Original source · versioned page text
TOURISM NOOSA FUNDING AGREEMENT · Report
SERVICES & ORGANISATION COMMITTEE MEETING 11 APRIL 2023
5.3 TOURISM NOOSA FUNDING AGREEMENT
Author Chief Executive Officer, Scott Waters
CEO Office Department
Index ECM / SUBJECT / TOURISM NOOSA
Attachments 1. Attachment 1 - Deed - Funding Agreement Final
EXECUTIVE SUMMARY
Tourism Noosa (“TN”) and Noosa Shire Council (“NSC”) have held a long term partnership in
advancing the Tourism Industry to positively benefit the Noosa Community and region's
economy. While it is acknowledged that at peak times significant visitor numbers can have a
detrimental effect to the community, NSC is proactively working to manage these impacts via the
development of a Destination Management Plan (“DMP”).
Through this report to Council it is recommended that Council consider entering into a new funding
agreement between NSC and TN. As the primary funder of TN, NSC has governance expectations
in relation to the expenditure of rate payer funds and as such with the renewed agreement, there is
a higher emphasis on NSC requirements, initiatives, value for money, reporting against the
agreement and overall governance. The attached agreement outlines a funding framework covering
current and future activities between TN and NSC.
It also addresses TN’s requirement for an agreed funding quantum essential for TN to have certainty
with respect to strategic planning and TN’s ongoing operations. While NSC is acknowledged as the
primary funder, NSC also recognises that TN is a member based company limited by guarantee and
discharges its responsibilities in accordance with its Constitution.
The framework for the funding agreement contained within the attached Funding and Performance
Deed, is to provide NSC elected representatives with the basis of NSC’s relationship with TN moving
forward. The agreement has been drafted as a funding and performance deed, highlighting NSC’s
expectations of TN to develop a strategy that aligns with key elements of NSC’s vision for the visitor
economy, allow for variations to the agreement in light of NSC’s ongoing DMP process as well as
more regular financial and reporting requirements by TN that demonstrate NSC’s return on
investment. There are also expectations of the highest levels of internal governance and to this end
NSC’s appointed Council Observer will be included in all TN Board meetings (with the exception of
confidential staff matters) and TN will perform annual performance reviews of key staff and directors.
Any corporate governance concerns are to be addressed firstly between TN and the Observer, and
if required, between TN and the CEO and/or Mayor.
It is recommended that the Council authorise the Chief Executive Officer to execute the attached
Funding and Performance Deed, providing agreed funding on a 2 year basis with a 2 year option.
RECOMMENDATION
That Council note the report by the Chief Executive Officer to the Services and Organisation
Committee Meeting dated 11 April 2023 regarding the Tourism Noosa Funding and Performance
Deed and
A. Authorise the Chief Executive Officer to execute the Funding and Performance Deed
provided at Attachment 1 to the Report;
B. Authorise the Chief Executive Officer to make minor changes to the Funding and
Performance Deed as required; and
C. Confirm the release of funds as per the report for the 2024 and 2025 Financial Years.
REPORT
See the original
The page text is free to read. Viewing or downloading an original file needs an account.
