Destination NSW.
Mr Cronshaw said he has no preferred outcome from the summit but indicated it could lead to a major change in the region's tourism promotion and marketing.
"I'm pretty confident it could see a change to the existing boundaries of the regional body," he said. "Whether that includes or excludes Lithgow and Oberon, I don't know. Whether it includes Penrith or the Hawkesbury, I don't know."
Mr Cronshaw said Destination NSW had confirmed "there is financial assistance coming from them to ensure BMLOT can close its doors with no debts".
This will involve some parties agreeing to write off their debts or accept part payment.
"I'm confident the organisation will close with no debts," he said.
Blue Mountains City Council voted to write off a $4431 debt it is owed at its meeting last Tuesday. The council supported BMLOT's decision to close and welcomed the summit as the best way to develop a new tourism marketing model.
"The BMLOT board is in control of the organisation's destiny and I feel supremely confident they will do what is best for the industry and community. They are an eminent group of people," said Blue Mountains mayor, Mark Greenhill.
"The community forum that will be held involving council, the industry and Destination NSW will be an important watershed for the future of tourism in the Blue Mountains. We need a model that protects and grows this vital and massive part of our local economy."
