Destination NSW Annual Report 2011/2012 DNSW_Endpaper_v2.indd 1 5/10/12 5:25 PM Destination NSW Annual Report 2011/2012 DNSW_Endpaper_v2.indd 1 5/10/12 5:25 PM 2 Destination NSW Annual Report 2011/2012 The Hon. George Souris MP Minister for Tourism, Major Events, Hospitality and Racing, and Minister for the Arts 31 October 2012 Dear Minister, In accordance with the provisions of the Annual Reports (Statutory Bodies) Act 1984 and the Public Finance and Audit Act of 1983, we submit this report for presentation to the NSW Parliament. It details the activities and performance outcomes for Destination NSW for the financial year ended 30 June 2012. Destination NSW was established on 1 July 2011 when four organisations – Tourism NSW, Events NSW, the Homebush Motor Racing Authority and the Greater Sydney Partnership – merged their operations. This is the first annual report presented by the new agency. Yours sincerely, John Conde AO Chairman Destination NSW Annual Report 2011/2012 Contents 4 Chairman’s Foreword 5 Organisation 6 About Destination NSW 8 Board Members 10 Organisation Chart 2011/2012 11 CEO’s Report: The Year in Review 14 Financial Overview 2011/2012 15 Destination NSW Performance 2011/2012 22 NSW Tourism Performance 2011/2012 23 Tourism Snapshot: NSW Year Ending June 2012 25 Review 26 Events 29 Homebush Motor Racing Authority 30 Tourism 38 Corporate Services 39 Appendices 40 Destination NSW Senior Executive 41 Human Resources 45 Corporate Governance 50 Operations 55 Grants 61 Financial Management 63 Financial Statements 64 Destination NSW Financial Statements 97 Destination NSW Division Financial Statements 117 Events New South Wales Pty Ltd Financial Statements 146 Index 148 Access 4 Chairman’s Foreword In July 2011 the NSW Government through an Act of Despite the disruption caused by the merger of four Parliament established a new statutory authority, entities — each with different legal, financial, Destination NSW, to lead the State’s tourism and events administrative and executive structures — we were sector and maximise the benefits of the visitor able to meet our event acquisition and development economy for New South Wales. targets, launch innovative new campaigns for Sydney and Regional NSW and step up our international The agency has unprecedented scope to deploy the business and market engagement. necessary strategic, development, commercial and marketing initiatives to ensure that Sydney and New Destination NSW’s Deputy Chairman Russell Balding AO South Wales are among the world’s most successful chaired the NSW Visitor Economy Taskforce and our tourism and events destinations. CEO Sandra Chipchase was also a member. These involvements in such a strategically important planning It was a privilege to be appointed Chairman of study informed our own organisational planning and Destination NSW’s first Board of Directors. All those restructuring. Consequently, Destination NSW has been represented on the Board bring exceptional skills and structured and is being resourced specifically to lead experience to contribute to our achieving the goals set and support the industry in delivering the by the NSW Government. Over the past twelve months 2020 strategy. they have offered astute insight into the challenges now facing New South Wales and have been extremely I thank the Minister for Tourism and Major Events, active in their efforts to assist Destination NSW. Hospitality and Racing, and Minister for the Arts, George Souris, and the NSW Government for their In this our first year of operation we have focused on support of the organisation over the past year. three key areas: addressing the corporate challenges of forging four organisations into one; ensuring that our I acknowledge our CEO, Sandra Chipchase, for her productivity remains high as we continue to launch and extraordinary efforts and achievements since taking implement programs and new initiatives that will act as on the role in August 2011 and extend my thanks to catalysts for growth; and engaging with the industry the staff and executive of Destination NSW for their through the NSW Visitor Economy Taskforce to develop significant contributions during this often a bold, sector-wide strategy that can achieve the challenging year. Government’s target of doubling overnight visitor In conclusion I acknowledge the former Chairman of expenditure by 2020. John Conde AO the Tourism NSW Advisory Board Les Cassar AM, MOM, Chairman Over the past year we have put in place the foundations KSJ and thank the outgoing members of the Events Destination NSW necessary to achieve high standards of corporate NSW and Tourism NSW Boards for their contributions. governance, fiscal responsibility and operational effectiveness. John Conde AO Organisation 6 About Destination