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



5.            FINANCIAL ASSESSMENT
5.1           DEMAND

5.1.1         Convention Centre
It is extremely difficult to establish a baseline position for Convention Centre demand, given that the proposal is to
construct a facility and enter into competition with existing providers in other locations for a completely new market
segment – being the 350-450 MICE sector.

The CCIQ proposal indicates that 60 conferences could be held annually with an average of 450 delegates per
conference, per the following table.

Table 5.1: CCIQ Noosa Proposed Convention Centre Demand
    Demand                                  Value       Item
    Conferences per Week                          2       A
    Number of Weeks Occupied                      30      B
    Number of Delegates per Conference        450         C
    Annual Conferences Held                       60    AxB
Source: CCIQ Noosa

This would appear to be extremely optimistic, both in terms of number of events and average number of delegates
per event.

It is acknowledged that Noosa is a brand that is understood and recognised by travellers nationwide and worldwide.
However, there are a range of different considerations made by conference organisers and attendees when
decisions are made regarding appropriate conferencing locations, including (but not limited to):

      Location and proximity to attractions (strength for Noosa given its national and international brand).

      Access (weakness for Noosa, given 30 minutes from Sunshine Coast Airport and the limited airline connections
       to source markets without the need for airport or road transfers).

      Accommodation (weakness for Noosa given that many competing facilities in the mid-level MICE market are
       full service venue and accommodation providers on the one site).

The following baseline demand has been incorporated into the financial assessment which is still deemed to be on
the high end based on experiences in other regions:

      65 days booked for conferences (equating to 26% capacity utilisation of available weekdays and 18% capacity
       utilisation of all available days).

      Average of 300 delegates attending each booked conference day.

      400 meetings booked during the course of the year in meeting rooms.

The following table provides a breakdown of the adopted demand assumptions for the Convention Centre.

Table 5.2: Adopted Convention Centre Demand
    Demand                                             Value     Item
    Number of Conferences/Events Held                     26      A
    Average Number of Days per Conference/Event           2.5     B
    Number of Delegates per Conference                   300      C
    Annual Number of Days Booked                          65     AxB
    Annual Delegate Days                               19,500   AxBxC
    Annual Number of Meetings Booked                     400
Source: AEC




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