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



EXECUTIVE SUMMARY
BACKGROUND
Noosa Council (Council) engaged AEC Group Pty Ltd (AEC) to undertake a review of CCIQ Noosa’s pre-feasibility
study into a proposed Convention Centre with a seating capacity of 1,000 and a separate (but integrated)
Performing Arts Centre with a seating capacity of at least 700. The assessment is to also include an initial high-
level financial and economic impact assessment to allow Council to make an informed decision regarding whether
the concept/proposal should be progressed to the full feasibility stage.

The capital cost of the proposal is estimated at up to $30 million (per CCIQ Noosa estimates), with a potential site
for the development being the current site of The J.


MARKET ASSESSMENT

Convention Centre
There are a number of different privately owned and operated conference and accommodation venues in Noosa
catering for the 150-300 seating capacity conferencing market. In the broader Sunshine Coast market, there are a
variety of similar venues with a holistic service offering that compete for the same market, in addition to a number
of other venue only providers such as sporting clubs, RSL and halls.

In the mid to high level Meetings Incentives Conference and Exhibition (MICE) market, Novotel Twin Waters (30
minutes from Noosa) offers 1,000 seating capacity and the Lake Kawana Community Centre (40 minutes from
Noosa) offers 740 seating capacity. There is considerable uncertainty surrounding the future of the Palmer Coolum
Resort and future use of the site, although it also features considerable capacity to meet the needs of the mid to
high level MICE market should it come back online at some point. By 2020, the following major additions are
expected in the regional market:

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

   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 floor print.

Performing Arts Centre
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 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).




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