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                                                                       Attachment 1 Item 8
                                   Services & Organisation Committee Agenda 9 August 2016
CCIQ Noosa #3 Noosa Convention & Cultural Centre Initiative
Pre-feasibility Study                                                April 2016




                     CCIQ Noosa #3

  Noosa Convention & Cultural Centre
             Initiative

                 Pre-feasibility Study




                     CCIQ Noosa © 2015-16                            1|Page
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Section 2

CCIQ Noosa #3 Noosa Convention & Cultural Centre Initiative
Pre-feasibility Study                                          April 2016




   Table of   Executive Summary                                             3
  Contents    Initiative Outline                                            4
              Symbiosis                                                     4
              Favoured Site – The J                                         4
              Site Considerations                                           5
              Feasibility Inclusions                                        6
              Comparative Model Scan                                        8
              Purpose / Perceived Benefits                                  9
              General Design Specs / Criteria                               9
              Local Business & Employment Economic Boost                    11
              Regional Business Collaboration                               12
              Venue Management Models                                       12
              Events Noosa and Speakers Bureau                              13
              Accommodation Observations                                    13
              Risk Analysis                                                 14
              Funding / Investment Model                                    16
              Noosa Council History & Policy Alignment                      16
              Harnessing Council and Community Support                      17
              Physical Access Modelling                                     18
              Audience Access                                               18
              Further Location Transport Plan Considerations                18
              Timeframe                                                     19
              Committee / Development Team                                  19
              Appendices                                                    22
              The Value of Business Events to Australia                     23
              Economic Modelling                                            27




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Section 3

CCIQ Noosa #3 Noosa Convention & Cultural Centre Initiative
Pre-feasibility Study                                                                                        April 2016




            This document is intended to promote the commissioning and completion of a
Executive   professionally executed feasibility study into the location, construction and operation
Summary     of a dedicated 300 to 650-delegate convention centre with a 1,000 theatre style
            seating capacity and a >700 seat dedicated performance centre on the same site to
            maximise synergies between the two towards economic benefit across Noosa and
            respond to the need expressed in the Sunshine Coast Strategic Destination Tourism
            Plan.

            The document does not recommend one facility with dual purposing but two distinct
            and complimentary centres operating independently but cooperatively.

            This study identifies niche high-yield segmentation in the meetings, incentive,
            convention and exhibition sector – MICE as productive commerce driver beside
            current events, tourism and environment. The paper introduces a new partner to
            this powerful mix delivered through a serious upgrade to a new cultural facility.

            This paper suggests that a portion of general tourism and a limited spare capacity off-
            peak and mid-week can be replaced with a more profitable convention and delegate
            partner business in the 300+ to 650 delegate event segment, creating jobs, new
            businesses and economic opportunities.

            This paper also suggests that now is the time for a significant boost to culture in
            Noosa to create a business and culture model similar to the leadership centres in
            Banff, Canada, Carmel and Aspen USA. In effect, over the next decade, we ‘own’ and
            make business events and arts – a Noosa Industry. To do this we need unique, world-
            class facilities as described in this paper.

                                               Key attributes at a glance
                                                                                           • Expands high-yield
                   • Spreads risk of a                                                    MICE sector business
                     ‘single’ market                                                                 attraction
                     dominance                                                         • Feeder and fulfilment
                   • Transition from high                                                  provider for cultural
                     volume / low yield to                                                      sector product
                                                                    Convention         • Precursor for creation
                     low volume / high
                     yield for significant    Tourism &                 and            of world-class thought-
                     part of market             Events               Exhibition           leadership centres in
                                                                                        business and creativity
                   • Preserves current                                Centre
                     market and
                     infrastructure limits                 Revitalised
                                                          Brand Noosa
                                                                    Integration
                                                                     with Local           • Brand enhancement
                   • Fulfils 20 year push      Cultural
                   • Links to national arts                          Economic         • Refresh / improve aging
                                               Centre
                     touring circuit                                 Plan and                      infrastructure
                   • Links to schools,                              Noosa Plan          • Substantial skilled job
                     teachers across SC                                                        creation & stable
                   • Feeder and fulfilment                                                          employment
                     capacity for MICE                                            • Diversification of economic
                     sector entertainment                                                                    base
                     needs in bids                                                          • Economic stability
                   • Home for leading local                                          • High relational synergies
                     arts organisations                                                         between sectors
                                                                                      • Iconic design attraction




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Section 4

      CCIQ Noosa #3 Noosa Convention & Cultural Centre Initiative
      Pre-feasibility Study                                                                                                       April 2016




                           The development of a state-of-the-art performance, visual arts, convention and
Initiative                 exhibition centre cross-collateralised functionality within stand-alone and distinct
Outline1                   operations contained within an architecturally iconic building.

                           The aim is to create a cultural and business-tourism hub in central Noosa to refocus
                           the Noosa Brand for innovation, creativity and style.

                           ‘Resident Company2’ status could be allocated to Noosa Long Weekend, Noosa
                           Regional Gallery, Noosa Community Radio, Noosa Jazz Festival, Noosa Federation for
                           the Arts, Noosa Biosphere Institute for Sustainability and Noosa International Film
                           Festival plus aspects of the Noosa Food and Wine Festival. Over time a Professional
                           Theatre Company3 could be established within the facility – a first for the Sunshine
                           Coast.




                           All advice received recommends not to propose a single multi-purpose space which
Symbiosis                  tries to accommodate conflicting technical and operational needs across arts,
                           entertainment, conventions and exhibitions. Rather, the strong recommendation is
                           for two integrated facilities specific for purpose. These have the greatest practical
                           options for attracting business, delivering state-of-the-art services and operating in
                           sympathy rather than conflicting - best fit for best outcomes.




                           Ideally a complete redevelopment of the site currently housing The J is considered to
Favoured Site –            be the best location for a dual arts, entertainment and convention / exhibition centre
         The J             facility. However other location options may be identified during the 2016 Planning
                           Scheme Review.

                           The J site has distinct location advantages. It has the space in terms of footprint area,
                           elevated space requirements and a corner position offering multiple points of access
                           and egress for on-site operation. That being said, the working group recognise some
                           challenges to be considered by the feasibility study – the design must overcome
                           sound ‘bleed’ into the surrounding residential precinct; the design must specifically
                           provide the performing arts and music with a world-class facility; the construction
                           phase should work around established performance timetable demands so as to
                           minimise disruption to established schedules. In fact these criteria should apply to

      1
        “...a venue which develops the region’s identity as a location for business tourism will consequently expand the local economy through
      delegate spend, the provision of supporting infrastructure and services, increased employment opportunities and increased leisure
      tourism via the provision of higher-end accommodation options and enhanced regional exposure.” October 2011 Feasibility Study:
      Sunshine Coast Entertainment, Convention & Exhibition Centre P20.
      “International evidence points to the fact that contemporary entertainment, convention and exhibition centres are increasingly significant
      not just for the core functions suggested by their names, but as important cultural and community hubs and as key identities for
      connectivity across their local communities.” “Cultural vitality and identify are therefore derived in part from such successful centres.”
      October 2011 Feasibility Study: Sunshine Coast Entertainment, Convention & Exhibition Centre P23.
      2
        A term common in the arts and entertainment sectors to designate a preferred expert organisation in a particular field. The status also
      carries an obligation to program a minimum level of content in the ‘home’ centre
      3
        Noosa Arts Theatre not included as they own their own building but they remain a ‘user’ of the larger facility for bigger shows




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Section 5

     CCIQ Noosa #3 Noosa Convention & Cultural Centre Initiative
     Pre-feasibility Study                                                                                 April 2016

                            any final site decision.

                            Current zoning is sympathetic to the purpose with the youth and community use
                            being continued in the redevelopment.

                            Noosa Community Radio 101.3fm could be integrated creatively into the new
                            functionality of the performance, visual and convention broadcast and recording
                            needs.

                            The redevelopment of the space should offer a new home or an adjunct space for
                            Noosa Regional Gallery as the public space exhibitor across all areas of the Centres.

                            Note: No presumptive assumptions around disposition of the current ‘J’ buildings
                            should be assumed. Expert advice as to how the current asset might be functionally
                            preserved and integrated into a wider development is essential.




                            It is highly desirable that the site is close to principal accommodation, central
           Site             attractions, good retail, restaurants, parking and ancillary services. Having all or
Considerations              many of the same conveniences within walking distance would be a significant
                            additional benefit.

                            The Civic site has been considered but is not favoured as it doesn’t tick the boxes of a
                            majority of what are seen as essential factors.

                            The J site has challenges but the positives, if this site can be achieved, for both the
                            performance and gallery spaces and a state-of-the-art convention and exhibition
                            centre are compelling.

                            The dual centres on The J site would refresh even re-birth Noosa Junction, attract
                            new customers, create a new precinct complimentary to Hastings Street, utilise the
                            bus interchange capacity more effectively, bring people into the precinct after hours
                            and create a new hub4 for commerce.

                            A new home for Noosa Community Radio 101.3fm, on site and optically connected to
                            all studios and auditoria, would create a community radio service which is innovative
                            and functional across recording and broadcasting at a new level5.

                            Further investigation is warranted to assess the potential benefits to also link into the
                            Central Queensland University National Video-Conference Network.




     4
         This has occurred in and around The Guggenheim in Bilbao, Spain
     5
         Intellectual performing rights holder permission being granted and obtained




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Section 6

CCIQ Noosa #3 Noosa Convention & Cultural Centre Initiative
Pre-feasibility Study                                                                                                      April 2016


                      1.1.                An assessment of the national and overseas likely mid-segment
Feasibility                               conference demand is expected to be able to be provided through
Inclusions                                Tourism Noosa. [Also see 2013/14 The Value of Business Events to
                                          Australia Report summary in attachments.]
                      1.2.                Early indications from research undertaken6 reveal some 1,800 in-
                                          house organised event opportunities nationally; domestically
                                          another 500 professionally staged events that fit our target segment,
                                          with a further 500 international global tourism events likely to fit the
                                          segment of 400+ to 1,000. Below 300 is the current capacity domain
                                          of the Noosa’s leading hotels and resorts in Noosa and must be
                                          protected7.
                                          BECA report identified the flow on effects ratios for Queensland as
                                          Gross Value Add 1:0.74; Gross Value Product 1:1.74 and Jobs as
                                          1:1.36.
                      1.3.                Estimates of daily domestic overnight FIT sector vs domestic
                                          overnight business / professional spend are: 1:2 (Tourism Research
                                          Australia: Tourism In Local Govt Areas 2013; BECA8 report)
                      1.4.                Two Industry Associations which may provide relevant data
                               1.4.1.              MICE9: Venue Management Association, Steve Rama; MEA,
                                                   CEO Linda Gaunt
                               1.4.2.              Performing Arts: APACA 10is the Australian national body
                      1.5.                Forecast direct revenue, excluding the effect of the economic
                                          multiplier:
                               1.5.1.              2 x Conferences/week x 30 weeks/year
                               1.5.2.              450 Delegates/conference – [Note: partners have been
                                                   excluded from calculations but add between 17%-20% more
                                                   value on average]
                               1.5.3.              average stay of 2.8 days with average spend of AU$956
                               1.5.4.              =AU $25.81m/year
                               1.5.5.              =AU $516.2m over a 20 year horizon (NPV not considered yet
                                                   at this stage)
                      1.6.                In addition, the supply at periods of low conference demand of
                                          conference facilities to local community organisations at a discount
                                          from the conference rate provides a direct additional community
                                          benefit11.
                      1.7.                Market research on likely demand should be carried out by
                                          competent consultants looking at, amongst other things, the
                                          National offer, the price points, what delegates look for, what they
                                          are prepared to pay, how do they get here, what do their partners
                                          look for.
                      1.8.                For feasibility, a computer-generated design is thought necessary to

6
  Four convention centres were visited in preparing this document – IACVB and AACVB figures for global events suggest some 18,000
secretaries organise domestic in-house events; some 500 professionally organised events are held nationally and some 15,000
international events internationally of which 30% tour globally. We have assume only 10% of any of these may fit our segment profile
7
  Top is 250 delegates in conference and 220 delegates in dinner mode
8
   Members include - The Association of Australian Convention Bureaux (AACB); Exhibition and Event Association of Australasia (EEAA);
International Convention and Congress Association (ICCA) - Australian Chapter; Meetings and Events Australia (MEA); Tourism and
Transport Forum (TTF))
9
  Meetings, Incentives, Conventions and Exhibitions
10
   Australian Performing Arts Centres Association
11
   Local state and the private schools, professional schools e.g. dance and arts academies




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Section 7

CCIQ Noosa #3 Noosa Convention & Cultural Centre Initiative
Pre-feasibility Study                                                                                                      April 2016

                                          get a ballpark figure of number of seats etc. Like all niche markets
                                          such as libraries & sports stadiums, there are architectural firms that
                                          specialise in this sort of work and can usually be commissioned on a
                                          retainer. Such a firm may be selected through a competition.
                      1.9.                The architects should be able to provide a ‘cost range’ which could
                                          be checked with Graham Lukin the cost estimator at Maroochydore.
                     1.10.                Note that the economic planning period applied in the October 2011
                                          Feasibility Study: Sunshine Coast Entertainment, Convention &
                                          Exhibition Centre, p41 is 30 years against ours of 20 years.
                              1.11.       APACA believe that all performing arts centres in Australia trade at a
                                          loss unless participating in a national performing arts touring circuit12
                                          of commercially successful shows or gaining revenue opportunities
                                          from the likes of event activity. Where such a centre is part of a
                                          MICE based integrated facility, such mixed-mode multi-venues
                                          support each other financially and attract better business prospects.
                                          One current metric used in Australia for assessing the direct
                                          economic benefit of a convention centre is a per head delegate
                                          ‘spend’ of AU$377/bed-night (covering F&B, accommodation and
                                          transport, but excluding retail spend). The indirect spend includes
                                          specialist services associated specifically due to each event –
                                          speakers, exhibition construction services, sound and IT, casual staff
                                          and gifts13. Average daily spend for international delegates is $440,
                                          which increases to $586 for interstate delegates. One of the main
                                          reasons for this difference is because domestic airfares are included
                                          in the interstate calculation, but not the international one. (p15, The
                                          Value of Business Events to Australia, Business Events Council of
                                          Australia. Feb 2015)
                                          For Australian business events, 60% of delegates are intrastate, 34%
                                          are interstate and 6% are international. This is important because the
                                          per day delegate spend differs significantly. (p15, The Value of
                                          Business Events to Australia, Business Events Council of Australia. Feb
                                          2015) This figure includes retail spend and other incidentals –
                                          recreation, theatre etc.
                                          Queensland currently hosts 16% of all business events in Australia,
                                          attracting 18% of all business event delegates and visitors. (p4, The
                                          Value of Business Events to Australia, Business Events Council of
                                          Australia. Feb 2015)
                                          While it is challenging to obtain regional figures, indications of the
                                          current worth of Business Events to the Sunshine Coast region (as it
                                          is defined by Tourism & Events Queensland) suggest a figure in the
                                          vicinity of $59 million annually into to the local economy.
                                          Indirect value added is determined as an additional 48.2% on top of
                                          direct value / daily expenditure. (p1, The Value of Business Events to
                                          Australia, Business Events Council of Australia. Feb 2015)
                              1.12.       Tourism Noosa advise that the current average stay of an FIT14 stay in
                                          Noosa is currently 4.4 days (YE June 2015), with an average spend