NSW 8 Board Members 10 Organisation Chart 2011/2012 11 CEO’s Report: The Year in Review 14 Financial Overview 2011/2012 15 Destination NSW Performance 2011/2012 22 NSW Tourism Performance 2011/2012 23 Tourism Snapshot: NSW Year Ending June 2012 6 Organisation Destination NSW Annual Report 2011/2012 About Destination NSW Destination NSW is the lead government agency for the Role New South Wales tourism and major events sector. It Destination NSW is responsible for devising and was established under the Destination NSW Act 2011 with implementing strategies to grow the state’s visitor a charter to achieve economic and social benefits for the economy, with a particular focus on driving tourism and people of New South Wales through the development of acquiring and developing major sporting and cultural tourism and the securing of major events. events for Sydney and Regional NSW. The new agency merged the functions of four In addition, through its role as principal investor in government-funded entities – Tourism New South Business Events Sydney (BE Sydney), Destination NSW Wales, Events New South Wales, the Homebush Motor aims to secure more international conventions, Racing Authority and the Greater Sydney Partnership. incentive travel reward programs, corporate events Tourism New South Wales (Tourism NSW) was a and exhibitions for Sydney and Regional NSW. statutory authority, which operated under the Tourism New South Wales Act of 1984. Its principal objectives Vision were to promote travel to and within New South Wales and co-ordinate the development of ventures relating For Sydney and New South Wales to be among the to tourism. world’s most successful tourism and events destinations. Events New South Wales Pty Ltd (Events NSW) was a government-funded company established in late 2007 to secure and develop events for Sydney and Regional Mission NSW which would maximise economic, strategic and To double overnight visitor expenditure by 2020 and to community benefits for the state. maximise the benefits of the visitor economy for New South Wales. The Homebush Motor Racing Authority (HMRA) was established under the Homebush Motor Racing (Sydney 400) Act 2008 with responsibility for the preparation, Strategic objectives management and conduct of the works associated 1. Position Sydney and New South Wales as world- with the annual V8 Supercar motor race at Sydney leading tourism and events destinations. Olympic Park. 2. Attract and secure high-value major events. The Greater Sydney Partnership (GSP) was established 3. Build a sustainable events calendar for New South in April 2010 as a not-for-profit entity with founding Wales. partners comprising the Committee for Sydney, the 4. Increase industry stakeholder and customer Sydney Business Chamber and the Tourism & engagement. Transport Forum. It received $4 million in seed funding from the NSW Government and sought to create a 5. Deliver value in partnership/co-operative programs. marketing alliance of Sydney-based organisations from 6. Create and sustain a high-performance organisation. a wide range of industry sectors to promote the city. In conjunction with other organisations, such as Constituted as a statutory authority, Destination NSW Business Events Sydney, Regional Tourism is governed by a Board of Management and is subject Organisations (RTOs), Councils and industry, to the control and direction of the Minister for Tourism Destination NSW will implement the approved and Major Events, Hospitality and Racing, and Minister strategies of the Visitor Economy Taskforce. for the Arts. It is principally funded by the NSW Government. Destination NSW is part of a cluster of agencies under the responsibility of the Director General of the Department of Trade and Investment, Regional Infrastructure and Services (NSW Trade & Investment). Destination NSW Annual Report 2011/2012 About Destination NSW 7 Visitor Economy Taskforce Customers and stakeholders The NSW Government established the Visitor Economy Destination NSW’s main customer base comprises Taskforce (VET) to develop an integrated strategy that businesses and public and private sector organisations can deliver its target of doubling overnight visitor operating within the visitor economy as well as expenditure to New South Wales by 2020. The domestic and international visitors travelling to New Taskforce is one of six established to develop strategies South Wales. for positioning key sectors of the New South Wales Its principal stakeholder is the NSW Government, economy for growth. which represents the people of New South Wales. In 2011 the VET carried out one of the most extensive Other stakeholders include major strategic partners stakeholder engagement processes ever undertaken involved in destination management,