Log in to see the originalFull text of the other 5 pages
Page 2
SERVICES & ORGANISATION COMMITTEE MEETING 11 APRIL 2023 Currently NSC provides funding to TN through a historic MOU, that is limited in it’s ability to be legally binding and does not provide TN with clear direction as to NSC requirements for expenditure. The funding of TN occurs through the General Rate, with 5.8% of the annual general rate committed towards tourism and economic development. The current funding quantum for TN is $2.252M, this is exclusive of GST and has been static through the life of the previous agreement with the exception of grant or specific project funding from time to time. It is recommended that funding is not increased for the life of the new agreement and that internal business efficiencies and the exploration of new revenue streams drive funding growth. NSC has advised that funding increases must be achieved through an internal efficiency dividend and that NSC will assist, by ceasing the pass through of overhead charges. The attached funding and performance deed recommended for execution is a significant “step up” from the previous MOU and clearly sets NSC’s expectation of TN as a primary funder. Key elements of the deed are as per the below: ▪ Industry Stakeholder Collaboration Demonstrated linkages with industry bodies such as Visit Sunshine Coast and Tourism & Events Queensland through various marketing and industry development opportunities. ▪ Marketing An annual marketing plan for destination marketing activities is to be developed to attract high value travellers from intrastate, interstate and international markets. The plan will detail marketing activations, TN member co-operative opportunities, market segments, expenditure and anticipated return on investment. • Regional dispersal throughout the Shire A regional dispersal strategy for high value travellers is to continue and progress to be reported. • Business Events Meeting Incentives Conventions Exhibitions (MICE) market program or equivalent program to be developed, that includes NSC facilities, demonstrating high value, low volume corporate visitors with a focus on non peak days of the week and/or non peak seasons. • Events Both parties agree to avoid any duplication of funding or expenditure in relation to “Events” (management, assessment, advisory etc) within Noosa. To avoid duplication NSC and TN will continue discussions as to the framework and appropriate event funding mechanism and this will become an Appendix to the Agreement with a focus on TN’s role in attracting high value visitors to the region. To build on the current TN event support policy, an event attraction, retention, and delivery strategy will be developed should TN’s funding of events continue whether in kind or via a grant process. • Visitor Information Centre VIC activities to be enhanced and the implementation of Hinterland VICs is to be explored on a partnership basis with existing Hinterland businesses, along with further and diversified revenue streams. • Sustainability
Page 3
SERVICES & ORGANISATION COMMITTEE MEETING 11 APRIL 2023
Detailed sustainability program to uphold and enshrine “Noosa values” into the promoted visitor
experience. The sustainability program should avoid duplication with current NSC operational and
strategic activities and is to focus on concepts such as regenerative tourism. Where possible current
programs are monetised to provide further revenue to TN and diversify funding streams.
• Sunshine Coast Airport Collaboration
Destination marketing activities for Noosa LGA and any product development in conjunction with
Sunshine Coast Airport are to be managed by TN.
• Product development and industry training
TN will maintain a focus on sustainable product development and relevant tourism related industry
training for TN members.
• TN’s role with Local Stakeholders
TN will meet from time to time with business associations and other representative bodies within the
LGA to identify initiatives for the visitor economy and opportunities for collaboration.
• Destination Management Plan (DMP)
NSC expects that the current DMP exercise will inform its future position in relation to the
management of the visitor economy and tourism within the Noosa region. By extension TN may be
expected to implement aspects of the DMP which fall within its ambit as agreed between TN and
Council from time to time after collaborative consultation. The funding and performance agreement
will be reviewed in-line with the outcomes of the DMP with additional terms to be agreed between
TN and NC when the DMP is developed.
• 2 year plus 2 year Funding Agreement\
Funding is on an agreed 2 year plus 2 year basis with discussions to commence for future funding
or extension of this agreement from 1 July 2024 and conclude via resolution of NSC no later than 31
December 2024. Negotiations will commence on the second “2 years” automatically between the
parties on the basis that both have satisfied their obligations under agreement and any concerns or
opportunities arising from the first term will inform those negotiations.
• Efficiency Dividend
Having established a base level of funding for TN in 2023/24 ($2.52M) no further funding is provided
for with the exception of:
Specific projects or events agreed between NSC and TN in due course that align with TN’s
strategies; and
1. An efficiency dividend as an initial Council initiative whereby identified overhead cost
transfers are removed;
2. Future additional funding must be evidenced through TN sourcing it’s own operational
savings through an efficiency dividend.
• Quarterly reporting to Council
A key governance requirement is for TN to report quarterly to the appropriate NSC committee on
expenditure by TN against the objectives under the agreement, activities being undertaken and
return on investment given NSC’s funding of TN’s operations. It is acknowledged that there may be
a lag on return on investment data. It is expected that TN will at a minimum, double NSC’s
Page 4
SERVICES & ORGANISATION COMMITTEE MEETING 11 APRIL 2023
contribution in terms of value. TN will make other regular reports available to an appointed Divisional
Head within NSC and on other significant matters directly to the CEO or Mayor as deemed
appropriate.
• Workforce Planning
As the principal funder of TN, NSC’s funding contribution provides significant support in staff wages
and benefits. As part of this agreement TN will provide to Council a workforce plan, updated every
12 months detailing organisational structure, positions and overall wage expenditure and future
requirements for additional staff as part of a workforce plan.