12
   The ‘J’ is not part of this circuit
13
   The Meetings Industry Association of Australia advise that the trickle-down multiplier effect of MICE is currently forecast as 1:?
Whereas general tourism is 1:? making MICE a more attractive economic proposition for Noosa given our size and capacity restrictions
14
   Free Independent Traveller




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Section 8

  CCIQ Noosa #3 Noosa Convention & Cultural Centre Initiative
  Pre-feasibility Study                                                                                                       April 2016

                                             per night of $176.
                                  1.1.       International delegates on the other hand stay in the host region for
                                             an average of 4.6 days, while interstate delegates stay an average of
                                             3.1 days. Intrastate delegates stay on average 1.5 days. (p15 BEC
                                             Report)
                                1.13.        If delegates and partners15 can be encouraged to arrive early and/or
                                             stay longer this maximises the economic benefit and profitability as
                                             they use more services and activities In the low season this
                                             expansion of stay can greatly benefit mid-week volumes, many of
                                             whom don’t use vehicles in and around Noosa16. Globally, 66% of
                                             event planners, suppliers and clients collectively predict an increase
                                             in attendance at live business events. (p5, MPI Meetings Outlook
                                             2015)
                                             Using the Australian Bureau of Statistics’ input-output tables,
                                             tourism’s total output multiplier is valued at 1.91. This means for
                                             every dollar tourism earns directly in the Australian economy, it value
                                             adds an additional 91 cents to other parts of the economy. At 1.91,
                                             tourism’s total multiplier is larger than other important industries
                                             such as mining (1.67), retail trade (1.80) and education and training
                                             (1.38).”17




                                 Aspen USA, Carmel USA and Banff CAN
Comparative                a.    Parallels: each of these exhibit engaged, strong communities, strong seasonal
 Model Scan                      arts and sports activity, beautiful natural environment, financially-secure
                                 residents and retirees, strong seasonal tourism and enviable international
                                 reputations
                           b.    Aspen is successful in getting Retail alignment: shops stay open late to
                                 provide opportunities to service and inspire retail spend
                           c.    Aspen has the Institute of Ideas: a potential link for Southern Hemisphere
                                 events and conferences to be hosted here18
                           d.    Banff has the Banff Centre for Leadership and the Arts
                           e.    Both are connected to the Australian Creative Skills Training Centre which has
                                 previously expressed interest in relocating to Noosa19
                           f.    Carmel is noted for aesthetic architecture, community engagement and
                                 special planning codes. Annual arts and cultural events attract large annual
                                 visitation.




  15
     WOTIF rated Noosa #2 in its Top 10 desirable places to visit in January 2016 across its massive user-base
  16
     Boosts use and rationale for a shuttle or light transport system between points of interest
  17
     Gretton, P. 2013 On input-output tables: uses and abuses, Staff Research Note, Productivity Commission, Canberra.
  18
     NLWF is introducing the Festival of Ideas into its program in 2016. A NLWF patron has set up the business infrastructure for a Noosa
  Institute and has recently been in Aspen. This Institute concept has been discussed informally with USC who are supportive
  19
     Originally considered through the Noosa Institute for Sustainability proposed under Noosa Biosphere v1.0




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Section 9

     CCIQ Noosa #3 Noosa Convention & Cultural Centre Initiative
     Pre-feasibility Study                                                                                                      April 2016


                              a.    Current Noosa MICE20 capability is capped at around 250 delegates with only
     Purpose /                      three facilities being able to offer these numbers and having even less
     Perceived                      capacity to attract associated and highly-profitable exhibitions attached to
                                    meetings, exhibitions, conventions and importantly cultural tourism events
      Benefits                      which have an even higher multiplier flow-on effect.
                              b.    While the current venues can cater to these numbers for conference sessions
                                    (with theatre-style seating), no venue can cater for a sit-down function for
                                    more than 220 delegates.
                              c.    A well executed move to shift a larger portion of Noosa’s tourism demand
                                    away from general tourism and into the higher yield MICE sector is indicated
                                    as possible, practical and economically sensible21
                              d.    Seasonally, Tourism Noosa members and tourism generally have unused
                                    inventory capacity of some 15%. Aiming to move 20% of current visitation
                                    towards MICE allocation substantially increases industry and business
                                    profitability, stabilises the economy22, expands add-on and ancillary
                                    businesses and creates extra capacity in services while also lifting local
                                    employment opportunities, all driven by the creation of new state-of-the-art
                                    infrastructure
                              e.    Such a move is strengthened further when an adequate, modern and
                                    purpose built performance space is included – servicing convention and event
                                    needs for an auditorium space and local demand for a larger, modern and
                                    dedicated performance facility with ‘resident’ users23
                              f.    Re-generation of The Junction Precinct
                              g.    Placing a new major infrastructure development on the access boundaries of
                                    Hastings Street and Gympie Tce without overloading either’s ambiance
                              h.    Enable Noosa to bid for larger MICE and performance events than currently
                                    possible via co-operative, town-wide multi-venue bids24
                              i.    Provide superior ‘dry25’ facilities for existing Events / Festivals / Weddings
                                    Market26 (e.g. compared to marquees in Lions’ Park)


                                   Performance Criteria:                              MICE criteria:

General Design               1.1.     The Study Team initially                        1.4.2.      A visually iconic design
Specs / Criteria                      favoured a multi-purpose venue                  1.4.3.      A sustainable design, capable of
                                      which could satisfy both MICE                               meeting 6-Star Green Building
                                      (Meetings, Incentives,                                      Council of Australia
                                      Conventions, & Exhibitions) and                             accreditation. Integrate a
                                      Performing Arts’ requirements.                              sustainable convention centre



     20
        Meetings, Incentives, Conventions and Exhibitions
     21
        Brisbane Marketing (formerly Brisbane Convention and Visitors Bureau did this successfully in the ‘90s)
     22
        Tourism visitation accounts for 72% of the Noosa economy but is predominantly short stay (risks profitless volume scenario).
     Transitioning a larger share to the high-yield MICE sector makes economic sense.
     23
        Noosa Arts Theatre, Noosa Long Weekend Festival and Noosa Regional Gallery
     24
        Another advantage is ticket prices for performances can be more affordable and potentially attract more visitors and production costs
     can be amortised across a bigger number of seats
     25
        Alternative back-up venue thereby reducing risk of event failure due to weather
     26
        A high-yield growth market for Noosa




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Section 10

CCIQ Noosa #3 Noosa Convention & Cultural Centre Initiative
Pre-feasibility Study                                                                                                 April 2016

                               However, the Team received                                within a sustainable Noosa
                               expert advice to absolutely not                           Junction precinct.
                               attempt to serve both markets                  1.4.4.     An innovative design
                               in a single multi-functional                   1.4.5.     600 banquet style capacity
                               space.27                                                  giving up to 1,000 theatre-style
                      1.2.     Accordingly, the Team suggests                            capacity. A critical market-size
                               that the Performing Arts’                                 insight from the Convention
                               requirements be addressed in a                            Centre visits was that the
                               separate dedicated, second                                majority of the MICE business in
                               building. Those principal                                 the mid-segment was in the
                               requirements include:                                     350- to 450-delegate range.
                    1.2.1.     A motorised Fly-Tower                          1.4.6.     High ceiling
                    1.2.2.     An orchestra pit with a lift                   1.4.7.     Provision for access to natural
                    1.2.3.     Improved acoustics                                        light
                    1.2.4.     A commercial kitchen                           1.4.8.     Flexible Wall and Seating
                    1.2.5.     Theatre style seating capacity of                         systems, providing for both
                               at least 70028                                            multiple meeting rooms, &
                    1.2.6.     Provision to break into two                               meeting rooms of a range of
                               performance spaces                                        sizes
                    1.2.7.     A wider Stage: 12- 15m                        1.4.9.      Commercial kitchen
                               (currently 10m at The J); with a             1.4.10.      State-of-the-art Audio Visual
                               Sprung Floor (for Dance)                                  equipment; hi-speed Internet
                    1.2.8.     A lower “Rake” for seating is                             connectivity; Whole-of-Shire
                               likely to be more amenable to                             Video-Conferencing capability,
                               the local population, but                                 to allow for real-time
                               requires relatively more floor                            connection of Presenters to
                               space                                                     other venues within the Shire,
                   1.2.9.      More Dressing rooms                                       and for Q&A from other-located
                  1.2.10.      Provision for on-site scenery                             audiences to that Presenter;
                               and flats storage with off-site                           Media Centre
                               backup                                       1.4.11.      Wet-weather connectivity to
                  1.2.11.      Storage facility for Flats (either                        the site
                               onsite or offsite)                           1.4.12.      Close proximity to Civic space:
                  1.2.12.      A model to be considered as an                            Sunshine Beach Road, Noosa
                               operating example of facilities                           Junction. Also to a Park:
                               and fit-out is the new                                    Pinaroo.
                               Conservatorium in Brisbane. A                1.4.13.      Retain the ability of The J to
                               set of specifications for this                            operate stand-alone; while at
                               building is attached.                                     the same time, allowing for its
                      1.3.     Discounted alternate                                      inclusion as a significant
                               performing arts’                                          additional space as part of a
                               buildings/locations include:                              larger, site-wide conference.
                    1.3.1.     Upgrading of the Bicentennial                             Develop integrated Technical




27
   Two important performance arts spaces to reference as guides are Mandurah Performing Arts Centre in WA and Ashburton Trust
Events Centre in Ashburton NZ – both are available to offer advice through Guy Harrison
28
   A break-even point needs calculation based on the venue cost and life cycle projections




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Section 11

    CCIQ Noosa #3 Noosa Convention & Cultural Centre Initiative
    Pre-feasibility Study                                                                                                          April 2016

                                      Hall29                                                        Services and Volunteer
                          1.3.2.      Noosa Civic Stage 2, as part of                               Management to cover both
                                      any negotiation with QIC30                                    buildings
                            1.4.      In conjunction with an           1.4.14.                      Superior equipment loading
                                      expanded Noosa Arts Theatre31                                 facilities, including a Vehicle
                                      (NAT as the Resident Theatre                                  Turntable. Direct vehicle access
                                      Company with Noosa Long                                       to the main stage.
                                      Weekend Festival and having      1.4.15.                      Walking distance to public
                                      Resident Arts and                                             transport
                                      Entertainment Event status A 1.4.16.                          Ample parking available but not
                                      recent alternative suggestion,                                underneath the centre.
                                      first put to the Team in
                                      December 2015, is for the
                                      Noosa Regional Gallery to be re-
                                      located and upgraded - housed
                                      on the ground floor32
                          1.4.1.      Both Tourism Noosa and The
                                      Noosa Wedding Organisation
                                      have requested the inclusion of
                                      a space which could be re-
                                      purposed as required as a wet-
                                      weather Wedding Chapel,
                                      capacity approx. 150.


                         Expanded opportunities are likely across:
Local Business              a. Construction Phase
& Employment                    Building services for construction
                                Specialist trades and services for fitout
    Economic                    Supply of specialist equipment across the needs of each centre and
        Boost                     ancillary areas
                                Upgrade, refit and new construction of commercial premises in the
                                  Junction towards centres opening and attracting new trade
                                New construction of accommodation properties to meet increased
                                  accommodation needs – high class inventory
                            b. Operation Phase
                                Wider range of new job prospects in the Junction commercial precinct
                                New businesses to occupy current and new commercial space
                                Opportunity for a return to Noosa style creative designs and products
                                  under the planned new Noosa branding initiative
                                New jobs across the functional areas of all facilities in the new centres –
                                  F&B, ushers, technical, front-of-house, back-of-house, management and
                                  other specialists
                                New opportunities for local/regional subject matter experts as keynote

    29
       Impractical due to 18 year sports lease and lack of any performance technical infrastructure which has been removed
    30
      Location is incompatible with desired integration as part of conference facility to sustain economic viability unless both are relocated to
    this site
    31
       Noosa Arts Theatre seen as a preferred ‘user’ of a new theatre complex and meets their aim of a minimum 500 seat performance space
    within five years
    32
       Alternatively, the gallery space could be designed as the functional Performing Centre foyer – similar to arts spaces in Europe and USA
    where the synergy between art forms flow across and through each others physical spaces.




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   Pre-feasibility Study                                                                                          April 2016

                                      speakers, session presenters, etc.
                                     New opportunities for local entertainment industry to provide conference
                                      evening entertainment
                                     New work based around event needs – graphic design, decorating, hire
                                      (technical and costume), marketing, public relations, advertising and
                                      printing etc.
                                     Shift in accommodation capacity demand to higher-value custom
                                     Spare capacity of product and services tourism sector e.g. hire and tours,
                                      is taken up by delegate partners programs organised by PCOs or direct
                                      bookings
                                     Employment stability as demand peaks and troughs are progressively
                                      flattened
                                     Stability in rental market for employees
                                     Paddock to plate/ offsite food catering services to provide par
                                      prepared/portion controlled menu items
                                     Greater demand for regional farm products
                                     Increased demand for offsite delegate ‘experiences’ – tourism operators,
                                      tours, transfers
                                     Attraction of high end technical specialists to region to support centre and
                                      conference organisers high end technical needs




                              a.    Given the current paucity of Convention Centre facilities on the Sunshine
     Regional                       Coast, exacerbated by the recent closure of the previously-branded Hyatt
     Business                       Coolum Resort and Nambour Civic Centre, an additional facility of this size is
                                    likely to be well-received across the Region and would reflect well on an
Collaboration                       innovative Council seen to provide a substantial infrastructure project for the
                                    benefit of future generations.
                              b.    It is substantially smaller than the proposed 4,500-seat Sunshine Coast
                                    Entertainment, Convention & Exhibition Centre, and also has a more
                                    segmented focus on the high-yield segments within the MICE sector. This
                                    segmentation should reduce competitive bidding between each facility.
                                    Further, any accommodation demand not met within the Shire is likely to be
                                    served by accommodation providers elsewhere on the Sunshine Coast,
                                    thereby delivering a direct economic benefit from the operation of the
                                    proposed Noosa Convention Centre
                              c.    The proposed dual purpose Centre is supported by the 3 major Noosa
                                    Resorts33, as it will not compete by including accommodation. Secondly, it will
                                    enable the joint-bidding of the Convention Centre and one or more of those
                                    Resorts for larger conferences which currently cannot be serviced.




                              a.    The Team was advised to carefully consider whether the Venue should be
     Venue                          Council-managed or Board-managed34. Other options are 100% privately
Management                          owned and operated; or Council/Govt owned with private company

   33
        Sheraton, Peppers and RACV Noosa Resort
   34
        An opportunity to establish an eminent persons board of trustees to manage a Foundation for the centre




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    Pre-feasibility Study                                                                                                       April 2016


         Models                    management lease like Ogden
                                    i.   A preference towards either choice is likely to be an outcome of the
                                         financial mix
                                   ii.   A staged management framework might also be considered with
                                         Council initially managing the facility for five years then transition to an
                                         independent board
                             b.    Similarly, the Team was advised that it was critically important to appoint the
                                   Venue Management at the start of the Design & Construct phase35 along with
                                   the Senior Sales Executive 2 years in advance of facility completion.




