For Discussion at Reports Meeting On

Enterprise and Infrastructure Committee – 31 March 2010

EVENTS FUNDING APPLICATION – RALLY OF SCOTLAND

Report by the Depute Director (Environment)

This report provides a report on the inaugural Rally of Scotland and recommends continued support for the event in 2010 and 2011.

RECOMMENDATIONS

The Committee is asked to:

i) Approve funding of £25,000 to International Motor Sports in 2010/11 and 2011/12, subject to budget, in order to secure the Rally of Scotland in Perth and Kinross for the next two years.

BACKGROUND

1. On 30 January 2008 the Enterprise & Infrastructure Committee approved an award of £25,000 in order to secure and support the inaugural Rally of Scotland taking place partly in Perth and Kinross.

2. The Rally of Scotland 2009 was the final round of the Intercontinental Rally Challenge, a new category of motor racing endorsed by the worldwide governing body of motorsport, the FIA (Federation Internationale de l’automobile). It was created in 2007 to sit alongside the World Rally Championship as a more cost effective international series. It has received excellent feedback and unprecedented interest due to changing regulations in the World Rally Championship. The series in 2009 comprised ten championship rounds held all over the world including Monte Carlo, Brazil, Argentina and Czech Republic.

RALLY OF SCOTLAND 2009

3. The first Rally of Scotland then took place in November 2009 and was jointly hosted by Perth and Kinross and Stirling. The Rally began with a ceremonial start and special stage in the grounds of Scone Palace with the cars being waved off by the First Minister and Sir Jackie Stewart. The rally then moved into the forests of Highland Perthshire and stages were completed at Errochty, Craigvinean, Drummond Hill and Blackcraig. A service park was located at Blair Castle. The rally culminated with a ceremonial finish at Stirling Castle after a day of stages in the forest of Stirlingshire. In addition to its event funding support, each host Council provided in kind support in the form of pr support and local operational assistance such as the suspension of car parking orders.

4. The Rally achieved significant national and international media coverage including live coverage on Eurosport and a post event highlights package

7 which was broadcast on BBC2 Scotland. A final report on the extent and value of the media coverage generated is awaited from the organisers.

5. An independent economic impact assessment on the event was commissioned by EventScotland and undertaken by EKOS. The headline findings of this report were:

• Approximately 9,000 people attended the rally • 54% stayed for at least one night with the average length of stay being 2 days. • Live coverage on Eurosport beamed globally and viewed by an estimated 7 million people. • 77% of visitors were from outwith Perth and Kinross/Stirling with 43% from outwith Scotland. • 92% of visitors said they were either very likely or likely to visit the event again. • 90% of visitors rated the event as very good/good. • 92% of visitors rated their overall quality of their visit to Perth and Kinross as very good/good. • The event generated a net economic impact of £820,000 at Perth and Kinross/Stirling level (with an approximate 50/50 split across each region) and £1,290,000 at the Scottish level. • This provided a return on investment ratio for Perth and Kinross Council of approximately £1:£10

6. In addition to the above EventScotland commissioned Repucom International to undertake an evaluation report on the media and sponsorship value of the event. The report placed this value at just over £2,000,000 underlining that Perth and Kinross, along with partners, achieved excellent exposure locally, nationally and internationally through the Council’s involvement in the event.

7. In 2010 the economic impact to Perth and Kinross will be significantly increased due to the central service park for the event being located in Perth. In addition the media launch of the event will also take place in Perth and Kinross which will bring national and international media to the area.

8. It is evident that the Rally of Scotland has made a strong start and has demonstrated a positive return for the area in terms of economic impact and extensive media coverage to an international audience. The development of the Rally of Scotland has a fit with the Council’s strategy for event development, particularly those events with international reach, and it has growth potential in terms of spectator and participant numbers at a time of year where there is capacity in the tourism industry. As a further benefit the extensive media coverage that the event brings allows us opportunity this year to gain exposure for our Perth 800 celebrations and messages to audiences which would ordinarily be out of our reach.

FUNDING PROPOSAL

9. EventScotland alongside Perth and Kinross and Stirling Councils will once again form the public funding partnership for the event in 2010 and 2011. The

8 level of funding required from each local authority will remain at the same level as in 2009, at £25,000 for 2010/11 and 2011/12 subject to budget. In addition, there would be a requirement for in kind support from the Councils as in 2009.

CONSULTATION

10. The Heads of Finance, Legal Services, and Democratic Services have been consulted in the preparation of this report.

RESOURCE IMPLICATIONS

11. The proposed funding for Rally of Scotland in 2010 and 2011will be contained within the 2010/11 and 2011/12 Economic Development budgets.

EQUALITIES ASSESSMENT (EqIA)

12. An equality impact assessment needs to be carried out for functions, policies, procedures or strategies in relation to race, gender and disability and other relevant protected characteristics. This supports the Council’s legal requirement to comply with the duty to assess and consult on relevant new and existing policies.

13. The function, policy, procedure or strategy presented in this report was considered under the Corporate Equalities Impact Assessment process (EqIA) with the following outcome:

i) Assessed as relevant and the following positive outcomes expected following implementation:-

• Continued monitoring of the Rally of Scotland spectators for age and gender profile

• Ensure that the Rally of Scotland organisers continue to liaise with interest groups in the event area

• Continued monitoring to ensure that all opportunities for disabled access at the event are maximised.

STRATEGIC ENVIRONMENTAL ASSESSMENT

14. Strategic Environmental Assessment (SEA) is a legal requirement under the Environmental Assessment (Scotland) Act 2005 that applies to all plans, programmes and strategies, including policies (PPS).

15. No further action is required as it does not qualify as a PPS as defined by the Act and is therefore exempt.

9 COUNCIL CORPORATE PLAN OBJECTIVES 2009-2012

16. The Council’s Corporate Plan 2009-2012 lays out five Objectives which provide clear strategic direction, inform decisions at a corporate and service level and shape resources allocation. This report impacts on the following:

1. A Prosperous, Sustainable and Inclusive Economy 2. Confident, Active and Inclusive Communities

CONCLUSION

17. This report details an application to stage the Rally of Scotland for a second and third year. The rally ran successfully in 2009 and promoted Perth and Kinross to a global television audience of over 7 million people in key overseas markets. The event also provided a significant boost to the economy during a period out with the main tourist season. In 2010 the Rally of Scotland is scheduled to grow substantially due to an expected increase in competitors, spectators and media coverage. Securing the Rally of Scotland for 2010 and 2011 is in line with the Perth & Kinross Events Strategy and the Council’s corporate strategic objective of sustainable economic development.

JIM VALENTINE DEPUTE DIRECTOR (ENVIRONMENT)

NOTE

No background papers as defined by Section 50D of the Local Government (Scotland) Act 1973 (other than any containing confidential or exempt information) were relied on to any material extent in preparing the above Report.

Contact Officer: Stuart Oliver, 77959 [email protected] Address of Service: 5 High Street, Perth, PH1 5PH Date of Report 8 February 2010

If you or someone you know would like a copy of this document in another language or format, (on occasion only, a summary of the document will be provided in translation), this can be arranged by contacting Alma Murray, Equalities Assistant on 01738 476558 or [email protected]

Council Text Phone Number 01738 442573