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


AEC regarding the most appropriate ANZSIC industries for each activity, and the relevant proportion of expenditure
to be allocated to each industry. For this assessment it is assumed:

      85% ($25.5 million) of total development expenditure would be in non-residential building construction (i.e. for
       construction of the centre structures).

      10% ($3.0 million) of total development expenditure would be in professional, scientific and technical services
       (i.e. for a range of professional services such as design, engineering, etc.).

      5% ($1.5 million) of total development expenditure would be in construction services (i.e. for land clearing,
       excavation works and levelling, as well as for external gardens and internal finishes).

Only the construction activity expected to be undertaken within the Noosa LGA has been included in the economic
impact assessment. For the purposes of this assessment it was assumed:

      Approximately 50% of the direct expenditure on construction activity would be sourced from local businesses
       and labour (including construction and professional services activity).

      Approximately 25% of purchases on goods and services (supply chain related activity) made by construction-
       related businesses sourced from outside the Noosa LGA would be spent within the local economy (i.e., 25%
       of the Type I flow-on activity associated with non-local construction companies is assumed to represent
       additional local activity in Noosa LGA).

7.2.3          Operations

7.2.3.1        Convention Centre

Centre Operations
Convention Centre operations have been modelled based on direct operating expenditure of $2.3 million (see
section 5.4.1). There is the potential for some degree of cannibalism of the existing convention centre market in
Noosa given that the convention centre has the opportunity to offer partitioned areas of a similar size to those that
presently exist. Therefore, there is potential for the estimates applied to overstate the economic impacts within
Noosa.

For modelling purposes this turnover has been allocated to the following Australia and New Zealand Standard
Industrial Classification (ANZSIC) categories:

      60% ($1.4 million) to food and beverage services.

      40% ($0.9 million) to heritage, creative and performing arts6.

Visitor Spend
Based on EY (2015), it has been assumed that the average spend per delegate could be around $880 per delegate
stay, or just under $350 per delegate day, compared to normal spend by non-business event visitors is estimated
at $176 per day (CCIQ Noosa, pp.7-8).

Based on this total spend, exclusions were made to account for expenditure unlikely to be captured within the
Noosa LGA (e.g. airfares) and spend which will be captured directly by the Convention Centre facility (e.g. delegate
registration) which has been accounted for in the centre operations estimates in the previous section. These
exclusions provide an estimated local spend of approximately $220 per delegate day (compared to approximately
$150 per non-business event visitor) as shown in the table below.

For modelling purposes the visitor mix has been based on EY (2015) splits:




6
    Which as an ANZSIC sector incorporates entertainment centre operation.




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