TTNQ Annual Report 2013 / 2014

Corporate Sponsors 2013/14

Platinum Members 2013/14

GOLD Members 2013/14

Airline Partners 2013/14

CONTENTS

Chairman’s Report 1 Chief Executive Officer’s Report 5 2013/2014 Achievements and Events 10

ACTIVITY REPORTS Brand 11 Digital 13 Domestic 18 Media & Consumer Marketing 21 Japan 23 UK/Europe 25 China and Hong Kong 29 New Zealand 32 North America 34 Business Events 36 Sport Events 40 Aviation 42 Membership 47 Visitor Information Centre 49 Research & Insights 53 Destination Management 55

Appendices TTNQ Annual Financial Report June 2014 60 TTNQ Members 2013/2014 95

Chairman’s Report 2013 - 2014

Tourism Tropical North Queensland kicked some major goals in the 2013-14 financial year with the much celebrated success of being the first regional destination to host the Australian Tourism Exchange a highlight. The good news continued with the announcements the destination would host the G20 meeting of Finance Ministers and Central Bank Governors as well as three UCI-sanctioned international mountain biking events. These events firmly signal Tropical North Queensland as a global destination for business and leisure. Our credentials are further enhanced by two major proposals, the $8.15 billion Aquis development at Yorkeys Knob and Singapore’s Aspial Corporation plans for a $200 million, seven-tower project on a 24,000 square metre site in Spence Street.

Halfway through the financial year we farewelled our Chief Executive Officer of more than eight years, Rob Giason, who was responsible for steering the organisation through some of its hardest times. We acknowledge his hard work implementing TTNQ’s strategic plan to grow tourism in the region. After playing a role in the turnaround of our industry, Rob chose to pass the baton on.

Alex de Waal ably stepped into the role and listened to industry before initiating the next steps to take TTNQ and the tourism industry forward. This includes the Destination Positioning Review, a destination experience and product gap analysis of each of the region’s markets, initiating a digital customer service training program and adjusting TTNQ’s internal structure to better reflect our changing industry.

On behalf of TTNQ I would like to thank James Dixon who is stepping down from the Board after 10 years of loyal service. James has been deputy chairman, sat on or chaired strategic panels for the western markets, membership, sports and digital/website. In addition, he assisted with the recruitment of a CEO and has been the TTNQ representative on the Advance Cairns board. James has been an invaluable Board member and an enthusiastic supporter of the region’s tourism industry and I wish him well.

Our four strategic objectives for 2013-14 were to:

Grow market share and increase visitor expenditure

Domestic growth continues on the back of two years of sustained marketing in Brisbane, Sydney and Melbourne with the 2013 ‘One day in paradise’ campaign and the 2014 ‘This is my paradise’ campaign. YE June 2014 total domestic visitors 1,626m.

The destination experience and product gap analysis underway for each market will create opportunities for increased visitation in our international markets where figures have softened. Our recent and upcoming portfolio of international events including DerTour Reiser Academy will help with exposure, but the key to addressing this issue will be direct flights to Cairns. China continues to forge ahead and our challenge will be to increase length of stay. There is optimism that our traditional western markets with longer-stay visitors are returning with YE June 2014 total international visitors 689,059.

1/101 Domestic expenditure continues upward while international remains static as a result of reduced visitor nights.

YE June 2014 total nights: • Domestic 8,739,000 up 9% • International 6,174,762 down 5%

Strategic aviation growth

With almost half of domestic visitors and the majority of international visitors accessing Tropical North Queensland by air, the continued development of our tourism industry is reliant on the success of Cairns Airport operations. Conversely the Airports’ significant investment in aviation services infrastructure is equally reliant on the success of the destination’s ability to compete for domestic and global travel incidence via TTNQ.

This inter-reliance is understood by both parties and TTNQ is delighted to report that it continues to enjoy a highly productive partnership with Cairns Airport Pty Ltd. Cairns Airport invested in excess of $1 million into collaborative destination marketing with TTNQ. This partnership yielded a leverage ratio of airport investment of $3:1 through industry, Tourism and Events Queensland, Tourism Australia and various airline partners.

The TTNQ Board also benefits greatly from the positive and sage engagement of the airport’s Board representative, its CEO Kevin Brown. TTNQ will continue to work shoulder to shoulder with Cairns Airport to drive robust sustainable aviation access to the region.

Sustainable funding

Sustainable funding has continued to be an issue for TTNQ where we punch well above our weight with 4.3 visitors per capita which is 16.5 times the national Australian average. Our $7 million a day industry employs 20% of the resident population.

2/101 Cairns Regional Council’s announcement of a significant increase of $1.1 million in funding for tourism marketing was warmly welcomed and I congratulate Mayor Bob Manning on his vision to use the Council’s surplus to invest in an industry that will continue to create jobs for the region.

The Council’s support of our marketing enabled TTNQ to secure $623,500 under the Regional Tourism Organisation Contestable Grants Funding Scheme, the highest amount of funding for an RTO from the State Government. This will enable a total of $1.3 million investment in three initiatives:

1. This is my Paradise – domestic visitor advocacy campaign. 2. Drive North Queensland national campaign. 3. Race the World Championships - positioning of the region as Australia’s mountain bike capital.

3/101 Destination management partnerships

Our destination management partnerships have grown yet again as we gather community and industry support to grow tourism in Tropical North Queensland. The valuable role our partners Cairns Regional Council and Ports North play in the tourism was emphasised when they joined us for Destination Q.

Industry training is about to be taken to the grassroots level with a customer service training program to be rolled out not just for our industry, but for all businesses so their staff can add to the enjoyable experience visitors to our region have. We are working with TAFE to develop this program which will be available later in 2014.This program aims to build on the incredible community support we discovered for ATE.

ATE presented an opportunity to continue our strong partnerships with Tourism and Events Queensland, Tourism Australia and Cairns Regional Council. Many new partnerships were created through a Local Advisory Group for this event which was formed to create a sense of community ownership of ATE as well as ensuring our delegates received the best possible welcome. The result was outstanding and hailed by many as the reason for ATE14 being labelled the best ever. Our team drew in a cross-section of the community including media, Cairns Regional Council, business organisations and industry to reach out to various sectors such as taxis, police and schools. It is a formula many are keen to try and one we will certainly repeat.

TTNQ worked with Tourism and Events Queensland and Tourism Australia to host the first International Media Marketplace at Palm Cove prior to ATE14. This event gave the tourism industry the opportunity to meet with trade and travel media from around the world.

Securing the UCI Mountain Bike World Cup Cairns in April 2014, and again in 2016, as well as the World Championships in 2017 was a direct result of our continued partnerships with local councils, the Queensland Parks and Wildlife Service and James Cook University. Our region’s mountain biking clubs also were critical in securing this event and we have been able to progress our relationship further with them by introducing the Ride Cairns brand to bring all marketing of the sport under the one umbrella.

4/101 Chief Executive Officer’s report

Optimism returns

The 2013/14 financial year has been one of consolidation for the Tropical North Queensland (TNQ) tourism industry with preparation for growth in the future. Despite several challenging years for tourism, which saw traditional markets soften due to the global financial crisis, reduced air access to the region and natural disasters, a groundswell of industry confidence is building.

A sense of optimism is returning as global economies improve and China’s emerging markets begin to establish. Investor interest in the region was stimulated by the proposed multi-billion dollar Aquis Resort, while successfully hosting the Australian Tourism Exchange (ATE) and 2014 UCI Mountain Bike World Cup buoyed industry confidence. Increased Cairns Regional Council investment is helping to build on this momentum.

Our tourism future in the Tropical North is underpinned by some very significant positive global trends which Cairns and the destination of Tropical North Queensland are well equipped to capitalise on.

The world has seen, and continues to experience, an erosion of the planet’s ecological habitats. The quality and biodiversity of TNQ’s natural assets represent our core destination value proposition and their value is destined to escalate exponentially.

Our tourism management practices lead the world in terms of sustainability and while we face challenges with the health of some parts of the Great Barrier Reef due to industrial, agricultural and urban influences, Australia is in the best position - of all nations - to deal with these challenges.

Global tourism trends indicate that tourists worldwide are developing increasing expectations for authentic and personalised experiences, often involving social interaction. TNQ is the world’s best destination to engage with nature. The essence of the experience we provide our guests could not be more authentic and personal. Moreover this value is amplified significantly by the hospitable culture endemic to the region.

International visitation

While our aggregate international visitation was soft, market intelligence in terms of forward bookings provides for cautious optimism. The notable exception has been visitation from China, which has grown to become our largest international market delivering TNQ almost half the market share of visitors to Queensland and one-fifth of visitors to Australia. The TNQ region attracts 47% of all Chinese visitation to Queensland and 20% of the Australian market share.

Global travel trends are projected to increase by 3 per cent annually, whereas growth from the Asia- Pacific region will account for 7-8 per cent growth annually. TNQ will benefit significantly from the rapid increase in the Asia-Pacific population possessing both the desire and the economic means to travel.

TTNQ will intensify efforts to grow our international markets through the introduction of destination experience and product gap analysis of each market. This involves using Tourism Australia research on consumer demand, undertaking a study of what gaps there are in terms of destination representation in each market and targeting wholesalers by giving them viable consumer-relevant

5/101 destination experiences and products to include in their programs. This process started with Japan in 2013-14 and will be implemented across all international markets by December 2014. Domestic visitation

Domestic holiday visitors have declined slightly by - 1% 901,000, with business nights are up by 32 per cent to 1,206,000 and domestic drive tourism is becoming increasingly important with 8 % growth to 888,000 outstripping the 2% increase in domestic air transport visitors to 789,000.

The 2013 ‘One day in paradise’ campaign and the 2014 ‘This is my paradise’ campaign successfully engaged industry, travel wholesalers and airline partners cementing a wide range of partnerships. The multi-platform approach to these campaigns involved using both traditional media and social media. The next iteration of the campaign is currently in development.

Central to the focus of future campaigns will be the outcome of the Destination Positioning Review which was one of my first tasks to get underway when I joined TTNQ in January. All past destination positioning research was reviewed and a situation analysis documented and distributed to TTNQ members and key community stakeholders. Industry was asked to provide input and evaluate four destination name options via a survey and during a members’ forum held on June 12. Qualitative (focus group) research was undertaken in Melbourne, Sydney and Brisbane to gain input from TNQ target segments and to inform a quantitative survey. This research will be finalised and recommendations will be provided to the Board in September 2014 for approval and subsequent implementation.

Building partnerships

Over the past 12 months, the partnership between Tourism Tropical North Queensland (TTNQ) and five Local Tourism Organisations (LTOs) resulted in a successful Regional Tourism Organisation (RTO) Contestable Funding Grant bid for the Drive North Queensland campaign.

TTNQ’s continued partnerships with local councils, the Queensland Parks and Wildlife Service, James Cook University and many regional sporting clubs provided the catalyst for the region to secure the UCI Mountain Bike World Cup Cairns in April 2014, and again in 2016, as well as the World Championships in 2017.

These partnerships also enabled TTNQ to develop the Ride Cairns brand, a unified marketing focus to target a new audience of mountain biking enthusiasts with information about the destination.

Events bring success

TNQ is proving to be a very strong magnet for major events that drive tourism visitation during off peak periods with Ironman Cairns and the Cairns And Indigenous Art Fair just some examples of the portfolio of events that have been secured. We will see this portfolio expand with new homegrown events under development, providing for a rich and attractive tapestry of destination experiences. Developing business and events tourism is central to our strategy to diversify the industry and the news that Cairns will host the G20 Meeting of Finance Ministers and Central Bank Governors in September 2014 has served to greatly reinforce this focus.

In May we had the opportunity to showcase the region’s competence and capability at hosting significant global events with the resounding success of ATE14. Approximately 600 international tourism buyers and 1200 delegates from Australia attended ATE14 in Cairns, the first time the event has been held in a regional area in its 35-year history. The event attracted unprecedented praise and

6/101 was the result of comprehensive collaboration between Tourism Australia, Tourism and Events Queensland, TTNQ, Cairns Regional Council and various local organisations. We will capitilise on the widespread community pride in hosting ATE14 by introducing a digital customer service training program which is being implemented by TTNQ through Tropical North Queensland TAFE. The program, which aims to enhance customer service delivery in TNQ, will be made available to all service industries, not just the tourism sector, to build on our reputation for welcoming visitors as guests.

TTNQ structure

Following the review of the TTNQ strategic plan, which included the review of resourcing for the Japan and China markets, as well as the development of a comprehensive digital marketing plan, TTNQ’s organisational structure was adjusted to reflect the following.

Cairns aviation overview

Since the 2005 financial year, passenger growth has averaged 1.7% per year. Across both terminals, T2 (all domestic) has averaged 4.6% growth, with T1 (mix of both international and domestic) declining an average of 5% per year. In previous years up to 1 in 4 of the passengers using T1 were travelling domestically and much of this has transferred to T2.

The historic pattern of multi-stop Australian itineraries means that Cairns is often reached via domestic flights. This represents a barrier to international visitation that TTNQ is committed to addressing in collaboration with the Cairns Airport Corporation and target airlines.

7/101 Cairns historic and projected passengers 6,000,000 T2 Hi gh r an ge

5,000,000 T2 Lo w r an ge

4,000,000 T2 Hi st o r i c

3,000,000 T1 Hi gh r an ge

2,000,000 T1 Lo w r an ge

1,000,000

T1 Hi st o r i c 0

Total passenger numbers and domestic passenger numbers through Cairns Airport increased from the previous financial year. With an additional 200,000 domestic passengers recorded, Cairns had the fastest growth rate among Australia’s busiest nine airports for passengers on domestic routes for the second year running.

Attracting new direct international services remains a key focus and TTNQ continues to work with Cairns Airport and other tourism and travel partners to achieve this goal.

There has been strong growth in the number of Chinese people visiting Cairns even without year-round direct flights from mainland China to Cairns. This supports the case for direct flights and work is continually undertaken to encourage key Chinese airlines to extend the seasonal services operating during the popular Chinese New Year period to full-year services. The China Eastern Airlines direct service to Shanghai will resume in December this year through to March for an extended Chinese New Year season. Opportunities for direct flights from secondary Chinese cities and other key Asian countries such as Korea, Taiwan and Singapore also are being explored.

Renewed confidence in the Japanese market was underlined with Jetstar introducing 787s on their Tokyo - Cairns and Osaka - Cairns routes and increasing the number of rotations on the Cairns-Osaka service from four per week to five for the off-peak season. In total, the new aircraft and extra rotations provide an additional 52,000 seats on these two routes.

There has been a sharp decline in the number of visitors from New Zealand, which points to the stiff competition our region faces from other holiday destinations easily accessed from New Zealand. This has impacted on aviation access with Air New Zealand changing their Auckland - Cairns service from year-round to seasonal for the first time this year, stopping the service from November to March. We must continue to invest in maintaining, developing, refreshing and marketing our tourism product to entice the Kiwis back here. These flights also provide key access for our North American visitors, so it is vital that they operate as a full year service.

TTNQ will continue to develop seasonal service programmes or charters in markets unable to support year round flights at present, especially more distant markets which need wide body aircraft.

8/101 Volunteers

Our volunteers at The Cairns & Tropical North Visitor Information Centre and the Airport Ambassadors have increased to more than 85. I commend them for the excellence service they provide to visitors, including welcoming cruise ships and their invaluable contribution to ATE14. This is the third year of a cooperative arrangement between the Tropical North Institute of TAFE for certificate three students to volunteer and we have averaged 19 students per semester. This has increased diversity of volunteers both in age and nationality/culture and we continue to retain a very high level of ex-students volunteering after completing their studies. The Vic was responsible for more than $1.5 million gross sales of member product.

Nurture versus Nature

There is much debate in regard to the degree of impact that circumstances and parental influence play in comparison to the genetic endowment a child is given at birth.

A tourism destination also develops on the basis of a set of natural advantages which are leveraged through circumstances and private and public sector investment.

It is TTNQ’s role to ensure that we productively influence market circumstances and investment to ensure the “genetics” of the TNQ destination are nurtured to optimise tourism returns.

To this end TTNQ finalised our Destination Tourism Plan in May 2014 to support the State Government Policy of driving destination focused strategies to achieve 2020 growth targets.

The TNQ DTP identifies the priorities, strategies and actions required to create a sustainable and competitive tourism destination.

Working closely with TNQ stakeholders it was confirmed that TNQ’s competitive advantage is based on the current and continued health of its high value natural assets. This has been clearly recognised and defined in the new vision and implementation strategies for the TNQ tourism industry as well as key stakeholders and most importantly key government agencies.

9/101 Significant activities 2013/14

July 2013 • AFL Western Bulldogs v Gold Coast Suns. • Tropical Tablelands Tourism (TTT) signed a memorandum of understanding with TTNQ, formalising the working relationship between TTT and TTNQ. August 2013 • NRL South Sydney Rabbitohs v Newcastle Nights. • Business Events Cairns & Great Barrier Reef was joined by 17 members on their annual Regional Showcase visiting Melbourne, Sydney and Brisbane. • Inaugural Great Barrier Reef Masters Games. September 2013 • Cruise Down Under Conference hosted in Cairns • Tropical North Queensland received more than a quarter of the funding from the State Government’s contestable funding, securing a total of $689,000 for Drive North Queensland, the TNQ Paradise Campaign and sports and events tourism. October 2013 • The 694-passenger Azamara Quest would use Cairns as a turnaround port in January 2016 with stops at Port Douglas, Cooktown and Thursday Island. • The Tropical North Queensland Facebook Fan Page has connected with its 57,000th fan. November 2013 • NVS and IVS statistics show Tropical North Queensland is driving tourism growth throughout the country with a bumper 16 per cent increase in international holiday visitors for the year ending June 2013. Domestic holiday visitors, which are the back bone of our visitor numbers, are up 11 per cent for the same period. • Tropical North Queensland is the highest awarded destination in the State after picking up the most Queensland Tourism Awards of any region. December 2013 • China Eastern reintroduced seasonal service Shanghai to Cairns. January 2014 • New CEO, Alex de Waal joins TTNQ. • Commence development of the TNQ Destination Tourism Plan. February 2014 • Destination Positioning Study commences. March 2014 • TTNQ’s Domestic Roadshow takes 22 members to Brisbane, Sydney and Melbourne. April 2014 • Cairns hosts UCI Mountain Bike World Cup. • "This is My Paradise" campaign - phase 2 with locals. • Launch of the "Ride Cairns" mountain bike brand. • TTNQ received three contestable grants for "This is My Paradise", Drive North Qld and TNQ Events Strategy. May 2014 • Cairns hosts Australian Tourism Exchange (ATE). June 2014 • Cairns Airport Adventure Festival (Cairns Ironman). • Commencement of Director Destination Content, Kate Duffy. • Cairns Regional Council's 2014/15 budget was approved including $2M funding for TTNQ.

