Gold Coast Global Tourism Hub
Community and stakeholder consultation
Gold Coast Tourism Advisory Panel August 2019 Contents COMMUNITY AND STAKEHOLDER CONSULTATION 1
EXECUTIVE SUMMARY...... 2 COMMUNITY FEEDBACK ...... 32 Tourism on the Gold Coast...... 2 Existing tourism offering and The Global Tourism Hub proposition...... 4 state of the Gold Coast economy...... 33 Community consultation Limited understanding of a GTH and feedback...... 5 |and its offering ...... 35 Summary...... 8 Balancing the competing objectives of international and local markets...... 36 GOLD COAST TOURISM ADVISORY PANEL...... 10 Opposition to the use of public land...... 37 Potential sites raised – support and The role of the Tourism opposition...... 38 Advisory Panel ...... 10 Saturation of the gambling market...... 41 Membership...... 11 Impact on community clubs ...... 43 Approach...... 11 Southport’s effectiveness as a CBD...... 45 Capacity of the existing transport HISTORY OF CASINO LICENCES infrastructure ...... 46 TO GROW TOURISM ...... 12 Previous development attempts cause investment uncertainty...... 47 GLOBAL TOURISM HUB OVERVIEW...... 14 Objectives of a GTH...... 14 MITIGATIONS...... 48 Predicted benefits of a GTH...... 15 A clear articulation of what a GTH Criteria for new regional is and why it is needed...... 48 GTH proposals...... 15 Clarification on site/private site ...... 49 Preserving green space...... 50 GOLD COAST MARKET OVERVIEW...... 16 Limiting the gambling market ...... 50 Strategic context for tourism Protecting community clubs ...... 51 development...... 16 Easing traffic congestion with new Visitation trends...... 19 or existing infrastructure...... 53 Accommodation performance and offering...... 24 SUMMARY...... 55 Convention facilities...... 28 The Commonwealth Games effect...... 30 APPENDICES...... 56 Summary...... 31 Appendix 1: Overview of consultation activities...... 56 Appendix 2: Description of a GTH...... 58
ENDNOTES...... 60 2 GOLD COAST GLOBAL TOURISM HUB
Executive summary
On 5 March 2019, the Queensland Government approved the commencement of a market process to deliver a Global Tourism Hub (GTH) on the Gold Coast. The Minister for Innovation and Tourism Industry Development and Minister for the Commonwealth Games, Kate Jones, formed the Tourism Advisory Panel (the Panel) to support and assist the State in ensuring a balanced approach to fostering economic opportunity, tourism growth and better understanding community expectations.1
TOURISM ON THE GOLD COAST Rival destinations are gaining international visitor market share Tourism is a significant driver of economic at the Gold Coast’s expense and social outcomes for the Gold Coast, delivering 41,000 direct and indirect International holiday visitation to the jobs and supporting more than 3,000 Gold Coast has not kept up with the tourism businesses.2 However, there is growth experienced in key competing clear evidence the Gold Coast is not Australian destinations such as Sydney, keeping up with its competitors, or Melbourne and Hobart over the past meeting its potential as an international five years. In fact, between March 2015 tourism destination. and March 2019 international holiday visitation to the Gold Coast achieved a compound annual growth rate of only 5.8 per cent compared to the national average of 8.7 per cent.3
INTERNATIONAL HOLIDAY VISITATION (YEAR ENDING MARCH 2015 TO MARCH 2019) 2500 Sydney 2000 CAGR = 7.8%
1500 Melbourne CAGR = 10.7%
Visitors (000s) Visitors 1000 Gold Coast CAGR = 5.8% 500 Hobart and the South CAGR = 14.3% 0 YE Mar 2015 YE Mar 2016 YE Mar 2017 YE Mar 2018 YE Mar 2019
SOURCE: Tourism Research Australia, National and International Visitor Surveys, March 2015 – March 2019 International Holiday Visitation Year Ending December 2014 to 2018 COMMUNITY AND STAKEHOLDER CONSULTATION 3
For the year ending March 2019, the The Gold Coast has great natural average length of stay for international attractions, but on their own they holiday visitors to the Gold Coast won’t drive international tourism was 5.6 days, a slight decrease from 5.9 days in the year to March 2015.4 In a 2013 survey conducted by Tourism Despite the positive effect of the Research Australia, only five per cent Commonwealth Games, this is lower than of visitors indicated that the main the average length of stay in Sydney, reason they visited the Gold Coast Melbourne and Hobart (10.4, 9.2 and 5.7 was for the “variety of things to do”.13 days, respectively).5 Through consultation, some stakeholders suggested the Gold Coast’s main tourism drawcards were the ‘green and gold’: The Gold Coast’s tourism industry the hinterland and beaches. While is built mainly on domestic, not these natural offerings will continue to international visitors play a key role in attracting tourists, on their own they are not likely to While domestic tourism for the Gold drive significant increases in tourism, Coast is up 16.8 per cent in the year particularly international tourism. to March 2019,6 international tourism declined by 2.1 per cent.7 This represents A significant growing international a decrease of 22,000 international tourism market is Chinese holidaymakers. visitors to the Gold Coast. Over the same Chinese tourism to Australia is predicted period international visitors increased to increase approximately 170 per cent by approximately 132,000 to Melbourne, between 201814 and 2026–27.15 However, 11,000 to Sydney and 9,000 to Hobart.8 in the year ending March 2019, the number of Chinese visitors to the Gold This matters because domestic visitors to Coast fell by 17.1 per cent.16 As well, the Gold Coast spend on average $900, in 2018 the number of nights Chinese while international visitors spend $1,323, holidaymakers spent in the city fell by or 32 per cent more.9 17.2 per cent.17 In the year ending March 2019, the The following facts help guide what the total domestic market (daytrippers and Gold Coast may need to develop in order overnight) accounted for a significant to capture its share of the significant 92 per cent of the total visitor numbers, increase in future Chinese visitation while more lucrative international expected nationally: visitors only contributed eight per cent of total visitation.10 11 Some 80 • A 2016 McKinsey report finds that per cent of visitors travel to the region “the popularity of international by car.12 These statistics suggest that travel is astounding among Chinese the Gold Coast is not living up to consumers”, but also that the its self-image, or its potential as an Chinese favour luxury products international tourism destination and and experiences;18 requires significant investment to attract international visitors. 4 GOLD COAST GLOBAL TOURISM HUB
• The 2017 Hurun report into Chinese The GCCEC has been the subject of tourism indicates a strong preference numerous reviews into its capacity, by Chinese travellers for luxury hotels constraints and future capability as an and fine dining experiences.19 In fact, international and domestic convention hotel quality, including brand, service location. The GCCEC is struggling and facility, is ranked as the most to meet the requirements of event important factor for Chinese tourists organisers due to capacity constraints.24 when booking accommodation;20 and Finding alternative convention facilities is • A Tourism Research Australia report not proving difficult for event organisers into Australia’s potential to attract with the last seven years seeing Chinese tourists points to their desire significant upgrades and expansions to to “flaunt” their ability to travel and centres in Brisbane, Sydney, Melbourne experience unique offerings.21 and Adelaide. The GCCEC has not experienced any major redevelopment since an expansion in 2008. The region is falling short of its own tourism objectives With demand for convention space increasing, and newer larger facilities The Gold Coast Destination Tourism accessible in other locations around the Management plan 2014–2020 (DTMP) set country, the Gold Coast will continue a number of objectives for the growth to lose business traveller market share of the industry. For example it has an unless significant change is made. ambition to increase overnight visitor expenditure to $7 billion between 2014 Interviewees in the consultation process and 2020,22 which on current projections also raised the concern that there is will not be met. The DTMP also sets no venue on the Gold Coast which can the goal of delivering three medium- accommodate large-scale “Las Vegas term catalyst projects following the style” shows and that the creation of Commonwealth Games, including an an alternative entertainment venue integrated resort development (IRD). is warranted. A GTH is similar to an IRD, but with an additional emphasis on an urban renewal objective. While some progress has been made on delivering catalyst projects, this THE GLOBAL TOURISM HUB goal has also not been met. PROPOSITION
Recognising the need to stimulate Convention and entertainment tourism investment, in 2013 the then LNP facilities are not capable of State Government issued a casino licence meeting market opportunities as part of an IRD.25 A previous attempt to create an IRD on Wavebreak Island and In the year ending March 2019, more then The Spit failed in part because of than 600,000 people visited the Gold community opposition to those locations Coast for primarily business reasons, being used for this purpose. injecting upwards of $532 million into the local economy.23 The majority of the The current State Government has begun large business events, and the associated a new process to attract proposals from visitors, are likely to have been held at the the global market to develop a GTH. A region’s primary business and conference GTH is described as a high quality, mixed venue – the Gold Coast Convention and use destination aimed at providing tourism, Exhibition Centre (GCCEC). leisure and entertainment facilities for the COMMUNITY AND STAKEHOLDER CONSULTATION 5
local, domestic and international market. Overall, 56 per cent of Gold Coast It typically covers several hectares and residents surveyed as part of the Panel’s often includes iconic architecture, five work, strongly or somewhat support or six star hotels, convention facilities, the development of a GTH when the entertainment arenas, theme parks, luxury description in Appendix 2 is provided. retail, signature food and beverage outlets, They do so because they recognise public attractions and extensive public it will help the local economy, attract open space and recreation facilities. For more tourists or because it sounds the Gold Coast GTH, the casino licence appealing and unique. Eighty per cent created in 2013 is currently being offered of survey respondents also agree that as part of the process to secure the level of a GTH will create more jobs for locals. investment necessary for the development However, there is strong desire for more of new tourism infrastructure.26 information on the location and look of the proposed development.
Only 13 per cent of residents surveyed COMMUNITY CONSULTATION strongly or somewhat oppose a new AND FEEDBACK IRD for the Gold Coast. They do so because of concerns that there is too In order to inform itself of community much development on the Gold Coast, sentiment regarding a GTH, the Panel they dislike the idea of a second casino undertook the following consultation or they don’t believe it is well enough (detailed in Appendix 1): differentiated from what the region already has. The remaining 31 per cent • One-on-one consultations with neither support nor oppose, or are unsure. 38 stakeholders/groups from local and state government, This result can be interpreted as a businesses, community groups reasonably strong level of support as and representatives from tourism, 56 per cent of respondents support a education and industry bodies GTH once a description is read. Before including members of clubs, hotels, a description is read, support is 28 pubs and the existing casino; per cent. This demonstrates both the need to effectively communicate with • Four focus groups consisting Gold residents about the features of the Coast residents (with approximately proposition which go beyond a casino eight residents randomly selected for and the benefits a GTH can deliver. each group); Without a significant effort to inform the • An online survey of 546 Gold Coast community, support for a GTH could be residents; and easily eroded to levels below the current 28 per cent by those who strongly • An analysis of 211 written submissions oppose the development. received via email and post, following a call for submissions advertised Despite the level of general community in the Gold Coast Bulletin and an support, many specific interest groups email to Gold Coast business leaders and influential stakeholders are vocally requesting their position on the GTH. opposed to the proposition. That opposition can be summarised into a number of dominant themes. 6 GOLD COAST GLOBAL TOURISM HUB
Opposition to the use of Location public land For many, location is the dominant An option for the State Government consideration in whether they support is to contribute public land to the or oppose a GTH. In fact, 68 per cent of developer of a GTH. This is a legitimate those surveyed agree their support for a way of incentivising the private sector to GTH is dependent on location indicating consider the significant investment that a a site must be declared before public GTH entails. It is also a way for the State opinion on a GTH can truly be tested. Government to strengthen its negotiating authority and be more prescriptive about While 62 per cent of those surveyed said the nature of a GTH to ensure it meets the GTH will help bring to life some areas the tourism objectives of the Gold Coast. of the Gold Coast that aren’t thriving, the precise location is a hotly contested However, some individuals and subject. For example, through the community groups are opposed to consultation period it was suggested that the use of public land for this purpose. a GTH could be used to catalyse new The opposition stems from either development as part of an urban renewal an ideological opposition to a State effort in Southport to create a genuine contribution to the private sector, CBD for the city. Others suggest that a concern about the loss of public Southport should remain (or become) open space and/or a concern that it will the administrative centre of the Coast impact where they live. and that tourism development of this kind is better located elsewhere, like It is difficult to mitigate against the Surfers Paradise or Broadbeach. ideological opposition, however a private sector proponent can be compelled as In any case, it seems clear that many part of the arrangement to provide an on the Gold Coast are waiting for a equivalent or greater amount of public open location to be announced before deciding space. In fact, if the development generated their position on a GTH. Perhaps not the same or more public open space, 43 per surprisingly this suggests that for some, cent of survey respondents are more likely local impacts to amenity, whether to support a GTH on public land. perceived or real, will be more important than benefits to the Gold Coast as a whole. The ultimate mitigation to deal with this concern is to locate the GTH on a fit for purpose site which is currently privately Impact on community clubs held. Many of those consulted who cite Clubs and their representative bodies the use of public land as their primary have made a compelling case that Gold motivation for opposing a GTH said they Coast clubs operate within a fiercely would be supportive if it were located on competitive environment. They compete private land. with each other, hotels and The Star (the If private land is identified, the challenge existing casino on the Gold Coast) for becomes maintaining sufficient leverage revenue, particularly gambling revenue for the State Government in negotiating derived from local residents through an outcome that’s worthwhile for the electronic gaming machines (EGMs). Gold Coast. On the other hand, were Clubs are seriously concerned about the State Government to do what was their ongoing viability in the event of a necessary to be in a position to offer a GTH being developed. They argue that private site, this could have significant any additional gambling options for local implications for taxpayers and add residents will logically exacerbate the complexity and potentially considerable competition in a saturated market. And the time to the process. Panel is strongly supportive of this view. COMMUNITY AND STAKEHOLDER CONSULTATION 7
Unlike The Star and hotels, clubs exist Concerns about gambling primarily to serve the community and the purpose for which they were created. For Many individuals and community groups this reason the Panel strongly believes interviewed as part of this process that clubs should have their concerns expressed their concern about the carefully considered and addressed in the impact of gambling on the community. event a GTH proceeds. Statistics about the number of EGMs per head of population are cited as a Possible mitigations, outlined further basis for this concern. However, figures in this report, involve tax relief during provided by the Office of Liquor and the initial period of a likely decline Gaming Regulation differ from those in gambling revenue, a rebate for provided by The Star: community contributions, other regulatory relief and an entry levy to the NUMBER OF EGMS PER HEAD OF POPULATION casino floor of a GTH for locals, as exists 25 in some international jurisdictions. The Sydney Panel is strongly supportive of a range of 20 22.7 mitigations, such as these, being granted Gold Coast to clubs operating in the Gold Coast 15 17.7 region if the GTH proceeds. However, Sydney Gold Coast the introduction of an entry levy raises 10 13 12.2 issues of competitive neutrality so per 1,000 adults consideration will be needed to balance 5 the requirements of the incoming casino with those placed on the existing casino. 0 Figures provided Figures provided by the The State Government has made a by The Star 28 Oce of Liquor and commitment that there will be no overall Gaming Regulation increase in the number of EGMs in (OLGR) 29 27 the region as a result of a GTH. This The discrepancy lies in differing suggests some kind of buy-back scheme catchment definitions of the Gold may be adopted in order to accumulate Coast and Sydney, and whether the the EGMs required for the GTH. Many total population is included or just stakeholders identify that EGMs generate those over 18 years of age. Regardless more revenue when located in a casino of these facts, the concerns about the than in a community club. The State impact of gambling on the community Government has said that its motivation are no doubt genuinely held. However, for pursuing a GTH is to achieve tourism the survey of Gold Coast residents outcomes for the Gold Coast, rather suggests the general community is not as than increased revenue. With increased concerned about the inclusion of a casino revenue from a GTH, the Government as part of a GTH. should be in a position to compensate clubs and underpin their efforts to remain Sixty-seven per cent of survey viable through any buy-back scheme and respondents agreed or are neutral about ongoing tax measures. including a casino as part of the GTH development on the Gold Coast. Among those that agree, the unprompted reasons are because it will attract more tourists (41 per cent), be an entertainment option for residents and tourists (14 per cent), and provide good returns for the economy and jobs (12 per cent). 8 GOLD COAST GLOBAL TOURISM HUB
