The visitor information centre will be upgraded and the sound-and-light show updated as part of the cash injection along with work to improve the wharf area.

More than 50 people gathered outside the maritime village’s tearooms to witness Premier Denis Napthine announce that $1.95 million in state funds would be committed to the upgrade.

It will be topped up with a further $1 million from Warrnambool City Council.

The long-awaited funding will be channelled into improving the Shipwreck Sound and Light Show, opening up opportunities to make the attraction multi-lingual.

The cash package will also be spent to improve the boat yard at the base of the village site along with a reconfiguration of the tourist information centre and reception area at the top of the hill.

Dr Napthine, who is also South West Coast MP, said Flagstaff Hill was a key attraction for overnight visitors to Warrnambool and the funding was necessary to ensure it remained relevant.

“Flagstaff Hill is absolutely the flagship of (the south-west’s) tourism fleet,” the Premier said.

“The funding for Flagstaff Hill will revitalise what is already a great attraction. We fully expect to see a 30 per cent lift in tourism annually (following the refurbishment work).”

The funding package comes at an opportune time for Flagstaff Hill after the city council revealed in May the maritime village was likely to make a $427,000 loss in the 2014-15 financial year. 

Former Warrnambool mayor John Lindsay was in the crowd at yesterday’s ceremony and reflected on the site’s development over four decades.

The retired businessman was instrumental in establishing Flagstaff Hill in the early 1970s through his role as Chamber of Commerce president. The Visitor Information Centre moved from its old Kepler Street location to the maritime village a decade ago.

“It’s marvellous news for Flagstaff Hill because it ensures what we have here is able to be retained and improved upon,” Mr Lindsay said.

“Things change over time, tourists expect different things and you’ve got to keep working with what you’ve got so visitors keep coming back, especially international tourists which are a growing market here.”

Warrnambool mayor Michael Neoh said councillors had been working on the redevelopment for some time with a broad acknowledgement of the site’s potential.

“The sound-and-light show is one of our biggest drawcards,” Cr Neoh said. “This funding gives us the opportunity to expand on what we have and look at ways of engaging growing tourist markets from China, India and other countries.”