BATHURST REGIONAL COUNCIL

MOUNT PANORAMA PHASE 2 REDEVELOPMENT

FUNDING SUBMISSION

EXECUTIVE SUMMARY

As the spiritual home of Australian , Mount Panorama holds a special place in the hearts and minds of generations of Australians. Whether you’re a motorsport fan or not, Mount Panorama manages to conjure emotions unlike any other sporting venue.

In 2008, Mount Panorama celebrated its 70 th anniversary. During the past 70 years, the Mount has undergone many changes, but its stature amongst drivers and spectators alike, has remained unchanged.

The Mount Panorama Phase 2 Redevelopment Program represents the culmination of the latest circuit and precinct upgrades which originally commenced in December, 2003. It is envisaged that Phase 2 work will commence in 2009 upon funding approval. The proposed funding arrangement for the Phase 2 program is:

 Commonwealth Government: o $2.5 million in 2009/10 o $2.5 million in 2010/11

 NSW State Government: o $2.5 million in 2009/10 o $2.5 million in 2010/11

 Bathurst Regional Council: o $2.5 million in 2009/10 o $2.5 million in 2010/11

 TOTAL PHASE 2 INVESTMENT = $15 million

Mount Panorama’s Phase 1 Redevelopment Program cost $24 million which was funded by the NSW State Government ($10 million), the Australian Federal Government ($10 million) and Bathurst Regional Council ($4 million). The Phase 1 program involved significant infrastructure improvements which have established Mount Panorama as a world class, state of the art, motor racing facility.

Since Phase 1 of the redevelopment, completed in October 2004, Mount Panorama has improved its already strong economic and tourism generating credentials. Now with four major annual motorsport events, several major non-motorsport events, various community events and a host of corporate conferences and launches filling the booking calendar, Mount Panorama has ensured the initial redevelopment funding has been well worth the investment.

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With footage from the annual now reaching 850 million homes across 110 countries, it is no wonder Mount Panorama is rightfully viewed as one of this countries most important tourist assets. Generating an estimated $100 million income for the national economy per annum and underpinning well over 1,000 jobs, the positive economic ripples that the Mount provides are felt right across the country.

As with any sporting venue however, expectations from all stakeholders continue to rise, and thus, Phase 2 of the redevelopment now requires activation in order that the facility and precinct areas are well equipped to meet and exceed an ever-demanding customer base.

The proposed three tier government funding approach for Phase 2 reflects the ongoing importance of Mount Panorama to each economy and should be considered in light of the enormous potential return on investment that will be realised for generations to come.

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TABLE OF CONTENTS

1.0 INTRODUCTION______5

2.0 HISTORY OF MOUNT PANORAMA______5

3.0 PHASE 2 REDEVELOPMENT PROGRAM______6 3.1 RATIONALE 3.2 PROJECT AIMS 3.3 SCHEDULE OF WORKS

4.0 PHASE 1 REDEVELOPMENT PROGRAM______8 4.1 BACKGROUND 4.2 PROJECT AIMS 4.3 SCHEDULE OF WORKS 4.4 RETURN ON INVESTMENT

5.0 ECONOMIC IMPACT______13 5.1 ECONOMIC INDICATORS 5.1.1 International 5.1.2 National 5.1.3 Local 5.2 TOURISM INDICATORS

6.0 PROPOSED FUNDING ARRANGEMENT______16

7.0 CONCLUSION______16

8.0 ATTACHMENTS______16 8.1 PHASE 2 REDEVELOPMENT PROGRAM SCHEDULE OF WORKS

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1.0 INTRODUCTION

This submission document seeks to outline the strong case for additional State and Federal Government funding support to be allocated to the Phase 2 Redevelopment Program of Mount Panorama which requires activation in 2009. The Phase 2 program compliments the recently completed Phase 1 program by addressing certain improvements to the circuit and precinct areas unable to be budgeted for within the first round of redevelopment funding investment.

The focus of the Phase 2 program deals with public spectator areas, public amenities, camping grounds, corporate facilities, resident access and further track safety improvements.

Bathurst Regional Council believes that the Phase 2 redevelopment program, developed over many months, strikes the right balance in catering for the needs of spectators, corporates, race teams, media, existing land owners and the venue owners.

Bathurst Regional Council are committed to investing behind Mount Panorama, given its proven ability over a sustained period to deliver strong economic, social, cultural and tourism benefits for the Bathurst Region. It is without doubt one of the major contributors to economic and tourism prosperity for the state of NSW and continues to provide a vehicle through which to promote to the rest of the world.