The 28 per cent of survey respondents meet the need to grow international who disagreed (five per cent had no view) tourist visitation. with including a casino as part of the development did so due to concerns about The survey results demonstrate that adding a second casino when the Gold a majority of Gold Coast residents Coast already has one (46 per cent) and are supportive of a GTH, once the concerns around gambling (35 per cent). detail of the concept is explained to them. However, a GTH is also strongly opposed by a number of vocal groups Uniqueness and individuals, and by those with a commercial self-interest. These The other factor which is relevant to the opponents are dominating the public impact of a GTH on the local gambling debate, largely because the GTH has not market is its size. Should a GTH be been well explained and does not have large and attractive enough to draw vocal local supporters. international tourists, it was suggested that it would unlikely compete with or There are ways to mitigate many of adversely impact clubs, pubs and The Star. the genuine concerns being expressed. However, without a willingness and Some saw the State Government’s concerted effort to deal with these current description of a GTH as a mere concerns, and strong local advocacy replication of what is currently available for and effective communication about on the Gold Coast. In fact, 43 per cent of the benefits of the proposition, the surveyed residents believe the current opponents are likely to further erode description sounds too similar to what public support over time. Prolonged the Gold Coast already has, rather than speculation about the site will only something new. exacerbate this situation and should be This is likely to be a deficiency in the addressed prior to proceeding with an current description’s effectiveness EOI process. in conveying the vision. However, it Progressing a GTH at this time is likely to does point to the need for the State require local supporters to become much Government to be prescriptive about more vocal. It would also require the what it requires from proponents in the State Government to address concerns Expressions of Interest (EOI) process. The about the site and industry impacts risk in “letting the market decide” is that sufficiently to allow overall benefits for the GTH may not be sufficiently large, the Gold Coast to outweigh specific sufficiently iconic and sufficiently aligned local opposition. to the Gold Coast’s existing uniqueness to attract international visitors. In order to enhance overall benefit and address many of the mitigation suggestions made in this report, the State Government should not leave the nature SUMMARY of the GTH wholly to proponents to decide. The State Government needs to The case for a GTH which addresses the be more prescriptive about what the Gold need to attract particularly international Coast needs in its procurement process: visitors to the Gold Coast is strong. a GTH of sufficient scale and uniqueness Without development of this kind, the to leverage the Gold Coast’s existing Gold Coast is likely to continue to lose advantages, such as its beaches, and that tourism market share to its competitors. it attracts international tourists without This is the Panel’s primary concern as adding considerably to the already highly there is limited evidence to suggest competitive local gambling market. that currently proposed projects COMMUNITY AND STAKEHOLDER CONSULTATION 9
A GTH may also be an opportunity • Incorporates effective traffic to address the concerns expressed mobility solutions; about the city’s convention and entertainment facilities. • Contributes positively to the urban renewal and public realm of the The Panel is also persuaded that a GTH Gold Coast; and would have a considerable impact on local community clubs. Ways should be • Does not result in an overall found to compensate clubs through the increase in the number of EGMs in increased revenue a GTH would generate the region. for the State, to underpin their ongoing 2. Ensure that the legitimate concerns viability and their vital community work. of Gold Coast community clubs are Tourism data indicates that the case for addressed through a package of a GTH and the benefits it could deliver measures designed to underpin Gold is strong and without new, significant Coast clubs’ ongoing viability. In infrastructure such as a GTH, the Gold particular: Coast is not likely to meet its objectives • No tax on gaming revenue for the to increase international tourist visitation. 18 months immediately following However, this is challenged by a lack the GTH’s opening; of social licence from the Gold Coast community. In order to build a social • Tax rebate on contributions made licence for the GTH proposition, the to the community; and Tourism Advisory Panel suggests the Queensland Government: • Relaxation of noise restrictions currently imposed on the industry. 1. Address the mitigations suggested in this report, including making 3. Identify a public site to allow the them conditions in the procurement State Government to be prescriptive process. In particular, proponents to proponents about what the should be required to demonstrate development must include, or establish that their proposal: a process to identify a fit for purpose private site, noting this is likely to add • Is aimed at attracting primarily cost and time to the process. international tourists by ensuring: 4. Seek to involve the City of Gold Coast a. The investment is of sufficient for appropriate technical input. scale; 5. Change the terminology from Gold b. It takes advantage of the Gold Coast Global Tourism Hub to Gold Coast’s existing advantages (its Coast Integrated Resort Development beaches and the hinterland); (IRD) as the term GTH is confusing and does not resonate with stakeholders or c. Incorporates larger convention the community. space and/or entertainment facilities to capture currently 6. Communicate with the Gold Coast missed opportunities; and community the case for an IRD identified in this report, particularly d. It is unique in the world, in terms given the Gold Coast’s international of the experience it provides; tourism performance. This would • Results in no overall loss of public require a comprehensive education open space; program, identifying the location and expected benefits. 10 GOLD COAST GLOBAL TOURISM HUB
Gold Coast Tourism Advisory Panel
On 5 March 2019 the Queensland Government approved the commencement of a market process to deliver a GTH on the Gold Coast. As part of the process, the Minister for Innovation and Tourism Industry Development and Minister for the Commonwealth Games, Kate Jones, formed the Tourism Advisory Panel to gather and advise on the community sentiment surrounding the proposal, including the key issues and potential mitigation options to inform a Cabinet submission at the completion of the EOI process.
THE ROLE OF THE TOURISM • Advise on how the Gold Coast ADVISORY PANEL GTH can best support the key objectives of growing tourism, jobs The role of the Panel is to: and new opportunities for Gold • Provide advice, direction and support Coast businesses; to the Minister for Innovation and • Support and assist the State in Tourism Industry Development and ensuring a balanced approach to Minister for the Commonwealth fostering economic opportunity Games on key issues for the Gold and addressing community Coast GTH; expectations; and
• Advise on strategies to assist relevant • Advocate to ensure the Gold Coast’s communities to be kept informed of interests as Australia’s premier tourism the status and impacts of the Gold destination are heard and considered Coast GTH; in the Gold Coast GTH process.30 COMMUNITY AND STAKEHOLDER CONSULTATION 11
This report advises on aspects of the MEMBERSHIP Gold Coast tourism industry and outlines the results of the stakeholder and The Panel consists of prominent Gold community engagement undertaken to Coast community members to leverage understand the sentiment surrounding the engagement with community the proposed GTH on the Gold Coast groups, businesses and individuals. Panel and identify potential mitigations for members include: overcoming community concerns.
• John Witheriff, Chairman, MinterEllison A range of engagement methods were Gold Coast (Panel Chair); used by the Panel to achieve a broad reach and understand community • Tony Cochrane, Chairman, Gold sentiment. These methods included Coast Suns; individual interviews, focus groups, an • John Morris, Board Director, online survey, written submissions and Destination Gold Coast; emails to more than 200 Gold Coast business leaders calling for their position • Dale Dickson, Chief Executive Officer, on a GTH (as outlined in Appendix 1). City of Gold Coast; and
• Chris Mills, Chief Executive Officer, Gold Coast Airport (until 30 June 2019).
APPROACH
The Panel was tasked with carrying out the project in a phased approach as follows:
1. Registration of Interest and EOI: Stakeholder engagement to test community sentiment and key issues together with potential mitigation options to inform a Cabinet submission at the completion of the EOI process.
2. Request for Detailed Proposals: Provide advice on key community matters that should be taken into account in the preparation and assessment of the Request for Detailed Proposals.31 12 GOLD COAST GLOBAL TOURISM HUB
History of casino licences to grow tourism
The State Government has long been focused on stimulating upfront investment, and ongoing renewal of, internationally acclaimed tourism infrastructure that will act as a catalyst for long-term growth in Queensland’s tourism and service sector economies.
In 2013, in support of these objectives, To sustain this position and ensure the the then LNP State Government issued region maintained its market share of three additional casino licences.32 international tourism, the Gold Coast was The location of these licences were awarded one of the allocated regional Brisbane (Queen’s Wharf) and two casino licences. This licence was intended additional licences allocated to regional to underpin a broader IRD to drive Queensland.33 tourism, jobs and economic return for the region.37 The other licence was awarded The Gold Coast is one of the fastest to Cairns. growing cities in Australia with the resident population of 606,774 forecast With years of history, the motivation for to reach 943,686 by 2041.34 The region these licences remains the same today as is also one of Queensland’s premier it did in 2013: tourist destinations, hosting more than 12 million visitors and holding more than • To “spread the tourism benefits across 60 major events each year.35 Tourism Queensland, whilst simultaneously remains a significant economic driver growing construction, creating for the region, representing $5 billion of hundreds of local jobs and boosting 38 the city’s $31 billion economy, delivering the economy”; 41,000 direct and indirect jobs, and • To “ensure Queensland can attract supporting more than 3,000 tourism international tourists and businesses 36 businesses in 2016–17. for generations to come”;39 COMMUNITY AND STAKEHOLDER CONSULTATION 13
• To “revitalise the tourism and construction pillars of the Queensland economy”;40
• To “be a key provider of tourism infrastructure, including hotels, restaurants and conference facilities that can support major events and raise Queensland’s profile as a tourism destination”;41 and
• To “attract interstate and international tourists as both these centres (Gold Coast and Cairns) have international airports”.42
Just months after these casino licences were announced, the need to attract new investment and drive the long- term success of tourism in the city was highlighted in the Gold Coast DTMP 2014–2020.43 This is outlined in more detail in the Gold Coast Market Overview section of this report.
14 GOLD COAST GLOBAL TOURISM HUB
Global Tourism Hub overview
A suite of economic policies and strategies are in place that aim to deliver long-term growth in Queensland’s tourism and service sector economies. The Queensland Government’s strategy for GTHs is one of these.
The GTH strategy is designed to renewal. The description provided to incentivise the private sector to support those consulted throughout this process Government objectives of boosting is outlined in Appendix 2. tourism, strengthening the Queensland economy and creating more jobs across the state.44 OBJECTIVES OF A GTH The Government describes a GTH as a high quality, mixed use destination The Queensland Government states that aimed at providing tourism, leisure and GTHs are designed to: entertainment facilities for the local, domestic and international market.45 • Deliver world-class tourism As a destination in itself, a GTH covers infrastructure – accelerating tourism several hectares and often includes growth and supporting local iconic architecture, five or six star hotels, infrastructure opportunities; convention facilities, entertainment • Develop integrated resorts with arenas, theme parks, luxury retail, a broad range of tourist related signature food and beverage outlets, facilities and attractions and other public attractions and extensive public tourism infrastructure; open space and recreation facilities.46 For the Gold Coast GTH, a casino licence • Support the Government’s broader is offered as part of the process to tourism strategy by encouraging more secure the level of investment necessary direct flights from Asia and increase for the development of new tourism visitors’ length of stay, spend per night infrastructure.47 Essentially the outcome and repeat visitation; being sought is the same as what will be achieved for Brisbane through • Deliver catalytic projects that support the Queen’s Wharf project, including city building objectives and other attracting international visitors and urban complementary projects; COMMUNITY AND STAKEHOLDER CONSULTATION 15
• Optimise broader community gains including regional jobs, investment CRITERIA FOR NEW REGIONAL and associated flow-on developments GTH PROPOSALS including enhancing public realm; and The Queensland Government states that • Provide high-quality accommodation any new regional GTH proposal must: and a range of experiences encouraging longer visitor stays and • Be located within close proximity greater tourism expenditure.48 to a major population centre with a catchment of at least 150,000 people within a 70 kilometre radius of the regional centre; PREDICTED BENEFITS OF A GTH • Be near an operational international Developments of any kind can inject airport or an airport that is significant direct and indirect benefits capable of being upgraded to to the local economy, the community in international standards; which it operates, and Queensland more • Have well-established transport broadly. The Government states that the networks and significant existing Gold Coast GTH has the potential to: tourism infrastructure with identified • Provide the next generation of careers growth potential; and and employment for the Gold Coast • Include significant capital investment (could create an expected 6,000 and commence construction within 18 jobs and attract an extra one million months of contractual close. visitors annually); Being a key tourism destination, the • Pave the future for Australia’s Gold Coast was selected as a potential sixth largest city, with a population location for the state’s newest GTH forecasted to double in the next due to its alignment to the criteria. 35 years; This includes: • Celebrate the natural beauty of the • A resident population of 606,774 iconic Gold Coast locale; people (as at 30 June 2018), forecast • Reinforce the region’s reputation as to grow to 943,686 by 2041;50 Queensland’s tourism capital; • Serviced by the Gold Coast • Create new opportunities for existing International Airport and businesses in the Gold Coast region; transit connections to Brisbane International Airport; • Support future infrastructure requirements on and around the • Established public transport network, project site; and including a heavy rail, light rail and bus network; and • Provide significant community benefit, including open space, entertainment, • Existing accommodation supply recreational and cultural facilities.49 across all star ratings and styles. Investment and construction obligations will be progressed as part of later processes awarding a proponent. 16 GOLD COAST GLOBAL TOURISM HUB
Gold Coast market overview
STRATEGIC CONTEXT FOR Advancing Tourism 2016–2052 TOURISM DEVELOPMENT Queensland Government
A range of policies across all levels of • Grow quality products, events government outline the intention to and experiences. stimulate economic development through tourism. A number of tourism strategies • Invest in infrastructure and access. within Commonwealth, State and Local • Seize the opportunity in Asia. Governments and key local industry bodies are shown below along with their • Position Queensland as a relevant tourism development objectives. leading destination for tourism infrastructure investment.
Tourism 202051 • Improve access to tourism transport Commonwealth Government and infrastructure.
