Our Reference: C:\DOCUMENTS AND SETTINGS\GARNERG\DESKTOP\PUBLICATIONS\BUSINESS PLAN CENTRAL QLD EVENTS CENTRE.DOC R R o o c c k k h h a a m m p p t t o o n n C C i i t t y y C C o o u u n n c c i i l l C C E E N N T T R R A A L L Q Q U U E E E E N N S S L L A A N N D D E E V V E E N N T T S S C C E E N N T T R R E E I In nt te er rn na at ti io on na al l E Ex xh hi ib bi it ti io on n C Co om mp pl le ex x, , R Ro oc c ck kh ha am mp pt to on n B B U U S S I I N N E E S S S S P P L L A A N N 1 1 . . P P R R E E F F A AC C E E This Business Plan is the final Report setting out, inter alia, details, relating to operational guidelines for a proposed redevelopment of the Rockhampton Showgrounds, Victoria Park Precincts, Rockhampton State High School, Gracemere Sales Yards and other areas which together incorporate the development of the international exhibition complex project (“the Project”) to be carried out in the vicinity of Rockhampton, Queensland. This Project, initiated by Rockhampton City Council ("the Council") has been carried out utilising the services of Global Solutions 4 Pty Ltd (“the Consultant”) on behalf of a consortium of consulting colleagues in Global Solutions 4 Pty Ltd, Hollingsworth Project Consultant, and Matthew Weathered & Associates (“the Consulting Team”).
Transcript
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This Business Plan is the final Report setting out, inter alia, details, relating to operational guidelines for a proposed redevelopment of the Rockhampton Showgrounds, Victoria Park Precincts, Rockhampton State High School, Gracemere Sales Yards and other areas which together incorporate the development of the international exhibition complex project (“the Project”) to be carried out in the vicinity of Rockhampton, Queensland. This Project, initiated by Rockhampton City Council ("the Council") has been carried out utilising the services of Global Solutions 4 Pty Ltd (“the Consultant”) on behalf of a consortium of consulting colleagues in Global Solutions 4 Pty Ltd, Hollingsworth Project Consultant, and Matthew Weathered & Associates (“the Consulting Team”).
3. INTRODUCTION.................................................................................................. 8FACILITIES REQUIREMENT – ORIGINAL IDENTIFICATION OF NEEDS .................................8
Overview .................................................................................................................................... 8Initial Concepts / Development of the Project................................................................... 9International Exhibition Complex Project Control Group / Reference Group.............. 9
ORIGINAL MASTER PLAN BUDGET SUMMARY – 17 MAY 2001 .......................................10ALTERNATE “PRODUCT” CONCEPT....................................................................................11THE FINAL (REVISED) MASTER PLAN BUDGET SUMMARY.................................................12
4. SCOPE AND OBJECTIVES................................................................................. 15INTRODUCTION .....................................................................................................................15PROJECT OBJECTIVES..........................................................................................................17EXPECTED OUTCOMES.........................................................................................................17
6. RESEARCH FINDINGS AND IMPLICATIONS ..................................................... 21MARKET ANALYSIS.................................................................................................................21
Industry Description ................................................................................................................ 21The MICE Market..................................................................................................................... 22
PROFILE OF ROCKHAMPTON REGION ..............................................................................24Regional Overview................................................................................................................. 24Rockhampton – An Urban Centre By Definition ............................................................... 25Population & Growth in Rockhampton / the Fitzroy Region........................................... 27Social Indicators (Index of Relative Disadvantage)......................................................... 29
COMPETITIVE ADVANTAGE.................................................................................................36The Importance of Competitive Advantage .................................................................... 36The Business of the Proposed International Exhibition Complex.................................... 36The Uniqueness of Rockhampton: Competitive Advantages ........................................ 36The Uniqueness of Rockhampton: Other Advantages .................................................... 36
THE BEEF EXPO EVENT AT ROCKHAMPTON ......................................................................37The Beef Expo Event............................................................................................................... 37Beef Expo 2000 – Summary of the Event ............................................................................ 38Beef Expo 2000 - Economic Impact (Detail)...................................................................... 39Beef Expo 2000 - Other Detail .............................................................................................. 41
MAJOR EVENT SUCCESS STORIES.......................................................................................42Calgary Stampede (Canada).............................................................................................. 42Tamworth Country Music Festival (Australia) ..................................................................... 44Australian National Field Days (Australia) ........................................................................... 44Indianapolis 500 (United States)........................................................................................... 45Conclusions.............................................................................................................................. 46
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7. OUTLOOK FOR THE TOURISM / MICE INDUSTRIES ........................................... 48PROJECT’S RELATIONSHIP TO TOURISM.............................................................................48THE ECONOMIC CONTEXT OF TOURISM...........................................................................48THE NEED TO ADOPT A LONG TERM VIEW........................................................................49INTERNATIONAL & DOMESTIC TOURISM, AND THEIR RELATIVE IMPORTANCE.............50
The Relative Importance of the Domestic Market Despite an Increasing International Market............................................................................................................... 50Potential Markets (International) ......................................................................................... 50The Growth of International Tourism in Australia ............................................................... 53International Market Barometer (December 2001).......................................................... 54The Growth of Domestic Tourism.......................................................................................... 55Tourist Accommodation ........................................................................................................ 58Queensland – An Overview.................................................................................................. 60International Visitors to Queensland ................................................................................... 61Accommodation Trends in Queensland ............................................................................ 63Tourist Accommodation in Queensland / Fitzroy Statistical Division & Rockhampton ......................................................................................................................... 66Visitor Expenditure in Fitzroy .................................................................................................. 70
Total Visitor Expenditure............................................................................................. 71Expenditure by Source of Visitor................................................................................. 71Expenditure by Purpose of Visit.................................................................................. 71
MICE MARKET OUTLOOK & CONSIDERATIONS RELATED TO VENUE & DESIGN OF FACILITIES .........................................................................................................................74
Conference and Exhibition Venues in Queensland......................................................... 74The Need for Venue Flexibility .............................................................................................. 77MICE Industry Growth Forecasts .......................................................................................... 79MICE Industry Trends – A Summary ...................................................................................... 81
8. THE VISION....................................................................................................... 86
9. ACTIVITIES SCHEDULE ...................................................................................... 87ACTIVITY CONSTRAINTS .......................................................................................................87MAJOR FESTIVALS & EVENTS HELD IN AUSTRALIA & OVERSEAS ....................................90THE CAIRNS CONVENTION CENTRE – ACTIVITIES.............................................................90FORECASTS FOR EVENT PLANNING AT ROCKHAMPTON – ASSUMPTIONS...................93
POTENTIAL EVENTS FOR THE CENTRAL QUEENSLAND EVENTS CENTRE.........................94Existing Events .......................................................................................................................... 95New Events............................................................................................................................... 96
10. MARKETING AND PROMOTIONS..................................................................... 97OVERALL STRATEGY..............................................................................................................97
Background & Overview....................................................................................................... 97The Strategy ............................................................................................................................. 97Assumptions in Developing the Strategy ............................................................................ 98
MARKETING STRATEGIES & INITIATIVES, INCLUDING SELLING & PROMOTIONAL ACTIVITIES...............................................................................................................................98MEMBERSHIP OF RELEVANT ORGANISATIONS ...............................................................102
Use of Marketing “Authorities” ...........................................................................................102International Association of Convention and Visitors Bureaux (IACVB) / Australian Association of Convention Bureaus (AACB)..................................................102
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AIME ........................................................................................................................................104Australasian SpecialEvents..................................................................................................104Event Industry Associations .................................................................................................104Other Industry Associations .................................................................................................105
PROMOTING THE UNIQUENESS OF ROCKHAMPTON ....................................................105LOGO / TRADE MARK REGISTRATION..............................................................................107
Selection of Organisational Type.......................................................................................108The Enterprise Provisions in the Local Government Act ................................................109Composition of the Board...................................................................................................111Functions of the Board......................................................................................................... 112
Duties, Responsibilities & Liabilities of the Board..................................................... 112Function of the Central Queensland Events Centre CEO ............................................113
Position Job Descriptions.....................................................................................................116Salaries & Remuneration .....................................................................................................117Use of Contract Labour and Enterprise Bargaining .......................................................117
12. OPERATIONS AND MAINTENANCE ............................................................... 118OPERATIONS & MAINTENANCE FUNCTIONS...................................................................118LOCAL GOVERNMENT PROVISIONS................................................................................118BUDGET PROVISIONS FOR MAINTENANCE .....................................................................118
USE OF VOLUNTEER WORKERS..........................................................................................119
13. IMPLEMENTATION .......................................................................................... 120PRIMARY RESPONSIBILITY...................................................................................................120OTHER FUNDING SOURCES / GOVERNMENT SUPPORT OF INITIATIVES ......................121
Queensland Events Regional Development Program...................................................121Regional Tourism Program...................................................................................................122Austrade .................................................................................................................................124Department of State Development ..................................................................................124
15. FINANCIAL ANALYSIS....................................................................................128OVERVIEW OF FINANCIALS: ROCKHAMPTON AGRICULTURAL SOCIETY INC ...........128
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(5) Gross Cash Flow / Total Financial Debt (nominal %)....................................... 133(6) Surplus/Total Tangible Assets (81.98%) ......................................................... 133(7) Short Term Debt / Total Financial Debt (11.43%) ........................................... 134
Liquidity / Working Capital..................................................................................................134(8) Current Ratio (-66.54%) .................................................................................. 134(9) Days Receivables (7 Days) ............................................................................. 135(10) Days Inventory (2 Days) ................................................................................... 135
Conclusions............................................................................................................................136THE STAGED CONSTRUCTION PROGRAM.......................................................................136MAJOR CAPITAL EXPENDITURE ITEMS..............................................................................137MAJOR ASSUMPTIONS USED IN FORWARD FINANCIAL PLANNING............................138
Primary Assumptions .............................................................................................................138Assumptions Used in Determining Expense Items ...........................................................139
PROFIT & LOSS / CASH FLOW STATEMENTS.....................................................................141SENSITIVITY ANALYSIS..........................................................................................................146FUNDING REQUIREMENTS..................................................................................................153
17. DISCLAIMER & QUALIFICATION BY CONSULTANT........................................ 155
18. APPENDICES................................................................................................... 156ACKNOWLEDGMENTS & BIBLIOGRAPHY ........................................................................156MAJOR SITE LOCATIONS (EX GRACEMERE) ...................................................................161ORIGINAL CONCEPTUAL BUDGETS BASED ON PRELIMINARY SKETCH PLANS (PROJECT SERVICES, MAY 17, 2001)................................................................................162
FINAL REVISED CONCEPTUAL BUDGETS (BASED ON PROJECT SERVICES PRELIMINARY SKETCH PLANS / DATA & OTHER MATERIAL) ..........................................164
LOCAL REQUIREMENTS / INFRASTRUCTURE NEEDS........................................................166ROCKHAMPTON AGRICULTURAL SOCIETY INC. FINANCIAL STATEMENTS 1998 – 2001 ......................................................................................................................................176TOURISM REGIONS IN QUEENSLAND, INCLUDING FITZROY .........................................179MAJOR PROJECTS – FITZROY / ROCKHAMPTON REGION ...........................................180LETTERS OF APPROVAL FOR FUNDING THE PROJECT (QLD STATE GOVERNMENT) ...................................................................................................................181MEDIA RELEASES / NEWSPAPER CLIPPINGS....................................................................184STATUS OF LEASE AGREEMENTS IN THE INTERNATIONAL EXHIBITION COMPLEX PRECINCT.............................................................................................................................190INITIAL CONCEPTS / DEVELOPMENT OF THE PROJECT (FACILITIES WORKSHOP REPORT EXTRACT, FEBRUARY 2000)..................................................................................192MAJOR AUSTRALIAN FESTIVALS AND EVENTS 2001-02 ..................................................198MAJOR AUSTRALIAN EXHIBITIONS 2001-02 .....................................................................202MAJOR WORLD EXHIBITIONS 2001 - 2002.......................................................................208
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SITE PHOTOGRAPHS ...........................................................................................................211
19. SPECIAL ADDENDUM: ALTERNATE “PRODUCT” CONCEPT ........................... 215OVERVIEW OF ALTERNATE CONCEPT PLAN ...................................................................215
International Exhibition Complex Multi-Purpose facility ................................................216ALTERNATE CONCEPTUAL BUDGET BASED ON REVISED SCHEMATIC CONCEPT PLAN .....................................................................................................................................217
Overview ................................................................................................................................217Funding the Alternate Concept.........................................................................................218
HOW THE ALTERNATE CONCEPT MEETS KEY STRATEGIC ISSUES ..................................218ALTERNATE MASTER PLAN BUDGET SUMMARY, GLOBAL SOLUTIONS 4, 19-OCT-2001 ......................................................................................................................................220INTERNAL REPORT TO THE ROCKHAMPTON COUNCIL GENERAL PURPOSES COMMITTEE 7 NOVEMBER 2001 (RECOMMENDATIONS FOR THE CONCEPT PLANS FOR THE INTERNATIONAL EXHIBITION COMPLEX)..............................................222
20. ATTACHMENTS ............................................................................................... 236ORIGINAL MASTER PLAN CONCEPTUAL BUDGET AND PRELIMINARY SCHEDULING OF CAPITAL WORKS (PROJECT SERVICES) .............................................236FINAL REVISED MASTER PLAN CONCEPTUAL BUDGET AND PRELIMINARY SCHEDULING OF CAPITAL WORKS (INCLUDING ADJUSTMENTS TO ORIGINAL MASTER PLAN).....................................................................................................................236CONSTRUCTION SCHEDULE FOR THE CENTRAL QUEENSLAND EVENTS CENTRE .......236INTERNATIONAL EXHIBITION COMPLEX (ROCKHAMPTON) – PROJECT SERVICES CONCEPT PLANS ................................................................................................................236ALTERNATE SCHEMATIC CONCEPT PLAN (GLOBAL SOLUTIONS 4) .............................236BALANCE SHEET ANALYSIS - ROCKHAMPTON AGRICULTURAL SOCIETY INCCENTRAL........................................................................................................................236QUEENSLAND EVENTS CENTRE CASH FLOWS - 6 YEAR, MONTHLY CASH FLOW FORECAST ............................................................................................................................236
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222... EEEXXXEEECCCUUUTTTIIIVVVEEE SSSUUUMMMMMMAAARRRYYY In accordance with the Consultant’s proposal as accepted, in addition to a number of progressive draft reports, the Final Report will be presented in two stages: 1) Following completion of the analysis, a Draft Final Report (Business Plan) will
be presented to the Council management, which will include detail of all findings.
2) Following completion of the above, shortly thereafter a completed Final Report will be presented which will include the finalised plans, and an additional section being the “Executive Summary”.
Accordingly, this version of the Final Report excludes an Executive Summary.
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333... IIINNNTTTRRROOODDDUUUCCCTTTIIIOOONNNThis project involves the development of a Business Plan for the redeveloped Rockhampton Showgrounds together with parts of Victoria Park and the Rockhampton State High School.
FACILITIES REQUIREMENT — ORIGINAL IDENTIFICATION OF NEEDS
Overview Extracted from: ROCKHAMPTON EXHIBITION COMPLEX (INTERNATIONAL STANDARD FACILITIES), FACILITIES WORKSHOP REPORT, 10 February 2000 Beef Expo was first staged in Rockhampton in 1988 as part of the Australian bicentennial celebrations. Since 1988, the Beef Expo has been held every three years in Rockhampton - a world class beef cattle event that attracts national and international visitors and exhibitors. The facilities that have been utilised previously by event organisers (the Australian Beef Cattle Exposition Association) no longer meet the needs of the event in terms of functionality or image.
A number of the major facilities previously used by the Beef Expo also require upgrading for other reasons relating to the facility owners’ core business needs. Various parties have also expressed the desire for new sports facilities, convention centres and other facilities for community use. In order to understand the needs of Beef Expo, isolate the facilities development work that is essential for this event and compare this to the needs and plans of interested parties, it was decided to conduct a consultative, facilitated workshop.
The objectives for the Workshop were to raise stakeholders' awareness of the diverse range of facility requirements of Beef Expo 2003, and agree on the role that each stakeholder may play in providing and developing the facilities required for the event. As the workshop closed the group agreed that it had reached a number of conclusions as follows:
1. The Project supports the board's redevelopment plans for Gracemere Sale Yards.
2. The Project supports the redevelopment plans for the Rockhampton Showgrounds and the Victoria Park precinct as per the requirements outlined during the workshop.
3. The group supports in principle the redevelopment plans for Browne Park to accommodate 1500 seat conference centre.
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Initial Concepts / Development of the Project Extracted from: ROCKHAMPTON EXHIBITION COMPLEX (INTERNATIONAL STANDARD FACILITIES), FACILITIES WORKSHOP REPORT, 10 February 2000
As a result of the aforementioned workshop, the concepts for further development of the Project were enunciated in the following way:
Primary intended purpose statement for Beef Expo “To stage a world class beef cattle expo which highlights and showcases all aspects of the Australian Beef Industry and provides an educational networking and social forum for all sectors of the industry and the wider community”
Promotes Central Queensland Region internationally Clean, green, safe International and national Promoting industry and issues
(The expo is already a world class beef cattle expo but the existing facilities do not reflect the standard expected by a world class expo). The Report highlighted many considerations concerning the proposed development, which are summarised in the Appendix to this Report: “INITIAL CONCEPTS / DEVELOPMENT OF THE PROJECT (FACILITIES WORKSHOP REPORT EXTRACT, FEBRUARY 2000)” This covers the following areas:
1. Shared ideas regarding the primary intended purpose of the proposed
development. 2. Primary intended purpose statement for the proposed development 3. Givens/ constraints 4. Assumptions 5. What’s Important? 6. Needs of Beef Expo – Function Listing that must be performed as part of the
Beef Expo event. 7. Functional Categorisation (to identify themes and clusters for
development). 8. The Problem Situation (Focus on Showground Facilities) 9. Scope of Work to Address “Gaps” at Showgrounds 10. Scope of Work to Address gaps at Victoria Park 11. Possible Roles for Facility “Owners” 12. Conclusions & Recommendations
International Exhibition Complex Project Control Group / Reference Group
The initial development of the Project saw Council joining with Brothers Leagues Club, Rockhampton Agricultural Society, Rockhampton District Saleyards Board and Rockhampton Leagues Club to form the Rockhampton Exhibition Complex Project Control Group, assisted by personnel from the Central Queensland Area Consultative Committee, Department of the Premier & Cabinet, and Project Services. The International Exhibition Complex Reference Group was formed shortly thereafter to include a much broader cross section of stakeholders and interested parties. Building on earlier work completed during community
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consultation and workshops saw the International Exhibition Complex Reference Group concluding as follows:
• Project to be known as the International Exhibition Complex (Rockhampton)
o Emphasis to be given to developments at various locations including the Showgrounds, Victoria Park, Tennis Centre / Brothers Leagues Club precincts, Gracemere Sale Yards, Rockhampton State High School, etc.
• University has spent around $5m on their Sporting Facilities Complex
o Important not to duplicate / conflict
• Consultants to liaise with Jane Morgan (Capricorn Tourism)
• Project Services emphasised that their drawings are concept stage only with requirements not yet fully established
• Liaison with representatives of the Rockhampton State High School is important (not yet undertaken)
• Imperative that timing of development take account of existing planned major events, e.g. World Brahman Congress, Gemboree, and Rockhampton Annual RAS Show
ORIGINAL MASTER PLAN BUDGET SUMMARY — 17 MAY 2001 INTERNATIONAL EXHIBITION COMPLEX (ROCKHAMPTON) INTERNATIONAL STANDARD FACILITIES Budget as Prepared by Project Services1 Conceptual Budgets Based on Preliminary Sketch Plans
Stage 1 $
Stage 2 $
Total Stages 1 &
2 ($) Gracemere Exhibition Centre 3,000,000 636,600 3,636,600Redevelop Walter Pierce Pavilion 1,207,400 1,701,400 2,908,800New Entry / Administration Building 0 2,478,300 2,478,300New Cattle Pavilion 2,400,000 0 2,400,000Amenities Buildings 654,100 654,100 1,308,200Cattle Yards & Seating 0 1,000,000 1,000,000Demolish Hideaway Bar and Relocate Facilities; Demolish older section of James Lawrence pavilion; Demolish Stables; Relocate Dog Pavilion
0 600,000 600,000
Site works, Landscaping and Re-profiling to Victoria Park & Trade Display Area
1,288,200 0 1,288,200
Refurbish Robert Archer Grandstand 0 752,100 752,100Waste Treatment Plant; Underground Services; Fencing; Refurbish Pavilions, Ring Main; Site Survey; Electrical Upgrade
1,450,300 652,000 2,102,300
TOTAL 10,000,000 8,474,500 18,474,500Refer Appendix “CONCEPTUAL BUDGETS BASED ON PRELIMINARY SKETCH PLANS (MAY 17, 2001)” for further detail, to be read in conjunction with attachment “INTERNATIONAL EXHIBITION COMPLEX (ROCKHAMPTON) – PROJECT SERVICES CONCEPT PLANS”. Project Services emphasise that their drawings are concept stage only with requirements not fully established
1 Queensland Government – Department of Public Works
INTERNATIONAL EXHIBITION COMPLEX (ROCKHAMPTON)MASTER PLAN BUDGET SUMMARY
During the course of development of the Business Plan, the Project became known as the International Exhibition Complex (Rockhampton). Subsequently, this has been changed to the Central Queensland Events Centre (pending formal approval by Council)2.
ALTERNATE “PRODUCT” CONCEPT
During the development of this Business Plan, an alternate concept was developed by the Consultants. Considered to represent an ideal operating scenario, especially from a marketing point of view, the concept would be dependant upon available funding (but working within the general parameters of the total amount of the original budget), and the willingness of affected organisations to accept required changes (i.e. location and nature of proposed facilities). For various reasons, these proposals have not been accepted by Council3, and in any event recently announced budget restrictions have precluded its acceptance, but nevertheless have been included for reference purposes in this Report as an Appendix. By way of summary, compared to the original master plan the concept involved a significant modification of some major facilities, deletion of certain planned minor structures, and the addition of new Facilities including: changed Primary entry location and themed entrance Statement / Icon; Secondary entry with two entry statements; Landmark orientation node and themed Statement (tower) incorporating Visual / Orientation Focal Point; a Multi-Purpose Convention/
2 Reference: 14 October 2001, advice received from Mr Peter Owens, Manager, Rockhampton Venues
and Events following meeting with Ms Barbara Harwood (Manager, Rockhampton & District Promotion & Development Association Inc.). The alternate name (preferred option) indicated for the International Exhibition Complex is the Central Queensland Events Centre.
3 Refer Appendix to this Report - Internal Report to the Rockhampton Council General Purposes Committee 7 November 2001 (Recommendations for the Concept Plans for the International Exhibition Complex), where these and other issues were canvassed.
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Entertainment Facility (incorporating International Exhibition Complex HQ, Convention / Conference Facilities, Large Flat floor area and Tennis Centre HQ); Outdoor Entertainment Complex (River Stage Amphitheatre – concerts); upgraded AFL / Cricket Facility; and upgraded River Esplanade. The concept also contained a number of “ancillary Features” such as Car Parks, Rest & Shade, River promenade, and the use of Portable / Relocatable Grandstands.
The primary facility in the redesign was the inclusion of an International Exhibition Complex Multi-Purpose facility with a floor area of between 4,760 to 5,760 + square metres depending on location (allowing a flat floor area, depending on design, of at least 2,500 square metres). The planned changes were primarily in response to market research indicating both need and appeal to an otherwise basically over-saturated market.
THE FINAL (REVISED) MASTER PLAN BUDGET SUMMARY
The Final Master Plan is basically in direct response to both Council’s rejection of the “Alternate” product concept, and budget restrictions following recently announced Government approvals, the latter which is summarised on the following table:
Thus, the Final Revised Master Plan is based on a State Government approval of $8m spread over two financial years 2001/02 and 2002/03, which, together with Rockhampton City Council contribution of $2.0m, sets the total budget for this Project at $10.0m (plus separate approvals for Gracemere and Beef 2003). The process leading up to development of the Original Master Plan (and thereafter) involved extensive consultation within the Rockhampton community. It represented a generally agreed formulae across of wide section of community interest groups and organisations, as to how the Project might be staged and how funding would be applied. It is therefore important that a comparison with the original Master Plan, and the Final Revised Master Plan, be readily appreciated and identified. This information is included below, detailing the changes made to the Original Master Plan:
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Gracemere Exhibition Centre 3,000,000 none 1 Gracemere Exhibition Centre 636,600 (136,600) 2 Total 3,636,600 (136,600) Items Modified Original
Budget Adjustment to Original
Budget
Stage
Electrical Up grade 777,600 (194,400) 1 Site works and Re-profiling to Victoria Park 500,000 (250,000) 1 New Cattle Pavilion 2,400,000 (1,200,000) 1 Amenities Buildings 654,100 (327,050) 1 Redevelop Walter Pierce Pavilion 1,207,400 (539,750) 1 Site works and Landscaping 777,600 (388,800) 1 Amenities Buildings 654,100 (327,050) 2 Redevelop Walter Pierce Pavilion 1,701,400 (425,350) 2 New Entry / Administration Building 2,478,300 (619,575) 2 Refurbish Robert Archer Grandstand 752,100 (188,025) 2 Relocate Dog Pavilion 100,000 (25,000) 2 Cattle Yards & Seating 1,000,000 (402,900) 2 Total 13,002,600 (4,887,900) Items Deleted Original
Budget Adjustment to Original
Budget
Stage
Demolish Hideaway Bar and Relocate Facilities
250,000 (250,000) 2
Refurbish Primac Pavilion & McCamley Meat Hall Pavilion
200,000 (200,000) 2
Demolish older Section of James Lawrence Pavilion
200,000 (200,000) 2
Total 650,000 (650,000)
Items Unchanged Budget Stage
Site Survey 26,000 1 Ring Main for Water Supply 122,800 1 Underground Services to Trade Display Area 316,500 1 Re-profile Trade Display Area 10,600 1 Underground Services to Victoria Park 191,400 1 Alterations to Fence to Victoria Park Tennis Courts 16,000 1 Waste Treatment Plant 324,000 2 Now Fencing to Exhibition Road 80,400 2 Demolish Stables 50,000 2 Fencing to Victoria Park Site 47,600 2 Sub-Total 1,185,300 Plus Acquisition of Showground site (not included in original Master Plan budget)
700,000 1
TOTAL 1,885,300
The final result (budget summary) is shown in the table below (later sections provide much greater detail):
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Item Stage 1 Stage 2 TotalRedevelop Walter Pierce Pavilion 667,650 1,276,050 1,943,700New Entry / Administration Building 0 1,858,725 1,858,725New Cattle Pavilion 1,200,000 0 1,200,000Acquisition of Showgrounds site 700,000 0 700,000Site works, Re-profile trade display area / Victoria Park and Landscaping
675,400 0 675,400
Amenities Buildings 327,050 327,050 654,100Cattle Yards & Seating 0 597,100 597,100Electrical Up grade 583,200 0 583,200Refurbish Robert Archer Grandstand 0 564,075 564,075Underground Services to Victoria Park & Trade Display Areas
507,900 0 507,900
Waste Treatment Plant 0 324,000 324,000New Fencing / Alterations to Exhibition Road & Victoria Park Site / Tennis Courts
16,000 128,000 144,000
Demolish Stables, Relocate Dog Pavilion 0 125,000 125,000Ring Main for Water Supply 122,800 0 122,800TOTALS 4,800,000 5,200,000 10,000,000
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444... SSSCCCOOOPPPEEE AAANNNDDD OOOBBBJJJEEECCCTTTIIIVVVEEESSSAn outline of the Business Plan's scope and objectives.
“the development of a business plan for the redeveloped Rockhampton Showground together with parts of Victoria Park and
the Rockhampton State High School”
The following information was provided by Council under their Terms of Reference (Consultant’s Brief).
INTRODUCTION
Rockhampton City Council requires the preparation of a business plan for the Rockhampton Showgrounds and Victoria Park sector of the Rockhampton Exhibition Complex.
As part of the staging of Beef 2000, it became apparent to the Australian Beef Cattle Exposition Association Inc, which stages Rockhampton's triennial beef expos, the Organisation could not hold the next beef expo at the Rockhampton Showgrounds, unless it was redeveloped.
The Rockhampton Showgrounds had been the site of the stud cattle championships and the trade fair as well as many networking and social activities since the holding of the first beef expo in 1988.
The Showgrounds were no longer large enough, but had become run down and were no longer suitable for the staging of an international exposition. Its supporting infrastructure was limited and this made the complex difficult to use and generated some serious environmental risks-
At the same time infrastructure at the Gracemere Saleyards, which had been used by the beef expos for its commercial cattle shows, had also deteriorated seriously with the display ring being in need of replacement.
Rockhampton City Council recognised the need to improve the City's event infrastructure to ensure the beef expos continued to be held in Rockhampton.
Rockhampton Mayor Cr Margaret Strelow saw this need as an opportunity to develop a larger exhibition precinct which could stretch from the Rockhampton Showgrounds through Victoria Park to the Southside swimming pool. Cr Strelow discussed this opportunity with Brothers Leagues Club and the Rockhampton Tennis Association and gained their agreement to the use of part of their facilities under some agreed conditions. She also spoke with representatives from the Rockhampton State High School about using the School’s redevelopments to augment the Rockhampton Showgrounds for larger exhibitions, such as the beef expo.
Council then joined with Brothers Leagues Club, Rockhampton Agricultural Society, Rockhampton District Saleyards Board and Rockhampton Leagues Club to form the Rockhampton Exhibition Complex Project Control Group. Office bearers and staff from the Central Queensland Area Consultative Committee, Department of the Premier & Cabinet and Project Services have helped the PCG develop a proposal to create the Rockhampton Exhibition Complex which
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include the redevelopment of the Rockhampton Showgrounds and its environs, and the Gracemere saleyards.
This proposal for the development of a multi-purpose facility has been presented to the Federal Government through the Prime Minister John Howard and the Queensland Government through the Deputy Premier, Treasurer and Minister for Sport Terry Mackenroth.
Council has also agreed in principle to purchase the Rockhampton Showgrounds from the Rockhampton Agricultural Society.
Council has now agreed to fund the development of a business plan for the Rockhampton Showgrounds sector of the Rockhampton Exhibition Complex. This will include use of areas of Victoria Park and the redevelopments at the Rockhampton State High School.
The Rockhampton District Saleyards Board has commissioned the development of a business plan for the Gracemere Saleyards. The two business plans together will constitute the business plan for the Rockhampton Exhibition Complex.
The business plan for the Rockhampton Showgrounds sector should concentrate on the opportunities offered by Council's purchase of the Rockhampton Showgrounds together with use of Victoria Park and the redevelopments at the Rockhampton State High School.
Council needs to have the business plan for the multipurpose complex completed by 31 July 2001.
Council expects the redeveloped exhibition complex, including the Gracemere Saleyards, will prove capable of staging a wide range of international, national, state and regional events- Rockhampton is ideally placed on the Queensland coast- and possesses excellent transport infrastructure which can cater for the arrival and departure large numbers of participants and visitors- The City also has good stocks of accommodation.
Superficially Council sees the complex, including the Gracemere Saleyards, could be used as a venue for the following:
• International, national, state, regional and local exhibitions and displays,
including the beef and possibly a horse and light metals expo • Rockhampton Show • Rockhampton Speedway and motor cross competitions • Major regional sporting events • Major horse activities such as rodeos, cutting and dressage competitions,
etc • Large religious assemblies and other meetings • Major cultural and musical activities
Rockhampton has an international reputation as a service centre for the beef industry. Council feels that the City can develop a similar reputation in regard to the horse activities.
As part of the business planning process, the consultant is requested to identify other regions, such as Tamworth, Orange and Toowoomba, which are well
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positioned and possess large accommodation stocks and from which Rockhampton could learn how to develop a rurally oriented exhibition complex.
PROJECT OBJECTIVES
Development of a business plan for the Rockhampton Showgrounds sector which includes adjoining areas of Victoria Park and the Rockhampton State High School
EXPECTED OUTCOMES
• A clear understanding of current “competitive” position
• a description of the Project’s objectives over the short, medium and long term;
• an action based business development plan outlining the agreed changes;
• the opportunity to involve stakeholders in the development of the Project;
• a well written business document incorporating the forward plan which provides stakeholders, including government, with a gateway for investment
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555... MMMEEETTTHHHOOODDDOOOLLLOOOGGGYYYMethodology used to complete the business plan. This Business Plan has been completed in close consultation with Rockhampton City Council, together with input received from a large number of representatives from various organisations in the Rockhampton region whom have, or potentially have, a stake holding in the Project. The base methodology (generic model) and assumptions utilised in completing this Business Plan may be best summarised in the diagram below:
T H E B U S I N E S S P L AN A Brief Summary
WHAT IS IT? Identification of "where a business is going" - THE WHERE or THE FUTURE, including details on
the business will capitalise on its marketing opportunities. (The Business Plan contains the Strategic Plan which is the driving force behind competitive
workplace change).
WHAT ARE THE AIMS & OBJECTIVES? To ensure the development of a strategic focus, i.e. assisting an enterprise to develop a strategic
plan of action for the realisation of its market and other opportunities.
WHY DO IT? Results in improvements to an enterprise effected through a change process in the business as
outlined in a plan of action. Ultimate outcome is increased profitability through people development, cost effectiveness of services and inputs, quality controls, marketing, product
development, and other factors.
Thus, the Consultant’s approach has been To facilitate the Council in developing
a BUSINESS PLAN with a business focus particularly in regard to the nature and scope of the proposed source capital funding arrangements, providing a "road map" for the future in terms of financial analysis and projections, operational details relevant to the venture, and other matters such as customer servicing, and “people”.
The following elements have been undertaken / included in documentation:
• Analysis of all aspects of the Project, including “people”, management, functions, marketing, operational flows and methods, financials.
• Desktop Market Research (Data Acquisition) to establish future prospects for the Project, including derivation from information from other regional locations likely to be of assistance.
• Workshops for strategic planning and related activities.
• Other Workshop activities including Action planning, and post-workshop activities including de-briefing for implementation. This has led to the development of a Project Development (Implementation) Plan. This includes a prioritised set of Action Plans, with details including resources allocated, cost, and impact.
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• Development of a suitable Marketing Plan with detailed strategies for the development and expansion of the Project generally (local, regional, state, national and international)
• Activities schedule, incorporating details of event staging and re-packaging for the Rockhampton Showgrounds sector.
• Financial Planning – cash flows for a 6 year horizon.
• Other factors including management, operations and other issues. A key component of the methodology has been the development of strategic
elements for the Project. This was required in order to determine the KEY STRATEGIC ISSUES which are documented within the section of this Report entitled RESEARCH FINDINGS AND IMPLICATIONS. The process involved the following steps:
1. Determination of the Project’s Strengths, Weaknesses, Opportunities, and Threats, through a SWOT analysis workshop4
2. Prioritisation of the above "SWOT" factors.
3. Identify, as a result of the above process, the Key Strategic Issues. This is a "needs-based" analysis.
4. Each Key Strategic Issue was further detailed in terms of its relative importance, rationale, and special features.
5. The final step was then undertaken, that is, the development of Strategy Elements and Action Plans
The above process was a critical phase in the determination of, and gaining an understand how to use the competitive advantages relating to the Project. From this point, various other aspects were able to be investigated and reported on in order to develop the business plan. This includes People, Marketing, Financial, Operations, and other plans. The totality and integration of all the foregoing has resulted in the final output: the Business Plan.
Apart from conducting discussions with a large number of stakeholders and other interested parties, both at Rockhampton and elsewhere, the Business Plan has been developed with the following key milestones applying:
Date Item Details July 2001 Orientation &
Preliminary site visit Project commencement and orientation. WORKSHOP held – Strategic Planning: Key Strategic Issues identified
August 2001 Presentation to the International Exhibition Complex Reference Group
International Exhibition Complex Reference Group. First Progress Report delivered. Confirmation of key strategic issues
Date Item Details August 2001 WORKSHOP Held The purpose of the Workshop held with various
4 A SWOT analysis identifies a business's Strengths, Weaknesses, Opportunities, and Threats . Typically,
organisation representatives, ideally at all levels, are involved in a "brainstorming" designed to identify such factors which will assist, inter alia, in the development of a more focused marketing plan. The SWOT analysis is designed to recognise these factors, separate them from broad to clear definitions, set the order of priorities, and finally plan for resolution (i.e. the process of "who, what, where, when").
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with Key Stakeholders
stakeholders was to confirm the strategic issues identified as a result of discussions held with some of the major stakeholders, and to identify further areas for investigation prior to the next stages of the consultancy. Workshop outcomes included identification of the “business” of the International Exhibition Complex, and identification of Rockhampton’s uniqueness / competitive advantages and how they might be promoted. Establishing a “Vision”.
August 2001 Draft Report #1 (Key Strategic Issues)
Preliminary Draft Report #1 was designed to outline findings thus far, including key issues, impediments, and first draft Strategies. The Consultants presented and discussed the Report with the Rockhampton Exhibition Complex Project Control Group and others.
September 2001
Reference Group Meeting
Briefing on preparation of the Business Plan – second presentation.
October 2001
Reference Group Meeting
Third presentation made to assist in the drafting of the Business Plan. Key component included presentation of a modified, alternate concept design for the Project.
October 2001
Special Council presentation
Presentation made to Council re proposed new alternate (modified) Project Concept.
October 2001
Draft Report #2 – Preliminary Marketing Plan
Marketing Plan issued (preliminary only, subject to further advice and discussion prior to completion). Also contained in documentation was the proposed alternate (modified) Project Concept, and the third Project Status Report as presented previously to the Rockhampton City Council.
November 2001
Major change in Project funding
Following RCC’s consideration of Critical Project Officer’s Report, advice received that the most likely scenario was that Council would receive $3.5m from the State Government (ex Gracemere, which when added to the RCC $2m this would make a fund of $5.5m). Amount restricts work undertaken to the confines of the present Rockhampton Showgrounds.