We believe both the State Government of NSW and the Commonwealth Government should view Mount Panorama in the same manner and therefore commit to its ongoing redevelopment in order to realise its’ full potential for this country.

2.0 HISTORY OF MOUNT PANORAMA

Mount Panorama began as a dirt-track/tourist- drive carved out of the bald hills around the bustling city of Bathurst in the mid 1930s. The Council of the time had a vision for a premier motor racing circuit with the sharp hills, hairpin bends and fast downhill straight that would inspire awe and demand respect from all who took up the challenge for years to come. Strong support from the Light Car Club, Auto Cycle Union and the Federal Government, through a national employment relief scheme, saw this vision become a reality.

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On 17 th March, 1938, Mayor Martin Griffin declared the Mount Panorama Scenic Drive open. On 16 th April of that same year, Mount Panorama hosted its’ first race before 20,000 spectators, the Australian Tourist Trophy. Now, in over 70 years of racing history, Mount Panorama has become the undisputed mecca for motor racing fans all over Australia and around the world.

The mantle of spiritual home of Australian motorsport has been established through the staging of 46 consecutive Bathurst 1000 races (formerly 500). The Mount has seen drivers come and drivers go, with few ever completely dominating the merciless curves and unforgiving straights. In 2006, 194,000 spectators turned out to farewell one of the best racing car drivers Australia has ever produced - , King of the Mountain.

While it’s always nice to reflect on the many memories and historical events that have been made at Mount Panorama, its importance to the Bathurst Region, the state of NSW and Australia, cannot be underestimated. So with one eye on the past and a strong vision for the future, Mount Panorama enters its 71st year with a bold, strategic focus on retaining its’ reverence with a generation of Australians and establishing a new future in the hearts and minds of the next generation.

3.0 PHASE 2 REDEVELOPMENT PROGRAM

3.1 RATIONALE

There is no doubt Mount Panorama is one of the unique sporting venues in the world. Carved out of the existing hillside on the outskirts of Bathurst’s CBD and commanding an authoritative position over the entire Bathurst Region, it is no wonder Mount Panorama is held in such high regard both here and abroad.

With such uniqueness comes the ongoing challenge to maintain and improve the venue in order to stay at the forefront of motorsport venues worldwide and continue to meet the demands of the sport enthusiast. Obviously, a balance needs to be struck, however prioritising improvements and continual preventative maintenance can and will lead to even greater realisation of Mount Panorama’s economic and tourism generating potential.

While the Phase 1 redevelopment works at Mount Panorama have established the circuit as a world-class motor sport venue, Phase 2 seeks to address many fundamental and somewhat less glamorous improvements that are in dire need of attention in the near future.

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A Western Research Institute (WRI) Spectator Survey conducted at the 2007 Supercheap Auto Bathurst 1000 (n=631) sheds light on some of the issues desperately requiring attention:

 37% of survey respondents had experienced a negative issue during the 2007 SCA B1000. The main issue cited was amenities, however the 2007 result (18%) was a marked improvement on the 2005 result (38%) illustrating the enormous difference to customer satisfaction the Phase 1 redevelopment made.  There is a greater shift towards more a more premium experience at SCA B1000 with 72% of respondents holding a general admission pass in 2007 compared to 90% in 2005.  Satisfaction with general admission viewing areas ranged from 4.1 out of 7 to 5 out of 7. This reflects good progress since 2005, however provides the impetus to continue addressing venue upgrades in order to ensure all customers feel they are getting what they have paid for.

3.2 PROJECT AIMS

 Identify and address all remaining Mount Panorama circuit and precinct infrastructure improvements unable to be funded under the Phase 1 Redevelopment Program.  Ensure Mount Panorama continues to remain a world class, multi-purpose sporting venue able to accommodate a range of crowd sizes comfortably and safely.  Foster new tourism and visitation opportunities and encourage regional dispersal.  Promote local job creation.

3.3 SCHEDULE OF WORKS

The Phase 2 Redevelopment Program consists of the following summarised Schedule of Works:

 Complete upgrade and expansion of Castrol Tower including extra corporate, media and race control facilities.  Improvements to spectator areas at The Chase, Conrod Straight, Forrests Elbow, Brocks Skyline and Murrays Corner.  Duplicate single lane tunnel under The Chase providing improved resident and corporate access inside the circuit.  Campground improvements at The Chase and McPhillamy Park including new amenity blocks and improved lighting.  Sewer mains from Forrests Elbow to Murrays Corner.

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 Circuit safety improvements including extra concrete barriers, extended sand traps and tyre walls.  Road realignment on entrance to Mount Panorama from Panorama Ave. and Havannah St.  Further Pit Complex additions such as a commercial lift and service ramp to Levels 2 & 3.  Fauna and spectator fencing upgrades in various parts of the circuit.

It is envisaged that works will commence in mid 2009 upon funding approval.

4.0 PHASE 1 REDEVELOPMENT PROGRAM

4.1 BACKGROUND

The Mount Panorama Phase 1 Redevelopment Program officially commenced construction in December, 2003 with the majority of construction work completed in time for the 2004 Bathurst 1000. A record crowd turned out that year for the Great Race to experience first hand the world class facilities now available at Australia’s favourite motor racing circuit.

A joint funding arrangement was struck involving all three tiers of government which allowed the project to go ahead. The NSW State Government and Commonwealth Government injected $10 million each into the $24m redevelopment program with Bathurst Regional Council providing the $4 million balance.

Mid 2005 saw several minor construction projects completed including the new Pit Straight pedestrian bridge, which effectively saw the conclusion of the Phase 1 Redevelopment Program.

4.2 PROJECT AIM

The aim of the Phase 1 Redevelopment Program was:

 To facilitate a major upgrade of facilities at Mount Panorama to maintain and expand on its iconic motor racing status and ensure its ongoing viability and competitive edge as a world class motor racing venue.

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4.3 SCHEDULE OF WORKS

The Phase 1 Redevelopment Program involved the following construction works:

 New pit complex featuring: o 36, 8m x 15m deep ground level pit garages (approx four times size of old pit garages). Features three phase power, communications, secured back and front, new amenities o Second level corporate suites with sloped windows and outside viewing areas o Media centre and media amenities. o New winner’s podium. o Third level rooftop capable of accommodating additional corporate areas and big screens during race time. o State-of-the-art unique four storey race control and admin tower. o Three new two storey amenity blocks at the rear of the complex for female, male and disabled members of the public o Three storey lift  Upgraded precinct areas including: o 400 new campsites created in Pit Paddock o Upgraded paddock area including staged leveling and sealing of the entire area to provide transporter access directly to the rear of the pits and vastly improved underground drainage, sewer, water, power and communications. o New public spectator mounds at The Chase, Hell Corner, McPhillamy, Sulman & Reid Parks and Pit Straight to provide better viewing of the race action.  Other upgrades as part of Phase 1 included: o Pit Lane widening (by 3m) o New widened pedestrian footbridge over Pit Straight

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4.4 RETURN ON INVESTMENT

The Phase 1 redevelopment of Mount Panorama has not only secured, but has also grown the potential for Mount Panorama to generate positive economic, social, cultural and tourism outcomes for the region, the state and the country. While recently commissioned research into the latest figures has not yet been completed, a topline audit of recent activities at Mount Panorama paints an enormously positive story.

4.4.1 Events

Since the completion of the Phase 1 Redevelopment Program and the change to the Mount Panorama Act allowing a further three full track closures annually, Mount Panorama now boasts four major annual motor sport events. These include:

1. Supercheap Auto Bathurst 1000:

From 2003 (crowd = 158,382) to 2008 (crowd = 187,157), the annual Bathurst 1000 has attracted 18% more racegoers. This increase in crowd numbers is, in major part, attributable to Mount Panorama being able to effectively host larger crowds and ensure their expectations are met and exceeded. The Phase 1 redevelopment has allowed Mount Panorama to achieve this.

2. WPS Bathurst 12-Hour (2006-2008):

The WPS Bathurst 12-Hour was introduced in 2006 under its former title, the WPS Bathurst International Motor Festival. Steady growth has seen this exciting

event establish itself as the first major motorsport event on the calendar. With strong vehicle manufacturer support again in 2009, the WPS Bathurst 12-Hour is expected to attract a 30,000-strong audience of motor sport enthusiasts from around Australia and abroad.

3. Shannon’s Celebration of Motor Sport (2008):

Easter 2008 saw the inaugural Celebration of Motor Sport staged at Mount Panorama with a 500-strong competitor field (from an entry list close to 1,000). The event has been lauded as a fantastic opportunity for the cars and drivers of yesteryear to participate in motor racing as it used to be.