• Encourage high-quality • Connecting Asia to the regions. tourism experiences, including Indigenous tourism. Shaping SEQ53 • Work with industry to support the Queensland Government development of tourism infrastructure that can drive demand. • Build upon the region’s international brand to promote tourism opportunities that will enhance economic, environment, social and cultural benefits.
• Facilitate tourism opportunities by enhancing enabling infrastructure and services, particularly airports, major roads and rail, and digital technology. COMMUNITY AND STAKEHOLDER CONSULTATION 17
Gold Coast 202254 City of Gold Coast T 2019-20 Queensland budget • We have infrastructure that supports productivity and growth. G C We have connected and vibrant economic precincts. • We are a globally recognised tourism destination. Our city attracts visitors $19.9 million from all over the world. G T • Facilitate the development of I world-class tourism infrastructure to grow the city’s reputation as a premier tourism destination.
• We have a positive global reputation. $14.4 million We are an emerging world-class A T boutique city attracting trade A and investment. Economic Development Strategy 202355 $3.8 million City of Gold Coast C A • Identify and deliver projects to S maximise economic outcomes and A the city’s reputation as a world-class tourist destination.
• Grow the city’s reputation as a $21.4 million premier tourism destination through GTH C G C the development of world-class tourism infrastructure. • Deliver a plan aimed at attracting investment into tourism infrastructure. $807.5 million G C
SOURC 18 GOLD COAST GLOBAL TOURISM HUB
Destination Tourism • Ensure the tourism industry capitalises Management Plan 2014–202056 on the legacy opportunities presented Queensland Government, City of Gold by the event (Commonwealth Games). Coast, Destination Gold Coast • Improve competitiveness of the Gold • Actively engage and support Coast in securing major new events for major catalyst, revitalisation and the city. development opportunities which The DTMP sets the ambitious target of complement or expand the core doubling overnight visitor expenditure to destination hero experiences and the $7 billion per annum by 2020.58 In the year evolving desires of key source markets ending March 2019, the region achieved and best prospect segments to increase overnight visitor expenditure of $5 billion visitor expenditure, length of stay and – trailing the objective by $2 billion. This repeat visitation. consisted of $3.6 billion from overnight • Development of appropriate domestic visitors59 and $1.36 billion from world-class event infrastructure and the overnight international market.60 delivery capability. The 2020 target planned to see 19 million • Identify and secure potential investors domestic visitor nights in the Gold Coast for new tourism infrastructure by 2020.61 However, while a significant and attractions. increase was achieved in the year ending March 2019, in part achieved by a boost • Delivery of a catalyst project under from the Commonwealth Games, that each hero experiences. period still only brought 15.8 million domestic visitor nights to the Gold • Alignment of the City’s investments to Coast, contributing $3.6 billion towards building hero experiences. the target.62 • Three medium-term catalyst projects The DTMP also sets the goal of delivering to follow the Gold Coast 2018 a catalyst project under each hero Commonwealth GamesTM (GC2018). experience, and three medium-term • Introduce a destination wide focus on catalyst projects following the quality and service delivery. Commonwealth Games. Catalyst projects listed includes a purpose-built dive attraction, iconic surf museum, IRD, Destination Gold Coast Five Year mountain bike and adventure trails, and 57 Plan 2017–2021 staging and events infrastructure. While Destination Gold Coast some progress has been made, this goal has not been met. • Deliver an evolved tourism brand which is relevant and appealing for visitors, The Queensland Government’s proposed true to the destination, competitively GTH for the Gold Coast seeks to address focused and aligned with the City of many of the policy objectives of these Gold Coast’s broader city positioning. tourism strategies. It is unlikely that the ambitious objectives set for the Gold • Maximise economic return through a Coast can be met without a significant focused and aligned approach to best increase in international visitors, prospect source markets. which would require a step change • Maximise the yield associated with investment in new tourism infrastructure all international visitor traffic, by and experiences, such as a GTH. encouraging a longer length of stay and a broader array of experience. COMMUNITY AND STAKEHOLDER CONSULTATION 19
VISITATION TRENDS As a destination, the Gold Coast is largely favoured by the domestic market and is losing market share and its place as an international tourist destination.
While domestic tourism for the Gold In the year ending March 2019, the Coast is up 16.8 per cent in the year total domestic market (daytrippers and to March 2019,63 international tourism overnight) accounted for a significant declined by 2.1 per cent.64 This represents 92 per cent of the total visitor numbers, a decrease of 22,000 international while more lucrative international visitors visitors to the Gold Coast. Over the same only contributed eight per cent of total period international visitors increased visitation.69 70 These statistics demonstrate by approximately 132,000 to Melbourne, that the Gold Coast is not living up to 11,000 to Sydney and 9,000 to Hobart.65 its ambition to become an international destination of choice. It remains largely This matters because while domestic a short-stay holiday destination for visitors to the Gold Coast spend on Australians. While ever this is the case, the average $900, international visitors Gold Coast will not be able to reap the 66 spend $1,323, or 32 per cent more. benefits of international tourism and the The Gold Coast achieved record highs higher spending visitors it attracts. for tourism in the year ending March However, the combination of low cost 2019 with total visitation, including airlines and increasingly accessible and overnight and daytrips, growing to affordable international destinations approximately 13 million, and expenditure has meant that even some Australians 67 68 increasing to $5.8 billion. This is highly who traditionally make up the Gold likely to be a result of the temporary Coast’s market are now tempted to visit impact of travel associated with the destinations like Bali, Thailand and Fiji.71 Commonwealth Games.
International visitors % % 8 ALMOST 92 of visitors Domestic 80% drive visitors Daytrips % ACCOUNT FOR of all MORE THAN 60 visitation
SOURCE: Tourism Research Australia, National and International Visitor Surveys, March 2019 and Destination Gold Coast 20 GOLD COAST GLOBAL TOURISM HUB
I M D
Visitation grew by 16.8 to four million Expenditure increased by 22.6 to $3.6 billion
SOURCE: https://cdn2-teq.queensland.com/~/ media/3515de79ba7743e9b37854f6a7458fa6.ashx?vs=1&d=20190716T164718
I V by 2.1 per cent to one million
HOWEVER
E by 3.8 per cent to $1.4 billion C
SOURCE: https://cdn2-teq.queensland.com remains the Gold Coast’s /~/media/58b9fb7ab4ae48d989a9976bdf 5bde7a.ashx?vs=1&d=20190618T142755 largest international source market, 1 .1 251 000
SOURCE: https://cdn2-teq.queensland.com/~/ media/58b9fb7ab4ae48d989a9976bdf5bde7a. ashx?vs=1&d=20190618T142755 COMMUNITY AND STAKEHOLDER CONSULTATION 21
Similarly, international visitors are International holiday visitation to the being attracted to competing domestic Gold Coast has not kept up with the destinations. It is relevant to understand growth experienced in key competing how the Gold Coast currently compares Australian destinations over the past five against its top national competitors years.73 Between 2015 and 2019 (years which Destination Gold Coast identifies ending March) international holiday as Melbourne, Sydney and Tasmania.72 visitation to the Gold Coast achieved a In order to assess the Gold Coast’s compound annual growth rate of only market performance in relative terms, 5.8 per cent compared to the national key international tourism performance average of 8.7 per cent.74 indicators have been benchmarked across all locations.
INTERNATIONAL HOLIDAY VISITATION (YEAR ENDING MARCH 2015 TO MARCH 2019)
2500 Sydney 2000 CAGR = 7.8%
1500 Melbourne CAGR = 10.7%
Visitors (000s) Visitors 1000 Gold Coast CAGR = 5.8% 500 Hobart and the South CAGR = 14.3% 0 YE Mar 2015 YE Mar 2016 YE Mar 2017 YE Mar 2018 YE Mar 2019
SOURCE: Tourism Research Australia, National and International Visitor Surveys, March 2015 – March 2019 International Holiday Visitation Year Ending December 2014 to 2018 22 GOLD COAST GLOBAL TOURISM HUB
For the year ending March 2019, the This decline in average length of stay average length of stay for international is particularly highlighted by a 17.2 per holiday visitors to the Gold Coast was 5.6 cent reduction in the number of nights days, a slight decrease from 5.9 days in Chinese holidaymakers spent on the Gold the year to March 2015. This is lower than Coast in 2018, despite being a key source the average length of stay in Sydney, of tourism growth nationally.76 Melbourne and Hobart (10.4, 9.2 and 5.7 days, respectively).75
INTERNATIONAL HOLIDAY AVERAGE LENGTH OF STAY (YEAR ENDING MARCH 2015 TO MARCH 2019)
12
Sydney 10 Melbourne
Days 8
Gold Coast 6 Hobart and the South
4 YE Mar 2015 YE Mar 2016 YE Mar 2017 YE Mar 2018 YE Mar 2019
INTERNATIONAL HOLIDAY TRIP EXPENDITUREInternational Holiday (YEAR Average ENDING Length of MARCHStay 2015 TO MARCH 2019) Year Ending December 2014 to 2018 3500 Sydney 3000 CAGR = 9.2%
2500
2000 Melbourne CAGR = 11.7% 1500 Expenditure ($M) Expenditure 1000 Gold Coast CAGR = 4.0% 500 Hobart and the South CAGR = 16.7% 0 YE Mar 2015 YE Mar 2016 YE Mar 2017 YE Mar 2018 YE Mar 2019 SOURCE: Tourism Research Australia, National and International Visitor Surveys, March 2015 – March 2019 International Holiday Trip Expenditure Year Ending December 2014 to 2018 COMMUNITY AND STAKEHOLDER CONSULTATION 23
Chinese tourism to Australia is predicted This decrease in the average length to increase approximately 170 per cent of stay has also resulted in the Gold between 2018 and 2026–27.77 78 However, Coast losing important international trip in the year ending March 2019, the expenditure that has been captured by number of Chinese visitors to the Gold the city’s competitors.83 Coast fell by 17.1 per cent. The following facts help guide what the Gold Coast may This may be due to tourists from higher need to develop in order to capture its yielding markets opting for other share of the significant increase in future destinations over the Gold Coast. In Chinese visitation expected nationally: this context, it is evident that the Gold Coast has the ability to attract some • A 2016 McKinsey report finds that “the international tourists, however is not popularity of international travel is capitalising on the opportunity to extend astounding among Chinese consumers”, visitation and capture expenditure. but also that the Chinese favour luxury products and experiences;79 The Australian international business market is predominantly held by Sydney • The 2017 Hurun report into Chinese and Melbourne. The Gold Coast has tourism indicates a strong preference experienced modest growth in this by Chinese travellers for luxury hotels market, although it is by no means a key and fine dining experiences.80 In fact, destination for international business hotel quality, including brand, service visitors, achieving less than four per cent and facility, is ranked as the most of the total Australian market. There has important factor for Chinese tourists been good percentage growth in this when booking accommodation;81 and market (off a very low base) for the Gold Coast over the past five years, achieving • A Tourism Research Australia report 7.5 per cent compound annual growth into the Australia’s potential to attract in visitors compared to 4.2 per cent for Chinese tourists points to their desire total Australia.84 to “flaunt” their ability to travel and experience unique offerings.82
INTERNATIONAL BUSINESS VISITATION (YEAR ENDING MARCH 2015 TO MARCH 2019)
500 Sydney CAGR = 4.6% 400
300 Melbourne CAGR = 4.4%
200 Visitors (000s) Visitors Gold Coast 100 CAGR = 7.5% Hobart and the South CAGR = N/A 0 YE Mar 2015 YE Mar 2016 YE Mar 2017 YE Mar 2018 YE Mar 2019 SOURCE: Tourism Research Australia, National and International Visitor Surveys, March 2015 – March 2019
International Business Visitation Year Ending December 2014 to 2018 24 GOLD COAST GLOBAL TOURISM HUB
ACCOMMODATION PERFORMANCE AND OFFERING Hotel occupancy on the Gold Coast is falling well short of its competitors and there is an uncertain development pipeline for the region.
Sector performance OCCUPANCY 2018
Accommodation occupancy on the 87.1% Gold Coast has remained fairly stable 85.2% 87.1% (72.4 per cent in 2018, which was (-0.8%85.2% YoY) (-1.6% YoY) 80.3% 72.4% (-0.8% YoY) (-1.6% YoY) (+0.3%80.3% YoY) the Commonwealth Games year) (+1.7%72.4% YoY) (+0.3% YoY) but far lower than key competitive (+1.7% YoY) destinations in Sydney, Melbourne and Hobart (87.1 per cent, 85.2 per cent and 80.3 per cent, respectively).85
Accommodation operators on the GOLD COAST MELBOURNE SYDNEY HOBART GOLD COAST MELBOURNE SYDNEY HOBART Gold Coast increased their average room rates in 2018 by 7.6 per cent to $202 per room.86 This is likely to be a AVERAGE RATE PER ROOM 2018 result of the Commonwealth Games due to large numbers of spectators, businesses and international support $261 teams travelling to the region. It is (+0.6%$261 YoY) therefore unlikely that these rates will be $207 (+0.6% YoY) $202 $207 sustainable in coming years. (+7.6%$202 YoY) (+0.6% YoY) $180 (+0.6% YoY) (+7.6% YoY) (+2.4%$180 YoY) The Hotel Futures 2019 Report states (+2.4% YoY) that hotel room revenues will fall for the first time in almost a decade this financial
year, with revenue per available room GOLD COAST MELBOURNE SYDNEY HOBART
expected to slow following years of GOLD COAST MELBOURNE SYDNEY HOBART consecutive growth.87 REVENUE PER AVAILABLE ROOM 2018
$227 (-1.0% YoY) $176 $146 (-0.2% YoY) $145 (+9.4% YoY) (+2.6% YoY) GOLD COAST MELBOURNE SYDNEY HOBART
SOURCE: Cushman and Wakefield (December 2018), Australia and New Zealand Hotel Market Overview. COMMUNITY AND STAKEHOLDER CONSULTATION 25
New and upcoming Compared to its competition, the Gold developments Coast appears to have increased supply of new accommodation in 2018 by 4.6 In order to remain current and support per cent, second to Melbourne which growth in market demand, particularly increased seven per cent over the year.89 from the international holiday market, accommodation offerings need to be NEW HOTEL SUPPLY 2018 regularly updated and refurbished, and new stock delivered. 1,767 Refurbishments and new development (+7.0% YoY) For the Gold Coast, much of its existing 639 stock is aged and struggling to present (+4.6% YoY) 473 0 a compelling drawcard against key (+2.1% YoY) (0% YoY) competitive destinations: Sydney, Melbourne and Hobart. This, along with a lack of new tourism and experience GOLD COAST MELBOURNE SYDNEY HOBART drawcards, is evidenced through the SOURCE: Cushman and Wakefield (December 2018), average occupancy noted previously. Australia and New Zealand Hotel Market Overview, page 14.