                             a.    The Team was advised that a new entity, Events Noosa, should be created, to
 Events Noosa                      build and maintain a local, national and international36 MICE prospect
 and Speakers                      pipeline, to co-ordinate bids, and to maintain customer relationships both
                                   pre- and post- event execution with the Centre37
       Bureau                b.    This new entity could either be independent38, or sit within Tourism Noosa39.
                             c.    In either case, a key competitive role of Events Noosa would be to partner
                                   with the new Centre to deliver comprehensive MICE training programs to
                                   businesses who have not dealt with the special needs of business tourism
                             d.    An opportunity to create a unique Speakers Bureau appears likely through a
                                   Noosa Biosphere partnership with Events Noosa40. Offering a ‘bank’ of local
                                   and imported talent sympathetic to biosphere values and expert in key
                                   trends (refreshed annually) as fill-in speakers on aspects of our UNESCO
                                   Biosphere classification would be especially attractive to international events.
                             e.    As part of an enhanced Brand Noosa it is forecast that events could be
                                   developed and comprise a third pillar industry for Noosa, the others being
                                   the environment and general tourism.




                             a.    Announcement of a serious intention to create this facility offers property
Accommodation                      management rights holders and owners advance notice to consider inventory
Observations                       upgrade to meet new standards for inclusion in high-yield Business Tourism
                             b.    The study Team recognises that, in the short term at least, higher-paying
                                   professional conference delegates may out-compete FIT tourists for the
                                   stock41 of available 4-5 star accommodation especially for bookings for
                                   activities conducted over weekends, or during traditional seasonal periods of


    35
       APACA recommendation with examples where not to do so have caused serious logistical and management problems.
    36
       Through membership of MIAA – Meetings and Events Australia MEA, AACVB – Australian Association of Convention and Visitor Bureaux
    and IACVB – International Association of Convention and Visitor Bureaux
    37
       The Centre would operate marketing for MICE business as part of a consortium initially being the Centre, Tourism Noosa and Events
    Noosa.
    38
       As Sunshine Coast Events is independent of Sunshine Coast Destination
    39
       Requiring a reorganisation of Tourism Noosa structure and membership similar to those undertake by bureaux in Brisbane and Sydney
    some 20 years ago
    40
       Expandable to a Biosphere Tour Guide business with up to 12 new jobs created
    41
       Tourism Noosa is currently researching number of available local rooms (was 6,500 six years ago, before Peppers Noosa built); and their
    classification




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  Pre-feasibility Study                                                                                                         April 2016

                                      high FIT demand42
                           c.         In the medium term, it is likely that there will be a market response to the
                                      forecast increased accommodation demand which, it is hoped, would result
                                      in upgrading of existing accommodation, and/or the building of new
                                      accommodation. The earlier that Council signals to the market that it may
                                      proceed with the construction of the proposed Convention Centre, the more
                                      likely a timely increase in visitor accommodation could be achieved
                           d.         The review of the Noosa Plan (due to commence in 2016) should consider
                                      and allow for such a potential increase in forecast visitor accommodation
                                      were the Centre to go ahead




                           a.                  Funding:
Risk Analysis                           i.         Council maintains an ongoing prioritised list of potential
                                                   infrastructure projects for funding by appropriate State and/or
                                                   Federal bodies. Currently a prospective Convention Centre may
                                                   not be t the top of that list
                                       ii.         Competition from other Regional locations for State and/or
                                                   Federal funding

                           b.                  Budget business hotel chains:
                                i.                Lack of some budget business-chain hotels, mean that PCO’s
                                                  would be unlikely to be able to construct a deal with sufficient
                                                  margin for them. However MICE type conventions are usually
                                                  targeted at the high end attendee.
                                ii.               There is availability most times of the year in other locations of a
                                                  large number of corporate hotel rooms favoured by
                                                  Conferences, eg Ibis/Oak/Best Western/Ramada. These typically
                                                  compete strongly on room price but are no-frills. Larger
                                                  companies are likely to run corporate accounts with these chains
                                                  for their normal business, and will expect reduced rates.

                           c.                  Air Transport:
                                        i.          Opportunity to seek a boost in direct air access from other than
                                                    Sydney and Melbourne and expansion of business class
                                                    (currently only Qantas). There is no direct link to Regional
                                                    Queensland, Toowoomba, regional NSW, unlike rival
                                                    destinations such as Gold Coast, Cairns, Mackay, Rockhampton
                                                    in Queensland.
                                       ii.          While the Sunshine Coast Airport doesn’t deal regionally, its
                                                    interstate and international passenger traffic increased 19% in
                                                    2015. Additional services from Virgin, Jetstar, Air NZ and Qantas
                                                    have increased carrying capacity this summer.
                                      iii.          In addition, the proposed upgrade of the Sunshine Coast Airport
                                                    and Qantas expressed intention to offer Business Class may
                                                    address some of these concerns.


  42
    Local and national MICE are less likely to conflict around school holidays, public holidays and Xmas / NY while international
  opportunities will be insensitive to these peaks




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             d.           Venue Depreciation
                  i.         While most venues run at a loss, this is often caused by the
                             depreciation expense. As they are often built by Government
                             capital grants and ultimately replaced by another government
                             grant, this could be seen as an accounting conundrum given
                             depreciation is a non cash item.
                  ii.        The normal rule of thumb is that the Venue owner covers the
                             considerable depreciation from general revenue, ie rates/taxes,
                             possibly giving rise to an across-the-board rate rise.

             e.           Site Impacts
                  i.           Building noise (air-conditioning), lighting, performance noise etc.
                               will all need to be addressed, as will traffic management. While
                               these will require technical solutions, these issues would be
                               addressed in a feasibility study.

             f.           Grant Conditions
                  i.          Such buildings are usually built using substantial Federal/State
                              funding, which would normally have topical building
                              requirements, e.g. Greenstar, sustainability, carbon footprint,
                              public art or regional economic job creation.




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    Pre-feasibility Study                                                                                                           April 2016


   Funding /                  a.    Using a recently constructed convention centre, as a comparative cost model,
                                    the construction and fit-out of an entry level convention and exhibition
  Investment                        centre component as specified here, could be in the $15 to $20 million range.
       Model                  b.    Upgrading the J to the specification given here, a modern performing arts
                                    complex is estimated to add at least a further AU$7 to $10 million.
                              c.    The Premier of Queensland encouraged Noosa to submit a proposal43 to
                                    government for funding support in the 2016/17 State Budget.
                              d.    A State Budget submission for 2017/18 is feasible and should be pitched at
                                    AU$30m for all components of the development.
                              e.    Regional Development Australia, Sunshine Coast should also be approached
                                    for funding.
                              f.    Should Council prefer not to allocate budget to this project, it might choose
                                    to tender the construction and operation of the building on a “Build Own
                                    Operate Transfer” basis, with the building being returned to Council
                                    ownership in 20+ years.
                              g.    The current Sunshine Coast Strategic Destination Tourism Plan, in the
                                    Infrastructure section, states that the building of new Convention Centres has
                                    been identified as a need for the Region. This statement will be powerful in
                                    terms of seeking funding from Government.
                              h.    The options suggested in d, e and f could be considered as at opposite ends
                                    of a funding continuum, between which lie many different combinations of
                                    funding44 45
                              i.    Consider the potential sale of Naming Rights, as one of a number of sources
                                    of annual operating fund mechanisms
                              j.    Council’s recent strong surplus of AU$7.8m for the year-ending June 2015
                                    may make Council a more attractive recipient for State/Federal funding,
                                    given its responsible financial management.




                              a.                Local Economic Plan (LEP) 2015
Noosa Council                          i.                Section 4: Essential Infrastructure
    History &                 b.                Carbon Reduction & Energy Efficiency Plan- Discussion Paper 2015
                                       i.                Re “Council’s Role”, which includes “Leading by example and
        Policy                                           inspiring change”, an appropriately designed & operated
   Alignment                                             building could become an exemplar for local behavioural
                                                         change
                              c.                Social Plan 2015
                              d.                The Council under the File name ‘Grant St Development’ which is

    43
        Letter dated 1 February 2016
    44
       “...a new regionally important facility that provides opportunities to host major entertainment events and corporate business tourism
    programs has a significantly higher prospect of securing Federal and State funding than a facility that is perceived as primarily serving the
    local arts community (and not adding to the size and diversity of the regional economy).” October 2011 Feasibility Study: Sunshine Coast
    Entertainment, Convention & Exhibition Centre, p21.
    “All the major capital city convention and exhibition facilities in Australia are government owned; reflecting the strategic social and
    economic importance of these facilities to the broader economy.” October 2011 Feasibility Study: Sunshine Coast Entertainment,
    Convention & Exhibition Centre, p53.
    45
       Summary of capital costs and funding mechanisms for the major Convention Centres in Australia: pp57- 61, Sunshine Coast
    Entertainment, Convention & Exhibition Centre.