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4. Drive Bathurst & Sprint Bathurst (2007 & 2008):

Now in its’ second year, Drive Bathurst is an invitational only event which gives experienced club competitors and motor sport enthusiasts the opportunity to receive expert tuition from well known and respected race champions and then test their skills on the full Mount Panorama Circuit.

Mount Panorama has also played host to several new non-motorsport events including:

1. Newton’s Playground (2008):

An extreme sport and live music festival, Newton’s Playground utilised the top section of Mount Panorama including part of the downhill section of the circuit plus McPhillamy, Sulman and Reid Parks. Newton’s Playground demonstrated the versatility of Mount Panorama as a multi-purpose sporting venue.

2. Bathurst Billycart Derby (2008):

The Bathurst Billycart Derby was a community project that promoted the Australian values of tolerance, a helping hand, a fair go and mateship. Organisers were blown away with over 250 entrants registering for this exciting inaugural event.

4.4.2 Conferences

The Phase 1 Redevelopment of Mount Panorama has also enabled this iconic landmark to be promoted as an ideal venue for small to large scale corporate events and conferences across a range of industries. Interest and bookings have been extremely strong and with the impending development of a Mount Panorama Conference Strategy, further gains in this area are assured. Some examples of conferences successfully staged at Mount Panorama since the opening of the new Pit Complex include: 1. Mercedes Benz C63 Series Launch 2. Masterfoods Staff Development 3. Australian Rail Track Corporation Personnel Training 4. National Rotary Conference 11 | P a g e

5. Elpro Scada User Conference

4.4.3 Community Engagement

Through community consultation several key projects were identified and subsequently actioned in order to forge a stronger bond between local residents and the region’s most important asset:

1. Bathurst’s Biggest Garage Sale  An annual gathering of local sellers & buyers which utilises the garage facility of the new Pit Complex.

2. Country Energy Solar Car Challenge  Annual event aimed at promoting sustainable energy sources to schoolchildren in the Central West. Uses various Pit Complex facilities.

3. World Youth Day Journey of the Cross  A gathering of Catholic pilgrims for a symbolic re-enactment of the Journey of Christ. Utilised both the Pit Complex and Circuit precinct.

4. Bathurst Billycart Derby  Heavily supported by local community, local business and school groups. Utilised both the circuit and Pit Complex.

5. Rotary Youth Driver Awareness Seminars  Made effective use of the Pit Complex and hardstand areas for many local community members.

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5.0 ECONOMIC IMPACT

There is no overstating the importance of Mount Panorama to the Central West Region of NSW nor to the state of NSW and nor to Australia. If anything, Mount Panorama’s importance is too often understated and undervalued. A brief snapshot of some key economic and tourism indicators quickly paints an impressive picture of this most prized asset’s ability to drive prosperity.

5.1 ECONOMIC INDICATORS

5.1.1 International

 The 2008 Supercheap Auto Bathurst 1000 was broadcast to 850 million homes across 110 countries representing an extraordinary level of promotion of Australia as a tourist destination. (V8 Supercars)

 Mount Panorama accounts for an estimated 100,000 international visitor nights per annum since the Phase 1 redevelopment of the facilities (Based on DOTARS draft Mount Panorama Business Plan)

5.1.2 National

 The Bathurst 1000 is the major promotional platform for the and Ford vehicle brands in the Australian market.  2.5 million Australians watch the Bathurst 1000 (Channels 10 and 7).  Motor sport is the 3 rd most popular spectator and TV sport in Australia.  Roughly 300,000 people drive the circuit every year converting to an approximate 800,000 bed nights in the region (Tourism NSW).  The Bathurst 1000 is the biggest annual event in regional Australia.  Mount Panorama generates an estimated $100 million income per annum to the national economy (Tourism NSW) and creates: o 570 jobs and $23 Million Gross Regional Product (GRP) in Bathurst o 630 jobs and $27 Million GRP to Central West o 810 jobs and $46 Million GRP to NSW*

*Figures from Western Research Institute study prior to Phase 1 Redevelopment.

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5.1.3 Locally

1. Expenditure:

At the 2007 Supercheap Auto Bathurst 1000, survey respondents:  Spent an average of $102 per day on accommodation.  Spent an average of $86 per day on food & beverage and other expenses in Bathurst and $108 outside the Bathurst Region (not including money spent at Mount Panorama).  Spent an average total of $295 per day (including accommodation).