There are no major refurbishments While the direct impact of these reported over the past 12 months. investments cannot yet be tested, these However, the Gold Coast has seen the offerings and their associated amenity, development of some new stock. In 2018, do not present a compelling case to the Gold Coast region completed four be a catalyst for long-term growth in new accommodation projects, including: Queensland’s tourism, and specifically • The Darling at Broadbeach – 57 new the Gold Coast. luxury hotel rooms;
• AVANI Broadbeach – 219 new upper upscale hotel rooms;
• Mantra Southport – 120 new upscale hotel rooms; and
• Ruby Apartments at Surfers Paradise – 243 new luxury hotel rooms.88 26 GOLD COAST GLOBAL TOURISM HUB
Development pipeline Included in this pipeline is the offering provided within The Star’s approved The Gold Coast’s pipeline for new master plan. The project provides an hotel development currently under extension to the existing facility and construction and for future development includes the development of four new trails all its competitors. accommodation towers (including both While the Gold Coast has a significant hotel and residential), restaurants, bars, number of rooms approved for future entertainment services as well as other development, the likelihood of some resort amenities such as pools, spa or all of these progressing is uncertain, and facilities. according to The Hotel Futures 2019 Despite the significance of the proposed 90 Report. This is in comparison to development, many suggest the project in Melbourne, Sydney and Hobart which all isolation is unlikely to shift the dial for the have developments likely to proceed in Gold Coast’s international tourism agenda. 91 the future. While it provides additional residential development and tourist accommodation, it does not provide a new drawcard to ROOMS DUE FOR COMPLETION attract international visitors to the Gold Coast in its own right.
The Star has also not taken the 4,223 opportunity in its current master plan to by 2022 satisfy the need for additional convention 485 or entertainment capacity on the Gold by 2022 701 by 2021 Coast. The ratio of residential apartments 2,290 to hotel rooms also remains unclear. by 2021 HOBART
GOLD COAST In letters to the Minister for Innovation and Tourism Industry Development and MELBOURNE SYDNEY most in luxury Minister for the Commonwealth Games, segment provided by The Star, management speak to the existing Gold Coast casino ROOMS APPROVED working in tandem with their new Queen’s Wharf development in Brisbane.
3,733 “Our Gold Coast master plan, 3,100+ together with Queen’s Wharf but uncertain Brisbane, creates a powerful 2,450 world-class SEQ tourism hub 297 with twin huge-scale anchor properties.”
“The Star Entertainment Group HOBART
GOLD COAST MELBOURNE SYDNEY wishes to leverage our two SEQ
SOURCE: Cushman and Wakefield (December 2018), properties to drive visitation Australia and New Zealand Hotel Market Overview, page 14. growth to Queensland.” COMMUNITY AND STAKEHOLDER CONSULTATION 27
The Star is contractually committed to a $3.6 billion investment for the Queen’s Wharf Brisbane development. In contrast, The Star is not contractually bound to the State to deliver on future plans on the Gold Coast. Some stakeholders felt that this could result in the Gold Coast missing out on many of the benefits Brisbane would likely receive. The Star acknowledges that commitments are “dependent on the market conditions and competitor landscape”.92 This provides little assurance to the State when the projects will be delivered.
The relative investments in their two South East Queensland facilities suggests the Gold Coast will play a supplementary role to Brisbane’s Queen’s Wharf and not be an international tourism attracter in its own right. Without significant new investment on the Gold Coast to develop new product offerings and attractions, the region will not receive the tourism growth required to meet its own tourism objectives. 28 GOLD COAST GLOBAL TOURISM HUB
CONVENTION FACILITIES The Gold Coast’s current convention facilities are unable to compete against newer, larger venues nationally, resulting in declining market share and potential economic returns for the region.
In the 2017–18 financial year, the Gold A number of interviewees also pointed Coast hosted 3,020 meetings and to the lack of a significant entertainment conventions and 222,000 delegates,93 facility on the Gold Coast. This means generating a $537 million economic that entertainment events are being injection.94 More than 600,000 people hosted by the GCCEC potentially at the listed business as their main reason for expense of conventions. visiting the region in the year ending March 2019 alone.95 The majority of the Finding alternative convention facilities is large business events, and the associated not proving difficult for event organisers visitors, are likely to have been held at the with the last seven years seeing region’s primary business and conference significant upgrades and expansions to venue – the GCCEC. centres in Brisbane, Sydney, Melbourne and Adelaide. The GCCEC has not The GCCEC has been the subject of experienced any major redevelopment numerous reviews into its capacity, since an expansion in 2008. constraints and future capability as an international and domestic convention With demand for convention and location. A preliminary business case entertainment space increasing, and has been prepared which investigated newer larger facilities accessible in other the need to upgrade and expand the locations around the country, it is likely GCCEC to meet demand for national the Gold Coast will continue to lose and international conventions on the market share, and the economic returns it Gold Coast.96 brings, unless significant change is made.
These reviews, media articles and feedback from a number of interviewed stakeholders are evidence of the GCCEC struggling to meet the requirements of event organisers due to capacity constraints. With existing conventions outgrowing the Gold Coast’s facilities, organisers are increasingly looking to other regions that satisfy their conference needs.97 COMMUNITY AND STAKEHOLDER CONSULTATION 29
GOLD COAST C MELBOURNE C E C E C
CAPACITY CAPACITY 6,000 12,500
CONVENTION CONVENTION SPACE SPACE 6,000m2 30,000m2*
COST COST $167 million $800 million
BRISBANE C I C E C C SYDNEY
CAPACITY CAPACITY 8,000 12,000
CONVENTION CONVENTION SPACE SPACE 20,000m2 35,500m2
COST COST $310 million $1.1 billion**
S E C C M B CAPACITY CONVENTION SPACE COST S SINGAPORE 45,000 120,000m2+ N/A
* Expansion plans will increase to 40,000m2 ** Redevelopment (completed 2016) 30 GOLD COAST GLOBAL TOURISM HUB
THE COMMONWEALTH GAMES EFFECT The 2018 Gold Coast Commonwealth Games assisted the tourism sector in the short-term, but is not likely to continue to be a reason to visit the Gold Coast.
In April 2018, the Gold Coast hosted the Commonwealth Games bringing thousands of spectators and 6,600 athletes and officials to the city for the 11 day event. This event-induced influx of visitors can be seen in increases to accommodation occupancy and revenue returns in 2018.98
The Commonwealth Games are likely to be a significant factor in the increase in domestic tourism experienced in the year to March 2019. However, despite the Games, international visitation declined over the same year.
COMMUNITY AND STAKEHOLDER CONSULTATION 31
Hotel occupancy on the Gold Coast rose SUMMARY in 2018 but still fell short of the figures achieved by its key national competitors. Across relevant federal, state and With industry predicting that hotel local government policies, tourism is revenue per available room will slow for identified as a key economic driver the first time this financial year103 and the with new world-class tourism product Gold Coast’s development pipeline looking development universally supported. uncertain,104 the need to focus on tourism The Queensland Government supports growth is more important than ever. investment in infrastructure to capitalise on tourism opportunities. City of Gold Business visitation is an important element Coast favours catalytic projects which of growing tourism and economic returns, revitalises existing offerings and attracts however current convention facilities on new investment. the Gold Coast are proving to be unable to meet the demands of event organisers. Visitation trends demonstrate that as a As facilities continue to age and limit destination the Gold Coast is still largely capacity, the market will continue to favoured by the domestic market, transition to other national locations with with 92 per cent being Australian and new, larger centres. 80 per cent arriving to the region by car.99 The Gold Coast is losing its share While the Gold Coast market likely has of the international holiday market the capacity to accept and support a to competing destinations such as GTH from an accommodation, retail Melbourne, Sydney and Hobart. Even and convention perspective, a detailed in the year ending March 2019, which assessment will be required to ensure captures the Gold Coast Commonwealth that the proponent’s offering is best Games, international holiday visitation suited to the market. trailed the national average by 2.9 per The GTH proposal has the potential cent.100 The region was also unable to to be the catalyst for the Gold Coast secure the increasing international trip to compete on the global stage. As a expenditure that its competitors did.101 genuine international tourism attractor, This may have been a result of the 17.2 this GTH can be the drawcard required per cent reduction in the number of to increase visitation, length of stay nights Chinese holidaymakers spent and expenditure. A development of this on the Gold Coast, despite being a key scale and quality can provide the source of tourism growth nationally.102 much-needed step change in visitation Without change, the Gold Coast may not trends – moving the Gold Coast from a capture the significant increase in future short-stay holiday choice for Australians, Chinese visitation expected nationally. to reclaiming its potential as an international tourist destination. 32 GOLD COAST GLOBAL TOURISM HUB
Community feedback
While research suggests that the Gold Coast has the need for a GTH, it was a priority to engage the Gold Coast community to understand their attitude towards the proposal. A balance of stakeholder groups, organisations, elected representatives and local residents from across the Gold Coast were consulted in order to ensure community sentiment was accurately captured.
In order to inform itself of community email to Gold Coast business leaders sentiment regarding a GTH, the Panel requesting their position on the GTH. used methodologies from the IAP2 Quality Assurance Standard Process This section of the report outlines the for Community and Stakeholder overarching themes raised in consultation Engagement105 and undertook the activities, and includes: following consultation (detailed in • Existing tourism offering and state of Appendix 1): the Gold Coast economy;
• One-on-one consultations with • Limited understanding of a GTH and 38 stakeholders/groups from its offering; local and state government, businesses, community groups • Balancing the competing objectives of and representatives from tourism, international and local markets; education and industry bodies including members of clubs, hotels, • Opposition to the use of public land pubs and the existing casino; • Potential sites raised – support • Four focus groups of Gold Coast and opposition; residents (with approximately eight • Saturation of the gambling market; residents randomly selected for each group); • Impact on community clubs;
• An online survey of 546 Gold Coast • Southport’s effectiveness as a CBD; residents; and • Capacity of the existing transport • An analysis of 211 written submissions infrastructure; and received via email and post, following a call for submissions advertised • Previous development attempts cause in the Gold Coast Bulletin and an investment uncertainty. COMMUNITY AND STAKEHOLDER CONSULTATION 33
Consultation feedback and public reports EXISTING TOURISM OFFERING indicate that many of the Gold Coast’s AND STATE OF THE GOLD built attractions are ageing and that COAST ECONOMY there is very little in the way of new tourism infrastructure or attractions. Perceptions of the Gold Coast economy Focus group participants supported the and tourism varied, although there is a need to revitalise existing infrastructure widely held view that it is currently stable – particularly in Surfers Paradise, and some struggle to understand what Southport and Broadbeach – to better a new development could achieve for harness what is currently available to the Coast. increase tourism. Similarly, 59 per cent of survey respondents believe that the Tourism is seen as the bedrock of the Gold Coast needs a new significant Gold Coast economy – the direct and tourism development. indirect source of most employment. Ninety-one per cent of those surveyed feel that tourism is important to the Gold “Some infrastructure is Coast, citing reasons as job creation getting tired, we need to (86 per cent), strengthens the economy have improved offerings to (81 per cent) and helps small businesses continue to compete at an (78 per cent). international level.” STAKEHOLDER INTERVIEW “It’s the life blood, the economy would collapse [without tourism].” “It’s been a long time since FOCUS GROUP PARTICIPANT this city had a truly new and fresh offering.” While the majority of locals surveyed STAKEHOLDER INTERVIEW perceive that tourism is increasing, particularly with the international market “It is imperative that we deliver (73 per cent), tourism data shows this something new because we will is not the case. Stakeholder interviews not succeed if we do not.” support this perception with many STAKEHOLDER INTERVIEW attributing the international exposure provided by the Commonwealth Games While there have been a number of new as the reason for a maintained state of developments and hotels in recent years tourism in the region. However, several such as the Jewel development and The questioned the sustainability of these Star redevelopment, many stakeholders post-Games benefits. mention that they do not consider these adequate to provide the step change, “We’re just starting to see capacity and experiences required to tourism come off the boil a little significantly grow tourism. bit. Maybe the Games prevented that from occurring for a while In a 2013 survey conducted by Tourism but there definitely needs to Research Australia, only five per cent of be an injection of positivity and visitors indicated that the main reason economically to get the city they visited the Gold Coast was for going again.” the “variety of things to do”.106 Across STAKEHOLDER INTERVIEW all engagement activities, particularly through written submissions from the 34 GOLD COAST GLOBAL TOURISM HUB
