2015-05-04 Attachment 1 to Item 1 General Committee Agenda - MCU14 0009 Referral Agency Response

GENERAL COMMITTEE MEETING AGENDA                                                       4 MAY 2015


 Tourism Noosa will be obliged to establish a Marketing Contingency Reserve to ensure that
   they have reserve funds to undertake any urgent marketing that may be required as a result
   of an unforeseen downturn (e.g. Pilots’ strike type scenario). Tourism Noosa must establish
   that Marketing Contingency Reserve by 30 June 2016 and maintain that reserve to at least
   $350,000.
 Tourism Noosa must meet certain expenditure benchmarks in undertaking their activities.
   For example, specific funding parameters are proposed which ensure that Tourism Noosa do
   not spend too much on administration and membership development (e.g. no more than
   15%) while maintaining marketing activities (no less than 70%) and industry development and
   sustainability (no less than 10%).
 Tourism Noosa will consult with Council in the development of its next SDAP and will also
   provide a copy of its annual business plan to Council each year for comment prior to its
   adoption. Tourism Noosa will provide activity reports each 6 months including KPIs (yet to be
   finalised but to focus on the contribution to the Noosa economy rather the number of visitors).
 Tourism Noosa to acknowledge that Council is undertaking a trial of Electric Buses and
   following that trial, a decision in relation to Electric Buses may be made during the life of the
   funding agreement. Tourism Noosa and the Council acknowledge that while no decision has
   been made about funding of any ongoing operation, it is possible that some funding may be
   drawn from the Tourism Levy given the nature of use and the potential value to the Noosa
   tourism brand and its use by visitors. The funding agreement will acknowledge that Noosa
   Council will retain the right to vary the amount of the Tourism Levy to Tourism Noosa but it
   will consult and give least 12 months’ notice if there is to be any change to the levy amount
   provided by Council to Tourism Noosa.
 Due to the fact that there is no certainty yet about whether the electric bus solution will be an
   ongoing service after the trial and whether or not there will be any funding contribution to any
   ongoing electric bus operations, it is proposed that the funding agreement with Tourism
   Noosa only be for two years. Once there is more certainty about the electric bus issue, a
   longer term funding agreement (up to four years) can be considered.
 Tourism Noosa will be responsible for funding of tourism related events and Noosa Council
   will be responsible for funding community related events. Where events have a dual purpose,
   the Council and Tourism Noosa will liaise regarding funding.

Previous Council Consideration

Nil.

Finance & Risk

The Council collects $2.516M via the Tourism Levy each year. This is a significant investment of
ratepayer funds into the tourism industry which supports the growth of the Noosa economy.


Consultation

External Consultation - Community & Stakeholder

There has been significant consultation with the CEO of Tourism Noosa in relation to the
proposed 2 year funding arrangements.

Internal Consultation

Director Corporate Services
Cr Wilkie as the Council’s representative on Tourism Noosa


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