TOURISM NOOSA FUNDING AGREEMENT AND PERFORMANCE DEED · Report

Page 2

SPECIAL MEETING                                                                        8 MAY 2025



Areas that have not been fully achieved are as follows:
•   delayed DMP actions which were outside of TN’s control as the DMP was not completed by
    Council in the anticipated timeframe;
•   reducing dependency on Noosa Council funding through revenue diversification opportunities,
    increases in sponsorship, membership, co-operative marketing or Visitor Information Centre
    review and opportunities; and
•   despite improved communication and collaboration between Tourism Noosa and Council it is
    evident that there is some duplication and inefficiencies in how tourism events are currently
    funded, supported and managed across Tourism Noosa and Council.

Considering the issues discussed in this report, it is recommended Council enter into a new one-
year Funding Deed (agreement) with Tourism Noosa.

The new one-year agreement is recommended to:
•   acknowledge the overall achievement and compliance TN has achieved against the Funding and
    Performance Deed to date and its ongoing partnership with Council as our Local Tourism
    Organisation;
•   allow reasonable time to develop a clear Roadmap with TN to advance alternative funding
    sources, ongoing focus on organisational efficiencies and revenue diversification;
•   ensure TN operates as a streamlined and contemporary tourism organisation with the flexibility
    to respond to global economic and tourism trends, changing travel patterns and contemporary
    destination management approaches.
•   allow time to transition sponsorship and management of tourism events back to Council to
    provide with adequate time to provide clarity, assurance and management of events to both
    event organisers and the community; and
•   allow for the completion of the DMP and incorporation of its outcomes should this be completed
    within this timeframe. Noting the new funding agreement is not contingent on the DMP however
    it will acknowledge, as the current deed does, that when the DMP is adopted, any agreement,
    requirements and associated funding with TN may be varied in response.
The report also recommends a reduction be made to the current TN funding from $2,520,000 to
$2,000,000 (exclusive of GST) comprising the removal of event sponsorship, marketing and
associated resources of approximately $250,000 with a further $270,000 efficiency dividend
reduction. Funding to be issued in two instalments with a guaranteed first payment milestone of
$1.2M + GST and second conditional payment of $800,000.

New KPIs, specific to completing a clear road map and improving revenue diversification, are
recommended to be included as part of the 12 month agreement.

RECOMMENDATION
That Council note the report by the Chief Executive Officer to the Special Meeting dated 8 May 2025,
and
A. Authorise the Chief Executive Officer to prepare and execute a 12 month Funding and
Performance Agreement with Tourism Noosa until 30 June 2026;
B. Approve the release of funds to the amount of $2.0M (exclusive of GST) to Tourism Noosa, for
the duration of this agreement (to 30 June 2026), conditional on:
    1. A Milestone Payment One of the agreement in the amount of $1.2M (exclusive of GST), to
    paid on or before 31 July 2025;

Page 3

SPECIAL MEETING                                                                           8 MAY 2025


   2. A second graduated payment of $800,000 (exclusive of GST) to be made at 6 months,
   subject to completion of the Roadmap and KPI achievements;
   3. Noosa Council co-creating a comprehensive Roadmap with Tourism Noosa detailing
   Council’s future expectations of Tourism Noosa’s role, structure, future focus and actions, and
   any further funding arrangements.
C. Authorise the Chief Executive Officer to transition the sponsorship of tourism events and
associated funding (previously facilitated by Tourism Noosa) to Noosa Council during FY25/26.
D. Authorise the Chief Executive Officer to prepare the Funding and Performance Agreement to
reflect the requirements outlined in this report, including the addition of KPIs.
E. Work with Tourism Noosa to complete a comprehensive Roadmap considering agreed service
levels, organisational efficiencies, revenue diversification plans and the transitioning of sponsorship
of tourism events to Noosa Council.
F. Note the new Funding Agreement (FY25/26) will be established prior to the completion and
adoption of the Destination Management Plan (DMP), it is therefore not contingent upon the DMP.
However, should the DMP be adopted during the term of the Agreement, provisions will be in place
to allow for variations to the Agreement to ensure Tourism Noosa’s activities align with the DMP’s
principles, outcomes, and relevant actions.