Gold Coast community, the region’s “The assumption was that we ‘green and gold’ of the hinterland were losing market share to and beaches are perceived to be the other beach destinations, but greatest assets that should be used to that’s not true. It’s other cities attract tourism. For a small number of like Sydney.” stakeholders, promoting the ‘green and STAKEHOLDER INTERVIEW gold’ and reinvesting in existing tourism infrastructure is the whole answer to growing tourism. Others see it as a “I see the Gold Coast slipping component of a more comprehensive in terms of competitive edge solution. While 93 per cent of survey – there is no new product respondents believe tourists visit the or reason for people to Gold Coast for the beach, and 53 per come back.” cent for the hinterland, 61 per cent also STAKEHOLDER INTERVIEW feel tourists like visiting the Gold Coast for quality hotels and resorts. “The Gold Coast is doing better “The greatest attributes of our than anywhere else in regional tourism…are the beautiful natural Queensland but we have not had assets we offer for tourists to the investment in productivity enjoy. The beach, the hinterland, enhancing infrastructure…and parks and The Spit. And our there doesn’t appear to be a beautiful weather, waterways pipeline of infrastructure.” and healthy lifestyle. These are STAKEHOLDER INTERVIEW the city’s greatest strengths.” WRITTEN SUBMISSION “It’s not as busy during low season.” “The Gold Coast is rich in 138+ FOCUS GROUP PARTICIPANT natural and manmade attractions. We’re not short of attractions, we Fifty-nine per cent of local residents just need to refresh them.” are also supportive of initiatives and developments that are designed to STAKEHOLDER INTERVIEW grow tourism. Focus groups found that “The beach and the theme parks, there is no spontaneous call for creating the lifestyle, the laid back resort infrastructure to protect or grow the style living.” tourist market, but no opposition either, as long as it will be effective. FOCUS GROUP PARTICIPANT Survey respondents feel that a GTH will “Our beaches, compared to a lot attract more and new international (78 around the world, are second per cent) and domestic (72 per cent) to none.” tourists, and 80 per cent agree that FOCUS GROUP PARTICIPANT a large-scale development such as a GTH will allow for more employment There is some acknowledgement that opportunities on the Coast. the Gold Coast is no longer Australia’s tourism capital, with the likes of Sydney, Melbourne and Hobart attracting a greater market share due to new and unique offerings. COMMUNITY AND STAKEHOLDER CONSULTATION 35
Similarly in focus groups, there was “Any major project that no recall of a GTH proposal or much is funded by the private unprompted recall of any significant sector providing additional development proposals. Without further infrastructure, drives explanation, the GTH terminology is investment, increases local deemed confusing and imparted little employment and attracts understanding or vision of what the international tourists has got proposal offered. Many stakeholders think to be good for the Gold Coast, the terminology means an information good for the economy and kiosk, a transport node, a government overall good for the State department or a group of smaller sites. of Queensland.” WRITTEN SUBMISSION “A train station or a bus station.” FOCUS GROUP PARTICIPANT
However, there is concern about the “It could be a lot of current capability gap for high-end different things.” hospitality workers in South East FOCUS GROUP PARTICIPANT Queensland and the recent abolishment of the Temporary Work (Skilled) “Is it a property, building or visa (subclass 457) to employ skilled different areas?” international workers. FOCUS GROUP PARTICIPANT These varied attitudes demonstrate that “Information spots with things to Gold Coast stakeholders and community do on the Gold Coast, transfers members don’t believe there is a ‘silver and what not to other places.” bullet’ to build tourism in the region. A majority feel the region’s natural assets FOCUS GROUP PARTICIPANT should be better promoted and leveraged, but there is also support for development “People don’t understand that when a case is made to do so. the GTH has a casino involved, they have many different perceptions that need to be corrected due to several sources LIMITED UNDERSTANDING OF A of information about the GTH.” GTH AND ITS OFFERING STAKEHOLDER INTERVIEW
Throughout consultation the term Similarly, broad descriptions such as ‘high ‘global tourism hub’ did not resonate quality, mixed use destination’ are not with stakeholders. There is a lack of understood. While not tested, descriptors understanding as to what a GTH is, why such as ‘precinct’ or ‘resort development’ it is needed and the benefits that it could may be more helpful in gaining a quick deliver for the Gold Coast. understanding of the offer and creating more of an image. Only a small proportion of those surveyed could recall hearing about Once survey respondents were provided a GTH (12 per cent) or an IRD (10 per with a description of a GTH, one in two cent). While awareness remains low (56 per cent) support the development after hearing a description, more than because of a belief that it will help the half (56 per cent) state they support the economy, attract more tourists, and think development, with a further 22 per cent it sounds appealing and unique. Those holding a neutral position. who remain opposed (13 per cent) after 36 GOLD COAST GLOBAL TOURISM HUB
hearing a description believe there’s too “It doesn’t bring in new interest, much development on the Gold Coast it takes it from somewhere else.” (60 per cent), dislike the idea of a second FOCUS GROUP PARTICIPANT casino (58 per cent) and are concerned that it isn’t differentiated enough The ambiguity regarding the term GTH from what the Gold Coast already has and the definition provided has resulted (54 per cent). in a large degree of scepticism about the project with many respondents stating The need to differentiate the GTH they feel the term is confusing, used to proposition from existing offerings mask an additional casino, and did not is critical. Focus group participants, explain the objective or reason why the for example, were able to cite many project is needed. instances of what they believe are existing tourism infrastructure which meets the current description of a GTH: the iconic architecture of Q1, high-end BALANCING THE COMPETING hotels with Palazzo Versace, boutique OBJECTIVES OF INTERNATIONAL and quality shopping at Pacific Fair, AND LOCAL MARKETS a casino at The Star, and convention facilities, cinemas, tourist attractions, Consultation reveals an underlying bars and quality restaurants throughout tension between the assumed needs and the region. wants of the international market and local residents. While a GTH intends to grow tourism and attract international “We struggle to see the gap – visitors, many raise the need for any new the Gold Coast has everything facility to appeal to local residents as well. the GTH says it wants to be.” Seventy-eight per cent of survey STAKEHOLDER INTERVIEW respondents said that international tourists are set to benefit the most from “I have seen that everywhere else the development of a GTH on the Gold on the Gold Coast.” Coast. Through stakeholder interviews, many feel that for a GTH to be desirable FOCUS GROUP PARTICIPANT to the international market, it will need “That sounds like the Star Casino to be grand and on par with Las Vegas; to me if they expanded and however this creates concern about added a few of those.” misalignment with the Gold Coast’s culture, lifestyle and values. FOCUS GROUP PARTICIPANT
As a result, people question the GTH’s “It would wipe out the ability to attract a greater tourism market small-town, country feel that and instead fear it will redistribute the Gold Coast still has.” existing tourism and damage smaller FOCUS GROUP PARTICIPANT operations on the Coast. “Making everything upper class is “It might knock out independent going to alienate people.” hotel owners especially in FOCUS GROUP PARTICIPANT Broadbeach where there are a lot of little hotels.” While 58 per cent of survey respondents said the development sounds like FOCUS GROUP PARTICIPANT something they will like to visit, when COMMUNITY AND STAKEHOLDER CONSULTATION 37
asked how often, just 11 per cent said they will visit at least once per month, “[The population] is expected with the balance of respondents saying to almost double in the next 20 they will visit less than once per month. years…which will put enormous pressure on green spaces in our Some locals like the idea of a high quality city, particularly the critically development, but many question the important green spaces we will expense and feel it sounds unaffordable. need in our high-density and built up areas.” “Probably couldn’t afford it but I WRITTEN SUBMISSION would go and see it.” FOCUS GROUP PARTICIPANT “Gold Coast city centres have “Really important that it’s a place very limited public open space where local people can go and and retention in perpetuity access affordable things with all of prime public open space, of the higher-quality benefits – especially spaces adjacent to that would draw a lot of people.” water frontage, is vital for the FOCUS GROUP PARTICIPANT health and wellbeing of residents and the enjoyment of visitors.” “Locals wouldn’t be able to WRITTEN SUBMISSION afford it on a regular basis.” FOCUS GROUP PARTICIPANT “If [a GTH] is meant to be a viable commercial private enterprise, then it stands to reason that it should be in a OPPOSITION TO THE USE OF position to stand alone on PUBLIC LAND its own two feet, like every other commercial real estate/ Many community members and key resort venture.” stakeholders cite their opposition to the use of public land for private WRITTEN SUBMISSION development. One factor in this is the The site attracting media attention is widely held belief that viable commercial Carey Park at Southport. The use of this developments should ‘stack up’ without public land for this purpose is strongly gifting Crown land to private companies. contested amongst stakeholders and Further concerns raised included a community members, with concerns desire to preserve open, green space around its heritage listing and public car for the community as population and parking facilities. development continues to grow in the region and to maintain residents’ “Carey Park has built (the old current lifestyle. seawall) and vegetation heritage listings and significance that This population growth forecast is cannot be ignored.” expected to be a key point used by opponents of the GTH as a wedge to WRITTEN SUBMISSION divide the community. “Parking spaces in Southport “The Government should not sell are down to the minimum since off Crown land. It was given to the introduction of the light them to be protected and we are rail which took so many of our trustees of it.” parking spaces.” WRITTEN SUBMISSION WRITTEN SUBMISSION 38 GOLD COAST GLOBAL TOURISM HUB
POTENTIAL SITES RAISED – Carey Park SUPPORT AND OPPOSITION Reasons for support More than two in three (68 per cent) Some respondents see Carey Park survey respondents state that their as a viable location. For these support for a GTH development is respondents, Southport is an ideal dependent upon the location, with 62 per location as it is easily accessible by cent agreeing that it can help bring life to light rail, has the nearby Broadwater some areas of the Gold Coast that aren’t Parklands and beaches and would thriving. These key drivers of support give the area a significant economic demonstrate the importance site plays in boost. This is especially the case strengthening community endorsement for these supporters in terms of of the project. developing Southport as the CBD of the Gold Coast, citing that it will be Several specific locations were raised the first commercial development throughout the consultation period. in the area and will stimulate future These, along with reasons for support growth in the designated Priority and reasons for opposition, are Development Area. summarised below. Reasons for opposition Significant controversy surrounds Carey Park as a proposed location. Old Gold Coast Those opposed take a strong stance Hospital against the use of public land for commercial purposes and see it as a Reasons for support further reduction in publically available Some support for this site as a space, including amenities such as potential location for the GTH as there car parks. Some raise that the City of is a belief that the public are not losing Gold Coast voted against this area ‘prime’ waterfront space and it is large so it should not be an option. Some enough to be viable. respondents are concerned about the fate of the Southport Bowls Club Reasons for opposition and Tennis Club. Others mention the heritage significance as the old seawall While there is no explicit opposition is located underneath the park. to the use of this site, some pointed out that it is now the subject of private development and not available for use. Broadwater Parklands
Reasons for support There is no support for locating a GTH on the Broadwater Parklands.
Reasons for opposition Strong opposition to the use of the parklands due to the open, green space desired by the community. This has also been excluded by Government as a potential site. COMMUNITY AND STAKEHOLDER CONSULTATION 39
Broadwater Tourist Coolangatta Park Reasons for support Reasons for support Suggestions for the Southern Gold Suggested by several stakeholders Coast due to its current lack of due to its proximity to the waterfront, development, proximity to the airport parklands and light rail. and potential access to extended heavy and light rail. Reasons for opposition Reasons for opposition Other respondents opposed this site due to its proximity to the parklands Perceptions that the Southern and potential impacts on the Gold Coast is famous for surfing local community. and not the right fit for a major tourism development due to its relaxed lifestyle.
Southport (General)
Reasons for support Nerang
Deemed the CBD of the region and an Reasons for support area that is starting to be revitalised, close to public transport, well located Currently little in the way of for tourism and will benefit from infrastructure and tourism in the area, further attractions. It is also located and a GTH would aid in stimulating somewhat away from the existing this and spreading economic return casino which is seen as a benefit. across the Coast.
Reasons for opposition Reasons for opposition Some feel Southport should remain Not perceived to be an attractive a business hub and a place for locals, location due to distance from the not major tourism. beachfront.
Surfers Paradise
Reasons for support Perceived to be the existing tourism precinct, and currently avoided by locals as it is considered run down, dirty and unpleasant. Respondents supported new and revitalised tourism infrastructure in Surfers and state it is a well suited location for the proposal.
Reasons for opposition A few acknowledged the lack of free space to develop in Surfers signalling a need to demolish empty/underperforming structures to make way. 40 GOLD COAST GLOBAL TOURISM HUB
Hinterland Golf/turf club Reasons for support Reasons for support Suggestions to leverage the ‘green’ The golf and turf clubs are popular of the Coast and locate a GTH closer suggestions from stakeholders to the hinterland as an eco-style given their private ownership and integrated resort. This is supported expansive land. These are considered if there are mitigations in place to to be viable options in terms of protect the surrounding environment. public acceptance. For example, one respondent suggested a virtual reality tour to Reasons for opposition promote the flora and fauna without Questions around accessibility due impact to the natural environment. to a current lack of public transport infrastructure in the area and impact Reasons for opposition on current activities. Some questioned whether this can be viable due to distance from the beachfront, limited accessibility and a lack of existing transport to Robina the hinterland. Reasons for support Large unused green area between the creek and existing stadium which Mudgeeraba already has great transport links. Suggested for its distance from Reasons for support the busyness and congestion of Proposed by a few stakeholders Broadbeach. due to availability of locations and proximity to the two stadiums. Reasons for opposition Suggestions that a third indoor While there is no explicit opposition stadium be built as part of the to the use of this site, some pointed GTH to cater to a crowd of out that a GTH should be close to 30,000–40,000 for events such as the beachfront. concerts, eSports tournaments and boxing matches.
Reasons for opposition Tuesleys Park Not perceived to be an attractive location due to distance from Reasons for support the beachfront. Suggested due to its large size, views and proximity to transport and Southport. It was also thought a GTH development could help promote the urban renewal of Southport and Labrador.
