Destination NSW ANNUAL REPORT 2014/2015 Destination NSW ANNUAL REPORT 2014/2015 DESTINATION NSW ANNUAL REPORT 2014–2015 page 2 The Hon. Stuart Ayres MP Minister for Trade, Tourism and Major Events 52 Martin Place SYDNEY NSW 2000 30 October 2015 Dear Minister, We are pleased to submit the Annual Report of Destination NSW for the financial year ended 30 June 2015 for presentation to the NSW Parliament. The report has been prepared in accordance with the provisions of the Annual Reports (Statutory Bodies) Act 1984, the Annual Reports (Statutory Bodies) Regulation 2010, the Government Sector Employment Act 2013, the Public Finance and Audit Act 1983, and the Public Finance and Audit Regulation 2010. Yours sincerely, John Hartigan Sandra Chipchase Chairman CEO DESTINATION NSW ANNUAL REPORT 2014–2015 Contents page 3 Contents 4 Chairman’s Foreword 5 Organisation 6 About Destination NSW 8 Board Members 11 Organisation Chart 2014/2015 12 CEO’s Report: The Year in Review 16 Financial Overview 2014/2015 17 Destination NSW Performance 2014/2015 23 NSW Tourism Performance 2014/2015 25 Visitor Snapshot: NSW Year Ending June 2015 27 Review 28 Event Development 33 Marketing for Tourism and Events 43 Industry Partnerships and Government Policy 55 Communications 58 Corporate Services 59 Appendices 60 Destination NSW Senior Executive 61 Human Resources 63 Policies and Programs 65 Corporate Governance 70 Operations 75 Management Activities 77 Grants 79 Visitor Information Centre Support 80 Financial Management 82 Financial Statements 83 Destination NSW Financial Statements 111 Destination NSW Staff Agency Financial Statements 129 Index 131 Access DESTINATION NSW ANNUAL REPORT 2014–2015 Chairman’s Foreword page 4 Chairman’s Foreword Achieving the New South Wales Government’s goal of John Hartigan ‘Doubling Overnight Visitor Expenditure by 2020’ is at the Chairman forefront of all Destination NSW operations. Throughout Destination NSW 2014/2015, the organisation has focused on delivering the Year Three Actions outlined in the Visitor Economy Industry Action Plan (VEIAP), which is the New South Wales Government’s response to the Visitor Economy Taskforce Report. On reviewing the actions and achievements of Destination NSW for 2014/2015 in implementing the VEIAP, it is clear that the organisation is on target to deliver excellent results for New South Wales. In both domestic and international markets Destination NSW is delivering innovation, stronger industry partnerships and record results. It has been a great pleasure to work with a Board of Directors whose knowledge of the tourism and major NSW continues to lead Australia in domestic visitor events sectors, and the business world more broadly, has numbers, nights and expenditure while the State contributed greatly to the organisation’s success. remains the undisputed Major Events State and number one destination in Australia, with a record 3.3 million I look forward to working with the industry across NSW to international visitors in the last financial year. ensure that the capacity for the New South Wales Visitor Economy to grow and flourish is further embedded during Destination NSW’s work in developing Australia’s most my term as Chairman. compelling calendar of major events is also paying dividends. In the past year Sydney and Regional NSW have hosted some astonishing events across arts, culture, lifestyle and sports that have strong appeal for international and interstate visitors. Many are now recognised as ‘only in Sydney’ events. John Hartigan I thank the Minister for Trade, Tourism and Major Events, Chairman Stuart Ayres, the Deputy Premier and former Minister Destination NSW for Tourism and Major Events, Troy Grant and the NSW Government for their ongoing recognition and support of the work of Destination NSW in growing the State’s Visitor Economy. I commend our CEO, Sandra Chipchase on her vision and commitment as she continues to guide Destination NSW as an innovative, results driven and customer-focused organisation with the agility to respond to changing priorities. I also applaud the efforts of the Destination NSW Executive team and our staff both in NSW and overseas, whose commitment to achieving our strategic objectives is outstanding. DESTINATION NSW ANNUAL REPORT 2014–2015 Organisation page 5 Organisation 6 About Destination NSW 8 Board Members 11 Organisation Chart 2014/2015 12 CEO’s Report: The Year in Review 16 Financial Overview 2014/2015 17 Destination NSW Performance 2014/2015 23 NSW Tourism Performance 2014/2015 25 Visitor Snapshot DESTINATION NSW ANNUAL REPORT 2014–2015 Organisation page 6 About Destination NSW Role Established under the Destination NSW Act 2011 as Destination NSW is responsible for devising and the lead Government agency for the New South