December 2001
Funding Advice State Government make decision to fund $8m contribution only.
February 2002
Final Report Final Draft Report considered for approval.
In addition to close liaison with Rockhampton City Council and Queensland Government (Project Services) personnel, the Project Control Group and the International Exhibition Complex (Rockhampton) Reference Group, wide ranging “one-on-one” consultation has been conducted with various individuals and organisation representatives whom are identified in the Appendix to this Report “ACKNOWLEDGMENTS & BIBLIOGRAPHY”.
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666... RRREEESSSEEEAAARRRCCCHHH FFFIIINNNDDDIIINNNGGGSSS AAANNNDDD IIIMMMPPPLLLIIICCCAAATTTIIIOOONNNSSSA summary of the key points as they relate to the development of a business plan for the Rockhampton Showgrounds sector of the Rockhampton Exhibition Complex, including Victoria Park and the redevelopments at the Rockhampton State High School.
Note: Reference should also be made to information contained in the next section of this Report “OUTLOOK FOR THE TOURISM / MICE INDUSTRIES” which examines the outlook for, and the integral nature of the Project’s relationship to, the tourism industry.
MARKET ANALYSIS
Industry Description
For statistical purposes, the Project is involved in a number of industries, which may be broadly described as follows:
Activity
Industry Classification ANZSIC Code5
Exhibition Complex providing a range of facilities in support of a wide range of activities in the sport, entertainment and leisure industries
Sports Grounds and Facilities n.e.c. Division: P (Cultural and Recreational Services) Subdivision: 93 (Sport and Recreation) Group: 931 (Sport)
9312
Provision of supporting services related to various venue management / activities in the sport, entertainment and leisure industries
Other Recreation Services
Division: P (Cultural and Recreational Services) Subdivision: 93 (Sport and Recreation) Group: 933 (Sport)
9330
Provision of open space facilities in support of a wide range of activities in the sport, entertainment and leisure industries
Recreational Parks and Gardens
Division: P (Cultural and Recreational Services) Subdivision: 92 (Libraries, Museums and the Arts) Group: 923 (Parks and Gardens)
9239
Provision of facilities / infrastructure in support of performing arts and other related leisure activities and entertainment.
Performing Arts Venues
Division: P (Cultural and Recreational Services) Subdivision: 92 (Libraries, Museums and the Arts) Group: 925 (Services to the Arts)
9252
As a diverse facility, the International Exhibition Complex will also involve / potentially involve itself in a number of other key industries in the Property and Business Services (H), and Accommodation, Cafes and Restaurants (L) divisions. These may be further classified under:
ANZSIC Code
Classification Subdivision Group
5 As used by the Australian Commonwealth Statistician, Australian Bureau of Statistics (ABS). The Australian
and New Zealand Standard Industrial Classification (ANZSIC) is the standard classification used by the ABS for the presentation and analysis of industry statistics. It provides a framework for classifying businesses to industries according to the predominant activities undertaken by a business.
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5720 Pubs, Taverns and Bars 57 Accommodation, Cafes and Restaurants
572 Pubs, Taverns and Bars
5730 Cafes and Restaurants 57 Accommodation, Cafes and Restaurants
573 Cafes and Restaurants
7712 Commercial Property Operators and Developers
77 Property Services 771 Property Operators and Developers
For the purpose of statistical analysis, where possible we have assumed that the major or primary activity can be classified as “Sports Grounds and Facilities n.e.c.”6
The MICE Market
MICE refers to the fairly recent recognition of an industry world-wide concerning itself with the meetings, incentives, conventions and exhibitions (MICE) market. The industry has attracted increasing attention over recent years, partly because research shows that international MICE delegates spend more than other visitors on a per night basis. A recent report7 on the industry suggests that In view of the recorded and anticipated growth of the MICE market in Australia there is some concern within the industry about the adequacy of MICE infrastructure both now and in the future. According to the Report, official data sources such as the International Visitor Survey (IVS) and the Domestic Tourism Monitor (DTM) indicate that the industry is growing in terms of delegate numbers at MICE events. Research generated and disseminated by the MICE industry also indicates growth in the industry. Furthermore, Sydney's successful bid to host the 2000 Games has increased expectations of continued growth in the industry based on the experience of previous hosts, for example Atlanta, which enjoyed boom MICE activity in the years leading up to and immediately following the 1996 Games. Convention centres have been built in most of Australia's capital cities. The needs of the MICE industry, however, extend well beyond the availability of convention and exhibition venues which provide theatres and meeting rooms. Many meetings, conferences and exhibitions also require transport, catering, audio-visual equipment, and the services of a professional conference organiser to coordinate the event. Events which attract visitors from outside the host region also require the supply of appropriate accommodation and in some cases, interpreter services. Data collection for the industry is not currently undertaken by the Australian Bureau of Statistics. However, the aforementioned report has made some attempts at analysing the market, but there are difficulties associated with this due to the lack of both record keeping and standardised definitions within the industry. These limitations include:
• No consistent working definitions for occupancy rates of meeting rooms and exhibition halls which prevents proper assessment of venue use and adequacy to meet current and future demand
6 n.e.c. - not elsewhere classified 7 Bureau of Tourism Research, Measuring MICE (Meetings, Incentives, Conventions and Exhibitions) Industry
Infrastructure, Report to the Tourism Forecasting Council (Research Report No. 1), February 1998
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• Few organisations and businesses are able to provide summary statistics supporting their claimed levels of business (there is therefore some difficultly in supporting or refuting industry claims and opinions on the level of MICE activity and the adequacy of current resources to cater for demand. Conflicting claims and views are sometimes expressed within a single region).
• Reliable forecasts are hampered by an inability for organisations to separately identify MICE business from other business, or supply detailed data on the number of MICE events held, the number of attendees, or the origins of the attendees (that is local, intrastate, interstate or overseas).
• Where statistics exist they are often regarded as confidential and could only be used in aggregated data. Aggregates cannot be constructed because of inconsistencies in record keeping or definitions used by the industry.
Despite these considerable limitations, the report established a range of useful findings8. These include:
1. Venues
o business is currently being turned away due to capacity constraints in Melbourne and Sydney;
o availability of venues is not a constraint to the industry in other locations;
o the main design problems with existing venues relate to lack of breakout space.
2. Accommodation
o high occupancy rates are a concern in Sydney, Melbourne, Darwin and Perth
o additional supply is coming on line in Perth , Darwin and Melbourne and this should at least partially alleviate problems in these locations
o occupancy rates are also relatively high in Brisbane
o while recognising the apparent seasonality of the market, the industry could make greater efforts to spread business across the year by, for example, promoting the advantages of events held in off-peak times, such as cheaper room rates
3. Transport
o the main concerns identified by the industry related to insufficient or inconvenient domestic and international airline timetables. These problems are unlikely to be resolved as the MICE market accounts for only a minor share of total airline business
o regional transport is not identified as a problem for the industry.
8 While the widest definition of meetings includes all off-site gatherings including conventions, congresses,
conferences, seminars, workshops and symposiums which bring people together for the common purpose of sharing information, this definition was considered by the Report as being too broad in terms of the types and sizes of meetings and venues covered, to obtain useful results. The report focuses on MICE facilities, support infrastructure and services in Australia's capital cities (except Tasmania which was included as a whole), Alice Springs, Cairns and the Gold Coast. Specifically, the conference venues considered in the report have, as a minimum, theatre-style seating with capacities for upwards of 500 people.
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4. Other support services such as catering and equipment hire
o other services are not a constraint on the industry
o there are competitive markets for most services ensuring quality service at a fair price.
5. Hindrances to growth of the industry.
o the main hindrance to growth of the industry is the lack of data and research to encourage informed decision making, particularly for investment purposes
o locations without dedicated MICE facilities feel that business could be increased if larger or more suitable facilities were available.
The Report indicates that this last point above is difficult to assess. Locations lacking dedicated facilities currently have relatively small MICE markets, however, Sydney, Cairns and Brisbane have shown that supply of dedicated facilities can increase MICE business by allowing locations to bid for business that they could not have other wise catered for. The number and size of MICE events increased in these cities following the opening of dedicated facilities. What cannot be concluded, however, is whether the revenue generated from the additional visitors to these locations will exceed the costs of building the additional capacity or provide the region with a fair rate of return on its investment.
PROFILE OF ROCKHAMPTON REGION
Regional Overview
The Department of State Development consider that given the size of the central Queensland region in which Rockhampton is situated9, it is useful to break it down into three broad economic sub-regions10:
1. the Coast, containing Rockhampton City and Livingstone, Fitzroy and
Mount Morgan shires; 2. the Highlands, containing Bauhinia, Duaringa, Emerald, Jericho and Peak
Down shires and the Woorabinda Aboriginal Council; and 3. the Central West, containing Aramac, Barcaldine, Barcoo, Blackall,
Diamantina, Ilfracombe, Isisford, Longreach, Tambo and Winton shires.
The main urban centres in each region are Rockhampton, Emerald and Longreach. The Department’s analysis of Rockhampton region are: Area Strengths
• Economically diverse region combining a strong coal and mineral mining sector
• Diversified agricultural sector with increasing value-adding
9 The Rockhampton State Development Centre services a large and diverse region, stretching from the
coast to the western border of the State, and encompassing 19 local governments in an area of 413 244 km2 (23.9% of the state).
10 Source: Department of State Development web site http://www.sd.qld.gov.au/index.html
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• A location for significant military training by Australian and overseas armed forces
• A significant tourist destination
• The region is well serviced by kindergartens, primary and secondary schools
• There are a number of boarding schools at Rockhampton and Yeppoon
• Emerald and Longreach both have Agricultural colleges Major Projects are listed as being: 1. Magnesium Metal Plant (Australian Magnesium Corporation Pty Ltd) 2. Nickel Mine and Processing Plant (Marlborough Nickel Pty Ltd) 3. Oaky North Coal Mine (MIM Holdings Limited Group) 4. Valeria Coal Deposit (Pacific Coal Pty Ltd) 5. Togara North Coal Mine (Dongbu Australia Pty Ltd) 6. Papua New Guinea (PNG) - Queensland gas pipeline project (Chevron
Asiatic Ltd/BHP Petroleum (PNG) The location of these (and other) Projects in the region are appended to this Report (“MAJOR PROJECTS – FITZROY / ROCKHAMPTON REGION “).
This overview map of the region, courtesy Projects Queensland 2001, Department
of State Development, 2001; further detail is appended to this Report
Rockhampton — An Urban Centre By Definition
The Australian Bureau of Statistics defines urban and rural areas in the following way:
• Major urban. All urban centres with a population count of 100,000 and over. • Other urban. All urban centres with a population count of 1,000 to 99,999. • Bounded locality. All population clusters of 200 to 999 people. • Rural balance. The rural remainder of the State/Territory.
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The estimated resident population at 30 June 1999 was 59,568, a decrease of 79 in the period June 1998 to June 1999. 11 This places Rockhampton in the “Other Urban” category. By way of overall context, Australians live mainly in urban areas. In August 1996, 63% of Australians lived in major urban areas (areas with more than 100,000 residents). A further 23% lived in other urban areas – like Rockhampton (towns with between 1,000 and 99,999 residents). The remaining 14% of Australians lived in rural areas (other small localities and settlements, or on the land). Apart from the Australian Capital Territory, where the city of Canberra accounted for 99% of the Territory population, the highest levels of urbanisation occurred in New South Wales and Victoria (both 88%). Conversely, Tasmania and the Northern Territory had the highest proportions of people living in rural areas (both 27%). 12
DISTRIBUTION OF THE POPULATION ................................................................ ................................................................ ..................... NSW Vic. Qld SA WA Tas. NT ACT Aust. Section of State
(a)
% % % % % % % % % Major urban 67.1 68.3 49.8 68.5 63.5 27.4 0.0 99.3 62.7 Other urban 21.3 19.3 30.8 17.6 22.9 45.2 72.6 0.0 23.3 Bounded locality 2.2 1.8 3.1 2.9 2.7 5.9 9.0 0.1 2.5 Rural balance 9.4 10.6 16.2 11.0 10.7 21.3 18.1 0.6 11.5 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 '000 '000 '000 '000 '000 '000 '000 '000 '000 Australia (b) 6,204.7 4,560.2 3,338.7 1,474.3 1,765.3 474.4 181.8 308.3 18,310.7 ................................................................ (a) Distribution based on census counts. (b) Estimated Resident Population (ERP) as at 30 June 1996.
Rockhampton is the largest city in Central Queensland and is located some 640km north of Brisbane by road. The city is the principal administrative centre for the region and is referred to as the Gateway to Central Queensland. The city is also just 100km northwest of Gladstone, site of one of the largest deepwater ports on Australia’s eastern seaboard.13
According to Rockhampton City Council14, the base economic characteristics include:
1. Rate base - The estimated Rockhampton City Council income from rates in 1999/2000 (2000/2001 budget) was $45.4 million. Revenue from fees and charges, estimated for 1999/2000 is $7.5m. Revenue from grants and subsidies is $5.1 million – a decrease from the previous year’s $6.2 million. The operating costs (estimated 99/00) were $59.3 million, and capital expenditure (estimated 99/00) $41 million. (RCC, 2000b, 38A).
11 Source: Office of the Government Statistician, Regional Profile – Fitzroy Statistical Division, June 2000. 12 Source for this data: Australian Bureau of Statistics, 1996 Census of Population and Housing - Australia in
Profile: A Regional Analysis, ABS Catalogue No. 2032.0 (ISBN 0 642 25669 1), Commonwealth of Australia 1998
13 Source: Department of State Development web site http://www.sd.qld.gov.au/index.html 14 Source: Colwell J, Rockhampton City – Social Profile Draft Supplement 2000, Rockhampton City Council,
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2. Employment and labour force participation - There has been a significant drop in the estimated unemployment figure for Rockhampton in the quarter to June 2000 (unemployment rate 9.8%), when compared to the same quarter last year (11.8%). (DEWRSB, 2000, p22). This is compared to a Queensland rate of 8.2%.
Population & Growth in Rockhampton / the Fitzroy Region
In the five years to 1996, Australia's population grew by an average of 1.2% annually. There were large variations in population growth rates between different areas, which reflect differences in births and deaths, and the movement of people into and out of regions.
Between 1991 and 1996, the three fastest growing major population centres (those with more than 80,000 residents) were the Sunshine Coast, Gold Coast-Tweed and Cairns, all with average annual population growth rates about three to four times the national level (table 1.5). The next fastest average annual rate of population growth occurred in the cities of Brisbane (2.3%), Perth (1.7%), Townsville (1.4%), Darwin (1.4%) and Canberra-Queanbeyan (1.4%). However, average annual population growth was lower than the national average in Sydney (1.1%), Melbourne (0.8%), Greater Hobart (0.5%) and Adelaide (0.4%). These cities all experienced internal migration losses between 1991 and 1996 (ABS 1998a). By way of comparison, the estimated resident population of the Fitzroy statistical region as at 1 July 1996 (latest available data) was 178,035. The estimated resident population of Rockhampton is 59,475 which experienced a decline of –0.3% change from the previous year. The Average Annual Population Growth Rate for Rockhampton over the last decade is approximately +0,5%, which compares to Fitzroy (+1.3%), and for the whole of Queensland +2.7%. Most regions outside capital cities experienced population growth between 1991 and 1996. Growth was particularly apparent along the coast in popular holiday areas (for example the Sunshine Coast (SSD), the Far North (SD) including Cairns, Gold Coast City, Part B (SSD), and Port Stephens (A) near Newcastle). Other coastal areas with strong average annual growth included Richmond-Tweed (SD) (2.2%) and the Mid-North Coast (SD) (1.7%) in northern New South Wales.15
15 Source: Australian Bureau of Statistics, 1996 Census of Population and Housing - Australia in Profile: A
Regional Analysis, ABS Catalogue No. 2032.0 (ISBN 0 642 25669 1), Commonwealth of Australia 1998
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POPULATION GROWTH, Major Population Centres—1991–1996 1996 population(a) Growth rate(b) Major population centres no. % Sydney 3,881,136 1.1 Melbourne 3,283,278 0.8 Brisbane 1,519,994 2.3 Perth 1,295,092 1.7 Adelaide 1,079,112 0.4 Newcastle 463,388 0.8 Gold Coast-Tweed 354,110 4.9 Canberra-Queanbeyan 345,061 1.5 Wollongong 255,744 0.9 Greater Hobart 195,718 0.5 Sunshine Coast 156,407 5.5 Geelong 152,245 0.0 Townsville 122,415 1.4 Cairns 106,694 4.3 Launceston 98,829 0.6 Albury-Wodonga 9,2658 1.1 Toowoomba 86,569 0.5 Darwin 82,232 1.4 Rockhampton 59,475 -.3 Australia 18,310,714 1.2 (a) Estimated Resident Population (ERP) as at 30 June. (b) 1991–1996 average annual growth rate.
The estimated population of the central Queensland region (which incorporates Fitzroy statistical division and other areas) in 1999 was 137,400, of whom 71% were based in the Coastal sub-region, 20.5% in the Highlands and the remaining 8.5% in the Central West. The region has a moderate proportion (5-10%) of temporary residents, with higher numbers concentrated in the areas dependent on itinerant and fly-in, fly-out workforces. An additional 62,711 people resided in the Gladstone region to the south of Rockhampton16.
16 Source: Department of State Development web site http://www.sd.qld.gov.au/index.html
Social Indicators (Index of Relative Disadvantage)18
The primary indicator used by the Australian Bureau of Statistics to measure socio-economic levels as it may apply to any given locality is the index of relative disadvantage. It has been constructed so that relatively advantaged areas, for example areas with many high income earners, have high index values19. The index has been designed to have an average across all areas in Australia of 1,000 and a standard deviation of 100 index points20. Localities with the greatest relative disadvantage have high proportions of low income families, unemployed people, people without educational qualifications, households renting public housing and people in low skilled occupations. Conversely, the least disadvantaged areas have higher proportions of high income earners, professional workers and more highly qualified people, as well as low unemployment rates.
The following table summarised the “Index of Relative Disadvantage” for Rockhampton (which is 967), with comparisons to the rest of Fitzroy statistical subdivision, Queensland, and Australia:
17 Source: 1996 Census Report Queensland 18 Source data has been extracted in part from Australian Bureau of Statistics, 1996 Census of Population
and Housing - Australia in Profile: A Regional Analysis, ABS Catalogue No. 2032.0 (ISBN 0 642 25669 1), Commonwealth of Australia 1998
19 The ABS has developed Socio-Economic Indexes for Areas (SEIFA) from the 1996 Population Census data using a statistical technique called Principal Components Analysis. This technique can summarise a large number of socio-economic variables into a single measure, or index, which can then be used to rank areas (from highest to lowest and vice versa) on a broad socio-economic scale.
20 Index scores themselves are not in direct proportion to the relative socio-economic conditions of the various geographic areas. That is, a region with a score of 1,200 is not necessarily twice as disadvantaged as a region with a score of 600. Therefore, the index is useful only for ordering geographical areas and not for analyses which purport to somehow quantify socio-economic conditions.
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TOTAL AUSTRALIA 1,000 QUEENSLAND 988 Brisbane 1,010 Fitzroy 972 Rockhampton 967
This measurement indicates that Rockhampton is a relatively socially disadvantaged region. Compared to Brisbane, Queensland, or Australia as a whole, Rockhampton has a higher unemployment rate, lower proportion of persons with tertiary education, and lower household incomes.
As an alternative to simple Income measurement21 - often used as the basis to identify areas with relatively high and low living standards - the Index incorporates a set of much broader measures of socio-economic disadvantage which can also be used to compare living standards across regions. The 'index of relative disadvantage' is used to highlight differences between regions. While there are many other aspects of living standards (such as ownership of assets, or having a safe place to live), an examination of levels of income is useful as it reflects on the ability of individuals and households to buy goods and services.
The Index has been developed, in part, utilising information contained in the following tables which provide a useful comparison for Rockhampton, and other urban / non-urban centres throughout Queensland. The information may be summarised on the following graph, which is further detailed in the subsequent tables:
0%
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4%
6%
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10%
12%
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200
400
600
800
1000
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1,000 988 1,010972 967
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TOTAL AUSTRALIAQUEENSLAND
Brisbane (SD)Fitzroy (SD)
Rockhampton (SSD)
People with degree or higher qualifications % (b) Unemployment rate %
Household income per capita $000 Index of relative disadvantage (shown numerically)
SOCIAL INDICATORS By Statistical Local Area - Queensland
(b) As a proportion of all people aged 15 years and over.
21 Various factors affect income levels for individuals and households, including labour force status and
occupation of individuals and, at the household level, the number of earners in the household.
Banana (S) 13881 26.7 8.1 2.0 3.2 47.0 6.9 20.4 Bauhinia (S) 2242 27.1 8.3 0.7 1.6 53.5 3.7 22.2
Calliope (S) - Pt B 2805 24.0 8.2 4.2 2.4 45.3 4.8 18.2 Duaringa (S) 9232 30.9 2.2 2.1 14.9 54.3 9.4 14.3 Emerald (S) 12564 28.0 4.4 3.2 2.0 52.6 6.5 19.8
Fitzroy (S) - Pt B 5159 26.9 7.2 1.3 1.4 45.6 6.8 15.2 Jericho (S) 1040 25.0 9.4 0.7 3.0 47.8 3.6 24.9
Livingstone (S) 23156 24.1 10.4 3.3 2.1 40.2 10.1 20.2 Mount Morgan (S) 2964 20.6 19.9 3.1 10.6 30.4 11.4 32.9
Peak Downs (S) 3127 30.3 2.8 2.1 1.9 59.7 4.7 13.1 (a) As at 30 June 1996. (b) As a proportion of all people. (c) As a proportion of all families. (d) As a proportion of all households, excluding non-classifiable and visitor only households.
Banana (S) 78.4 5.2 68.3 6.4 310 965 88.6 63.7 Bauhinia (S) 50.0 4.6 74.0 3.0 257 992 84.4 62.9
Calliope (S) - Pt B 81.6 3.8 63.0 9.8 238 937 94.3 73.7 Duaringa (S) 69.4 5.5 71.3 7.6 393 946 91.0 24.0 Emerald (S) 60.0 7.2 75.3 4.9 398 1003 71.3 51.8
Fitzroy (S) - Pt B 76.8 4.6 66.1 7.9 239 975 94.9 83.7 Jericho (S) 40.0 3.2 68.9 4.4 238 931 90.2 64.4
Livingstone (S) 85.7 7.1 59.3 11.4 256 979 81.4 71.8 Mount Morgan (S) 66.7 1.8 37.6 22.0 185 821 93.9 77.1
Peak Downs (S) 82.2 5.6 75.5 3.1 408 1012 87.1 36.1 (a) As a proportion of all 16 year olds. (b) As a proportion of all people aged 15 years and over. (c) As a proportion of all households in occupied private dwellings.
KEY STRATEGIC ISSUES
Summary of Key Strategic Issues
Key Strategic Issues for the Project have been identified as follows:
• The need to encourage the establishment of permanent tenants
• The need to meet strong competition
• The need to research local sporting requirements
• The need to establish flexible, multi-purpose facilities
• The need to provide a suitable conference venue
• The need to provide for a multi-code sporting oval
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• The need to take into account timing of local events
• The need to better provide for pedestrian flow
• The need to ensure adequate funding and support
• The need to ensure major events do not overshadow local events
• The need for Council land to earn revenue from major events
• The need for professional management
Discussion — Key Strategic Issues
The need to encourage the establishment of permanent tenants
� Provides regular cash flow � Facilities to be used “year round” where possible � Being major event driven is not sustainable � You need “bread and butter” tenants � Major events are “the cream” � But major events can be very profitable � Multi-year events (like Beef Expo) are rare / difficult to attract away from
their domicile, but are the most worthwhile The best events are the ones you can create and own yourself developed and held locally
Stunning examples may be found in: • Indianapolis • Aust. Institute of Sports • major sporting grounds (“home teams”) e.g. Broncos at the ANZ Stadium
The need to research local sporting requirements
� Could create more regular income and meet as yet unknown needs � Need here to “think outside the box” � University has spent around $5m on their Sporting Facilities Complex:
Important not to duplicate / conflict
The need to establish flexible, multi-purpose facilities
� The need to establish flexible, multi-purpose facilities � Trend is for high-tech venues capable of running different events under the
one roof, e.g. Melbourne Formula 1 pits are otherwise basketball courts! � Or attracting businesses prepared to close down “once a year” � Undercover areas must be capable of changing shape to accommodate
different sized populations � UNDERGROUND INFRASTRUCTURE IS VERY IMPORTANT, e.g. power � Special and pressing requirement: covered flat floor area � Multi-purpose facility is a must for venues catering for over 1,000; (preferably
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� Rockhampton is unable to bid at present � Tourism Qld will not approve Rockhampton as an accredited venue
because of sub-standard facilities � Current infrastructure incapable of meeting health standards
The need to provide for a multi-code sporting oval
� All major codes want to go regional � Facilities must be up to standard � Surplus water available from treatment plant
The need to take into account timing of local events
� The need to take into account timing of local events, for example, World
Brahman Congress (being hosted by Australian Brahman Breeders’ Association)
� Imperative that timing of development take account of existing planned major events, e.g. World Brahman Congress, Gemboree, and Rockhampton Annual RAS Show
The need to better provide for pedestrian flow
� The concept diagrams incorrectly site the main entrance � Some buildings may have to be re-sited, e.g. take-up “Option 2” for the
cattle pavilion � Concept designs have been modified to accommodate (draft scale
drawings facilitate), however this alternate concept has not been accepted.
� Existing (original master plan) concept designs will, accordingly, need to be modified
The need to ensure adequate funding and support
� The need to ensure adequate funding and support � The ROCKHAMPTON EXHIBITION COMPLEX… Not the ROCKHAMPTON
SHOWGROUNDS! � Assistance for major events is available … but it cannot be depended upon � Queensland Events could be offer assistance There is no upper funding limit,
however, it is expected that most proposals will be funded in the vicinity of $20,000 - $25,000 (exclusive of GST).
� Project to be known as the International Exhibition Complex (Rockhampton). Subsequently, has been changed to the Central Queensland Events Centre (pending formal approval by Council)
� Emphasis to be given to developments at various locations including the Showgrounds, Victoria Park, Tennis Centre / Brothers Leagues Club precincts, Gracemere Sale Yards, Rockhampton State High School, etc.
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COMPETITIVE ADVANTAGE The Importance of Competitive Advantage Consideration of the business of the proposed Exhibition complex is important. With visitor numbers to Australia expected to double over the next 10 years, potential for attracting “business” is considerable. It is therefore imperative for the Project’s proponents to establish just how will the Rockhampton based facility be different? What are the “Competitive Advantages”, and how can they be used to ensure the Complex receives its share of the anticipated business / visitor influx. Organisations typically use their competitive advantage to attract new business, e.g. “Clean Food Australia” which demonstrated how the remoteness of Australia is a distinct competitive advantage when attracting the food markets of Asia and Taiwan. Logos, images and copy of this highly successful campaign were all designed around the competitive advantages of “clean and green” The Business of the Proposed International Exhibition Complex
1. Regional Leadership • Need to be seen as “the one who is doing it” • Developing managerial capacity (training)
2. Multifunction event complex • Branding is important • Provides the catalyst for a “short break” location
3. “EVENTS”: Rockhampton – “the event driven city” • National exhibition centre hosting quality local, regional, national,
international events o Supports local, regional, national development
• Supporting business development $$$ • Supporting community development (social capital
The Uniqueness of Rockhampton: Competitive Advantages
1. Geographic Location (state and national) • “all roads lead to Rockhampton • Gateway to islands and beyond
2. Well branded “beef capital” image
3. A heritage of cultural success in the arts
4. Hosting of rodeos on a regular basis
The Uniqueness of Rockhampton: Other Advantages
• Climate – especially winter • Diverse range of natural attractions • National parks, gem fields, coal mines, farm stays, heritage • Diversity of Lifestyle – “the real Australia” • Centre for large regional projects, e.g.
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• Power Centre, magnesium project, mining, etc. • Friendly town • Diverse range of industry sectors and services • Includes Hospital, university, defence forces • Administrative hub for central Queensland • Proximity to major services • Transportation Infrastructure • International standard airport • Isolation / proximity to Brisbane • Transportation Infrastructure, especially regular plane service
THE BEEF EXPO EVENT AT ROCKHAMPTON
The Beef Expo Event
Beef Expo is currently held every three years at Rockhampton, first staged by the Australian Beef Cattle Exposition Association Inc. in 1988 as part of the Australian bicentennial celebrations. The event is one of national and, to a limited extent, international significance, and is arguably the major activity on the Fitzroy region tourism calendar. Beef Australia 2003 is the next planned Beef Expo. In the past, the event has attracted strong government support. Recent government announcements indicate approval for $2.2m to assist with hosting Beef Australia 2003, in addition to an approval of $3.5m for the upgrading of the Gracemere cattle complex where the event is staged (in conjunction with the Rockhampton Showgrounds and related / nearby facilities). This was, at least in part, a response to recognition that the facilities that have been utilised previously by event organisers no longer meet the needs of the event (in terms of functionality or image). A number of the major facilities previously used by the Beef Expo also require upgrading for reasons other than that directly relating to Beef Expo, e.g. new sports facilities, convention centres and other facilities for community use22. Accordingly, and as explained in the Introduction to this Report, the Beef Expo is a primary driving force behind the development of the Central Queensland Events Centre, however it is the broader community needs that have also been taken into account when developing the scope for this (International Exhibition Complex) Project. Provided hereunder is a summary of the key findings related to the last (Beef 2000) event, detailing economic impact, patronage profile, and other matters. Subjective data was obtained during the conduct of Beef 2000, including a limited survey undertaken with Rockhampton and Central Queensland residents. Of particular note is the objective economic impact data which indicates estimated total visitor spending in Queensland of $22.13m, supplemented by the Event Organiser's spending of $1.26m to give total, estimated spending in Queensland of $23.39m. The Report indicates that this spending yielded an estimated economic impact of $6.69m in Central Queensland (up 27% on 1997)
22 Some of these proposed projects have been reviewed and summarised in a report prepared in October
2000 for Rockhampton Enterprise Limited by Stratcorp Consulting Pty Ltd.
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and a further $0.27m in other parts of Queensland, or $6.96m in the State (down 12% on 1997). This is equivalent to 185 jobs in Central Queensland and a further 7 jobs in other parts of Queensland, or 192 jobs in the State.
Beef Expo 2000 — Summary of the Event
Information in this section has been extracted from primary source: Australian Beef Cattle Exposition Assoc. Inc., Beef Expo 2000 (9-16 April), Event Summary, June 2000.
The 2000 Beef Expo was held between the 9th and 16th of April 2000. This triennial event attracted 27,677 adults, up 23% on the 1997 event. However, the event organiser reports that 44,000 spectators and 764 exhibitors attended the Rockhampton Showgrounds and Gracemere Saleyards during the week of the Beef Expo. This data is the total number of people; adults and children, residents and visitors who attended only the Expo sites (e.g. Rockhampton Showgrounds and Gracemere). 23 In addition to these the Event Organiser reports that 35,000 people were involved in community activities. Event patronage was associated with estimated visitor spending of $22.13m in Queensland. When combined with the Event Organiser's spending of $1.26m, total spending in Queensland associated with Beef 2000 is estimated to have been $23.39m. This produced an estimated economic impact of $6.69m (185 jobs) in Central Queensland and a further $0.27m (7 jobs) 'in other parts of Queensland to give a state-wide impact of $6.96m (192 jobs). This impact is equivalent to a windfall to households in the Central Queensland region of $3.15m in additional employment wages, profits and other distributions. This impact is the 'direct spending' effect, which is regarded as a particularly conservative estimate of the economic impact. The industrial support flow-on activity associated with the direct spending impact is expected to be approximately $3.58m in value added and the consumption flow-on activity is expected to be approximately $3.Olm. This data represents a possible range for the economic impact. The most conservative estimate is the direct spending impact of $6.69m in value added. The least conservative estimate is $13.28m in value added, which includes the direct spending impact and full flow-on effects. A compromise impact is $10.27m, representing the direct spending impact and industrial support effects. Most Beef attendees were resident in Queensland, over 40 years old, male and had completed high school. Within this generalisation there were differences according to the residence of the visitor. In particular overseas resident visitors, who constituted nearly 4% of the crowd were, on average, in their mid-thirties and University educated. Most patrons (73%) were involved in the production side of the industry, although 25% overseas visitors reported being involved in research and development roles. Almost three quarters of patrons used their private vehicle to travel to the event. Generally patrons travelled with their partner except overseas visitors, who were most likely to travel with business associates. The average size of a travel party to
23 It should be noted that this data has been supplied by the Event Organiser and has not been audited or
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Beef 2000 was 1.74 persons, which was smaller than the average size of a travel party to Beef 1997. Visitors to Beef 2000 generated an estimated 212,647 visitor nights in Central Queensland and a further 4,539 nights in other parts of the State, or a total of 217,186 visitor nights in Queensland. This was down 15% on the 1997 event mainly due to a substantial decrease in the amount of time visitors spent in non-Central Queensland parts of the State. Taking these issues in combination - that is, visitors travelled in smaller groups, were more event specific, stayed for less time and were accompanied by less people - it would appear that Beef 2000 visitors were more focussed on the event than in 1997. Visitors to Central Queensland relied heavily upon commercial accommodation. However, a relatively high proportion of interstate visitors stayed with family and friends in the region. In terms of consumption patterns, as would be expected, overseas visitors spent more each day they were in the Central Queensland region than any other visitor, and local Rockhampton residents spent least of all event attendees. In terms of general lifestyle, attendees reported exhibiting conservative consumption habits across a wide range of goods, generally less extreme than the national average. Over 80% of Beef patrons reported reading industry-based publications. Most people attended Beef 2000 to increase their knowledge or for industry-based reasons, being attracted mainly by the cattle exhibits and industry-based activities. Beef 2000 attendance peaked in the period between Monday 10th April and Thursday 13th April. An analysis of previous attendance revealed that Queensland residents were more likely to repeat their attendance with each successive event. This was less the case with interstate visitors. Sponsorship recall was limited to 53% of respondents. 75% of respondents rated the event as above average. Those who expressed discontent identified concerns with the Organisation of the event and with seminars. Beef Expo 2000 - Economic Impact (Detail)24 The table below shows that Beef 2000 generated an estimated economic impact of
• $6.69m in Central Queensland, which is 185 local jobs.
• $0.27m in other parts of Queensland (7 jobs). Therefore the state-wide impact is estimated at $6.96m (192 jobs).
24 Information in this section has been extracted from primary source: Australian Beef Cattle Exposition
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These impacts are equivalent to a windfall to households in the Central Queensland region of $3.15m in additional employment wages, profits and other distributions.
The economic impact of the 2000 event relative to the 1997 was:
• 7% higher in Central Queensland - $6.69m in 2000 and $5.27m in 1997.
• Significantly lower in other parts of Queensland - $0.27m in 2000 and $2.60m in 1997.
• 12% lower from the State perspective - $6.96m in 2000 and $7.87m in 1997.
Therefore, relative to the 1997 event the overall Queensland state impact was lower in 2000 mitigated in part by a higher Central Queensland impact. This outcome is due to a number of offsetting influences, but driven by three key factors: • While there were 23% more visitors at the 2000 event in gross terms, they
were accompanied by less people, yielding a decrease of 11% in net visitor numbers compared to the 1997 event (see table 7 on page 7).
• There was lower spending in other parts of Queensland by visitors to Beef 2000 relative to the 1997 event (see table 4 on page 4).
• Overseas and interstate visitors spent considerably fewer visitor nights in other parts of Queensland in 2000 (see table 9 on page 143).
Spending and multipliers drive an economic impact result. Spending was attributable to two stakeholders - patrons and the Event Organiser.
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1. With regards visitor spending by Beef patrons25 in Queensland, it is estimated to have been $22.50m or $22.13m if one excludes the spending by Rockhampton residents. Therefore Rockhampton residents spent an estimated $0.37m on the event.
2. With regards spending by the Event Organiser, the following were the relevant expenditures for the economic impact calculation, in each region:
o $1.05m in Central Queensland. o $0.21m in other parts of Queensland. o $1.26m in the state of Queensland.
Total spending is estimated to have been $22.61m in Central Queensland and a further $0.78m in other parts of Queensland. Therefore total spending in Queensland attributable to the 2000 event is estimated to have been $23.39m. The 1997 event was the cause of an estimated $25.43m spending in Queensland. As indicated earlier, lower visitor nights and therefore lower spending in other parts of Queensland by visitors to Beef 2000 is the main reason that total spending was lower at the 2000 event relative to the 1997 event. Beef Expo 2000 - Other Detail26 The majority of patrons for Beef 2000 were resident in Queensland, accounting for 83% of all visitors (refer chart). Most of these were from the Central Queensland region (“CQ) - 54% - that included Rockhampton. 29% of all patrons were from southeast Queensland ("SEQ") or tropical north Queensland ("TNQ"). Interstate visitors made up an estimated 13% of the crowd, predominantly from NSW but also from SA, NT and WA. Overseas visitors comprised 4% of all patrons, many of whom were from the U.S.A but also New Zealand and Canada. Relative to the 1997 event, approximately the same proportion of patrons came from Queensland - 85% in 1997 and 83% in 2000 (chart 3). However, as a proportion of the crowd it would appear there were more Rockhampton residents at the event in 1997 than in 2000. Correspondingly, there were more visitors27 from other parts of Queensland ("Other Queensland") at the 2000 event relative to the 1997 event.
• 25% of overseas visitors reported being involved in industry related research and development roles, and 50% in production.
25 To avoid ambiguity in the Beef Expo report, the term 'patron' refers to both spectators and exhibitors,
including those who live in Rockhampton. The term 'visitor' also refers to both spectators and exhibitors, but excludes local residents
26 Information in this section has been extracted from primary source: Australian Beef Cattle Exposition Assoc. Inc., Beef Expo 2000 (9-16 April), Event Summary, June 2000.
27 As noted earlier, the term 'visitor' here refers to both spectators and exhibitors
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• 56% of interstate visitors were part of the production side of the industry, and 13% were involved in marketing and a further 13% in research and development.