REPORT
At the Ordinary Meeting dated 20 April 2023, Council authorised the Chief Executive Officer to
execute a new Funding Agreement and Performance Deed (new funding agreement) with Tourism
Noosa, refer Attachment 1 .
The new funding agreement committed Noosa Council (NC) to provide funding to Tourism Noosa
(TN) on a two year basis to 30 June 2025, with a further 2 year option thereafter.

The quantum and subsequent agreed funding of Tourism Noosa at this time was $2.52M (exclusive
of GST) per annum, conditioned on no additional increases for the life of the new agreement.

Improved Fiscal Accountability and Outputs

The new 2023 agreement set increased requirements for TN in terms of governance, reporting,
business efficiencies, increased revenue opportunities, focus on sustainability and collaboration.

The 2023 funding agreement also set out clear expectations of TN under the following obligations:


                           2023 Funding Agreement

  •   Industry Stakeholder Collaboration             •   Quarterly Reporting to Council
  •   Marketing                                      •   Workforce Planning
  •   Regional Dispersal through the Shire           •   Develop a 4 year Strategic Plan
  •   Business Events                                •   Develop a 12 month Operational Plan, with
  •   Events                                             Council sign off
  •   Visitor Information Centre enhancement         •   Commitment to valuing Tourism
                                                         Sustainability, Quality Visitor Experiences
  •   Sustainability
                                                         and high value/low volume tourism
  •   Sunshine Coast Airport collaboration

Page 4

SPECIAL MEETING                                                                         8 MAY 2025


    •   Product    Development    and       Industry
        Training
    •   TN’s Role with Local Stakeholders
    •   Implementation of DMP Actions


An review of the Funding Agreement outputs indicates that Tourism Noosa is compliant with majority
of elements outlined in the agreement with the exception of:

•   delayed DMP actions which were outside of TN’s control as the DMP was not completed by
    Council in the anticipated timeframe; and
•   reducing dependency on Noosa Council funding through revenue diversification opportunities,
    increases in sponsorship, membership, co-operative marketing or Visitor Information Centre
    review and opportunities.
•   Despite improved communication and collaboration between Tourism Noosa and Council on
    events it is evident that there is some duplication and inefficiencies in how tourism events are
    currently funded, supported and managed across Tourism Noosa and Council.
A Background to Tourism Noosa

Tourism Noosa was initiated in early 2000's as a not-for-profit, membership-based organisation with
the purpose of promoting Noosa Shire as a diverse and sustainable tourism destination. It was
incorporated as Tourism Noosa Ltd, a public company limited by guarantee. Supported by Noosa
Council, local tourism businesses and other stakeholders, Tourism Noosa quickly established itself
as a highly respected local tourism organisation, winning state and federal tourism awards in 2007
and again in 2023 for its successful marketing campaigns and brand management.

Together with Noosa’s tourism industry and Noosa Council, Tourism Noosa has consistently
delivered and maintained Noosa’s high brand equity both domestically and in international markets.
Arguably, Noosa’s brand equity has provided many non-tourism businesses the opportunity to
leverage the brand’s strong associations and created a desire amongst visitors to move to the region
permanently.

Tourism has consistently been in the top three most valuable sectors to Noosa for well over a decade
– in 2025 employing 4900 people. In FY23/24 visitors contributed approximately $1B to Noosa’s
economy (comprising $605M in local output (72%) and around 28% made up of other components
such as taxes and imports). This is around 25% of overall GRP.

Tourism Organisation arrangements in Queensland

Australia has the following hierarchy of Tourism Organisations.

•National Tourism Organisation
•State Tourism Organisations
•Regional Tourism Organisations - Example Visit Sunshine Coast
•Local Tourism Organisations - Example Tourism Noosa

Regional Tourism Organisations (RTOs): RTOs represent and service multiple LGAs, working at a
broader level to market and position their region as a key tourism destination. Their primary role is
destination marketing, ensuring visitors travel to and experience their region. They collaborate with
state and national tourism bodies—such as TEQ and Tourism Australia—through campaigns,
partnerships, and industry support. Beyond promotion, RTOs also focus on strategic tourism
development, including infrastructure investment and policy advocacy, helping to shape the long-

Page 5

SPECIAL MEETING                                                                              8 MAY 2025


term success of their region.
Local Tourism Organisations (LTOs) focus on enhancing the visitor experience within a specific
locality, typically aligned with a single Local Government Area (LGA), whereas Regional Tourism
Organisations (RTOs) work on attracting visitors to a broader region, representing multiple LGAs.