10/101 Brand

Key strategies Build regional diversity via experiences and equity in a suite of TNQ precinct brands.

Actions • Integrate the association of “Hero Experiences” in brand implementation. • Implement the brand strategy to promote the portfolio of precinct brand names within the TNQ strategic umbrella to reinforce competitive advantage in the region’s nature and adventure product diversity. • Ensure consistent branding identity via targeted segments for the region. • Brand positioning for domestic, international and precincts.

Brand portfolio TTNQ manages branding guidelines for both our domestic and international brands. These guidelines direct how we portray the region through marketing and consumer engagement. This includes integrating sub-regional brands and working with LTOs under a Tropical North Queensland and Cairns & Great Barrier Reef brand umbrella.

Brand positioning Our region carries two distinct destination consumer brands depending on the audience.

Domestically, “Tropical North Queensland - Adventurous by nature” differentiates our region from the rest of Queensland while leveraging the national appeal of Queensland as a holiday location. It captures the essence of the area, positioning Tropical North Queensland as Australia’s nature-based adventure playground and Queensland’s best tropical experiences and nature-based activities.

Internationally, “Cairns & Great Barrier Reef - Adventurous by nature” positions the region alongside the world famous Great Barrier Reef while anchoring it firmly to the gateway of Cairns. The Great Barrier Reef is one of the most appealing Australian icons so our branding leverages this internationally known natural wonder and use it as a hook for visitors to begin to explore the region as a whole.

Hero experiences In partnership with TEQ, TTNQ developed Hero Experiences to play a major role in the way the destination is marketed and our brand’s values are distributed. The Tropical North Queensland Hero Experiences have been developed to deliver the region’s 2020 tourism vision, brand promise, and the themes that underpin the vision and brand.

11/101

12/101 Digital

Key Strategies Increase the region’s digital reach.

Actions • Strengthen Digital Platforms. • Drive Global Awareness. • Enhance Strategic Partnerships.

Introduction The adoption of mobile and social media by travellers has meant a fundamental shift for the tourism and hospitality industry. From blogs and traveller review sites to social networks and photo sharing apps, the voice of the traveller is playing a powerful role in influencing destination perception and purchase decision.

The primary objective of TTNQ engaging in traditional and digital communications is to drive consumers to visit our destination and to share their TNQ experiences, thereby influencing others to follow in their footsteps. These people are seen as “advocates” and TTNQ’s strategic approach is to proactively engage these advocates to help promote the destination.

13/101 Online Performance Consumer Website www.cairnsgreatbarrierreef.org.au

Figures showing the usage of the site from 1 July 2013 - 30 June 2014. Information derived from Google Analytics. YE13/14 Sessions 262,542 Users 206,221 Page views 696,656 Pages/Session 2.65 Average session duration 3.09 Bounce rate 55.57% % New sessions 78.08%

The below charts show a breakdown of the demographic visiting the site.

14/101 Social Media Facebook, Twitter, YouTube and Instagram.

TTNQ’s social media footprint continues to grow. With several Instagram and Facebook campaigns, our numbers have grown substantially. Below are the numbers of fans and followers we have on our various social media channels.

Social Media Platform Snapshots

TNQ Facebook Total fans grew from 55,562 as at 1 July 2013 to 97,260 as at 30 June 2014.

15/101 CGBR Facebook Total fans grew from 14,583 as at 1 July 2013 to 21,939 as at 30 June 2014.

Twitter Total followers as at YE June 2014 - 3541

Instagram Total followers as at YE June 2014 - 9235

16/101 Youtube Total video views as at YE June 2014 - 1,304,614 Total views from 1 July 2013 - 30 June 2014 - 290,520 with 412,385 minutes viewed

The below chart shows the countries and ages of the video viewers.

17/101 Domestic

Key Strategies 1. Grow market share and increase visitor expenditure: a. Focus on customer segments within priority growth markets. b. Leverage marketing partnerships. c. Strengthen destination appeal through media and publicity. d. Build regional diversity via experiences and equity in a suite of TNQ precinct brands. 2. Strategic aviation growth: a. Grow capacity on existing routes.

Actions • Maximise growth opportunities from all key markets. • Develop effective cooperative advertising partnerships with airlines and trade to drive brand and tactical campaigns. • Grow Market Share and Visitor Expenditure in the domestic market through collaborative efforts with LTO partners and product / members. • Collectively develop partnerships with a broad range of stakeholders to enhance the regions reputation and support tourism industry development. • Work in close partnership with TEQ, developing domestic campaigns for the TNQ, Adventurous by Nature brand and collaborate on any contestable activity. • Develop a Drive Marketing Strategy (self drive / fly drive) with TQ, Townsville Enterprise and Queensland Outback Tourism Association as well as engaging LTO partners and RACQ and Council to continue growing the drive market.

Overview At year-end June 2014, TNQ welcomed 904,000 domestic holiday visitors who spent 5.15 million nights in the region. The NVS also indicated a 4% growth from intrastate holiday visitors and a slight decline in interstate visitors (-1%).

Intrastate visitors are up 4% and interstate visitors year ending June 2013 came in at a total of 539,000 arrivals (-1% of interstate holiday & leisure visitors). The domestic drive market showed a 9% growth in domestic visitors to TNQ being 908,000 and a 4% increase in domestic air transport visitors, 775,000 (year ending March 2014).

YEJUN14 Total Visitors = 1,626,000

Holiday visitors only Total Visitors Market Visitors Nights Visitors Nights Intra (QLD) 514,000 2,242,000 1,087,000 4,510,000 Inter (QLD) 390,000 2,885,000 539,000 4,229,000

TNQ’s interstate targets in Sydney and Melbourne are the Active Explorer and Social Fun-Seeker. Our intrastate sales and marketing efforts are aimed at the Connector market in Brisbane and South East QLD.

18/101 Trade and Consumer Shows Attendance at the 2014 Caravan and Camping Shows: Melbourne (February), Sydney (May) and Brisbane (June) as part of the Drive North Queensland Contestable Campaign and on behalf of all DNQ Partners.

TNQ Domestic Roadshow included 23 product travelling to Brisbane, Sydney and Melbourne (10 - 15 March 2014) to meet with Infinity / Flight Centre retail and wholesale agents, and Sunlover Holidays retail agents, to conduct product workshops.

Sales Calls / Meetings • Sunlover Holidays • Qantas Holidays, JTG Melbourne, meeting and agent training • Infinity Holidays (Flight Centre Ltd) • Quickbeds.com • RACQ • Jetstar Holidays • CAPL • THL (Britz, Maui, Mighty)

Famils • TNQ / Infinity Holidays Mega Famil (12 agents). • Sunlover Holidays famil (8 pax). • Accor Getaways TNQ Famil (12 agents). • This is my Paradise Bloggers Famil in region

Campaigns Drive North Queensland - Contestable Funding Campaign Partners: Savannah Way Ltd, Outback QLD Tourism Assoc., Tropical Tableland Tourism, Tourism Cape York, Tourism Port Douglas & Daintree, Tropical Coast Tourism, RACQ, Tourism & Events Qld, THL and Cairns Regional Council. • Call to action: www.drivenorthqueensland.com.au • Target Market: Connector and Active Explorer. • Duration: Late 2013 - 30 June 2013. • Media: Online through DNQ website, DNQ App and Facebook. • Consumer Shows. • Drive North Queensland App Campaign, 3 March - 21 June. • Youth & Adventure Campaign (partners THL and TigerAir). • Escape Travel Drive North Queensland Campaign (22 Jun-4 July). • Distribution of DNQ maps, brochures and regional brochures. • Markets: Self Drive Fly drive. Family, Grey Nomad in Brisbane, Sydney and Melbourne but also regional QLD, (including local market) NSW and VIC. • Results: 33% increase / 3,898 downloads onto the Drive North Queensland App, promotion of all drive packages via RACQ network as well as domestic wholesalers. 14 RACQ drive travel edm’s distributed to RACQ membership. Development of 10 new drive itineraries featured on all web assets and via RACQ. 10 Media Famils resulting in 15 drive features and $4M in media value. 500 drive packages sold via Escape Travel DNQ Campaign (21 June 0 4th July 14). Set up of DNQ Drive Survey with 1900 surveys completed during 13-14 year. 75% increase in DNQ website views to 10,278. 33% increase in App downloads to 3898. • Statistics: Year Ending June 2014 the drive market showed a 9% increase on domestic drive visitors to Tropical North Queensland (908,000). 19/101

This is my Paradise, – Contestable Funding Campaign Partners: Jetstar, CAPL, Australian Tourist Publications, Tourism Port Douglas & Daintree and Tourism & Events Qld. • Target Market: Connectors, social fun seekers, active explorers. • Duration: January – August 2014. • Markets: Leisure, Holiday, Family, Honeymoon, Intrastate, Brisbane, NSW and VIC. • Launch of Jetstar, Escape Travel and Sunlover Holidays tactical in market campaigns, combined coop value $450,000 approx. All achieved growth in travel/activity to TNQ during the campaign period. Launch of This is my Paradise from a local’s perspective in mid April including substantial social media campaign and instameet famil in region. • Australian Tourist Publications distribution of 150,000 This is my Paradise Magazines as letter box drops into key markets as well as an additional 10,000 being distributed through CC Shows and used to promote events. • TPDD, Discover Paradise magazine distribution (90,000 inserted into Weekend Australian) throughout key markets and into NZ in early May 14. • Results: Sold return seats via Jetstar Campaign: 9,000; 20,000 clicks on Jetstar.com, 490 likes on Facebook page. • Escape Travel, This is my Paradise Campaign: 28 April – 9 May • Qantas, This is my Paradise Campaign (TEQ&TTNQ coop): 11-19 May • Sunlover Holidays, This is my Paradise Campaign: 16 May – 28 June • This is my Paradise pop up Cinema: 22-29 May • Escape Travel in Store DVD: May – November 2014 • This is my Paradise Destination Magazine distribution, 120,000 copies • Discover Paradise (TPDD) distribution 90,000 copies

20/101 Media and Consumer Marketing

Key Strategies Strengthen Destination appeal through media and publicity.

Actions • Develop direct consumer marketing through content and media engagement. • Engage key source markets domestically and internationally. • Work with Tourism Australia and Tourism & Events Queensland to drive destination awareness through media and marketing activities.

Overview Media and Direct to consumer domestic marketing contributes substantially to the overall promotion of the region through both paid advertising and earned media editorial across Digital, Electronic and print media. TTNQ’s Visiting Journalist Program supports proactive direct Public Relations opportunities as well as supporting media sourced through TEQ and TA. Both domestically and internationally media and direct marketing has played a major role in 2013/2014 and will continue to be a marketing driver for the destination moving forward.

Drive North Queensland 2013/2014 was the second year of significant investment in drive tourism marketing and this facilitated a large number of destination drive focused media. The Drive North Queensland campaign well and truly exceeded all KPI’s in part due to a large number of national television events. In total there were 12 separate drive media famils resulting in 17 separate Drive North Queensland features. The media value of the Drive North Queensland program for the 2013/2014 period was approximately $4 Million.

Channel Ten “North of the Daintree” TTNQ pitched the idea and has been working closely with The Network Ten Documentary unit to produce a 1 hour documentary titled "North of the Daintree". The documentary aired for the first time on July 5th and will play over the next few years across all of the Channel Ten stations generating significant expose for the region. This is the start on an ongoing relationship with the Channel Ten documentary team with more content being pitched.

This is My Paradise TTNQ and TEQ partnered for the second year on the domestic campaign “This is my Paradise” which was in market 22 April - 8 May 2013 with travel deal open to 30 June.

“This is my Paradise” showcased the lives of 3 ordinary locals living extraordinary lives in Tropical North Queensland. The format for the campaign was to create 3 x 90sec clips (one for each local) and would sit on a destination campaign landing page.

These clips would then be made into a 30 sec television commercial to promote the destination with a television media spend in our southern key source markets.

21/101

30 Sec TVC and paid media in BNE/SYD/MEL • Waiting on campaign results

Social Media promotion and advertising spend • Generated 15,231 entries to competition • 32,975,253 paid campaign impressions • Reached 992,616 unique audience • Resulting in 34,972 unique campaign clicks • Shazam TVC tag generated 9264 click throughs

Media and PR activity • Campaign reach > 5 million consumers • 28 pieces of tracked media generated

There was an overwhelming response to the campaign from locals willing to share their stories. Through creating ongoing “This is my paradise” content and engaging locals we will continue to add to TTNQ online content suite.

International Media Marketplace This year the International Media Marketplace was held for the first time as part of ATE. 75 international and domestic journalists gathered in Palm Cove over 3 days to meet with destination marketers, PR agencies and marketing teams from across Australia.

Domestic media coverage Tourism Tropical North Queensland generated stand alone media exposure across all campaigns of approximately $8.5 million in Advertising Equivalency Value. This is in addition to joint media activity with Tourism and Events Queensland, which generated $12.7 million.

International famils and media exposure Working in conjunction with the publicity team at Tourism Australia and Tourism and Events Queensland, TTNQ helped deliver 35 international media famils, hosting 176 international journalists and crews from key source markets.

Live morning television This year as part of Drive North Queensland and This is My Paradise TTNQ secured 6 separate morning television events working with Channel Seven Sunrise and Channel Nine’s Today Show. This totalled 14 days of live television broadcasts from the region and an 8 min segment on The Great Barrier Reef on Weekend Today Show.

22/101 Japan

Key strategies 1. Grow market share and increase visitor expenditure: a. Focus on customer segments within priority growth markets. b. Leverage marketing partnerships. c. Strengthen destination appeal through media and publicity. d. Build regional diversity via experiences and equity in a suite of TNQ precinct brands. 2. Strategic aviation growth: a. Grow capacity on existing routes. b. Increase your-round charter capacity from Asia. c. Maximise interline aviation agreements.

Actions • Increase visitation from growth markets of Japan. • Maximise marketing partnership with TA and TEQ through structured cooperative marketing plans for all markets. • Refocus on developing markets strategy via ITO engagement by focusing on key segments. • Aviation engagement. • Build long stay options for all markets and continue to work with key markets and trade to activate greater length of stay. • Maximise existing capacity. • Build Osaka/Cairns to daily. • Maximise opportunity from JQ Japan domestic ports.

Overview

JAPAN Total Visitors Nights ALOS YE Jun 14 85,675 437,280 5.0 YE Jun 13 94,387 895,266 9.0

The market from Japan YTD as at 30th June 2014 showed a decline of 9% in total arrivals with a reduction in TNQ market share of Australia from 31% to 29%. In addition Holiday nights reduced 24% to 384,064.

The increase in VAT and a tough economic environment are some of reason that have contributed to the decline, however other issues demonstrate the need for a substantial re-think of TTNQ activities in this important market.

Accordingly, 2013/14-year has seen substantial changes in the way TTNQ approaches the Japanese market. The position of Sales and Marketing Manager - Japan has been vacant from November 2013. This has enabled TTNQ to conduct a major review of our operations. Analysis has been done by way of interviews with the major wholesalers and a strategic review of the brochures available in Market.

The analysis that has been conducted confirmed that TTNQ needs to radically change the way it approaches the market in order to actively re-invigorate the trade and expand the experiences available to the Japanese consumer. The research clearly demonstrates that the experiences on offer to Japanese consumers are limited in scope and have not changed in recent times. This results in poor repeat visitation to the region. This research will form the basis of our activities in the coming year and help shape our on going objectives.

23/101

TTNQ, in conjunction with Tourism Events Queensland, conducted 10 major campaigns throughout the 2013/14 year involving all major wholesale partners.

Importantly, TTNQ was a partner in the “TABI SALAD” media events that saw Japan’s most popular TV travel show come to Australia and film one episode totally devoted to Cairns and the Great Barrier Reef.

The region was also represented at the very successful “Queensland on Tour Japan” in September 2013. Additional sales visits were also undertaken to Fukaoaka and Sapporo to capture the opportunities presented by the new Jetstar domestic services connecting with Tokyo and Osaka.

Efforts have been concentrated on the Osaka market to increase air services between Osaka and Cairns. The service is usually 4 times a week that moves to daily during the August. The service will now permanently increase to 5 weekly services from October 2014, which vindicates the efforts that TTNQ has made in this market.

TTNQ will be appointing a new Sales and marketing Manager Japan and this will be done early in the 14/15 financial year. The major function of this role will be to significantly expand the range of experiences and product that is presented to the Japanese market.

In addition the very successful “Cairns Vision” programme will be continued with senior delegations from Cairns travelling to Japan to meet with senior members of the travel media and wholesale travel trade.

2013/2014 Activities

Trade shows and/or consumer shows Trade & consumer shows • JQ Interline Cairns & Gold Coast Seminars in Sapporo and Fukuoka (Pre QOT Japan) - September 2013 • Australian Tourism Exchange Cairns May14

Sales calls • JQ & UA Strategic Meetings and Sales Calls (Post QOT Japan) - September 2013 • Director of Sales and Marketing Japan sales visit Nov 13

Campaigns • His Fukuoaka • JTB media western Japan • JQ Cairns Best Season off peak campaign • HIS JQ Sapporo Interline campaign • UA Fukuoaka Nishitetsu Cairns promo • JQ cairns best season • HIS UA Nagoya • Cairns JQ Daily Osaka

Media/PR Tabi salad TV promotion with TA and TEQ •

24/101 UK and Europe

Key strategies 1. Grow market share and increase visitor expenditure: a. Focus on customer segments within priority growth markets. b. Leverage marketing partnerships. c. Strengthen destination appeal through media and publicity. d. Build regional diversity via experiences and equity in a suite of TNQ precinct brands. 2. Strategic aviation growth: a. Grow capacity on existing routes. b. Secure direct services from China and Singapore. c. Maximise interline aviation agreements.

Actions • Increase visitation from the growth markets of UK, Germany and France. • Partnership with TTNQ members to service the UK, German and French markets. • Maximise marketing partnerships with TA and TQ through structured co-operative marketing plans for all markets. • Influence and leverage TA and TEQ’s media initiatives. • Develop direct consumer relationships through digital channels for leisure. • Develop airline partnerships to achieve growth from key source markets. • Build long stay options for all markets and continue to work with key markets and trade to activate greater length of stay. • Build equity in Cairns & Great Barrier Reef region brand.