• As a result of Beef 2000, all visitors spent more time in the region than is usual for business or conference visitors to the Fitzroy region (Tourism Queensland data).
• Overseas and interstate resident spectators stayed less time in the region during Beef 2000 than during Beef 1997.
• With the exception of Central Queensland residents, intrastate spectators spent considerably more time at the 2000 event than at the 1997 event.
• Compared to the 1997 event, all intrastate-based exhibitors spent less time at the 2000 event, but those from interstate spent more time at the 2000 event.
• 217,186 nights in Queensland were attributable to Beef 2000, of which 212,647 (98%) were in Central Queensland. This is 15% lower than the number of nights spent in Queensland due to the 1997 event - the 1997 event generated an estimated 256,658 visitor nights.
• In respect of visitors from out-of the State, in general, commercial accommodation and in particular motels were heavily utilised. 67% of overseas visitors reported using hotels and all used some form of commercial accommodation in Rockhampton.
• Visitors from interstate relied heavily on family and friends for their accommodation needs. This was especially the case with visitors from SA, WA and NT. 18% o N W residents reported renting a house or unit in either Rockhampton or Yeppoon for their accommodation.
• Most people attended Beef 2000 to increase their knowledge or for industry-based reasons, being attracted mainly by the cattle exhibits and industry-based activities.
• An analysis of previous attendance revealed that Queensland residents were more likely to repeat their attendance with each successive event. This was less the case with interstate visitors. Beef 2000 attendance peaked in the period between Monday 10th April and Thursday 13th April
MAJOR EVENT SUCCESS STORIES
In this section a few select examples of successful major events that are held in regional areas both in Australia and overseas are provided. The details shown outline how each event has capitalised on its competitive advantage. This information provides a useful background as to how a regionally based Exhibition Complex might develop its own strategies, based on the experience of others. Aside from it’s regional location, the common element amongst the examples is that, like Rockhampton, there is a strong rural-based presence, with primary activities (e.g. rodeo, country music, farm machinery, and motor car racing) likely to have similar appeal.
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The success of Calgary Stampede can be attributed to a number of factors, however the event itself is much more than just activities related to cattle and horses. Although American (Canadian) based, we can learn from some of these experiences. It is featured by:
• A very wide range of Major Events & Activities
• The involvement of 50 different committees
• As far back as 1932 the Calgary Exhibition joined with the Stampede to become the Calgary Exhibition and Stampede.
• Major expenditure was effected in 1997 upon completion of the US$8.2 million permanent infield structure complete with 23 deluxe box suites and increased rodeo prize money.
• The event depends upon significant local community and support. For example, Stampede Patrons are 70% Local, 30% Tourist (the population of Calgary is 800,000)
• Community Events supported by the event is more than 550 annually
• The Stampede’s charter calls for western destination experiences, providing “exceptional entertainment, facilities and programs” year round.
The Stampede exists to “promote western/agricultural heritage and values”. One could imagine a similar nation-building brief for the regionally based complex at Rockhampton, i.e. promoting the “real Australian bush” heritage and values, and is well situated to do this at the “Australian outback’s gateway”.
Furthermore, the Rockhampton-based project could be developed along similar lines as the Stampede which is designed to “enhance, encourage and reward the spirit of creative, innovative people - creating positive, quality experiences for every age group and developing youth to fulfil the vision”. The Project’s proponents need to agree on a vision for the future and ensure development proceeds in accordance with this vision. Calgary Stampede - Major Events & Activities
o Coke Stage o Nashville North o Features o Nokia PowerXone o Rodeo o Chuckwagon Races o Grandstand Show o Stampede Stock Show
o Just For Kids o Rides o Where to eat o Casino o Lottery o Park Map o Western Showcase
Calgary Stampede enjoys the involvement of 50 different committees on Park:
AdvisoryAgriculture EducationAgriculture MediaBand ManagementA Band of OutridersBeef CattleBlacksmith's CompetitionCaravanCorporate FundraisingCorporate RelationsCourtesy CarCutting
HaySheepStampede BandStampede ChuckwagonStampede CountryStampede RodeoSteer ClassicSwineVolunteer Information & AssistanceWestern ShowcaseYouth Speech & DebateYouth Talent ShowdownThe Calgary Stampede Foundation
Tamworth Country Music Festival (Australia) An Australian example of a highly successful, regionally based event is the Tamworth Country Music Festival, held annually over several weeks in January each year. This event enjoys strong sponsorship from a number of companies not directly involved in the music industry. The Festival was first launched 29 years ago by a small group of Tamworthians, and is now enjoyed by around 40,000 visitors every year. The event features:
• 2,500 varied events representing many genres of Country Music
• Patrons enjoy the star of their choice or
• …. do it all for nothing by attending a different free show nearly every hour of the day.
• Concerts are held throughout the City in the Town Hall, major clubs and hotels
Australian National Field Days (Australia)
Held in October each year at the central tablelands NSW township of Orange, the Australian National Field Days is a leading edge Australian Agricultural Exhibition. Last year it celebrated its 50th Anniversary making it Australia's oldest annual agricultural exhibition The concept essentially involves showcasing the latest ideas, products and services for agricultural industries. Orange is approximately 3 hours motor vehicle drive west of Sydney (the site itself at Borenore is 15kms west of Orange). Public transport includes a regional airline operator from Sydney (and many other parts of NSW), or by rail the daily Countrylink XPT between Sydney and Orange. Bus services also operate from Sydney and other regional centres. With the assistance of the Orange Branch of the Graziers Association, the event was first held in 1952 at the instigation of local Orange farmers and a farm machinery agent. The original concept still continues, i.e. the development of
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comparative demonstrations so that farmers can judge for themselves the performance of various machinery. The event now attracts exhibitors Australia wide, and visitors from throughout the world. Its success factors would appear to include: • Quality agricultural event • Extensive media coverage • Exposure to thousands of primary producers • Modern site and facilities • Separate and extensive “Themed Demonstration areas”
The layout of the event is along the lines of separating “Theme areas” catering for varied needs of farmers. which are typically: • Tractor & Machinery • Irrigation & Horticulture • Farm Maintenance • Automotive • Cattle & Cattle Handling • Sheep & Wool • General Interest • General Agriculture • Camping & Outdoor
Indianapolis 500 (United States)
The Indianapolis 500 is organised by the 500 Festival, a not-for-profit volunteer organization, first created in 1957 to organize civic events celebrating the speedway race. Over the past 45 years it has grown to become one of the largest festivals in the United States (in 2001 there were 400,000 visitors participating in festival activities throughout the month of May).
The main racetrack contains around 250,000 permanent seats, making the Indianapolis Motor Speedway the world's largest seating facility. Track dimensions and banking are basically the same as when constructed in 1909. The 2½ miles (13,200 feet) track contains an Infield Acreage of 224 acres, whilst the Speedway Acreage is an additional 559 acres.
Whilst the main event is fundamentally concerned with speedway racing, there are a large number of other entertainment venues and activities well outside the scope of racing, such as athletics competitions, students being honoured for artistic or academic achievements, and various family activities with an emphasis on children.
An Indy racing car will be featured on Indiana’s commemorative quarter scheduled for distribution in August 2002. There is also strong anecdotal evidence that the event is underpinned by the headquartering of major US sporting clubs as permanent tenants. Key success factors here would appear to be:
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• Appeal to a select but large market (i.e. those interested in speedway racing), however…
• Variety of activities available, especially those not associated with motor sports
• Appeal to all ages
• Historical influences, long history
• Factors related to venue, especially seating capacity
• The level of community, non-paid / volunteer support
• The cash flow or spending impact provided by permanently based US Sporting Clubs.
Conclusions
The above are just as few examples of successful major events that are held in regional areas - well outside local capital cities, both in Australia and overseas. The reasons behind each event’s success are obviously many and varied, however there do seem to be a few threads that are common amongst them all. This indicates that they may represent success factors. These include:
1. Each event has become well branded. Although there are many events held in each of the communities every year, they tend to spin-off the success of, or are in some way connected with, one single main event for which the locality is known. Each of the regions are relatively unknown except for the single main event being held.
2. Each event has appeal to one particular primary interest group (e.g. music, rodeo, car racing, farming), however the event hosts a range of activities having much wider appeal.
3. The event enjoys very strong community support with limited, or no discernable, opposition. This includes a large contingent of volunteer personnel, many of whom are involved in organising committees throughout the year.
4. Even though each event enjoys wide demographic support, including overseas, strong community support is also demonstrated by the proportion of attendees derived from the local or regional population (and in most cases accounts for the major proportion of gate-takings).
5. Each event is held annually.
6. By and large, infrastructure has been undertaken in response to demand – not the other way around.
7. In every case, the event has become an “entertainment spectacular” with a very wide range of activities for all ages. Many of these activities are well outside the scope of the apparent main event which tends to act as a “hook” or drawcard. For example, Calgary Stampede supports more than 550 Community Events annually28
8. Each event is conducted within close proximity to a major regional centre.
28 As an example, the “vision” for Calgary Stampede is “As the Greatest Outdoor Show on Earth, we strive
to offer the best western destination experiences by providing exceptional entertainment, facilities and programs year round”
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9. The event has a well established web site presence.
10. Each event enjoys extensive media coverage.
11. Each event offers a wide range of value activities from “free” to “exclusive / expensive”.
12. Each event has a relatively long history (over 40 years)
13. Each event is specific and targeted, bringing together crowds that are interested in saving time and money by seeing “everything in the one place, at the one time”.
If Rockhampton is to sustain itself as a successful event-hosting region, the above information may provide some measure of assistance as to how it too may be successful in the longer term. The Beef Expo is clearly a strong starting point.
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777... OOOUUUTTTLLLOOOOOOKKK FFFOOORRR TTTHHHEEE TTTOOOUUURRRIIISSSMMM /// MMMIIICCCEEEIIINNNDDDUUUSSSTTTRRRIIIEEESSSThe Project is integrally related to the tourism industry, and specifically related to the MICE industry (Meetings, Incentives, Conventions and Exhibitions market). By examining the outlook for these industries, this section puts into context and expands upon the previous section “RESEARCH FINDINGS AND IMPLICATIONS” which has a more localised focus towards development the Rockhampton Showgrounds sector.
PROJECT’S RELATIONSHIP TO TOURISM
Tourism has an economic impact which ranges over many sectors of the economy. It is most directly felt by sectors such as transport and tour operators, accommodation establishments, theme parks and attractions, entertainment and arts venues, museums and historical sites, restaurants, travel agents and souvenir retailers. However, other sectors also benefit both directly and indirectly from tourism demand. While tourism has been an economic factor in Australia for a very long time, in recent times it has grown to the extent that it is now recognised as a major contributor to total economic activity. In particular, international tourism has experienced substantial growth in the past decade or so. This has focused the need for improved standards of facilities and service, and has contributed to a recognition that tourism covers a sophisticated set of economic activities with great potential for future domestic and export earnings.
Because of Australia's island status and distance from most of its international source markets, tourism in this country will continue to be dominated by domestic tourism for the foreseeable future. Despite high annual growth rates, international tourism still only accounts for around a quarter of total tourism activity. While international tourism is forecast to continue to enjoy significantly higher growth rates than domestic tourism, it will be well into the new century before it matches the level of activity of domestic tourism. Accordingly, the proposed development of the International Exhibition Complex is clearly related the prospects for the tourist industry. Moreover, prospects relate not only to the domestic scene, but the international scene as well. Therefore, in undertaking this analysis, the Consultant has presumed a macro analysis of the industry as a relevant focus for determining prospects for the project generally than might otherwise be the case. Moreover, the proposed development is one of all – local, state-wide, national, and even international interest.
THE ECONOMIC CONTEXT OF TOURISM29
Tourism encompasses most short-term travel away from the normal place of work and residence, including travel undertaken for business and pleasure.
29 Extract from Australian Bureau of Statistics, Year Book Australia, 2001
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It is defined by the World Tourism Organization (WTO) as: "the activities of persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes". This identifies 'tourism' as being more than just leisure travel. It also encompasses travel for business, health, education, religious and other reasons. Tourism comprises both domestic and international travel. In an economic context, its effects are to generate economic activity and to transfer such activity between different parts of the economy. As it involves the consumption or purchase by tourists - or 'visitors' in the WTO terminology - of any good or service, its economic impact ranges over many sectors of the economy. Tourism also draws on services provided by the Commonwealth Government, the State and Territory Governments and local government organisations without direct charge to tourists. These include the construction and maintenance of roads, airports, harbours, railways and national parks, tourism promotion, immigration and customs services, information services and the provision of a large number of recreational facilities. While tourism has been an economic factor in Australia for a very long time, in recent times it has grown to the extent that it is now recognised as a major contributor to total economic activity. In particular, international tourism has experienced substantial growth in the past decade or so, and the holding of the Summer Olympics in Sydney in September 2000 is expected to have long term positive effects on inbound international visitors well into the next decade. This has focused the need for improved standards of facilities and service, and has contributed to a recognition that tourism covers a sophisticated set of economic activities with great potential for future domestic and export earnings.
THE NEED TO ADOPT A LONG TERM VIEW Since development of the International Exhibition Complex at Rockhampton is closely related the tourist industry, it is appropriate to examine prospects for the industry in the short and longer terms. However, since the development proposed is relatively large scale and long term, a longer term, macro view of the industry and its prospects is considered the most meaningful approach. Accordingly, it is submitted that short term developments in the industry have only limited impact on the development as proposed, possibly relating more to marketing period and scope, rather than long term viability. Further, market conditions for the tourism industry have recently been in a state of considerable change. It should be stated that some of these conditions are considered to have had a relatively severe, but only short tem impact. The two most significant impacts include:
1. The September 11 bombings in the United States and its impact on international travel to tourist destinations
2. The demise of the Ansett airline group In the first case, it is likely that with stricter security measures, and assuming the problem can be generally contained without further incident, in time the market will respond positively and travel by international tourists will return to their
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previous levels or thereabouts. Given the resources being poured into this situation by, notably the United States, there is every reason to have confidence in the outcome suggested. In the second case, the slack is already being taken up by alternate airlines, and a takeover of the operator is a distinct possibility even in the short term. The net result is likely to be no long term change, from the point of view of numbers of persons travelling to tourist destinations in Australia carried by domestic airlines. There is some anecdotal evidence suggesting that the international scenario has meant that Australian tourism operators have had to rely more heavily on domestic markets. However, as demonstrated in the data provided hereafter, this is not to be over-emphasised as the Australian tourism industry has always had a strong reliance on their domestic market, despite growth in international travel to Australia in recent years. Accordingly, and despite these events, the evidence available suggests a more buoyant longer term scenario.
INTERNATIONAL & DOMESTIC TOURISM, AND THEIR RELATIVE IMPORTANCE
The Relative Importance of the Domestic Market Despite an Increasing International Market Because of Australia's island status and distance from most of its international source markets, tourism in this country will continue to be dominated by domestic tourism for the foreseeable future. Despite high annual growth rates, international tourism still only accounts for around a quarter of total tourism activity. While international tourism is forecast to continue to enjoy significantly higher growth rates than domestic tourism, it will be well into the new century before it matches the level of activity of domestic tourism. The Tourism Satellite Account shows that, for 1997-98, tourism's contribution to gross domestic product (GDP) was 4.5%30. Domestic tourism accounted for 79% of total tourism GDP, with households contributing more than four-fifths of this proportion. International tourism contributed 21% to total tourism GDP. Expenditure by international visitors on Australian-produced goods and services (tourism-related exports) accounted for 11% of all exports during 1997-98. Potential Markets (International)
In 1998 Japan had been Australia's most important source of international visitors. However, a decline of Japanese visitors in 1999 saw New Zealand become Australia's most important source, accounting for 16.3% of total inbound visitors. This was closely followed by Japan which accounted for 15.9% of inbound visitors, the United Kingdom (13%), United States of America (9%), and other European countries (8%).
30 The Australian Tourism Satellite Account produced by the ABS represents the first attempt at placing
tourism in a national accounting framework, using international standards.
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The largest category of international visitors during 1999 was those arriving for 'holiday' purposes, who accounted for 56% of all visitor arrivals. Another 19% arrived for the purpose of 'visiting friends/relatives' and 12% arrived for 'business' purposes or to attend a 'convention/conference'.
New Zealand was the main source of visitors for 'business' (25%), and 'convention/conference' (19%). United Kingdom provided the most visitors (24%) for 'visiting friends and relatives' and for 'employment' (26%). Japan provided 24% of 'holiday' visitors, and 'Other Asia' was the main source (16%) of visitors arriving for 'education'.
INBOUND VISITORS, By Country/Region of Residence and Main Purpose of Trip - 1999
Country / region of residence
Convention/
conference
'000
Business
'000
Visiting friends/relatives
'000
Holiday
'000
Employment
'000
Education
'000
Other and not stated
'000
Total visitors
'000
Change on 1998
%New Zealand 20.7 109.3 197.6 333.0 11.0 5.1 52.1 728.8 2.7 Other Oceania 4.1 11.0 27.0 61.3 1.2 6.9 26.3 137.8 8.0 Germany 2.5 10.1 19.2 100.5 1.0 3.5 7.8 144.5 13.4 United Kingdom 7.6 36.4 207.0 270.7 11.6 3.4 32.2 568.9 14.1 Other Europe 13.0 33.4 75.9 187.0 3.6 12.2 33.7 358.9 10.3 Indonesia 2.1 8.9 16.2 38.2 0.9 14.4 10.3 91.0 -2.2 Malaysia 3.6 8.9 26.2 81.5 0.8 11.0 7.8 139.8 24.7 Singapore 5.4 29.0 29.0 178.6 0.9 13.5 10.6 267.0 8.1 Hong Kong (SAR of China) 2.4 14.6 25.5 74.9 0.5 8.7 7.6 134.0 -6.5 Japan 3.8 27.3 20.5 604.9 2.9 11.3 36.9 707.5 -5.8 Korea 2.8 8.9 15.3 61.7 0.5 8.4 11.1 108.6 63.0 Taiwan 1.7 5.4 7.9 109.1 0.4 7.7 15.3 147.5 -1.6 Other Asia 11.8 42.2 51.2 103.8 2.9 23.7 34.8 270.2 19.4 United States of America 16.8 72.5 82.7 191.6 4.0 15.4 34.2 417.1 11.5 Other America 4.5 9.8 28.8 51.7 1.4 5.1 9.3 110.6 10.9 Middle East and North Africa 1.9 4.2 13.3 26.3 0.4 1.1 5.2 52.4 24.5 Other Africa 2.6 9.1 20.9 27.7 0.9 1.4 8.3 70.8 -0.1 Not stated - - 0.3 0.2 - - 3.5 4.0 62.2 Total 107.1 441.0 864.4 2,502.7 44.6 152.7 347.0 4,459.5 7.0Source: Overseas Arrivals and Departures, Australia (3401.0).
In summary, and as the graph below shows, most visitors travelling to Australia was for the purpose of holidays (56.1%). Only 2.4% were attending specifically for the purpose of attending a convention or conference:
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(2.4%) Convention/conference
(9.9%) Business
(19.4%) Visiting friends/relatives
(56.1%) Holiday(1.0%) Employment
(3.4%) Education
(7.8%) Other and not stated
INBOUND VISITORS, By Main Purpose of Trip - 1999 Australia
Australian Bureau of Statistics, 2001 Queensland Year Book: Number 58, ABS Catalogue No. 1301.3, Commonwealth
The long travelling distances needed for most international visitors to arrive in Australia contribute to a relatively long stay in this country. In 1999, 41% of visitors stayed for more than two weeks, while 21% stayed for more than a month (table above). A factor contributing to the relatively long stays is that 67% of travellers 'visiting friends or relatives' stayed for more than two weeks. Visitors arriving for 'education' purposes also tended to be long stayers (73% for greater than two weeks and 45% for six months), but their absolute numbers were relatively small in comparison those with other reasons for travel.
(16.3%) New Zealand
(3.1%) Other Oceania (3.2%) Germany (12.8%) United Kingdom
(8.0%) Other Europe
(2.0%) Indonesia
(3.1%) Malaysia
(6.0%) Singapore
(3.0%) Hong Kong (SAR of China)
(15.9%) Japan
(2.4%) Korea (3.3%) Taiwan (6.1%) Other Asia
(9.4%) United States of America
(2.5%) Other America
(1.2%) Middle East and North Africa (1.6%) Other Africa (0.1%) Not stated
INBOUND VISITORS, By Country/Region of Residence- 1999 Australia
Australian Bureau of Statistics, 2001 Queensland Year Book: Number 58, ABS Catalogue No. 1301.3, Commonwealth
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For inbound visitors travelling to Australia specifically to attend a convention or conference, the situation is somewhat similar compared to the origin of all inbound visitors (graph above), with the following significant exceptions:
1. A greater proportion of visitors from the United States were specifically attending a conference or convention, as against other purposes. This also applied, albeit to a lesser extent, in the case of visitors from New Zealand.
2. A much less proportion of visitors from Japan were specifically attending a conference or convention. This applied, although to a lesser extent, to visitors from the United Kingdom, and other Asian locations.
This information is demonstrated in the graph below which examines the origin of visitors specifically attending a convention or conference:
(19.3%) New Zealand
(3.8%) Other Oceania (2.3%) Germany (7.1%) United Kingdom
(12.1%) Other Europe
(2.0%) Indonesia
(3.4%) Malaysia
(5.0%) Singapore
(2.2%) Hong Kong (SAR of China)
(3.5%) Japan
(2.6%) Korea (1.6%) Taiwan
(11.0%) Other Asia (15.7%) United States of America
(4.2%) Other America
(1.8%) Middle East and North Africa
(2.4%) Other Africa (0.0%) Not stated
INBOUND VISITORS, By Country/Region of Residence- 1999 Australia
Convention/conferenceAustralian Bureau of Statistics, 2001 Queensland Year Book: Number 58, ABS Catalogue No. 1301.3, Commonwealth
The Growth of International Tourism in Australia Source: Australian Bureau of Statistics, Year Book Australia 2001 The 4.2 million international visitors in 1997-98 had an average consumption per head of $3,031 on Australian-supplied goods and services. The 75 million domestic overnight visitors during 1997-98 had an average consumption per head of $465, while the 155 million domestic day trips accounted for an average consumption of $69 per head. Growth in tourism flows to Australia in the mid to late 1980s was at almost twice the international growth rate in tourism flows to all countries. However, Australia's share of world tourism is still small, accounting for only around 0.5% of total international visitor arrivals in all countries. Because Australia is a long-haul destination for most international visitors, this share is never likely to be large. However, starting from a low base, there is still considerable potential for growth. The number of international visitors to Australia increased at an average of 25% per year from 1984 to 1988. However, 1989 saw a 7.5% fall in arrivals to 2.1 million,
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following the strong contributions of Expo 88 and the Bicentennial to the growth in the previous year, but also reflecting the adverse impact of the disruption to domestic airline services caused by the airline pilots' dispute in late 1989. Arrivals recovered by 6.5% to 2.2 million in 1990 and then increased to a new record level of 2.4 million in 1991, and grew by double digit rates in most years to reach 4.4 million by 1997. The number of arrivals in 1998 was 4.2 million, representing a 3.5% drop in arrivals over 1997. There were almost 4.5 million arrivals in 1999, a 7.0% increase over 1998. The domestic travel market was relatively stagnant in the late 1980s, and experienced an overall small downward trend in visitor nights during the early 1990s. Because of changes in survey methods, it is not possible to compare the figures from 1998 on with earlier figures. Visitor nights in 1999 were virtually unchanged from 1998.
International Market Barometer (December 2001) Source: http://www.qttc.com.au/research/trends/issue18/barometer.htm United Kingdom The GST in Australia is starting to become a concern for UK travel agents. Queensland operators appear to be more aware of implications that will stem from the new Australian taxation system. New Zealand There was a very large range of packaged holidays available during July. Lead in package prices from New Zealand to the Gold Coast flying Freedom Air started at NZ $599.00 return for 6 nights. The Americas The US economy continues to show steady growth and personal disposable income is also on the rise. Confidence remains high and personal consumption is still at record levels. Qantas recently announced the introduction of direct flights from Los Angeles to Brisbane via Auckland. Japan The number of Japanese overseas travellers during January to July 1999 was around 9,155,000, up 3.0 percent from the same period of the previous year. According to the Japanese National Tourist Organisation (JNTO) this number has grown for five consecutive months since March 1999. Taiwan Whilst Taiwanese outbound travel performance in the first half of 1999 was promising, the devastating earthquake in late September can be expected to have adverse effects on both economic performance and outbound travel throughout the coming months. Korea Korean outbound travel has reflected a turnaround in economic performance. Arrivals to Australia for the six months from January to June 1999, compared with the same period in 1998, rose by nearly 87 percent.
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Growth in Visitor Arrivals
12 Months to June 1999 compared with previous year
Country Australia (%) Queensland main state of stay (%)
Brisbane Airport (%)
Cairns Airport (%)
Sydney Airport (%)
New Zealand 3.1 3.1 6.9 -0.2 -0.5
United Kingdom 8.4 10.3 18.4 2.4 4.4
France 17.8 50.3 59.3 19.1 2.5
Germany -1.1 -4.3 -2.6 -10.1 -3.1
Italy 4.7 6.9 18.3 12.3 2.6
Netherlands 11.1 20.6 15.6 42.3 3.9
Switzerland 6.4 17.4 21.9 23.1 -2.8
Japan -9.2 -9.7 -12.3 -3.2 -11.1
China 13.4 5.4 -10.9 27.4 29.1
Hong Kong -3.9 -3.7 -8.0 -29.9 8.2
India 11.4 14.3 14.0 11.5 4.1
Indonesia -16.4 -26.4 -12.9 59.0 -30.1
Korea -33.6 -53.5 -53.0 -88.2 -21.7
Malaysia 2.6 7.6 10.8 82.5 -2.7
Philippines 2.5 0.9 -9.9 60.3 9.3
Singapore -5.0 -19.9 -26.5 39.9 0.6
Taiwan -4.8 9.5 29.3 -43.8 -20.6
Thailand 32.9 89.2 64.7 130.9 41.8
Other Asia 14.0 18.5 5.6 13.9 14.6
Total Asia (excluding Japan) -4.7 -10.5 -11.5 -16.4 -3.9
Total Middle East & North Africa 28.4 70.0 51.6 117.6 16.4
Canada 10.0 13.5 38.6 4.1 6.4
USA 10.3 18.3 24.8 28.4 10.0
South Africa 36.2 28.8 43.0 90.0 29.5
Total All Countries 1.4 -1.6 -2.2 1.5 0.7
Source: Australian Bureau of Statistics, Overseas Arrivals and Departures (OAD)
Note: Queensland growth percentages are indicative only. OAD tends to understate visitation to Queensland as it is a measure of main state of stay in Australia.
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Source: Australian Bureau of Statistics, Year Book Australia 2001 In 1999, Australian residents, 15 years of age and over, spent a total of 294.2 million nights visiting other parts of the country (table below). Each trip took an average of four nights, and each person in the population made an average of five trips during the year. Residents of the Australian Capital Territory were the most frequent travellers (average of eight trips), while residents of the Northern Territory tended to stay away for the longest period (average of seven nights). All of these features of domestic tourism are virtually unchanged from those in 1998.
SUMMARY OF PERSON TRIPS AND NIGHTS AWAY(a), By State/Territory of Origin- 1999
State/Territory of origin
Estimated population
as at 30 June 1999
'000(b)
Persontrips
'000
Averagetrips
per person
Total nightsaway
'000
Averagenights away
per person trip
New South Wales 5,095 25,525 5.0 98,664 3.9 Victoria 3,764 17,421 4.6 68,260 3.9 Queensland 2,763 14,144 5.1 57,084 4.0 South Australia 1,199 5,222 4.4 22,373 4.3 Western Australia 1,463 6,268 4.3 28,504 4.5 Tasmania 370 1,768 4.8 7,769 4.4 Northern Territory 142 657 4.6 4,618 7.0 Australian Capital Territory 245 1,962 8.0 6,927 3.5 Australia 15,042 72,969 4.9 294,198 4.0
(a) For persons aged 15 years and over. (b) Population aged 15 years and over. Source: National Visitor Survey, Bureau of Tourism Research
As the next table (below) shows, 'pleasure/holiday' was the main purpose of visit, accounting for the biggest proportion of visitor nights (49%), followed by 'visiting friends/relatives' (30%). 'Business' visits accounted for 15% of all visitor nights, while 'other' reasons accounted for 5%. New South Wales was the most popular destination, accounting for almost a third of all visitor nights (32%). Queensland was the next most popular destination, attracting just over a quarter of all visitor nights (27%), while Victoria accounted for nearly a fifth of all visitor nights (18%).
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VISITOR NIGHTS(a), By State/Territory of Destination and Main Purpose of Visit - 1999
State/Territory of destination
All business
'000
Pleasure / holiday
'000
Visiting friends / relatives
'000
Other
'000
Total (b)
'000
New South Wales 13,322 43,821 31,168 4,004 93,871 Victoria 6,801 26,664 16,736 1,823 52,540 Queensland 11,250 40,333 20,401 4,678 78,055 South Australia 2,643 8,890 6,182 1,150 19,263 Western Australia 5,342 14,644 7,084 1,185 29,205 Tasmania 1,366 4,554 2,138 (d)319 8,522 Northern Territory 1,532 3,172 909 (d)258 6,430 Australian Capital Territory 1,948 1,593 2,232 (d)169 5,962 Australia(c) 44,209 143,932 86,849 13,598 294,198
(a) By Australian residents, 15 years of age and over. (b) Includes visitor nights where purpose of visit was not asked. (c) Includes other and not stated. (d) Subject to sampling variability too high for practical purposes. Source: National Visitor Survey, Bureau of Tourism Research.
In 1999 the most frequently used accommodation by domestic travellers was the property of friends or relatives (40% of visitor nights), followed by hotels, resorts and motels (23%) and caravan parks or commercial camping grounds (11%). A similar pattern occurred in New South Wales, Victoria, South Australia, Western Australia and the Northern Territory. However in Queensland, Tasmania and the Australian Capital Territory, self catering cottages/apartments were more popular than caravan parks, accounting for 13%, 8% and 9% of visitor nights respectively (table below).
VISITOR NIGHTS(a), Type of Accommodation Used by State/Territory - 1999
Accommodation type
NSW
'000
Vic.
'000
Qld
'000
SA
'000
WA
'000
Tas.
'000
NT
'000
ACT
'000
Aust.(b)
'000
Hotel, resort, motel, motor inn 21,637 10,918 19,838 4,029 6,023 2,466 1,975 2,102 68,994 Guest house/B&B 1,862 968 553 *349 466 *282 *27 *3 4,511 Self-catering cottage/apartment 6,985 3,655 10,257 1,191 2,513 673 *174 554 26,003 Caravan park or commercial camping ground 10,919 6,380 7,196 2,294 3,177 642 944 *196 32,002 Friends' or relatives' property 40,141 22,564 29,316 7,995 11,507 2,991 1,427 2,641 118,582 Own property (e.g. holiday house) 4,534 3,703 2,199 1,430 1,102 573 *46 *69 13,671 Caravan or camping by side of the road, or on private (non-commercial) property 2,938 2,143 2,925 795 1,744 398 736 *33 11,712 Other/not stated(c) 3,299 1,696 4,378 780 1,720 350 542 464 13,111 Total(d) 93,871 52,540 78,055 19,263 29,205 8,522 6,340 5,962 294,198
(a) Australian residents aged 15 years and over. (b) Includes other and not stated. (c) Other accommodation includes backpacker/hostel, university/school dormitory/college, hospital/hospital related accommodation for relatives, and privately owned boat/yacht etc. (d) Includes visitor nights where accommodation type was not asked. Source: National Visitor Survey, Bureau of Tourism Research.
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Intrastate visits accounted for the majority of total domestic tourism visitor nights (58%). They are a particularly important component of domestic tourism for Western Australia, New South Wales and Victoria, where 70%, 65% and 62% respectively of domestic visitor nights in the State were accounted for by residents of the State in 1999 (table below). In terms of numbers of visitor nights, net beneficiaries from domestic tourism (i.e. where inbound interstate visitor nights are greater than outbound interstate visitor nights) are Queensland, Western Australia, Tasmania and the Northern Territory. While Queensland is the biggest relative net beneficiary, with 2.2 times as many inbound nights as outbound nights, Victoria is the biggest relative net contributor, with 1.8 times as many outbound nights as inbound nights.
VISITOR NIGHTS(a), By State/Territory of Residence and States/Territories Visited - 1999
(a) For Australian residents aged 15 years and over. (b) Includes other and not stated. Source: National Visitor Survey, Bureau of Tourism Research
Tourist Accommodation Source: Australian Bureau of Statistics, Year Book Australia 2001 At December 1999 there were 190,079 rooms available in Australia in hotels, motels, guest houses and serviced apartments having 15 or more rooms or units (table 22.16). This was an increase of 4% over the number available at December 1998. The number of serviced apartments having 15 or more rooms or units increased by 9% (to 600) over the same period. During 1999 the supply of accommodation in hotels, motels, guest houses and serviced apartments (with 15 or more rooms or units) exceeded demand (the number of room nights occupied), with room occupancy rates of 63% for hotels, 54% for motels, and 60% for serviced apartments.
(a) Comprising establishments with 15 or more rooms or units. (b) For definitions see the source below. Source: Tourist Accommodation, Australia, December quarter 1999 (8635.0).
The most recent data relating to the origin of guests staying in hotels, motels and guest houses relate to 1994-95. In that year, overseas visitors accounted for 23% of room nights occupied in these establishments, compared with 37% for interstate visitors and 40% for intrastate visitors (table below). Queensland and the Northern Territory had the highest proportions of overseas room nights to total room nights, each having 29%. Next highest were New South
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Wales with 25% and Western Australia with 20%, followed by Victoria (17%), the Australian Capital Territory (13%), South Australia (12%) and Tasmania (8%). The strong popularity of New South Wales and Queensland is reflected in the fact that 70% of overseas room nights in hotels, motels and guest houses were spent in these States. The Australian Capital Territory, Tasmania and the Northern Territory were the most dependent on interstate visitors. On the other hand, in New South Wales and Queensland, interstate visitors accounted for only a third of total room nights in hotels, motels and guest houses.
ORIGIN OF GUESTS STAYING IN HOTELS, MOTELS AND GUEST HOUSES WITH FACILITIES - 1994-95
Origin of guests (room nights occupied)
State/Territory
Intrastate
'000
Interstate
'000
Overseas
'000
Total
'000
New South Wales 5,076 3,949 2,963 11,988 Victoria 2,511 2,158 986 5,655 Queensland 3,616 3,054 2,715 9,385 South Australia 845 902 233 1,980 Western Australia 1,425 1,128 643 3,196 Tasmania 326 638 89 1,053 Northern Territory 241 576 332 1,149 Australian Capital Territory 36 706 110 852 Total 14,076 13,111 8,071 35,258
Source: Experimental Estimates of the Origin of Guests, Hotels, Motels and Guest Houses, Australia, 1994-95 (9501.0).
Queensland — An Overview Source: Australian Bureau of Statistics, Regional Statistics, Queensland 2000, ABS Catalogue 1362.3 Queensland is a vast and diverse State. It is the second largest State in Australia based on area. The east coast is characterised by sandy beaches and the Great Barrier Reef Across the northern peninsula and east of the Great Dividing Range are large expanses of rainforest and eucalypt forests. This contrasts with west of the Great Dividing Range which is noted for minerals, livestock and grain crops. Queenslanders enjoy an outdoor lifestyle in what is known as the Sunshine State. Queensland has one of the highest annual daily averages of sunshine for Australia. During October, 5% of Queensland has more than 10 hours a day of sunshine while the remainder of the State record at least 8 hours a day. Weather conditions vary from the subtropical south to the tropical north and from the drier inland to the relatively wet coastal plains. Average annual rainfall in Queensland varies from 150mm a year in the desert of the extreme south-western comer of the State to 4,000mm a year in parts of the north-eastern coast, where
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sugar cane abounds. The north-eastern coast also has the highest rainfall of any area in Australia. In the 12 months to 30 June 2000, the south-east corner of Queensland had Australia's largest increases in population. Brisbane City, the most populous LGA in Australia, increased by 14,686 persons (1.7%) while Gold Coast City increased by 13,252 people (3.4%). The Brisbane Statistical Division accounted for 45.6% of the total Queensland population at 30 June 2000. This was lower than the Australian average proportion of people who resided in capital city statistical divisions (63.9%). The level of population growth of many regions in Queensland is determined mainly by net internal migration. Declining rural and increasing urban populations are a continuing trend across Queensland. However, in the 12 months ending June 1999, notable growth occurred in a number of regional centres providing goods and services to surrounding regions including Townsville (C), Toowoomba (C) and Emerald (S). One of the significant departures from this trend was Rockhampton / Fitzroy where the population remain virtually static. Coastal areas are popular with older retired people and younger people wanting a change in lifestyle or who are attracted by service-based employment opportunities associated with tourism. Most coastal areas in Queensland experienced population increases. In 1999-2000, eight of the ten fastest growing local government areas in Queensland were coastal. Tourism is an important part of the Queensland economy with takings from accommodation of $1,091m in 1999-2000. Takings were highest in the Moreton Statistical Division (which includes the Gold Coast) and the Far North Statistical Division (which includes Cairns and the Atherton Tableland). The Brisbane and Moreton Statistical Divisions combined accounted for 53% of Queensland's total takings from accommodation. This contrasted with the western statistical divisions of North West, Central West and South West, which together accounted for only 1.6%. Room occupancy rates were highest in the Northern Statistical Division (62.5%) and lowest in the North West Statistical Division (51.2%). The industries of accommodation, cafes and restaurants represented 3.9% of Queensland's business locations in September 1998 and provided 6.6% of the State's total employment. Of the 4.4 million overseas visitors to Australia in 1999, 29.4% specified Queensland as their 'main State of intended stay' (an increase from 21.3% in 1989). The most popular tourism regions for international visitors within Queensland were the Gold Coast, Tropical North Queensland and Brisbane. The Gold Coast Tourism Region was the third most popular national destination. The Sunshine Coast, Whitsunday Islands, Hervey Bay/Maryborough, Northern and Fitzroy Tourism Regions were ranked in the top 20 tourism regions visited by international visitors to Australia in 1999. International Visitors to Queensland
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Source: http://www.qttc.com.au/research/trends/issue18/update.htm An Update of International Visitors to Queensland Since 1990, international visitation to Queensland has grown an average of 8.4 percent per annum. In 1998, Queensland received 1,818,179 international visitors which represented 47.1 percent of total international visitors to Australia. During the same period, international visitors generated almost 23.5 million visitor nights to Queensland. This represented 23.5 percent of total international visitor nights to Australia. Queensland led New South Wales and Victoria for the number of international holiday visitors received in 1998. It was equal to New South Wales for international holiday nights. In terms of visitors, Queensland’s two most important international markets are Japan and New Zealand. In 1998, Queensland received 245,300 New Zealand visitors (up 0.4 percent on 1997) and 516,600 Japanese visitors (down 11.6 percent on 1997). Short term overseas arrivals to Queensland from emerging markets such as China, India and Africa increased 5.4 percent, 14.3 percent and 30.4 percent respectively for the year ended June 1999, compared with the year ended June 1998 (Australian Bureau of Statistics). The table below shows the proportion of visitors to Queensland regions from overseas countries. It shows, for example, that travellers from Asia (excluding Japan) are more likely to visit the Gold Coast and Brisbane than other regions of Queensland.