Local Tourism Organisations (LTOs): LTOs operate within one LGA, building close relationships
with their local industry. These strong connections enable them to focus on creating positive visitor
experiences, building industry skills, and providing valuable local insights. LTO's collaborate with
RTO. Additionally, LTOs play a vital role in encouraging visitors to explore their specific locality within
the broader region. They also manage Visitor Centres, ensuring visitors have access to information
and experiences during their stay. LTOs are not funded by the State Tourism and Events
Queensland (TEQ).


Requirement for a clear Roadmap

The feedback Council has received both recently and throughout the first stages of the Destination
Management Plan (DMP) process, has highlighted that parts of the community seek a renewed
approach to destination management, tourism marketing and visitor management, with a reduced
dependence on public funding.

The DMP process to date and other feedback has also highlighted the strong desire of our business
community and tourism industry to maintain Noosa’s strong brand reputation in a crowded tourism
marketplace. Council is focussed on ensuring a balanced and considered approach to both othese
issues.

Noosa Council acknowledges that the DMP has not yet been completed, due to it being placed on
hold last year to allow other strategic projects to be advanced and completed.

The DMP (scheduled for completion in late 2025) will require engagement with our community and
stakeholders and for it to truly have impact, will need to include a number of bold actions to address
the challenges our community indicated in the first round of consultation on the DMP Discussion
Paper. During the first round of engagement, the majority of respondents called for transformative
action around visitor and destination management.

The current Deed includes a requirement that when the DMP is complete, the Deed will be varied to
incorporate any requirements for TN arising from the DMP. It is proposed that this clause will
continue to be included in the new agreement.

Accordingly, as part of the new agreement it is recommended that Noosa Council partners Tourism
Noosa in the co-creation of a Roadmap that addresses the following:
•   Noosa Council's expectations regarding the future role of its Tourism Noosa as the Local Tourism
    Organisation (LTO), ensuring the LTO is efficient, contemporary, flexible and responsive
    to community expectations, global trends, changing industry needs and contemporary
    approaches to destination management;
•   TN's strategy to deliver Council’s expectations, including considerations for integrating any
    relevant principles, outcomes or actions from the DMP once it is complete;
•   Corresponding funding adjustments and the potential funding quantum to meet Council’s future
    expectations;
•   Measures to ensure seamless communication and collaboration between Noosa Council and TN
    throughout the transition process;
•   A framework for monitoring and evaluating progress and ensuring that KPI’s are being met;

Page 6

SPECIAL MEETING                                                                          8 MAY 2025


•   Stakeholder engagement to build consensus and cultivate support for the TN's role and
    objectives.
Term of Agreement and Funding Commitment

It is proposed that Noosa Council issues a new Agreement for 12 months, to 30 June 2026 for the
amount of $2 million.

The new Agreement will indicate an overall allocation of $2 million (exclusive of GST) to be made in
two instalments for the duration of the agreement, with a further funding review scheduled after six
months.

The reduction in funding includes the corresponding reduction in funding due to the intent to
transition the tourism events portfolio from Tourism Noosa to Noosa Council. This includes direct
sponsorship of tourism events. These costs plus operational and resource costs associated with
events will transition back to Council, estimated to be approximately $250,000. The final exact
amount, as well as transition arrangements, are to be determined in the first 6 months of the
agreement.

It is also proposed that a further $270,000 overall efficiency dividend in the second instalment occur;
how and where these savings will be made by TN is to be determined during the development of the
roadmap to be completed within 6 months of the new agreement.

Payment of the Funding Agreement is graduated, with a first payment $1.2M (exclusive of GST).
In the second half of the financial year, a further payment less the efficiency dividend, will be made
subject to:
•   Achievement of KPI’s including any cost savings/efficiencies made and identification of revenue
    streams to reduce reliance on public funding,
•   Completion of the roadmap to the satisfaction of Council.
This payment will be $800,000 (exclusive of GST) however maybe varied based on achievement of
KPI's.