Overview United Kingdom June 2014 IVS reported a decrease of -8% Total Visitors and -9% for Total Visitor Nights. Holiday arrivals were down 11% from the UK market for the same reporting period.

UK Total Visitors Total Nights ALOS YE JUN14 80,830 1,045,541 13 YE Jun 13 86,961 1,111,974 12.8

UK is the Cairns & Great Barrier Reef region’s third largest (sole) international market, after China and Japan. The UK market continues to be strong for dispersal and expenditure to this region. Results for June are disappointing and a little surprising given the only months our UK partners advised where disappointing where January/February 2014. Earlier IVS figures indicate continued growth from the UK and forward bookings already made will also show growth. Total number of visitors to Qld was flat, no growth shown.

Potential travellers are seeking and researching competitive holiday deals and these have been made available via the number of travel agents/wholesalers and airline partners in the UK.

Continued changes, improvements and refining of routes and aircraft capacity for services ex UK and the interline arrangements remain positive for the Cairns & Great Barrier Reef region. Youth and Adventure market (Working Holiday VISA) still accounts for a large part of this market and continually maintains either direct focus with trade partners within campaigns, and/or training opportunities. 25/101

The 2013/14 year saw a number of campaigns run in partnership with Tourism & Events Qld, Qantas and Cathay Pacific. Overall feedback from wholesale partners indicated strong interest, modification to the length of the holiday itinerary and the importance of promoting the diversity of the region to secure the booking.

Cairns & Great Barrier Reef hosted ATE14; the first time this national event has ever been held in a regional area. Response from the Buyers was very positive with many believing the greatest satisfaction was the commercial benefit of attending ATE14 and the opportunity to re-visit the region. For many of the UK Buyers it had been many years since they had visited and the opportunity was taken to conduct site inspections and explore.

From a UK perspective the Cairns & Great Barrier Reef region continues to be the key destination for travellers besides Sydney when visiting Australia. Length of stay has increased, along with overall visitor numbers. Most of the wholesalers reported positive growth and see this continuing.

Our trade partners are impressed with the amount of diverse experiences, accommodation and ease of the destination; some did comment on the improvements/refurbishments that have been made and it was necessary. Pleasing to see operators confidence improving by investing in their services.

UK trade famils and educational • UK Trade Prizewinners Famil – Team Cairns “Finding NEMO” x 12; 12/10/13 to 21/10/13 • Inbound UpNorth ITO Famil (all markets) x 54; 23/10/13 to 26/10/13 • QoT UK Prizewinners Famil x 10; 02/05/14 to 05/05/14 • Pre-ATE UK VIP Famil x 4; 04/05/14 to 11/05/14 • Pre ATE Western Famil (mix western markets) x 10; 06/05/14 to 11/05/14

UK media famils • UK Group Media “Wildlife” Famil x 5; 15/09/13 to 22/09/13 • John Torode’s Celebrity Chef Famil x 3; 03/10/13 to 10/10/13 • BlodCademey x 4; 29/10/13 to 01/11/13 • Jan Masters – Editor Harrod’s Travel Magazine x 1; 29/05/14 to 30/05/14

UK campaigns • Team Cairns – Wexas & TravelBag • Cathay Pacific - Austravel

Trade shows and/or consumer shows • QoT UK/Nordic - November 2013 • ATE14 – May 2014

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Overview Europe Germany June 2014 IVS reported a decrease of -12% Total Visitors and -2% for Total Visitor Nights.

GERMANY Total Visitors Total Nights ALOS YE Jun 14 43,821 600,234 14 YE Jun 13 48,537 597,796 12.3

France June 2013 IVS reported an increase of +5% Total Visitors and +43% for Total Visitor Nights. Holiday Arrivals were up 14% from the French market same reporting period.

FRANCE Total Visitors Total Nights ALOS YE Jun 14 25,877 467,478 18 YE Jun 13 23,284 311,291 13.4

The German market has had a challenging year with two quarters reporting negative growth. But it continues to be a main destination for German travellers with our key holiday visitors being young professionals, older dependent free or the youth adventure holiday seeker. Length of stay continues to grow. All German wholesale partners spoken and met with are surprised at these IVS results; it has been indicated there was an error in the methodology used has resulted in these negative results.

Cairns & Great Barrier Reef region meets many of the requirements for this holiday maker: • Key desires for the German/European market travellers are looking for (GBR, nature & adventure, unique Australian wildlife, Rainforests, Indigenous culture, unspoilt beaches and islands, self-drive – camper vans) are all provided for in the Cairns & GBR region – we are a perfect match for any German traveller and this is supported by the growth from this market. • Both Northern Territory and Victoria are competing as first-time competitors, whilst WA and SA are competing in the repeat visitation segment. Our key competitors are the other long haul destinations (USA/Canada, South Africa/Namibia and SEA – Thailand is suffering but Vietnam and Malaysia remain strong)

The French market has increased from June. We are targeting the Youth Adventure market as the youth unemployment record is at an all time high in France, so the Working Holiday VISA is attractive to this market. Cairns & Great Barrier Reef has also seen stable visitation from the romance/honeymoon market, although length of stay is down and this can only be attributed to the economic climate in France. Length of Stay has increased tremendously 18 nights versus 13.4 night previously.

June 14 IVS for Other Europe

YE June 2014 YE June 2013 . Total Total Total Total ALOS ALOS Visitors Nights Visitors Nights Italy 11,133 249,392 22 12,561 152,954 12.2 Netherlands 11,056 175,914 16 10,934 138,871 12.7

Switzerland 9,206 60,318 7 9,969 93,509 9.4

27/101 Europe trade famils and educational • QoT Europe Prizewinners (Netherlands & Germany) x 8; 10/09/13 to 18/09/13 • TEQ Germany x 1; 07/10/13 to 10/10/13 • Tour Pacific Sweden x 4; 15/11/13 to 18/11/13 • DERTour Pre Famil x 22; 12/06/14 to 17/06/14 • DERTour Mega Famil & Workshops x 65; 17/06/14 to 21/06/14

Media/PR and familiarisations • Le Figaro Magazine (France) x 3; 09/08/13 to 26/08/13 • Guillame Mollaret, L`Etueliant Magazine (Best Jobs) x 1; 18/08/13 to 21/08/13

Campaigns • Team Cairns Germany (DERTour & Explorer Fernreisen) • Cathay Pacific Germany (Best of Travel Group & Boomerang Reisen-TUI) • Cathay Pacific France (Easy Voyages)

Trade shows and/or consumer shows • Sales Calls Germany & France – November 2013 • ATE14 - May 2014

Aviation • Cathay Pacific introduced direct flights from Manchester to Hong Kong, 4 flights per week commencing December 2014; aircraft 777’s ! Connect HKG/CNS • Cathay Pacific will have daily flights ex Zurich to Hong Kong, commencing March 2015; aircraft 777’s ! Connect HKG/CNS • Capacity has increased on the Kangaroo Route with many carriers increasing the size of aircraft (A380’s and 777’s) on their routes, particularly from LHR. These include Qantas, Emirates, Etihad Airways, Singapore Airlines, Malaysia Airlines, Cathay Pacific and China Southern Airlines. • Comprehensive alliances and codeshare agreements are in action and providing new route options • Etihad Airways and Virgin Australia’s alliance has improved access between Europe and Australia; Etihad increased capacity on the Manchester/Abu Dhabi services • Qantas and Emirates alliance resulted in Qantas re-routing its London service via Dubai • Emirates increased its capacity from Dubai to Australia, including the deployment of the A380 on SYD, BNE and MEL services • Qantas and Emirates maintain to have the largest share of passengers ex UK, Germany and France

Strategic Panel Meetings • Two Strategic Panel meetings held 2013/2014

28/101 China / Hong Kong

Key Strategies 1. Grow market share and increase visitor expenditure: a. Focus on customer segments within priority growth markets. b. Leverage marketing partnerships. c. Strengthen destination appeal through media and publicity. d. Build regional diversity via experiences and equity in a suite of TNQ precinct brands. 2. Strategic aviation growth: a. Grow capacity on existing routes. b. Secure direct services from China and Singapore. c. Maximise interline aviation agreements.

Actions • Increase visitation from growth markets of China. • Build on the potential of the Greater China market. • Maximise marketing partnerships with TA and TEQ through structured cooperative marketing plans for all markets. • Aviation engagement. • Build long stay options for all markets and continue to work with key markets and trade to activities greater length of stay.

Overview CHINA Total Visitors Total Nights ALOS YE June 14 142,804 399,817 3

HONG KONG Total Visitors Total Nights ALOS YE June 14 18,460 105,594 6

Mainland China is now the largest international market to Cairns & Great Barrier Reef with 142,804 total visitors, a 7% increase. Counting 47% and 20% market share of Chinese total arrivals in Queensland and Australia. 99% of Chinese visitors to CGBR are holiday visitor, a 53% and 31% market share of Chinese holiday visitors in Queensland and Australia respectively. Average length of stay maintained at 3 nights.

The launch of Chinese Tourism Law impacted the volume of outbound travel from China to Australia significantly during Oct - Dec 2013. The volume increased since May when the market digested the impact and when the clause of the law was amended.

12 advertising sales campaigns were completed in 2013/2014 FY supporting the growth of mainland China and Hong Kong to CGBR. This is also the second year that TTNQ published the Chinese Guidebook and used in different trade shows and sales activities. In order to leverage TA’s 2020 plan and TEQ’s China Project, projects were conducted in partnership with Premier Aussie Specialists in cities prioritised in TA 2020 and TEQ Project China in mainland China.

Products advertised included FIT, semi FIT and small group tour groups with itineraries promoted included various experiences in the region, precincts covered Cairns, GBR, Palm Cove and Daintree, Port Douglas, Kuranda and Atherton Tablelands.

29/101 Sales Tour China 2013 was organised in late August 2013 with nine members participating in sit-down one-to-one appointment workshops and a destination presentation conducted in Guangzhou, Hangzhou and Shanghai respectively. More than 35 travel agents attended the one-to-one workshops, and about 400 agents were trained. TTNQ organised tour guide training in January 2014, fourteen members, Cairns Airport and Queensland Police participated.

Over 1,500 travel agents attended respective TTNQ organised destination presentations and sales seminars. These presentation and sales seminars were a result of co-operation with TTNQ members, airlines, and wholesalers under the acknowledgement and support of TA and TEQ.

TTNQ has built a strong trade and media partnership and network in whole Greater China region.

On aviation, Cathay Pacific Airways continued to serve the region from Hong Kong to Cairns triangulating Brisbane with a new schedule of four-time weekly.

China Eastern Airlines conducted seasonal services and China Southern Airlines served the region over the Chinese New Year Period.

Trade Shows / Consumer Shows/ Sales Calls • Corroboree China, June 2014 • ATE Cairns, May 2014 • QoT 2014, March 2014 • TTNQ Sales Tour China, August 2013 (Guangzhou, Hangzhou and Shanghai) • Sales Calls in Hong Kong, Shenzhen, Guangzhou, Hangzhou, Shanghai, Beijing, Jiangxi Total of two market visits in China.

Trade Famils • TTNQ x BCTS famil (14 pax) • Pre ATE famil (16 pax) • Post ATE famil (8pax) • Pre Corroboree Famil (46pax) • CX Trade famil (15 pax) Total of 97 travel agents

Campaigns • CNY Tour Guide Training in Cairns • Mono Cairns Self drive promotion in Hangzhou • CX Hong Kong promotion on FIT • CZ Guangzhou and Shenzhen promotion on FIT and Tailor-made group • CZ Beijing promotion on small group and semi FIT • MU Shanghai promotion on semi FIT, day tour and small group • Cairns & Great Barrier Reef Chinese Guide Book

Media/PR • RTHK (1 outlet - radio) • Nicky Wu filming (1 outlets –- print and online) • Yahoo! HK (1 outlets - online) • South China group (5 outlet - blogger, magazine and broadcast) • CEO Magazine (1 outlet - print) • ATE media visit • CZ Media (3 outlet - print, broadcast and online)

Total of 12 outlets 49 pax 30/101 Strategic Panels Two strategic panels were conducted.

Bus wrap advertisement in Guangzhou

31/101 New Zealand

Key Strategies 1. Grow market share and increase visitor expenditure: a. Focus on customer segments within priority growth markets. b. Leverage marketing partnerships. c. Strengthen destination appeal through media and publicity. d. Build regional diversity via experiences and equity in a suite of TNQ precinct brands. 2. Strategic aviation growth: a. Grow capacity on existing routes. b. Secure direct services from China and Singapore. c. Maximise interline aviation agreements.

Actions • Increase visitation from the growth market of New Zealand. • Partnership with TTNQ members to service the New Zealand Market. • Maximise marketing partnerships with TA and TQ through structured co-operative marketing plans for all markets. • Influence and leverage TA and TQ’s media initiatives. • Develop direct consumer relationships through digital channels for leisure. • Develop airline partnerships to achieve growth from key source markets. • Build long stay options for all markets and continue to work with key markets and trade to activate greater length of stay. • Build equity in the Tropical North Queensland brand.

Overview

New Zealand June 2014 IVS reported a negative result (-27%) for Total Visitors from New Zealand and -16% for Total Visitor Nights. Holiday Arrivals were -26% from this market same reporting period. For all of Qld 0% growth, for all of Australia +4%.

For the period 2012/13 there was 21% more capacity direct into Cairns than the period 2013/14 and the IVS figures prove that aviation is a major concern for TNQ to succeed in this market.

NEW ZEALAND Total Visitors Total Nights ALOS YE Jun 14 31,952 386,559 12 YE Jun 13 43,834 459,633 10.5

For the 2013/14 working with TEQ we continued consumer focus on who and what is Tropical North Queensland.

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Unfortunately 2013/14 was not a good year to welcome New Zealand visitors to Tropical North Queensland and there was also a decrease in visitor numbers to other areas in Queensland, Australia was down overall.

Visiting Friends & Relatives accounts for one third of New Zealand visitors to Australia and the challenge remains to disperse outside the major gateway cities.

Continued to work with trade partners to clarify the message of TNQ via training of approx. 400 industry sellers and more direct consumer activity Billboard/Transit and Newspaper provided the opportunity to be more concise the market idea for this region.

Hawaiian Airlines and Hawaii continue to be a major competitor with many New Zealanders booking holidays; all-inclusive packages to TNQ with the current AUD do not seem attractive, hence the requirement to be more targeted in our messaging and target market.

Trade Famils • Tri-State NZ x 10; 15/08/13 to 19/08/13 • Post ATE VIP Famil x 3; 16/08/13 to 18/08/13

Media Famils • Brian Kelly Coast FM Radio x 1; 21/01/14 to 26/01/14 • Kia Ora Inflight Magazine x 1; 02/02/14 to 07/02/14

Campaigns • House of Travel • Infinity Holidays / Flight Centre • Tourism Australia via www.stuff.co.nz • Consumer Direct – Bus Advertising; Train Station; call to action www.airnz.co.nz and www.cairnsgreatbarrierreef.org.au

Trade/Consumer Shows • QoT NZ - February 2014 • Flight Centre Expo (consumer show) o Auckland - February 2014 • Sales Calls / Training o August 2013 & February 2014

Aviation • Air New Zealand announced they would discontinue yearly AKL/CNS services; these would cease from NOV-MAR

Strategic Panel Meetings • Two Strategic Panel Meetings held in 2012/2013

33/101 North America

Key Strategies 1. Grow market share and increase visitor expenditure: a. Focus on customer segments within priority growth markets. b. Leverage marketing partnerships. c. Strengthen destination appeal through media and publicity. d. Build regional diversity via experiences and equity in a suite of TNQ precinct brands. 2. Strategic aviation growth: a. Grow capacity on existing routes. b. Maximise interline aviation agreements.

Actions • Increase visitation from the growth markets of USA and Canada. • Partnership with TTNQ members to service the North American markets. • Maximise marketing partnerships with TA and TEQ through structured co-operative marketing plans for all markets. • Influence and leverage TA and TEQ’s media initiatives. • Develop direct consumer relationships through digital channels for leisure. • Develop airline partnerships to achieve growth from key source markets. • Build long stay options for all markets and continue to work with key markets and trade to activate greater length of stay. • Build equity in Cairns & Great Barrier Reef region brand.

Overview

USA June 2013 IVS reported 0% Total Visitors and -14% for Total Visitor Nights. Holiday Arrivals were up 5% from the North American market same reporting period. Average length of stay has decreased by .8 nights per person.

USA Total Visitors Total Nights ALOS YE Jun 14 81,834 492,192 6 YE Jun 13 83,098 565,739 6.8

CANADA Total Visitors Total Nights ALOS YE Jun 14 23,395 180,360 8 YE Jun 13 20,693 158,136 7.6

The Cairns & Great Barrier Reef region continues to have the largest market share of North American holiday visitors travelling to Australia, besides Sydney. The region has been able to maintain nil growth or decline where Australia experienced a decline.

34/101 Cairns & Great Barrier Reef region is included in over 70% of all TEQ activity executed in this market and being the most dominant Queensland destination featured. Targeting high-end travellers with disposable income and the more mature age group enables the region to showcase and increase precinct dispersal. This has been done with an increase in media activity promoting the varied experiences as part of the tactical campaigns in market.

Change in aviation from the North American market with Delta Airways and Virgin Australia becoming stronger competitors for the Trans-Pacific route, both Tourism Australia and TEQ took the opportunity to launch major campaigns with these during 2013/14.

Qantas Airways continues to be a significant carrier and their codeshare agreement with American Airlines allows for further domestic network access and therefore easy connections.

Australia is still a key destination for the North American wholesaler and their confidence continues to increase. But due to market trend and demand many of the “Australian” specialists are now workings with other countries to retain clients for repeat visitation opportunities.