Reasons for opposition Community strongly oppose the loss of open, green space along the waterfront. It was also raised that the existing boat ramp and car park would be impacted if the area was to be developed. COMMUNITY AND STAKEHOLDER CONSULTATION 41
Main Beach Tourist Park SATURATION OF THE GAMBLING MARKET Reasons for support While some disagree, there is broad The park is located close to the disdain for the gambling industry, with existing Surfers Paradise tourism area as well as the beach, Sea World many arguing that the existing market and attractions of the Spit. It was is oversaturated with the casino, clubs also thought a GTH development and pubs that already service the region. could reinvigorate the Tedder Many locals also link casinos to poor Avenue precinct. outcomes in terms of the social and financial wellbeing of families. Reasons for opposition A frequent issue raised is the number of Opposed by the local community due to it being a high density residential EGMs per capita compared to elsewhere area. Some mentioned the small size in Australia. of the park may limit the type of Statistics about the number of EGMs per development and offerings possible. head of population is cited as a basis for this concern. However, figures provided varies between organisations, with the discrepancy likely to lie in differing Macintosh Island catchment definitions of the Gold Coast Reasons for support and Sydney, and whether the total population is included or just those over Suggested due to being a large 18 years of age. area that is well-positioned to the beach, existing Surfers Paradise tourism area, the highway and light NUMBER OF EGMS PER HEAD OF POPULATION rail network. Some also mentioned 25 the advantage of the distance from Sydney residential properties. 20 22.7 Gold Coast Reasons for opposition 15 17.7 As a highly popular recreation Sydney Gold Coast area for families, with children’s play equipment and picnic areas 10 13 12.2 provided, there is a strong sense of per 1,000 adults community ownership over this area 5 and residents are expected to defend retaining its current use. 0 Figures provided Figures provided by the by The Star 107 Oce of Liquor and The level of community support for a GTH Gaming Regulation (OLGR) 108 is dependent on the proposed location, although there is not one location suggested that receives unanimous support. While the site/s remain unknown, many feel unable to commit support as they cannot assess the benefits and impacts the development could have on the local community, and built and natural environment. While this void exists, a large portion of the community has defaulted to opposition to the development. 42 GOLD COAST GLOBAL TOURISM HUB
Some also raised the development of While many stakeholders raised the Queen’s Wharf in Brisbane as further abundance of EGMs on the Coast, they evidence of a saturated casino offering acknowledge that gambling is available in the broader geography of South East in various forms and for some the most Queensland, citing the fact that no other troublesome is online gambling. For capital city has two casinos despite having these stakeholders the introduction of larger populations than the Gold Coast. a second casino is not seen as a likely cause of increased gambling problems “The South East Queensland on the Gold Coast and they hold the market is arguably not big belief that casinos are essential for enough for the third casino and attracting tourists, especially those from this [GTH] has been superseded Asian markets. in Brisbane by Queen’s Wharf.” STAKEHOLDER INTERVIEW “If someone wants to play a poker machine, they will go However, 67 per cent of survey close to home rather than an respondents agreed or are neutral integrated resort.” about including a casino as part of the STAKEHOLDER INTERVIEW GTH development on the Gold Coast. Among those that agree (38 per cent), “There will be no issue with 1,600 the unprompted reasons are because it new machines because at least will attract more tourists (41 per cent), with a large-scale operation, be an entertainment option for residents those who have challenges with and tourists (14 per cent), and provide gambling can properly exclude good returns for the economy and jobs themselves from the venue – (12 per cent). whereas there are plenty of opportunities to gamble locally. The 28 per cent of survey respondents If we truly want to combat the who disagreed with including a casino as problem there should be an part of the development did so due to integrated exclusion program concerns about adding a second casino across Queensland and New when the Gold Coast already has one (46 South Wales.” per cent) and concerns around gambling (35 per cent). This is amplified by the STAKEHOLDER INTERVIEW knowledge among some that EGMs located in casinos are significantly more “Gambling is a disease that we profitable than those located in hotels, can’t cut out. If people are going pubs and clubs due to environmental to spend their money they will do and regulatory differences. This further it one way or another, whether entrenches people’s perceptions about that be on horse racing or their not supporting another casino with EGMs mobile phone. A second casino on the Gold Coast. will not change this.” STAKEHOLDER INTERVIEW “I’ve seen the devastation that Stakeholders and community members gambling causes first hand and I do however question the local gambling believe as a responsible Council market’s ability to tolerate the additional and Government you should not competition a GTH will bring, particularly be seeking to promote this type for the existing casino and clubs. of recreational behaviour.” Stakeholders are divided over The Star’s WRITTEN SUBMISSION contribution to the Gold Coast and its ability to draw an international tourism COMMUNITY AND STAKEHOLDER CONSULTATION 43
market. Many believe The Star is a great “The closer it is to the other contributor to the community through casino the better, it’ll drive some investments in their master plan, being competition and bring some a major employer for the region and prices down.” providing support to the community. FOCUS GROUP PARTICIPANT
“Star are considered to be a “It’s not fair to only limit people good partner to the city as they to The Star – introducing have grants which they give back competition will make The Star to the community.” compete for the market and will STAKEHOLDER INTERVIEW create new offerings which in turn will continue to encourage In contrast, others believe The Star enjoys the new place to compete.” a monopoly status and has only been STAKEHOLDER INTERVIEW prompted to invest in the Gold Coast following recent threats of competition from a GTH. These stakeholders suggest that The Star has not offered as much as IMPACT ON COMMUNITY CLUBS it could over the years or in the current master plan, with little in the way of While there is a strong perception that convention space, entertainment and the development of a GTH will benefit tourist attraction offerings. the Gold Coast economy (60 per cent) and job market (53 per cent), less than “I try to attract as many people one quarter of survey respondents as I can to hold meeting and believe it will benefit local business conferences here but the facilities owners (24 per cent). need some work. The conference centre at Broadbeach isn’t cutting Of most concern to the public and it with the size and facilities we stakeholders is the impact a GTH will require. It’s an area that we need have on the local community club to seriously focus on.” industry from competition in food and STAKEHOLDER INTERVIEW beverage offerings, entertainment facilities and especially gambling. There is a general consensus that clubs are “Star may talk about their already struggling with their immediate ‘dramatic transformation’ viability and that some clubs may not be but the product they are able to survive if another major gambling delivering is primarily provider is introduced on the Gold Coast. residential. It is woefully inadequate that their “With the opening of the master plan barely includes Queen’s Wharf integrated entertainment.” resort development project in Brisbane, the potential inclusion STAKEHOLDER INTERVIEW of an additional casino licence on the Gold Coast and Cairns, While some focus group participants the impact to community clubs see a second casino as much needed viability and ongoing community competition to The Star, they do not support is front and foremost in want a GTH to compete with existing our minds and discussions.” local community clubs. WRITTEN SUBMISSION 44 GOLD COAST GLOBAL TOURISM HUB
The club sector is strongly of the view “Community clubs and that given the current competition in their ability to be viable the gambling market on the Gold Coast, and sustainable into the the introduction of a GTH will erode future will need support their local market share and limit their from the Government and a ability to meet their objectives through commitment to identify the community contributions. basis of domestic gaming revenue, competition and the ability to compete and the “A second casino would have a ability for community clubs detrimental effect on our local to diversify and reduce their clubs, their employees, and reliance on gaming revenue in the clubs’ financial capacity the immediate future.” to continue supporting community activities.” WRITTEN SUBMISSION WRITTEN SUBMISSION
Stakeholders also express concern regarding the existing competition “The current level of faced by clubs from The Star for challenges faced border on gambling patrons, which is feared to only being anti-competitive where intensify with the entry to the market of the ability to compete has been another casino. taken away by the legislative and regulatory advantages of some “Unannounced weekly visits segments over the others.” from Star Casino management and staff, mobile billboards WRITTEN SUBMISSION parked outside our club, and advertisements targeting “The reasons gaming machines members, are examples of our were introduced to Queensland environment. The introduction of in 1992 [was because] Wayne another casino will most certainly Goss, the then Premier, declared exacerbate the issue.” clubs were able to operate gaming machines for the purpose WRITTEN SUBMISSION of community support and Clubs and their representatives also raise infrastructure.” concerns about what they perceive to be WRITTEN SUBMISSION a lack of a level playing field in relation to the regulatory regime, including the In contrast, some question the likelihood ability to provide live entertainment. of a GTH development enticing the same demographic as local clubs. It is “Clubs depend on their [gaming] argued that people attend a casino and machines because government a club for vastly different reasons so regulation has failed to address the impact will not be as significant as the issue of live performances some fear. Some state that domestic in these venues based off liquor tourists are more likely to attend a club, licence noise restrictions. They whereas international tourists will seek a want to be in the business of different experience. social enterprise but are restricted so have become dependent on poker machines because their traditional business has been restricted to non-existence.” STAKEHOLDER INTERVIEW COMMUNITY AND STAKEHOLDER CONSULTATION 45
“There is less than one kilometre between Star and Kurrawa and SOUTHPORT’S EFFECTIVENESS they happily co-exist. I am more AS A CBD likely to go to Kurrawa for meal or with my family, whereas I am Southport is acknowledged by more likely to go to Star for an stakeholders as the Gold Coast’s event.” traditional centre and business district, STAKEHOLDER INTERVIEW with many providing feedback on its effectiveness as a CBD. “Most clubs do not want a casino While some stakeholders disagree, because of the gambling and there is a strong view that Southport restaurant competition. But is not currently thriving and that new I would look at it as another development is needed to stimulate 10,000 people are driving past the economy. Some believe this is a so I need to entice them to result of overdevelopment of residential my venue.” dwellings instead of businesses following STAKEHOLDER INTERVIEW the declaration of the Southport Priority Development Area in 2013. “I think the locals will go once or twice to look at it [the GTH] but “Southport is an international then they’ll return to their local joke – all of the money poured club with their family.” into that area, there have been STAKEHOLDER INTERVIEW no new offices, there is no new infrastructure. Land that could Some stakeholders make the point that have been commercial has the size and uniqueness of a GTH is a become residential.” relevant factor in the extent to which it would compete with The Star, clubs and STAKEHOLDER INTERVIEW pubs. For these stakeholders, the bigger For those who support a GTH, there is and grander any GTH is, the more likely broad agreement about developing it it is to genuinely attract international in Southport due to its central location, tourists, rather than local patrons of The proximity to the existing light rail Star, clubs and pubs. infrastructure, Broadwater Parklands and the proposed ferry services. “If they’re going to do this, then the bigger the investment the “It’s on the tram, buses go there, better. That’s the only way to it’s quite central to everywhere.” make sure it genuinely grows FOCUS GROUP PARTICIPANT the pie instead of just carve it up more than it already is.” “There’s plenty of room.” STAKEHOLDER INTERVIEW FOCUS GROUP PARTICIPANT Irrespective of this, unlike The Star and pubs, clubs primary purpose is to provide community benefit and for this reason their ongoing viability deserves to be a key consideration. 46 GOLD COAST GLOBAL TOURISM HUB
In addition, many believe locating a GTH in Southport will be a catalyst for future CAPACITY OF THE EXISTING commercial development in the area, as TRANSPORT INFRASTRUCTURE intended by government. Consultations raised that the “Absolutely [a GTH] would linear nature of the Gold Coast’s assist in the development of a urban footprint brings transport Southport CBD only because it and accessibility challenges. Some would be the first commercial respondents question the capability of development.” the current infrastructure to service the STAKEHOLDER INTERVIEW additional demand a GTH would create. Traffic congestion is of specific focus, with 70 per cent of survey respondents “We need to attract business listing this as a concern. to the precinct [Southport]. We have a PDA there and “If you are only planning for there’s many proposals but a residential population, you none have been enacted. are failing the residents and A GTH would be helpful in failing the tourists – [we] need generating new business in infrastructure for at least one the area.” million people. Residents will STAKEHOLDER INTERVIEW have a worse quality of life and tourists will have a worse quality In contrast, some prefer Southport experience if this is not fixed maintains its focus on being the business before starting new projects.” centre of the region, with tourism STAKEHOLDER INTERVIEW infrastructure best suited to other areas like Surfers Paradise. “The introduction of a major “Southport should be a chic casino based tourism hub place where residents live – without significant additional lawyers, doctors, the core of expenditure on roadway our local business community, infrastructure will simply a service centre. Surfers create enormous additional should be all about tourism, traffic congestion on the Coast fun, entertainment, outdoor where residents who rely on dining, connection to the beach, vehicles for their daily work and dare I say it – a global will be unreasonably penalised tourism hub.” without any recompense.” STAKEHOLDER INTERVIEW WRITTEN SUBMISSION
“It’s [Southport] supposed to be the business hub of the Gold Coast.” FOCUS GROUP PARTICIPANT COMMUNITY AND STAKEHOLDER CONSULTATION 47
People also question the proximity a GTH should be to the existing public “For the last decade, there has transport network to mitigate potential been a lot of ‘messing around’ traffic issues that may arise. The majority on this issue which has created believe the light rail had eased congestion a lot of investment risk and throughout the region and that this has stunted the delivery of infrastructure should be leveraged rather necessary tourism infrastructure than create other costly solutions. Others on the Gold Coast.” suggest the priority should be on its STAKEHOLDER INTERVIEW accessibility from the Gold Coast Airport to ease access for tourists. “I would hate to see the Gold “[I] don’t see any other site Coast’s reputation go because than where the light rail is someone pulls out of a deal.” passing – international visitors STAKEHOLDER INTERVIEW would take the light rail through Surfers Paradise to the airport, There is also some frustration about the which gives whole Coast perceived lack of transparency about more visibility.” who the proponents are and the basis STAKEHOLDER INTERVIEW on which an operator will be selected. Although this is a requirement of the A small number of others think it was Government’s procurement process, this fanciful that tourists to a GTH would has caused high levels of scepticism in travel by light rail and that a location the community, resulting in opposition to near the Pacific Motorway (M1) would be the project. ideal to ensure ready access to Brisbane. State Government representatives have confirmed strong market interest in the Gold Coast GTH project. This strong PREVIOUS DEVELOPMENT interest is a demonstration of faith in the ATTEMPTS CAUSE INVESTMENT Gold Coast and the market’s view that a UNCERTAINTY GTH in the region can be successful. This level of interest should be promoted to Throughout consultation, concern was provide the community with confidence expressed in relation to the unsuccessful that there is genuine international history of these types of developments interest and capability to grow tourism. on the Gold Coast. With previously proposed developments at Wavebreak Island, the Spit and various cruise ship terminal propositions having all failed, some in the community fear the potential impact another unsuccessful process could have on the Gold Coast’s reputation and economy. 48 GOLD COAST GLOBAL TOURISM HUB
Mitigations
While not every concern raised about the development of a GTH during consultation can be satisfied, there are specific mitigations that can be put in place to respond to stakeholders’ issues and ensure a net benefit is achieved for the Gold Coast.
These include the following: “The GTH needs to offer something that is a drawcard to • A clear articulation of what a GTH is the city. This could include iconic and why it is needed; architecture, cultural experiences • Clarification on site/private site; – quirky shows, comedy festival, car racing, arts shows, etc. • Preserving green space; Whoever develops this needs to be offering something to the • Limiting the gambling market; public. For example, Dubai have huge aquariums that anyone can • Protecting community clubs; and walk past at any time.” • Easing traffic congestion with new or STAKEHOLDER INTERVIEW existing infrastructure. “The secret in this is to unlock things about the Gold Coast that even the Gold Coast doesn’t A CLEAR ARTICULATION OF know it has to offer.” WHAT A GTH IS AND WHY IT STAKEHOLDER INTERVIEW IS NEEDED “Lots of colourful and In the absence of a clear articulation of environmentally sustainable what it is and how it differs from what cultural buildings – make it already exists on the Gold Coast, some really inviting.” stakeholders offered views about what is needed. FOCUS GROUP PARTICIPANT “A multi-purpose facility capable of hosting high-end performances and a refined experience.” STAKEHOLDER INTERVIEW COMMUNITY AND STAKEHOLDER CONSULTATION 49
Other suggestions include: on a better articulation of how the proposition is different from what already • An architectural phenomenon; exists on the Gold Coast and a clearer • Something that leverages nature; description of the benefits it will deliver – such as economic growth, employment • Indigenous cultural offering; and tourism.
