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

                                          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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