• Recognition of the Council
NSC is to be recognised as the primary funder of TN. NSC protocols in relation to media, marketing,
communications, community engagement, any and all events ensure that the Mayor, Deputy Mayor
and Councillors are afforded the opportunity to attend in the first instance. If the Mayor or Deputy
Mayor is unable to attend then the opportunity will be provided to the Council observer who is also
to be recognised and invited to all events. TN is to provide opportunities for the NSC Mayor, Deputy
Mayor or the Council observer to access Regional Tourism Organisation, State Tourism
Organisation, National Tourism Organisation events as well as trade and industry events, inclusive
of Queensland Tourism Industry Council at NSC’s cost.
• Finance efficiencies and viability, marketing reserve replenishment, organisational
review
TN commits to undertaking an efficiency and effectiveness review in 2023; replenishing the
marketing contingency reserve to pre-covid levels and ensuring that TN is solvent at all times.
• Alternate revenue streams
TN will identify and explore revenue diversification activities; consider a tiered membership program;
look at generating greater revenue from the Visitor Information Centre; and where possible pursue
grant funding opportunities.
• 4 year strategic plan – destination strategy
TN commit to developing a 4 year strategic plan during 2023 that encapsulates the success elements
of NSC’s funding and performance deed.
• 12 month operational plan, with Council sign off
The 4 year strategic plan is to be delivered by an annual operational plan that will require Council
sign off and TN’s budget will reflect the priorities under the strategy.
• Values of Tourism sustainability, visitor experience, high value / low volume tourism
TN will continue to set the direction for Noosa’s tourism industry, guiding sustainable progress to
improve the visitor experience for the benefit of visitors, businesses and the local community and
environment, achieving marketing strategies that attract high value-low volume visitation through
targeted marketing and promotions.
• Non-compete
TN commits to a non-competition policy with NSC including dispute resolution mechanisms.
Page 5
SERVICES & ORGANISATION COMMITTEE MEETING 11 APRIL 2023
Previous Council Consideration
Ordinary Meeting Minutes 18 November 2021, Item 5, Page 23
That Council note the report by the Chief Executive Officer to the Services and Organisation
Committee Meeting dated 9 November 2021 and the Further Report by the Acting Chief Executive
Officer to the General Committee dated 15 November 2021 regarding the Tourism Noosa Funding
Agreement Review Process and
A. Agree to extend the existing funding agreement between Council and Tourism Noosa for a
further term of 12 months on and from 1 July 2022 on the same terms and conditions as
contained in the existing funding agreement. Noting that Council’s funding is aligned to the
delivery of:
i. Guiding Principles 1 & 2 “Champion the Brand, influencing improved protection and
development of our visitor experience” and “ Deliver marketing and promotion which
drives propensity for high-value visitation, regional and seasonal dispersal” in the
Destination Noosa Strategy 2020-2023; and
ii. The collaborative involvement of Tourism Noosa as one of the stakeholders in the
development of a Destination Management framework, including analysis of options
for Sustainable Destination Accreditation along the lines of that envisaged in Priority
4 ‘Elevate Sustainability’ of the Tourism Noosa Strategy 2017-2022 .
B. Request the Chief Executive Officer to undertake negotiations for a new funding agreement
with Tourism Noosa in the second half of 2022;
C. Note that any new long term funding agreement will not commence until 1 July 2023; and
D. Request the CEO to ensure the agreement is in line with the “Proposed Process” outlined
in the Tourism Funding Agreement Review Process Report to the General Committee
dated 12 July 2021.
Finance
Ongoing financial commitment via the General Rate of $2.52M per annum exclusive of GST.
Risk & Opportunities
Identified within the report.
Consultation
External Consultation - Community & Stakeholder
Tourism Noosa Executive Board members.
Internal Consultation
Departments/Sections Consulted:
x Mayor Community Services Corporate Services
x Councillors Director x Director
Community Development Financial Services
x Chief Executive Officer Community Facilities Fleet
Executive Support Libraries & Galleries ICT
Local Laws Procurement
Waste & Environmental Health Property
Revenue Services
Page 6
SERVICES & ORGANISATION COMMITTEE MEETING 11 APRIL 2023
Executive Services Environment & Sustainable Development Infrastructure Services
Director x Director Director
Community Engagement Building & Plumbing Services Asset Management
Customer Service Development Assessment Buildings and Facilities
Governance x Economic Development Civil Operations
People and Culture Environmental Services Disaster Management
Strategic Land Use Planning Infrastructure Planning,
Design and Delivery