Trade Famils • Kim Dean MLT Vacations x 1; 14/07/13 to 19/07/13 • Pre ATE VIP USA Famil x 3; 06/05/14 to 11/05/14 • Post ATE Famil (mixed western markets) x 10; 16/05/14 to 20/05/14 • Pamela Barich MLT Vacations x 1; 25/05/14 to 30/05/14

Media Famils • Michaela Guzy – Ohthepeopleyoumeet.com x 3; 21/09/13 to 25/09/13 • Sarah Bergeron, Ouellet, Canada x 1; 30/10/13 to 08/11/13 • Catherine Dawson-March, Global & Mail Canada x 1; 11/03/14 to 18/03/14 • Think Social 24hrs – Rainforest x 1; 30/03/14 to 04/04/14 • Global Media Learn to Dive (US, Canada, Brazil, Korea, Germany) x 8; 29/05/14 to 06/06/14

Campaigns • Team Cairns o Artisan, DownUnder Answers, www.qantas.com and Stella Travel Services USA • Air NZ Vacations, Air NZ • Air NZ, Stella Travel Services USA & Jean-Michel Cousteau

Aviation • Increase in activity with Air NZ – LAX/AKL/CNS/SYD or LAX/AKL/SYD/CNS • Monitored activity with Virgin • TEQ worked with Delta Airlines (included C&GBR region) • Continue to work with Qantas • Direct capacity from the USA to Australia increased 6% in the 13/14 year • Air New Zealand announced they would discontinue yearly AKL/CNS services; these would cease from NOV-MAR

Strategic Panel Meetings • Two Strategic Meetings held in 2013/14

35/101 Business Events

Key strategies 1. Grow market share and increase visitor expenditure: a. Focus on customer segments within priority growth markets. b. Leverage marketing partnerships. c. Strengthen destination appeal through media and publicity. d. Build regional diversity via experiences and equity in a suite of TNQ precinct brands. 2. Strategic aviation growth: a. Grow capacity on existing routes. b. Secure direct services from China and Singapore.

Actions • Target and source business of corporate meetings. • Support Cairns Convention Centre in the Association market. • Incentive Travel. • Increase Delegate Expenditure. Overview The business events sector experienced a small increase in business over the past 12 months in meetings, delegates and delegate days. Below are the unaudited results Queensland Business Event Survey recording: • 459 Meetings up 13 meetings (3%) • 40,009 delegates, up from 37,463 (+ 7%) • 152,342 delegate days up from 142,347 (+7%)

From a geographic perspective the state business was down slightly but we recorded growth in both national and international delegates and delegate days.

From a market segment perspective the corporate sector dominated with 73% of all meetings held, followed by Association at 18% and Government at 9%.

Full details of these unaudited results are found at the end of the report.

Marketing activities continued to focus on the corporate and incentive market, along with playing a supporting role to the Cairns Convention Centre for association bids. There was also a strong focus on delegate boosting activities.

We continued to focus on the natural assets of the region as unique selling points, which were underpinned with the tagline “The natural place to meet”.

Lead Generation Details We received a total of 55 leads for the year, up four from the previous year. A total of 12 leads with a value of $5.6m were won for the region. A total of 36 pieces of business were lost to the region (value of $13M) with the main reasons cited as being costs of travel to the destination (domestic) and airline access (international). It should be noted that whilst the lost business was higher than previous years, due to the bidding cycle of the events, more decisions were made in this financial year than the previous year.

36/101 In addition to the above we coordinated:

• 13 referrals (confirmed events for the region but requiring further assistance) • 15 Client site inspections • Supported 20 events with delegate boosting collateral

Website Activity The website www.businesseventscairns.org.au performed well over the year recording the following statistics: • Visits – 8,264 • Unique Visits 6,047 • Page views: 20,117 • Pages per visit 2.43 • The resources area is the most visited section and includes image gallery and Meeting Planner Guide

Registrations for both the Regional Showcase and Sell TNQ we taken through the website which assisted in visitation.

Trade Shows and/or Consumer Shows • Regional Showcase – July 2013 (17 members participated) • CIBTM - September 2013 • IMEX USA - October 2013 • Cairns Convention Centre Roadshow – Oct 2013 • Sell TNQ - November 2013 (33 members participated) • PAICE - November 2013 • Dreamtime – December 2013 • AIME - February 2014 (9 members participated) • BEA North Asian Roadshow (China & Korea) - April 2014 Member Engagement • Member update – March 14 (41 Pax attended) • Distributed four Bureau Briefs with member information and news to trade and media • Ad hoc news and updates via In Touch and Invites and Opportunities

Educational programs • Post Touring Sell TNQ (Cairns and Port Douglas) November 2013 - 10 pax • USA Dreamtime Educational program Dec 2013 - 12 pax • Port Douglas Incentive Group - May 14 -–8 pax • Business Events Australia Hong Kong Famil - June 14 - 7 pax

Advertising Media / PR Eight media releases were distributed throughout the year along with four Bureau Briefs (BEC & GBR trade newsletter).

Paid advertising & editorial occurred in both hard copy and digital throughout the year in the following publications: • National: Mice.net, CIM, BEN • New Zealand: Meeting Newz & Travel Inc Asia: CEI & • 37/101 Collateral • Launched the 2014 – 2016 Meeting Planner Guide – 80 pages • Produced Incentive brochure and translated into Japanese, Chinese and Korean • Increased the range and quantity of delegate boosting material available to event planners • Updated incentive itineraries and translated into Chinese, Japanese and Korean

Other activities • Provided additional support to both ATE and G20 organising committees throughout the year. • Participated in AACB sub-committee activities • Developed lead tracking modules in Daylite

Summary of Business Events Performance

QBES unaudited results 2013/14 Comparisons by Industry Types

Meetings 2013/14 2012/13 % change Corporate 333 282 +18% Government 42 50 -16% Association 84 114 -26% Total 459 446 +3%%

Delegates 2013/14 2012/13 % change Corporate 22,015 18,650 +18% Government 2,406 2,360 +2% Association 15,588 16,453 -5% Total 40,009 37,463 +7%

Delegate Days 2013/14 2012/13 % change Corporate 82,532 63,797 +9% Government 7,574 7,086 +7% Association 62,236 71,464 -15% Total 152,342 142,347 +7%

38/101 Delegate Days by Industry 7% 160,000

140,000 120,000 9% 100,000 -15% 2013/14 80,000 2012/13 60,000 40,000 7% 20,000 0

Corporate Government Association Total

Comparisons by Origin of Delegates

Delegates 2013/14 2012/13 % change International 13,329 11,668 +14% Interstate 18,932 17,237 +10 % Local 7,748 8,558 - 9% Total 40,009 37,463 +7%

Delegate Days 2013/14 2012/13 % change International 59,231 53,049 +12% Interstate 67,280 63,123 +7% Local 25,831 26,175 -1% Total 152,342 142,347 +7%

Delegate Days by Origin 7%

160,000 140,000 120,000 100,000 7% 2013/14 12% 80,000 2012/13 60,000 -1% 40,000 20,000 0 International Interstate Local Total 39/101

Sports Events

Key Strategies

Identify visitation opportunities in shoulder seasons.

Actions • Grow market share by diversification. • Increase expenditure. • Build on shoulder and low seasons through events.

Overview The strategic partnership between TTNQ, Tourism and Events Queensland and the Cairns Regional Council resulted in a diverse calendar of events being held throughout the year. While the focus has been on sporting events, cultural and lifestyle events such as the Cairns Amateurs, Reef Feast and CIAF have added a new balance to the event portfolio.

The focus continued in two key areas: • High profile events that deliver broadcast outcomes such as the AFL and NRL. • High participation events such as the Cairns Airport Adventure Festival.

The Cairns Regional Council, in addition to supporting the TEQ event program have partnered with Sports Marketing Australia to deliver a number of junior and senior sports events.

The role that TTNQ currently plays is to work with both partners in assessing event opportunities and then supporting confirmed events with destination information to boost attendance of both spectators and participants.

A Sports Coordinator, who is funded under the Department of Sport and Recreation Jobs Plan Program, continued to work collaboratively with eight sports to grow their capacity to host events. Particular success has been in the area of mountain biking which has resulted in the development if the Ride Cairns marketing campaign (see notes under contestable funding program)

Major Events The following major events were held in the region over the 12 month period: • AFL premiership game • NRL premiership Game • Cairns Airport Adventure Festival • Cairns International Tennis Tournament • Mountain Bike World Cup • Cycling events (Croc Trophy, Cardiac Challenge, Cairns to Karumba) • Triathlon Events (including Great Barrier Reef Marathon ) • Great Barrier Reef Masters • Cairns Amateurs • Port Douglas Carnival • Cairns Ukulele Festival • CIAF

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Sports Marketing Australia Bid Wins The following events were awarded to region during 13/14 through the collaborative partnership between CRC, Spots Marketing Australia & TTNQ: • BMX: national Series April 2015 - 350 competitors • Hockey: Qld Open Men’s State Championships April 2015 - 420 competitors • Little Athletics Qld State Championships - 1,500 competitors in March 2014. • Australian Baseball U23 National Championships - September 2014.

Regional Event Program TEQ Regional Development Program is an investment program designed to extend the flow of economic and social benefits to events in regional Queensland. In partnership with local councils and Regional Tourism Organisations, the program supports a diverse range of events with its core funding stream and Significant Events Stream. Our region was awarded $170,000 for seven events in round 25 and $23,500 for two events in round 26.

TEQ, in partnership with TTNQ held an events boot camp aimed at providing professional development to organisers who received funding under the Regional Development Program. Thirteen people from ten events heard from experts about sponsorship, packaging events and increasing their online presence.

Website / Digital The website www.sportseventscairns.org.au continued to provide destination information on a range of events, facilities and supporting services information. Well over the year recording the following statistics: • Visits: 3,070 • Unique Visits 2,670 • Page views: 7,008 • Pages per visit: 2.28 • The major events and facilities sections were the top pages visited.

Contestable funding 2013/14 The events department were successful with a TEQ contestable fund which focused on the following activities: • AFL- maximise interstate visitation through a series of activations with the AFL, Gold Coast Suns and Western Bulldogs for match on 12 July 2014 • NRL - maximise interstate visitation through a series of activations with the NRL and South Sydney Rabittohs for match on 03 August 2014 • Cairns Amateurs -– develop event packaging opportunities with wholesalers in China, New Zealand and Australia. • Mountain Biking –- leverage the UCI Mountain Bike World cup to position the region as a premier tropical mountain bike destination globally.

41/101 Aviation

Key strategies • Grow international seats (incoming) from 478,764 to 800,000 • Grow domestic seats (incoming) from 2,000,000 to 2,700, 000

Actions • Grow capacity on existing domestic and international routes. • Secure direct services from Singapore, Nagoya, Guangzhou. • Increase year round charter capacity from Asia. • Maximise interline aviation agreements.

Cairns Aviation Overview Since FY2005 passenger growth has average 1.7% per year. Across both terminals, T2 (all domestic) has averaged 4.6% growth, with T1 (mix of both international and domestic) declining an average of 5% per year. In previous years up to 1 in 4 of the passengers using T1 were travelling domestically and much of this transferred to T2.

A key feature of Cairns' longer-term international decline has been its reliance on Qantas Group for its international services - Qantas, Jetstar and/or Australian Airlines. Although they represent Australia, local airlines have higher costs and they often lack a home carrier advantage in key offshore markets eg: frequent flyer base or local distribution channels.

Performance Inbound passenger numbers into Cairns during the financial year 2013/14 increased by 4.9% domestically and declined by 10.7% on international routes. Total passenger growth of 2,139,204 (2.9%). Domestic seat growth of 5.6% delivered 2,583 039 domestic seats and 506,608 international seats.

Working with Cairns Airport, attracting new international services remains a key focus, along with maintaining or increasing services/capacity on existing routes. Strong performance and growth from China has occurred and this is without year round direct flights from mainland China and encourages provides support to continually work in attracting Chinese carriers to introduce year round services. China Eastern Airlines will commence their seasonal services as December and remain throughout Chinese New Year 2015; they ceased their Shanghai/Cairns service post Chinese New Year 2014. China Southern Airlines also continued their charter services over this period.

Domestic services continue to have high load factors during the year, to the extent of lack of seat availability during peak season; this in in turn is causing a bottle-neck effect and/or an increase in airfares from our southern ports. Domestic passengers are paying higher fares and some of our international passengers are also being impacted by this growth. The airlines traditionally have increased the number of services or changed aircraft type to increase capacity, however in recent times we see yields increasing where capacity is constrained.

The region also hosted a very successful Chinese New Year charter series in 2014 with 5 dedicated charters. In addition to the now traditional charters for CNY we had the reintroduction of China Eastern seasonal services from Dec13 until Feb 14 operating between Shanghai and Cairns.

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We continue to pursue charter operations from the Japanese, Chinese and Korean market.

2013/14 Charters • Fukuoka 4 • Guangzhou 5 • Nagoya 1 • Tokyo 2

Our charter program in Japan and China serves to augment capacity in holiday seasons and to stimulate demand for scheduled services. Singapore and China are the key target markets on which we are focusing efforts to attract new aviation links.

International TTNQ continue to approach airlines in Singapore and China providing case studies to the profitability of introducing services direct into Cairns.

With the renewed confidence from the Japanese market, Jetstar introduced the 787 Dreamliner on their Tokyo/Cairns service, and increased the number of rotations for Osaka/Cairns from four per week to five per week for the off-peak season. With the new aircraft and additional rotations this provided an additional 52,000 on these two routes.

Cathay Pacific amended their services during the course of 13/14 and now provides four services per week Hong Kong/Cairns being all direct in/outbound. The departure/arrival times have also been adjusted to connect with DragonAir or Cathay Pacific services to mainland China and the European/UK markets. Cathay Pacific has also introduced new services from Zurich and Manchester direct to Hong Kong, connecting easily to the Cairns service.

Air New Zealand unfortunately advised the Auckland/Cairns service would cease from December to March for the 14/15 year. Feedback also has been given that the aircraft was needed to cover other services in New Zealand and Trans Tasman. We continue to liaise with Air New Zealand for year round services to commence again. Activity still continues to market TNQ to both the New Zealand and North American markets.

International capacity reduced by 48,173 (-8.7%) inbound seats annually, but with the increase of international arrivals in the destination it is fair to say many international visitors continue to fly via the domestic network.

43/101 Domestic Tiger Airways introduced a daily service from Sydney and Brisbane to Cairns.

Domes&c(Capacity((TOTAL)(5(Cairns(Airport( 360,000%

340,000%

320,000%

300,000%

280,000%

260,000%

240,000%

220,000%

200,000%

180,000%

160,000% Jul% Aug% Sep% Oct% Nov% Dec% Jan% Feb% Mar% Apr% May% Jun% 2008% 2009% 2010% 2011% 2012% 2013% 2014%

Domes2c(Passenger(Arrivals(8(Cairns(Airport( !190,000!!

!180,000!!

!170,000!!

!160,000!! 2008!

!150,000!! 2009!

!140,000!! 2010! 2011! !130,000!!

Passenger(Numbers( 2012! !120,000!! 2013! !110,000!! 2014! !100,000!!

!90,000!! Jan! Feb! Mar! Apr! May! Jun! Jul! Aug! Sep! Oct! Nov! Dec! Month(

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Interna'onal*Capacity*(TOTAL)*6*Cairns*Airport*

80,000$

75,000$

70,000$

65,000$

60,000$

55,000$

50,000$

45,000$

40,000$

35,000$

30,000$ Jul$ Aug$ Sep$ Oct$ Nov$ Dec$ Jan$ Feb$ Mar$ Apr$ May$ Jun$

2008$ 2009$ 2010$ 2011$ 2012$ 2013$ 2014$

Interna2onal(Passenger(Arrivals(7(Cairns(Airport( !40,000!! !38,000!! !36,000!! !34,000!! !32,000!! !30,000!! 2008! !28,000!! 2009! !26,000!! 2010! !24,000!! 2011! !22,000!!

Passenger(Numbers( !20,000!! 2012! !18,000!! 2013!

!16,000!! 2014! !14,000!! !12,000!! !10,000!! Jan! Feb! Mar! Apr! May! Jun! Jul! Aug! Sep! Oct! Nov! Dec! Month(

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Airport Statistics (Financial Year) - ARRIVALS Arrving'pax' !! FY2014' FY2013' Difference' Domestic!(T1!&T2)! 1,895,367! 1,805,973! 89,394! 4.9%! International!(T1!only)! 243,837! 273,132! A29,295! A10.7%! Total' 2,139,204' 2,079,105' 60,099' 2.9%'

! ! ! ! ! ! Inbound'Seats! ' ! ! ! '' FY2014' FY2013' Difference' Auckland! 29,183! 44,898! A15,715! A35.0%! Ayers!Rock! !! 87! A87! A100.0%! Brisbane! 12,530! !! 12,530! New! Darwin! 20,703! 27,835! A7,132! A25.6%! Gold!Coast! 1,818! 620! 1,198! 193.2%! Guam! 13,233! 13,471! A238! A1.8%! Guangzhou! 1,402! 5,374! A3,972! A73.9%! Hong!Kong! 78,719! 90,748! A12,029! A13.3%! KansaiAOsaka! 72,313! 69,434! 2,879! 4.1%! Melbourne! 6,969! !! 6,969! New! Mount!Hagen! 6,746! 5,586! 1,160! 20.8%! Other! 32,655! 26,372! 6,283! 23.8%! Port!Moresby! 86,593! 95,052! A8,459! A8.8%! Rabaul! 9,447! 16,038! A6,591! A41.1%! Shanghai! 7,539! 19,613! A12,074! A61.6%! Sydney! 18,842! 32,843! A14,001! A42.6%! TokyoANarita! 107,916! 106,810! 1,106! 1.0%! T1'(International)' 506,608' 554,781' J48,173' J8.7%' Adelaide! 56,210! 51,378! 4,832! 9.4%! Alice!Springs! 44,315! 41,745! 2,570! 6.2%! Ayers!Rock! 43,980! 48,627! A4,647! A9.6%! Brisbane! 776,879! 754,459! 22,420! 3.0%! Darwin! 59,800! 42,040! 17,760! 42.2%! Gold!Coast! 105,063! 87,265! 17,798! 20.4%! Hamilton!Island! 18,270! 18,102! 168! 0.9%! Horn!Island! 53,680! 51,218! 2,462! 4.8%! Melbourne! 435,526! 389,558! 45,968! 11.8%! Moranbah! 7,072! 74! 6,998! 9456.8%! Nhulunbuy! 44,900! 41,911! 2,989! 7.1%! Other! 106,033! 111,067! A5,034! A4.5%! Perth! 37,801! 37,966! A165! A0.4%! Rockhampton! 342! 290! 52! 17.9%! Sydney! 594,390! 557,986! 36,404! 6.5%! Townsville! 143,818! 155,640! A11,822! A7.6%! Weipa! 54,960! 56,392! A1,432! A2.5%! T2'(Domestic)' 2,583,039' 2,445,718' 137,321' 5.6%' TOTAL' 3,089,647' 3,000,499' 89,148' 3.0%' !

46/101 Membership

Key Strategies

• To grow Membership through new member acquisition by in-field activity and direct marketing strategies. • To maintain existing membership base through infield activity, member initiatives and member events throughout the year. • Maintain regular and relevant communication with members via the TTNQ Talk, Industry Opportunities, Member News and CEO updates • Identify member opportunities through elevation of membership level. • Increase member awareness and participation of TTNQ programs and initiatives.