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International Visitors to Queensland in 1998
Regions
All Countries
(Number)
New Zealand
(%)
Japan
(%)
Asia Exc. Japan
(%)
North America
(%)
United Kingdom
(%)
Germany
(%)
All Other Countries
(%)
Gold Coast 792,138 14% 38% 27% 5% 6% 2% 9%
Brisbane 660,539 17% 9% 26% 10% 15% 4% 19%
Sunshine Coast 187,273 26% 11% 9% 8% 19% 6% 21%
Fraser Coast 172,640 10% 3% 6% 9% 25% 15% 33%
Darling Downs 29,310 22% 2% 17% 15% 16% 7% 21%
Bundaberg 35,863 9% 6% 5% 16% 20% 17% 27%
Capricorn 116,215 15% 2% 4% 13% 21% 15% 30%
Mackay 44,298 11% 2% 2% 8% 16% 19% 40%
Whitsunday Isl. 182,335 8% 14% 2% 11% 23% 12% 30%
Northern 136,127 13% 4% 5% 11% 18% 14% 35%
Tropical North 762,321 6% 28% 8% 16% 15% 6% 20%
Outback 35,617 5% 4% 4% 17% 14% 17% 39%
Net Queensland 1,818,179 13% 28% 19% 10% 11% 4% 15%
Source: International Visitors Survey, 1998 (BTR) Accommodation Trends in Queensland Source: http://www.qttc.com.au/research/trends/issue18/abs.htm According to the Australian Bureau of Statistics’ Survey of Tourist Accommodation, Queensland’s stock of hotel, motel/guest house, and serviced apartment guest rooms totalled 50,887 at 30 June 1999, a 4.8 percent increase (2,340 rooms) on the number available as at 30 June 1998 (48,547). The increase in supply of guest rooms was outpaced by a 6 percent increase in the number of room nights sold (645,200) for the year ended June 1999 compared with the year ended June 1998. Despite an increase in demand and a 2 percent decline in the average daily room rate, the average occupancy rate remained unchanged at 59 percent. The overall increase in Queensland’s total room supply was driven by a 28 percent increase in the number of serviced apartment guest rooms available
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(11,902 as at 30 June 1999). The number of hotel and motel/guest house rooms declined 0.8 percent and 0.5 percent respectively for the year ended June 1999 compared with the previous year. Similarly, demand was driven by a 21.9 percent increase in the number of serviced apartment room nights occupied, and to a lesser extent, a 5.5 percent increase in the number of hotel room nights occupied. Motel and guesthouse room nights sold for the year ended 30 June 1999, compared with the year ended 30 June 1998, remained unchanged.
Guest Rooms, Room Nights Sold & Occupancy by Sector - Total Queensland; June Quarter
June Quarter Supply Demand Room Occupancy
Guest Rooms Room Nights Sold (000s) Rate (%)
Licensed Hotels with Facilities
Motels & Guest Houses with Facilities
Serviced Apartments
Total
Source: Survey of Tourist Accommodation (ABS); Product Number 8635.3.40.001
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Tourist Accommodation in Queensland / Fitzroy Statistical Division & Rockhampton Includes extracts from primary Source: Australian Bureau of Statistics, Regional Statistics, Queensland 2000, ABS Catalogue 1362.3
The Statistical Division of Fitzroy For the purpose of presenting the principal series of official statistics for the State, Queensland is divided into a number of geographical areas. These areas consist, for the most part, of aggregations of local government areas. The primary division of the State is into 11 statistical divisions. These are intended to represent as far as possible 'regions' of the State which are characterised by discernible social and/or economic links between the inhabitants and economic units within them, under the unifying influence of one or more major cities or towns. The Fitzroy Statistical Division covers 123,354 square kilometres (7.1% of Queensland's total area), with an estimated resident population of 180,920 at 30 June 1999, representing 5.2% of the Queensland population. The Tropic of Capricorn runs through Rockhampton, approximately 800 km north of Brisbane. Rockhampton, with an estimated resident population of 59,475, is the main city in this division. Other significant centres of population are Gladstone, Blackwater, Emerald and Bfloela. Gladstone is Queensland’s largest multicargo trading port as well as being one of the world's largest coal ports. The alumina refinery at
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Gladstone is the world's largest with a capacity for 3.3m tonnes a year and the aluminium smelter at BoMe Island has an annual production capacity close to 490,000 tonnes of aluminium a year. Key industries of the Fitzroy Statistical Division include mining, manufacturing, tourism and agriculture. In 1998-99, the Fitzroy Statistical Division had the highest number of meat cattle in Queensland and recorded the largest production of oil seeds and sunflowers. As shown on the table below, Rockhampton (and the Fitzroy region generally) is a reasonably important part of the tourism industry in Queensland. Although the population of the Rockhampton is less than two percent of the total Queensland population, the region accounts for:
• Almost 4% of the total number of Queensland tourism establishments
• Almost 2.5% of the total number of rooms / units for tourist accommodation in Queensland
• Just over 1.5% of the total takings from tourist accommodation Queensland.
Source: Australian Bureau of Statistics, Regional Statistics, Queensland 2000, ABS Catalogue 1362.3
Tourism is proving to be a growing industry for the region, with Fitzroy ranked number 17 in Australia’s top 20 Most Visited list for 1999. On figures maintained by Capricorn Tourism for door count at the Information Centre, there are rising numbers of people seeking out things to do in the region.31
The Australian Bureau of Statistics sponsors a wide range of data concerned with the measurement of accommodation establishments as it relates to the tourism industry. This information is provided in the tables below. Some of the key points to be derived from this are:
31 Rose, 2000, as extracted from source: Colwell J, Rockhampton City – Social Profile Draft Supplement
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• There are some 86 accommodation establishments in the Fitzroy statistical division (Rockhampton accounts for around half of these). This provides a little under 10,000 bed spaces and employs some 1,600 persons. Since the whole of Queensland consists of 954 establishments and under 163,000 bed spaces (employing over 30,000 persons), the Rockhampton region is an important but relatively small part of the industry.
• Motels and guest houses account for the majority of available accommodation types, particularly in Fitzroy.
• Room occupancy rates for Fitzroy are currently around 57% which is about the same as the overall Queensland situation. However, room occupancy rates for motels and guest houses @ 61.6% at Fitzroy compares more than favourably to Queensland overall which is 56.6%. Occupancy rates have improved between 200 and 2001.
• Overall, bed occupancy rates for Fitzroy @ around 30% is much lower than the Queensland average of 35.9%. However, occupancy rates for motels and guest houses are similar at around 33%. The scenario between 200 to 2001 is improved, but the rate of improvement has been faster for Fitzroy.
• The average length of stay in Fitzroy is similar to Queensland overall, for motels and guest houses (1.7 – 2.0 days duration).
• Average takings per room night occupied at Fitzroy ($71.60) is lower than the Queensland position which is $79.40) for motels and guest houses. This represents an approximate 10% increase fo0r both areas over 2000/01 compared to the previous year.
• This increase in occupied room nights has also translated across to average takings per available room night where the two regions are quite similar.
Despite the above differences as highlighted, the Fitzroy situation is nonetheless largely representative of the overall Queensland position, with indications that the industry is going through an increasingly buoyant period. The rate of increase appears to be slightly higher in Fitzroy.
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Source: Office of Economic and Statistical Research (Queensland Treasury)32 Latest available information on the patterns of visitor expenditure in the Fitzroy region are contained in the analysis below, derived from a special undated report for the Queensland Treasury:
Total Visitor Expenditure
• The Fitzroy region received 4 per cent of total visitor expenditure in 199933 . This proportion peaked at 6 per cent in the early 1990s where the DTM survey recorded a very substantial increase in the number of intrastate visitors to the region for the two years, 1990 and 1991 (refer following
two tables). • Total visitor expenditure in the Fitzroy region grew from $174 million in 1985
to $425 million in 1999. In nominal terms, this was equivalent to a 7 per cent average annual compound growth rate over the entire 1985 to 1999 period. This compared with the State average of 10 per cent (also refer following tables).
• The strongest growth in this region was experienced in the five-year period
1985 to 1989, with an average annual growth of 12 per cent. By contrast, negative growth was experienced in the following five-year period, 1990 to 1994, where expenditure levels declined by an average 4 per cent per annum. The latest five-year period, 1995 to 1999, saw the return of positive growth, with an average annual increase of 5 per cent.
Expenditure by Source of Visitor
• In 1999, 60 per cent of all visitor expenditure in the region was attributed to intrastate visitors. Interstate visitors accounted for a further 30 per cent, with the remaining 10 per cent attributed to international visitors (refer tables below).
• Although this region has a high reliance on intrastate visitors, growth in their expenditure has been minimal throughout the 1990s. Intrastate visitor expenditure declined on average by 4 per cent over the period 1990 to 1994, recovering to grow at a modest I per cent per annum over the next five years. This slow growth in intrastate visitor expenditure was complemented by strong growth in both international (from a relatively low level) and interstate expenditures with growth rates of 13 per cent and 12 per cent respectively.
Expenditure by Purpose of Visit
32 Undated, special report Visitor Expenditure in Regional Queensland 1985 to 1999 33 Results for any region that received less than 10 per cent of total expenditure should be treated with
substanbal caution due to the size of the standard errors of the estimates.
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In 1999, tourists accounted for 63 per cent of all visitor expenditure in the region (Holiday 47 per cent and VFR 16 per cent). Business visitors and those visiting for other purposes accounted for the remaining 3 7 per cent (refer Tables below).
Fitzroy region expenditure levels by source of visitor: 1985 to 1999 Year International
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MICE MARKET OUTLOOK & CONSIDERATIONS RELATED TO VENUE & DESIGN OF FACILITIES34 Conference and Exhibition Venues in Queensland The MICE Industry Infrastructure Report comments that most conferences require both large halls for plenary sessions and smaller, breakout rooms for sub-group sessions. Most exhibitions require large areas of open space. Many conferences incorporate exhibitions and require space in a variety of combinations. The tables below provides a list of conference and exhibition venues with seating capacities in excess of 500 people for each of the cities and locations in Queensland. This list includes details of the number of rooms available for meetings in each venue and their specific capacities. The Queensland market is divided into five locations, Brisbane, the Gold Coast, the Whitsunday’s, Townsville and the Far North. Each of these locations has its own convention bureau. A summary of the main venues is shown below:
34 Much of the material from this sub-scetion has been extracted from primary source: Bureau of Tourism
Research, Measuring MICE (Meetings, Incentives, Conventions and Exhibitions) Industry Infrastructure, Report to the Tourism Forecasting Council (Research Report No. 1), February 1998
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It should be noted, however, that availability of these venues for MICE events is sometimes limited by factors such as turnaround times, competition from other markets, other uses for the venues, and facility design (for example the ability to host concurrent events). Turnaround time, that is the time needed to clean up after one event and set up for the next, limits the effective time conference and exhibition space is available for use. Each event, regardless of its duration, requires a certain amount of turnaround time (downtime). For this reason, events of a longer duration are generally preferred to short duration events (to minimise downtime). Similarly, larger events, in terms of attendee numbers, are preferable to smaller events as similar overhead and turnaround costs are incurred for each. Larger events are therefore more profitable as overhead costs are spread over a greater number of people.
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The Need for Venue Flexibility Conference facilities are frequently used for weddings, balls and other private events. These markets compete with the MICE industry for use of existing facilities. However, some evidence does suggest that MICE events are preferred to smaller ad hoc private events, at least for dedicated MICE venues. For example, the World Congress Centre in Melbourne claimed that, due to capacity problems, they frequently have to turn away private functions or corporate events arranged at short notice. The reason for this is the short duration of most private events compared with conferences or exhibitions which often run over a number of days and are more profitable in that they require relatively less downtime. Venues operating near capacity are reluctant to take bookings for short duration events because they limit the venue's ability to take more profitable bookings. Many venues listed in guides for meeting planners are not solely, or primarily, used for MICE purposes. This has implications for any assessment of infrastructure since such venues are not available to the same extent that dedicated MICE venues are. The main types of venue in this category are universities, colleges and schools in the capitals or surrounding suburbs. For these venues, MICE events are an auxiliary function, rather than core business. Although these institutions may appear ideally suited to convention, conference or seminar use, with on-site lecture theatres, meeting rooms and (usually) a large space for plenary sessions or dinners, their availability is limited by teaching timetables. This is especially true for events which involve delegates staying overnight. Except for some older and centrally located institutions, many of these venues are located in suburbs surrounding the city centre, and are without the benefit of nearby commercial accommodation. Most of these institutions do, however, have relatively basic accommodation for students which generally becomes available during non-teaching times. Generalising away from educational institutions, other factors, such as the ability of venues to host concurrent events, also affect capacity. The ability to host concurrent events depends primarily on the number of rooms available and the ability to divide large rooms, although sound proofing and other design features are also contributing factors. Ideally, to maximise venue flexibility, features such as removable tiered seating, removable walls, sound proofing, appropriate electrical set ups, large kitchens, efficient catering areas and so forth, should be incorporated into venue designs. The ability of venues to incorporate these features is, however, limited by construction costs. Currently, venue designs vary greatly, with newer facilities generally being designed more efficiently in terms of capitalising on available space. The average age of Australian convention and exhibition centres is only 5 to 6 years and many of the venues, such as the Brisbane Convention and Exhibition Centre, the Cairns Convention Centre and the Adelaide Convention Centre have the desirable flexible design features such as removable walls and removable tiered seating. The Adelaide Convention Centre, for example, has a plenary hall which can cater for a maximum of 3500 people. For smaller events, the hall can be sub-divided into five sound proof sections, each with separate sound systems, audio-visual and lighting controls. The capacity of each section ranges from 487 people to 1156 people (with the possibility of combining two or more sections to increase seating where necessary).
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Similarly, Australia's newest convention centre, the Cairns Convention Centre, has been commended for both flexibility and environmentally friendly design. This centre has a plenary hall that seats 2400 people theatre style and sub-divides into four sound proof sections to cater for groups of all sizes.
The Cairns Convention Centre (photo courtesy
http://www.cairnsconvention.com.au/happening.html). The complex consists of a purpose built, international standard meetings facility, suitable for exhibitions,
banquets and conventions from 200 to 5,000 delegates
Flexibility is vitally important to maximise use of available space. This is particularly true given the changing nature of the industry. Many industry commentators claim there has been a trend towards smaller meetings in recent years. Others, generally in locations where larger facilities have recently opened, claim that events are attracting larger numbers of delegates than anticipated and that the size of events in terms of delegate numbers has been increasing. The differing assessments show how difficult it is to determine trends in event size and just how open to change the situation is over time. Flexible venues should be better able to cater for these changes.
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MICE Industry Growth Forecasts The Australian Association of Convention Bureaus (AACB) has produced a consolidated event calendar, listing all events reported by convention bureaus around Australia since 1988. If it can be accepted, despite the inadequacies of the data, that the AACB consolidated MICE event calendar is a reasonable reflection of the industry since 1988, it may be possible to use this as a source for forecasts of growth. However, recording methods changed in 1996 in order to improve data quality and remove any double counting. As a consequence, the number of national and international MICE events recorded fell from the previous year, even though IVS results indicated a large rise in international conference or convention attendance. It should be noted that the IVS and the data on the AACB database measure different things. It is quite possible that the number of international MICE events actually dropped in 1996, but the average size of events, measured by the number of delegates attending each event, increased.
National and international MICE events in Australia. Source: Australian
Association of Convention Bureaus database
If it is assumed that growth will continue in line with past experience, omitting the 1996 results gives an average annual growth rate of 10.4 per cent per year for the years 1989 to 1995 for national MICE events and 13.8 per cent per year for international events. Including the 1996 data has a relatively minor effect on international event growth, reducing the rate to 11.2 per cent per year, but a major effect on national events, reducing average growth to 6.7 per cent. Only time will tell which of these scenarios is closer to actual growth rates in the industry.
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Factors which may affect growth in meetings and conferences include:
• changes in technology, such as video conferences
• changes in the international economy and the demand for overseas conferences
No data currently exist to determine the degree of video conference use and the extent to which it is replacing face to face meetings. International statistics on growth in the MICE market indicate that Australasia is becoming more popular as a conference destination. To capitalise on this Australia will need to remain competitive with neighbouring countries.
The MCE Industry Report suggests that it is impossible to tell from the industry's own data whether the MICE industry is experiencing anything other than short-term growth. However, official data sources give an indication, at least from a national viewpoint, of past and current numbers of people attending MICE events. For international visitors, the results of these data collections are summarised in the table below. It is clear there is growth in the number of international visitors coming to Australia either with a main reason of attending a MICE event, or who attended an event while in the country for other purposes. If this trend continues, it will affect the infrastructure needs of the Australian MICE industry, as international visitors are likely to make greater use of services such as accommodation, interpreters and transport.
National and international MICE events in Australia. Source: Australian
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Looking at the origin of these visitors, most come from North America, Europe and New Zealand. In the past couple of years there has been an increase in the number of visitors from Asia who attended MICE events in Australia. There is also some evidence of growth in the domestic MICE market. DTM data from 1989-90 to 1993-94 show that trips for MICE purposes have grown from 1.5 per cent of total domestic trips to 2.1 per cent. More recent data from 1994-95 and 1995-96, although not directly comparable to earlier years due to a break in the data series, indicate that MICE travel represented 3.5 per cent of all domestic trips in 1994-95 and 2.7 per cent in 1995-96. This growth will also have an effect on MICE infrastructure, though to a lesser extent than for international travellers. This is because domestic MICE events tend to use a much wider range of venues and are more likely to involve places located some distance from international airports.
MICE Industry Trends — A Summary35
• The post Olympic period for Sydney is looking good. Already Sydney has won more business for 2001 than what eventuated in 1999 and aiding that Sydney will have an increase of 24% in bed capacity.
• The post-Olympic experiences of Barcelona and Atlanta indicate that while both cities were able to capitalise on the Olympics to win more business, Sydney is already way ahead of their achievements.
• There is a concern however over the long-term strength of the Aussie Dollar which is predicted to strengthen by 18% by 2003. This strengthening in the dollar makes Australia less attractive economically for inbound visitors.
• The effect of the GST on visitors is mostly dismissed as most other countries already have VAT or GST ranging up to 18%. However the effect on the domestic market is going to be more marked with very few Australian small and medium business fully prepared and the associated costs of the implementation needed to be passed on to the customer.
• The 80’s recession saw companies cutting back on expenditure on Meetings, Conferences and Events, with strengthening of the Australian economy we can expect to see expenditure in this area pick up again.
• There is a challenge from Asia where many new Conference and Exhibition facilities have recently come online, however it may be argued that “Competition Creates Business”.
• In 1998 Australia received 4.2 million international arrivals. This figure is forecast to double by 2008.
• The trends evident in 1998 have become even more apparent in 1999 with organisations under increased pressure to hold events with decreasing lead in times. As companies become decentralized the need for more conferences with smaller delegate attendees’ in national city centres, is increasing.
35 This summary of trends in the Meetings, Incentives, Conference and Exhibition industry is compiled from
information disseminated through the AIME seminar on the sector and from a market briefing by the SCVB, which included papers by Mary Helen Farrell, Regional Manager, Victoria; Michel Couturier, Regional Director, North America and Karen Smith, Sales Manager, UK/Europe
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• Advances in the use of the Internet and email have provided opportunities for MICE operators to receive fast and accurate information and availability. They can view facilities online and download proposals and PowerPoint presentations with ease. Associations that have limited budgets can produce professional material without additional design and printing costs.
• A perceived threat by web technology is the development of the “virtual conference”-fast and efficient but lacking the networking benefits of the traditional face-to-face interaction.
• Many companies are opting to utilise their own in-house facilities for residential meetings and conferences. On e such example is BHP who own and operate the Global Leadership Centre on the outskirts of Melbourne with capacity for 100-150 delegates.
• The lead-in times are becoming increasingly shorter with organisers being pressured to provide a range of suitable venues with availability and competitive pricing.
• The emergence of new domestic carriers has created much interest in the likelihood of lower fares for passengers travelling from Melbourne to Sydney. Virgin plan to operate a fleet of 145 seat Boeing 737’s and offer a variety of “no frills” flights between major cities. The result will be cheaper flights between Melbourne and Sydney for delegates. In addition, Melbourne based Spirit Airlines and Impulse Airlines have also indicated their interest in forming the third airline. The newly privatised Melbourne Airport has indicated that it would be prepared to provide additional space to new domestic carriers. In the past year international traffic through Tullamarine has increased by 2.3 million people (6.3%). The strongest growth rate in Australia.
• According to ICCA, “Melbourne is forecast to be the second busiest city in the world for hosting international conventions in 2000” (Sydney is forecast to be the busiest.)
• The Bureau of Tourism Research in its June 1999 report on domestic MICE figures stated that Sydney is the meeting capital of Australia with 36.4% of all meetings held in Australia, followed by Melbourne with 11.4%. On a state-by-state comparison, 42.9% of meetings in Australia are held in NSW, followed by Queensland on 13.7% closely followed by Victoria with 13.5%.
• Melbourne continues to challenge Sydney for a larger slice of the MICE pie. Whether it be in readiness for the 2006 Commonwealth Games or just planned development, Melbourne is experiencing unprecedented growth.
• In other developments the MCMB has forged a global alliance with other Convention Bureaux around the world to capitalise on lead sharing opportunities. The alliance will encompass Boston, Copenhagen, Edinburgh, Vancouver and Melbourne. Launched at AIME 2000 and titled BestCities Net, it is aimed at international meeting planners who will take advantage of the alliance network. Plans include the development of a website with links to partner sites.
• Firmly established as the most popular destination in the world for international conventions, Sydney is enjoying the glow of local and international envy.
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• A recent M&IT Trends & Spends survey that noted that 1999 was the year when long haul destinations lost out to Europe. Time poverty was also a contributing factor and will continue to be so.
CONCLUSIONS
Tourism is a major contributor to total economic activity in Australia. International tourism has experienced substantial growth in the past decade or so. The holding of the Summer Olympics in Sydney in September 2000 is expected to have long term positive effects on inbound international visitors well into the next decade. This represents great potential for future domestic and export earnings. This has focused the need for improved standards of facilities and service. Tourism in Australia will continue to be dominated by domestic tourism for the foreseeable future. Australian tourism industry has always had a strong reliance on the domestic market, despite growth in international travel to Australia in recent years. Despite high annual growth rates, international tourism still only accounts for around a quarter of total tourism activity. While international tourism is forecast to continue to enjoy significantly higher growth rates than domestic tourism, it will be well into the new century before it matches the level of activity of domestic tourism. Growth in tourism flowing to Australia in the mid to late 1980s was at almost twice the international growth rate in tourism flows to all countries. However, Australia's share of world tourism is still small. There is considerable potential for growth. Whilst market conditions for the tourism industry have recently been in a state of considerable change because of certain world and domestic events, these changes are considered to have had a relatively severe, but only short tem impact. This reinforces industry buoyancy as it may have applied in 1999. Moreover, the evidence suggests a more buoyant longer term scenario. Since 1990, international visitation to Queensland has grown an average of 8.4 percent per annum. Queensland’s two most important international markets are Japan and New Zealand. A recent decline of Japanese visitors in 1999 saw New Zealand become Australia's most important source of international visitors, accounting for 16.3% of total inbound visitors. This was closely followed by Japan which accounted for 15.9% of inbound visitors, the United Kingdom (13%), United States of America (9%), and other European countries (8%). For conventions and exhibitions, the most important markets are New Zealand, United States, and Europe (in that order). In as far as domestic tourism is concerned, New South Wales was the most popular destination, followed by Queensland which attracts just over a quarter of all visitor nights. The strong popularity of New South Wales and Queensland is reflected in the fact that 70% of overseas room nights in hotels, motels and guest houses were spent in these States. Net beneficiaries from domestic tourism (i.e. where inbound interstate visitor nights are greater than outbound interstate visitor nights) are Queensland, Western Australia, Tasmania and the Northern Territory. Queensland is the biggest relative net beneficiary, with 2.2 times as many inbound nights as outbound nights,
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Tourism is an important part of the Queensland economy. Coastal areas are popular with older retired people and younger people wanting a change in lifestyle or who are attracted by service-based employment opportunities associated with tourism. In Queensland, there are four main tourist destinations, all of whom compete with one another, viz:
1. Cairns 2. The Whitsunday’s 3. Gold Coast 4. Brisbane
Rockhampton will receive competition from each of these areas. In Queensland, during 1999 the supply of accommodation in hotels, motels, guest houses and serviced apartments exceeded demand, with room occupancy rates of 63% for hotels, 54% for motels, and 60% for serviced apartments. Room occupancy rates are highest in the Northern Statistical Division (62.5%). The overall increase in Queensland’s total room supply during 1999/2000 was driven by a 28 percent increase in the number of serviced apartment guest rooms available. The number of hotel and motel/guest house rooms declined marginally for the year ended June 1999 compared with the previous year. Similarly, demand was driven by a 21.9 percent increase in the number of serviced apartment room nights occupied, and to a lesser extent, a 5.5 percent increase in the number of hotel room nights occupied. Motel and guesthouse room nights sold for the year ended 30 June 1999, compared with the year ended 30 June 1998, remained unchanged. Whitsunday Islands, Hervey Bay/Maryborough, Northern and Fitzroy Tourism Regions were ranked in the top 20 tourism regions visited by international visitors to Australia in 1999. In the context of assessing the impact of tourism on the development proposed (due to its size nature and scope) a longer term view of the industry as a whole and its prospects is considered the most appropriate focus. Given the outlook for continued buoyancy and growth from international tourism markets, despite recent events, together with continued support from domestic tourism, the Project’s viability appears to be underpinned by a continuation of increased, albeit slower in the short term, tourist demand. This translates into expectations for the MICE industry specifically, where there has been strong and continuing growth in the number of MICE venues in Australia. Not all of this growth has arisen from new building activity, as many existing mixed use venues have entered the MICE market. It is clear that newer MICE venues have been constructed after assessing the design of older venues. Most new facilities incorporate more breakout space and meeting rooms, with other design features included as needed. The one infrastructure constraint on the continuing growth of the industry appears to be accommodation. The accommodation industry appears to be emerging
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from a sustained period of falling profitability and oversupply. During the period of low occupancy and profitability the accommodation industry is likely to have contributed to the growth in MICE events through special tariffs and active competition for events. One strategy to overcome accommodation constraints could be to spread events to a greater extent over the year. This would have the effect of reducing peak loads and helps to demonstrate to hotel developers that the MICE market can be relied on for continuing room occupancy. However, this is not an easy problem to solve - supply of accommodation usually depends on factors mostly unrelated to the needs of the MICE industry and is subject to financial constraints and long lead times.
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999... AAACCCTTTIIIVVVIIITTTIIIEEESSS SSSCCCHHHEEEDDDUUULLLEEEIdentification of activities which can make effective use of the Rockhampton Showgrounds sector.
ACTIVITY CONSTRAINTS
By comparison with the Original master Plan, and the Alternate Concept Design, the recent announcement concerning funding36 now severely limits the scope of activities potentially able to be conducted at the Central Queensland Events Centre. In the Original Master Plan, the planned upgrading of existing facilities would have meant increased event hosting capabilities as follows
• Redevelopment and extension of the Walter Pierce Pavilion allowed for greater functionality of the venue and increased floor space to host functions, in addition to providing corporate boxes and a members bar
• The New Entry / Administration Building allowed for the possibility of earning limited additional income through the leasing of commercial / retail space to associated businesses. It also incorporated a basketball court and entry hall for limited static displays, VIP entertainment facility, media communications area and canteen.
• The New Cattle Pavilion was a multi-function, multi-purpose facility that was intended to incorporate an ability to double up as a horse pavilion with appropriate design components. It had the ability convert from a cattle pavilion to a large flat floor area capable of hosting larger events under cover such as Rodeos, exhibitions and indoor sports such as tennis (although the Consultants have reservations about the ability to construct such a building with the degree of flexibility required even with the budget provision)
• Other improvements as required (e.g. refurbishment of the Robert Archer Grandstand, construction of new Amenities Buildings, cattle yards & seating, demolishing and relocation of various facilities etc. ) added limited additional flexibility and no prospect of additional income earning potential other than making the whole venue more “marketable”. In this sense, whilst these inclusions are essential to any redevelopment proposal and are necessary to support the new facilities, they do little more than ensure existing events remain at the site.
• Site works, Landscaping and Re-profiling to Victoria Park & Trade Display Area potentially increases the ability to hold exhibitions and events requiring larger outdoor space, and increase flexibility for trade show displays and other events associated with the Beef Expo. There may also be a positive impact on utilising the site as a camping area.
The alternate product concept represents a further and considerable improvement on the ability to host major, world class events through:
• The inclusion of the International Exhibition Complex headquarters, incorporating administration and commercial space essentially replaced the requirement for the New Entry / Administration Building allowed under
36 State Government approval of $8m in addition to Rockhampton City Council contribution of $2m
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the Original Master Plan. This larger facility provided not only all the functionality of the original administration building, but also further and considerable opportunity for the earning of additional income through the leasing of commercial / retail space to business. It also maintained an ability (as originally planned) to host static displays and including VIP entertainment facility, media communications area and canteen. However, the primary significance here is the inclusion of a large flat floor area suitable for the holding of major world-class events and exhibitions – a true “convention and exhibition” complex.
• The New Cattle Pavilion, whilst less “multi-functional” compared to that envisaged under the Original Master Plan, nonetheless incorporated an ability to double up as a horse pavilion with appropriate design components. However, the need to convert to a large flat floor area capable of hosting larger events such as major exhibitions and indoor sports was obviated by the inclusion of the proposed International Exhibition Complex headquarters above), although limited functionality would still be possible in this regard.
• The River Stage Amphitheatre was a new addition adding greater flexibility to the venue and provided the possibility of attracting new event staging capability (e.g. large music concerts) within a fully integrated development zone adjacent to the existing Rockhampton Showgrounds site.
• The upgrading of the AFL / Cricket Ovals, together with the acquisition of portable / relocatable grandstands, would have seen the venue have a new capability for hosting major national / international sporting events which is not possible at the current time.
• The removal of the originally planned redevelopment and extension of the Walter Pierce Pavilion (allowing greater functionality of the venue and increased floor space to host functions) is more than compensated by all the above plans.
• As for the Original Master Plan, Site works, Landscaping and Re-profiling to Victoria Park & Trade Display Area potentially increases the ability to hold exhibitions and events requiring larger outdoor space, and increase flexibility for trade show displays and other events associated with the Beef Expo.
• Most of the other improvements were planned to be maintained, albeit on a more limited scope compared to the Original master Plan (e.g. refurbishment of the Robert Archer Grandstand, construction of new Amenities Buildings, cattle yards & seating, demolishing and relocation of various facilities etc. ). As commented previously, these sub-projects added limited additional flexibility and no prospect of additional income or earning potential, doing little more than supporting new infrastructure and ensuring existing events remain at the site.
• The addition of proposed ancillary features such as entry statements, visual orientation focal point, car parks and shade and upgrading of the riverside promenade, whilst not directly income earning in themselves, substantially increased the venue’s marketability.
However, budget constraints now essentially mean that the Project represents more a revamp of existing facilities to bring them up to a standard suitable for continuation of the Beef Expo Event, with the likelihood of attracting only modest new business to the site.
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Compared to the original Master Plan, the current development (Final Revised Master Plan) is unchanged in respect of planned major non-building capital infrastructure (e.g. Ring Main for Water Supply, Underground Services to Trade Display Area, Re-profiling of the Trade Display Area, Underground Services to Victoria Park, construction of a Waste Treatment Plant, and various fencing)37. However, it provides for a more modest upgrade of:
• New Cattle Pavilion (budget restrictions will limit the ability to incorporate the degree of “multi-functionality”. It will be possible however to construct a building similar to that envisaged under the alternate product concept, i.e. an ability to double up as a horse pavilion, with limited functionality as a venue capable of hosting larger events such as major exhibitions and indoor sports).
• New Entry / Administration Building (this will be capable of earning limited additional income through the leasing of commercial / retail space to associated businesses. Budget restrictions may limit the possibility of incorporating a basketball court, however the structure will be able to contain an entry hall for limited static displays, and other items as originally planned such as VIP entertainment facility, media communications area and canteen.
• Redevelopment of the Walter Pierce Pavilion (allows increased functionality of the venue and limited increased floor space to host functions, in addition to providing corporate boxes and other entertainment facilities such as a members bar)
• Other works will proceed but will be less comprehensive than planned under the Original master Plan. This includes Site works and Landscaping, Electrical Up grade, Site works and Re-profiling to Victoria Park, as well as construction items including Amenities Buildings, refurbishment of the Robert Archer Grandstand, and new Cattle Yards & Seating.
Further, there is no budget provision (included in the Original Master Plan) for the demolishing / relocation of the Hideaway Bar and James Lawrence Pavilion, nor refurbishment of the Primac Pavilion & McCamley Meat Hall Pavilion. Accordingly, taking all the above into account there is no capability for the venue supporting:
• Events requiring a quality large indoor flat floor area (precluding most major exhibitions and similar events)
• The hosting of major national or international sporting fixtures
• The hosting of large outdoor concerts Whilst the terms of reference called for an investigation of new ways in which existing events may be staged and repackaged, it is submitted that the current proposal provides for the Council becoming responsible for venue management and marketing (e.g. promoting the Rockhampton Showgrounds sector, in conjunction with the Gracemere development), as opposed to event management and marketing (e.g. the most effective way of organising and staging the annual Rockhampton Show). It is unlikely that Council will be in a position to significantly influence private individuals or organisations (even many community organisations) in the way in which they are likely to promote or package International, national, state, regional and local expositions, major
37 Plus acquisition of Showgrounds site (not included in original Master Plan budget)
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sporting events, major cultural and musical activities, or large religious assemblies and other meetings. Rather, Council’s primary responsibility will be to provide a venue that is flexible enough to meet needs – one that fosters community participation and provides value to event and exhibition promoters. Since the strategic direction calls for supporting, rather than competing against, community and business activities, there will be a limited scope for Council in its own right becoming involved the development of new major events or festivals, other than supporting (where appropriate) the development of such activities by entrepreneurs.
MAJOR FESTIVALS & EVENTS HELD IN AUSTRALIA & OVERSEAS Appended to this Report are the following event-related tables:
MAJOR AUSTRALIAN FESTIVALS AND EVENTS 2001-02 MAJOR AUSTRALIAN EXHIBITIONS 2001-02 MAJOR WORLD EXHIBITIONS 2001 – 2002
They provide a guide as to the kind of activities that are typically conducted, or intending to be conducted, throughout Australia and the rest of the world. Points to note are:
• The listings are not meant to be comprehensive, although they are arguably representative. There are approximately 2,000 major events held every year throughout the world every year, and only a very few percent are likely to change venue.
• Many, if not most, of the events are incapable of being targeted by this Project. A good number of them have evolved from and are integral to, the domicile to which they have evolved. The Melbourne Cup horse racing fixture is a good example of this non-transferability!
• The events in many cases are being held at domiciles (e.g. Capital cities) that have demographics and facilities vastly different to that applying at Rockhampton. These may not provide data easily interpreted in the Rockhampton context.
• Nonetheless a number are held / intended to be held at major regional centre where there is some comparability.
THE CAIRNS CONVENTION CENTRE — ACTIVITIES
A good indicator of the kind of events capable of being held at a major regional centre like Rockhampton (if suitable facilities were available) is to examine the business of the Cairns Convention Centre. Past and future Conventions held / to be held at the Cairns Convention Centre provide some guide as to how that facility is being utilised to attract new business to the region. Although there are disparities between Rockhampton and Cairns (especially with regards availability and quality of local accommodation, and
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the greater frequency of standard domestic flights into the centre)38, it is relevant since both locations are relatively remotely located major regional centres, and are basically the “launching point” (as against focal point) for major tourist areas and activities. Whilst not being directly transcribable across to Rockhampton, the following major activities at the Cairns Convention Centre provides an insight as to the wide variety of functions that are potentially able to be held: 2001 • Australian Pain Society 22nd Annual Scientific Meeting • 7th Congress of the Asia Pacific Society of Paediatric Gastroenterology &
Nutrition Retravision 40th National Seminar • MRI & MRS 2001 Conference • Housing Industry Australia - Ausbuild National Convention • RetireInvest Annual Conference • 4th International Banana Industry Congress • RSL State Congress • Asia Pacific Fishing Conference & Exhibition • SSI 2001 "Materials & Processes for Energy & Environment" • 15th International Conference on Ion Beam Analysis • Queensland Wound Care Association & Infection Control Practitioners
Association of Queensland Joint Conference 2000 • Catholic Education Diocesan Conference • Fujitsu Forum Conference • Australian Sugar Convention • Royal Australian College of Obstetricians & Gynaecologists National
Convention • Queensland Rural Medical Support Agency Workshops • 8th Congress of Developmental and Comparative Immunology • Australian Society for Microbiology National Convention • Australian Hotels Association National Convention & Trade Expo • Flag Choice Hotels Annual Convention • Microsoft Tech Ed Conference • 5th International Conference on Greenhouse Gas Technologies Australian
Diabetes Society Convention • Casemix Conference • Fresh 2000 (Aust Fresh Fruit and Vegetable Growers National Conf) • Forestry 2000 (Australian Forest Growers National Conference) • International Federation of Health Funds Convention • Project Management Global Convention • REPCO Auto Repair National Conference • Scoliosis Research Society Annual Meeting • 13th International Symposium on Regulatory Peptides • National Insurance Brokers Association Convention • International Cotton Advisory Committee 59th Plenary Meeting • PeopleSoft Conference • 24th Extraordinary Bureau & Session of the World Heritage Committee
Major events planned for 2002 include the following:
38 In addition, the major difference between the Cairns and Rockhampton venues relates to the limitation
of quality large indoor flat floor area (precluding the possibility of hosting many major exhibitions, conventions and similar events at Rockhampton)
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Dates Event No. of Dele-gates
Company
1-7 May Association Convention 2000 Cairns Convention Centre 12-16 May Diagnostic Imaging Conference &
Radiation Therapy Symposium 500 Australian Institute of
Radiology - QLD 6-10 June 10th International Conference on
Emergency Medicine 1200 Australasian College for
Emergency Medicine 11-16 July International Biometric
Conference 1000 International Biometric
Society 25-29 July Association Convention 400 Cairns Convention Centre 10-13 October
International Meeting of the Growth Hormone Research Society
1000 Intermedia
FORECASTS FOR EVENT PLANNING AT ROCKHAMPTON — ASSUMPTIONS
Assumptions used in the forecasts for hosting events by the Central Queensland Events Centre are detailed below. By way of overall summary, it is assumed that in addition to current major events held at the site, an additional one major two day event will be held annually (commencing May 2004 upon completion of all major capital works and improvements and a lead time of approximately 2 years), plus an additional one day special “on-of” event commencing in September 2005 or earlier (3.5 years lead time). Major Events (Current)
For the purposes of our analysis, the definition of a major event is one that utilises the equivalent of at least 100% of all venue facilities for at least 1 day per annum.
Event Timing Dur-ation
(days)
Comments
Beef (Expo) Australia 2003 May 2003 6 Primary event for the site (tri-annual)
Beef (Expo) Australia 2006 May 2006 6 World Brahman Congress Apr-2002 6 One-of special event Rockhampton Annual Show 2002 Jun-2002 5 Annual major event Rockhampton Annual Show 2003 Jun-2003 5 Rockhampton Annual Show 2004 Jun-2004 5 Rockhampton Annual Show 2005 Jun-2005 5 Rockhampton Annual Show 2006 Jun-2006 5 Rockhampton Annual Show 2007 Jun-2007 5 Rockhampton Speedway meetings
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Gemboree 2006 Mar-2006 7 Gemboree 2007 Mar-2007 7
Major Events (Additional, Projected)
Additional (projected) major events could be either annual events, or special “one-of”. Forecasts included in this Report assume that by September 2007 there will be 4 additional annual events being held on site with an average duration of 2 days each, plus one new additional “one-of” event each year with an average duration of 1.5 days.
Event Timing Dur-ation
(days)
Comments
New Additional Annual Event #1 May 2004 onwards
2 Based on 2.1 years lead time
New Additional Annual Event #2 May 2005 onwards
2 Based on 3.1 years lead time
New Additional Annual Event #3 May 2006 onwards
2 Based on 4.1 years lead time
New Additional Annual Event #4 May 2007 onwards
2 Based on 5.1 years lead time
New Additional Special “One-Of” Event #1
Sept. 2005 or earlier
1.5 Based on 3.5 years lead time
New Additional Special “One-Of” Event #2
Sept. 2006 or earlier
1.5 Based on 4.5 years lead time
New Additional Special “One-Of” Event #3
Sept. 2007 or earlier
1.5 Based on 5.5 years lead time
New Additional Special “One-Of” Event #4
Sept. 2008 or earlier
1.5 Based on 6.5 years lead time
Minor Events (Projected)
For the purposes of our analysis, the definition of a minor event is one that utilises the equivalent of less than 100% but greater than 20% of all venue facilities for at least 1 day per annum. The forecast is to hold a total of 15 days (chargeable equivalent) of minor events at the site, with a growth rate of 25% annually applied after completion of major capital works (Stage 1). Other Events For the purposes of our analysis, events not categorised as major or minor events are not separately accounted for. Accordingly, they represent minor income streams that are included in Sundry Income and Sales.
POTENTIAL EVENTS FOR THE CENTRAL QUEENSLAND EVENTS CENTRE
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The following table lists major events that could be targeted or “grown from concept” to enable realisation of forecast growth in business for the redeveloped Central Queensland Events centre Facility. Whilst the list is not exhaustive, it includes only those events likely to be held at the site given the level of planned infrastructure and facilities availability.
Existing Events
Major existing events held throughout Australia and overseas that may consider being hosted or relocated to Rockhampton:
Event Type of Event Annual One-Of Likely
Duration (days)
Facilities Utilisation
(%)
Lead Time
(Years) Particular Beef Breed Annual Conference(s) (similar to World Brahman Congress)
Conference 1-3 50%-100%
1-3
Beef Cattle Industry conference(s) Conference 1-3 50-100%
Australian Diabetes Society Convention Conference 1 20% 3 International Conference on Greenhouse Gas Technologies
Conference 1 20% 3
REPCO Auto Repair National Conference Conference 1 20% 3 National Insurance Brokers Association Convention
Conference 1 20% 3
Extraordinary Bureau & Session of the World Heritage Committee
Conference 3 20-50%
5
Tasting Australia Exhibition 3 100% 3-5 Australian 4WD & Adventure Show Exhibition 2-5 100% 5+ Getaway Travel Show Exhibition 2-5 100% 5 BIG BOYS TOYS - AUSTRALIA Exhibition 3 100% 2-4 ASIA PACIFIC REAL ESTATE CONGRESS Conference 2 50% 5+ TIMBER AND WORKING WITH WOOD SHOW
Exhibition 2 100% 3-5
MINING AND ENERGY Conference & Exhibition
2-5 100% 4
THE INVESTMENT EXPO Exhibition 1-2 100% 4 Off-Road 4WD Recreation Show Exhibition 2-5 100% 5+ EQUITANA ASIA PACIFIC Exhibition 2-4 100% 3-5 Materials Handling Exhibition 2-5 100% 5+ Housing Industry Australia - National Convention
Conference 1 20% 2
RetireInvest Annual Conference Seminar 1 20% 2 RSL State Congress Seminar 2 20% 3 Event Type of Event Annual One-Of Likely
Duration (days)
Facilities Utilisation
(%)
Lead Time
(Years) Asia Pacific Fishing Conference & Exhibition
Exhibition 1-3 100% 5
Queensland Wound Care Association & Conference 1 20% 3
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Infection Control Practitioners Association of Queensland Joint Conference Catholic Education Diocesan Conference
Conference 1 20% 3
Australian Sugar Convention Conference 1 50% 4 Royal Australian College of Obstetricians & Gynaecologists National Convention
Conference 1 20% 5
Queensland Rural Medical Support Agency Workshops
Seminar 3-5 10% 3
Australian Hotels Association National Convention & Trade Expo
Exhibition & Conference
2 50-100%
3-5
New Events
New events that may be promoted at the venue given infrastructure constraints / flexibility:
Event Type of Event Annual One-Of Likely
Duration (days)
Facilities Utilisation
(%)
Lead Time
(Years) Microsoft Conference(s) Conference 1-2
each 10%-20%
3
Rodeo(s) – additional to that already held at Rockhampton. Could include: • Camp drafts • Cutting competitions • Bull riding • Horse events, Etc.
Competition / exhibition
1-5 each
100% 2-3
Light metals and mining expo Exhibition 1-2 100% 2-3 Country Music Festival (planned facilities are a limiting factor here)
Concert 1-5 100% 3-5
Boat and fishing show Exhibition 1-3 100% 3-5 Home show Exhibition 1-2 100% 3-5 Metals and mining expo Exhibition 1-3 100% 2-4 Motor show Exhibition 2-3 100% 2-5 Equine expos Exhibition 2-5 100% 3-5+ Motor cross Competition
/ exhibition 2-5 100% 2-5
Pony club activities – additional to that already held at Rockhampton. (Note: facilities limit ability to hold 3 day events or similar)
Competition / exhibition
2-5 100% 2-5
Beef Show Exhibition 2-3 100% 3-5 Agricultural industry show(s) – special interest groups
Exhibition 1-5 20%-100%
2-5
Australian Defence Force – biennial training campaign
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111000... MMMAAARRRKKKEEETTTIIINNNGGG AAANNNDDD PPPRRROOOMMMOOOTTTIIIOOONNNSSS♦ Detailed strategies which can enable the Rockhampton
Showgrounds sector to stage a large number of international, national, state regional and local exhibitions.
♦ Detailed suggestions to expand the range of horse and cattle related activities held at the Rockhampton Showgrounds.
OVERALL STRATEGY
Background & Overview
The MICE market is currently experiencing a strong globalisation trend with large exhibition companies moving into the Australian market. To date, they have restricted most of their activities to larger convention and entertainment complexes within capital city locations. However, their business is expanding further a field.
It has been previously commented in this Report that one of the key strategic issues identified thus far relates to competition. Major venues today are all competing for the same business, and most of them have dedicated personnel whom are marketing their venues around the world. Their customers are organisers for the approximately 2,000 major events held each year throughout the world of which only 5% are likely to change. Therefore Central Queensland Events Centre needs to utilise its identified competitive advantages in order to attract such events to its venue. It will concurrently need to respond to the needs of large, international organisers whom are demanding great flexibility in terms of facility design. On the other hand, it must also be recognised that the best events are the ones created, developed, owned and held locally (the Beef Expo itself is one such example). It is therefore reasonable that this should be a key focus of the Marketing Plan. This in turn demonstrates a need to have a focus at all levels from local community to international. This is a considerable marketing challenge.
Further, with budget restrictions as outlined in the Introduction to this Report, the venue redevelopment as currently proposed has limited or nil capability for supporting events requiring a quality large indoor flat floor area (precluding most major exhibitions and similar events), the hosting of major national or international sporting fixtures, or the hosting of large outdoor concerts.
The Strategy
The Project’s overall marketing strategy should be one based on the
development of a consistent image of a venue capable of supporting quality events at value prices, especially where the event potentially seeks to connect city-country-coastal people or alternatively where the event reinforces the well branded “Beef Capital” image. This will in turn assist in moving towards realising the Project vision which is: “A regionally-based exhibition and convention complex: the multifunctional centre for housing quality, local, regional, national and international events, connecting city, coastal and country”.
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Special note by Consultant: with recent changes made to the nature and scope of the Project as per the Final Revised Master Plan, the vision statement is certainly a longer term view of the possibilities. It will be difficult to realise under the scenario existing for current development proposals.
Assumptions in Developing the Strategy
Assumptions made in the development of the marketing strategy include:
• Primarily, that the Project operates within Budget constraints being imposed by the Project’s proponents and government, in turn limiting the nature and scope of events able to be held on site
• That the Project’s vision remains valid (“A regionally-based exhibition and convention complex: the multifunctional centre for housing quality, local, regional, national and international events, connecting city, coastal and country”).
• That the Project will continue to receive strong community support, including the support from potential market targets of Defence Force, TAFE, University and Industry.
• That the venue at Rockhampton will maintain its competitive advantages (being able to offer something unique)
• That the Project is professionally marketed, building upon it’s strong branding as Australia’s Beef Capital
MARKETING STRATEGIES & INITIATIVES, INCLUDING SELLING & PROMOTIONAL ACTIVITIES
The Project’s scope will be insufficient to transform itself from a “price takers to a
price maker”. This is because, with the possible exception of beef / livestock related activities, there will be insufficient differential between the venue at Rockhampton, and other venues available elsewhere,
However, a number of strategies (below) have been developed to overcome such limitations. They have been separated into the traditional 5 “P’s” of marketing (product, place, price, promotion and people), and are linked to the relevant issue at hand. Special Note: The “customers” of the Central Queensland Events Centre are primarily event organisers and other relevant organisations, and not usually the end user. It is therefore not generally appropriate to use mass media advertising mediums for promotional purposes, e.g. Newspapers, Cinema, Television (Free – to – Air), Television (Pay Channel), Commercial Radio.
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Issue Strategy Time-
frame PRODUCT
1 Globalisation trend of the MICE market with large exhibition companies moving into the Australian market
Develop locally-owned and created events (as outlined elsewhere in this Report)
2 • Lack of provision of a suitable accredited conference venue
• Proposed redevelopment of the Walter Pierce pavilion will in part provide some support, however refer next point below
Issue Strategy Time-frame
3 • Budget constraints being imposed which limit the nature and scope of events able to be held on site
• Responding to the needs of large, international organisers whom are demanding great flexibility in terms of facility design
• Increased ability to meet local sporting requirements / multi-code sporting oval
• Quality multi-purpose flat floor area capable of hosting 1,500 persons + not currently in Revised Master Plan
• Provide for better pedestrian flow
• Continuation of lobbying for government support to increase funding levels likely to support desirable infrastructure
• Concept redesign ensuring facilities are as multi-purpose and flexible as possible, moving towards the alternate product concept as quickly as possible (subject to above)
PLACE 4 The need to provide strong support for
the Beef Expo • Ensure Beef Expo
representation on the Board of management
• Ensure facility development and design gives high priority / consideration to the needs of the Beef Expo wherever possible
5 Rockhampton’s domicile Conduct targeted market research into those markets where prospects for success seem most likely
PRICE 6 • Price focus by event organisers
• The need to capitalise on the spending multipliers by event attendees, not immediately apparent in Project cash flows
Develop value-pricing packages that encourage spending by event attendees over extended periods
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7 The need to ensure maximum revenue capture by the Central Queensland Events Centre
• Management agreements to be struck with adjoining organisations (e.g. Brothers leagues Club, Rockhampton State High School)
• Adopt “user pays” principle in general for the venue
• Avoid discounting major event pricing @ $12,300 per day for 100% facility utilisation, and value-add where possible
• Develop merchandising lines39 in time for re-opening of the redeveloped facility significant opportunity but within budget constraints
8 • Ensure industry is well aware of the venue and its capabilities.
• Capture of international business
Subscription / membership of peak industry organisations including convention bureaux and marketing authorities
9 • Despite adopting overall concept of “user-pays”, there is a need to provide cross-subsidisation to allow the hosting of certain community events at nominal or nil cost
• Provide suitable venue / support for related businesses to establish their headquarters on site
• Ensure the venue provides regular cash flow to limit income irregularities
Ensure design incorporates suitable / adequate space for leasing commercial and retail space on a long term basis (1,500 sq.m. as provided for under the Revised Master Plan)
Issue Strategy Time-frame
PROMOTION 10 Customer awareness of the venue
and its capabilities • Develop quality marketing
material (in particular,
39 Merchandising Lines include, for example, caps, T-shirts, postcards, drink holders, key rings, etc.
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brochures for the venue’s event capabilities, and commercial rental space)
• Develop self-extracting multimedia CD Computer Disk for distribution to customers / potential customers40
• Distribute event organiser’s marketing material to all local and regional Art Galleries, Museums & Other Public facilities utilising Council resources
11 Expectation by customers and event organisers that the Central Queensland Events Centre is locatable on the internet
Develop outstanding web-site presence
12 Industry awareness Ensure Project is listed on the MIDAS (Meetings and Incentive and Business Travel and Meeting Exhibition) database
13 The need to support local businesses Become involved in local promotions as opportunities arise, subject to budget availability
14 • Local community awareness of the venue and events being hosted to ensure maximum attendance levels are achieved (also assists marketing to event organisers)
• Visitor awareness of the venue and events hosted
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Queensland Events Centre CEO
16 Competition from alternate major venues.
Employment / contracted engagement of a dedicated Marketing Manager
17 • Staff motivation • The need to achieve forecast
income levels to sustain project viability
Provide meaningful incentives to CQEC management for securing of profitable contracts
MEMBERSHIP OF RELEVANT ORGANISATIONS
Membership of relevant organisations is considered to be a key marketing strategy since awareness of the venue and its capabilities is fundamental to the referral of new business.
Use of Marketing “Authorities”
Management will need to develop a close relationship with local / regional marketing authorities to ensure that a co-ordinated response is given to business referrals. These organisations will include: 1. Capricorn Tourism (Rockhampton) 2. Rockhampton City Council 3. Rockhampton Venues +Events 4. Rockhampton & District Promotion & Development Association Inc. As an alternative, with the major redevelopment of the Showgrounds and Gracemere complexes (and associated facilities), there may be a need for Council to consider the creation of an-all embracing marketing authority for the region.
A good example of where this may have been used successfully is Brisbane Marketing which claims to act as the integrated marketing authority for Brisbane, encompassing the Brisbane Convention & Visitors Bureau Pty Ltd which handles tourism, festivals and events, and retail. It was formed in October 2000 through the merger of three of the city's primary marketing organisations: Brisbane Tourism, Queen Street Mall and The Valley Malls.
International Association of Convention and Visitors Bureaux (IACVB) / Australian Association of Convention Bureaus (AACB)
The International Association of Convention and Visitors Bureaux (IACVB) is the world’s largest association of convention and visitor bureaus, serving more than 1,200 members in approximately 500 destination management organizations in 30 countries41.
IACVB promotes professional practices in the solicitation and servicing of meetings, conventions and tourism, as well as educational resources and
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networking opportunities to its members, and information on the CVB industry to the public. IACVB is sometimes criticised for being North American focussed and not truly international, however the organisation appears to be expanding particularly in Europe and Asia The official provider of information on attractions, facilities and services in a destination is the CVB (Convention and visitor bureaus) - known as conference and/or tourism boards in many countries - are primarily not-for-profit organizations that represent a specific destination such as a city or region. CVBs serve as the “official” contact point for their destination for meeting professionals, tour operators and individual visitors. CVBs, have been recognized by their respective city or county governments as the official community agency to promote their destination by providing accurate, unbiased information to visitors. More than 450 CVBs worldwide are members of the IACVB and ascribe to the standards and ethics of this world organization. There are more than 900 CVBs around the world working in and for their respective communities According to the Australian Association of Convention Bureaus (AACB), there are four Australian listings for the IACVB (Brisbane Visitors & Convention Bureau; Melbourne Victoria Melbourne Convention & Visitors Bureau; Perth Convention Bureau, and the Sydney Convention & Visitors Bureau. AACB through Team Australia develop strategies designed to promote all bureaux members (Team Australia is an agreement between the ATC (Australian Tourist Commission) and the country’s main convention bureaux to develop new international business markets for the future). Therefore, membership of the AACB would seem to be an imperative for the Central Queensland Events Centre in order that business development opportunities are captured wherever possible, especially with regards the international market. Tourism and Convention Bureaux in Australia include: • Adelaide Convention & Tourism Authority • Brisbane Tourism • Canberra Convention Bureau • Cairns and Region Convention Bureau • Conventions and Incentives New Zealand • Gold Coast Tourist Bureau • Melbourne Convention & Marketing Bureau • Northern Territory Convention Bureau • Perth Convention Bureau • Queensland Tourism & Travel Corporation • Sydney Convention & Visitors Bureau • Sunshine Coast Convention Bureau • Tourism NSW • Tourism Victoria • Townsville Convention Bureau
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AIME
AIME 2002 will be held at the Melbourne Exhibition Centre on 19th & 20th February 2002 (around the time of the publication of this Report). AIME is renowned as a showcase of the very best of Australia and the Asia Pacific under the one roof, including accommodation, conference and exhibition venues, incentive travel deals and other products associated with the MICE industry.
Australasian SpecialEvents42 Australasian SpecialEvents provide a forum for event industry conferences and expos. They split events into two main areas, viz:
1. Conferences and Expos directly related to the Business Events industry (the Associations and Industry Calendar)
2. Go-Events – a forum for other Conferences and Expos not related to the Business Events industry. go-events.com is a comprehensive Internet based resource for business event listing and on-line registrations. Content is entered over the Internet by event organisers around the world, and is then syndicated to Channel Partners. The site features a search engine whereby one can search for business events in Australia only, or worldwide. It is also possible to list an event at no charge.
The Australasian SpecialEvents web site also contains an Festivals and Events Calender which contains a listing of major Public Festivals and Events. Most of these events have their own websites so details of those events can be found by following the link to their website. Event Industry Associations
• ISES Australia (The International Special Events Society represents the interests of event producers, managers and suppliers working primarily in the corporate sector.)
• MIAA (The Meetings Industry Association of Australia covers the conference industry. Associated with many conferences are special events such as opening and closing ceremonies and gala dinners.)
42 Information on Australian Special Events is located at
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Other Industry Associations
AALARA The Australian Amusement, Leisure and Recreation Association AFTA Australian Federation of Travel Agents AIA Australian Incentive Association AIM Australian Institute of Management AIPP Australian Institute of Professional Photography ASIAL Australian Security Industry Association Limited ATE Australian Tourism Exchange ATEC Australian Tourism Export Council ATIA Australian Tourism Industry Association ATIC Australian Tourism Information Centre ATS Australian Technology Showcase BKSTS The Moving Film Society BTR Bureau of Tourism Research EEAA Exhibitions & Events Association of Australia IAAPA International Association of Amusement Parks & Attractions IFEA International Festivals & Events Association ILDA International Laser Display Association ITB Internationale Tourismus Boerse ITOA Inbound Tourism Organisation of Australia IT&ME Incentive Travel and Meeting Executive Show MEAA Media, Entertainment & Arts Alliance MIAA Meetings Industry Association of Australia NSAA National Speakers Association of Australia PATA Pacific Asia Travel Association R&CA Restaurant & Catering Association SUVA Sydney's Unique Venues Association VECCI Victorian Employers Chamber of Commerce and Industry VMA Venue Management Association WTO World Tourism Organisation
PROMOTING THE UNIQUENESS OF ROCKHAMPTON
Promoting the uniqueness of Rockhampton (i.e. its competitive advantage) is fundamental to attracting new business. This uniqueness has been identified as follows (in priority order):
1. The Beef Capital : keep pushing the branding • Development of Opportunities: • Beef Expo • Breed Societies • Talent development
2. Entrance to the “Real Australia”
3. Australia/ Queensland’s regional hub • Geographically • The Arts • Sports • Rodeo & Camp drafting
4. “The Land of Many Hats” • Mining, Arts, Sports • City, Rural / Country, Coastal
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All promotional activity, including the development of marketing material, web sites, and bill boarding, should make at least some reference to, or capitalise on these factors, which are graphically illustrated below:
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LOGO / TRADE MARK REGISTRATION43 Trade marks distinguish goods or services of a
trader from those of other traders. They can be in the form of a word, picture or symbol, or a combination of these.
In the case of the Central Queensland
Exhibition Centre, a distinguishing trademark symbol will serve to differentiate the venue and its “products” – it should create a favourable image. An example of how this might work (when the Project was known simply as the International Exhibition Complex, Rockhampton) is shown right, where the trademark or logo was integrated with the existing logo for the Rockhampton City Council
Registration of trade marks is obviously not compulsory, but has several benefits.
These benefits include:
• Protection of investments made in the venue and its promotion • Legal rights to exclusively control and use the trade mark for the services for
which it was registered • Ownership rights additional to common law rights • Protection of trade mark from misleading use in the market place • Australia wide registration, which can be useful when seeking registration
overseas. Only distinctive marks, or marks that are capable of becoming distinctive, can be
registered. These could include; names represented in a distinctive manner, an invented word, or a distinctive mark.
Trade mark registration differs from business name registration. A business name is
a name, style, title or designation under which a business is conducted, whereas a trade mark is used to identify and distinguish goods or services of a business or trader.
An application for a trade mark must therefore be made with the Trade Marks
Office. As soon as possible (it is usually several months before the application is processed). Further, applications are examined to determine whether they meet the requirements of the Trade Marks Act.
43 Primary source for this information is: AIPO Trademark Leaflets 1, 2, 3 & 4, Printed by AIPO Print Room,
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111111... OOORRRGGGAAANNNIIISSSAAATTTIIIOOONNN &&& MMMAAANNNAAAGGGEEEMMMEEENNNTTTSSSTTTRRRUUUCCCTTTUUURRREEEWays in which the Rockhampton Showgrounds sector may be managed.
ORGANISATIONAL CONCEPT
Selection of Organisational Type
The base transaction to commence the business of the Central Queensland Events Centre is the acquisition of the Rockhampton Showgrounds site by the Rockhampton City Council from the Rockhampton Agricultural Society Inc. (a copy of the proposal is attached to this Report). At this point Council becomes responsible for management of the venue, and will be able to commence capital redevelopment and receive income from the rental of its facilities. It is also responsible for any outgoings associated with the foregoing. In carrying out the business as described above, in the context of selection of the organisation type, there are several potential options available including:
1. Operating the business as a division of Rockhampton City Council
2. Operating the business as a Commercialised Business Unit of Rockhampton City Council under enterprise provisions of the Local Government Act
3. Operating the business as a fully Corporatised Business or LGOC (Local Government Owned Corporation), known as a corporatised corporation44, under enterprise provisions of the Local Government Act. The only shareholder would be the Rockhampton City Council.
The selection of (3) above as a preferred option ensures that the organisation operates efficiently and autonomously, without restrictions typically applying to local government organisations, e.g. the way in which staff are remunerated. The commercial success, efficiency and effectiveness of a corporatised corporation are likely to result in the achievement of challenging financial and non-financial performance targets. In general terms, the enterprise provisions applying ensure that the organisation is competitive but without market distortion. At the same time, ultimate authority and control still vests in the Shareholder (i.e. Rockhampton City Council), yet it remains quite separate from the Council and is subject to direction of a Board of management where half of the Directors can be Councillors or Council staff. Council is able to closely and strategically monitor the business and activities of the enterprise.
44 Under S592 of the Local Government Act a “corporatised corporation” means an LGOC or a subsidiary
of an LGOC. “LGOC” (or “local government owned corporation”) means a significant business entity declared to be a local government’s LGOC by resolution of the local government that has taken effect.
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The Enterprise Provisions in the Local Government Act45
S 543 of the Local Government Act provides for ways to facilitate the implementation of the National Competition Policy Inter-Governmental Agreements to the extent that the agreements are intended to be applied to significant business activities46 of local governments. The provisions can allow either
1) commercialisation of a business activity (S571), or
2) under S584, corporatisation of a significant business activity of a local government. This includes – as proposed for the Central Queensland Events Centre - the establishment of a “significant business entity” as separate legal entity known as a Local Government Owned Corporation (LGOC). S631 states that the LGOC:
• is not a corporation registered under the Corporations Act. Under S635 the Corporations Act does not apply to corporatised corporations.
• must have a board of directors and have a share capital and issued shares.
S588 provides that key objectives of a corporatised corporation47 are to be commercially successful in the carrying on of its activities and efficient and effective in the provision of goods and delivery of its services, including services provided as community service obligations. The commercial success, efficiency and effectiveness of a corporatised corporation are to be measured against its financial and non-financial performance targets.
Whilst a corporatised corporation does not form part of a local government (in this instance the Central Queensland Events Centre would be run as a separate legal entity), under S589 local governments are allowed to provide strategic direction to the corporatised corporations48 by setting financial and non-financial performance targets and community service obligations. The costings of, funding for, or other arrangements to make adjustments relating to, the corporation’s community service obligations are to be stated in its statement of corporate intent (S678) which also outlines:
• the nature and extent of the community service obligations of the corporation
45 The Enterprise provisions are contained within the Local Government Act (1993) as amended, CHAPTER
8—NATIONAL COMPETITION REFORM OF SIGNIFICANT BUSINESS ACTIVITIES, and CHAPTER 9—CONDUCT OF COMPETITIVE BUSINESS ACTIVITIES
46 “business activity”, of a local government, is defined in the Act as an activity of the local government trading in goods and services to clients, including, for example, providing cleansing services, water and sewerage services, off-street parking and cultural, sporting and recreational facilities, but does not include the construction or maintenance of roads or State-controlled roads or library services.
47 The Act defines “Corporatisation” as a reform process for certain significant business activities of local governments that changes the conditions and the structure under which the business activities are carried on so they are acquired and carried on by separate legal entities (corporatised corporations) and, as far as practicable, on a commercial basis and in a competitive environment. It also provides for local government ownership (whether directly or through ownership of an LGOC) of the corporatised corporations operating the business activities
48 However, subject to certain provisions. under S681 a Corporatised corporation and board not generally subject to local government direction.
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• the ways in which, and the extent to which, the corporation is to be compensated by the shareholder for the community service obligations.
S590 outlines the “key principles of corporatisation” which are summarised thus:
1. Clarity of objectives. Each corporatised corporation will have clear, non-conflicting objectives with specific financial and non-financial performance targets for its commercial activities. Local governmental policy formulation or regulatory functions are kept separate. Community service obligations will be transparent, separately costed, with the corporatised corporation “appropriately compensated” for its community service obligations (performance targets will be set)
2. Management autonomy and authority. The corporatised corporation will have a board of directors appointed on merit. Their primary function is to ensure that the corporation meets its performance targets, and will be given the autonomy and authority to make commercial decisions within defined areas of responsibility. The Council’s power to make decisions on the operation of the business will be replaced with procedures for strategic monitoring, however local government reserve powers must be exercised in an open way.
3. Strict accountability for performance. The board of the corporatised corporation will be accountable (based on its statement of corporate intent) to the shareholder for the corporation’s performance. Performance will be monitored by the shareholder against performance targets –this in part compensates for the absence of the wide range of monitoring to which listed corporations are subject to (e.g. regulations related to the share market and various Commonwealth agencies)
4. Competitive neutrality. The essence of this principle are that the efficiency of overall resource use is promoted by ensuring markets are not “unnecessarily distorted”, and to ensure, wherever possible, the removal of advantages and disadvantages accruing to the corporatised corporation as a result of local government ownership. Full cost pricing usually applies49.
The business is established on the publication in the gazette of notice upon the making of the resolution by Council. The operation of the business under corporatisation differs in some ways to corporations operating in the private sector, however such provisions and restricts are in the main designed to ensure that the above principles can be maintained. These include:
• On establishment, the business entity is a body corporate, and may sue and be sued in its own corporate name.
• Council can decide which assets and liabilities can be transferred to the business entity. Whilst S617 provides some restrictions concerning this aspect, there is a good deal of flexibility in the Act allowing local government to make decisions along similar lines compared to that applying to private organisations. S714 contains reserve powers of the shareholder to direct that an asset not be disposed of (the direction must
49 The business will be subject to “full cost pricing” where prices are charged for goods and services
taking into account the full cost of providing the goods or services. Full cost pricing also includes compliance with Commonwealth, State and local government requirements that apply only if the activity were carried on by a private sector business, including, for example, requirements relating to the protection of the environment and planning and approval processes.
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be by resolution of the local government). Further, S715 provides that the LGOC’s may dispose of any of its main undertakings only with the prior approval, by resolution, of the LGOC’s local government.
• A councillor or employee of the local government who is also a director of the local government’s significant business entity is entitled as a director to remuneration and allowances payable to a director of the significant business entity50.
• Councillors are prohibited from being employees of the business entity.
• Under S 707 a corporatised corporation is not liable to pay State taxes in relation to “any matter, instrument, transaction or thing greater than the State taxes that it would have been liable to pay in relation to the matter, instrument, transaction or thing if the corporation were a local government”. This includes reference to tax imposed under an Act of another State.
• A local government is liable for the debts and other liabilities of its corporatised corporations (S709)51.
• The Payment of dividends to the Shareholder is allowed under S711. Within 4 months after the end of the financial year, the board must recommend to the shareholder that the corporation pay a stated dividend, or not pay a dividend, for the financial year. The board must consult with the shareholder before making the recommendation. The corporation’s dividend for a financial year must not exceed its profits, after provision for any income tax, and any unrealised capital gains from upwards revaluation of non-current assets. The dividend must be paid within 6 months after the end of the financial year or any further period that the shareholder allows.
Composition of the Board
The composition of the Board of Directors is well defined in S618. Whilst a councillor or local government employee may be a director of the local government’s significant business entity:
• Directors who are councillors or local government employee must not, at any time, be more than one-half of all directors
• At least one-third of directors must not be councillors or employees of local government or employees of the significant business entity. Conversely, at least one-half of the directors must not be councillors or employees of the local government or employees of the entity (S620).
• An appointment of a councillor or local government employee as director is made on the terms the local government decides
• In taking part in meetings of the board, a director who is a councillor or local government employee must act in the best interests of the significant business entity
50 S619 provides for Remuneration and allowances to directors. If the local government decides its
councillors or employees are not entitled to directors’ remuneration and allowances, those remunerations and allowances must be paid by the significant business entity to the local government.
51 This is subject to the extent that the liability is expressly and lawfully undertaken on behalf of the local government
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• A director of a corporatised corporation is to be appointed by its shareholder for a term of not more than 5 years (S744).
Functions of the Board
The role of a corporatised corporation’s board is defined under S645 of the Local Government Act. This may be summarised as:
1. Responsibility for the corporation’s commercial policy and management
2. Ensuring, as far as possible, the corporation achieves, and acts in accordance with, its statement of corporate intent / corporatisation charter
3. Accounting to the corporation’s shareholder for its performance as required by this part and other laws applying to the corporation ensuring the corporation otherwise performs its functions in a proper, effective and efficient way.
Duties, Responsibilities & Liabilities of the Board The Local Government Act, in Subdivision 17, deals extensively with the duties and liabilities of directors and other officers. Key points to note here are:
1. There must be full disclose by a Director concerning a direct or indirect interest in a matter being considered, or about to be considered, by the board with a record held in the minutes
2. Directors must act honestly in the exercise of powers, and discharge of function (S690).
3. The Director must exercise the degree of care and diligence that a reasonable person in a like position for a business operating under the Corporation law
4. A Director must not make improper use of information acquired as an officer of the corporatised corporation or otherwise gain, directly or indirectly, an advantage for himself or herself or for another person
5. A Director must not cause detriment to the corporation.
6. Under S694 the Director also has a duty to prevent insolvent trading – the corporation must be able to pay all its debts as and when they become due. Under S699 the Board must also give written notice of suspected insolvency to the corporation’s shareholder and the auditor-general. If the shareholder is satisfied that the board’s suspicion is well-founded, the shareholder must immediately give the board such written directions that the shareholder considers necessary or desirable.
7. The Director must not provide a document, make a statement or omit from a statement concerning the affairs of the corporation to another officer or the corporation’s shareholder that is known to be false or misleading in a material particular (S698).
Most of the above points carry severe penalties for contravention, including fines, imprisonment, and registration of a criminal record. Further, monetary compensation equal to the loss or damage may be recovered from the person whether or not the person has been convicted of an offence in relation to the contravention.
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In so far as indemnification is concerned, under S692 a corporatised corporation must not indemnify a person who is or has been an officer of the corporation against a liability incurred as an officer, or exempt such a person from a liability incurred as an officer. However, the corporation may indemnify a person against a civil liability (other than a liability to the corporation or a subsidiary of the corporation) unless the liability arises out of conduct involving a lack of good faith. The indemnity can only proceed with the prior approval of its shareholder. Function of the Central Queensland Events Centre CEO
Under the Local Government Act, a Corporatised corporations is to have chief executive officer (S650). The duties of chief executive officer is, under its board, to manage the corporation. Anything done in the name of, or for, a corporatised corporation by its chief executive officer is taken to have been done by the corporation (S652)
ORGANISATIONAL STRUCTURE
The organisation concept has been predicated on the basis of a “three tiered” structure, viz:
1. Venue management (This resides with council, and is the primary function of the organisation Central Queensland Events Centre)
2. Convention management (This is the responsibility of exhibition companies / event organisers. It is generally outside the scope of the Central Queensland Events Centre, although not exclusively especially where Council may desire to assist the development of new, locally generated events)
3. Marketing (Marketing of the venue – not the event – is the function of the Central Queensland Events Centre. Ideally, dedicated staff would perform this function)
Major assumption used in the development of the model are:
• All major convention / exhibition centres have their own dedicated “reps on the road”. Ideally, this would apply in the case of the Central Queensland Events Centre, however with the recent announcements concerning funding it is difficult to substantiate the cost of providing additional personnel specifically for this purpose.
• Major events are planned two years out or more. Event marketing and management is a very specialised field requiring the employment of entrepreneurs whom anticipate high rewards for high risks involved
• The business will be operated as a fully Corporatised Business or LGOC (Local Government Owned Corporation) of Rockhampton City Council
• The Venue exists on the basis of a Profit-making venture, tempered with a need to fulfil community expectations and obligations. Overall control of the venue should reside with a Board of management as follows:
� The Board should be skills based (as against representative based)
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� The Board should be relatively small – ideally, no more than 6 – 8 members
� The Board could respond to a Users Reference Group comprising major stakeholders
� The Board is subject to operation under policy and guidelines established under the enterprise powers contained in the Local Government Act (corporatisation provisions)., described in the previous section. Of particular relevance is the Board composition which:
o Will ensure that the corporation meets its performance targets
o Will be given the autonomy and authority by Council to make commercial decisions within defined areas of responsibility
o Will be made up of Directors who are councillors or local government employees, accounting for no more than one-half of all directors
o Will ensure that at least one-third of directors are not councillors or employees of local government or employees.
� The Council’s responsibilities are essentially restricted to:
o providing strategic direction
o approving composition of the Board
o approving budgets
o strategic monitoring
o approving any decisions relating to the disposal or acquisition of assets
o determining ways in which, and the extent to which, the corporation is to be compensated for its community service obligations.
