2021-06-16 Special Meeting Agenda

SPECIAL MEETING AGENDA                                                                16 JUNE 2021


5      Tourism and Economic Levy Discontinuation

A number of responses (12 ideas and 64 emails) were received relating to the discontinuation of
the Tourism and Economic levy (currently funded by 6,000 property owners), arising (in part) as a
result of a concerns raised by Tourism Noosa about the proposed changes. The issues raised by
Tourism Noosa (facilitated by emails to their customer database on 4 and 6 June 2021) contained
a number of assumptions regarding the purpose of Council’s proposed rating changes, in particular
suggesting that tourism destination funding would be jeopardised, stating that the current levy
allows a level of protection and transparency of funding for tourism promotion, and also confusing
the proposed rating changes and reason for the changes with future responsibility of providing
tourism promotion activities (i.e. Council would be taking direct responsibility for tourism promotion
activities which in hindsight, wasn’t communicated well in Council’s draft budget documentation).

As a result, a number of responses received included concerns that tourism funding would
decrease as a result of the change, and also concerns that tourism promotion and management
activities were going to be reduced or removed altogether from Tourism Noosa in the future. Some
responses supported the discontinuation of the levy, suggesting a review / reduction of tourism
funding levels and a review of the current levy arrangements.

As Councillors are aware, the allocation of funding to Tourism Noosa is the subject of a specific
funding agreement between Council and Tourism Noosa. Regardless of whether revenue is
collected via a Tourism & Economic Levy or via General Rates, the annual funding to Tourism
Noosa is always determined by the funding agreement. The 2021/22 draft budget includes $2.52
million required to be provided to Tourism Noosa under the current agreement. The current 5 year
agreement, in place since 2017, has allocated a total funding amount of $12.6 million to Tourism
Noosa. As an example, the Tourism and Economic Levy was reduced by 5% in 2020/21 to reduce
the financial impact on local businesses as a result of the COVID-19 pandemic - but that had no
impact on the $2.52 million funding budgeted for and provided to Tourism Noosa.

Councillors will note that concerns have also been raised that there will be reduced transparency
should revenue not be collected and constrained via a levy. Council’s current funding agreement
with Tourism Noosa specifies the required reporting mechanisms to ensure that Council can be
satisfied that ratepayers funds provided to Tourism Noosa are being spent appropriately to deliver
its business plan and strategy. Whether revenue is collected via a Levy or via General Rates,
Council is obligated to ensure that the significant amount of ratepayers funds provided to Tourism
Noosa are being managed efficiently and they will be required to provide ongoing reporting to
Council in this regard.

To provide an additional level of transparency and to satisfy any concerns raised regarding the
level of annual economic development investment from general rates (including tourism), it is
recommended that Council’s adopted budget include specific details of the annual budget
investment in these activities in addition to monthly reporting of actual expenditure performance
through Council’s financial performance report.

It is also recommended that the Chief Executive Officer report to the next round of Council meetings
outlining a process to develop a new partnership funding agreement with Tourism Noosa, to allay
concerns raised in the feedback regarding Tourism Noosa’s future funding allocation from Council.




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