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


to accommodate the safe passage of attendees, staff and performing artists. These costs have not been included
in this assessment but must be considered by Council in assessing the relative merits of further progressing the
CCIQ Noosa proposal.


5.3            REVENUE

5.3.1          Convention Centre
For the purposes of determining potential revenue streams for the proposed Convention Centre, the following price
points have been adopted:

      $3,000 per day for commercial hirers (accounting for 85% of hires).

      $1,500 per day for not-for-profit hirers (accounting for 15% of hires).

      $750 per day on average for additional hire revenue (e.g. equipment, technical staff).

      $60 per delegate per day charge for catering, services and consumables, with a 20% profit margin applied for
       catering commission plus mark-up on other services and consumables.

      $100 per meeting room hire (on average).

      Other revenues equating to 5% of total revenues.

The following table provides a breakdown of the estimated revenue streams based on applying the above
assumptions and adopted potential demands.

Table 5.4: Estimated Potential Revenue Streams – Convention Centre
    Revenue Item                   Value
    Venue Hire                  $213,438
    Recoveries                   $46,875
    Delegate Fees/Catering    $1,170,000
    Other                        $11,234
    Total Revenue             $1,450,724
Source: AEC.


5.3.2          Performance Arts Centre
Excluding bar sales, lease revenue and sundry revenue, performance-related revenue at The J currently equates
to $1,235 per theatre seat. Based on selected market comparators, this has the potential to improve to $1,500 per
theatre seat as a result of becoming part of the ‘touring circuit’ for artists and performances requiring a greater
capacity to ensure appropriate cost recovery. This is based on the presumption that the proposed Performance
Arts Centre is able to attract appropriate performances, capture leakage that presently exists to other facilities on
the Sunshine Coast, in addition to facilitating additional attendances from the local population.

It is anticipated that existing leases (e.g. Noosa Community Radio 101.3fm, University of Sunshine Coast, Hillsong)
will continue under the new facility. Bar/kiosk/café sales are estimated to contribute 15% to total revenue excluding
lease revenue, while other revenue is assumed to total 5% of total revenue.

The following table provides a breakdown of the estimated revenue streams based on applying the above
assumptions and adopted potential demands.

Table 5.5: Estimated Potential Revenue Streams – Performing Arts Centre
    Revenue Item                                   Value
    Venue Hire/Ticketing/Leases/Recoveries      $840,000
    Bar/Kiosk/Café Sales                        $139,141
    Other                                        $51,534
    Total Revenue                             $1,030,675
Source: AEC.




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