The Board of management consists of 50% Council representatives, and 50% business people as follows:
• 2 x Councillors (representing the shareholders interests)
• 3 x Stakeholders (Beef Expo, Show Society, and the Mayor representing Council as a stakeholder)
• 1 x external (senior business person, providing a balanced skills base as required)
Staffing Levels are planned to be restricted to a total of three personnel:
1. Chief Executive Officer (reports to the Board)
2. Administration Assistant (reports to the CEO)
3. Secretary (reports to the CEO)
An option exists to appoint a fourth person to Manager, Marketing, however as noted above, recent announcements concerning funding makes it difficult to substantiate the cost of providing additional personnel specifically for this purpose. The Local Government Act enterprise powers provides for employment terms and superannuation for LGOC’s as follows:
• S718 provides that the terms of employment of the employees of a corporatised corporation are as determined by the corporation, subject to any relevant award or industrial agreement.
• Employees of a corporatised corporation are not employees of its local government.
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• S720 provides for employee Superannuation schemes, i.e. a corporatised corporation may establish or amend superannuation schemes, or join in establishing or amending superannuation schemes, or take part in superannuation schemes52. This may easily facilitate the transferability of superannuation by a newly appointed employee of the Central Queensland Events Centre who may be formerly an employee of Council, and visa versa.
GENERAL COMMENTS
Position Job Descriptions In view of the newly created entity that has a somewhat different charter
compared to the existing owners (Rockhampton Agricultural Society), together with the possibility of expected strong growth of the business and the changes this will bring about, the matter of job definition will require urgent attention.
Resolution of this can be largely achieved through the development of written
Job Descriptions, defining the nature, scope and job function, along with relevant authority levels. It is emphasised that a key factor in bringing about an efficiently managed organisation will be the clear definition of job functions and reporting lines. This becomes of even greater significance as employee numbers increase.
Accordingly, job descriptions will be developed for all existing and proposed positions, providing - in a written form - clear delineation of job duties / responsibilities and reporting lines. Ideally, this should be completed in conjunction with each employee.
The major features of worthwhile and meaningful job descriptions are:
• Results and duties are both stated (the result expected and the duties needed to accomplish the result)
• Accomplishment is emphasised over "doing" (employees need to first know where they are going - only then can it be explained "how you get there")
• The focus is on results (including how the job fits into the overall scheme of the organisation, and how the job fits into the organisations' mission)
• Clear writing style, with job descriptions simple and easy to understand.
• Job Descriptions must be changed when job requirements change.
• Linkage should be established where possible with QA Procedures documentation.
The following outlines the major functions of each employee:
52 However, the corporation may not establish or take part in a superannuation scheme that does not
meet the requirements of the Superannuation Industry (Supervision) Act 1993 (Cwlth).
The above salary levels are additional to Marketing Incentives for management equivalent to 1.00% of Gross Turnover for EVENT revenue, commencing 11-Apr-2002 Other assumptions used in forecasting include:
Superannuation 12.00% of Gross Salaries & Wages costs Workers Compensation 2.50% of Gross Salaries & Wages costs Employment Recruitment $1,500 one off fee at start of Project Conferences/Seminars 0.75% of Gross Salaries & Wages costs Professional Development 1.25% of Gross Salaries & Wages costs Use of Contract Labour and Enterprise Bargaining
The Central Queensland Events Centre, due to flexibility provided by the
enterprise powers under the Local Government Act, is able to utilise enterprise bargaining; from its point of view, in an effort to improve productivity (it may also have the potential to increase capacity utilisation of the venue.).
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111222... OOOPPPEEERRRAAATTTIIIOOONNNSSS AAANNNDDD MMMAAAIIINNNTTTEEENNNAAANNNCCCEEEAlternative ways in which the Rockhampton Showgrounds sector may operate and be maintained.
OPERATIONS & MAINTENANCE FUNCTIONS In this context, operations and maintenance functions may be split into two main areas, viz:
1. Buildings and Infrastructure
2. Parks & Gardens The business operations of the Central Queensland Events Centre has been dealt with in earlier sections of this Report.
LOCAL GOVERNMENT PROVISIONS
Under Section 624 of the Local Government Act, assistance to a significant business entity that is a commercialised business unit may arrange with the chief executive officer of the local government for the services of employees of the local government to be made available to it. This does not apply to corportatised organisation like the proposed Queensland Events Centre whom must, unless they are willing to directly employ persons to undertake such activities as operations and maintenance, contract out such services. Clearly, the Rockhampton City Council, who are, after all, the owners of the site, will be in a good position to tender for venue maintenance functions that may be contracted out by the Central Queensland Events Centre. Obviously such contracts may need to be tendered under competition and related provisions of the Act.
BUDGET PROVISIONS FOR MAINTENANCE
Assumptions
Assumptions used in the forecast base model are summarised thus:
Catering 1.20% of Gross Turnover for EVENTS Cleaning 0.30% of Capital Value (Fixed Assets) -
excludes specific events charged back Gate Keeping 2.00% of Gross Turnover for EVENTS Hire of Plant and Equipment 0.25% of Gross Turnover for EVENTS (nominal) Security 0.10% of Capital Value (Fixed Assets) - amount
is exclusive of event security Repairs and Maintenance 0.35% of Capital Value (Fixed Assets)
The existing historical records of the Rockhampton Agricultural Society Inc. has been used as a basis to forecast requirements, taking into account planed
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expansion of facilities and maintenance requirements for refurbished / newly constructed buildings.
Provisions
Upon completion of Stages 1 and 2, budget provision of approximately $80,000 per annum has been provided, accounting for approx. $398,300 over the 6 years 2001/02 to 2006/07, summarised as follows:
Council has volunteer workers in the Community Services areas of gardens, libraries, theatre and art gallery. There are approximately 140 people who work in a volunteer capacity in the Rockhampton Performing Arts venues and Heritage Village. The Botanic Gardens have 60 “Friends of the Gardens and Zoo” and 27 volunteers. The Library has volunteers who work on projects in the local history collection. It will be important for the Chief Executive Officer of the Queensland Events Centre to secure the services of volunteer workers to assist in maintenance functions outside the immediate scope of formally contracted services. Examples of how this might apply may be readily seen in the number of volunteers assisting the Rockhampton Agricultural Society in their efforts.
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111333... IIIMMMPPPLLLEEEMMMEEENNNTTTAAATTTIIIOOONNNWays in which the business plan may be implemented.
PRIMARY RESPONSIBILITY
Responsibility for implementing the Business Plan ultimately must rest with Council, as the site and business owners, and sole shareholders of the newly created entity Central Queensland Events Centre. A Project Manager, e.g. the existing Critical Projects Officer, could be nominated as the liaison point for Council. This person would also need to be capable of initiating the early tasks required, prior to the appointment of a Chief Executive Officer for the corporatised entity. Similarly, this person could also act as “caretaker” for the Project pending the appointment of a Board of management. The Council’s Project Manager might also be a suitable appointment for one of the proposed three Council positions on the Board (in lieu of a Councillor).
Daily implementation at an operational level should be the responsibility Chief Executive Officer whom is additionally responsible for the strongly associated tasks of implementing Board policy, in addition to having general oversight re construction and venue development, and venue maintenance, in addition to staff management and motivation. The Board provides strategic direction and policy. The Business Plan is strongly associated with these matters, and will therefore provide guidance as to how the shareholder (the Project owner, Council) would like implementation to occur. Nonetheless the Board acts autonomously from Council and in the best interest of the Project. Council, in turn, is motivated by the financial success of the venture and the meeting of community expectations and needs. Broadly speaking, there is no conflict in any of these functions. Any conflict is more likely to come from stakeholders whom have special and usually strongly vested interests. However it is suggested in this Report that two of the stakeholders are also appointed as Directors on the Board. For this reason, an alternative may be to avoid the appointment of any stakeholders to the Board in favour of other local business people with acumen and skills likely to be beneficial to the Project. Whilst this is theoretically possible, it is unlikely that such persons exist within the Rockhampton / Fitzroy community, since it is almost certain that such people will have one way or another have a vested interest in an activity being carried on at the venue at some stage. Whilst the Local Government Act provides for such conflicts of interest, there is an argument to source at least some portion of Board membership outside the community to ensure there is a better chance of impartiality. Council may therefore wish to consider:
1. Other than the three proposed Council representatives, the appointment of independent Board members outside the local community
2. The appointment of an existing Council employee as Project Manager to provide oversight. That person could liaise with the existing Project Control / Reference Groups, and may be considered for appointment to the Board itself. The Project Manager would also be the point of liaison for Council through its own Chief Executive Officer.
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3. The Chief Executive Officer of the Central Queensland Events Centre will be responsible for implementing the Business Plan at an operational, daily level, together with assistance from:
• A management consultant familiar with the intricacies of the Business Plan (funding for this may be available through the Department of State Development under the Regional Economic Development RED program, or the Queensland Industry Development Scheme QIDS). Such an appointment may considerably assist the efficiency of implementing a relatively complex document, and may also be useful in setting performance criteria for the project and meeting associated obligations under the Local Government Act.
• Technical consultants related to construction and engineering matters associated with the redevelopment of the site (provided for in the construction budget)
• Technical personnel associated with contracted services, e.g. Rockhampton City Council parks & Gardens Department.
OTHER FUNDING SOURCES / GOVERNMENT SUPPORT OF INITIATIVES Whilst the Project must stand the test of commercial viability, there are however a
number of programs available for which the Central Queensland Events Centre may be considered eligible, and these are detailed below53. Clearly, management must give appropriate priority for actively canvassing such assistance in order to enhance best prospects for success.
The following assistance measures are considered by the Consultant to be those
schemes available (considering project size, projected modus operandi, and funding requirements) to best assist the corporatised entity in achieving its objectives - considered to have greatest potential for impact on the Project’s bottom line, and where the business is most likely to meet the required eligibility criteria.
Queensland Events Regional Development Program54
The Queensland Events Corporation Pty Ltd is a government owned company that forms part of the portfolio of the Premier of Queensland. Queensland Events was established in 1989 with a specific charter to create significant economic activity and lift the national and international profile of Queensland through securing and hosting major world class events.
The Queensland Events Regional Development Program will support the development and growth of regional events and is an initiative of the State Government. It will focus on supporting events which: · increase local economic activity and development; · enhance the appeal of the destination in which they are held; and · enhance the visitor experience.
53 Note: all schemes are subject to change without notice, and accordingly the Consultant implies no
warranty as to individual scheme terms and conditions and eligibility criteria, nor warrants the organization’s ability to access funding or other support.
54 Information from this section has been sourced from various brochures and other material provided directly by Queensland Events, and the organization’s website
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Queensland Events, through a Secretariat based in Townsville, administers the scheme. The program involves a partnership with local councils and Regional Tourist Organisations, which will be involved in endorsing projects before assessment. Any financial support that the Queensland Events Regional Development Program provides will be linked to performance. Assistance from the Queensland Events Regional Development Program will be strongly linked to “making a difference to the event”. Proposals will be assessed on their demonstrated ability to meet the aims of the program: · to increase local economic activity and development; · to enhance the appeal of the destination in which they are held; and · to enhance the visitor experience. There is no upper funding limit, however, it is expected that most proposals will be funded in the vicinity of $20,000 - $25,000 (exclusive of GST). The minimum amount that can be applied for is $5,000 (exclusive of GST). The program will only be available to events held within regional Queensland. Proposals will be assessed on their demonstrated ability to meet the aims of the program, and will only be accepted from a formally constituted organisation, or any group, which has a written agreement with a formally constituted organisation to provide an auspice. Letters detailing the level of support from the local council/s and Regional Tourist Organisation must accompany each application. It is expected that all applications will have co-operative funding from sources, such as, local government, the Regional Tourist Organisation and other sponsors. This contribution should contain a cash component. In-kind support should be thoroughly costed out and be realistic. In-kind contributions should not be ambit claims. Priority will be given to applications that clearly demonstrate local government support. Regional Tourism Program The Sport & Tourism Division administers a Regional Tourism Program as part of the Federal Government’s commitment to helping regional tourism growth by providing funding for the development of tourism attractions, facilities, special interest markets, cultural and heritage attractions and supporting the use of innovative websites and secure e-commerce facilities. Funding for these projects is provided under the highly competitive $16 million Regional Tourism Program and Regional Online Tourism Program. Purpose of the Regional Tourism Programs Despite the wealth of attractions in regional areas, the majority of international visitors to Australia rarely venture for more than a day at a time beyond the borders of Australia’s large cities and major tourist gateways. This implies a need to find better ways to enhance the attractiveness of regional areas and motivate people to stay longer in regional centres.
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The Regional Tourism Program (RTP) aims to help boost the capacity of businesses and organisations to deliver higher quality tourism attractions, products and services in regional Australia. The Regional Online Tourism Program (ROTP) aims to develop geographically-based regional tourism web sites which cover a range of tourism products and services. Preference is given to proposals that incorporate, or demonstrate a firm commitment to, e-commerce for tourism products and services.
Queensland Tourism Industry Corporation (QTIC)55
QTIC is the peak industry body for tourism in Queensland, representing all sectors of tourism. QTIC provides a range of membership services and maintains industry representation in all relevant forms.
Queensland Tourism Industry Corporation (QTIC)replaces the former Queensland office of the Tourism Council of Australia. Based on its membership, QTIC will represent the interests of the tourism industry, including business operators and the Regional Tourism Organisations. As the peak body for tourism, the State's second largest industry, QTIC will provide a focal point for the tourism industry and advocate its needs to governments.
QTIC is dedicated to:
• Promoting a wider understanding of travel, tourism and events as major activities that contribute substantially to the economic and social well-being of the State;
• Uniting Queensland's tourism industry;
• Advocating policies and initiatives that are responsive to the needs of tourism and related industries with federal, state and local governments and their agencies' programs;
• Assisting in the promotion and development of quality experiences for visitors;
• Developing and presenting unified policy positions and encouraging the adoption of regional and national policies that facilitate travel for visitors;
• Promoting a profitable and professional travel and tourism industry in Queensland;
• Promoting, undertaking and disseminating research and information relating to the business of travel and tourism.
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Austrade Export Market Development Grant (EMDG) Scheme56 In this scheme, grants of 50% of eligible expenditure are provided for overseas
promotion activities (e.g. research and development of overseas markets for goods, specified services, industrial rights and know-how which are substantially of Australian origin), with the maximum grant of $250,000.
Project Marketing Loans Facility (PMLF) The facility provides interest-free loans for exporters who are pursuing
international projects or similar opportunities with significant Australian export content. The up front loans are repayable in full with a success fee payable only after the project is won. If the project is lost, then 50% of the loan is forgiven.
Department of State Development A range of programs may be available for the Project, including matters related
to Marketing and Business Planning, Human Resources, Total Quality Management, and others. Most of these programs are delivered through registered consultants available to help with the strategic planning process and the conduction of related activities.
Accelerated Internal Change Program
Under AusIndustry, DSD has developed the Accelerated Internal Change Program
which assists eligible firms to employ a person as a Project Officer to drive a specific change process identified in the organization’s Business Plan.
Assistance is available for implementation of a project in either of the following
areas:
• Human Resources (“people” related activities)
• Processes (improvements to product development or service delivery, and / or the overall manufacturing process, and / or improvements to internal business processes)
• Technology (implementation of technology such as Computer Aided Manufacturing or Design, Management Information Systems, or Activity Based Costing Systems)
Both DSD, and the Queensland Manufacturing Institute are available to assist
with the formulation of a Project. Dollar for dollar assistance is available up to a maximum of $30,000. Applicants would be expected to have a business plan or strategy document in place clearly outlining the firm’s commitment to the Enterprise Development process and identifying the priority for the proposed Project. Eligibility is generally restricted to firms having a turnover of at least $2.5m or minimum 10 employees.
Other Programs
56 Contact the Export Market Development Grants Scheme directly (GPO Box 197 Canberra ACT 2601 Ph.
06-2765490. Fax. 07-276 5522) or Austrade's Brisbane State Office. 2nd Floor. 484. Queen Street. Brisbane Qld Ph 07-33647111 Fax 07-38321529
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We have previously commented on prospects for accessing the Queensland Industry Development Scheme (QIDS) and the Regional Economic Development Program (RED), both of which are administered by the Department of State Development.
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111444... PPPRRROOOJJJEEECCCTTT SSSCCCEEEHHHDDDUUULLLEEEAnticipated key dates for completion of the Project (including construction) The Table below has been extracted from the Project schedule (including Gantt chart and month-by-month activity listings) appended to this Report. It provides key dates for completion of various activities, and is based on the estimated time frames for each activity. Key points to note are as follows:
1. It is expected that Stage 1 Construction will commence by the end of June 2002. This allows sufficient time project review and tender preparation, including the appointment of a Project Manager and Business Plan review by the reference group and Council. It also assumes acquisition of the site from the Rockhampton Agricultural Society Inc. in March 2002.
2. Stage 1 Construction will be completed by end March 2003, and with the possible exception of completion of the new cattle pavilion, all activities will be undertaken in time for the 2003 Gemboree.
3. Stage 2 Construction will commence in September 2002 (prior to the full completion of Stage 1 Construction). Stage 2 is due for completion towards the end of April 2003 which means that all activities will be completed just in time for Beef Australia 2003, provided there are no delays. It will be completed with a reasonable margin in time for Rockhampton Annual Show 2003 (June 2003).
4. Major expenditure areas and their due completion dates are provided thus:
Activity Stage 1
Expenditure
Stage 2 Expenditur
e
Total Expenditure
Expected completion
date Redevelop Walter Pierce Pavilion 667,650 1,276,050 1,943,700 13 Feb '03New Entry / Administration Building 0 1,858,725 1,858,725 13 Feb '03New Cattle Pavilion 1,200,000 0 1,200,000 27 Mar '03Acquisition of Showgrounds site 700,000 0 700,000 14 Mar '02Site works, Re-profile trade display area / Victoria Park and Landscaping
675,400 0 675,400 21 Nov '02
Amenities Buildings 327,050 327,050 654,100 24 Apr '03Cattle Yards & Seating 0 597,100 597,100 24 Apr '03Electrical Up grade 583,200 0 583,200 12 Sep '02Refurbish Robert Archer Grandstand 0 564,075 564,075 16 Jan '03Underground Services to Victoria Park & Trade Display Areas
507,900 0 507,900 5 Dec '02
Waste Treatment Plant 0 324,000 324,000 16 Jan '03
The Scheduling information relating to the above (and other activities) is further detailed below:
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Activity Date
commenced Date for
completion 1 Business Plan Completed 15 Feb '02 2 MAJOR EVENTS HELD 20 Mar '02 12 Jun '03 3 Beef Australia 2003 24 Apr '03 1 May '03 4 World Brahman Congress 10 Apr '02 17 Apr '02 5 Rockhampton Annual Show 2002 6 Jun '02 12 Jun '02 6 Rockhampton Annual Show 2003 6 Jun '03 12 Jun '03 7 Gemboree 2002 20 Mar '02 28 Mar '02 8 Gemboree 2003 20 Mar '03 28 Mar '03 9 PROJECT REVIEW AND TENDER PREPARATION 15 Feb '02 27 Jun '02 10 International Exhibition Complex Reference
Group Review 15 Feb '02 21 Feb '02
11 Rockhampton City Council Review 22 Feb '02 14 Mar '02 12 Appoint Project Manager 15 Mar '02 11 Apr '02 13 Further Engineering, Planning & Evaluation 15 Mar '02 11 Apr '02 14 Prepare Tender documents for Site works
and construction 12 Apr '02 2 May '02
15 Tenders prepared for bidding 2 May '02 2 May '02 16 Tender Period for selected bidders 3 May '02 13 Jun '02 17 Evaluate and award tender contracts 14 Jun '02 27 Jun '02 18 RCC commit and award contracts 27 Jun '02 27 Jun '02 19 Acquisition of Showgrounds site 14 Mar '02 14 Mar '02 20 Pre-construction stages completed 27 Jun '02 27 Jun '02 21 Stage 1 Construction 28 Jun '02 27 Mar '03 22 Site Survey 28 Jun '02 1 Aug '02 23 Electrical Up grade 2 Aug '02 12 Sep '02 24 Ring Main for Water Supply 2 Aug '02 5 Sep '02 25 Underground Services to Trade Display Area 13 Sep '02 7 Nov '02 26 Re-profile Trade Display Area 2 Aug '02 29 Aug '02 27 Underground Services to Victoria Park 27 Sep '02 5 Dec '02 28 Site works and Re-profiling to Victoria Park 2 Aug '02 26 Sep '02 29 Alterations to Fence to Victoria Park Tennis
Courts 6 Dec '02 2 Jan '03
30 New Cattle Pavilion 8 Nov '02 27 Mar '03 31 Amenities Buildings (Stage 1) 8 Nov '02 30 Jan '03 32 Redevelop Walter Pierce Pavilion (Stage 1) 27 Sep '02 5 Dec '02 33 Site works and Landscaping (Stage 1) 30 Aug '02 21 Nov '02 34 Stage 1 Construction completed 27 Mar '03 27 Mar '03 35 STAGE 2 CONSTRUCTION 27 Sep '02 24 Apr '03 36 Waste Treatment Plant 6 Dec '02 16 Jan '03 37 Amenities Buildings (Stage 2) 31 Jan '03 24 Apr '03 38 Redevelop Walter Pierce Pavilion (Stage 2) 6 Dec '02 13 Feb '03 39 New Entry / Administration Building 27 Sep '02 13 Feb '03 40 Refurbish Robert Archer Grandstand 8 Nov '02 16 Jan '03 41 Now Fencing to Exhibition Road 14 Feb '03 27 Mar '03 42 Demolish Stables 6 Dec '02 26 Dec '02 43 Relocate Dog Pavilion 8 Nov '02 5 Dec '02 44 Fencing to Victoria Park Site 3 Jan '03 13 Feb '03 45 Cattle Yards & Seating 28 Mar '03 24 Apr '03 46 Stage 2 Construction completed 24 Apr '03 24 Apr '03 47 PROJECT COMPLETION 24 Apr '03 24 Apr '03
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111555... FFFIIINNNAAANNNCCCIIIAAALLL AAANNNAAALLLYYYSSSIIISSSFinancial records of the Rockhampton Agricultural Society Inc for the last three years have been utilised to develop cash flow statements, including operational items and capital expenses, for three, six and nine year horizons.
OVERVIEW OF FINANCIALS: ROCKHAMPTON AGRICULTURAL SOCIETY INC
Trading Performance
The trading performance of the Rockhampton Agricultural Society has been relatively poor over recent years. Perhaps the most meaningful measurement is Net Operating Profit (Loss) Before Depreciation which has fluctuated at break even point or loss over the last three years. Net Operating Profit (Loss) Before Interest & Depreciation has been basically at break even point, with the best year’s performance being last year 2000 / 2001 (ending 31 August) where the Net Operating Profit (Loss) Before Depreciation was +$37,540, or a Net Operating Profit (Loss) Before Interest & Depreciation of $87,596. The year has seen an improved position on the balance sheet with the most outstanding item being the retirement of bank debt. This information is summarised on the table below:
INCOME & EXPENDITURE STATEMENTS
Year Ended
Year Ended
Year Ended Year Ended FOUR YEAR
AVERAGE SUMMARY 31-Aug-
2001 31-Aug-
2000 31-Aug-99 30-Aug-98 1998-2001
Source: Rockhampton Agricultural Society Financial Statements
Total Income 628,243 578,660 713,700 684,761 651,341 Total Expenditure 629,377 714,719 789,164 812,110 736,342
Net Operating Profit (Loss) (1,134) (136,058) (75,464) (127,349) (85,001)
Net Operating Profit (Loss) Before Depreciation
37,540 (95,050) (17,030) (79,967) (38,627)
Net Operating Profit (Loss) Before Interest & Depreciation
87,596 (38,940) 26,538 (38,408) 9,197
The above information is fully detailed in the appendix to this Report.
Source: Rockhampton Agricultural Society Financial Statements Total Accumulated Funds 2,059,057 2,060,190 2,196,205 2,271,669 2,146,791 Represented by: Current Assets (40,338) (58,264) 55,103 50,216 1,679 Less NET CURRENT ASSETS / (LIABILITIES)
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It may be seen that despite the improvement in liability position, this has been largely offset by a reduction in the value of major assets (depreciation) so that the net asset position has remain basically unchanged. This may be readily appreciated by the following graph:
($1)
$0
$1
$2
$3
Mill
ions
Year Ended31-Aug-2001 31-Aug-2000 31-Aug-99 30-Aug-98 1998-2001
CURRENT ASSETS CURRENT LIABILITIES PROPERTY PLANT & EQUIPMENT
NON-CURRENT LIABILITIES NET ASSETS
ROCKHAMPTON AGRICULTURAL SOCIETY INC.BALANCE SHEETS
Source: Rockhampton Agricultural Society Financial Statements
BALANCE SHEET ANALYSIS - ROCKHAMPTON AGRICULTURAL SOCIETY INC
General
• In the process of assessing the financial strength of an organisation, there are typically many calculations (primarily, ratios) used by lenders in analysing a company’s balance sheet, and profit and loss statements. There are at least ten fairly “standard” ratios from which financial performance can be assessed. These ratios (and others) been incorporated into the following analysis.
• The Analysis conducted contains latest available information for the year ending 31 August 2001 and the previous year.
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• The Analysis is for the Rockhampton Agricultural Society Inc. - it does not take account of any associated or subsidiary organisations (unless otherwise or specifically stated).
• Please refer to the attached “Balance Sheet Analysis” for actual data and calculations, including calculation of the ten (10) key financial ratios mentioned below:
Profitability
(1) Operating Profit Before Tax/Sales (-6.13%) The ratio is a basic measure of the organization’s profitability and when analysed
over a number of years gives a measure of an ability to command an adequate profit margin and to control operating costs.
Method of Calculation
(i) The profit figure used is after all expenses including depreciation and
interest but before income tax, extraordinary income and before deducting profits due to minority interests. The profit might include some non-operating and abnormal income items, and where these items are significant it is specifically commented on.
(ii) Sales:
The sales figure to be used will exclude other revenue (i.e. it is an attempt to measure profitability on each dollar of sales revenue).
(2) Operating Profit After Tax/Shareholders Funds (-1.65%)
This ratio is the most widely used measure of corporate performance and
indicates the organization’s ability to give an adequate return to shareholders (or the “owners” of the business. It has the advantage of providing some generally accepted benchmarks for performance (e.g. returns in excess of 15% are considered very attractive)
Method of Calculation
(i) The profit figure to be used is after deducting tax and dividends on
redeemable preference shares (which should be included as part of interest expense) but before deducting extraordinary items.
(ii) The shareholders funds figure is year end shareholders funds, which includes
intangible assets.
Comments on Profitability
1. There has been an overall significant increase in profitability over the last year, with Earnings Before Interest & Tax (EBIT) coming from -$79,948 in 2999/2000, to + $16,032 in the y/e 31 August 2001. Since gross income decreased during this period by approx. 4%, the primary reason for this
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would appear to be controlling of costs, but primarily, the receiving of grant funds increased EBIT
2. Operating or Net Profit Before Tax is negative in 1999/2000 (-$136,058), compared to -$34,024 in 2000/2001. “Extraordinary items” were sufficient to cover this deficit.
3. Return to Shareholders (either on shareholders funds, or assets employed) is therefore poor.
Cost Structure
1. Wages appear moderate in relation to turnover and / or costs.
2. Total Expenses are moderate in relation to earnings. Again, one must conclude that this is substantially due to the cost of wages (comments previous), although there are indications of cost increases in some areas.
3. The above comment must be tempered by virtue of the fact that expenses overall are decreasing as a proportion of total income.
Capital Structure & Debt Servicing
(3) Retained Earnings/Total Assets (-0.5%%) This ratio measures the level of profits ploughed back into the business each
financial period. Investors and financiers generally like to see some of the profits ploughed back into the business to assist in the funding of future growth.
Successful and well managed companies usually retain profits equivalent to at
least 2% of total assets. Organisations (like the RAC under analysis) whose annual retained earnings are consistently below this figure or which fluctuate either side, represent a higher risk than companies that consistently achieve a 2% benchmark or better.
Method of Calculation
(i) Retained earnings is the unappropriated profit for the financial period after
payment of all dividends and includes extraordinary items. (ii) Total assets includes intangible assets.
(4) Interest Cover (0.32times) This is a very important ratio because it reveals the company's ability to service
interest and other financing obligations from profits. It gives a quick indication of what variation in profits or interest expenses can be sustained before debt service is threatened.
In this case, the financials indicate serious debt financing problems.
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Earnings before interest and tax Interest Cover = ----------------------------------------------------------------- Interest expenses + other financing expenses
(i) Earnings before interest and tax is calculated from operating profit before
Total Financial Debt = Total Liabilities minus trade and sundry creditors and provisions
(6) Surplus/Total Tangible Assets (81.98%) This is the basic gearing ratio to be used and shows the proportion of total
tangible assets financed by the shareholders of the company. The ratio is designed to reveal an over-reliance on external sources of funds. It also indicates what level of diminution can be suffered in asset values before creditors and lenders would be exposed to losses in a liquidation.
Method of Calculation
(i) Surplus includes:
• all capital and reserves relating to ordinary shares • non-redeemable preference shares and perpetual subordinated
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(ii) minority interests in subsidiaries providing it represents permanent capital
in the subsidiaries and not redeemable preference shares (iii) Shareholders funds will be reduced by any intangible assets such as
goodwill, patents, trademarks, future income tax benefit, etc.. (iv) Total assets are also reduced by the same intangible items listed above.
(7) Short Term Debt / Total Financial Debt (11.43%)
One important aspect of the capital structure is the extent to which an
organisation is reliant on short term debt particularly where it is being used to fund permanent requirements. An over-reliance on short term debt can reveal poor financial management or a general unwillingness of lenders to make longer term commitments to the company.
Method of Calculation
Total Financial Debt is defined to include all financial liabilities on which interest
payments or quasi-interest payments are due. Short term debt will include overdrafts, other loans, convertible notes and finance leases due within the next twelve months. Total Financial Debt will similarly include all financial obligations.
Based on our calculations, total financial debt equals total liabilities minus trade
and sundry creditors and provisions
Comments on Capital Structure & Debt Servicing
1. Debt servicing ability is improving along with increased net earnings. This represents a moderate risk factor.
2. Interest cover is unsound, with negative retained earnings. Cash flow was also unsound during 1999/2001.
Liquidity / Working Capital
(8) Current Ratio (-66.54%) The current ratio is a long established measure of the organization’s ability to
meet its short term obligations. It is based on the concept that current assets (largely debtors and stock) can be used to liquidate short term liabilities as they fall due. The ratio has been less widely used as the predominant effort of many companies is on reducing the current assets (and hence reducing the current ratio).
The ratio does highlight changes in the liquidity structure over time, which may be
perfectly justified, but should be addressed.
Method of Calculation
Current Assets Current Ratio = ------------------------
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Current Liabilities If this ratio is improving then it is cross-checked against Days' Receivables and
Days' Inventory to verify the improvement.
(9) Days Receivables (7 Days) This ratio measures the effectiveness of management in collecting trade
debtors and in minimising investment in trade debtors. The average number of days receivables should reflect the selling terms being offered by the company, however allowance must be made for the portion of sales made for cash.
Method of Calculation
Trade Debtors Days Receivables = ----------------------- (Sales / 365 )
(i) Trade debtors will be the year-end trade debtors and will exclude other
debtors and prepayments not related to the trading activity of the company.
Trade debtors will be after deducting provision for doubtful debts. (ii) Sales will exclude other revenue (i.e. not related to sales)
(10) Days Inventory (2 Days)
Days inventory measures the effectiveness of the company in turning over stock
quickly, minimising investment in stock and reducing the risk of obsolete stock.
Method of Calculation
Stock Days Inventory = ---------------- Sales / 365
While the ratio roughly approximates to the number of days of sales to exhaust
the company's stock, it does understate the number of days that would be required. This is because stock is in the books at cost, where the sales number includes a profit margin. To calculate the ratio correctly, it would be necessary to know the cost of goods sold in each year, which is usually not available.
(i) Stock, is the year end trading stock figure, after deduction of any
provision for obsolescence. (ii) Sales excludes other revenue.
In this instance, the figure is largely irrelevant since the RAC basically does not carry stock.
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1. Liquidity (ability to meet short term obligations) has clearly been a major issue for the organisation over the last few years. The organisation now has, on the face of it, insufficient working capital to meet immediate needs. The position is somewhat precarious. The incurring of a significant bad or doubtful debt, and / or the acquisition of an unwise capital item / investment has real potential to place the organisation in some jeopardy.
Conclusions
1. The Rockhampton Agricultural Society has moderately improved in its overall financial performance compared to the previous several years performance.
2. Careful attention to cash flow planning and performance monitoring is indicated.
THE STAGED CONSTRUCTION PROGRAM
The Staged construction program is split, for convenience, into two stages as follows:
Expenditure Commencement CompletionStage 1 $4.8m 28 June 2002 27 March 2003Stage 2 $5.2m 27 September 2002 24 April 2003Total $10.0m
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(48.0%)
(52.0%)
Stage 1
Stage 2
CENTRAL QUEENSLAND EVENTS CENTRESUMMARY OF STAGED CONSRUCTION PROGRAM
Revised Conceptual Budgets Based on Preliminary Sketch Plans
MAJOR CAPITAL EXPENDITURE ITEMS
Major capital expenditure items are detailed in the table below, accounting for the total $10m budget. The activity code (left hand column) correlates to the activity as listed in the Master Plan (Final Revision) as attached to this Report.
CENTRAL QUEENSLAND EVENTS CENTRE - SUMMARY OF STAGED CONSRUCTION PROGRAM (MASTER PLAN - FINAL REVISION) Revised Conceptual Budgets Based on Preliminary Sketch Plans Activity Code
Activity Stage 1 Expense
Stage 2 Expense
Total Expense
3 Electrical Up grade 583,200 583,2004 Ring Main for Water Supply 122,800 122,8005,7 Underground Services to Victoria
Park & Trade Display Areas 507,900 507,900
10 New Cattle Pavilion 1,200,000 1,200,00011,16 Amenities Buildings 327,050 327,050 654,10012,17 Redevelop Walter Pierce Pavilion 667,650 1,276,050 1,943,7002,6,8,13 Site works, Re-profile trade display
area / Victoria Park and Landscaping
675,400 675,400
28 Acquisition of Showgrounds site 700,000 700,00015 Waste Treatment Plant 324,000 324,00018 New Entry / Administration
Demolish Stables, Relocate Dog PavilionRing Main for Water Supply
Stage 1
Stage 2
CENTRAL QUEENSLAND EVENTS CENTRERevised Conceptual Budgets Based on Preliminary Sketch Plans
SUMMARY OF STAGED CONSRUCTION PROGRAM
MAJOR ASSUMPTIONS USED IN FORWARD FINANCIAL PLANNING
Primary Assumptions Item Assumption Cash at Bank (opening) $0 Working Capital (initial provision) $0 Overdraft Interest Rate p.a. 8.00% per annum Bank Loan Interest Rate p.a. 8.50% per annum Hire Purchase Interest rate p.a. 14.00% per annum Leasing Interest Rate p.a. 12.00% per annum Company Tax rate: 49.00% Average depreciation rate 2.50% per annum Depreciable Capital Asset Value $600,000 at commencement
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Item Assumption Audit Fees 1.00% of Gross Receipts, but capped at
$7,000 per annum Bank Charges 0.50% of Gross Receipts, but capped at
$500 per month Electricity & Power 5.00% of Gross Revenues - excludes charge
back for specific events Entertainment 0.75% of Gross Revenues Fuel & Oil 0.50% of Gross Revenues Insurance 1.00% of Capital Value (Fixed Assets) Legal Expenses 0.25% of Gross Revenues Licences Fees Permits Subs $1,500 per annum Motor Vehicle Expenses 0.50% of Gross Revenues Postage 0.35% of Gross Revenues Consultants 1.00% of Gross Revenues Marketing / Promotion / Advertising 2.50% of Gross Revenues, plus initial
provision of $12,000 Research & Development 0.20% of Gross Turnover for EVENTS
(nominal) Freight (includes couriers) 0.30% of Gross Revenues Printing & Stationery 0.75% of Gross Revenues, plus initial
provision of $3,000 Salaries see table in previous section of ReportRates 0.25% of Capital Value (Fixed Assets), paid
quarterly Sign Writing 0.20% of Gross Revenues, plus a % of
Capital Value@ 0.0250% of Capital Value (Fixed Assets)
Computer Expenses 0.15% of Gross Revenues Telephone 3.00% of Gross Revenues Travelling & Accommodation 0.75% of Gross Revenues Sponsorships 20.00% Sponsorship Income Sundry & Miscellaneous 0.50% of Gross Revenues HIRE PURCHASE Nil LEASING see table below LOAN REPAYMENTS Nil CAPITAL EXPENDITURE (Grant) see separate schedule (previous) CAPITAL EXPENDITURE (Other) Nil LEASING assume all are ongoing commitments with replacement due at end of period Item Value $ Period
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PROFIT & LOSS / CASH FLOW STATEMENTS
The forecast profit & loss / cash flow statements are provided on a monthly basis over the next 6 years as an appendix to this Report. For clarity, the information is summarised on the table below:
CENTRAL QUEENSLAND EVENTS CENTRE 6 Year Forecast
TOTAL Year 1
TOTAL Year 2
TOTAL Year 3
TOTAL Year 4
TOTAL Year 5
TOTAL Year 6
TOTAL 6 Years
TRADING RESULTS SUMMARY
2001/2002 2002/2003 2003/2004 2004/2005 2005/2006 2006/2007 6 Years
EBIT Before Depreciation 55,749 (21,467) (17,807) 50,360 164,577 141,419 372,831 Whilst EBIT (Earnings Before Interest & Tax) normally provides one of the best guidelines for indicating profitability of a venture, in this case we would suggest using EBIT Before Depreciation as an appropriate performance measurement since the large capital costs over the initial period of the Project are partially written off “above the line” as depreciation. Based on the assumptions provided, EBIT Before Depreciation is positive each year except for Years 2 and 3 (the primary construction period, and the period where business development activity has yet to yield results). Year In Year Out (YIYO), the Project indicates a EBIT Before Depreciation of around $140,000 to $160,000 annually, representing a modest level of profitability being achievable longer term, again based on the assumptions indicated previously. The trading position (see summary graph below) indicates that it is critical that assumptions for major events (pricing, timing, frequency and start up periods, etc.) are achieved (covered under the section of this Report: ACTIVITIES SCHEDULE, sub-section FORECASTS FOR EVENT PLANNING AT ROCKHAMPTON – ASSUMPTIONS). Unless the level of planned business development is achieved it is likely that a sustained funding amount of up to $100,000 (approximately) will be
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required every year to cover losses. This aspect becomes even more obvious when the results of sensitivities (covered later in this Report) are considered.
