2016-08-09 S&O Agenda Item 8, Attachment 1 - CCIQ Noosa Convention and Cultural Centre Initiative Pre-feasibility Study

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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