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                           possibly held in Archives would hold extensive technical data relating
                           to The J site. In particular this would include levels and as
                           constructed drawings of the Master Drainage scheme constructed
                           under the car park and road access. These would also be held in
                           electronic form in Council’s Asset register.
              e.           At one stage Council considered the construction of a multi level
                           backpacker accommodation on the site (120+ persons) and or placing
                           the Transit centre on the site with bus terminus and multi storey car
                           parking, as an overflow to Hastings St and the Junction. There would
                           therefore be considerable data relevant to a major structure in that
                           location.
              f.           Tod and Partners’ Phil McGrath was the consulting engineer for the
                           site and Adam Britton a Council employee was the site project
                           manager.
              g.           The Brisbane Convention and Exhibition Centre has 1,500 cark parks
                           servicing a total of 172,000 m2 - 44 meeting and convention rooms
                           plus 20,000 sqm of exhibition floor. Their concurrent capacity is
                           35,000 people (includes 4 exhibition halls, great hall, plaza ballroom
                           and terrace room). This equates to about 1 car park per 23m2.
              h.           It will be important to understand where the building height for the
                           site will be measured. Street level at Grant St is the preferred
                           location to give the maximum permissible height.
              i.           What is Council’s 100-year Flood level for this site?
              j.           Need to engage with Council’s 2016 20yr Transport Plan




              a.   This project is capable of being initiated and completed within one Council 4-
 Harnessing        year term of office
Council and   b.   Any decision in 2016 to conduct the Feasibility Study will align with the 35th
                   anniversary of the Noosa Regional Gallery
Community     c.   This project is capable of becoming one manifestation of a successful delivery
   Support         of Local Economic Plan (LEP) Essential Infrastructure and of the LEP itself.
              d.   A visually-iconic design, in conjunction with the achievement of a 6-Star
                   Green Building Council of Australia accreditation, could further augment
                   Noosa’s already-iconic image globally
              e.   The project is an excellent way for a new council to engage the community to
                   support the initiative at a number of levels:
                         An iconic facility bringing new and interesting cultural and business
                            opportunities to Noosa
                         Economic benefit in terms of new and different employment
                            prospects, greater food, beverage and retail stability, new businesses
                            creation to service new needs
                         Seasonal risk would be further reduced resulting in broader job
                            security
                         Supports various levels of overall Brand Noosa with flow on to real
                            estate values, liveability index and improved community
                            infrastructure / assets




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     Pre-feasibility Study                                                                                                         April 2016


                          Specialist modelling of large transport vehicle access and egress has been identified
Physical Access           as essential. No cost estimate for any such modelling or works to facilitate access is
   Modelling46            known.

                          The performance space, gallery, convention area and exhibition hall require
                          pantechnicon access on-site. This may require street access turning space,
                          underground turntable mechanics and industrial heavy lift elevators.


                              a.     The J (a Youth and Community Centre) has approximately 45 car spaces.
                                     These are in addition to Council provided 25 permanent spaces along the
      Audience                       frontage to Cooroy Noosa Rd. All these spaces would be subsumed into the
        Access                       centre’s need for on-site parking and vehicle access.
                              b.     Adequate bus and coach arrival and drop off at the front and potentially sides
                                     of the facility will be mandatory.
                              c.     Other adjacent car spaces47 to be modelled may include Coles car park, the
                                     old Club car park and the parking behind the ANZ Bank and Noosa Five
                                     Cinema complex. It is suggested that these spaces be redeveloped to
                                     increase capacity arising from the transport analysis and centre transport
                                     demand model
                              d.     Dedicated parking for centre employees, bump-in/out trade services and
                                     short-term deliveries should be planned for
                              e.     Any transport study relative to this proposal should reach as far as the
                                     relatively new Transit Centre, Sunshine Beach Rd (Noosa Jct. South-East)
                              f.     All weather access from the centres to adjacent car parks would be highly
                                     desirable.


                              a.     Creation of the new dual purpose Centres gives rationale to further
       Further                       consideration of a possible free public mass-transit resource such as a fleet of
      Location                       appropriately sized electric buses, in conjunction with the identification of a
Transport Plan                       “Circle-Route” which would pass the major accommodation properties
Considerations                b.     A reliable and frequent Schedule could be developed, with regular departures
                                     no longer than every 10 minutes during periods of peak use (for example,
                                     from 60 minutes before the daily scheduled conference start time, and from
                                     60 minutes after the daily scheduled conference finish time)
                              c.     The development of such a critical piece of transport infrastructure could also
                                     deliver significant community amenity and benefit, to both residents and
                                     non-conference tourists utilising a refreshed Junction Precinct
                              d.     Any Transport Plan to be approved for the redevelopment of the Coles’
                                     Noosa Junction site should allow for the potential transport requirements of
                                     a prospective Convention Centre in the Junction
                              e.     An alternative transport solution could include a string of open-sided
                                     carriages towed behind an appropriate vehicle, turning the transit period into
                                     a tourist experience in its own right
                              f.     Expert advice warns us that underground parking as part of both facilities is a

     46
       Note pedestrian and parking observations under Audience Access
     47
       Including the price of a car park in the ticket price is a consideration with modern technology providing GPS direction to a predesigned
     reserved space.




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CCIQ Noosa #3 Noosa Convention & Cultural Centre Initiative
Pre-feasibility Study                                                                   April 2016

                   booking deal breaker due to concerns about terrorism attack. Parking must
                   be separate. Noosa can be the first in Australia to offer this as a point-of-
                   difference advantage.




              1.  Submission to Council of pre-Feasibility Study: 30 April, 2016
Timeframe     2.  Council invites bids to conduct Feasibility Study: 31 July, 2016
              3.  Council selects service provider to conduct Feasibility Study: 27 September,
                  2016
              4. Feasibility Study presented to Council: 28 February, 2017
              5. Council decision to build the Convention Centre: 26 April, 2017
              6. Project definition, business case, design and fundraising to June 2018
              7. Council invites bids to build the Convention Centre: 27 June, 2018
              8. Council selects service provider to build the Convention Centre: 31 October,
                  2018
              9. Construction commences: 30 January 2019
              10. Construction completed: 29 January 2020




                    Rick Cooper              Founding President Tewantin Community
Committee /         Chair                    Association, past Chair Noosa Community Tourism
Development                                  Board, Vice Chair Tourism Noosa, member Council
Team                                         Transport Reference Group, Tewantin Masterplan
                                             Committee, Strategic Reference Group, and Local
                                             Economic Plan 2015 Focus Group. Past Director
                                             Tourism Sunshine Coast, principal Elders Real
                                             Estate Tewantin, now Chair Sunshine Coast
                                             Community Financial Services owner operator four
                                             local Community Bank branches.

                    Peter Chenoweth          Peter started-up and ran an events business based
                    CCIQN                    in Melbourne for 13 years, specializing in
                                             Conferences and Association management. He is
                                             President of CCIQ Noosa.

                    Michael Donovan          Michael spent 20 years in senior executive
                    Independent              positions in international tourism including the
                    Adviser                  MICE sector marketing convention and exhibition
                                             centres and a similar time in high end
                                             international arts and entertainment. He served
                                             for some years as community chair of Tourism
                                             Noosa and inaugural community chair of Noosa
                                             Biosphere Ltd.