Overview Membership and member's buy-in to TTNQ activity provided approximately 23% of TTNQ’s total funding base for 2013/2014, representing 461 businesses represented from Cardwell to Cape York.

Engaging With Our Members Meeting with our members is a key part of the membership role. Our member functions also provide opportunities for networking, development of business relationships and the flow of knowledge from experienced members to those who are new to the industry and/or region. These functions also allow members to meet and network with the TTNQ team.

Opportunities for members during the year included:

• Six corporate seminars delivered by industry experts. • Seven member networking functions held at various member venues. • Various Key Stakeholder Corporate and Platinum member functions. • Membership Strategic Panel x 2

Involvement with ATE and various road shows and campaigns with TTNQ staff throughout the year.

Member Communications TTNQ communicates weekly and monthly via electronic newsletters: • TTNQ Talk - Monthly • Industry Opportunities - Weekly • Member News - Monthly

In addition to these newsletters, members were kept informed of marketing opportunities and ad hoc information via ‘E-blasts’ where necessary.

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Celebrating Excellence in Tourism The 2013 Tropical North Queensland Gala Tourism Awards was a major success with over 320 attendees on the night. Winners of the categories in 2013 were:

Special Recognition Awards: • Chairman’s Award for Excellence Don & Judy Freeman • Outstanding Contribution by an individual Mark Evans

2013 Category Winners: • Cairns Tropical Zoo - Major Tourist Attraction • Jungle Surfing Canopy Tours - Tourist Attraction • The Cairns Amateurs - Major Festivals and Events • Cairns Cup - Festivals and Events • Daintree Discovery Centre - Ecotourism • Herberton Historic Village - Heritage and Cultural • Mossman Gorge Centre - Indigenous Tourism • Cairns Airport - Specialised Tourism Services • Kuranda Visitor Information Centre - Visitor Information and Service • Pullman Reef Hotel Casino - Cairns Convention Centre Business Tourism Award • Passions of Paradise - Major tour and /or Transport Operator • Exemplar Coaches & Limousines - Tour and or Transport Operator • Passions of Paradise - Adventure Tourism • Tropical Tablelands Tourism - Tourism Marketing • TAFE - Tourism Education and Training • Pullman Cairns International - Tourism Restaurants and Catering Services • Cairns Holiday Park – Tourist & Caravan Parks • Cairns Central YHA - Backpacker Accommodation • Mt Quincan Crater Retreat - Hosted Accommodation • Bloomfield Lodge - Unique Accommodation • Villa Marine Holliday Apartments - Standard Accommodation • Fitzroy Island Resort - Deluxe Accommodation • Pullman Reef Hotel Casino - Luxury Accommodation • Cairns Zoom - New Tourism Development • Daintree Discovery Centre - Sustainable Tourism • Skybury Coffee - Excellence in Food Tourism • Mission Beach Tropical Fruit Safari - Outstanding Contribution by a Volunteer or Volunteer Group

2013 Young Achiever: • Marnie Barnett

Judges Commendation: • Cairns Airprot Adventure Festival - Major Festivals and Events • Bazaar Restaurant - Tourism Restaurants and Catering Services • Mareeba Heritage Centre - Outstanding Contribution by a Volunteer or Volunteer Group

48/101 Visitor Information Centre (VIC)

Key strategies • Build regional diversity via experiences and equity in a suite of TNQ precinct brands. • Identify visitation opportunities in shoulder seasons. • Increase revenue from marketing partners.

Actions Post Arrival Strategy: • Provide unbiased information to visitors through the operation of a self-funded accredited visitor information centre (VIC) open seven days per week, servicing more than 72,000 visitors. • Work closely within the network of intra-region visitor information centres and the remaining Queensland VICs to disseminate accurate information to visitors. • Continue to service the Airport Ambassador program with support from Cairns Regional Council. • Support more than 85 volunteers

Overview The VIC saw an increase in visitor numbers and website enquiries in 2013/2014, and managed to keep a steady conversion rate of 18.6%. We continue to attract great volunteers for our dedicated team focused on customers and sales for the centre and our members’ products.

Airport Ambassador Program We have increased our Airport Volunteers from 32 to 34 with coverage of later flights. With the Anniversary of the programme scheduled October 2014 and holding almost 70% of the original Airport Ambassadors

Visitor statistics The VIC received 57,527 visitors in 2013/2014, a decrease of 8.75% on the previous year. The greatest number arrived in July, August and the least in December with an average of 5,218 per month. European countries from interstate and intrastate followed the majority of visitors, with major increases from United Kingdom, France, Germany, USA and a slight increase from China, Japan & Taiwan.

Member opportunities Number of members that took advantage of Product Presentations: 122 Members up from 108 (2012/2013)

Cruise ship servicing ! Number of ships in Cairns Port - 31 welcomed. ! Number of passengers–- 28,808 ! Number of ships into Yorkey’s Knob–- 19. ! Serviced through VIC Information booth set up in Fogarty Park. ! Number of passengers who took the Cairns shuttle bus averaged 875 per ship.

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Sales results ! Gross sales of member product: $1,5346.73 ! Walk in booking revenue: $205,842 ! Number of visitors to VIC:–57,527

VIC operations 2013/2014 net profit $25,000 compared to 2012/2013 net profit of $31,000

Famils ! 119 Famils and Agents days attended by our volunteers and staff on member products. ! Product Presentations in VIC and off site.

Website updates ! Website: www.cairnsgreatbarrierreef.org.au. ! These are predominantly through our website with most after information and/or packs to be sent out. ! Emails: 4,015 per year with 1,460 mail-out packs. ! Although the emails were responded to with mail-out packs, due to reduction in staff levels normal follow up procedure was inconsistent.

TAFE Tourism students ! This is the third year of operation in a cooperative arrangement between Tropical North Institute of TAFE Qld North and TTNQ VIC, with an average 19 students per semester. ! Plus Additional TAFE Qld North Cert 11 High School Students attending class at VIC each Thursday June - October ! All students as part of their certificate three qualifications are required to volunteer in the VIC to develop their destination and product knowledge, as well as assist with offsite social and sporting events, meet and greet cruise ships in and around Cairns. ! This has vastly increased diversity of volunteers both in age and nationality/culture within the VIC. ! The Centre continues to retain a very high level of ex-students who continue to volunteer after completing their studies.

Promotion ! Advertising on front entrance with banners provided by members. ! Advertising placement throughout the Centre – pop-ups and TV screen. ! Full brochure stands of members’ products. ! Airport Ambassadors handout VICentre location bookmarks ! Manning information booths at large social and sporting events. ! Updated Mobile VIC able to meet and greet all cruise ships. ! Hosting TTNQ Member networking functions. ! Facebook apps with location of Centre. ! www.cairnsgreatbarrierreef.org.au

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TAFE Qld North Tourism Certificate class students

Airport Ambassadors enjoying a member’s famil activity.

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Research & Insights

Key Strategies • Focus on priority growth markets and customer segments with these markets. • Build regional diversity via experiences and equity in a suite of TNQ precinct brands. • Identify visitation opportunities in shoulder seasons.

Actions • Provide quarterly analytical reports for TTNQ membership based on IVS and NVS data • Maintain TNQ forecast in view of 2020 expenditure target • Maintain Partnerships • Maintain up-to-date aviation data

Overview To assist the TNQ regional tourism industry achieve the goals of the 2020 Queensland State Plan and the TNQ Destination Tourism Plan (DTP), research will play an essential role in the providing direction and focus in market selection, funding allocation and consumer insights.

The TNQ-DTP identified the need for analysis and dissemination of contemporary knowledge and research in order to guide industry and government decision-making. Key partners are fundamental to the strategies and capacities in delivering the TNQ-DTP:

TTNQ work closely with a number of research partners: • Australian Bureau of Statistics - accommodation/arrivals • Cairns Airport - aviation • James Cook University - regional research • Reef and Rainforest Research Centre • Tourism Australia - market insights • Tourism and Events Queensland - branding, consumer and visitor research • Tourism Research Australia - International Visitor Survey and National Visitor Survey

Tourism Tropical North Queensland endeavours to build on its research capabilities to assist our membership with the most up to date and relevant material available, to assist the them make knowledgeable choices for their businesses.

Customer insight • International markets and domestic sectors are routinely measured and appraised in view of expenditure, length of stay, direct access and market segment. Monitoring market trends ensures that all TTNQ marketing activity is targeted to the right audience • This analysis and reviews annually form the basis of the Market Profiles for each of the key markets. • Through partnerships with Tourism Australia and Tourism and Events Queensland, the TTNQ team is able to utilise the market and consumer intelligence gathered throughout the year via these larger organisations. These insights allow for informed decisions when planning media and trade activity.

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• The continuation of the small consumer surveys undertaken by JCU students in 2013/14, relating to the Drive Market, was supplemented by an online survey of the same nature. This was delivered through the Drive Nth Queensland campaign website competition

Business intelligence ABS Small Area Accommodation Data ! From 1 July 2013 the collection frequency of the STA moved from quarterly to annual, on a financial year basis. The next release of STA data will be on 19 December 2014 and will include the four quarters of the 2013-14 financial year, that is September quarter 2013, December quarter 2013, March quarter 2014 and June quarter 2014

Aviation ! Major partner Cairns Airport P/L share vital aviation data to assist with market growth intelligence, forecast data and arrival statistics for inclusion in the organization’s strategic planning.

Small Accommodation Data Survey (ATDW assisted) ! The collection of data from accommodation houses with under 15 rooms has been extraordinarily limited. Sectors of the accommodation sector such as B&Bs are difficult to gain a commitment from so few contribute to surveys. With the assistance of ATDW, STR Global is endeavouring to bridge this gap in the accommodation sector. TTNQ in partnership with TEQ & ATDW undertook a program to engage smaller accommodation houses to provide important data on the sector. Funding provided for the project enabled TTNQ to engage a part time consultant to engage with small operators to gain their support in collecting data and in turn providing them with connection to ATDW on a subsidised level. Regrettably the program was not embraced by industry and despite the incentives only five operators took up the offer to register.

Tourism Barometer ! After ten years of regional data collection the TNQ Regional Barometer survey ceased as of 31 June 2014. The information collated over this period has been a valuable tool for the region however due to a number of factors it proves timely to reassess the process and the type of data needed moving toward 2020. TTNQ would like to take this opportunity to thank our partners Compass Research for their support and commitment to the Tourism Barometer over the past ten years

Knowledge Management ! TTNQ’s new look corporate website provides a portal to the latest IVS, NVS and industry data from Tourism & Events Qld, Tourism Research Australia and various external agencies. ! Research where possible represents a regional perspective, such as the IVS & NVS and delivered quarterly ! TTNQ occasionally and in partnerships with other agencies will undertake limited research. This research is available to members via the corporate website

54/101 Destination Management

Key Strategies • Develop participating agencies that carry responsibilities for investment, labour, skills and infrastructure development to achieve growth • Develop a sustainable funding model to generate increased investment in tourism marketing funds • Negotiate a three-year agreement with Cairns Airport (2012/2015) • Maximise membership revenues and marketing spend • Maximise business events funding opportunities • Maximise cooperative opportunities with Tourism Australia and Tourism & Events Queensland

Actions • Report supply related infrastructure and resource gaps that impact on growth • Represent tourism on policy issues, participate in debate and monitor outcomes • Support Indigenous Tourism Development Framework • Provide high level advocacy and written reports for Board, industry, local, State and Federal Government

Overview One of TTNQ’s strength lies in its partnerships and incorporating a network of interrelated stakeholders and organizations, both public and private sector, working together. The success of destination relies on a coordinated approach to the planning, development, management and marketing of TNQ.

The past year has seen a focus on develop of a strong Destination Plan for TNQ to assist the region achieve its potential of $4.1Billion by 2020. This process has assisted in the reinforcement of partnerships with local and State government, with consultation to a broad number of development groups and organisations. 2013 - 14 also saw the extension of the Contestable Grant Funding program through Tourism and Events Queensland, with the TNQ region again receiving a high level of funding in the State.

As a leading industry organisation TTNQ is invited to participate, and attended, a wide range of forums and meetings both locally and nationally, also providing presentations to industry groups and Councils throughout the region. TTNQ’s input on behalf of the industry covers a wide variety of subjects such as skills and employment issues in the region, sustainable tourism, education and sporting groups and infrastructure.

Destination Tourism Plan - 2020 In 2013 the Department of Tourism, Events and Small Business commissioned each QLD Regional Tourism Organisation to undertake a Destination Tourism Plan (DTP) in accordance with the recommendations of Destination Q 2012.

The aim of each DTP was to provide the definitive direction for tourism and events in each destination towards 2020, highlighting the resources required to create sustainable and competitive tourism destinations. A key feature of the DTP is to directly link the State (and National) targets to doubling the value of tourism, while recognising the local challenges and opportunities that are destination’s unique tourism assets, unique development, marketing and management needs.

55/101 TTNQ formed the basis of the DTP on available research, extensive consultation and stakeholder feedback, a review of existing plans, reviews and reports. The TNQ DTP was built on grassroots level support from key stakeholders in local tourism organizations, local government, Government, development organisations and importantly TNQ operators.

The DTP outlines critical drivers and enablers for successfully reaching the potential targets of 2020 and has received endorsement from the 35 external agencies, associations and partners who contributed to the plans development.

Alliance for Sustainable Tourism

There is a strong relationship between sustainability and a destination’s competitiveness, so the protection of our natural assets and the ability to maintain a strong and ecologically minded tourism industry is fundamental to the Tropical North. TTNQ, as secretariat to the Alliance for Sustainable Tourism, hosts the Alliance meetings throughout the year and has a representative on the committee. TTNQ also attends the Northern Forum, a partnership of the Alliance, QPWS, government departments and industry stakeholders, which allows an update on activity by all key stakeholders and discussions on any overlapping issues that may have arisen from the tourism perspective.

The Alliance has provided feedback and commentary on a number of topics, which have arisen from the Destination Q forum, together with submissions to the Minister on potential Board members for the Wet Tropics Management Authority, and continues to work closely with the Queensland Tourism Industry Council on a range of topics relating to tourism and sustainability.

Local Tourism Organisation Strategic Panel The five Local Tourism Organisations within the overall TNQ region play a vital role in the partnership with TTNQ, particularly in the development of the Drive North Queensland (DNQ) activity. The DNQ campaign encompasses all the LTO regions and is jointly funded with additional support via a contestable grant.

The LTO strategic panels are held prior to the TTNQ Board meeting to ensure that all opportunities are aligned and each partner is able to review current and past activity.

Tropical North Queensland – Tourism Employment Plan Tourism in TNQ is entering a renaissance. Major investment in new products, growing air access on the back of $1 billion investment in the airport and rapid growth in new markets (especially from Asia) means the destination is stretching to reach the 2020 growth target of an extra $2 billion in expenditure. This will result in increased demand for labour and the region will require an additional 3,750 workers by 2020. This demand will be exacerbated by planned developments such as the Aquis resort, which has a proposed employment impact of 26,700 jobs when fully operational.

The TNQ Tourism Employment Plan, prepared in consultation with industry and key stakeholders of TNQ’s broader tourism and labour community, provides a vision, outlines priority actions and sets out a framework for the delivery of workforce solutions for the tourism sector. Another challenge is the loss of pathways into industry highlighting the need to make tourism a more attractive career choice by offering new entrants career pathways. While strategies have been developed to improve industry uptake of the existing employment and business support programs available, there is a broader challenge. These broader issues have been identified by industry and present a significant challenge to solving the labour and skills shortages currently seen throughout the region. The plan is in the final draft stages and will be available on the TTNQ Corporate Site.

56/101 Destination Q The 2013 Destination Q Forum was held at the Gold Coast Convention and Exhibition Centre, in August, 2013 with 380 delegates in attendance.

Building on the success of the 2012 Destination Q Forum, the 2013 Forum reported on the progress of the 2012 Partnership Agreement and 12 Month Key Action Plan and then focused on the development of a 20 year plan for the tourism industry. Along that 20-year journey, Queensland has set a target of increasing annual overnight visitor expenditure to $30 billion by 2020.

The major outcome of the 2013 Destination Q Forum was a renewed partnership agreement signed by the Queensland Government and the Queensland Tourism Industry Council. Delivery on the partnership agreement is overseen by the Post-Forum Working Group, with outcomes reported to government via the Tourism Cabinet Committee.

In 2013 the following reports were presented:

• 12 month partnership report • The Future of Tourism in QLD final report from CSIRO • The Queensland Ecotourism Plan

Destination Director – TNQ In late 2013 the position of Destination Director – TNQ, which was previously a Tourism & Events Queensland role, became a shared position between TEQ & TTNQ. This shared role is to enhance the partnership between the two organizations and facilitating relationships with Local Tourism Organization, Local & State Government Dept., development associations and industry.

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FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND ABN 94 009 953 084

ANNUAL FINANCIAL REPORT

30 JUNE 2014

58/101 FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

CONTENTS

STATUTORY FINANCIAL REPORT Page

Directors’ report 1

Statement of financial position 7

Statement of profit or loss and other comprehensive income 8

Statement of changes in equity 9

Statement of cash flows 10

Notes to the financial statements 11

Directors’ declaration 30

Independent auditor’s report 31

Lead auditor’s independence declaration 33

59/101 FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2014

The directors present their report together with the financial statements of Far North Queensland Promotion Bureau Limited (the Company) for the financial year ended 30 June 2014 and the auditor’s report thereon.

