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


 Venue                                                          Area                Max.      Meeting           Conf.
                                                               (sqm)            Capacity      Rooms             Room
                                                                               (persons)                         Hire
 Cairns Convention Centre                                      4,560     Theatre 5,000                9           n.a.
                                                                           Table 1,080
 Mackay Entertainment and Convention Centre                    1,460     Theatre 1,540                4         $6,030
 (convention centre component only)                                         Table 800                      $5,430 NFP
 Seaworld Convention Centre                                    2,000     Theatre 1,000             n.a.           n.a.
                                                                            Table 400
 Gladstone Entertainment Convention Centre                      850        Theatre 900        3 x conf./        $3,000
 (hall component only)                                                       Table 500        breakout     $1,200 NFP
Source: Various convention centre websites.

The proposed Noosa Convention Centre will face significant competition from established centres and will operate
on the smaller end of facilities in other locations.

4.3.2        Performing Arts Centres
Unlike convention centre operations, performing arts centres typically experience lower competition due to shows
touring to multiple venues across multiple regions. Local government-supported performing arts centre capacities
and population levels are provided in the table below for a select few regions.

The analysis suggests that Noosa possesses a relatively modest population (53,515) in order to support the
proposed 700sqm Performing Arts Centre, outside of the theatre component of the Gladstone Entertainment
Convention Centre. It should be noted here that the Cairns Civic Theatre is presently subject to a proposed funding
application to upgrade seating capacity to over 900.

Table 4.4: Other Selected Regional Performing Arts Centres
 Venue                                                           Capacity        Population            Attendance
 The Arts Centre Gold Coast                                            1,135        555,608                    n.a.
 Mackay Entertainment and Convention Centre                            1,080        123,724          160,000 (inc.
 (theatre component only)                                                                        conv. attendance)
 Townsville Civic Theatre                                              1,014        193,946                110,000
 Brolga Theatre Fraser Coast                                            900          95,310                    n.a.
 Mandurah Performing Arts Centre (main theatre)                         787          83,290                    n.a.
 Ipswich Civic Centre                                                   741         193,015                    n.a.
 Gladstone Entertainment Convention Centre                              674          32,070                    n.a.
 (theatre component only)
 Cairns Civic Theatre                                                   669         160,285                 95,000
                                                                                                  (75,000 ticketed)
Source: ABS (2015), Various performing arts centre websites.


4.4          FINANCIAL PERFORMANCE
It is difficult to determine the financial performance of convention centres and performing arts centres, given that
they are generally not separately reported within publicly available budgets and financial statements. Some
Councils indicate within their financial statements that they do not deem such facilities to be commercial enterprises
given the level of financial support required to fund their ongoing operations, and therefore competitive neutrality
reforms and associated reporting requirements are not applied.

Despite this, AEC was able to collate information on a number of facilities of varying sizes, including the Gladstone
Entertainment Convention Centre which is of a comparable size to that proposed for the Noosa Convention and
Performing Arts centres. In all cases, considerable subsidies were required to support operations before
depreciation is taken into account. The general range for the portion of operating costs before depreciation is
recovered is 40% to 67%. When depreciation is included, the extent of cost recovery falls further to 30% to 50%.

Further, the three international precincts referenced by CCIQ Noosa (Banff, Canada and Carmel and Aspen, USA)
also feature cost recovery levels within this range and are only able to maintain operations through considerable
operating grants and donations.




                                                                                                                         14