A twelve month agreement will also enable the following outcomes to occur in a reasonable
timeframe for both parties:
•   Completion of the Noosa Events Strategy, Policy Framework, Guidelines and assessment
    criteria and, a successful transition of the sponsorship of tourism events to Noosa Council;
•   Transition of the new process with Event Organisers;
•   Progress and intended adoption of the Destination Management Plan – should this be complete
    within this timeframe, any relevant principles, outcomes and actions of the DMP to Tourism
    Noosa and associated adjustment to the agreement and role of Tourism Noosa will occur;
•   Development and completion of the Roadmap outlined above.
Transition of Events

Noosa Council has undertaken to streamline all aspects of its events processes, guidelines and
sponsorships to be more consistent in applying criteria, to align with strategic direction (to be
established in new Events Strategy) to achieve economies of scale and avoid duplication of effort,
and to provide improved events management overall for both the event organisers and the
community.

This reflects, in part, a response to inconsistencies highlighted by the events industry regarding the
administration of events. It also seeks to address concerns from some community members about
mitigating the ongoing impacts of events on Noosa’s environment and quality of life.

Page 7

SPECIAL MEETING                                                                          8 MAY 2025



Ultimately, the outcome of the Noosa Council Events Strategy will be for all events (including those
currently supported by TN funding) to be supported, administered and managed by Noosa Council.
While additional actions may be identified in the DMP, the transition of events from TN to Council is
a necessary step to enable Noosa Council to streamline management, support and funding of
events. It is proposed that this transition will occur during the 12 month period and prior to June
2026.

Providing a reasonable timeframe is important for the change to be communicated and understood
by event organisers, to ensure existing contractual arrangements with TN and event organisers are
honoured, and for completion of the Events Strategy, Guidelines and assessment criteria processes.
The transition process will be initiated as a priority to ensure continuity of funding and service for
event organisers.

Key Performance Indicators

To ensure ongoing accountability, continuous improvement, strategic alignment and value for
money, it is recommended the following performance measures form part of the new Funding Deed.
Noting that a number of existing obligations and performance measures from the existing Deed will
form part of the new agreement. The below measures are additional.

1) By Dec 2025, TN will complete a Roadmap with Council and to be agreed by Council considering
strategic alignment, agreed service levels, operational adjustments and efficiencies, revenue
diversification plans and the transitioning of events to Noosa Council.
This process will consider organisational and operational efficiencies, to ensure TN's model of
operation, structure and strategic approach is contemporary, flexible and adaptable to be able to
respond to changing travel patterns, global trends in tourism and destination management.

2) TN to ensure:
a. New revenue streams identified, considering sponsorships, co-operatives and partnerships that
result in an increase in financial contribution to the organisation.
b. Membership model investigation complete. If member-based model is sustained, membership
retention and acquisition targets identified (eg - target – projection of at least 10% increase in
membership and associated revenue by end of June 2026)
c. Complete a review of options for Visitor Information Centre that identifies at least 10% increase in
revenue sources or efficiency gains.

Destination Management Plan

Recognising that for the success of a Destination Management Plan (DMP), Noosa’s lead Tourism
Organisation must be aligned to Council's, the community's and industry aspirations. The previous
2023 agreement was conditional on the embedding of DMP actions by Tourism Noosa, on adoption
of the DMP by Council. At this time, it was anticipated that the DMP would be adopted by Council in
late 2023/early 2024, providing sufficient time for both parties to renegotiate the new terms of the
agreement towards the end of the first two years of the agreement.

The Destination Management Plan was delayed beyond the anticipated timeframe, as it was
deferred by Council to prioritise the completion of other major projects. It is now planned for
completion and adoption by Council in late 2025.

The DMP is still subject to broad community engagement. Should the DMP be completed sooner,
any adjustments required to TN's role, function or priorities will be considered as part of the
Roadmap. The new agreement is not contingent on the completion of the DMP however will have
provision to be varied should the DMP be completed and adopted within this timeframe. Any future
agreements and future funding will remain conditional on Tourism Noosa alignment with the direction
and principles of the DMP and embedding relevant DMP actions.