Wales implementing strategies to grow the State’s visitor tourism and major events sector, Destination NSW’s economy. Our particular focus is on driving tourism charter is to achieve economic and social benefits for and acquiring and developing major sporting and the people of New South Wales through the development cultural events for Sydney and Regional NSW. In of tourism and the securing of major events. addition, Destination NSW is the major investor in Business Events Sydney with the aim to secure more The establishment of Destination NSW saw the merger international conventions, incentive travel reward of four Government-funded entities – Tourism New South programs, corporate events and exhibitions for Wales, Events New South Wales, the Homebush Motor Sydney and Regional NSW. Racing Authority and the Greater Sydney Partnership – into a single entity. Destination NSW is governed by a Board of Management Vision and is subject to the control and direction of the Minister To make Sydney and New South Wales one of the world’s for Trade, Tourism and Major Events. It is principally most successful tourism and events destinations. funded by the NSW Government. Destination NSW is part of a cluster of agencies under the responsibility of the Secretary of the Department of Premier and Cabinet. Mission To double overnight visitor expenditure by 2020 and maximise the benefits of the visitor economy for New South Wales. Strategic objectives 1. P osition Sydney and New South Wales as world-leading tourism and events destinations 2. Attract and secure high-value major events 3. B uild a sustainable events calendar for New South Wales 4. Increase industry stakeholder and customer engagement 5. Deliver value in partnership/co-operative programs 6. Develop and sustain a high-performance organisation 7. Maximise yield and dispersal from the Visitor Economy 8. Implement the Visitor Economy Industry Action Plan. DESTINATION NSW ANNUAL REPORT 2014–2015 Organisation page 7 About Destination NSW CONTINUED Importance of the Visitor Economy to Working with Industry New South Wales Destination NSW works with industry and Government The term ‘visitor economy’ includes businesses and stakeholders to realise our vision of making Sydney and communities that benefit from the direct and indirect NSW one of the world’s most successful tourism and economic activity generated through the wide range events destinations. of initiatives that support the provision of goods and The value of the contribution made by tourism and services to overnight visitors including, but not limited to, major events is undeniable and by working with industry leisure, business, events, food and wine, arts/cultural, stakeholders, we can undertake a wide range of activities nature and student visitors. that increase the profile of Sydney and NSW in key The visitor economy contributes $29.5 billion to the domestic and international markets. State’s economy and supports 159,000 direct jobs. In the year ended June 2015, New South Wales Services welcomed 30.7 million visitors and currently leads all Australian States and Territories in terms of The services offered by Destination NSW include: visitor numbers, nights and expenditure. • Brand development and management Visitor Economy Industry Action Plan • Strategic partnership programs • Market research and insights In December 2012, the Visitor Economy Industry Action • Destination development assistance Plan (the NSW Government response to the NSW Visitor Economy Taskforce Report) was released supporting • Product development advisory service the majority of recommendations made by the Taskforce. • Market and business development programs The Visitor Economy Industry Action Plan outlines • Destination and event marketing the whole-of-Government commitment to the NSW • Co-operative marketing and publicity programs visitor economy and a long-term strategy to achieve the NSW Government’s target of doubling overnight • Major event investment, acquisition and evaluations visitor expenditure to NSW by 2020. • Event leveraging activities Destination NSW is working with industry and • Visitor resources and information Government stakeholders to implement the approved • Visual resources – footage and photography recommendations and actions outlined in the Visitor Economy Industry Action Plan. • Funding for regional events and tourism activities. DESTINATION NSW ANNUAL REPORT 2014–2015 Organisation page 8 Board Members John Hartigan (Chairman) Russell Balding AO (Deputy Chairman) David Baffsky AO Leslie Cassar AM, MOM, KSJ Sandra Chipchase (CEO) The Hon. Patricia Forsythe Margaret Jack Wendy Machin Rod McGeoch AO DESTINATION NSW ANNUAL REPORT 2014–2015 Organisation page 9 Board Members CONTINUED John Hartigan (Chairman) David