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


    Expenditure Item                                                             $/Delegate
                                                                                       Day
    Adjusted Spend
    Venue (100% Captured by Convention Centre)                                        $0.00
    Food and Beverage (100% Captured by Convention Centre)                            $0.00
    Equipment (50% Captured by Convention Centre)                                    $13.40
    Administration (30% Captured by Noosa Economy)                                    $7.20
    Marketing, promotion and design (30% Captured by Noosa Economy)                   $4.40
    Key note and other sponsored speakers (30% Captured by Noosa LGA Economy)         $6.10
    Security                                                                          $1.60
    Total Adjusted Spend                                                             $32.60
Source: EY (2015), AEC

CCIQ Noosa indicates that a portion of tourism activity could be shifted from general tourism to the MICE sector.
For the purposes of this assessment, it is assumed that 50% of the MICE stays replace existing general tourism
stays (which feature estimated local economy spending of $150 per day), while the remaining 50% will augment
current general tourism stays.

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.
No account is made for this potential impact in the below estimates and therefore they are considered to reflect
upper end impacts.

Allowing for displaced and transferred general tourism expenditure, the incremental spend in the local economy is
estimated at $3.1 million per annum as per the following table.

Table 7.4. Convention Centre Delegate Spend Estimates
    Driver                                                                         Estimate
    Number of Conferences/Events Held                                                    26
    Average Number of Days per Conference/Event                                          2.5
    Number of Delegates per Conference                                                  300
    Annual Delegate Days                                                             19,500
    Less Local Resident Delegate Days                                                 2,340
    Non-Resident Delegate Days                                                       17,160
    Average Spend per Delegate Day                                                  $219.71
    Total Delegate Spend per annum                                               $3,770,224
    plus Organiser Spend per annum ($32.60/delegate day)                           $635,700
    less Displaced General Tourism Spend per annum ($150.00/day)                 $1,287,000
    Incremental Spend per annum                                                  $3,118,924
Source: AEC

For modelling purposes, visitor expenditure categories have been allocated to the most relevant ANZSIC sectors
based on assumptions made by AEC.

7.2.3.2        Performing Arts Centre

Centre Operations
Performing Arts centre operations have been modelled based on direct operating expenditure of $1.9 million (see
section 5.4.2) less existing operation expenditure at the J of $0.9 million. For modelling purposes this turnover has
been allocated to the following ANZSIC categories:

      15% ($0.15 million) to food and beverage services.

      85% ($0.85 million) to heritage, creative and performing arts.




                                                                                                                  30