                    Juanita Overson          Juanita Overson was appointed Chairman of
                    Noosa Federation of      Noosa Federation of the Arts last year after a
                    the Arts                 10year involvement with the organisation. She has
                                             a Licentiate in Music, Associate in Classical Ballet,



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CCIQ Noosa #3 Noosa Convention & Cultural Centre Initiative
Pre-feasibility Study                                                             April 2016

                                       has worked with the Sydney Contemporary Dance
                                       Company and in Musical Theatre Productions.

                 Christine Prichard    Chris has 30yrs Tourism & Hospitality Industry in
                 Independent           executive management roles in the international
                 Adviser               resort hotel and major conference sectors
                                       including hosting nationally and internationally
                                       televised major events. Judge QHA Annual Awards
                                       for Excellence. Chair Noosa Open Studios event.


                 Elizabeth Reynolds.   Commercial Barrister & Solicitor. Worked
                 LL.B                  extensively in Australia and internationally. Moved
                                       to Noosa Hinterland 15 years ago when bought
                                       and operated 2 tourist properties. Currently
                                       Deputy Chair Tourism Noosa Ltd and board
                                       member SCCFS Ltd (see Rick Cooper bio
                                       above). Formerly a board member of Queensland
                                       Literary Awards which recently achieved
                                       reinstatement of the Premier's Literary awards in
                                       Queensland.

                 Liz Rivers            Liz has worked exclusively in the business events
                 Queensland            and business tourism sector for 25 years. She is a
                 Signature Events      former long-term Chair of Meetings & Events
                                       Australia (QLD) and was co-founder of the
                                       Queensland chapter of the International Special
                                       Events Society – the world’s premier society for
                                       Event Professionals.

                 John Spence           After 20 years in the international steel industry,
                 Thomas                John settled in Brisbane in 1982, leading a major
                 Independent           review of Australia's Antarctic operations before
                 Adviser               establishing Marinex/IBS, marine project
                                       managers. Selling Marinex in 1989, he joined
                                       Gibsons Consulting, focussing on economic
                                       development. In 2006, John sold Gibsons and
                                       moved to Noosa. He chairs the Gravelroad Group
                                       Board.
                 Synda Turnbull        Local business owner has a great passion for the
                 Design Central        arts, and was President of the Sunshine Coast
                                       Theatre Alliance for 10 years. She has been a
                                       Committee Member at Noosa Arts Theatre, where
                                       she is a Life Member, and at Lind Lane Theatre in
                                       Nambour when she Project Managed the
                                       construction of their new 1.2 million state of the
                                       art theatre, in 2005. The only ‘community’ theatre
                                       on the Sunshine Coast with a fly tower.
                                       Throughout this process she learned a lot about
                                       the correct construction methods for building a



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                                    successful Performing Arts centre.

                 Johanne Wright     Johanne is President of the Noosa Long Weekend
                 Noosa Long         Festival, now in her third year heading this
                 Weekend Festival   organisation. In the late 90’s she was a member of
                                    the Queensland Theatre Company’s Development
                                    Committee.




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 CCIQ Noosa #3 Noosa Convention & Cultural Centre Initiative
 Pre-feasibility Study                                                              April 2016




              a. The Value of Business Events to Australia – Business Events Council of
Appendices       Australia 2015 and EY
              b. Economic Modelling note
              c. Events – a Noosa Industry. Concept paper by Jock Robertson
              d. Letters of Support
              e. Key Attributes and Conceptual Relationship Diagrams

                 Research - Estimating Expenditure from Business Events – Business Events
                 Sydney and UTS (NSW centric) (as an embedded PDF)


                            Estimating Inscope Expenditure to Business Events in NSW - UTS Research 2013.pdf


                 Technical Information Document – QLD Conservatorium, South Bank (as an
                 embedded PDF)


                     Conservatorium Bldg Tech.pdf


                 The Nelson NZ Study Report (as an embedded PDF)


                        performing-arts-centre-BERL-report-12OCT2009-2.pdf




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The Value of Business Events to Australia - E x e c ut i ve
s um mar y


This study highlights the importance of the business events industry to Australia, by estimating
the economic contribution, value add and employment of the industry for the 2013-14 financial
year. This study was prepared by Ernst & Young (EY) in conjunction with the Business Events
Council of Australia (BECA) and was co-funded by the Australian Government under the T-QUAL
Grants Program and the Australian business events industry.

Method
The method used in this study was a quantitative survey approach, supplemented by consultation
with industry stakeholders, analysis of existing industry research and desktop research of publicly
available information. Each component of the study is underpinned by information obtained from
business event venues regarding the number of events and participants they hosted l. The business
events industry is defined as:

    Any public or private business activity consisting of a minimum of 15 persons with a common
    interest of vocation, held in a specific venue or venues, and hosted by an organisation (or
    organisations).

For the purpose of developing appropriate and manageable research, the scope of this study
included events with at least 100 delegates and exhibitions over 500m2. Given this scope, data
collection focused on events with at least 100 delegates.

In order to facilitate comparison with the previous National Business Events Study (NBES), we used data
from existing research in Queensland to estimate the number of business events with between 15 and
100 delegates. It is important to note that the results presented in this report for events with less
than 100 delegates are not based on a comprehensive survey of venues across Australia.

Key Findings
Over 37 million people attended more than 412,000 business events across Australia in 2013-14. These
business events directly generated:

      $28.0 billion in direct expenditure $13.5 billion in direct value
      added 179,357 direct jobs

A breakdown of these results by event size is provided in Table ES1.




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CCIQ Noosa #3 Noosa Convention & Cultural Centre Initiative
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Table ES1: Summary of business events, 2013-14


                                  Under 100             Over 100
                                                                                   Total
                                  delegates             delegates

Number of events                    332,194               79,810                  412,004
Number of delegates (m)               11.5                 25.7                    37.2
Direct expenditure ($b)               $8.5                $19.5                   $28.0
Direct value add ($b)                 $4.0                 $8.9                   $12.9
Jobs                                 54,007              125,350                  179,357


1

    Data was received from 249 venues out of the total population of 942 venues. The

event and delegate information received from venues was combined with event benchmark expenditure profiles, based
on 141 event profiles obtained from organisers.




The business events industry comprises 3 market segments; meetings and conventions,
exhibitions and incentives. As can be seen in Table ES2, meetings and conventions form the
largest component of the industry in terms of events, delegate numbers, expenditure and value
add. In contrast, incentives form the smallest component of the industry in terms of delegates.
However the high yield associated with incentive events results in a larger share of direct
expenditure.




Table ES2: Breakdown of the industry by market segment


                                Meetings and
                                                    Exhibitions       Incentives             Total
                                conventions

Number of events                    391,060            2,157             18,787             412,004
Number of delegates (m)               26.5              9.4               1.3                37.2
Direct expenditure ($b)             $23.2              $3.1              $1.7               $28.0
Direct value add ($b)               $11.3              $1.5              $0.7               $12.9
Jobs                                147,491            21,525            10,342             179,357




Since 2002-03, the industry has made a growing contribution to the Australian economy. Direct
industry expenditure has increased by over $10 billion, from $17.4 billion to $28.0 billion. This
growth has outpaced inflation over the same period, with a compound annual growth rate of
4.5%.




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State Breakdown 2

New South Wales and Victoria hosted the largest number of events and delegates (see Figure
ES1). Combined, they accounted for almost 60% of the business events industry. This was
followed by Queensland and Western Australia.

The breakdown of direct spend by state and territory (Figure ES2) shows that Victoria had the highest
spend (36%), which was greater than the proportion of events and delegates hosted in that state. This
is due to the mix of events hosted in Victoria in 2013-14. In particular, Melbourne staged more large
international meetings and conventions compared to Sydney, and hosted larger exhibitions. This mix
of events was likely driven by the closure of the Sydney Convention and Exhibition Centre for part of
the 2013-14 financial year.

