The Victor Harbor Horse Tram is one of South Australia’s most iconic heritage attractions, operating in varying capacities since the late 19th century and delighting visitors from around the world. It offers a unique journey to Granite Island, showcasing both our rich local history and our dedication to sustainable tourism.

A Proud History

The Horse Tram has been part of Victor Harbor’s identity for over a century. Previously operated directly by the City of Victor Harbor through a Section 41 Committee, the service received annual contributions, on average, of approximately $575,000 to support operations and maintenance.

In 2018, the Victor Harbor Horse Tram Authority (VHHTA) was established as a Section 42 subsidiary of Council. The Authority was created to provide dedicated oversight of operations, marketing, and business development, and to ensure the long-term sustainability of the tram. Since then, annual Council contributions have been significantly reduced to around $360,000 per year, reflecting greater efficiency and independence under the Authority.

Recent Challenges

Over recent years the Horse Tram operations have experienced sustained challenges starting with the failure of the old Causeway in 2018/19 and resulting operational impacts, then the onset of the covid-19 pandemic in 2020, followed by the reconstruction of the Causeway in 2021, the ross river virus putting several Clydesdales out of action between October 2023 and April 2024 - which unfortunately resulted in the loss of two working horses (one passing and one unable to return to service), and most recently the impact of the algal bloom throughout 2025 to now.

The challenges, all beyond the control of the Horse Tram Authority, have compounded.

The 2025/26 financial year has presented unique challenges for the Horse Tram. Factors including ongoing COVID-19 recovery, horse illness, and an algal bloom in the waters affected operations and visitor numbers. These circumstances have temporarily increased the financial support required from Council to ensure the Authority can continue operating and maintaining the service at high standards.

Council has provided additional support to the VHHTA this year (2025/26) by:

• Waiving rent and corporate overhead charges totalling $112,800
• Providing a cash contribution of $170,000

This support is part of Council’s ongoing role in backing its Section 42 subsidiary and ensuring the tram can navigate this short-term period while remaining sustainable for the future.

A Stronger, Modern Experience

Today, the VHHTA operates with significantly enhanced facilities compared to the past, including:

• An upgraded Tram Office, including souvenir shop and horse feed area at the Causeway
• A modern Visitor Experience venue, known as the Stables, with improved amenities
• Access additional land for grazing the Clydesdale team
• A newly built Causeway by the Department for Infrastructure and Transport.

These upgrades position the VHHTA and the Horse Tram for a strong and sustainable future. The service is now more resilient, with improved facilities that enhance both animal welfare and visitor experience.   They also support the development of new and diversified revenue streams - such as VIP experiences, behind‑the‑scenes tours, merchandise, venue hire, and value‑add tourism offerings - reducing reliance on passenger ticket sales alone and strengthening the Authority’s long‑term financial sustainability.

Looking Ahead

While recent years have been challenging, the future for the Victor Harbor Horse Tram is bright. The tram is now operating from a modern, well-equipped base with strong governance, dedicated staff, and a clear strategic plan. With Council support, the Authority is well placed to grow visitor numbers, enhance the experience, and continue contributing to Victor Harbor’s tourism and heritage.

Importantly, independent research conducted through the University of South Australia has confirmed the significant economic value the Horse Tram brings to the region. The assessment found that the tram attracts between $1.15 million and $1.67 million in local economic activity each year, even under disrupted operating conditions, representing a return of up to four dollars in economic benefit for every one dollar invested by Council. This demonstrates that the Horse Tram is not only a cultural and historic asset, but also a key economic driver supporting local businesses, tourism operators, and the broader visitor economy.

Community support plays an important role in this next chapter. By choosing to ride the tram, enjoy a VIP experience, or purchase a gift voucher, locals and visitors can directly support day-to-day operations, the care and wellbeing of the horses, and the long-term sustainability of this treasured local icon, ensuring it continues to connect people with Victor Harbor’s history and natural beauty for generations to come.