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Destination NSW Annual Report 2018-2019

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Destination NSW Annual Report 2018-2019 Destination NSW ANNUAL REPORT 2018-2019 Destination NSW ANNUAL REPORT 2018-2019 The Hon. Stuart Ayres MP Minister for Jobs, Investment, Tourism and Western Sydney 52 Martin Place SYDNEY NSW 2000 31 October 2019 Dear Minister, We are pleased to submit the Annual Report of Destination NSW for the financial year ended 30 June 2019 for presentation to the NSW Parliament. The report has been prepared in accordance with the provisions of the Annual Reports (Statutory Bodies) Act 1984, the Annual Reports (Statutory Bodies) Regulation 2015, the Government Sector Employment Act 2013, the Public Finance and Audit Act 1983, and the Public Finance and Audit Regulation 2015. Yours sincerely, John Warn Sandra Chipchase Chairman CEO Page 3 DESTINATION NSW // Annual Report 2018-2019 Contents 6 Chairman’s Foreword 8 ORGANISATION 9 About Destination NSW 11 Board Members 16 Organisation Chart 2018-2019 17 CEO’s Report: The Year in Review 21 Financial Overview 2018-2019 22 Destination NSW Performance 2018-2019 29 NSW Tourism Performance 2018-2019 35 Visitor Snapshot: NSW Year Ending June 2019 38 REVIEW 39 Event Development 45 Vivid Sydney 51 Marketing for Tourism and Events 57 Partnership Programs 61 Regional NSW 69 Sector Development 73 Trade and Industry Development 76 Communications 82 Corporate Services 84 APPENDICES 85 Destination NSW Senior Executive 86 Human Resources 87 Senior Executive Profile 88 Corporate Governance 94 NSW Cyber Security Policy 95 Internal Audit and Risk Management 97 Policies and Programs 99 Operations 102 Operations Management Activities 105 Grants 113 Financial Management 116 FINANCIAL STATEMENTS 117 Statement in accordance 118 Auditor’s Report 121 Financial Statements for the Year Ended 30 June 2019 125 Notes to the Financial Statements 146 INDEX & ACCESS 147 Index 149 Access DESTINATION NSW // Annual Report 2018-2019 Page 4 Byron Bay Page 5 DESTINATION NSW // Annual Report 2018-2019 Page 5 Chairman’s Foreword John Warn Chairman Destination NSW Destination NSW has maintained its focus on positioning NSW as Australia’s premier tourism and major events State. The record breaking results over the past year are a strong Tourism and events are indicator of how successful the programs and services delivered by Destination NSW are in achieving its corporate important economic goals of generating increased overnight visitor expenditure, drivers for NSW generating attracting and securing high value major events and maximising yield and dispersal from the visitor economy. $42.5 billion for the State’s NSW achieved growth in the key metrics of visitors, visitor economy and supporting nights and visitor expenditure in each quarter of 2018/2019 with visitor expenditure reaching more than $40 billion. 278,200 direct and indirect jobs. These outstanding results underscore the effectiveness of Destination NSW’s marketing programs in generating awareness of NSW as a tourism and events destination, and converting that awareness into visitation and event attendance in collaboration with industry partners,. on year growth in visitors and expenditure. From 2019-2020 onwards budget levels are reduced which could present The continued development of the NSW Events Calendar challenges in maintaining the momentum achieved. resulted in 120 events being secured or retained for Sydney, Western Sydney and regional NSW in 2018/2019. These events I would like to thank the Hon. Stuart Ayres MP, Minister for have not only helped to drive record overnight visitation and Jobs, Investment, Tourism and Western Sydney for his support expenditure but also showcase our State’s city and regional of Destination NSW and the NSW visitor economy. destinations to a global audience. I also express my thanks to Mike Pratt, Kim Curtain and the Events and marketing activities garner strong support from whole Treasury team. They have welcomed in Destination NSW, our industry partners whose work in developing travel and are so eager to support and help Destination NSW be the packages for visitors in Australia and worldwide is a vital best it can be. I also wish to extend thanks to my fellow Board input to our success. Our airline partnerships are central to members, whose contribution in shaping the direction for the this work, providing access to Sydney and regional NSW to NSW visitor economy is invaluable. drive inbound visitation. In 2018-2019 new partnerships were In closing, I would also like to formally thank our outgoing CEO, established with Cathay Pacific, China Eastern and United Sandra Chipchase, who at time of writing has just indicated Airlines extending our reach into these priority markets she will leave Destination NSW by year end. Sandra has been as well as our ground-breaking Qantas Memorandum of a strong, dedicated, focussed and results driven leader for Understanding, which continues to deliver strong results. Destination NSW and the NSW economy. She will leave proud Implementation of the Visitor Economy Industry Action Plan knowing, she ensured that our State maintained its number 2030 (VEIAP 2030) is progressing well with a number of key one position. We wish her well in her future endeavours, and actions already delivered. Working and partnering with our will look to appoint a new CEO in due course. Destination Networks, we have increased local decision I look forward to working with the Minister, the Board, a new making by introducing annual funding agreements and have CEO and Destination NSW in maintaining NSW’s position as provided additional short-term funding for the development Australia’s premier tourism and major events State in 2020 and implementation of their Destination Management Plans. and beyond. All of this work will contribute to the NSW Government’s goal of tripling overnight visitor expenditure by 2030 and the dedicated regional targets of $20 billion in overnight visitor expenditure by 2025 and $25 billion by 2030. There is still more to do, but our progress is pleasing. From 2015 to 2019 Destination NSW’s operations were bolstered by $127.6 million in election commitment funding, John Warn allowing the operational flexibility to bid for world-class events Chairman and deliver other tourism initiatives that have supported year Destination NSW DESTINATION NSW // Annual Report 2018-2019 Page 6 Hawkesbury Valley Page 7 DESTINATION NSW // Annual Report 2018-2019 Page 7 Organisation Contents 9 About Destination NSW 11 Board Members 16 Organisation Chart 2018-2019 17 CEO’s Report: The Year in Review 21 Financial Overview 2018-2019 22 Destination NSW Performance 2018-2019 29 NSW Tourism Performance 2018-2019 35 Visitor Snapshot: NSW Year Ending June 2019 DESTINATION NSW // Annual Report 2018-2019 Page 8 ORGANISATION About Destination NSW Established under the Destination NSW Act 2011 as the lead Strategic Objectives Government agency for the NSW tourism and major events sector, its charter is to achieve economic and social benefits for the people of NSW through the development of tourism and the securing of major events. Destination NSW was established through the merger of four Government-funded entities – Tourism NSW, Events NSW, the Homebush Motor Racing Authority and the Greater Sydney Partnership – into a single entity. 1. Position Sydney and As a Public Service Executive Agency, Destination NSW is NSW as world leading 2. Attract and secure governed by a Board of Management and is subject to the tourism and events high-value major control and direction of the Minister for Jobs, Investment, destinations. events. Tourism and Western Sydney. It is principally funded by the NSW Government and is part of a cluster of agencies under the responsibility of the Secretary of the NSW Treasury. Role Destination NSW is responsible for devising and implementing strategies to grow the State’s visitor economy. Its particular focus is on driving tourism and acquiring and developing major sporting and cultural events for Sydney and regional NSW. In 3. Build a sustainable 4. Increase industry addition, Destination NSW is the major investor in Business events calendar stakeholder and Events Sydney with the aim of securing more international for NSW. customer engagement. conventions, incentive travel reward programs, corporate events and exhibitions for Sydney and regional NSW. Vision To make Sydney and NSW one of the world’s most successful tourism and events destinations. Mission 5. Deliver value in 6. Develop and sustain To double overnight visitor expenditure by 2020 and maximise partnership / a high-performance the benefits of the visitor economy for NSW. co-operative programs. organisation. 7. Maximise yield and 8. Implement the Visitor dispersal from the Economy Industry Visitor Economy. Action Plan. Page 9 DESTINATION NSW // Annual Report 2018-2019 ORGANISATION Pebbly Beach, South Coast Importance of the Visitor Economy Working with Industry to New South Wales Destination NSW works with industry and Government The term ‘visitor economy’ includes businesses and stakeholders to realise its vision of making Sydney and communities that benefit from the direct and indirect NSW one of the world’s most successful tourism and events economic activity generated through the wide range of destinations. The value of the contribution made by tourism initiatives that support the provision of goods and services and major events to the economy and local communities is to overnight visitors including, but not limited to, leisure, undeniable and by working with industry stakeholders, we can business, events, food and wine, arts and cultural, nature
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