2

  While delegate and event numbers for New South Wales and Victoria are similar, there is a significant difference in
the direct expenditure in those states. This can be explained by the mix of events in each state. In 2013-14, Melbourne
staged more large international events compared to Sydney. This mix of events was likely driven by the closure of the
Sydney Convention and Exhibition Centre for part of the 2013-14 financial year. During this time Sydney was unable to
host large international business events that require convention centre facilities, particularly conferences and
conventions, which will have understated overall results and impacted on NSW relative market share.




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Economic Modelling note:

Application of multipliers

Multipliers are used to assess the extent to which increased spending in the host economy produces
subsequent benefits for that economy. For example, the local businesses benefitting from increased
visitor and organiser spend will use some of this money to pay their suppliers. Assuming that these
suppliers are also locally based, a ‘multiplier effect’ is created. Two types of multipliers are
commonly applied in the context of events - output multiplier and income multiplier. Both these
multipliers are measured in monetary terms but have very different uses. The output multiplier
measures the impact on the total business turnover in the host economy. By contrast, the income
multiplier measures the overall increase in household income of local residents. The value of output
multipliers will tend to be much higher than those of income multipliers, although the latter are
considered to be more 'fit for purpose' in academia.

Regardless of its type, the value of any multiplier is dependent on the size of the economy being
considered. In simple terms, the smaller the host economy, the higher the chance of leakage and the
lower the value of the multiplier. In many cases, multiplier values are borrowed from other studies,
which are far less valid than multipliers that are empirically derived based on the inter-industry
relationships in a given host economy. Empirically derived multipliers are not readily available for
every level of geography. Both the data and analyses required to accurately calculate a multiplier
tend to be fairly complex and are beyond the scope of the guidance in event IMPACTS. A failure to
understand how multipliers are derived (or use of incorrect multipliers) will only serve to mislead
event funders about the value of their investment. Therefore where multipliers are not readily
available, and/or it is considered too costly to derive these empirically, it is recommended that only
the Direct Economic Impact is reported. It worth noting however that the development/application
of multipliers may be of particular benefit in calculating the additionality of the very largest scale
events.

As a final point of note, an event has no bearing on the value of the multiplier. Therefore when
comparing the economic impact of events that take place in different cities or regions, it is not
appropriate to consider multiplier effects and the Direct Economic Impact should be used.

Additional Considerations for Larger Events

For the very largest events, there may be a case that the event exerts an impact on residents’
normal economic behaviour which should also be measured. In some instances there could be
legitimate grounds to claim that a large-scale event has prevented local residents from temporarily
leaving the Host Economy, which in effect represents income retained in the Host Economy. Yet
another consideration (primarily though not exclusively) for larger events is displacement. This is
caused when normal tourists planning a trip to the Host Economy are crowded out by event-related
visitors. An increase in demand is in turn likely to trigger an increase in price levels for certain sectors
of the economy e.g. accommodation (consider introducing a Fair Pricing and Practice Charter.
Congestion coupled with inflated prices could have a detrimental effect on the behaviour of normal
tourists planning to visit the Host Economy during that period. The challenge then in economic
impact terms is to quantify the monetary value associated with the volume of displacement.




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Section 28

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A Noosa Industry
It is possible that the advent of a new Noosa Council and renewed enthusiasm within Tourism Noosa
provides a unique opportunity to reassess Noosa and its future prosperity.

In doing so, ask this question: What are the local "unique industries" that can really, truly be
exploited?

In answering that, however, first look at the industry categories which are unlikely to be revenue and
community positive in the foreseeable future. These I think would include heavy industry (obviously)
but also education (despite all the rhetoric of "local campuses", a “University of the Environment “et
cetera), Information Technology (every town wants an IT park and remember all the hype in this
regard surrounding Noosa Civic) and even eco-tourism (meaning that this is not likely to be revenue
significant in itself but basically part of the general environment of Noosa tourism).

What Noosa does have is environment, tourism and, when you think of it, events (the latter the
subject of this paper). To my mind you could have the mindset that Noosa’s “productive commerce”
consists of first the natural environment (of course), secondly tourism (happening already) and third
“events” (not just any events but quality events such as those already taking place) – “events”
meaning cultural festivals, music festivals, sporting events and conferences. Start to think, in other
words, that “events” is the obvious available “third industry” ready for organised exploitation given
the huge advantage Noosa has (with environment and tourism already in place) of so easily
attracting event participants, delegates and attendees.

The first industry, Noosa’s natural resources, is not necessarily revenue generating in itself. But it is,
of course, the vital ingredient energising the other two. It is, in short, the "brand" which underpins
the success of any industry project.

The second, tourism, is already benefited by the experience of Tourism Noosa and the vacationer
operator community and there is no reason to think other than positively for its future.

The third, "events", is where greater organisation and an attempt at common purpose are needed. If
we recognise that this could be an “industry” capable of exploitation then we need, in my view, to
develop an approach to organisation and promotion which is more holistic -using that term in the
sense of "emphasising the importance of the whole but at the same time the independence
(maintaining the autonomy) of its parts". In other words, an overriding organisational “structure”
which brings this potential “industry “under a leadership/management/guidance timetabled roof of
themed promotion of Noosa as a unique location easily able to attract speakers, musos, sports
people, participants and delegates. We need to understand that this asset of Noosa’s reputation as a
popular and admired easy to convince to come destination is potentially priceless and probably
unique in Australia.

There are already significant and revenue generating events of quality which already exist. Think of
the Wine and Food festival, the NLWE, the Jazz Festival, the Noosa Tri and the Surf Festival. Add to
that the possibility of the promotion of, say, a Noosa Festival of Ideas (controlled by a "Noosa
Institute" and building on the very popular public interest forums currently held as part of the NLW
Festival) and you can start to see the potential of the combination of an “Events Industry” organised
around common purposes of: –




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       Industry approach;
       Corporate sponsors etc identifying with multiple events at different times;
       "A season of events";
       "A season of exceptional product";
       Quality, intimacy, location, and
       A place of excellence.


There are already good organisational structures around all three parts of environment, tourism and
events. All of these have a proven history. What they potentially don't have are the benefits,
revenue generation, community prosperity and an even greater reputation for "Brand Noosa" which
can come from “an industry approach” and a recognition by all parties that this, all of this under one
organisational “structure” such as a Noosa Institute (not designed to interfere in the running of each
event), is the permanent all-season Industry of Noosa in which everyone from the council through to
the environment, tourism and events community can join.

This is not something necessarily requiring monetary support. This is up to individual event
organisers. It’s largely attitudinal. But it does encourage behavioural change in areas such as
(common theme) marketing and promotion, transport, traffic and parking policy, availability (and
knowledge of style and variety) of venue, Council in sync, mentoring support and advice, branding
and product promotion.




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Section 30

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                    CCIQ Noosa © 2015-16                      30 | P a g e

Section 31

CCIQ Noosa #3 Noosa Convention & Cultural Centre Initiative
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To Whom It May Concern

RACV Noosa Resort supports Noosa Council conducting a formal Feasibility Study in to the location,
construction, and operation of a dedicated Convention Centre and separately a dedicated Cultural
Centre in central Noosa.

The provision of a larger local Convention Centre will help secure increased business from the high-
yield business MICE (Meetings Incentives Conventions and Exhibitions) segment, resulting in a
substantial direct and indirect economic impact.

The availability of a larger local Cultural Centre will enable the staging of an increased range and
scale of cultural and performing arts’ events, delivering both economic impact and community
access and enrichment

Yours sincerely




DARREN MCCLENAGHAN

Resort Manager

RACV Noosa Resort



RACV Noosa Resort
National Response Pty Ltd   94 Noosa Drive Noosa Heads Queensland 4567 Australia
                            Telephone 03 5341 6300
ABN 46 095 048 687          Facsimile 03 5341 6399
                            www.racv.com.au




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