Total Sales / Turnover EBIT (Earnings Before Interest & Tax)
EBIT Before Depreciation
CENTRAL QUEENSLAND EVENTS CENTRETRADING RESULTS SUMMARY
6 Year Forecast
The source of income is shown (summarised) in the table below. Clearly, the two most important sources of income to be derived are from leased commercial space, and major event venue rentals (the latter which includes Beef Expo). The data suggests that total revenues of approximately $700,000 per annum may be sustainable in the longer term (YIYO):
CENTRAL QUEENSLAND EVENTS CENTRE 6 Year Forecast
TOTAL Year 1
TOTAL Year 2
TOTAL Year 3
TOTAL Year 4
TOTAL Year 5
TOTAL Year 6
TOTAL 6 Years
TRADING RESULTS SUMMARY
2001/2002 2002/2003 2003/2004 2004/2005 2005/2006 2006/2007 6 Years
Cash at Bank (Commence) $0 55,749 8,205 (13,570) 34,098 198,674 0Sales/Turnover
Total Expenses (ex Interest) 816,970 9,766,593 525,725 535,944 572,903 559,161 12,777,297Interest Expense 0 4,053 3,969 2,691 0 0 10,714
TOTAL EXPENSES 816,970 9,770,646 529,694 538,636 572,903 559,161 12,788,011
Net Income 55,749 (47,544) (21,775) 47,668 164,577 141,419 340,094
Closing Bank Balance 55,749 8,205 (13,570) 34,098 198,674 340,094 340,094
The cash flow indicates that the business may need assistance up to approximately $100,000 peaking in the middle of 2003, however a similar level of assistance may be required on a fluctuating basis during gear up to the YIYO position reached by Year 5 where the cash flow remains positive throughout the year. Reference should be made to the following diagram:
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($200)
($100)
$0
$100
$200
$300
$400
Tho
usan
ds
Month / Year
Clo
sing
Ban
k B
alan
ce
Mar-2002Jul-2002
Nov-2002Mar-2003
Jul-2003Nov-2003
Mar-2004Jul-2004
Nov-2004Mar-2005
Jul-2005Nov-2005
Mar-2006Jul-2006
Nov-2006Mar-2007
CENTRAL QUEENSLAND EVENTS CENTRE6 Year Forecast
Closing Bank Balance
SENSITIVITY ANALYSIS
Various sensitivity analysis on the "base Model" cash flow have been conducted with the results shown on the following pages. They have been based on sensitivity to:
1. Rental space income ($ per square metre achieved)
2. Bar Sales revenue
3. Venue Price (revenue received $ / day) for hosting major events
4. Number of New Additional Annual major Events hosted
5. Depreciation Charge
6. Rental / Lease Space Available (total square metres) In each case the comparisons of EBIT Before Depreciation have been used as the relevant performance “yardstick” The results indicate significant sensitivity of the Company's cash flow to (priority order):
• Venue Price (revenue received) for hosting major events
• Number of New Additional Annual major Events hosted
• Rental space income, and Rental / Lease Space Available SENSITIVITY ANALYSIS
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FUNDING REQUIREMENTS In consideration of funding options or assistance available, the Consultant
assumes a base premise that the Project must be commercially viable without a demonstrated need for propping up by Government or other 'artificial' assistance measures.
Overall Funding Requirements
The cash flow demonstrates that the business will be able to survive on the basis
that an amount of up to $100,000 be made available to cover fluctuating cash flow requirements for the first three years of the Project’s development. This could be made available either through bank overdraft borrowings (presumably secured by the Project’s assets), or alternatively loan from Rockhampton City Council.
Commencing 2005/06, there will be no requirement to fund this amount (the Project becomes self-funding)
It is emphasised that up to an additional $100,000 will be required annually if new business levels are not gained (also, refer Section 13. IMPLEMENTATION for a discussion on ways in which the business plan may be implemented.)
REPORTING REQUIREMENTS
Prudent management of the business will require formal monthly reporting to the Board of management in respect of both operations and financial analysis (including actual / budget comparisons). Quarterly, if not monthly, reporting of financials, will be required in respect of GST.
In any event, under 547 of the Local Government Act an Annual review of business activities is required. As soon as practicable after its budget meeting for a financial year, a local government must, for the financial year, identify the business activities of the Central Queensland Events Centre.
Budget provision for auditing and accounting functions, in order to support such preparation, have been provided.
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111666... EEECCCOOONNNOOOMMMIIICCC IIIMMMPPPAAACCCTTTIncludes estimates of the economic impact and job creation for Rockhampton.
** THIS SECTION TO BE COMPLETED **
Upon acceptance of this final Draft Report, and following agreement on the assumptions made in financial forecasts and personnel to be employed, the Consultant will be in a position to determine full economic impact. This matter will be discussed with the Project’s proponents, however economic impact will include generally accepted spending multipliers.
It should be noted that much of the data and material presented in this preliminary draft Business Plan, including financial data, has been sourced from Council records and advice. Our report is prepared on the basis that full disclosure of all information and facts which may affect our report and / or advice has been made, and therefore the Consultant cannot accept any liability or responsibility whatsoever for the report and / or any advice contained therein unless such full disclosure has been made.
In accordance with the normal practice of Global Solutions 4 Pty Ltd, I confirm
that this report is confidential to, and solely for use of the Rockhampton City Council, subject to its provision to the International Exhibition Complex Reference Group (as instructed). No responsibility is accepted to any third party who relies on the whole or any part of our report.
Finally, neither the whole of the report nor any part or reference thereto, may be
published in any document, statement or circular nor in any communication with third parties without the prior authorisation and written approval by Global Solutions 4 Pty Ltd of the form and context in which it will appear.
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22. Les Green Executive Director, Institute of Business Leaders
23. Garry Donovan National Engineering Manager, Global Pacific Pty Ltd (Brisbane)
24. Paul Watson Chairman, Regional Management Committee, Corporate Services & Infrastructure Centre – South Queensland, Department of Defence
25. Members International Exhibition Complex Reference Group
26. Steve Parley Chairman, Brothers Leagues Club
27. Wal Taylor Community Informatics Research, Central Queensland University (Rockhampton)
28. Jan Bimrose Director, Tourism Development, Tourism Queensland (Brisbane)
29. Kevin Liepins Destination Developer, Tourism Development, Tourism Queensland (Brisbane)
30. Graeme W. Acton Chairman, Beef Australia 2003, Australian Beef Cattle Exposition Assoc. Inc.
31. Michael Doblo Rockhampton Speedway
32. Stephen Doblo Rockhampton Speedway
33. Helen Truscott President, Rockhampton Horticultural Society
34. Sandra Thompkins Secretary, Zone 27 Pony Club
35. David Kelly Sports & Recreation Co-ordinator, Rockhampton City Council
36. Jane Morgan General Manager, Capricorn Tourism (Rockhampton)
37. Vince Mawn Head of Department, Rockhampton State High School
38. John Allison Principal, Rockhampton State High School
39. Councillors Rockhampton City Council
This Report has been prepared with material derived or referenced from the
following sources (due acknowledgement is hereby given):
1. Rockhampton City Council, Rockhampton City Council Corporate Plan 1999 – 2002, June 1999.
2. Department of Premier & Cabinet / Project Services, Rockhampton Exhibition Complex – Facilities Workshop Report, 10 February 2000 (Queensland Government)
3. Department of Premier & Cabinet / Project Services, Rockhampton Exhibition Complex – Master Plan / Concept Plans, 17 May 2001 (Queensland Government)
4. Australian Beef Cattle Exposition Assoc. Inc., Beef Expo 2000 (9-16 April), Event Summary, June 2000.
5. The Rockhampton & District Promotion and Development Association Inc., Business & Information Guide, Dayton G, Houston K., Central University Library, 1998
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6. Rockhampton & District (undated brochure)
7. Rockhampton City Council, 2001 Community Services Directory, June 2001
8. Rockhampton City Council, Rockhampton – A Profile of the Capital of Central Queensland (undated brochure)
9. Rockhampton City Council, Statement of Proposals: Rockhampton City Plan, September 2000
10. Rockhampton City Council, Rockhampton City Council Annual Report 1999 – 2000
11. SKM Economics,, Rockhampton Convention Centre Feasibility Study April 1998, Rockhampton City Council
12. Centre for Regional Development, Deakin University (in conjunction with Greg F Walsh & Associates Pty Ltd), South West Horse Industry Study (Development of a Strategy for Growth), November 1997.
13. Gannon and Gannon Pty Ltd (in association with the Rockhampton District Saleyards Board), Business Plan: Gracemere International Centre – Development Projects & Management 2001 – 2005 and 2005 – 2011, June 2001
14. Encounter Promotions Pty Ltd (in association with Corporate Context Pty Ltd & Ernst & Young), Concept & Feasibility Study: Rockhampton Signature Event “A Special Event for Rocky” (October 1998).
15. Clouston (Landscape Architects * Urban Designers * Landscape Planners), Rockhampton Open Space and Recreation Plan, Report prepared for the Rockhampton City Council, December 1997.
16. Queensland Events Corporation, Queensland Events Regional Development Program, Queensland Government (undated brochure).
17. Bureau of Tourism Research, Measuring MICE (Meetings, Incentives, Conventions and Exhibitions) Industry Infrastructure, Report to the Tourism Forecasting Council (Research Report No. 1), February 1998
18. Australian Bureau of Statistics, Tourist Accommodation Small Area Data (Queensland), June Quarter 2001, ABS Catalogue No. 8635.3.40.001
19. Australian Bureau of Statistics, 1996 Census of Population and Housing, Australia in Profile - A Regional Analysis, ABS Catalogue No. 2032.0 (ISBN 0 642 25669 1)
20. Australian Bureau of Statistics, Regional Statistics (Queensland) ABS Catalogue No. 1362.3
21. Australian Bureau of Statistics, Overseas Arrivals & Departures June 1996, ABS Catalogue No. 3401.0
22. Queensland Treasury, Queensland – An Economic Perspective, July 1991 (Queensland Government Publication)
23. Australian Bureau of Statistics, Directory of Tourism Statistics (1991) ABS Catalogue No. 1130.0
24. Australian Bureau of Statistics, Tourism Indicators (Australia) – December Quarter 1995 ABS Catalogue No. 8634.0
25. Department of State Development, Projects Queensland Australia, 2000-2001
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26. Australian Bureau of Statistics, Population By Age and Sex (Queensland) ABS Catalogue No. 3235.2
27. Australian Bureau of Statistics, 2001 Queensland Year Book: Number 58, ABS Catalogue No. 1301.3, Commonwealth of Australia 2001
28. Australian Bureau of Statistics, 2001 Year Book Australia on CD-ROM : ISSN 0312-4746 Commonwealth of Australia 2001
29. Australian Bureau of Statistics, Year Book Australia 1999, ABS Catalogue No. 1301.0.30.001, Commonwealth of Australia 1999.
30. Australian Bureau of Statistics, Year Book Australia 1998, ABS Catalogue No. 1301.0.30.001, Commonwealth of Australia 1998.
31. Australian Bureau of Statistics, Year Book Australia 1996, ABS Catalogue No. 1301.0.30.001, Commonwealth of Australia 1996.
32. Australian Bureau of Statistics, Year Book Australia 1995, Commonwealth of Australia 1995.
33. Pender, A., Transforming Government Business Enterprises, Water, March / April 1995
34. The State of Queensland (Queensland Treasury): NCP Help, Queensland Government Version 1 (Electronic), NCP Unit, May 1996 (Implemented by GoWrite [Yenlo Pty Ltd]
35. de Chastel, Brett57: Implications of the Local Government Act 1993 - Contracting and Enterprise Powers, QELA Seminar, 5 December 1994.
36. Project Queensland Australia, Issue No. 17 (1997/98), Department of Tourism, Small Business & Industry.
37. Project Queensland Australia, Issue No. 18 (1998/99), Department of State Development.
38. Projects Queensland 2001, Department of State Development, 2001.
39. Office of Economic & Statistical Research, Visitor Expenditure in Regional Queensland 1985 to 1989, Queensland Treasury (September 2001).
40. Colwell J, Rockhampton City – Social Profile Draft Supplement 2000, Rockhampton City Council, November 2000.
41. Stratcorp Consulting, Rockhampton Regional Facilities Strategy (Prepared for Rockhampton Enterprises Limited), October 2000.
42. Queensland Department of State Development, State Infrastructure Plan, State Infrastructure Plan Taskforce, October 2001.
43. Queensland Department of State Development, State Infrastructure Plan - Strategic Directions 2001 Paper - Part C of Strategic Directions 2001 (Central Region), State Infrastructure Plan Taskforce, October 2001.
44. Local Government Act 1993 Queensland (as amended)
45. Local Government Finance Standard, 1994 (Queensland)
46. Capricorn Tourism, Rockhampton & Capricorn Coast - What to See & Do, October 2001.
47. Capricorn Tourism, Central Highlands & Rural Hinterland - What to See & Do, October 2001.
57 Brett de Chastel is the City Solicitor for Ipswich City Council
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48. Cope, H (Senior Project Manager, Project Services), Various Notes from Meetings Held with Exhibition Complex Stakeholders (unpublished Internal Memorandums), 2001, Queensland Government – Department of Public Works
49. http://www.iacvb.org/ International Association of Convention and Visitors Bureaux (IACVB), Various data on Convention and Visitors Bureaux (IACVB),
50. http://www.specialevents.com.au/ International Special Events Society (ISES) Australia, Event Listings & Other Information
51. http://www.go-events.com.au/ Brisbane Marketing (Integrated marketing authority for Brisbane, encompassing the Brisbane Convention & Visitors Bureau Pty Ltd), tourism, festivals, events and retail)
52. http://www.cairnsconvention.com.au/ Cairns Convention Centre (various information related to Cairns Convention Centre)
53. http://www.sd.qld.gov.au/index.html Department of State Development (Queensland) (Doing Business in Rockhampton, and other features)
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ORIGINAL CONCEPTUAL BUDGETS BASED ON PRELIMINARY SKETCH PLANS (PROJECT SERVICES, MAY 17, 2001)
Stage 1
1 Gracemere Exhibition Centre 3,000,0002 Site Survey 26,0003 Electrical Lip grade 777,6004 Ring Main for Water Supply 122,8005 Underground Services to Trade Display Area 316,5006 Reprofile Trade Display Area 10,6007 Underground Services to Victoria Park 191,4008 Site works and Reprofiling to Victoria Park 500,0009 Alterations to Fe@ to Victoria Park Tennis Courts 16,00010 New Cattle Pavilion 2,400,00011 Amenities Buildings 654,10012 Redevelop Walter Pierce Pavilion 1,207,40013 Site works and Landscaping 777,600 Stage 1 Total $10,000,000
Stage 2
14 Gracemere Exhibition Centre 636,60015 Waste Treatment Plant 324,00016 Amenities Buildings 654,10017 Redevelop Walter Pierce Pavilion 1,701,40018 New Entry /Administration Building 2,478,30019 Refurbish Robert Archer Grandstand 752,10020 Now Fencing to Exhibition Road 80,40021 Demolish Stables 50,00022 Relocate Dog Pavilion 100,00023 Demolish Hideaway Bar and Relocate Facilities 250,00024 Refurbish Primac Pavilion & McCamley Meat Hall Pavilion 200,00025 Demolish older Section of James Lawrence Pavilion 200,00026 Fencing to Victoria Park Site 47,60027 Cattle Yards & Seating 1,000,000 Stage 2 Total $8,474,500 Total (Stage 1 & Stage 2) $18,474,500
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Stages 1 & 2 — Summary Original Conceptual Budgets Based on Preliminary Sketch Plans Total Stages 1 & 2
Item No.
Item Stage 1 Stage 2 Total Stages 1
& 2 1 14 Gracemere Exhibition Centre 3,000,000 636,600 3,636,60017 12 Redevelop Walter Pierce Pavilion 1,207,400 1,701,400 2,908,80018 New Entry / Administration Building 0 2,478,300 2,478,30010 New Cattle Pavilion 2,400,000 0 2,400,00011 16 Amenities Buildings 654,100 654,100 1,308,20027 Cattle Yards & Seating 0 1,000,000 1,000,00023 25 21 22 Demolish Hideaway Bar and Relocate
Facilities; Demolish older section of James Lawrence pavilion; Demolish Stables; Relocate Dog Pavilion
0 600,000 600,000
13 6 8 Site works, Landscaping and Re-profiling to Victoria Park & Trade Display Area
1,288,200 0 1,288,200
3 Electrical Up grade 777,600 0 777,60019 Refurbish Robert Archer Grandstand 0 752,100 752,10015 Waste Treatment Plant 0 324,000 324,0005 Underground Services to Trade Display
Area 316,500 0 316,500
20 26 9 New Fencing to Exhibition Road & Victoria Park Site; Alterations to Fence to Victoria Park Tennis Courts
16,000 128,000 144,000
24 Refurbish Primac Pavilion & McCamley Meat Hall Pavilion
0 200,000 200,000
7 Underground Services to Victoria Park 191,400 0 191,4004 Ring Main for Water Supply 122,800 0 122,8002 Site Survey 26,000 0 26,000 TOTAL 10,000,000 8,474,500 18,474,500
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FINAL REVISED CONCEPTUAL BUDGETS (BASED ON PROJECT SERVICES PRELIMINARY SKETCH PLANS / DATA & OTHER MATERIAL)
Stage 1
2 Site Survey 26,0003 Electrical Up grade 583,2004 Ring Main for Water Supply 122,8005 Underground Services to Trade Display Area 316,5006 Re-profile Trade Display Area 10,6007 Underground Services to Victoria Park 191,4008 Site works and Re-profiling to Victoria Park 250,0009 Alterations to Fence to Victoria Park Tennis Courts 16,00010 New Cattle Pavilion 1,200,00011 Amenities Buildings 327,05012 Redevelop Walter Pierce Pavilion 667,65013 Site works and Landscaping 388,80028 Acquisition of Showgrounds site 700,000 Total Stage 1 $4,800,000
Stage 2
15 Waste Treatment Plant 324,00016 Amenities Buildings 327,05017 Redevelop Walter Pierce Pavilion 1,276,05018 New Entry / Administration Building 1,858,72519 Refurbish Robert Archer Grandstand 564,07520 Now Fencing to Exhibition Road 80,40021 Demolish Stables 50,00022 Relocate Dog Pavilion 75,00026 Fencing to Victoria Park Site 47,60027 Cattle Yards & Seating 597,100 Total Stage 1 $5,200,000 TOTAL Stages 1 and 2 $10,000,000
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TOURISM REGIONS IN QUEENSLAND, INCLUDING FITZROY
Source: Australian Bureau of Statistics, Tourist Accommodation Small Area Data (Queensland) June Quarter 2001, ABS Catalogue No. 8635.3.40.001, Commonwealth of Australia 1998
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MAJOR PROJECTS — FITZROY / ROCKHAMPTON REGION
Extracted from: Project Queensland Australia, Issue No. 17 (1997/98), Department of Tourism, Small Business & Industry; Project Queensland Australia, Issue No. 18 (1998/99), Department of State Development; and Projects Queensland 2001, Department of State Development, 2001.
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MEDIA RELEASES / NEWSPAPER CLIPPINGS
MEDIA RELEASE
JOHN ANDERSON DEPUTY PRIME MINISTER MINISTER FOR TRANSPORT AND REGIONAL SERVICES LEADER OF THE NATIONAL PARTY
Support for Rockhampton’s Livestock Showcase Facility
A196/2001 16 October 2001 A Livestock Showcase Facility to provide a state-of-the-art venue for display and marketing of livestock at Beef Expo 2003 will be assisted by a $3.5 million grant from a re-elected Federal Liberal-National Government, the Leader of the National Party and Deputy Prime Minister, John Anderson, announced today in Rockhampton. “This facility would be a premier resource in support of Beef 2003 and similar expositions in Rockhampton,” Mr Anderson said. “Rockhampton is the beef capital of Australia and the Livestock Showcase Facility will enhance this reputation. “I have been told by the President of the Rockhampton District Saleyards Board, Bruce McCamley, that the current complex at Gracemere is currently the largest stud stock selling centre in Australia, and perhaps the Southern Hemisphere.” Mr Anderson said that Gracemere drew national and international investors and visitors to Rockhampton and Queensland through its consistent records of performance in stud livestock exchange. Mr Anderson said that the Board was careful to stress that some saleyards in Queensland have larger cattle throughput numbers for prime and store cattle than Gracemere, but did not participate as a significant stud venue. Beyond the beef expositions, Mr Anderson said that the facility would have an active sales and rural tourism calendar. It would promote greater awareness of breeder’s pursuit of excellence, opportunities for industry education and skill development, high technology communication to national and international markets, and education centres. Mr Anderson said that the facility was a project with strong support of the community, local governments and the Australian Beef Cattle Expositions Association. “John Lever, the National Party Candidate for Capricornia, has been a strong advocate of this project.” Media contacts: Paul Chamberlin 02 62777680 Robyn Bain (travelling with Mr Anderson) 0408 027839
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MEDIA RELEASE
JOHN ANDERSON DEPUTY PRIME MINISTER MINISTER FOR TRANSPORT AND REGIONAL SERVICES LEADER OF THE NATIONAL PARTY
Anderson Commits Government to Partnership in Beef 2003
A re-elected National/Liberal Coalition will provide $2.2 m for the popular Beef Expo 2003 and become a Foundation Partner in the event, National Party Leader and Deputy Prime Minister John Anderson, announced today. Mr Anderson said the Federal Coalition was a partner with the Australian Beef Cattle Exposition Association Inc. (ABCEAI) for the very successful Beef 2000. “Beef 2000 was a magnificent event for Rockhampton, Queensland and the beef industry and am very pleased to commit a National Coalition Government be a Foundation Partner for Beef 2003,” Mr Anderson said. “The Federal funding will assist in promoting the country’s achievements in trade and export development, technology transfer, communication and information technologies. It also highlights opportunities for women across the industry and the future of the nation’s young people in the beef industry as well as associated industries. “It is a world class event which showcases the beef industry in all its facets in the national and international arenas.” The Exposition’s core events will be the exhibition of the best of the national live cattle industry. “It is the largest display of stud, prime and store cattle on show in the one location in Australia,” Mr Anderson said. “The exposition has been conducted every 3 years and Beef 2003 will be the sixth since the first was staged in 1988. “Through strong local leadership, successive expositions have expanded the scope and content of the event since first staged. I congratulate the Management Committee and the Chairman, Mr Graeme Acton, on the vision projected for Beef 2003. It is local, it is regional, it is national, it is international,” Mr Anderson said. “It is great for regional Central Queensland tourism. Beef 2000 with over 700 trade fair exhibits to browse received an award in the Queensland Tourism Awards in the Category – Major Festivals and Events, Yellow Pages Directions.” Over the last 12 years the beef expos have developed in a major regional event in Central Queensland. Beef 2000 saw 44,000 visitors attracted to the exposition resulting in an economic impact of $13.2 million. “The National Party candidate for Capricornia, John Lever, was a strong proponent of the Exposition and lobbied very hard to get this good result for Central Queensland.” Media contacts: Robyn Bain 0408 027839
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The Morning Bulletin, Wednesday October 17, 2001
Coalition: $6m for expoBY KATE WILEY
DEPUTY Prime Minister John Anderson yesterday pledged almost $6 million to the Central Queensland beef expo project should the Coalition be re-elected to government next month. An allocation of $3.5 million goes to the redevelopment of the Gracemere Saleyards and another $2.2 million will boost Beef 2003.
The redevelopment of the Gracemere Saleyards is expected to create a state-of-the-art venue for the display and marketing of livestock at Beef 2003.
Beyond the beef expositions, Mr Anderson said the facility would have an active sales and rural tourism calendar. He said the redevelopments would further boost Rockhampton's status in the Australian beef industry.
"I know Rockhampton proclaims itself to be the beef capital of Australia, and not without good reason for doing so," he said.
Mr Anderson said the sponsorship would secure the Federal Coalition's position as a major partner for Beef 2003. It is a world-class event which showcases the beef industry in all its facets in the national and international arenas. It is the largest display of stud, prime and store cattle on show in the one location in Australia.”
Rockhampton Mayor Margaret Strelow said the council was disappointed, but grateful for the funding.
Cr Strelow said the council would continue to seek private sponsorship for the full $18 million project, which would redevelop the Rockhampton Showgrounds and part of Victoria Park, as well as the saleyards.
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The Morning Bulletin, Wednesday October 17, 2001
Stall on expo funds slammed THE State Government would withdraw their agreed $8 million contribution to Rockhampton and Gracemere's proposed beef expo development, if the Federal Government did not match the figure, Member for Rockhampton Robert Schwarten warned yesterday.
"If they're not going to put in $8 million we're not going to put in $8 million, which leaves $2 million and you can't do a project like this with only $2 million," he said.
Mr Schwarten was infuriated at the Federal Government's response to a request for funding, saying the Federal Co-alition had dumped the State Government's proposal to assist in the state-of-the-art development.
"If there's no steak there's no gravy," Mr Schwarten said. "We've put $8 million on the table and they've (the Federal Government) put down nothing."
Mr Schwarten said it was pathetic the two local coalition candidates had not been able to convince their Canberra leaders of the worth of the beef expo development.
"They have failed where the Labor Member, Kirsten Livermore, has succeeded," he said.
The Morning Bulletin, Wednesday October 17, 2001
CQ shortchanged, says ALP CENTRAL Queenslanders have been short-changed by the Federal Coalition, a Labor heavyweight who was in Rockhampton yesterday said.
Martin Ferguson, Opposition spokesman for regional development, transport and infrastructure, yesterday joined Member for Capricornia Kirsten Livermore in condemning the Coalition's $3.2 million funding pledge to the Gracemere Saleyards.
Mr Ferguson said Rockhampton had to start working towards Beef 2003 immediately in order for it to be a success and that the current uncertainty hindered the situation further. "Kirsten Livermore and the Mayor of Rockhampton have a commitment from the Beattie Labor Government and Kim Beazley to deliver the full beef expo site and showground," he said.
Ms Livermore said the Labor Party would give $8 million towards the development of the Gracemere Saleyards and the Rockhampton Showgrounds if they were voted into government in the forthcoming election.
"Effectively what's happened is that John Anderson has failed to match Labor's commitment to the Beef Expo redevelopment," Ms Livermore said.
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STATUS OF LEASE AGREEMENTS IN THE INTERNATIONAL EXHIBITION COMPLEX PRECINCT
This document is reproduced with the courtesy of Project Services - due acknowledgement is given
INTERNATIONAL FACILITIES COMPLEX FUNCTIONAL REQUIREMENTS
Notes from the meeting held at the office of Natural Resources and Mines on 5 October 2001 – 11:00 am to 11:45 am. Present: Damien Kennedy Natural Resources and Mines Henry Cope Project Services.
Victoria Park
Victoria Park is designated as a Reserve for Recreation and Botanical Gardens. Council is trustee of the Reserve under the Land Act with the authority to enter into Trustee Lease arrangements provided the consent of the Minister is obtained before Registration. The Reserve extends from Lion Creek Road to the high water mark of the riverbank. Sir Raymond Huish Drive is not a dedicated road but is part of the reserve. The Riverbank up to high water mark is unallocated State Land.
The swimming pool land is not part of the Victoria Park Reserve. The land around the Brothers clubhouse (lot 35), not including the ovals, has been excised for Recreational Club House purposes with a term lease of 30 years from 1994 to 2024. The land around the Rockhampton Basketball Associations stadium area (lot 37) has been excised with a term lease of 30 years from 1994 to 2024. Both Brothers and the Basketball Assoc. have exclusive rights over the area and any changes within that area would have to be negotiated. The following associations have a Trustee Lease issued by the Rockhampton City Council with expiry dates as shown. Normally this lease would be renegotiated before the current expiry date.
Rockhampton Tennis Association Incorporated 11/11/2006 Victoria Park Gymnastic Trampoline Club Inc. 30/06/2006 Rockhampton Contract Bridge Club 30/06/2005 Victoria Park Bowling club. 30/06/2010
If redevelopment on the Reserve is consistent with the current use then the council has the right to improve the area provided discussions have been carried out and agreed with the Dept of Natural Resources and Mines. This use would include such upgrades / new facilities as toilets, upgrading underground services and relocation of activities similar to for instance the Sound Shell. For other buildings not consistent with current use for instance an administration building,
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the land would have to be excised from the Reserve and issued with tenure, either Freehold or a Lease.
For temporary use of the Reserve during activities such as Beef Australia, the activities could occur without notice to either Native title or Natural Resources provided it is under the direction of the Council. The total area except for Lot 35 and Lot 37 has a Native Title claim (Claim No. QC 97/21) on the Reserve by the Darumba – Noolan Murray Aboriginal Corporation for Land + Culture. No investigation has been carried out to determine if this claim has been extinguished. Before any development on this area, notice must be given and allow 30 days for any concerns to be raised, but this does not give them the right to veto any proposal. On the Showground and school land, Native Title has been extinguished. Road Closures – for short-term closure of roads, Council has the authority. For permanent closure of any road application would have to go to the Minister of Natural Resources and Mines.
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INITIAL CONCEPTS / DEVELOPMENT OF THE PROJECT (FACILITIES WORKSHOP REPORT EXTRACT, FEBRUARY 2000) Extracted from: ROCKHAMPTON EXHIBITION COMPLEX (INTERNATIONAL STANDARD FACILITIES), FACILITIES WORKSHOP REPORT, 10 February 2000
SHARED IDEAS REGARDING THE PRIMARY INTENDED PURPOSE OF THE PROPOSED DEVELOPMENT.
The primary intended purpose of the proposed development is:
1. Develop a world class facility for Beef Expo's and other shows and attract
more major events to our region. 2. Position Rockhampton well to support all sizes of events - and position
better than other cities. 3. Multi-functional 4. Meeting the needs of Central Queensland 5. Upgrading Rockhampton events and infrastructure 6. Develop a multi-functional complex that is useful to the whole community. 7. Meet user expectations - service/quality etc. 8. Meeting the needs of the region 9. Tell the world “When it comes to beef, we mean business," 10. Focus primarily on the International Beef Expo 11. Understand stakeholder potential contribution, co-ordinated approach 12. Professional and business like
PRIMARY INTENDED PURPOSE STATEMENT FOR THE PROPOSED DEVELOPMENT
Develop multi-functional exhibition facilities of a WORLD standard, delivering expectations of all stakeholders, as well as meeting the requirements of local and regional communities with a focus on the beef and associated industries.
(The statement should place greater emphasis on the Beef Expo as the key driver of the facilities investment)
GIVENS/ CONSTRAINTS
1. The improved facilities will take place around the Rockhampton
Showgrounds, Victoria Park and at the Gracemere Sale Yards. 2. Browne Park? 3. Beef Expo 2003 will be held in April 2003 in Rockhampton. 4. Beef Expo is established in Rockhampton and has substantial goodwill and
expertise. 5. Beef Expo has regional local authority commitment. 6. The existing Beef Expo facilities need to be improved - are inadequate. 7. Key stakeholders must have ownership over the facility. 8. Lack of co-operative between interest groups has previously constrain the
development. 9. There needs to be a variety of funding sources as there is no obvious
'bucket of money' to fund this development. 10. This will be a staged redevelopment. 11. There is time urgency for action.
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ASSUMPTIONS
1. If the existing facilities are not upgraded Rockhampton will lose Beef Expo. 2. We should incorporate the use of Rockhampton High School facilities and
redevelop facilities on their site so that they can be used all year round and not just during Beef Expo.
3. Commercial cattle activities will take place at Gracemere Saleyards and most other activities (except community and social activities) will take place at Rockhampton's Showground and Victoria Park.
4. Major conferences could be held outside Showground (Capricorn Resort, Leagues Club etc)
5. The Rockhampton Showground and Gracemere Saleyards will be the major venues/ sites for Beef Expos.
WHAT’S IMPORTANT?
1. A facility that the community can be proud of and will use. 2. Critical - timing and planning. 3. The new facility is developed with one common goal and individual interest
groups do not have the ability to prejudice the final result � resulting in an open networking between all stakeholders.
4. Consolidate local authority's commitment and co-operation. 5. Meets the needs of the Beef Expo. 6. Consensus and commitment from everyone, including stakeholders and the
community. 7. Secure funding be made available from federal, state and local
governments as well as the corporate sector. 8. Make sure the facility is completed by before the next Beef Expo. 9. Recommendations become reality. 10. The Beef Expo facilities are to an International Standard. 11. There is a variety of extra curricula activities to cater for all attendees at
Beef Expo and their friends and family. 12. Least amount of disruption. 13. Enhance and blend existing facilities. 14. Development caters for current and future technologies. 15. Functional, practical, multipurpose, feasible and realistic. 16. Development of a standard that will attract other events - multi-functional. 17. Benefits - ongoing - between Expo's/dollar. 18. Ongoing success of Beef Expo. 19. Facility continues to grow and develop. 20. Employment benefits - flow to whole community, catalyst effect. 21. Maintaining the image of Rockhampton as the 'Beef Capital'. 22. Strong local content, benefits to local and regional businesses. 23. Reinforce/establish Rockhampton as the 'Beef Capital of the World'. 24. Enhance ongoing, day today beef tourism. (Infrastructure for school and
tourist tours etc.) 25. Slow the rate of 'centralisation'. 26. Focus on what is achievable and not casting the net too wide. 27. Demonstrate the professionalism of the Industry.
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FUNCTIONAL BRIEF FOR BEEF EXPO - OVERVIEW Item Category 1 Provide administration services A 2 Provide management services A 3 House cattle B 4 Show cattle and display cattle B 5 Sell cattle B 6 Stage trade fair - indoor
- outdoor F
7 Hold seminars E 8 Hold after seminar functions D 9 Show and display - stud cattle
- commercial cattle - meat/ carcasses
B B B
10 Show and display horses B 11 Provide amenities - showers, toilets, catering C 12 Accommodate exhibitors B 13 Wash down stud cattle B 14 Spray the cattle (parasite control) B 15 Park cars, livestock transport, members, visitors, spectators, exhibitors C 16 Social Events - Beef Ball D 17 Support associated activities by other groups
- sponsors function, international visitors function - property auctions business meetings (sign deals etc), general business activities (fax, copiers, phone etc)
D F E E
18 Rest attendees C/D 19 Recreation for attendees, friends and families D 20 Provide food D 21 Beef tastings E 22 Provide support facilities for Beef Promotion
- cold rooms, demonstrations, lectures C
23 Support educational tour groups of all ages E 24 Transport B 25 Load livestock B 26 Provide communication facilities
- phone, press, internet A
27 Video conference (for seminar attendees etc.) E 28 Accommodate international visitors
- refreshments, resting, meet and greet D
29 Access banking facilities – ATM, bureau de change A 30 Stage entertainment
- street theatre, bands, opening and closing ceremonies D
31 Provide shade and weather protection C 32 Provide a secure environment C 33 Cater – luxury, fast food D 34 Provide power (and other services i.e. water, sewerage, data) C 35 Roads and paths C 36 Clean and collect rubbish C 37 Transport - within and to complex C 38 Display camp drafting B 39 Media A 40 Bars D 41 Tours E/D 42 Articulate entry points C 43 Collect admission money A 44 Control access to whole site C 45 Facilitate native language translations etc. D 46 Brief volunteers at an easily identified location A 47 Rest volunteers A
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CATEGORIES FOR FUNCTIONAL BRIEF
Group Category Description 1 A Administration/Management (Rick)
2 B Display cattle/animals/livestock facilities (Graeme)
1 C Ground services/utilities (Rick)
3 D Social/entertainment/hospitality (Heather)
3 E Conference/seminars/education (Heather)
3 F Display - non animal (Heather)
The 6 categories (above) were divided amongst three groups led by Rick Palmer, Graeme Acton and Heather Clelland and more detailed briefs of requirements were developed. Documentation developed during the Course of the Workshop indicates how this might be achieved62
THE PROBLEM SITUATION (FOCUS ON SHOWGROUND FACILITIES ONLY)
1. Existing facility inadequate for the administration function 2. Grandstand needs new seating, painting and maintenance 3. Above ground powerlines need to be replaced with an underground supply
system 4. Toilets and showers for campers 5. Water facilities needed throughout 6. Dog facility - unsightly 7. Cattle yards - unsightly 8. Pavilion - OK 9. Large open span 'building'/shelter required 10. Toilets substandard 11. Dairy pavilion - high standard 12. Other pavilions – maybe acceptable 13. Stables - need to go (Fence line to bar - all needs to go) 14. One main public entry required with parking adjacent 15. New administration ‘building’ central to both areas or more central to
showgrounds area. (The location of this facility needs consideration as most smaller events will use one area or the other but not both the showgrounds and the park.)