With an average stay of 4 nights, the estimated total expenditure per respondent during the 2007 Supercheap Auto Bathurst 1000 was $1,180. (WRI Spectator Survey - 2007 Supercheap Auto Bathurst 1000 – n=631)

2. Job Creation:

The 2007 Supercheap Auto Bathurst 1000 had the following effect on job creation and sales:  On average, 32% of businesses increased their casual staff numbers in response to the race.  On average, businesses that increased their casual staff numbers for the event put on an additional 6.3 casual staff members.  89% of casuals employed by respondents during the 2007 Supecheap Auto Bathurst 1000 resided in the Bathurst Region.  53% of all business respondents reported good to very good sales performance in the lead up to the 2007 SCA B1000. (WRI 2007 Supercheap Auto Bathurst 1000 Business Survey)

5.2 TOURISM INDICATORS

In the year ending March 2007, the Central NSW region attracted approximately 1.81 million domestic overnight visitors, who, with an average length of stay of 2.54 nights, generated approximately 4.6 million visitor nights. From the figures quoted earlier, it can be estimated that Mount Panorama can account for just over 17% of the total visitor nights in the region (pg. 8, WRI Audit of Bathurst Tourism Product, 2007).

Traffic counts suggest an average of 1,441 cars use the circuit each day, which, extrapolated out, gives a total of 525,965 cars annually. By assuming a reasonable proportion of these vehicle movements are made up of residents, maintenance & construction vehicles and vehicles that drive the circuit a number of times, one can safely predict at least 300,000 cars are driving the circuit annually (Pg. 2-2, Kellogg Brown & Root, Mount Panorama Business Plan, Final Draft Report, 2003).

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From the 2007 Bathurst 1000 WRI Spectator Survey, on average spectators attending the race had attended the event on 7 previous occasions.

When one takes a step back and looks at the overall tourism performance of Central West NSW Region a worrying trend is emerging. The number of domestic overnight visitors to the region has been declining by around 4.5% per annum since 2002/03 (Pg. 8, WRI Audit of Bathurst Tourism Product, 2007). The largest fall in visitor numbers was experienced in the Family Traveller Type which dropped 23.8% from March 2005 to March 2007 (Pg. 10, WRI Audit of Bathurst Tourism Product, 2007).

While it seems the region as a whole needs to strategise in order to arrest this decline, Mount Panorama is bucking the trend, particularly within the family demographic. Further results from the WRI 2007 Supercheap Auto Bathurst 1000 survey indicate:

 The number of respondents attending the event with their family grew from 18% in 2005 to 29% in 2007.  86% of respondents believed the event was “family friendly” up from 81% in 2005.  Survey respondents had an average of 7 companions at the 2007 Supercheap Auto Bathurst 1000 reinforcing the importance of a pilgrimage to Bathurst being a group affair, rather than one made as an individual.

While the statistics are impressive, it is when one considers the potential for Mount Panorama, that the real opportunity lies. As motorsport events, in particular the Supercheap Auto Bathurst 1000, become more family friendly and Mount Panorama begins attracting larger and more regular non-motorsport events, conferences, launches and festivals, the importance of our world class motor racing circuit becomes paramount.

A much more strategic tourism approach to Mount Panorama aimed at driving Central NSW regional dispersal is one of the key aims of Bathurst Regional Council and CENTROC as we head into 2009 and beyond.

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6.0 PROPOSED FUNDING ARRANGEMENT

The proposed funding arrangement for the Phase 2 Redevelopment Program is:

 Commonwealth Government: o $2.5 million in 2009 – 10 o $2.5 million in 2010 – 11

 NSW State Government: o $2.5 million in 2009 – 10 o $2.5 million in 2010 – 11

 Bathurst Regional Council: o $2.5 million in 2009 – 10 o $2.5 million in 2010 – 11

 TOTAL INVESTMENT = $15 million

7.0 CONCLUSION

While the Mount Panorama Phase 1 Redevelopment Program has addressed many of the fundamental issues holding Mount Panorama back from realising its full potential, without the implementation of the complimentary Phase 2 Program, the entire initiative risks falling short of its’ original objectives.

Successful implementation of the Phase 2 program will effectively seal Mount Panorama’s future. This completed improvement program will also allow for an expanded role as a tourism driver for the state’s Central West.

Only with this proposed three tier government funding approach can we guarantee that Mount Panorama will continue to deliver positive economic returns well into the future whilst at the same time fostering a strong international reputation for the circuit, the region, the state and the country.

8.0 ATTACHMENTS

8.1 PHASE 2 REDEVELOPMENT PROGRAM SCHEDULE OF WORKS

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