TOURISM NOOSA FUNDING AGREEMENT AND PERFORMANCE DEED · Report

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;