DIRECTORS

The directors of the Company at any time during or since the end of the financial year are:

Name and qualifications Special responsibilities Experience

Mr Stephen Gregg Chair Executive Chair – Tourism and Events MBA – Griffith University Appointed Director Queensland Chair – Platinum Forum

Mr James Dixon Deputy Chair Managing Director – Down Under Tours General Director General Director – Advance Cairns Member – Membership Strategic Panel Chair – Sports Tourism Strategic Panel

Mr Richard Blanchette Director – Southern Zone Vice Chair – Tropical Coast Tourism Diploma – Business Inc. Director – Tourism Matters Mission Beach Business & Tourism Management Executive Committee Tourism Coordinator – Cassowary Coast Regional Council

Mr John Lucas General Director General Manager – Hilton Cairns Chair – Japan Strategic Panel Member – Membership Strategic Panel Member – Finance & Risk Management Committee

Mrs Cheryl Kelly General Director Tourism Marketing Services Chair – Western Markets Strategic Branch manager – ATEC North Panel Queensland

Mr Wayne Lapthorne Director – Cairns South North Queensland State Manager - Avis (retired 9 July 2014) Member – Finance & Risk Australia Management Committee

Mr Ross Steele General Director General Manager – Cairns Convention Bachelor of Business (Acc), Chair – Finance & Risk Management Centre Deakin University Committee Treasurer – ICCA Australia Certified Practising Accountant Chair – Business Events Strategic BECA – Company Secretary Panel General Director – Advance Cairns

60/101 1 FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

DIRECTORS’ REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2014

Name and qualifications Special responsibilities Experience

EUR ING Kevin Brown MBA, Appointed Marketing Partner CEO North Queensland Airports MSc, BEng (Hons), CEng, FIET, representative 25 years in the aviation industry GAICD Board member – CIAF Board Member – Advance Cairns

Mr Gordon Wellham Director – Cairns North Chair – Tourism Port Douglas Daintree Member of the Order of Australia Director – Exemplar Coaches and GAICD Limousines Bachelor of Economics Graduate Dip. Strategic Studies Dip. Applied Science Graduate of United States Defence Resources Management Institute

Mr Allan Tan General Director 20 + years in the Hotel-Casino industry Honours degree in Commerce Chair – Greater China and Asia Director Reef Casino Trust (Accounting) from the University Strategic Panel Director Casino Canberra Limited of Birmingham, England CEO – The Reef Hotel Casino Member of the Institute of Executive Director – Casinos Austria Chartered Accountants in International Limited England and Wales Member of Chartered Secretaries in Australia

Mr Michael Healy General Director Director – Access Community Housing Company Ltd Group Director Sales & Marketing – Quicksilver Group

Mr Ron Livingston Director – Tropical Tablelands Managing Director Pinnacle Tourism (retired 29 October 2013) /Remote Area Zone Marketing Pty Ltd Member – Membership Strategic Member ATEC National Indigenous Panel Tourism Taskforce Vice President Skal International Cairns Judge – Queensland Tourism Awards Chair Cairns Tourism Association Director – ATEC Chair – NQ Branch ATEC Director – Townsville Enterprises Pty Ltd Chair – Sunshine Coast Tourism and Development Board

61/101 2

FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

DIRECTORS’ REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2014

Name and qualifications Special responsibilities Experience

Mr Paul Fagg Director – Tropical Tablelands Manager - Investment Attraction at (elected 29 October 2013) /Remote Area Zone Department of State Development, Member – Membership Strategic Infrastructure and Planning Panel Vice Chair Mareeba Heritage Centre Chair – Regional LTO/LTA Group Treasurer – Mareeba Childcare & Member – Alliance for Sustainable kindergarten Inc. Tourism

COMPANY SECRETARY

Ms Andrea Fogarty CA GAICD was appointed to the position of company secretary in March 2004.

DIRECTORS’ MEETINGS

The number of meetings and number of meetings attended by each of the directors of the Company during the financial year are: Board Meetings F&RMC Director No of meetings No of meetings HeldA AttendedB HeldA AttendedB

Mr Stephen Gregg 7 7 7 5 Mr James Dixon 7 6 - - Mr Richard Blanchette 7 7 - - Mr John Lucas 7 7 1 1 Mrs Cheryl Kelly 7 6 - - Mr Wayne Lapthorne (retired 9 July 2014) 7 3 6 3 Mr Ross Steele 7 7 7 7 Mr Kevin Brown 7 4 - - Mr Gordon Wellham 7 6 - - Mr Allan Tan 6 3 - - Mr Michael Healy 7 2 - - Mr Ron Livingston (retired 29 October 2013) 2 0 - - Mr Paul Fagg (elected 29 October 2013) 5 4 - -

A Number of meetings eligible to attend B Number of meetings attended

The Finance and Risk Management Committee comprising Ross Steele as Chair, Stephen Gregg, Wayne Lapthorne and attended by the CEO, Rob Giason (to December 2013) Alex deWaal (from January 2014) , Company accountant and Company Secretary, Andrea Fogarty and Grant Thornton partner Graham Coonan, met during the financial year. The purpose is to discharge the board responsibilities as they relate to:  The financial reporting process;  The existence and maintenance of internal controls and accounting systems; and  Corporate governance.

MEMBERSHIP

Classes of membership

The Company is a company limited by guarantee. Under the Company’s constitution, there are five classes of membership.

62/101 3 FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

DIRECTORS’ REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2014

Members’ liability

Each member of the Company undertakes to contribute to the assets of the Company in the event of it being wound up while that person is a member or within one year after that person ceased to be a member for payment of the debts and liabilities of the Company contracted before that person ceased to be a member and of the costs, charges and expenses of winding up and for adjustment of the rights of the contributors amongst themselves, such amount as may be required, not exceeding $10.

OBJECTIVES

The Company’s objective is to build destination awareness for the Far North Queensland region in Australia and international markets in order to deliver maximum visitor numbers and expenditure. The Company will meet this objective through:  Industry leadership  Marketing the region to convert interest to sales  Provide advocacy  Securing and leveraging funds  Providing insights, monitoring and strategic direction  Boosting positive perceptions of industry  Maximising collective economical benefit for the region  Stimulating sector development and diversification

PRINCIPAL ACTIVITIES

The principal activities of the Company during the course of the financial year related to tourism promotion of Tropical North Queensland. There were no significant changes in the nature of the activities of the Company during the year. The net surplus/(deficit) from ordinary activities after tax amounted to $23,730 (2013: ($102,261)).

Operating surplus/(deficit) from ordinary activities1 2014 2013 $ $ Operating surplus (deficit) from ordinary activities before depreciation and amortisation expenses, 31,801 (39,787) Depreciation and amortisation expenses (48,071) (87,474) Expenditure of Government grant funds recognised as revenue in 2012/2013 (AASB 1004 Contributions) (25,000) 25,000 G20 revenue for 2014/2015 65,000 -

Net surplus (deficit) for the year 23,730 (102,261)

There were no significant changes in the nature of the activities of the Company during the year.

1 Basis of preparation: Operating surplus/(deficit) from ordinary activities is a non-AASB measure that is used as the basis for determining operational results for the financial year. Operating surplus/(deficit) from ordinary activities is determined as net surplus/(deficit) for the year, adjusted for unexpended government grants. Unexpended grants are funds that have been received and remain unspent at reporting date which have been recorded as revenue in accordance with AASB 1004 Contributions. Operating surplus/(deficit) from ordinary activities has not been audited or reviewed.

63/101 4 FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

DIRECTORS’ REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2014

KEY PERFORMANCE INDICATORS

The Company measures its performance through:  Aviation - increased seat capacity and charters  Increased consumer website visitation  Increased international and domestic media visits  Increased international and domestic trade engagement activities  Increased domestic visitation  International visitation movements in line with forecasts  Increased business events visitation (meetings, delegates and delegate days)  Increased funding  Membership retention  Industry stakeholder engagement.

CORPORATE GOVERNANCE STATEMENT

Responsibilities

The directors are responsible to the members for the performance of the Company in both the short and the longer term and seek to balance these sometimes competing objectives in the best interests of the Company as a whole. Their focus is to enhance the interests of members and other key stakeholders and to ensure the Company is properly managed. The board draws on relevant corporate governance best practice principles to assist it to contribute to the performance of the Company.

The functions of the board include:  Review and approval of corporate strategies, the annual budget and financial plans;  Overseeing and monitoring organisational performance and the achievement of the Company’s strategic goals and objectives;  Monitoring financial performance including approval of the annual financial reports and liaison with the Company’s auditors;  Appointment of, and assessment of the performance of, the chief executive officer;  Ensuring there are effective management processes in place and approving major corporate initiatives;  Enhancing and protecting the reputation of the Company;  Ensuring the significant risks facing the Company have been identified and appropriate and adequate control, monitoring and reporting mechanisms are in place; and  Reporting to members.

Board members

Details of the members of the board, their qualifications, term of office and independence status are set out in the directors’ report under the heading “Directors”. The board operates in accordance with the principles set out in the Company’s constitution, including:  The board is comprised of not less than 9 and not more than 15 directors. At the date of this report the board consisted of 10 members.  The Chair of the board is elected by the full board.  There shall be up to 9 elected directors. The board has the power at any time and from time to time to appoint no more than 6 directors.

64/101 5 FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

DIRECTORS’ REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2014

LEAD AUDITOR’S INDEPENDENCE DECLARATION

The lead auditor’s independence declaration is set out on page 33 and forms part of the directors’ report for the financial year ended 30 June 2014.

This report is made out in accordance with a resolution of the directors:

______Director

Dated at Cairns this 15th day of September 2014.

65/101 6 FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2014 2014 2013 Note $ $ ASSETS Cash and cash equivalents 5 702,274 906,134 Investments 528,695 - Trade and other receivables 6 360,434 667,038 Inventories 7 952 17,538 Prepayments 54,876 167,591

Total current assets 1,647,231 1,758,301

Property, plant and equipment 8 182,395 214,819

Total non-current assets 182,395 214,819

Total assets 1,829,626 1,973,120

LIABILITIES Trade and other payables 9 1,076,862 883,711 Employee benefits 10 90,067 129,139 Provisions 11 35,960 16,287 Deferred income/revenue 12 232,929 553,506

Total current liabilities 1,435,818 1,582,643

Provisions 11 14,770 35,168

Total non-current liabilities 14,770 35,168

Total liabilities 1,450,587 1,617,811

Net assets 379,039 355,309

EQUITY Retained surplus 379,039 355,309

Total equity 379,039 355,309

The accompanying notes are an integral part of these financial statements.

66/101 7 FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2014 2014 2013 Note $ $ INCOME Revenue 15 6,077,196 6,610,774

EXPENSES Administration 1,341,961 1,396,495 Industry representation 193,755 96,143 Marketing and promotion 4,541,057 5,235,247 Research 5,682 13,045

6,082,455 6,740,930

Results from operating activities (5,259) (130,156) Finance income 17 28,989 27,895

Net surplus/(deficit) before tax 23,730 (102,261) Tax expense 3(l) - -

Net surplus/(deficit) for the year 23,730 (102,261)

Other comprehensive income - -

Total comprehensive income for the year 23,730 (102,261)

The accompanying notes are an integral part of these financial statements.

67/101 8 FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2014 2014 2013 $ $ RETAINED SURPLUS Balance at 1 July 355,309 457,570

Total comprehensive income for the year Surplus/(deficit) for the year 23,730 (102,261) Total other comprehensive income - -

Total comprehensive income for the year 23,730 (102,261)

Balance at 30 June 379,039 355,309

The accompanying notes are an integral part of these financial statements.

68/101 9 FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2014 2014 2013 Note $ $ CASH FLOWS FROM OPERATING ACTIVITIES

Cash receipts from: Industry contributions and membership 2,490,928 2,937,077 Government and institutional grants 3,188,202 3,116,565 Commission income 236,467 294,953 Rental income from property subleases 93,474 90,717 Sponsorships 499,411 535,838 Sale of goods 4,536 5,137 Sundry revenue 155,873 146,743

Total cash receipts 6,668,891 7,127,030 Cash paid to suppliers and employees (6,357,397) (7,184,478)

Cash generated from operating activities 311,494 (57,448) Interest received 28,989 27,895

Net cash from/(used in) operating activities 19 340,483 (29,552)

CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of property, plant and equipment (15,648) (11,490) Acquisition of investments (528,695) -

Net cash from/(used in) investing activities (544,343) (11,490)

Net increase/(decrease) in cash and cash equivalents (203,860) (41,043)

Cash and cash equivalents at 1 July 5 906,134 947,177

Cash and cash equivalents at 30 June 5 702,274 906,134

The accompanying notes are an integral part of these financial statements.

69/101 10 FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

1. REPORTING ENTITY

Far North Queensland Promotion Bureau Limited (the Company) is a company domiciled in Australia. The address of the Company’s registered office is 51 The Esplanade, Cairns QLD, 4870. The Company is a not-for-profit entity and primarily is involved in promotion and development of tourism in Far North Queensland.

2. BASIS OF PREPARATION

(a) Statement of compliance

The financial statements are general purpose financial statements which have been prepared in accordance with Australian Accounting Standards (AASBs) adopted by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. Because the Company is a not-for-profit entity and AASBs include requirements for not-for- profit entities which are inconsistent with International Financial Reporting Standards (IFRSs), the financial statements of the Company do not comply with IFRSs and interpretations adopted by the International Accounting Standards Board.

The financial statements were approved by the Board of Directors on the date shown on the directors’ declaration.

(b) Basis of measurement

The financial statements have been prepared on the historical cost basis.

(c) Functional and presentation currency

These financial statements are presented in Australian dollars, which is the Company’s functional currency.

(d) Use of estimates and judgements

The preparation of financial statements in conformity with AASBs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

Management does not believe that there are assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year.

(e) Economic dependence and going concern

The financial statements have been prepared on a going concern basis which contemplates continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business.

The Company is a not-for-profit entity and is reliant upon ongoing funding being provided by the funding bodies in order to continue its operations at current levels. The directors have no reason to believe that the required funding will not be forthcoming for the foreseeable future. However should future funding be significantly reduced or curtailed, the Company would be unlikely to be able to continue its operations at current levels.

70/101 11 FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

3. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies set out below have been applied consistently to all periods presented in these financial statements.

(a) Foreign currency

Transactions in foreign currencies are translated to Australian dollars at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to Australian dollars at the foreign exchange rate at that date. Foreign currency differences arising on translation are recognised in income or expense.

(b) Financial instruments

(i) Non-derivative financial assets

The Company initially recognises loans and receivables and deposits on the date that they are originated. All other financial assets are recognised initially on the trade date at which the Company becomes a party to the contractual provisions of the instrument.

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Company is recognised as a separate asset or liability.

Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Company has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

The Company has the following non-derivative financial assets:

Loans and receivables

Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition loans and receivables are measured at amortised cost using the effective interest method, less any impairment losses.

Loans and receivables comprise cash and cash equivalents and trade and other receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash balances and call deposits with original maturities of three months or less.

(ii) Non-derivative financial liabilities

The Company initially recognises financial liabilities on the trade date at which the Company becomes a party to the contractual provisions of the instrument.

The Company derecognises a financial liability when its contractual obligations are discharged or cancelled or expire.

The Company classified non-derivative financial liabilities into the other financial liabilities category. Such financial liabilities are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition these financial liabilities are measured at amortised cost using the effective interest rate method.

Financial liabilities comprise trade and other payables.

71/101 12 FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(b) Financial instruments (continued)

(iii) Capital

The Company is a company limited by guarantee. The Company has no share capital.

Dividends

The Company’s constitution precludes it from distributing any surpluses to members.

(c) Property, plant and equipment

(i) Recognition and measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses.

Cost includes expenditures that are directly attributable to the acquisition of the asset.

Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognised in income or expenses.

(ii) Subsequent costs

Ongoing repairs and maintenance and minor renewals to maintain the operational capacity of an existing asset is expensed as incurred. Expenditure that relates to replacement of a major component of an asset to maintain its service potential is capitalised.

(iii) Depreciation

Items of property, plant and equipment are depreciated from the date that they are installed and are ready for use, or in respect of internally constructed assets, from the date that the asset is completed and ready for use.

Depreciation is calculated to write off the cost of property, plant and equipment less their estimated residual values using the straight line basis over their estimated useful lives. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Company will obtain ownership by the end of the lease term.

The estimated useful lives in the current and comparative years of significant items of property, plant and equipment are as follows:  Leasehold improvements 3- 6 years  Computer equipment 2- 5 years  Office furniture 2-15 years

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

72/101 13 FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(d) Inventories

Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the first-in first-out principle, and includes expenditure incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. In the case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity.

Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

(e) Impairment

(i) Non-derivative financial assets

A financial asset is assessed at each reporting date to determine whether there is any objective evidence that it is impaired. A financial asset is impaired if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset, and that the loss event(s) had an impact on the estimated future cash flows of that asset that can be estimated reliably.

Objective evidence that financial assets are impaired can include default or delinquency by a debtor, restructuring of an amount due to the Company on terms that the Company would not consider otherwise, or indications that a debtor or issuer will enter bankruptcy.

The Company considers evidence of impairment for financial assets measured at amortised cost (loans and receivables) at a specific asset level.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. Losses are recognised in finance costs and reflected in an allowance account against loans and receivables. When an event occurring after the impairment was recognised causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through other income.

(ii) Non-financial assets

The carrying amounts of the Company’s non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists then the asset’s recoverable amount is estimated. An impairment loss is recognised if the carrying amount of an asset exceeds its estimated recoverable amount.

The recoverable amount of an asset is the greater of its value in use and its fair value less costs to sell. As the Company is a not-for-profit entity, value in use is the depreciated replacement cost of an asset as the future economic benefits of the asset are not primarily dependent on the asset’s ability to generate net cash inflows and as the entity would, if deprived of the asset, replace its remaining future economic benefits.

Impairment losses are recognised in expenses. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

73/101 14 FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(f) Employee benefits

(i) Short-term benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognised for the amount expected to be paid under short-term cash bonus or profit- sharing plans if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(ii) Defined contribution plans

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution plans are recognised as a personnel expense in the periods during which services are rendered by employees. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in future payments is available. Contributions to a defined contribution plan that are due more than 12 months after the end of the period in which the employees render the service are discounted to their present value.

(iii) Other long-term employee benefits

The Company’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods plus related on-costs; that benefit is discounted to determine its present value, and the fair value of any related assets is deducted. The discount rate is the yield at the reporting date on AA credit-rated or government bonds that have maturity dates approximating the terms of the Company’s obligations and that are denominated in the same currency in which the benefits are expected to be paid. The calculation is performed using the projected unit credit method. Any actuarial gains or losses are recognised in expenses in the period in which they arise.

(iv) Termination benefits

Termination benefits are recognised as an expense when the Company is demonstrably committed, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognised as an expense if the Company has made an offer encouraging voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably. If benefits are payable more than 12 months after the reporting period, then they are discounted to their present value.

(g) Provisions

A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance costs.

74/101 15 FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(h) Revenue

(i) Sale of goods

Revenue from the sale of goods in the course of ordinary activities is measured at the fair value of the consideration received or receivable, net of returns. Revenue is recognised when persuasive evidence exists, usually in the form of an executed sales agreement, that the significant risks and rewards of ownership have been transferred to the customer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, there is no continuing management involvement with the goods, and the amount of revenue can be measured reliably. If it is probable that discounts will be granted and the amount can be measured reliably, then the discount is recognised as a reduction of revenue as the sales are recognised.