• Equine sports, mountain biking, In the absence of a thorough natural adventures or adrenaline understanding of the GTH proposal, Gold sports; and Coast locals have begun referring to the development as a ‘second casino’, with • An Australia-first offering such as a one in two survey respondents able to Legoland park. recall proposals for another Gold Coast Feedback also stressed that a GTH in casino, but only 12 per cent about a GTH. a Gold Coast context needs to be of When described as a casino in the survey, sufficient scale and interest to genuinely only 28 per cent of respondents support attract international visitors. Without it; however, support lifts to 56 per cent scale, there is a risk that the GTH will once the State Government’s description cannibalise the local market, adversely of the GTH is provided. A further affecting clubs, The Star and other 22 per cent hold a neutral position. tourism and hospitality operators. This demonstrates the importance of presenting a compelling description of a “It wants to be at least size and GTH and being prescriptive about what quality of The Star. If it’s bigger the Gold Coast needs and what locals and better, there’s some comfort. would accept. If it’s smaller and of lower quality, it will erode local market share.” STAKEHOLDER INTERVIEW CLARIFICATION ON SITE/ PRIVATE SITE
“Cities will increasingly bid Without a specific site for the for shows and events, and to development, most community attract global events you need stakeholders feel there is a lack of the ‘wow’ factor.” transparency and do not believe they STAKEHOLDER INTERVIEW can be fully informed in their view of the potential impacts, benefits or concerns. For many, their support for a There is a belief that in order for the GTH is dependent on site, so without an project to be successful and deliver announcement of a preferred site, there tourism growth, it must be truly unique is growing concern, specifically about the to the Gold Coast, fill a current gap in use of public land. the market and be differentiated from what currently exists. This suggests Most stakeholders are supportive of or leveraging current Gold Coast tourism at least ambivalent to a GTH located advantages, such as the beaches and/or on private land. Concerns about the hinterland, but also providing something use of public land can be mitigated by unique in the international market. The identifying a private site. Government will need to focus efforts 50 GOLD COAST GLOBAL TOURISM HUB
If a private site is decided and public This can include parks, sporting fields land is not offered as part of the and playgrounds. arrangement, the challenge becomes maintaining sufficient leverage for the State Government in negotiating an “Green, open space that may outcome that is worthwhile for the Gold be lost should be considered in Coast. Alternatively, were the State the development to include the Government to do what was necessary same amount of green space, to be in a position to offer a private site, whether this is on a rooftop or this could have significant implications split across the site.” for taxpayers and adds complexity STAKEHOLDER INTERVIEW and potentially considerable time to the process. “At the very least a GTH The feedback from some that any GTH entrepreneur should provide must be of significant scale also has substantial green public open relevance to location. While there are space as part of the project inconsistent views about size required, so adding an asset to the city some suggest an investment of more instead of taking away public than $3 billion would be necessary to open space.” substantiate a world-class offering. If WRITTEN SUBMISSION accepted, this feedback significantly limits the potential sites that could be used for the development. LIMITING THE Without an announcement of the GAMBLING MARKET preferred site, it is challenging for Government to be specific around Understanding the existing saturation issues such as the scale of the project of the Gold Coast’s gambling market, (to address concerns about local the Queensland Government committed competition with clubs and The Star) and to no additional EGMs for the region what might be required from proponents as part of the GTH109 and limiting the in terms of offsets for potential loss gaming footprint to five per cent of of open space, car parking, traffic the total gross floor area.110 However, solutions, etc. this commitment does not provide comfort to stakeholders or community members who are concerned about the harm gambling can cause. Just 17 per PRESERVING GREEN SPACE cent of survey respondents said they would be more likely to support the Mitigations are unlikely to satisfy many development if the gaming footprint is of the stakeholders who passionately limited, and 23 per cent of respondents oppose the contribution of public land if the number of EGMs is limited. This on ideological grounds. However, many sentiment was echoed in focus groups stakeholders and community members and stakeholder interviews. oppose the use of public land due to the need to preserve open, green and “Increase the overall size of the communal space. development and the five per The survey found that 43 per cent of cent becomes bigger.” respondents are more likely to support FOCUS GROUP PARTICIPANT a GTH on public land if it returns the same or more public open space. COMMUNITY AND STAKEHOLDER CONSULTATION 51
“No increase overall is an Many suggestions for compensation were eloquent way to try to resolve made during consultation including: the problem but I am unsure where you will get 1,600 EGMs from on the Gold Coast, if Buy-back this includes the South East While the detail of the process for Queensland region then it would obtaining EGMs for a new casino be more diluted and achievable.” is unknown, this may involve the STAKEHOLDER INTERVIEW Government entering into a process that sources EGMs from the existing pool. Some stakeholders refer to the approach There is some acknowledgement that a taken by Tasmania’s Museum of Old and buy-back scheme could provide a return New Art and suggest a ‘table games only’ to clubs on underperforming EGMs. licence is offered as part of a GTH. This draws some support due to the likelihood of it attracting a different market than Taxation those who patronise clubs and pubs. However, this concept is likely to limit Taxation on club gaming machines the level of investment that proponents ranges from zero to 35 per cent, would be prepared to make in the GTH. depending on the monthly metered win revenue. In 2012, an additional tax “I worry that it won’t pay off. bracket in the midrange was introduced The returns are low and it which caused concern for some, would be viewed with immense particularly as the taxation rate has not scepticism.” been reviewed since. A different taxation rate system and rates apply for casinos, STAKEHOLDER INTERVIEW with clubs suggesting they do not operate on a level playing field.
PROTECTING “Consideration for gaming COMMUNITY CLUBS tax rates for those businesses that are affected. This can The clubs sector is strongly opposed be offset by the incoming to the development of a GTH which casino because the deal can includes EGMs. The Panel and the public be different to The Star. The in general agree that clubs provide pub and club industry is going extensive community benefit, and there is to take a substantial hit so a significant concern that a new gambling tax break has to be taken into entrant will increase local competition consideration.” and erode their viability. STAKEHOLDER INTERVIEW Clubs make the compelling point that if the motivation for a GTH is to stimulate the tourism industry and not necessarily to increase Government revenue, then the increased revenue received by Government can be devoted to compensating those adversely affected. 52 GOLD COAST GLOBAL TOURISM HUB
Another suggestion made in relation “With respect to diversification, to tax is that clubs receive a rebate on it is certainly not through lack contributions made to the community in of trying.” line with clubs’ objectives. WRITTEN SUBMISSION
“This system [tax rebate for community contribution] has Casino entry fee operated with great success To alleviate concerns of a GTH eroding in New South Wales and if clubs’ local market share some considered positively could stakeholders suggest an entry fee apply deliver significant additional to locals visiting the casino component support for the communities that of the GTH. While residents will not be clubs support.” charged to visit the wider development, WRITTEN SUBMISSION the disincentive to gamble at the GTH would assist clubs and the GTH to Direct compensation co-exist and maintain the international for lost revenue focus for the GTH. Precedent for this system exists in Singapore. Were the While the additional gambling Government to consider a casino entry competition is expected to be the fee, it would also need to decide whether greatest impact to clubs, there is also to apply the same requirement to concern over impacts to food and The Star. beverage revenue. One stakeholder suggests compensation for revenue lost within the first 18 months of a Other GTH opening, based on benchmarked Other relief measures for community clubs historical data. identified during consultation include:
• Increasing max bet to $10 and removal Noise restrictions of the return to player upper limit; Some clubs suggest that their viability • Increasing the ticket-in ticket-out is dependent on diversifying offerings, credit limit to up to $5,000; irrespective of a GTH development. A shared concern is that liquor licence laws • Approval to sell lottery products; and noise restrictions prevent clubs from hosting live music and karaoke. • Allowing eSports, skill-based games and digital offerings through legislative change; “Clubs viability problem can be solved in other ways – the • Approval to implement technology Premier has to honour her which allows for flexibility in methods commitment by using the of payment; ‘Better Regulation Task Force’ • Increasing trading hours to a and allow clubs to feed the maximum of 20 hours per day; appetite for social functions that have been limited by • Implementation of mandatory director current regulations.” training; and STAKEHOLDER INTERVIEW • Reviewing the Registered Club Act for Queensland. COMMUNITY AND STAKEHOLDER CONSULTATION 53
“They’re developing Southport EASING TRAFFIC CONGESTION and the parklands, and a lot of WITH NEW OR EXISTING people are going there. You just INFRASTRUCTURE need to extend the light rail.” FOCUS GROUP PARTICIPANT Traffic is a major concern for Gold Coast residents. There is a sentiment among Were the State Government to proceed some that while existing infrastructure with a GTH, many of these mitigations was generally adequate for today, a could be addressed as conscious policy GTH could add significantly to the traffic choices or as requirements within the burden. Many stakeholders believe a EOI process. commitment by the GTH proponent to support future transport infrastructure could aid the situation and open currently inaccessible locations.
“Duplication of the M1 is needed now as it is stifling, choking and holding up that much economic growth and development to South East Queensland.” WRITTEN SUBMISSION
In addition to the M1, stakeholders also prioritise a completed connection between Brisbane and Coolangatta by the light and/or heavy rail network.
“It would have a profound impact if the Brisbane Airport heavy rail could be connected to Coolangatta so that both airports could service the international market with ease of accessibility.” STAKEHOLDER INTERVIEW
“By 2060–2080 there will be an urban mass between Byron Bay and Toowoomba. We need to work together between cities (Brisbane and the Gold Coast) to leverage each other.” STAKEHOLDER INTERVIEW 54 GOLD COAST GLOBAL TOURISM HUB COMMUNITY AND STAKEHOLDER CONSULTATION 55
Summary
Despite increases in domestic visitation, there is a need to grow international tourism on the Gold Coast, given their higher levels of expenditure. By better communicating why a GTH is needed and the benefits a GTH can deliver, the level of support for a GTH can be increased.
In order to build a social licence for the 2. Ensure that the legitimate concerns GTH proposition, the Panel suggests the of Gold Coast community clubs are Queensland Government: addressed through a package of measures designed to underpin Gold 1. Address the mitigations suggested Coast clubs’ ongoing viability. In in this report, including making particular: them conditions in the procurement process. In particular, proponents • No tax on gaming revenue for the should be required to demonstrate 18 months immediately following that their proposal: the GTH’s opening;
• Is aimed at attracting primarily • Tax rebate on contributions made international tourists by ensuring: to the community; and
a. The investment is of sufficient • Relaxation of noise restrictions scale; currently imposed on the industry.
b. It takes advantage of the Gold 3. Identify a public site to allow the Coast’s existing advantages (its State Government to be prescriptive beaches and the hinterland); to proponents about what the development must include, or establish c. Incorporates larger convention a process to identify a fit for purpose space and/or entertainment private site, noting this is likely to add facilities to capture currently cost and time to the process. missed opportunities; and 4. Seek to involve the City of Gold Coast d. It is unique in the world, in terms for appropriate technical input. of the experience it provides; 5. Change the terminology from Gold • Results in no overall loss of public Coast Global Tourism Hub to Gold open space; Coast Integrated Resort Development • Incorporates effective traffic (IRD) as the term GTH is confusing and mobility solutions; does not resonate with stakeholders or the community. • Contributes positively to the urban renewal and public realm of the 6. Communicate with the Gold Coast Gold Coast; and community the case for a IRD identified in this report, particularly • Does not result in an overall given the Gold Coast’s international increase in the number of EGMs in tourism performance. This would the region. require a comprehensive education program, identifying the location and expected benefits. 56 GOLD COAST GLOBAL TOURISM HUB
Appendices
APPENDIX 1: OVERVIEW OF • Jobs for our Youth; CONSULTATION ACTIVITIES • Main Beach Association; Using methodologies from the IAP2 Quality Assurance Standard Process • Main Beach Post Office; for Community and Stakeholder • Queensland Hotels Association; Engagement,111 consultation activities undertaken included one-on-one • Queensland Tourism Industry Council; consultations, focus groups, an online survey and written submissions. • RSL Association; • Save Carey Park Group; One-on-one consultations • Save our Broadwater; Interviews were conducted with 38 • Sea-Trek International, Colliers stakeholders/groups from local and state International; government, businesses, community groups and representatives from tourism, • Southport Sharks; education and industry bodies including members of clubs, hotels, pubs and the • Southport Yacht Club; existing casino. This included: • State MPs; • Bond University; • Surf Life Saving Queensland; • Broadbeach Alliance; • The Star Entertainment Group; and • City of Gold Coast; • Women in Tourism. • Clubs Queensland;
• Destination Gold Coast;
• Future Jobs for Our Kids;
• GECKO;
• Hard Rock Café; COMMUNITY AND STAKEHOLDER CONSULTATION 57
Focus groups Online survey