Page 8

SPECIAL MEETING                                                                         8 MAY 2025



Link to Corporate Plan

Theme No. 3 - Prosperity
Focus areas include economic development, local business, innovation, arts and culture, waste and
a circular economy.
Section 3.1 Deliver and fund the Smart Biosphere Economic Strategy

Theme No. 4 - Future
This theme is focused on our future, strengthening our relationship with First Nations peoples and to
ensure our community is prepared and resilient to change. A focus on youth, climate resilience and
adaptation, sense of place and destination management.
Section 4.2 Deliver and implement the Destination Management Plan

Theme No. 5 - Excellence
This theme focuses on customer experience, financial sustainability, innovation and technology,
levels of service, governance, our employees and volunteers, funding streams and asset
management practices.
Section 5.7 Diversify Council’s Revenue Base or Create Alternative Funding Streams


Previous Council Consideration
Ordinary Meeting Minutes 20 April 2023, Item 5.2, page 9
That Council note the report by the Chief Executive Officer to the Services and Organisation
Committee Meeting dated 11 April 2023 regarding the Tourism Noosa
Funding and Performance Deed and
A. Authorise the Chief Executive Officer to execute the Funding and Performance Deed provided at
Attachment 1 to the Report;
B. Authorise the Chief Executive Officer to make changes to the Funding and Performance Deed
prior to executing the Deed as required; including
i. TN will ensure that its Strategic Plan, Marketing Plan and Events Strategy are consistent with key
aspirations and positions of Council articulated in the Corporate Plan 2023 – 2028, relevant Council
Strategies and Plans and the DMP, in the event the DMP is adopted by Council within the term of
this agreement.
C. Confirm the release of funds as per the report for the 2024 and 2025 Financial Years.

Finance
In 2021, the Tourism and Economic Development levy was removed and a higher rate in the dollar
was applied to all commercial properties across the shire to replace the Tourism and Economic
Development Levy, which has been used to fund Tourism Noosa and Council’s economic
development activities. Since 2018, Noosa Council has consistently provided the same level of
funding to Tourism Noosa with no CPI increase during this time.

It is recommended that in accordance the proposed new Agreement, the funding allocation for the
12 month period of $2.0M (exclusive of GST) be made in Council's 25/26 budget.

A first guaranteed instalment of $1.2M (exclusive of GST) is to be made, with a second instalment
of $800K to be made at the 6 month mark, conditional upon achievement of the items outlined in this
report.

Risk & Opportunities
The recommendation of a new 12 month agreement and funding of $2.M+GST to Tourism Noosa,
may be perceived by some in the community to be insufficient in response to issues such as the

Page 9

SPECIAL MEETING                                                                                8 MAY 2025


reliance on public funding and ongoing marketing of Noosa in the face of growing impacts from
tourism. While the measures outlined in this report represent an initial step, they seek to provide a
balanced, equitable and reasonable framework for managing complex and evolving issues around
destination management. This approach ensures adequate time for effective collaboration, the
development of a clear roadmap without jeopardising Noosa’s brand reputation and the local tourism
economy, which many residents depend on for their livelihoods and essential services.

Tourism Noosa are a mature local tourism organisation with strong local, national and international
connections and robust channels to market, developed over many years. They are highly regarded
amongst their networks and have been very successful in upholding Noosa’s brand as an iconic
destination. It will be important for Council to work with TN over the coming 6 months to ensure a
clear roadmap is developed and agreed addressing the range of matters outlined in this report.

Human Rights
Human Rights Compatibility Statement
In developing this Report, the subject matter has been considered in accordance with the
requirements of the Queensland Human Rights Act 2019. It is considered that the subject matter
does not conflict with any human rights and supports a human rights approach to decision making
by Council. Council representatives will endeavour to act and make decisions under this report in a
manner that is compatible with human rights. This report should be read in conjunction with
Council’s Human Rights Policy.

Consultation
External Consultation - Community & Stakeholder
Tourism Noosa


Internal Consultation
Departments consulted:
     Office of the CEO, Mayor &             Community Services              Corporate Services
             Councillors
 x    Mayor & Councillors             x   Director                    x   Director
 x    Chief Executive Officer             Community Development       x   Financial Services
 x    Executive Officers                  Sport & Active Lifestyles       Fleet
 x    Community Engagement                Arts & Culture                  Revenue Services
      People & Culture                    Community Connection            ICT
 x    Governance                          Customer Experience             Procurement

                                                                          Commercial Property

      Strategy & Environment              Development & Regulation        Infrastructure Services
 x    Director                        x   Director                    x   Director
      Strategy & Sustainability           Development Assessment          Infrastructure Planning, Design
                                                                          and Delivery
 x    Economic Development        &       Local Laws                      Civil and Asset operations
      Destination Management
      Environmental Services              Environmental Health            Waste
      Innovation & Digital Hub            Building & Plumbing             Building & Facilities
                                          Property / Permits              Disaster Management