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


   By 2020, the following major additions are expected in the regional market:

    o   Westin Coolum Resort and Spa (20 minutes from Noosa) offering 850sqm of ultra-modern conference and
        event space.

    o   Sunshine Coast Entertainment, Convention and Exhibition Centre (40 minutes from Noosa) offering a
        convention venue for up to 2,500 people.

   The proposed sizing of the proposed Noosa Convention Centre is at the lower end of comparable
    regional/metropolitan venues, and is best benchmarked against the Gladstone Entertainment Convention
    Centre which includes a theatre alongside convention facilities.

   The proposed Noosa Convention Centre will face significant competition from established centres outside of
    the region, in addition to competition from Twin Waters and the Kawana Community Centre in the local market
    in the initial instance and the Sunshine Coast Entertainment, Convention and Exhibition Centre and Westin
    Coolum Resort and Spa when they are constructed.

   The proposed Noosa Convention Centre would also still compete with pre-existing facilities catering to the 150-
    300 capacity given that it would offer different combinations of rooms to be hired within the larger floorprint.

4.6.2     Performing Arts Centre Market

   The J and the Noosa Arts Theatre are the primary dedicated theatre facilities catering to the local market, with
    The J having a seating capacity of up to 378 persons.

   Performing arts centres typically experience lower competition across localities due to shows touring to multiple
    venues across multiple regions.

   However, Noosa would be in a competitive environment with the venues managed by Sunshine Coast Venues
    and Events, including Lake Kawana Community Centre (40 minutes from Noosa) and The Events Centre (50
    minutes from Noosa) in addition to the proposed Sunshine Coast Entertainment, Convention and Exhibition
    Centre (40 minutes from Noosa).

   The proposed 700-seat Noosa Performing Arts Theatre would appear to feature quite a high seating capacity
    relative to the local population when compared with other regions, with the exception of the theatre component
    of the Gladstone Entertainment Convention Centre – this is particularly the case given the facilities provided
    elsewhere on the Sunshine Coast.

4.6.3     Financial Performance

   All surveyed venues incur considerable operating losses, even when depreciation is excluded.

   Such as outcome would also be highly likely for the proposed Noosa Convention Centre and Performing Arts
    Centre.

4.6.4     Funding

   Some of the larger convention centres have been at least part funded from the Queensland Government or
    other external partners, although funding programs are much tighter in the present environment.




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