Four focus groups of Gold Coast An online survey of 546 Gold Coast residents were conducted with residents was undertaken. Respondents approximately eight residents randomly were randomly selected with the sample selected for each group. These focus reflecting the age, gender and character groups were held as follows: of the Gold Coast’s population as closely as possible. GROUP 1 Saturday 11 May DATE Written submissions 10am – 11:30am RESIDENCE The Panel received 211 written Gold Coast North AND AGE submissions via email and post, following Under 30’s GROUP a call for submissions advertised in the QT Gold Coast Gold Coast Bulletin and an email to Gold VENUE 7 Staghorn Avenue, Coast business leaders requesting their Surfers Paradise, QLD, 4217 position on a GTH. Submissions were received from the following businesses, GROUP 2 with the reminder of submissions received from local residents: Saturday 11 May DATE 12pm – 1:30pm • Better Broadbeach; RESIDENCE Gold Coast North AND AGE • Brewmaster; GROUP Over 30’s • Clubs Queensland; QT Gold Coast VENUE 7 Staghorn Avenue, • Hickey Lawyers; Surfers Paradise, QLD, 4217 • Homecorp;
GROUP 3 • Hoppy’s Handwash Café; Saturday 11 May DATE • Hot Tomato Radio; 2pm – 3:30pm • Morris International; RESIDENCE Gold Coast South AND AGE • NewsCorp; GROUP Under 30’s QT Gold Coast • Opmantek; VENUE 7 Staghorn Avenue, • Pacific Fair; Surfers Paradise, QLD, 4217 • Queensland Airports; GROUP 4 • Ray White; Monday 13 May DATE • Red Energy Promotions; 10am – 11:30am • RSL Club Southport; RESIDENCE Gold Coast South AND AGE GROUP Over 30’s • Southport Sharks; QT Gold Coast • SuperSprout; VENUE 7 Staghorn Avenue, Surfers Paradise, QLD, 4217 • The Star Entertainment Group; • Village Roadshow Studios; and • Wildlife Queensland. 58 GOLD COAST GLOBAL TOURISM HUB
The above advertisement was placed • Entertainment, recreational and in the Gold Coast Bulletin on the cultural facilities; following dates and pages calling for written submissions: • Five or six star hotels;
• Friday 10 May 2019 – Page 16; and • Arcades, pools, salons, gyms and other recreational facilities; • Friday 24 May 2019 – Page 2. • Meeting and conference spaces;
• Tourist attractions including maritime museums and aquariums; APPENDIX 2: DESCRIPTION OF A GTH • Theatre and convention facilities;
The below description of a GTH was • Cinemas; read to interviewees and focus group participants: • Boutique retail;
The Government describes a global • Bars; and tourism hub as an integrated resort • Celebrity chef restaurants. featuring iconic structures, world-class entertainment and dining experiences The below description was provided to and better public spaces for local online survey respondents: residents. Global tourism hubs are part of the Queensland Government’s plan to There has been some discussion of a boost tourism, strengthen the economy new development on the Gold Coast – and create more jobs. an integrated resort development. An integrated resort is an entertainment A global tourism hub is a high quality, focused mega resort covering several mixed use destination aimed at providing hectares that includes five or six tourism, leisure and entertainment star hotels, convention facilities, facilities that appeal to as broad a entertainment arenas, theme parks, demographic as possible, including the luxury retail, signature food and beverage international market. Such developments outlets, public attractions, extensive high deliver broad direct and indirect benefits quality public open space and public to the economy and community. recreation facilities. They often include a casino. A global tourism hub could include: Integrated resorts are now among • Iconic architecture with expansive high the largest buildings in the world amenity public realm; with innovative and creative architectural styles. COMMUNITY AND STAKEHOLDER CONSULTATION 59 60 GOLD COAST GLOBAL TOURISM HUB
Endnotes
1 https://www.ditid.qld.gov.au/__data/ 12 Tourism Research Australia, National assets/pdf_file/0005/1445558/ Visitor Survey and International Visitor terms-of-reference-gold-coast-tour- Survey, December 2018 via Destination ism-advisory-panel.pdf Gold Coast 2 https://www.destinationgoldcoast.com/ 13 https://www.tra.gov.au/ArticleDocu- Portals/0/Documents/Corporate/Abou- ments/185/Gold_Coast_Visitor_Profile_ tUs/AnnualReports/GCT_Annual_Re- and_Satisfaction_Report_Nov2013_FI- port_FYE17-.pdf?ver=2017-11-14-090031- NAL2.pdf.aspx 790×tamp=1510614046014 14 http://www.tourism.australia. 3 Tourism Research Australia, National com/content/dam/assets/docu- and International Visitor Surveys, March ment/1/7/1/k/b/2008235.pdf 2015 – March 2019 15 https://www.tra.gov.au/International/ 4 Tourism Research Australia, National International-Tourism-Forecasts/interna- and International Visitor Surveys, March tional-tourism-forecasts 2015 – March 2019 16 https://cdn2-teq.queensland.com/~/me- 5 Tourism Research Australia, National dia/58b9fb7ab4ae48d989a9976bdf5b- and International Visitor Surveys, March de7a.ashx?vs=1&d=20190618T142755 2015 – March 2019 17 https://cdn2-teq.queensland. 6 https://teq.queensland.com/re- com/~/media/753e75b54a6e- search-and-insights/domestic-research/ 4929a4107ac345bed14f.ashx- queensland-research ?vs=1&d=20190503T103342 7 https://teq.queensland.com/re- 18 https://www.mckinsey.com/industries/ search-and-insights/international-re- retail/our-insights/here-comes-the- search/international-summary modern-chinese-consumer 8 https://www.tra.gov.au/ArticleDocu- 19 Hurun Report (2017), The Chinese Luxu- ments/185/IVS%20Data%20March%20 ry Traveller available at http://res.hurun. 2019.xlsx.aspx net/Upload/file/20170606/2017060609 36231765723.pdf 9 https://www.tra.gov.au/data-and-re- search 20 McKinsey&Company (September 2018), Chinese tourists: Dispelling the myths, 10 https://cdn2-teq.queensland.com/~/me- An in-depth look at China’s outbound dia/58b9fb7ab4ae48d989a9976bdf5b- tourist market, page 26 de7a.ashx?vs=1&d=20190618T142755 21 Tourism Research Australia (March 11 https://cdn2-teq.queensland. 2019), Chinese Free and Independent com/~/media/3515de79ba7743e- Travellers – their potential for Regional 9b37854f6a7458fa6.ashx- Australia, page 19 ?vs=1&d=20190716T164718 COMMUNITY AND STAKEHOLDER CONSULTATION 61
22 http://www.goldcoast.qld.gov.au/docu- 34 https://statistics.qgso.qld.gov.au/ ments/bf/destination-tourism-manage- profiles/qrp/resident/pdf/Y5LIZC8H- ment-plan.pdf 0PNG1G6OPNA2X360LA7SJT59P- S2QLZZ0P4SEZLV8049MA1UKFT- 23 Tourism Research Australia, National BI6EQQIP6MF6OER2HWP18MEH- and International Visitor Surveys, March FTVZT5MD8RDQQ7TY0FSKMS7Q- 2015 – March 2019 J0326UAQC1EJV43FDTXFLL/ 24 https://www.goldcoastbulletin.com.au/ qld-regional-profiles-resident#view=fit&pagem- entertainment/cramped-convention- ode=bookmarks centre-stalls-supanova-comic-con-gam- 35 http://www.goldcoast.qld.gov.au/docu- ings-gold-coast-growth/news-story/ ments/bf/destination-tourism-manage- f3d525633e78f9b6f211c1d146668fde ment-plan.pdf 25 http://statements.qld.gov.au/State- 36 https://www.destinationgoldcoast.com/ ment/2013/12/19/race-for-regional-inte- Portals/0/Documents/Corporate/Abou- grated-resorts-starts-today tUs/AnnualReports/GCT_Annual_Re- 26 https://www.ditid.qld.gov.au/tourism/ port_FYE17-.pdf?ver=2017-11-14-090031- special-projects/global-tourism-hubs/ 790×tamp=1510614046014 about 37 http://statements.qld.gov.au/State- 27 https://www.parliament.qld.gov.au/doc- ment/2013/12/19/race-for-regional-inte- uments/hansard/2018/2018_08_01_Esti- grated-resorts-starts-today matesITC.pdf 38 http://statements.qld.gov.au/State- 28 Australian Bureau of Statistics popula- ment/2013/12/19/race-for-regional-inte- tion data; Office of Liquor and Gaming grated-resorts-starts-today Regulation, Gaming sites by Local Gov- 39 http://statements.qld.gov.au/State- ernment Area (GOLD COAST), https:// ment/2013/12/19/race-for-regional-inte- secure.olgr.qld.gov.au/dcm/Media/Gam- grated-resorts-starts-today ingSites/sites-lga/19E84EC5FF275F- 677C6F38A3BFD0A8B1/pdf/gaming_ 40 http://statements.qld.gov.au/State- sites_by_lga_06062019.pdf; The Star ment/2014/1/17/tourism-develop- Entertainment Group ers-in-running-for-integrated-resort-li- cences 29 Office of Liquor Gaming and Fair Trad- ing, Operational EGM comparison of 41 http://statements.qld.gov.au/ Gold Coast to Sydney and Melbourne Statement/2014/2/13/govern- ment-sets-high-bar-for-integrated-re- 30 https://www.ditid.qld.gov.au/__data/ sorts assets/pdf_file/0005/1445558/ terms-of-reference-gold-coast-tour- 42 http://statements.qld.gov.au/State- ism-advisory-panel.pdf ment/2014/5/27/aquis-and-asf-shortlist- ed-to-develop-integrated-resorts 31 https://www.ditid.qld.gov.au/__data/ assets/pdf_file/0005/1445558/ 43 https://www.destinationgoldcoast.com/ terms-of-reference-gold-coast-tour- corporate/about-us/dtmp ism-advisory-panel.pdf 44 https://www.ditid.qld.gov.au/tourism/ 32 http://statements.qld.gov.au/State- special-projects/global-tourism-hubs/ ment/2013/10/14/integrated-develop- about ment-for-government-precinct 45 https://www.ditid.qld.gov.au/tourism/ 33 http://statements.qld.gov.au/State- special-projects/global-tourism-hubs/ ment/2013/12/19/race-for-regional-inte- about grated-resorts-starts-today 46 https://www.ditid.qld.gov.au/tourism/ special-projects/global-tourism-hubs/ about 47 https://www.ditid.qld.gov.au/tourism/ special-projects/global-tourism-hubs/ about 62 GOLD COAST GLOBAL TOURISM HUB
48 https://www.ditid.qld.gov.au/tourism/ 62 https://www.destinationgoldcoast. special-projects/global-tourism-hubs/ com/Portals/0/Documents/Corporate/ about Media/Releases/2019/MR%20-%20 170719%20-%20%20DOMESTIC%20 49 https://www.ditid.qld.gov.au/tourism/ VISITORS%20RETURN%20IN%20 special-projects/global-tourism-hubs/ RECORD%20NUMBERS%20TO%20 about GOLD%20COAST.pdf 50 https://statistics.qgso.qld.gov.au/ 63 https://teq.queensland.com/re- profiles/qrp/resident/pdf/Y5LIZC8H- search-and-insights/domestic-research/ 0PNG1G6OPNA2X360LA7SJT59P- queensland-research S2QLZZ0P4SEZLV8049MA1UKFT- BI6EQQIP6MF6OER2HWP18MEH- 64 https://teq.queensland.com/re- FTVZT5MD8RDQQ7TY0FSKMS7Q- search-and-insights/international-re- J0326UAQC1EJV43FDTXFLL/ search/international-summary qld-regional-profiles-resident#view=fit&pagem- 65 https://www.tra.gov.au/ArticleDocu- ode=bookmarks ments/185/IVS%20Data%20March%20 51 http://www.tourism.australia. 2019.xlsx.aspx com/content/dam/assets/docu- 66 https://www.tra.gov.au/data-and-re- ment/1/6/w/u/3/2002107.pdf search 52 https://publications.qld.gov.au/da- 67 https://cdn2-teq.queensland.com/~/me- taset/ace405b1-1495-4d9e-8c5e- dia/58b9fb7ab4ae48d989a9976bdf5b- fec5767345c6/resource/df997cf7- de7a.ashx?vs=1&d=20190618T142755 14fc-47b1-ac99-ddc7f0975967/ download/6127atsupdateweb.pdf 68 https://cdn2-teq.queensland. com/~/media/3515de79ba7743e- 53 https://dsdmipprd.blob.core.windows. 9b37854f6a7458fa6.ashx- net/general/shapingseq.pdf ?vs=1&d=20190716T164718 54 http://www.goldcoast.qld.gov.au/corpo- 69 https://cdn2-teq.queensland.com/~/me- rate-plan-documents-21359.html dia/58b9fb7ab4ae48d989a9976bdf5b- 55 http://www.goldcoast.qld.gov.au/docu- de7a.ashx?vs=1&d=20190618T142755 ments/bf/econmic-dev-strategy.pdf 70 https://cdn2-teq.queensland. 56 http://www.goldcoast.qld.gov.au/docu- com/~/media/3515de79ba7743e- ments/bf/destination-tourism-manage- 9b37854f6a7458fa6.ashx- ment-plan.pdf ?vs=1&d=20190716T164718 57 https://www.destinationgoldcoast.com/ 71 https://www.destinationgoldcoast.com/ corporate/about-us/gold-coast-five- Portals/0/Documents/Corporate/Abou- year-plan tUs/AnnualReports/GCT_Annual_Re- port_FYE17-.pdf?ver=2017-11-14-090031- 58 http://www.goldcoast.qld.gov.au/docu- 790×tamp=1510614046014 ments/bf/destination-tourism-manage- ment-plan.pdf 72 Destination Gold Coast, Gold Coast Aus- tralian Travel Survey, December 2018, as 59 https://cdn2-teq.queensland. provided by Destination Gold Coast com/~/media/3515de79ba7743e- 9b37854f6a7458fa6.ashx- 73 Tourism Research Australia, National ?vs=1&d=20190716T164718 and International Visitor Surveys, years ending 2014 – 2018 60 https://cdn2-teq.queensland.com/~/me- dia/58b9fb7ab4ae48d989a9976bdf5b- 74 Tourism Research Australia, National de7a.ashx?vs=1&d=20190618T142755 and International Visitor Surveys, March 2015 – March 2019 61 https://www.destinationgoldcoast.com/ corporate/about-us/dtmp 75 Tourism Research Australia, National and International Visitor Surveys, March 2015 – March 2019 COMMUNITY AND STAKEHOLDER CONSULTATION 63
76 https://cdn2-teq.queensland. 91 http://www.tourisminvestment.com.au/ com/~/media/753e75b54a6e- content/dam/assets/photograph/digital- 4929a4107ac345bed14f.ashx- /1/7/5/v/u/2013834.pdf ?vs=1&d=20190503T103342 92 https://www.goldcoastbulletin.com.au/ 77 http://www.tourism.australia. lifestyle/the-star-gold-coast-master- com/content/dam/assets/docu- plan-rivalling-brisbanes-queens-wharf/ ment/1/7/1/k/b/2008235.pdf news-story/be3ebe6693862de9bbd- d21cca86c8706 78 https://www.tra.gov.au/International/ International-Tourism-Forecasts/interna- 93 https://www.destinationgoldcoast. tional-tourism-forecasts com/Portals/0/Assets/Research/ DGC_2018_SNAPSHOT.PD- 79 https://www.mckinsey.com/industries/ F?ver=2019-05-29-134802-580 retail/our-insights/here-comes-the- modern-chinese-consumer 94 Tourism Research Australia, National and International Visitor Surveys, years 80 Hurun Report (2017), The Chinese Luxu- ending 2014 – 2018 ry Traveller available at http://res.hurun. net/Upload/file/20170606/2017060609 95 Tourism Research Australia, National 36231765723.pdf and International Visitor Surveys, March 2015 – March 2019 81 McKinsey&Company (September 2018), Chinese tourists: Dispelling the myths, 96 https://buildingqueensland.qld.gov.au/ An in-depth look at China’s outbound projects/gold-coast-convention-and-ex- tourist market, page 26 hibition-centre/ 82 Tourism Research Australia (March 97 https://www.goldcoastbulletin.com.au/ 2019), Chinese Free and Independent entertainment/cramped-convention- Travellers – their potential for Regional centre-stalls-supanova-comic-con-gam- Australia, page 19 ings-gold-coast-growth/news-story/ f3d525633e78f9b6f211c1d146668fde 83 Tourism Research Australia, National and International Visitor Surveys, March 98 https://www.destinationgoldcoast. 2015 – March 2019 com/Portals/0/Assets/Research/ Gold%20Coast%202018%20Summary. 84 Tourism Research Australia, National pdf?ver=2019-05-29-140026-750 and International Visitor Surveys, March 2015 – March 2019 99 Tourism Research Australia, National Visitor Survey and International Visitor 85 Cushman and Wakefield (December Survey, December 2018 via Destination 2018), Australia and New Zealand Hotel Gold Coast Market Overview 100 Tourism Research Australia, National 86 Cushman and Wakefield (December and International Visitor Surveys, March 2018), Australia and New Zealand Hotel 2015 – March 2019 Market Overview 101 Tourism Research Australia, National 87 The Australian Financial Review, 21 June and International Visitor Surveys, March 2019, ‘Hotel revenue dip first in nine 2015 – March 2019 years’, Page 34 102 The Australian Financial Review, 21 June 88 http://www.tourisminvestment.com.au/ 2019, ‘Hotel revenue dip first in nine content/dam/assets/photograph/digital- years’, Page 34 /1/7/5/v/u/2013834.pdf 103 The Australian Financial Review, 21 June 89 http://www.tourisminvestment.com.au/ 2019, ‘Hotel revenue dip first in nine content/dam/assets/photograph/digital- years’, Page 34 /1/7/5/v/u/2013834.pdf 104 http://www.tourisminvestment.com.au/ 90 http://www.tourisminvestment.com.au/ content/dam/assets/photograph/digital- content/dam/assets/photograph/digital- /1/7/5/v/u/2013834.pdf /1/7/5/v/u/2013834.pdf 64 GOLD COAST GLOBAL TOURISM HUB
105 https://www.iap2.org.au/Tenant/ 109 https://www.parliament.qld.gov.au/doc- C0000004/00000001/files/IAP2_Qual- uments/hansard/2018/2018_08_01_Esti- ity_Assurance_Standard_2015.pdf matesITC.pdf 106 https://www.tra.gov.au/ArticleDocu- 110 https://www.ditid.qld.gov.au/tourism/ ments/185/Gold_Coast_Visitor_Profile_ special-projects/global-tourism-hubs/ and_Satisfaction_Report_Nov2013_FI- gold-coast-global-tourism-hub/fre- NAL2.pdf.aspx quently-asked-questions 107 Australian Bureau of Statistics popula- 111 https://www.iap2.org.au/Tenant/ tion data; Office of Liquor and Gaming C0000004/00000001/files/IAP2_Qual- Regulation, Gaming sites by Local Gov- ity_Assurance_Standard_2015.pdf ernment Area (GOLD COAST), https:// secure.olgr.qld.gov.au/dcm/Media/Gam- ingSites/sites-lga/19E84EC5FF275F- 677C6F38A3BFD0A8B1/pdf/gaming_ sites_by_lga_06062019.pdf; The Star Entertainment Group 108 Office of Liquor Gaming and Fair Trad- ing, Operational EGM comparison of Gold Coast to Sydney and Melbourne COMMUNITY AND STAKEHOLDER CONSULTATION 65