The timing of the transfer of risks and rewards varies depending on the individual terms of the sales agreement.

(ii) Commissions

When the Company acts in the capacity of an agent rather than as the principal in a transaction, the revenue recognised is the net amount of commission made by the Company.

(iii) Rental income

Rental income is recognised on a straight line basis as it accrues.

(iv) Membership income

Membership income is recognised in the period that the membership renewal/purchase pertains to.

(v) Industry contributions

Industry contribution income is recognised in the period that the purchased activity occurs.

(vi) Sponsorship income

Sponsorship income is recognised as it accrues in the period to which it relates. Certain sponsorship income which is received in kind is brought to account at its fair value.

(i) Government grants and other contributions of assets

Government grants and other contributions of assets are accounted for in accordance with AASB 1004 Contributions based on whether they are reciprocal or non-reciprocal in nature and are measured at the fair value of the contributions received or receivable.

Reciprocal transfers are those where approximately equal value is exchanged in the transfer between the transferor (grantor) and the transferee (grantee). Non-reciprocal transfers are those where equal value is not exchanged.

(i) Reciprocal transfers

Where grants and other contributions are received that are reciprocal in nature, revenue is recognised over the term of the funding arrangements. The Company currently does not have any reciprocal grants.

75/101 16 FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(i) Government grants and other contributions of assets (continued)

(ii) Non-reciprocal transfers

Grants and other contributions that are non-reciprocal in nature are recognised as revenue when, and only when, all the following conditions have been satisfied:  the Company obtains control of the contribution or the right to receive the contribution;  it is probable that the economic benefits comprising the contribution will flow to the Company; and  the amount of the contribution can be measured reliably.

(j) Leases

(i) Leased assets

Assets held by the Company under leases which transfer to the Company substantially all the risks and rewards of ownership are classified as finance leases. On initial recognition, the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset.

Assets held under other leases are classified as operating leases and are not recognised in the Company’s statement of financial position.

(ii) Lease payments

Payments made under operating leases are recognised in expenses on a straight-line basis over the term of the lease. Lease incentives received are recognised as an integral part of the total lease expense, over the term of the lease.

Minimum lease payments made under finance leases are apportioned between the finance costs and the reduction of the outstanding liability. The finance costs are allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.

(iii) Determining whether an arrangement contains a lease

At inception of an arrangement, the Company determines whether such an arrangement is or contains a lease. This will be the case if the following two criteria are met:  the fulfilment of the arrangement is dependent on the use of a specific asset or assets; and  the arrangement contains a right to use the asset(s).

At inception or upon reassessment of the arrangement, the Company separates payments and other consideration required by such an arrangement into those for the lease and those for other elements on the basis of their relative fair values. If the Company concludes for a finance lease that it is impracticable to separate the payments reliably, an asset and a liability are recognised at an amount equal to the fair value of the underlying asset. Subsequently the liability is reduced as payments are made and an imputed finance charge on the liability is recognised using the Company’s incremental borrowing rate.

(k) Finance income

Finance income comprises interest income on funds invested. Interest income is recognised as it accrues in finance income, using the effective interest method.

76/101 17 FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(l) Tax

(i) Income tax

The Company has been granted exemption from income tax under Division 50 of the Income Tax Assessment Act 1997.

(ii) Goods and services tax

Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or part of the expense.

Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the statement of financial position.

Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.

(m) New standards and interpretations not yet adopted

A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 July 2013, and have not been applied in preparing these financial statements. None of these is expected to have a significant effect on the financial statements of the Company, except for AASB 9 Financial Instruments, which becomes mandatory for annual periods beginning on or after 1 January 2018 and could change the classification and measurement of financial assets. The Company does not plan to adopt this standard early and the extent of the impact has not been determined.

4. DETERMINATION OF FAIR VALUES

A number of the Company’s accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes. Where applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.

Sponsorship income

Certain sponsorship income is received in a form other than cash or cash equivalents (Note 3(h)(vi)). The fair value of the asset or service received for no or minimal cash consideration is usually determined from market-based evidence or as agreed between the Company and the sponsor on an arm’s length basis. 2014 2013 $ $ 5. CASH AND CASH EQUIVALENTS

Bank balances 702,274 394,980 Call deposits - 511,154

Cash and cash equivalents in the statement of cash flows 702,274 906,134

77/101 18 FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 2014 2013 $ $ 6. TRADE AND OTHER RECEIVABLES

Current Trade receivables 360,434 667,038

The Company’s exposure to credit and currency risk and impairment losses related to trade and other receivables is disclosed in Note 13.

7. INVENTORIES

Visitor Information Centre stock 952 1,148 Sponsored prizes stock - 16,390

952 17,538

8. PROPERTY, PLANT AND EQUIPMENT

Leasehold Computer Office Total Improvements Equipment Furniture $ $ $ $ Cost Balance at 1 July 2012 1,618,453 194,883 178,512 1,991,848 Additions 4,571 - 6,919 11,490 Disposals - (173,346) (66,262) (239,608) Balance at 30 June 2013 1,623,024 21,537 119,169 1,763,730

Balance at 1 July 2013 1,623,024 21,537 119,169 1,763,730 Additions - 1,770 13,878 15,648 Disposals - (517) (164) (681) Balance at 30 June 2014 1,623,024 22,790 132,883 1,778,697

Depreciation and impairment Balance at 1 July 2012 (1,409,478) (157,823) (133,745) (1,701,046) Depreciation for the year (35,976) (34,149) (17,349) (87,474) Disposals - 173,346 66,262 239,608 Balance at 30 June 2013 (1,445,454) (18,626) (84,832) (1,548,912)

Balance at 1 July 2013 (1,445,454) (18,626) (84,832) (1,548,912) Depreciation for the year (35,514) (2,651) (9,906) (48,071) Disposals - 517 164 681 Balance at 30 June 2014 (1,480,968) (20,760) (94,574) (1,596,302)

Carrying amounts At 1 July 2012 208,975 37,060 44,767 290,802 At 30 June 2013 177,570 2,911 34,337 214,819 At 30 June 2014 142,056 2,030 38,309 182,395

78/101 19 FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 2014 2013 Note $ $ 9. TRADE AND OTHER PAYABLES

Trade payables 373,451 343,920 Accrued expenses 621,847 452,501 Other payables 81,564 87,290

1,076,862 883,711

The Company’s exposure to currency and liquidity risk related to trade and other payables is disclosed in Note 13.

10. EMPLOYEE BENEFITS

Current Annual leave 90,067 129,139

The Company makes contributions to defined contribution superannuation plans. The amount recognised as an expense was $150,554 for the year ended 30 June 2014 (2013: $145,076.)

11. PROVISIONS

Current Long service leave 35,960 16,287

Non-current Long service leave 14,770 35,168

Balance at 1 July 51,457 44,137 Provisions made during the year 9,274 7,320 Provisions used during the year 10,001 -

Balance at 30 June 50,730 51,457

Long service leave

The provision for long service leave represents the Company’s best estimate of the future benefit that employees have earned. The amount and timing of the associated outflows is uncertain and dependant on employees attaining the required years of services. Where the Company no longer has the ability to defer settlement of the obligation beyond 12 months from the reporting date, liabilities are presented as current. This would usually occur when employees are expected to reach the required years of service in the 12 months from reporting date. The discount rate used to determine the present value of future benefits at 30 June 2014 was 3.40% (2013: 3.30%).

79/101 20 FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 2014 2013 $ $ 12 DEFERRED INCOME/REVENUE

Membership subscriptions received in advance 163,202 217,632 Industry contributions 69,727 335,874

232,929 553,506

This note presents information about income received by the Company for expenditure in future accounting periods. All non-grant income received for expenditure in future accounting periods is recognised as deferred revenue.

13. FINANCIAL INSTRUMENTS

(a) Financial risk management

(i) Overview

The Company has exposure to the following risks from its use of financial instruments:  credit risk  liquidity risk  market risk.

This note presents information about the Company’s exposure to each of the above risks, its objectives, policies and processes for measuring and managing risk, and the management of capital.

(ii) Risk management framework

The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. The Board has established the Finance and Risk Management Committee, which is responsible for developing and monitoring risk management policies. The committee reports regularly to the Board of Directors on its activities.

Risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Finance and Risk Management Committee oversees how management monitors compliance with the Company’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.

80/101 21 FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

13. FINANCIAL INSTRUMENTS (CONTINUED)

(b) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers, members and sundry organisations.

Exposure to credit risk

The carrying amount of the Company’s financial assets represents the maximum credit exposure. The Company’s maximum exposure to credit risk at the reporting date was as follows: 2014 2013 $ $

Cash and cash equivalents 702,274 906,134 Investments 528,695 - Trade and other receivables 360,434 667,038

1,591,403 1,573,172

Trade and other receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the Company’s customer base, including the default risk of the industry in which customers operate, has less of an influence on credit risk.

At the reporting date there were no significant concentrations of credit risk.

The Company has established a credit policy under which each new customer is analysed individually for creditworthiness. The Company reviews external ratings, when available, and in some cases bank references.

The Company does not require collateral in respect of trade and other receivables.

The maximum exposure to credit risk for trade and other receivables at the reporting date by geographic region was as follows:

Australia 360,434 667,038

The maximum exposure to credit risk for trade and other receivables at the reporting date by type of customer was as follows:

Government entities 218,945 432,547 Non-Government entities 141,489 234,491

360,434 667,038

The Company’s most significant customer, Austrade, accounts for $150,000 of the trade receivables carrying amount at 30 June 2014 (2013: nil).

81/101 22 FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 2014 2013 $ $ 13. FINANCIAL INSTRUMENTS (CONTINUED)

(b) Credit risk (continued)

Exposure to credit risk (continued)

Impairment losses

The aging of trade and other receivables at the reporting date that were not impaired was as follows:

Neither past due nor impaired 342,767 554,900 Past due 1-30 days 3,467 57,875 Past due 31-90 days 1,900 24,930 Past due 91-120 days 12,300 29,333

360,434 667,038

There are no allowances for impairment losses in respect of trade and other receivables at 30 June 2014 (2013: nil). During the year, the Company wrote off $594 in bad debts (2013: $4,125)

(c) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

Typically the Company ensures that it has sufficient cash on demand to meet expected operational expenses for a period of 60 days, including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.

The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements:

Carrying Contractual 6 months 6-12 More than 2014 amount cash flow or less months 1-2 years 2-5 years 5 years $ $ $ $ $ $ $

Trade and other payables 1,076,862 1,076,862 1,076,862 - - - - 2013

Trade and other payables 883,711 883,711 883,711 - - - -

It is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or at significantly different amounts.

82/101 23 FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

13. FINANCIAL INSTRUMENTS (CONTINUED)

(d) Market risk

Market risk is the risk that changes in market prices, such as interest rates will affect the Company’s income. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

(i) Currency risk

The Company has only minor exposure to foreign currency risk on some sales and purchases.

(ii) Interest rate risk 2014 2013 $ $ Profile

At the reporting date the interest rate profile of the Company’s interest-bearing financial instruments was as follows:

Variable rate instruments Financial assets 702,274 906,134

Fixed rate instruments Term deposit 528,695 -

Fair value sensitivity analysis for fixed rate instruments

The Company does not account for any fixed rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect net surplus.

Cash flow sensitivity analysis for variable rate instruments

A change of 100 basis points in interest rates at the reporting date would have increased (decreased) equity and net surplus by the amounts shown below. This analysis assumes that all other variables remain constant.

100bp 100bp increase decrease 2014 $ $

Financial assets 7,023 (7,023)

Cash flow sensitivity (net) 7,023 (7,023)

2013 $ $

Financial assets 9,061 (9,061) Cash flow sensitivity (net) 9,061 (9,061)

(e) Capital management

The Board’s policy is to maintain a capital base sufficient to maintain the confidence of creditors and funding providers and to sustain the growth of the Company, future operations and plans. Capital consists of retained surpluses of the Company. The Board of Directors regularly monitors the Company’s operating surplus and cash flows.

83/101 24 FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

13. FINANCIAL INSTRUMENTS (CONTINUED)

(e) Capital management (continued)

The Company’s net debt to equity ratio at the reporting date was as follows: 2014 2013 $ $

Total liabilities 1,450,587 1,617,811 Less: Cash and cash equivalents (702,274) (906,134)

Net debt 748,313 711,677

Total equity 379,039 355,309

2014 2013

Net debt to equity ratio at 30 June 1.97 2.00

There were no changes in the Company’s approach to capital management during the year.

The Company is not subject to externally imposed capital requirements.

(f) Accounting classifications and fair values

The fair values of financial assets and liabilities approximate the carrying amounts shown in the statement of financial position.

Estimation of fair values

For trade and other receivables/payables with a remaining life of less than one year, the notional amount is deemed to reflect the fair value. All other receivables/payables are discounted to determine the fair value. At 30 June 2014, no financial instruments required discounting.

14. CAPITAL AND RESERVES

Company limited by guarantee

The Company is a company limited by guarantee. Accordingly, each member of the Company undertakes to contribute to the assets of the Company in the event of it being wound up while that person is a member or within one year after that person ceased to be a member for payment of the debts and liabilities of the Company contracted before that person ceased to be a member and of the costs, charges and expenses of winding up and for adjustment of the rights of the contributors amongst themselves, such amount as may be required, not exceeding $10.

2014 2013 15. REVENUE $ $

Industry contributions and membership 2,560,682 2,801,725 Government and institutional grants 2,616,731 2,833,242 Commission income 214,970 268,139 Rental income from property subleases 84,976 82,470 Sponsorship 454,010 487,125 Sale of goods 4,124 4,670 Sundry revenue 141,703 133,403

6,077,196 6,610,774

84/101 25 FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 2014 2013 $ $ 16. PERSONNEL EXPENSES

Included in expenses for the year are the following personnel expenses:

Salaries and wages 1,631,287 1,676,566 Contributions to defined contribution superannuation plans 150,554 145,076 Decrease in liability for annual leave (39,072) 4,297 Increase in liability for long service leave 9,274 7,320

1,752,043 1,833,259

17. FINANCE INCOME

Recognised in net surplus/(deficit)

Interest income on: Investments 28,989 27,895

18. OPERATING LEASES

The Company leased a number of motor vehicles under operating leases, which terminated during the year. During the year the Company commenced a new lease for computer hardware. The lease is for a period of 3 years, with an option to renew the lease after that date.

During the year ended 30 June 2014, $35,912 was recognised as an expense in respect of operating leases (2013: $34,817).

19. RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES

Cash flows from operating activities

Net surplus/(deficit) for the year 23,730 (102,261)

Adjustments for: Depreciation 48,071 87,474 Bad debts written off 594 4,125

72,395 (10,662)

Change in trade and other receivables 306,009 (129,206) Change in inventories 16,586 2,848 Change in trade and other payables and deferred revenue (127,425) 189,475 Change in prepayments 112,716 (93,624) Change in provisions and employee benefits (39,798) 11,617

Net cash from/(used in) operating activities 340,483 (29,552)

85/101 26 FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

20. RELATED PARTIES

Transactions with key management personnel

In addition to their salaries, the Company also provides non-cash benefits to key management personnel, and contributes to a post-employment defined contribution superannuation fund on their behalf.

The following were key management personnel of the Company at any time during the reporting period and unless otherwise indicated were key management personnel for the entire period.

Directors Balance Directors company Balance TTNQ owed to owed to TTNQ Directors company

2014 2013 2014 2013 $ $ $ $

Stephen Gregg 35,835 348,360 55,000 97,350 James Dixon (Deputy Chair) - - 714 3,275 Richard Blanchette - - - - John Lucas 1,100 - 189 630 Cheryl Kelly - - - - Wayne Lapthorne (retired 9 July - - 2,135 2,038 2014) Ross Steele - - - - Kevin Brown - 69,034 - - Gordon Wellham 1,001 - 7,307 - Ron Livingston (retired 29 October 1,015 - - - 2013) Michael Healy - - - - Allan Tan 17,389 - - - Paul Fagg (elected 29 October 2013) - - - -

Executives Rob Giason (Chief Executive Officer resigned December 2013) Alex deWaal (Chief Executive Officer employed January 2014) Andrea Fogarty (Company Secretary and Director Corporate Services) Brian Hennessy (Director of Sales & Marketing) Rosie Douglas (Director Business Events Cairns and Great Barrier Reef) Sharyn Brydon (Director Destination Development) Kate Duffy (Director Destination Content)

2014 2013 $ $ (i) Key management personnel compensation

The key management personnel compensation comprised:

Short-term employee benefits 583,226 534,560 Other long term benefits 7,670 2,486 Post-employment benefits 78,863 45,974 Termination benefits 15,282 -

685,041 583,020

(ii) Loans to key management personnel

There were no loans made, guaranteed or secured by the Company to key management personnel during the year (2013: nil).

86/101 27 FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

21. RELATED PARTIES (CONTINUED)

Transactions with key management personnel (continued)

(iii) Key management personnel and director transactions

A number of key management personnel, or their related parties, hold positions in other entities that result in them having control or significant influence over the financial or operating policies of these entities.

A number of these entities transacted with the Company during the year. The terms and conditions of the transactions with key management personnel and their related parties were no more favourable than those available, or which might reasonably be expected to be available, on similar transactions to non-key management personnel related entities on an arm’s length basis.

The aggregate value of transactions and outstanding balances relating to key management personnel and entities over which they have control or significant influence were as follows:

2014 2013 Sales Purchases Sales Purchases $ $ $ $

James Dixon, Down Under Tours 8,728 50,215 5,932 83,431 Ross Steele, Cairns Convention Centre 23,365 7,688 21,975 181,677 Richard Blanchette, Tourism Matters Pty Ltd 990 - - - Cheryl Kelly, Tourism Marketing Services 1,440 - 960 - Stephen Gregg, Tourism and Events Qld 1,852,684 807,717 2,064,093 1,114,207 Ron Livingston, Pinnacle Tourism 510 - 1,671 - Michael Bowmaker, CAPTA Group - - 21,027 7,171 Michael Healy, Quicksilver Group 30,585 1,017 11,168 902 Allan Tan, Pullman Reef Hotel Casino 25,929 1,177 30,079 613 Gordon Wellham, Exemplar Limosines 5,175 10,907 2,750 5,373 Wayne Lapthorne, Avis North Queensland - 19,574 1,092 8,034 John Lucas, Cairns Hilton 20,935 4,393 3,785 94,564 Kevin Brown, Cairns Airport Pty Ltd 1,096,694 8,000 1,324,167 140 Paul Fagg, Department State Development, Infrastructure and Planning - - - -

From time to time directors of the Company, or their related entities, may purchase goods from the Company. These purchases are on the same terms and conditions as those entered into by other Company employees or customers.

