2016 08 09 - S&O Agenda - Item 8, Att 2 - AEC Noosa Convention & Performing Arts Centre Pre-feasibility Review

PRE-FEASIBILITY OF CONVENTION AND PERFORMING ARTS CENTRES


Local users of the facilities (most of which already utilise The J) were identified to include:

     Noosa Arts Theatre.

     Noosa Long Weekend.

     Noosa Regional Gallery (offer a new home or an adjunct space for Noosa Regional Gallery as the public space
      exhibitor across all areas of both centres).

     Noosa Community Radio.

     Noosa Jazz Festival.

     Noosa Federation for the Arts.

     Noosa Biosphere Institute for Sustainability.

     Noosa International Film Festival.

     Aspects of the Noosa Food and Wine Festival.

     A possible professional theatre company could be established.


2.4         FINANCIAL PERFORMANCE
The CCIQ Noosa letter supporting the proposal indicates that expert advice suggests that the two facilities would
operate profitably, but no evidence is provided to justify this statement. Further, it is noted that the Performing Arts
Centre can enhance the profitability of the Convention Centre. It was noted that the Australian Performing Arts
Centres Association (APACA) advised CCIQ Noosa that all performing arts centres in Australia trade at a loss
unless participating in a national performing arts touring circuit of commercially successful shows or gaining
revenue opportunities from event activity (and integrated MICE facility) (CCIQ Noosa, p.7).

Separately, the CCIQ Noosa proposal (p.15) acknowledges that while most venues run at a loss, the primary driver
of such losses is depreciation which is merely an accounting issue given that they are often built and replaced with
government grants. It is further indicated that any such shortfall can be offset by an across-the-board rate rise if
required.

No other comments are made surrounding the financial performance of the new facilities, nor their impact on
Council finances and ongoing financial sustainability. This forms a key part of this pre-feasibility review in a
subsequent chapter.


2.5         ECONOMIC IMPACTS

2.5.1       Convention Centre
CCIQ Noosa indicates that the ability to attract the key mid-market 350-450 delegate MICE business tourism
segment alongside current tourism and events would be a ‘game changer’ in the diversification and branding of the
local economy, with events potentially becoming a third pillar industry for Noosa, adding to the environment and
general tourism as attractors. In addition, the proposed facilities would assist in the creation of a cultural and
business-tourism hub in central Noosa.

It is indicated that higher yield in terms of economic activity can be achieved without higher visitor numbers
(therefore limiting impacts on current market and infrastructure capacities), by shifting a portion (e.g. 20%) of
tourism activity from general tourism into the MICE sector. Further, MICE sector demands would provide stability
to tourism activity in addition to increased profitability and new business and job opportunities. Current capacity off-
peak and mid-week could also be taken advantage of.

Example direct expenditure for the proposed Conference Centre was identified as two conferences per week for
30 weeks of the year, with up to 450 delegates per conference (p.6). Based on an average stay of 2.8 days per
delegate and an average spend of $956 per stay, this equates to $25.81 million per annum and $516.2 million over




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