16. Fencing needed to control admission 17. Livestock should all be kept in one part of the grounds - loading issues, safety,
trucks manoeuvring 18. Bring city and bush together 19. Display technologies
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Trade Fair Priority Issues: One end brand new, balance very old (pavilion) and unfunctional Suggested Solution(s): Demolish old part , replace with open span multi use facility with concrete floor H Walter Pierce - demolish James Lawrence Pavilion dilapidated - demolish and replace L Primac Pavilion - as above L McCamley Meat Hall - as above L
MORE DETAIL RE SCOPE OF WORK TO ADDRESS 'GAPS' AT VICTORIA PARK Tennis Association Remove and reinstate fencing around 5 courts H Access to court surface from higher road level H Close access road permanently H Widen other access road - to allow 2 way traffic into complex H Retaining wall - concrete between courts and brothers club H Rugby League Hewish Drive 10' higher - flatten area BUT L Major earthworks - may need to be timed to coincide with infrastructure work
as much of the infrastructure will be in ground L
Swimming Pool Flat areas adjacent swimming pool minor earthworks and services - may need to be timed to coincide with infrastructure work as much of the
infrastructure will be in ground L
POSSIBLE ROLES FOR OTHER FACILITY 'OWNERS' HIGH SCHOOL Performing Arts 250 people Smaller groups 10 - 100 people 8 small venues Car parking - small Catering for outdoor functions NORTH ROCKHAMPTON HIGH SCHOOL 300 seat capacity (flat floor) BROWNE PARK/OTHER Conference facility up to (flat floor) 1500 (proposed?) Social activities BROTHERS Conference/functions/leisure/catering/gaming/fields 650 theatre style
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50 - 150 people in 3 - 4 other areas Subdividable spaces New Year - 850 bookings and 200 walk ups ROD LAVER HALL Catering/bar (flat floor) 150 - 200 people SWIMMING POOL Leisure facilities CONCLUSIONS AND RECOMMENDATIONS 1. The group supports the board's redevelopment plans for Gracemere Sale Yards. 2. The group supports in principle the redevelopment plans for Browne Park to
accommodate 1500 seat conference centre. 3. The group supports the redevelopment plans for the Rockhampton Showgrounds
and the Victoria Park precinct as per the requirements outlined during the workshop.
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MAJOR AUSTRALIAN FESTIVALS AND EVENTS 2001-02
Date Event Venue Details September 2001
Aug 25th – Sept 9th
Latin, swing and jazz – AMP Riverjazz
Eagle Street Pier, Brisbane
Riverfestival is an initiative of the Brisbane City Council in partnership with Channel Nine and the Queensland Government.
9th Galston Country Music Festival
Fagan Park, Galston, Sydney
Sydney's only Country Music Festival with entertainment all day. Market & craft stalls, children’s fun fair, plenty of food & fully licensed. All the proceeds go to Charity. www.lisp.com.au/~patdrum
15th – 28th Oct
Our City Our Games: Views and Voices of Sydney 2000
Ground Floor, Customs House, 31 Alfred Street, Sydney
Relive the buzz and excitement that gripped the city of Sydney during the 2000 Sydney Olympic Games by visiting a special exhibition of striking black and white images. Open 7 days per week 10am – 5pm. Entry is free
22nd, 26th, 29th
Opera Adelaide Parsifal, SA
23rd Kempsey River Festival
Kempsey Riverside Park
A celebration of the History Of The Macleay River, featuring family fun and live entertainment. Raft Races, markets and fairyland fun day. Contact: 1800 642 480 for details
28th – 29th
Kukerin Tracmach Fair Kukerin Showgrounds (Kukerin is located 350km's SE of Perth)
Full competition Rodeo, Country & Western Band to follow. Vintage Tracmach Fair, Creek-Bed Races, WA Truck Show and much, much more. Every year around 4 - 5000 people descend on this tiny wheatbelt town to be entertained by all the attractions. There is on-site camping and a newly renovated caravan park. The pub has some accom. and plenty of cold beer!
29th – 1st Oct
Manly International Jazz Festival
Manly, Sydney Featuring over 60 free performances from noon until sundown on four outdoor stages, as well as ticketed indoor concerts. Leading Australian and international bands and artists present a diverse range of jazz styles in the scenic beachside environment of Manly. www.manly.nsw.gov.au/manlyjazz
October 2001 4th – 7th V8 Supercars 1000 Bathurst NSW With an outstanding line-up of V8 Supercars on show
over a full four days, not to mention all the biggest names in Australian motor sport fighting for supremacy on debatably the most demanding circuit in the Shell Championship Series. www.fai1000.com.au
Wine Show Bathurst Bathurst showcases the local wine industry.
7th MUSOZ Festival Wollongong The Musoz Challenge is a nation wide music competition which will be part of the festival in Wollongong. http://www.musoz.org
12th – 14th
Australian 4WD & Adventure Show – ADELAIDE 2001
Ellis park, West Terrace ADELAIDE
The World's biggest 4WD show, on tour. Displays of 4WD vehicles, accessories, caravans, camper trailers, motor homes, tents and all the adventure gear. www.4wdshow.com.au
19th – 21st
Getaway Travel Show Melbourne Exhibition Centre, Southbank
www.iloveholidays.com.au
Date Event Venue Details 21st Walk for the Cure Cities: Adelaide, The Walk for the Cure is Australia's largest Walkathon
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Brisbane, Canberra, Melbourne, Perth, Sydney
and raises funds for diabetes research and the Juvenile Diabetes Foundation. www.jdfa.org.au
26th – 28th
Getaway Travel Show Sydney Showground, Homebush
www.iloveholidays.com.au
27th (from midday)
Sydney Food & Wine Fair 2001
Hyde Park North, Sydney
Sydney's leading restaurants and providores join together and donate their finest products to generate funds for the AIDS Trust of Australia. As well as culinary and vine delights there is entertainment, shows on two stages, lucky dips and of course fun for the kiddies. To register for a stall contact Nigel Hannigan. Phone: 9361 0610
November 2001 1st – 4th Telstra Rally Australia Langley Park Perth
and country locations
The 2001 Telstra Rally Australia will attract the world's leading drivers and rally teams from more than 15 nations. www.eventscorp.com.au
4th Britfest Blacktown Showground, NSW
eventdescription: Celebration of British culture. This festival shows all the traditional songs, dances, food, beverages @ customs of the British people. All welcome. A family oriented festival. [email protected]
9th – 11th Australian 4WD & Adventure Show – PERTH 2001
McCallum Park, Victoria park, PERTH
The World's biggest 4WD show, on tour. Displays of 4WD vehicles – accessories, caravans, camper trailers, motorhomes, tents and all the adventure gear. www.4wdshow.com.au
9th – 18th The Sunday Times Margaret River Wine Region Festival
Margaret River Wine Region
Ten days of Festival Fun. Fine Margaret River wines, mouth-watering produce, music, art, street parties and much more at over 70 venues in the Margaret River Wine Region. www.mrwinefest.org.au
12th – Dec 8th
Gershwin Plays Live Adelaide Festival Theatre, State Theatre Sydney, Palais Theatre Melbourne, Performing Arts Centre Brisbane
The world premiere of an exciting concert featuring not only the wonderful music of Gershwin, but George himself playing his most famous pieces. [email protected]
12th – 18th
Tennis Masters Cup Sydney SuperDome, Homebush
The world's top eight men's tennis players compete for a share in the US$3.7 million prize money and the chance to end the year ranked World No. 1. www.masters-cup.com
Commencing 17th
Grounded Youth Festival
The Museum of Fire, Penrith NSW
eventdescription: youth festival showcasing young original bands with established acts from the Australian music industry - entire event organised by young people from the local area. www.grounded.com.au
18th RTA Cycle Sydney presented by the Sun-Herald
Sydney Join 5,000 Cyclists travelling from North Sydney to Parramatta including a unique journey over the Harbour Bridge! The event is run by Bicycle New South Wales, and raises funds for the Heart Foundation. www.bicyclensw.org.au
18th – 28th
World Solar Challenge
Darwin to Adelaide
29th – Dec 2nd
Australian 4WD & Adventure Show – BRISBANE 2001
Brisbane Convention and Exhibition Ctre, Brisbane
The World's biggest 4WD show, on tour. Displays of 4WD vehicles, accessories, caravans, camper trailers, motorhomes, tents and all the adventure gear. www.4wdshow.com.au
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30th – 2nd Dec
Karate Goju Kai World Championships
Perth Entertainment Centre, Perth
A demonstrative and combat-style international karate competition. www.eventscorp.com.au
30th – 4th Dec
Test Cricket - Australia v New Zealand
WACA Ground, East Perth, Western Australia
See the all-conquering Australians, widely regarded as the best Test cricket team in the world, take on close neighbours and arch rivals New Zealand in the traditional form of the game. www.waca.com.au
December 2001 1st – 26th Volvo Ocean Race
Sydney Stopover Darling Harbour Sydney
An exciting festival celebrating the Sydney Stopover of this ocan race classic. The Stopover Village will feature stimulating interactive displays, topline entertainment, food and beverage outlets as well as the opportunity to see the yachts both in and out of the water. The event is free. www.waterways.nsw.gov.au/oceanracesydney/index.html
29th – 6th Jan
Hyundai Hopman Cup
The Burswood Dome, Perth
The Hyundai Hopman Cup Tennis Tournament is a unique 'round robin' tournament with nine leading international teams of one man and one woman competing. www.eventscorp.com.au
29th – January 10th 2002
Hogs Breath Cafe Australian Hobie Cat National Titles
Vincentia Sailing Club, Vincentia NSW
AUSTRALIAN HOBIE CAT CHAMPIONSHIPS including the selection series for the Australian Team for the next Hobie Worlds. www.aussailing.com.au
January 2002 9th – 12th The Special Event Phoenix, Arizona,
USA www.thespecialeventshow.com
25th – 17th Feb
The Johnnie Walker Classic
Lake Karrinyup Golf Course
The Jonnie Walker Classic is one of the world's richest golfing events and most significant in the world and it is coming to Perth.... www.eventscorp.com.au
24th – 27th
Perth International Arts Festival
Various locations throuhout the Perth metropolitan area
The world's leading artists in music, theatre, dance, film and the visual arts. Perth International Arts Festival will offer an extraordinarily bold and ambitious program of events appealing to all ages, across the range of cultural and economic backgrounds, in the local, regional, national and international community. The Festival will be joined by two sister components, the Festival Fringe and the Oz Summer School of International Artists. www.westernaustralia.net
February 2002 4th – 6th Entech 2002 Darling Habour
Sydney Audio / Visual Tradeshow www.conpub.com.au
16th
Posh Picnic Gingin, Western Australia
Once again the concert lawn fills with the sweet sounds of string music. In the countryside at dusk, with a sumptuous spread on the lawns. www.cheriton.com.au/posh.htm
March 2002 March – May
Autumn Colours Program
Bathurst
The community of Bathurst and the townships in its surrounding district have united to bring you the Autumn Colours program - a wonderful mix of festivals, music, shows, sports, displays and celebrations. www.bathurstcity.com.au
April 2002 6th – 14th
RTA Big Ride Manilla to Walcha
The 12th running of Australia's premier cycle touring experience. 1500 cyclists travel for nine days through rural NSW, raising funds for the MS Society www.bicyclensw.org.au
Date Event Venue Details 12th – Royal Bathurst Show Bathurst Bathurst hosts one of the largest country shows that
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14th attract participants from all over NSW. June 2002
1st – 2nd "A Taste of Manly" Food & Wine Festival
Manly Oceanfront, Sydney
Featuring the best of Manly's diverse restaurant sector and leading NSW wineries, combined with non-stop entertainment from 11.30am to 5pm each day. One of Sydney's largest food and wine festivals in a scenic beachside setting. www.manly.nsw.gov.au/foodandwine
July 2002 13th FINA Women's Water
Polo World Cup The 13th FINA Women's Water Polo World Cup will
present a chance to see Australia's outstanding women's water polo team compete for the first time in international competition since their sensational gold medal win at the Sydney 2000 Olympic Games. Australia will compete against seven teams including USA, Canada, Russia and four European teams with the top three qualifying for the 2003 World Championships in Barcelona. www.wasct.wa.gov.au
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111999... SSSPPPEEECCCIIIAAALLL AAADDDDDDEEENNNDDDUUUMMM::: AAALLLTTTEEERRRNNNAAATTTEEE“““PPPRRROOODDDUUUCCCTTT””” CCCOOONNNCCCEEEPPPTTTThe information in this section is an alternate concept developed by the Consultants. Considered to represent an ideal operating scenario, especially from a marketing point of view, the concept would be dependant upon available funding, and the willingness of affected organisations to accept required changes (i.e. location and nature of proposed facilities).
Reference is made throughout this Section of the Report to the attached ALTERNATE SCHEMATIC CONCEPT PLAN (GLOBAL SOLUTIONS 4) to which these comments relate.
For various reasons, these proposals have not been accepted by Council, but nevertheless have been included for reference purposes in this Report.
OVERVIEW OF ALTERNATE CONCEPT PLAN
To achieve the required outcome, the Rockhampton City Council sought additional funding from both the State and Federal Governments. In attracting this additional funding, the Rockhampton City Council must clearly demonstrate that the International Exhibition Complex has been created and not just an upgrade of the existing facilities. An ideal site - located immediately adjacent to the Fitzroy River and very close to the CBD of Rockhampton City - has been identified which will utilise existing and new major facilities. Global Solutions 4 have further revised the concept to achieve an integrated and clearly identifiable International Exhibition Complex (Rockhampton). Please refer to the attached ‘Schematic Concept Plan’. The Schematic Concept Plan identifies by ‘Precincts’ the existing and new major facilities together with the overall site which make up the International Exhibition Complex. This Plan is an adjunct to the existing plans prepared by Project Services.
When being utilised for major events, the existing and new facilities will be integrated and co-ordinated to become the clearly identified International Exhibition Complex. Naturally, outside major events, the complex will be opened up to allow for various facilities to operate in an independent manner. Market research undertaken indicate that these new facilities should include:
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3. Major flat floor area with multi-purpose facilities (including, importantly, Convention / Conference Facilities). This facility could also serve as the International Exhibition Complex headquarters, incorporating the Administration Centre and Marketing Offices for various exhibition companies.
4. Outdoor Entertainment Facility to host large concerts
5. Certain ancillary Facilities
6. Multi-code sporting oval capable of hosting large regional, national or international events
The ‘New Facilities’ are absolutely essential to the creation of the International Exhibition Complex, both in identification and the provision of adequate facilities and consist of the following major features:
4. Multi-Purpose Convention/ Entertainment Facility • International Exhibition Complex HQ • Convention / Conference Facilities • Large Flat floor area • Tennis Centre HQ
5. Outdoor Entertainment Complex • River Stage Amphitheatre - concerts
6. Upgraded AFL / Cricket Facility
7. Upgraded River Esplanade
The ‘Existing Facilities’ will be upgraded to provide essential support facilities to the Complex, namely: � Rest and shade areas � Restrooms � Restaurants � Additional display areas
The above notations and attached ‘Schematic Concept Plan’ briefly outlines the philosophy and structure associated with the creation of the International Exhibition Complex (Rockhampton) as referred to in the Business Plan.
International Exhibition Complex Multi-Purpose facility
The primary facility in the redesign is the inclusion of an International Exhibition Complex Multi-Purpose facility. There are at least two possibilities for its location – either alongside the North Street Public Swimming Pool, or in the Victoria Park precinct replacing existing structures which comprise buildings associated with the Rod Laver Tennis Centre.
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The latter is the favoured location with a floor area of 5,760 + square metres possible. The former location indicates a floor area of 4,760 + square metres possible. This will allow a flat floor area, depending on design, of at least 2,500 square metres. This may be compared to floor spaces available in the Cairns Convention Centre as follows: Halls (Cairns Convention Centre)
Area (sq.m.)
Theatre Banquet Classroom Exhibition Booths
Great Hall 1,720 2,220 1,300 730 100Halls A & B 860 1,080 650 420 50Halls A,B,C or D 430 500 300 200 25Hall 2 1,470 5,000 1,080 630 80 Rockhampton (Potential, depending on design)
2,500 + 3,000 + 1,500 + 1,000 150
ALTERNATE CONCEPTUAL BUDGET BASED ON REVISED SCHEMATIC CONCEPT PLAN
Overview
OVERVIEW OF ALTERNATE MASTER PLAN BUDGET SUMMARY 19-Oct-2001
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• The need to encourage the establishment of permanent tenants
• The need to meet strong competition
• The need to research local sporting requirements
• The need to establish flexible, multi-purpose facilities
• The need to provide a suitable conference venue
• The need to provide for a multi-code sporting oval
• The need to better provide for pedestrian flow
Other Needs / Opportunities Met:
It remains consistent with the identified “Business” of the Proposed International Exhibition Complex, i.e.
• Multifunction event complex where branding is important
• Consistent with Rockhampton – “the event driven city”
• More flexibility as a National exhibition centre in hosting quality local, regional, national, international events hosting
• Better able to supports local, regional, national development
• Better able to support local business development $$$
• Better able to supporting community development (social capital)
Better Capitalises on the Uniqueness of Rockhampton (Competitive Advantages), especially:
• Well branded “beef capital” image • Ability to build on and support the heritage of cultural success in the arts • Better able to support the hosting of rodeos on a regular basis • Supports larger outdoor entertainment events (e.g. concerts) within the
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INTERNAL REPORT TO THE ROCKHAMPTON COUNCIL GENERAL PURPOSES COMMITTEE 7 NOVEMBER 2001 (RECOMMENDATIONS FOR THE CONCEPT PLANS FOR THE INTERNATIONAL EXHIBITION COMPLEX)
Report To: Chief Executive Officer
Committee: General Purposes Committee
Subject: International Exhibition Complex
Author: Critical Projects Officer
File Ref: CPO 13
Date: 7 November 2001
Summary
This report canvasses the main recommendations of the concept plans for the International Exhibition Complex prepared by Project Services and Global Solutions 4.
It contains a summary of the benefits and detriments of each suggestion as well as recommendations regarding their implementation.
OFFICER'S RECOMMENDATION
THAT the committee recommends to Council that:
1. Council approve in principle, subject to the funding position becoming clear, the undertaking of: a) site survey b) site works and landscaping in the Rockhampton Showgrounds c) provision of underground water, power, sewerage and data services in the
Rockhampton Showgrounds d) site works and reprofiling of the area in front of and to the east of Brothers
Leagues Club e) provision of underground water, power, sewerage and data services in area
in front of and to the east of Brothers Leagues Club and the AFL/cricket field facing Lion Creek Road
f) provision of access through the Victoria Park Tennis Courts g) demolition of the horse stables
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h) construction of new cattle/horse pavilion in place of the current commercial cattle yards
i) construction of new amenities buildings in the Rockhampton Showgrounds and Victoria Park
j) demolition of the old section of the Walter Pierce Pavilion k) further investigation to determine the need for a waste treatment plant l) refurbishment of the Robert Archer Grandstand m) demolition of the Hideaway Bar n) refurbishment of the Primac Pavilion and McCamley Meat Hall o) development of cattle/horse panels and movable seating p) development of a landmark orientation node and entry points
2. Council continue to investigate ways of developing:
a) a flat floor building capable of incorporating offices for the exhibition complex organisation and the Australian Beef Cattle Exposition Association
b) riverside amphitheatre
Council needs to provide direction on the following issues:
• extent of siteworks and landscaping in the Rockhampton Showgrounds • extent of electrical, water, sewerage and data services in the Rockhampton
Showgrounds and Victoria Park • future of the speedway at the Rockhampton Showgrounds • development of an additional exhibition facilities in Victoria Park • creation of an additional multi-functional sporting area in front of and to the east
of Brothers Leagues Club • access to the reprofiled areas in front of and to the east of Brothers Leagues Club • location of the replacement cattle/horse pavilion and the need for cattle/horse
panels • location of the toilet and shower facilities • replacement of the old section of the Walter Pierce Pavilion • need for an additional water treatment plant • location of the administration/entry centre • refurbishment of the Robert Archer Grandstand • demolition of the Hideaway Bar • prime use of the McCamley Meat Hall and Primac Pavilion • need for movable fencing for Victoria Park • need for movable seating • identification of the precise international exhibition complex • need and location of a flat floor building • need and funding of an amphitheatre in the international exhibition complex
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REPORT
In February 2001 Project Services organised a Value Management Workshop which resulted in the major stakeholders in the project to redevelop Rockhampton’s exhibition facilities identifying those elements which they saw as important.
As a result of these deliberations, Project Services prepared a concept plan showing the scope and location of the proposed redevelopment which focussed on the Rockhampton Showgrounds, Gracemere Saleyards, Victoria Park and the Rockhampton State High School. A copy of this concept plan for the Rockhampton precinct is attached to this report.
On 17 May 2001 Project Services prepared a conceptual budget based on their concept plan, a copy of which is attached to this report, showing how the project could theoretically be completed in two stages.
The Rockhampton District Saleyards Board, which is responsible for the management of the Gracemere Saleyards, arranged for a business plan to be developed for the section of the international exhibition complex which is situated at the Saleyards. As a consequence of submissions made by the Board and the proponents of the international exhibition complex, both the current Federal Government and the Federal Opposition have agreed to contribute funding of $3.5 million to enable a new sale ring to be constructed at the Gracemere Saleyards. The Board will contribute the balance of the funding necessary to complete the Saleyards upgrading.
The current Federal Government and Federal Opposition have also outlined their commitments to the Rockhampton portion of the international exhibition complex. The Federal Opposition has agreed to contribute $8 million towards the project, which includes its commitment for the Gracemere Saleyards. The current Federal Government has undertaken to provide $2.2 million towards the running of the beef expo in addition to its Saleyards commitment. There is no doubt the Federal Opposition’s commitment meets the final requirement set by the State Government for it to contribute $8 million. It’s unclear to what extent the Federal Government’s undertaking meets the Queensland Government’s pre-conditions.
On 16 July 2001 Council resolved to accept:
a) Global Solutions 4’s tender to prepare a business plan for the Rockhampton elements of the international exhibition complex; and b) Project Services offer to undertake consultation to determine the best location of the project’s elements and to complete the project’s initial design.
Project Services staff are presently interviewing all stakeholders with interests in the Rockhampton Showgrounds, Victoria Park and Rockhampton State High School to re-evaluate their concept and determine the best location of the project’s elements before completing the project’s initial design.
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As part of their brief to prepare a business plan for the complex, Global Solutions 4 needed to develop a marketing plan. As part of this process, Gary Garner and his partners in the Global Solutions 4 consortium tried to identify the product for which they were developing the marketing plan.
They formed the view the Project Services’ concept plan developed as a result of February’s Value Management Workshop was in reality only an improved version of the existing Rockhampton Showgrounds rather than a new exhibition complex.
Consequently, they decided it was necessary to undertake work outside the scope of their brief and develop a fresh concept plan for the exhibition complex at no expense to Council around which they could develop a marketing plan. A copy of the concept plan prepared by Global Solutions 4 is attached to this report.
Site survey
Project Services included in the conceptual budget an allowance of $26 000 to undertake a detailed survey of the proposed exhibition complex.
As no detailed plan of the entire Rockhampton precinct of the exhibition complex exists, this survey is essential before any large scale redevelopment can take place. Siteworks and landscaping in the Rockhampton Showgrounds
Project Services included in its conceptual budget an allowance of $777 600 for levelling, landscaping and other siteworks at the Rockhampton Showgrounds.
This includes the removal of the existing commercial cattle yards and levelling nearby areas which are susceptible to pooling water during times of heavy rain.
The existing commercial cattle yards are unsightly, covered in rust, hard to clean out and are not of a standard expected to be found at an international exhibition complex. These yards are the type of improvements to which a leading South American beef identity was referring when he said Beef 97 looked like a country show rather than a global exposition.
This work must be completed for Rockhampton to have a suitable venue for Beef Australia 2003.
Council needs to consider the extent of siteworks and landscaping.
Services in the Rockhampton Showgrounds
Project Services included the following allowances in its conceptual budget:
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Electrical upgrade $777 600 Ring main for water supply 122 800 Underground services to trade display area 316 500TOTAL $1 216 900
The lack of electrical, water, sewerage and data services make the current Rockhampton Showgrounds impossible to use as a venue for an international standard exposition. For example, while toilet facilities are insufficient in number and of a poor standard, the sewerage lines into which additional facilities may be connected, are located in areas difficult to access along the western and southern boundaries.
There is no doubt the reasonable provision of this basic infrastructure is one of the necessities for the staging of global exhibitions. It will also make the staging of events like the Rockhampton Show a good deal easier.
Council needs to consider whether electrical, water, sewerage and data services are required at the Rockhampton Showgrounds.
Siteworks and reprofiling of Victoria Park
Project Services made an allowance of $500 000 for siteworks and reprofiling work in Victoria Park. This will enable an AFL/NFL and cricket ground to be developed in the area in front of and to the east of Brothers Leagues Club.
While this work will involve reprofiling near a 40 year old land fill site, there is no expectation this will cause undue environmental problems and the fill which will be removed to level the higher areas may be used to raise the lower areas where much of the land filling took place.
This work will result in expansion of Brothers Leagues Club field so it can host AFL and cricket matches. This will augment the existing centre ring at the Rockhampton Showgrounds which could continue to be used for horse and cattle activities and speedway.
Brothers Leagues Club has indicated it may be in a position to provide lighting for this expanded sporting complex.
Council needs to consider whether: • the speedway should continue to operate at the Rockhampton Showgrounds • a display area should be developed in front of and to the east of Brothers Leagues
Club which may have the potential to complete with other exhibition facilities • an additional large multi-functional sporting area should be constructed in front of
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Underground services in Victoria Park
Project Services made an allowance of $191 400 to include electrical, water, sewerage and data services in the reprofiled area in front of and to the east of Brothers Leagues Club and in AFL training area/cricket fields beside Lion Creek Road.
There is no doubt an additional trade fair area is needed for Beef Australia 2003 as the areas within the Rockhampton Showgrounds were unable to handle the number of trade displays which sought to be involved in Beef 2000. The demolition of the commercial cattle yards and horse stables will result in a larger area being available for trade displays on the Rockhampton Showgrounds, but this may not be sufficient if Beef Australia 2003 maintains a similar rate of growth as its predecessors.
Either the area in front of Brothers Leagues Club or the AFL/cricket field may be used to expand the area available for the Beef Australia 2003 trade fair.
Council needs to consider whether electrical, water, sewerage and data services should be provided in Victoria Park.
Access through the Victoria Park Tennis Courts.
The Rockhampton Tennis Association has been prepared to allow access to the reprofiled grounds surrounding Brothers Leagues Club through its block of five courts to the north of the Club on important occasions, such as the triennial beef expos. This will be provided on the basis that:
a) removable fencing is provided at either end of the block of courts; b) the courts are covered during any event and any damage rectified; c) closure of the exit road and widening of the entry road d) construction of gradual steps to the first court in the block of five; e) construction of a solid retaining wall along the Brothers Leagues Club boundary; f) landscaping of the area surrounding Rod Laver Hall; g) support from Council for Government assistance to renovate Rod Laver Hall; and h) placement of shade sails between the first two blocks of courts.
This route has the advantage of providing direct, line of sight access to the fields in front of and to the east of the Club from the corner of Exhibition and Lion Creek Roads.
An alternative is to provide access through the RTA’s service passage to the north of the group of five courts. The disadvantage is this route does not provide as direct access, nor does it have line of sight.
Direct access through the tennis courts is acceptable to the RTA and it is the most obvious route.
Council needs to consider how access can be best provided to the reprofiled area in
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front of and to the east of Brothers Leagues Club.
Demolition of horse stables
There is no doubt the horse stables need to be demolished and similar infrastructure rebuilt in its place. The stables are incompatible with an international standard complex and justify visitors interpreting Beef Australia as being little more than a country show.
New cattle and horse pavilion
The major issue is what should be built to replace the present horse stables. Project Services set aside $2.45 million to demolish the existing stables and construct a replacement. The new pavilion could be a large, open sided building able to cater for both horses and cattle. It is possible it may also be able to host some uncomplicated horse activities, such as dressage, and other sporting events under cover.
The building may need different internal fencing for cattle and horses together with movable seating for sporting events. The movable seating may be able to be used at sporting events held in the area in front of Brothers Leagues Club.
The difficult issue is to decide the location of the new horse/cattle pavilion. The site beside Exhibition Road is attractive as it is further away from housing than the other possibility in the area near the current commercial cattle yards. This can reduce the noise impact as well as provide a critical mass of new buildings along Exhibition Road which will emphasise the extent of the redevelopment.
The Australian Beef Cattle Exposition Association, which will stage Beef Australia 2003, has a clear preference for the new cattle/horse to be sited near the present commercial cattle yards as it is close to the cattle unloading bays and they feel it will be more easily secured to prevent the escape of cattle.
Council needs to identify what is the best site for the replacement cattle/horse pavilion.
Amenities buildings
Project Services set aside more than $1.3 million to provide additional toilet and shower facilities. There is an unquestioned need for new amenities as the present facilities at the Rockhampton Showgrounds are old, unsuitable and hardly of international standard. Large numbers of people looking after cattle need to be near their stock during the beef expos and the Rockhampton Show. This group will make major use of these facilities, as will the growing numbers of visitors at the beef expos and other large activities held at the complex.
While all the showering facilities can be built on the Rockhampton Showgrounds, toilet facilities will need to be divided between the Showgrounds and Victoria Park, where they can be used by those involved in regular sporting and recreational activities.
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Council needs to consider to what extent the toilet and shower facilities need to be located in the Rockhampton Showgrounds and Victoria Park.
Redevelopment of the Walter Pierce Pavilion
Project Services allocated more than $2.9 million in both project stages to redevelop the Walter Pierce Pavilion which is in desperate need of repair as the building is of anything but international standard.
As Project Services saw this building as providing a focus for food, it has been suggested it should house some professional food preparation areas, food selling areas and corporate boxes overlooking the Showgrounds centre ring.
With the possible exception of the corporate boxes, there’s little argument about the need for the upgraded facilities. The contentious issue is the timing and extent of the renovations.
If this work is not done until the second or a later stage, the old section of this pavilion should be dismantled and the area developed into an outdoor eating area which would lack supporting food preparation and selling areas.
Council needs to consider whether the old section of the Walter Pierce Pavilion needs to be replaced. Waste treatment plant
Project Services set aside $324 000 to construct a new water treatment plant to augment existing pumping capacity. This was principally done to ensure the sewerage facilities are sufficient to service the expected demand from international exhibition complex together with greater use of Victoria Park.
If this need is genuine, then there is little argument that this work needs to be undertaken during the project’s initial two stages.
Council needs to consider whether the additional water treatment plant is required.
Entry/administration building
Project Services allocated $2.478 million in the project’s second stage to build a new entry/administration building which will face Exhibition Road opposite the Rockhampton State High School.
This multi-use building will have a myriad of uses during events such as Beef Australia 2003 when it could be used as administration space, media centre or for volunteers. It has been positioned near the main entry to the exhibition complex.
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This building can be used for other purposes when it is not required for events such as the beef expo. One example of such a use is as a basketball court for students at Rockhampton State High School.
While this pavilion-style space is required to replace buildings which have been demolished during the Rockhampton Show and other major regional events, the issue of its precise position is less clear and it’s possible it may be situated closer to the Lion Creek Road and Exhibition Road intersection, especially if the new cattle/horse pavilion is built near the commercial cattle yards.
Council needs to consider the location of the administration/entry centre.
Robert Archer Grandstand
An allocation of $752 100 has been set aside by Project Services to refurbish the Robert Archer Grandstand which is obviously in a poor state of repair. This facility is another which would justify the observation that the current Rockhampton Showgrounds is not of a sufficient standard to be able to stage an international event.
The issue regarding this facility is one of timing and for this reason Project Services has included it as an element of the project’s second stage. If movable grandstands developed for the sporting field in front of and to the east of Brothers Leagues Club can be used at the Rockhampton Showgrounds, this lessens the dependence on this hard to maintain piece of infrastructure.
While it’s envisaged the grandstand seating will be replaced and the building repainted, it is likely the grandstand will require further renovation in the not too distant future.
Council needs to consider whether the Robert Archer Grandstand should be refurbished.
Dog Pavilion
Project Services set aside $100 000 to relocate the Dog Pavilion, but it is unclear whether a move will be necessary.
As with many other areas which have been leased or become the preserve of a community group, the challenge is to ensure the building is and remains of a standard which is expected in an international standard exhibition facility.
Hideaway Bar
Project Services set aside $250 000 to allow for the demolition of the Hideaway Bar. This bar’s facilities are sub-standard and the lack of water and sewerage only allows for the sale of packaged alcohol products and no food.
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It is possible this facility could be renovated if the new cattle/horse pavilion is constructed near the commercial cattle yards. Should the cattle/horse pavilion be built facing into Exhibition Road, then the Hideaway Bar will need to be demolished as new facility will encroach upon it.
Council needs to consider whether the Hideaway Bar should be demolished.
Primac Pavilion and McCamley Meat Hall
If the Hideaway Bar is demolished, then bar and food facilities could be relocated to the refurbished McCamley Meat Hall and Primac Pavilion. Project Services allowed $200 000 to achieve this task.
It is many years since the McCamley Meat Hall was used to demonstrate how meat is prepared and its main use in recent years has been as fashion and food preparation/selling areas. The building faces west and the afternoon sun shines in the models' eyes preventing them seeing the walkway’s end.
The Primac Building, which is linked to the McCamley Meat Hall, has poor standard flooring and roof. Both buildings have areas where exhibitors have been allowed to build personal permanent displays which militate general use.
Council needs to consider whether the best use of the McCamley Meat Hall and Primac Pavilion is as a food and drink outlet.
Victoria Park fencing
The Australian Beef Cattle Exposition Association wishes to see demountable fencing provided for the areas of Victoria Park which are included within the international exhibition complex as it will reduce the cost of resources which users need to hire.
While this is a reasonable objective and will benefit all complex users, the provision of such fencing is one of the lower priorities when deciding how to use any funding. Project Services included an allowance of $47 600 for this item in its conceptual budget.
Council needs to consider whether movable fencing for Victoria Park should be an element of the project.
New cattle and horse fences and seating
The use of the new cattle/horse pavilion will pose an interesting challenge as it will reduce the capital costs substantially if the same movable panels could be used to accommodate both animals. Likewise, the seating could be part of the movable modules which are used throughout the complex.
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Project Services has made a substantial allowance of $1 million for this item which is based on the premise different sorts of movable panels are required for cattle and horses.
Council needs to consider whether horse/cattle panels and movable seating are required for the new horse/cattle pavilion.
Rockhampton State High School
It is envisaged being able to include the newly constructed Senior Learning Centre at the Rockhampton State High School within the proposed international exhibition complex. This will include not only small, specialist teaching spaces, such as videoconferencing rooms, but it could also include a shade area and canteen at the rear which may be used for networking and social functions.
These facilities, which will have a similar look and feel to the redevelopments in other parts of the international exhibition complex, would be hired by users from the RSHS.
Global Solutions 4
In its concept plan Global Solutions 4 mainly focused on issues outside the Rockhampton Showgrounds. With the exception of the redevelopment of the Walter Pierce Pavilion and the construction of the entry/administration building, they have made no recommendations about work which may be undertaken in the Rockhampton Showgrounds, although they have adjusted some costs. A copy of their master plan budget summary is attached to this report.
Global Solutions 4 recommended the renovation of the Walter Pierce Pavilion be postponed and the entry/administration building be incorporated with a large flat floor area. This, together with the cost adjustments, would enable the construction of a large flat floor area, which could include the exhibition complex and Australian Beef Cattle Exposition Association Inc offices and possibly the Rod Laver Hall.
Landmark orientation node and entry points
The landmark node suggested by Global Solutions 4 in their concept plan is a useful concept which can visually attract visitors to the international exhibition complex. They have suggested this could cost $250 000.
Likewise, the two proposed entry points, which may cost $100 000, will enable all visitors to understand they have entered the international exhibition complex. Both help to set the tone for the area and establish its boundaries.
Council needs to consider whether the international exhibition complex needs to be
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easily identified.
Flat floor area
There is no doubt about the general usefulness of a large flat floor building which a capacity of at least 5 760 sqm as suggested by Global Solutions 4. This has been sought for many years by organisations such as Rockhampton Business & Tourism Information as being essential if Rockhampton is to enter the trade display/conference market in a meaningful way.
The principal difficulty is this facility is not essential for the conducting of the beef expo which have looked at hiring a series of hoeckers to provide such facilities.
An associated issue is one of cost and Global Solutions 4 has suggested this could be solved by shifting the entry/administration centre to the flat floor area, postponing the rebuilding of the Walter Pierce Pavilion to a later stage and tightening up some other costs.
Location is another important issue associated with the development of a large flat floor area. It is possible this may be included within a redevelopment of the Southside Swimming Pool, or in the area between Huish Drive and the southern end of the current Brothers Leagues Club field. One difficulty with the first suggestion is it may not take place for sometime, while the second location is flood effected.
A third suggestion has been to develop the flat floor area in the triangle which includes the Rod Laver Hall and the caretaker’s house. In regard to the creation of the international exhibition complex, this is a central location and near to the landmark orientation node and the proposed entry point which can be developed from hired resources. This flat floor area could include space used by the Rockhampton Tennis Association and replace the Rod Laver Hall. It could also include offices for the body running the exhibition complex and the Australian Beef Cattle Exposition Association.
Council needs to consider whether there is a need for a flat floor building with a capacity of at least 5 760 sqm and where it should be located. AFL/NFL and cricket oval
There is general agreement in both concept plans regarding the need for a large sporting oval in front of Brothers Leagues Club to cater for AFL and cricket matches.
Spectators could be catered for with grassed mounds and a number of movable grandstands which could service the whole complex.
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Global Solutions 4 has suggested construction of a riverside amphitheatre facing west and catering for crowds of up to 5 000 people. The extent of the noise issues which could result from this are unclear, but they would need to be carefully managed and would most likely require the introduction of an appropriate curfew.
This facility would duplicate the services offered by the Sound Shell on the Bruce Highway. If the riverside amphitheatre is developed, there would be little need to retain the Sound Shell which could be sold.
The riverside amphitheatre would not appear to compete with the intimate amphitheatre built on the Fitzroy River bank between Denham and William Streets. The Riverside Park amphitheatre is suitable for comparatively small public events for which there is no charge. The Victoria Park facility would be a good deal larger, contain infrastructure necessary for concerts attracting up to 5 000 people and be capable of being fenced off so patrons could be charged. Global Solutions 4 has suggested this amenity could cost $475 000.
Council needs to consider whether an amphitheatre should be located within the international exhibition complex and, if so, whether the Sound Shell should be sold to pay for this development.
River esplanade
Global Solutions 4 suggested the Fitzroy River bank should be upgraded so the esplanade ran north from the Alexandra Bridge. This work is already being undertaken by Sunrise Rotary Club of Rockhampton.