Historically, the Company has intentionally sourced many of the directors of the Company from within its membership base. The membership payments for these member companies are on the same terms and condition as those of companies and businesses which do not have a representative on the Board.

87/101 28 FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 2014 2013 $ $ 22. AUDITOR’S REMUNERATION

Audit and review services Auditors of the Company – Grant Thornton Audit of financial statements 5,800 - Other regulatory audit services - -

5,800 -

Auditors of the Company – KPMG Audit of financial statements 17,275 25,250 Other regulatory audit services 952 5,800

18,227 31,050

Other services Auditors of the Company – Grant Thornton In relation to taxation services 800 -

Auditors of the Company – KPMG In relation to taxation services 450 1,702

88/101 29 FAR NORTH QUEENSLAND PROMOTION BUREAU LIMITED TRADING AS TOURISM TROPICAL NORTH QUEENSLAND

DIRECTORS’ DECLARATION

In the opinion of the directors of Far North Queensland Promotion Bureau Limited (the Company):

(a) the financial statements and notes are in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the Company’s financial position as at 30 June 2014 and of its performance for the financial year ended on that date; and

(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; and

(b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the directors:

Dated at Cairns this 15th day of September 2014.

______Director

89/101 30

Independent auditor’s report

Cairns Corporate Tower 15 Lake Street Cairns QLD 4870 Correspondence to: PO Box 7200 Cairns QLD 4870

T +61 7 4046 8888 F +61 7 4051 0116 Independent auditor’s report to the members of E [email protected] W www.grantthornton.com.au Far North Queensland Promotion Bureau Limited

We have audited the accompanying financial report of Far North Queensland Promotion Bureau Limited (the “Company”), which comprises the statement of financial position as at 30 June 2014, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information and the directors’ declaration.

Directors’ responsibility for the financial report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor’s responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by

Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies. 90/101 31 the directors, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.

Auditor’s opinion In our opinion, the financial report of Far North Queensland Promotion Bureau Limited is in accordance with the Corporations Act 2001, including:

(a) giving a true and fair view of the Company’s financial position as at 30 June 2014 and of its performance for the year ended on that date; and

(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.

GRANT THORNTON AUDIT PTY LTD Chartered Accountants

Graham Coonan Partner – Audit & Assurance

Cairns, 15 September 2014

3291/101

Lead auditor’s independence declaration

Cairns Corporate Tower 15 Lake Street Cairns QLD 4870 Correspondence to: PO Box 7200 Cairns QLD 4870

T +61 7 4046 8888 F +61 7 4051 0116 Lead auditor’s independence declaration to the directors of E [email protected] Far North Queensland Promotion Bureau Limited W www.grantthornton.com.au

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Far North Queensland Promotion Bureau Limited for the year ended 30 June 2014, I declare that, to the best of my knowledge and belief, there have been:

 No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

 No contraventions of any applicable code of professional conduct in relation to the audit.

GRANT THORNTON AUDIT PTY LTD Chartered Accountants

Graham Coonan Partner – Audit & Assurance

Cairns, 15 September 2014

Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.

33 92/101 1. Accommodation Daintree Eco Lodge & Spa 1.1 Backpacker Hostel Fitzroy Island Resort Cairns Sharehouse.com Freestyle Resort Port Douglas Gilligan's Backpackers Hotel & Resort Hibiscus Resort & Spa Nomads Cairns Holiday Inn Cairns The Friendly Backpacker Group - Northern Greenhouse Hotel Grand Chancellor Palm Cove Cairns Central YHA Il Palazzo Boutique Apartments Hotel 1.2 Bed & Breakfast/Farmstay Mantra Esplanade Allumbah Pocket Cottages Mantra Group Red Mill House Mantra Portsea 1.3 Caravan & Camping Parks Mantra Trilogy Resort Atherton Hallorans Leisure Park Marlin Waters Beachfront Apartments BIG4 Atherton Woodlands Tourist Park Vue Apartments Trinity Beach BIG4 Cairns Crystal Cascades Holiday Park Mercure Cairns Harbourside Cairns Coconut Holiday Resort Meridian Port Douglas Cairns Holiday Park Novotel Cairns Oasis Resort Cairns Sunland Leisure Park Oaks Lagoons Cape Tribulation Camping Oasis at Palm Cove Cape York Camping Punsand Bay Ocean Hotels & Tourism and Sunlover Reef Cruises Cooktown Orchid Travellers Park On the Beach Holiday Apartments Charlotte Street Pacific Hotel Cairns Ellis Beach Oceanfront Bungalow & Leisure Park Palm Cove Tropic Apartments Granite Gorge Nature Park Palm Royale Cairns Palm Cove Holiday Park Paradise Palms Resort Golf and Country Club Undara Experience Piermonde Apartments 1.4 Hotel/Motel/Apartment/Resorts 4 & 4.5 star Platypus Springs 201 Lake Street Port Douglas Peninsula Boutique Hotel Accor Hotels North Queensland QT Port Douglas AHL Hotels & Resorts Coral Tree Inn Alassio Palm Cove Rydges Esplanade Resort Cairns Amaroo at Trinity Rydges Plaza Cairns Australis Cairns Beach Resort Rydges Tradewinds Cairns Best Western Cairns Central Apartments Saravi Boutique Hotel Bloomfield Lodge Silky Oaks Lodge Cairns Colonial Club Southern Cross Atrium Apartments Cairns Harbour Lights Stay Well Hospitality Group Cairns Queens Court The Boutique Collection Cairns Sheridan Hotel The Canopy Rainforest Treehouses and Wildlife Sanctuary Cayman Villas Port Douglas The Hotel Cairns Coral Sands Resort The Lakes Cairns Resort and Spa Coral Towers Holiday Suites The Reef House and Spa 93/101 The Reef Retreat 1.7 Lodges/Guest Houses Tropic Towers Apartments Crystalbrook Lodge Verandahs Port Douglas Heritage Lodge & Spa Villa Paradiso Kehoe’s Rainforest Retreats Villa San Michele Rose Gums Wilderness Retreat 1.5 Hotel/Motel/Apartments/Resorts 5 Star Sicklebill Safaris Allamanda Palm Cove by Lancemore Coconut Grove 2. Activities, Tours & Attractions Green Island Resort 2.1 Adventure Hilton Cairns AJ Hackett Cairns Kewarra Beach Resort & Spa Babinda Kayaks Lizard Island Bad Fishy Mandalay Luxury Beachfront Apartments A Finger, The Marlin Marina Peppers Beach Club & Spa Palm Cove" Blazing Saddles Peppers Beach Club Port Douglas" Cairns Adventure Cruises - Reefcam P/L Pullman Cairns International" Flyboard Cairns Pullman Palm Cove Sea Temple Resort & Spa Foaming Fury Pullman Port Douglas Sea Temple Resort & Spa Heritage 4WD Tours & Kamp Out Safaris "Shangri-La Hotel, The Marina, Cairns Hot Air Balloon Cairns Shantara Resort Port Douglas Jungle Surfing Canopy Tours Sheraton Mirage Port Douglas Resort" Raging Thunder - Hot Air Ballooning Thala Beach Nature Reserve Raging Thunder - White Water Rafting The Reef Hotel Casino Skydive Cairns Waters Edge Apartments Cairns Small World Journeys 1.6 Hotel/Motel/Apartments/Resorts below 4 star The Crystal Caves All Seasons Cairns RnR Rafting Bay Village Tropical Retreat 2.2 Cultural Cairns Plaza Hotel CADCAI Cairns Queenslander Hotel & Apartments Cairns Civic Theatre Castaways Resort & Spa Mission Beach KuKu Yalanji Dreamtimr Tours Comfort Inn Discovery Cairns Mossman Gorge Centre Hides Hotel Cairns Raiforestation Nature Park High Chaparral Motel Small World Journeys Mareeba Lodge Tanks Art Centre Port Douglas Retreat Tjapukai Aboriginal Cultural Park Reef Palms Motel Torres Strait Heritage Pty Ltd Rendezvous Reef Resort UMI Arts Limited Royal Palm Villas Villa Marine Holiday Apartments & Motel

94/101 2.3 Day & Half Day Tours 2.7 Indigenous Experience Adventure North Australia Pty Ltd Cultural Place’ Australian Coffee Centre Echo Adventure & Cultural Camp BTS Tours Ingan Tours Cairns Harbour KuKu Yalanji Dreamtime Tours Cruises Mossman Gorge Centre Capta Group of Companies UMI Arts Limited Daintree Discovery Centre 2.8 Other Discovery Tours Australia Ambition Uniforms Doki Doki Tours Australian Coffee Centre Down Under Tours Australia Cairns Botanic Gardens Food Trail Tours Cairns Esplanade Golden Pride Wineries Conservation Volunteers Australia Herberton Historic Village DFO Cairns Jungle Surfing Canopy Tours DFS Australia Pty Ltd Jungle Tours & Trekking Great Barrier Reef Submarines Kuranda Scenic Railway 2.9 Reef Tours/Cruises Murdering Point Winery Aroona Luxury Boat Charters North Queensland Wildscapes Phototours Big Cat Green Island Reef Cruises Northern Experience Eco Tours Cairns Dive Centre Paronella Park Calypso Reef Charters Pty Ltd Port Douglas Connections Coral Princess Cruises Pty Ltd Reef and Rainforest Connections Crocodile – Express Daintree Connection Safari Tours Pty Ltd Daintree River Cruise Centre Skyrail Rainforest Cableway Deep Sea Divers Den Small World Journeys Down Under Cruise & Dive Tropical Horizons Tours Fitzroy Island Ferries Undara Experience Frankland Islands Cruise & Dive Walkabout Cultural Adventures Gamma Dreams Pty Ltd 2.4 Festivals/Events Great Adventures IRONMAN Mike Ball Dive Expeditions Queensland Rail Ocean Free & Ocean Freedom The Cairns Amateurs Ocean Safari 2.5 Food and Wine Tours Ocean Spirit Cruises Food Trail Tours Passions of Paradise Nerada Tea Pty Ltd Aquarius Sail and Snorkel 2.6 Galleries Poseidon Sailaway Cruises Cairns Regional Gallery Gab Titui Cultural Centre Janbal Gallery The Crystal Caves 95/101 2.9 Reef Tours/Cruises cont. Hartley’s Crocodile Adventures Pro Dive Cairns Heritage 4WD Tours & Kamp Out Safaris Quicksilver Cruises Kuranda Koala Gardens Silver Series The Canopy Rainforest Treehouses and Wildlife Sanctuary Quicksilver Group of Companies Wait-a-While Rainforest Tours Reef Magic Cruises Wet Tropics Management Authority Sea Swift Pty ltf Wildlife Habitat Seastar Cruises 3. Associations & Agencies Seawalker @ Green Island 3.1 Business/Industry Groups Spirit of Freedom Advance Cairns Limited Sunlover Reef Cruises Australian Parliament Sunset Cruises Australian Rainforest Foundation Synergy Reef Sailing Cairns Chamber of Commerce Tropic Tours Pty Ltd Cape York Sustainable Futures Tusa Dive Dept of State Development, Infrastructure and Planning 2.10 Safari & 4WD Tours Dive Queensland Billy Tea Safaris Events Queensland Daintree Tours by Deluxe Safaris Great Green Way Tourism Inc Discovery Tours Australia Member for Leichhardt Cairns Kuranda Steam Limited Partnership Member for Mulgrave Tagalong Tours of Australia Mission Beach Tourism Inc Wooroonooran Safaris Qantas 2.11 Scenic Flights/Charters Queensland Government Cairns Heli Scenic Queensland Tourism Industry Council Daintree Air Services Super Yacht Group Great Barrier Reef Inc GBR Helicopters Tourism Australia Nautilus Aviation Tropical Tablelands Tourism 2.12 Sporting 3.2 Government Agencies/Councils AFL Cairns Ltd Burke Shire Council Cairns Jockey Club Cairns Regional Council Half Moon Bay Gold Club Cassowary Coast Regional Council Paradise Palms Resort Golf & Country Club Croydon Shire Council Cable Ski Cairns Queensland Government Cairns Dive Centre Tourism & Events Queensland Southern Cross Parasailing 3.3 Tourism Organisations 2.13 Wildlife Experience Australian Tourism Export Council Australian Butterfly Sanctuary Caravan Parks Association of QLD Birdworld Kuranda FNQ Tour Operators Association Inc Cairns Tropical Zoo Local Tourism Network Cairns Wildlife Dome Tourism Kuranda Crocodile – Express Daintree Connection Tourism Palm Cove 96/101 Tourism Tropical North Queensland The Reef Hotel Casino Trinity Beach Promotion Association Whitfield House Tropical Coast Tourism 5. Dining and Entertainment 4. Business Event Services 5.1 Nightclubs/Bars/Entertainment 4.1 Event Management Companies Cazalys Cairns Ltd A List Events Flames of the Forest Hannafords Events The Reef Hotel Casino Managing Australian Destinations Vertigo Bar & Lounge Off-Site Connections Even Solutions Woolshed Chargrill and Saloon Bar Port Douglas Catering & Events 5.2 Restaurants/Cafes Roux Blond Barnacle Bill’s 4.2 Event Support Services Beach Almond A List Events Bushfire Flame Grill Events NQ Café Chine Moreton Hire Cairns RSL Club Ltd NQ Exhibitions Ciao Italia Cairns Pty Ltd NW Promotional Products Coast Roast Coffee Esplanade QUEST Dundees Licensed rill Simply Hampers…Simply the Best Flinders Bar & Grill at The Reef Hotel Casino Staging Connections Frydays Fish & Chippery TJS Cleaning Services Cairns Pty Ltd Golden Boat Chinese Restaurant Underwood Party Hire Hilton Cairns 4.3 Venues Holiday Inn Cairns Allamanda Palm Cove by Lancemore Kewarra Beach Resort & Spa Cairns Colonial Club McDonalds Family Restaurants Cairns Cairns Convention Centre Ochre Restaurant & Catering Cairns Sheridan Hotel Pacific Hotel Cairns Cazalys Cairns Ltd Pullman Cairns International Flames of the Forest Salt House Hilton Cairns Shangri-La Hotel, The Marina, Cairns Holiday Inn Cairns Tamarind Restaurant Hotel Grand Chancellor Palm Cove The Coffee Works Australia Lizard Island The Raw Prawn Oaks Lagoons The Reef Hotel Casino Pacific Hotel Cairns Tropic Spirit Catering Pty Ltd Paradise Palms Resort Golf & Country Club Waterbar and Grill Pullman Cairns International Salt House Shangri-La Hotel Thala Beach Nature Reserve The Hotel Cairns 97/101 6. Professional & Other Services 6.5 Marketing Representation 6.1 Design/Printing/Publishing Drafthouse Creative Studio Australian Tourist Publications G Force Pty Ltd Bang Magazine Grub Marketing Bolton Print Morgan Freeman Promotions Cairns Plan Printing Service P/L Parker Travel Collection Cairns Visitor Guide Pinnacle Tourism Marketing Gateway Media Group Tourism Marketing Services Impress Art Graphic Designs Tourism Matters Lotsa Print and Design 6.6 Media/Communications Pacific Coast Publishing Group Adlink Media 6.2 Education/Training Zinc 102.7FM/4CA FM Cairns College of English Pty Ltd Great Barrier Reef Marathon Cairns Language Centre Jasons Travel Media Pty Ltd Careers Training Centre Libra Communications Chine Australia Consult Living in Cairns I Want That Course Liz Inglis Media & Communications James Cook University of North QLD The Cairns Post Pty Ltd Study Cairns Pip Miller PR TAFE Queensland North 6.7 Other Unique People Pty Ltd Cairns Quality of Life Australia William Angliss Institute Deadly Success 6.3 Financial/Legal Enterprise Connect Crowe Horwath Execugifts P/L Cummings Economics Export Grant Professionals Exportise Ports North Grant Thornton Host Plus Talent Team Intrust Super 6.8 Photography/Videography MacDonnells Law Andrew Watson Photography National Australia Bank Calypso Reef Imagery Centre O’Conner Law Pty Ltd Digital Memories Peters Bosel Lawyers Lovegreen Photography Sunsuper Maxwell media Westpac Banking Corporation 6.9 Real Estate/Developers 6.4 IT/Web/Digital CB Richard Ellis Escape2.tv Lucas Sexton Precedence Respax Redlynch Valley Property Company

98/101 6.10 Recruitment/Personnel The AOT Group CBC Staff Selection Travel World P/L Member for Cairns 7.2 Travel Agents Q.I.T.E Destination Cairns Marketing Signature Staff Pty Ltd Go2GayCairns and GayCairns 6.11 Retail/Supplier Travel Beats Pty Ltd AAB Office Equipment Travstar.Com Pty Ltd Bidvest Cairns 7.3 Wholesale Travel Cairns Central Shopping Centre Kintetsu International Express Pty Ltd Cairns Ocean Products Pty Ltd 8. Transport services Ergon Energy Corporation Ltd 8.1 Airlines/Air Charters Kenny Sheet Metal Pty Ltd Cairns Airport Louis Vuitton Hinterland Aviation Nerada Tea Pty Ltd Independent Aviation Piccones Shopping Village Jetstar Airways Pier Properties Pty Ltd Peddells Ferry & Tour Bus Service Smithfield Shopping Centre Sealink The Australian Bush Store Skytrans The Crystal Caves 8.2 Coach Operators/Charters Trinity Petroleum Services Pty Ltd Global Travel Service 6.12 Wedding Services International Coaches & Tours Pty Ltd Andrew Watson Photography Sun Palm Transportation Pty Ltd Kuraudia Australia Pty Ltd 8.3 Limousine/Taxis NQ Exhibitions Cairns Taxis Limited Paronella Park Weddings Exemplar Coaches & Limousines South Pacific Bridal Cairns Pty Ltd. Sun Palm Transportation Pty Ltd 7. Tourism Bookings/Agencies 8.4 Vehicle Rental 7.1 Inbound Tour Operators Avis Australia Cairns Holiday Specialists Britz Australia D.O.A Australian Tour Link Budget Rent A Car Dixon Travel 7 Tour Pty Ltd Mini Car Rentals Global Travel Service Thrifty Car Rental H.I.S Co Ltd JTB Australia Pty Ltd Nippon Travel Agency Pty Ltd Port Douglas Connections Small World Journeys

99/101 Silver Members 2013/14