EXECUTIVE SUMMARY ........................................................................................ 1 1.1. Key Findings ............................................................................................................................................ 1 1.2. Summary ................................................................................................................................................. 4 INTRODUCTION ................................................................................................... 7 2.1. Overview .................................................................................................................................................. 7 2.2. Methodology ........................................................................................................................................... 7 COMPARATIVE ANALYSIS .................................................................................. 9 3.1. Context .................................................................................................................................................... 9 3.2. Plans for an Aviation Visitor Attraction .................................................................................................. 9 3.3. Comparative Aviation Museums ............................................................................................................ 9 OPERATING MODELS ........................................................................................ 19 4.1. Comparative Operating and Funding Models ...................................................................................... 19 4.2. Operating Model Options ...................................................................................................................... 20 MARKET DEMAND ............................................................................................. 23 5.1. Market Demand Summary .................................................................................................................... 23 5.2. Visitation to Hunter Tourism Region .................................................................................................... 24 5.3. Visitation to Upper Hunter Shire ........................................................................................................... 27 5.4. Visitation to Scone ................................................................................................................................ 30 5.5. Demand Forecasts for Scone Aviation Visitor Attraction .................................................................... 33 COST BENEFIT ASSESSMENT ........................................................................... 36 6.1. Capital Expenditure ............................................................................................................................... 36 6.2. Cost Benefit Findings ........................................................................................................................... 39 SUMMARY ......................................................................................................... 44 Figure 1: Visitation Summary .............................................................................................................. 2 Figure 2: Demand Forecasts for Scone Aviation Visitor Attraction, 2019-2028 ................................ 3 Figure 3: Visitation Summary ............................................................................................................ 23 Figure 4: Visitation to Hunter Tourism Region, YE Sept 2007-2016 ................................................. 24 Figure 5: Visitor Nights for the Hunter Tourism Region, YE Sept 2007-2016................................... 25 Figure 6: Average Length of Stay for the Hunter Tourism Region, YE Sept 2007-2016 ................... 25 Figure 7: Visitor Expenditure for the Hunter Tourism Region, YE Sept 2007-2016 .......................... 27 Figure 8: Spend Per Visitor Per Day for the Hunter Tourism Region, YE Sept 2007-2016 ............... 27 Figure 9: Visitation to Upper Hunter Shire by Visitor Type, 2012/13 - 2015/16 ............................... 28 Figure 10: Visitor Nights for Upper Hunter Shire, 2012/13 - 2014/15 .............................................. 28 Figure 11: Average Length of Stay for Upper Hunter Shire, 2012/13 - 2015/16 .............................. 29 Figure 12: Purpose of Visit for Upper Hunter Shire, 2015/16 ........................................................... 29 Figure 13: Referrals by Visitor Centre Staff for Upper Hunter Shire, 2015/16 ................................. 30 Figure 14: Visitation to Scone by Visitor Type, 2013/14 - 2015/16 .................................................. 31 Figure 15: Visitor Nights for Scone, 2013/14 - 2015/16 ................................................................... 31 Figure 16: Average Length of Stay for Scone, 2013/14 - 2015/16 ................................................... 32 Figure 17: Scone Purpose of Visit, 2015/16 ..................................................................................... 32 Figure 18: Referrals by Visitor Centre Staff for Scone, 2015/16 ...................................................... 33 Figure 19: Demand Forecasts for Scone Aviation Visitor Attraction, 2019-2028 ............................ 34 Figure 20: Concept Only Example Façade ........................................................................................ 37 Figure 21: Potential Scone Aviation Attraction (Concept Only Site Plan) ........................................ 38 Table 1: Cost Benefit Results Summary.............................................................................................. 4 Table 2: Comparative Aviation Museums ......................................................................................... 11 Table 3: Operating and Funding Models for Comparative Museums .............................................. 19 Table 4: Hunter Tourism Region Purpose of Visit, YE Sept 2012 and 2016 .................................... 26 Table 5: Upper Hunter Shire Visitor Expenditure, 2012/13 – 2015/16............................................. 30 Table 6: Scone Visitor Expenditure, 2013/14 – 2015/16................................................................. 33 Table 7: Capital Expenditure .............................................................................................................. 36 Table 8: Cost Benefit Results Summary............................................................................................ 39 Table 9: Cost Benefit Assessment .................................................................................................... 41 The Stafford Group (The Group) was commissioned by Upper Hunter Shire Council (Council) to undertake a Feasibility Study to assess the demand and viability for an aviation visitor attraction in Scone and any implications such a development may have on the Master Plan for the site. This involved identification of the economic, financial impact and related benefits, infrastructure impacts on the airport, its likely revenue and expenditure streams and overall market appeal. 1.1. Key Findings The following sections reflect the key findings from a social, cultural and community based benefits, along with the economic benefits associated from the attraction. 1.1.1. Comparative Aviation Museums To help determine best practice examples and to offer a base for assessing potential visitor demand, a comparative analysis was undertaken of other aviation museums throughout Australia and New Zealand and with some USA examples. The key findings from this exercise indicated the following. ▪ Visitation ranged from 10k per annum for the Hinkler Hall of Aviation, to 40k per annum for the Temora Air Museum, to 160k for the Hill Aerospace Museum. Reasons for high visitation include having larger local population bases, free entry, and running interactive flying displays on a regular basis. ▪ Several of the museums require regular funding contributions (over and above revenue generated) to remain financially viable. These included the Qantas Founders Outback Museum, Omaka (NZ) Aviation Heritage Centre, Fleet Air Museum and RAAF Museum Point Cook. ▪ There is evidence of two museums recently recording a net profit (Glenn L. Martin Maryland Aviation Museum (2014) and Aviation Heritage Museum (2014/15)).1 The ability to achieve this, however, is considered difficult. ▪ At best, most aviation museums achieve at or near a break-even position and operate as not for profit entities. 1.1.2. Potential Operating Models The various comparative aviation museums have different operating systems and governance models, with no model necessarily being preferred. Based on the current understanding of possibilities and any potential relationship between aviation collection owners and Council, there would appear to be the following primary2 options: ▪ the owner of the collection takes responsibility for operating the attraction facility and charges Council a rental if the airport terminal and other ancillary uses is housed within the overall facility as currently proposed; ▪ Council operate the facility under an agreed contractual arrangement with the collection owner; ▪ the facility is privately owned, constructed and operated; with Council selling the land for the site; ▪ the collection owner funds the development and leases it back to Council to operate; 1 Note: