Destination Queenstown - The case for a funding increase for Queenstown's Regional Tourism Office

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Destination Queenstown - The case for a funding increase for Queenstown's Regional Tourism Office
THE CASE FOR A FUNDING INCREASE – DESTINATION QUEENSTOWN

 The case for a funding increase
   for Queenstown’s Regional
         Tourism Office

   Destination Queenstown

   Prepared by: Graham Budd, Chief Executive
                          FINAL VERSION 6th March 2017

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Destination Queenstown - The case for a funding increase for Queenstown's Regional Tourism Office
THE CASE FOR A FUNDING INCREASE – DESTINATION QUEENSTOWN

Contents
Introduction from Destination Queenstown Chair ............................................................................................. 3
About Destination Queenstown .......................................................................................................................... 4
How DQ is funded ................................................................................................................................................ 4
Our vision............................................................................................................................................................. 4
Our mission.......................................................................................................................................................... 4
What is proposed?............................................................................................................................................... 5
What is the rationale for an increase at this time? ............................................................................................. 5
Tourism market developments ........................................................................................................................... 5
Queenstown industry development.................................................................................................................... 6
Queenstown regional tourism status .................................................................................................................. 7
DQ Marketing and Markets activity .................................................................................................................... 8
National Industry Strategies and context ............................................................................................................ 8
Destination Marketing within Destination Management ................................................................................... 9
Background and status of funding (last 10 years) ............................................................................................. 10
Current priorities and opportunities ................................................................................................................. 11
Specific purpose of and allocation of funds – 3 year Strategic Business plan................................................... 12
Proposed Increment over three years............................................................................................................... 13
Rates Impact ...................................................................................................................................................... 14
   Funding scenarios – rates examples .............................................................................................................. 15
Process of consultation and gaining member support ..................................................................................... 18
Timeline and input to QLDC process ................................................................................................................. 18
Summary............................................................................................................................................................ 18

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Destination Queenstown - The case for a funding increase for Queenstown's Regional Tourism Office
THE CASE FOR A FUNDING INCREASE – DESTINATION QUEENSTOWN

Introduction from Destination Queenstown Chair

Dear Destination Queenstown Members

Queenstown has been riding a strong wave of positive tourism growth for a number of years. This
has resulted from many different micro and macro level factors – one of which has been the activity
of your Regional Tourism Organisation's direct marketing activity and leveraging of strategic
partnerships over a number of years.

The marketing activity of your RTO aims to inspire and influence the market to bring the ideal
traveller to Queenstown – over time this has become a more significant and more complex
challenge, a challenge which we will fail to keep on top of without additional funding, and risk
losing ground to competitor destinations (both emerging and established).

In response to the opportunities of the tourism industry, and from expectations of the Destination
Queenstown (DQ) membership for the capacity and capability of DQ, we have continued to
evolve our organisation so that it can best undertake the range of marketing activity which will take
Queenstown into a successful future.

The following document outlines what we believe is all the necessary information to consider. It
outlines what we hope you, our members, will consider is a sensible and prudent recommendation
for an increase in our funding.

We look forward to your support so that DQ can continue to deliver top quality destination
marketing activity across the consumer, travel trade and business events sectors that will ensure
Queenstown is able to achieve its vision to be, and remain, the Southern Hemisphere’s premier
four season lake and alpine resort .

Regards

Matt Hollyer, Chairman
On behalf of the Board of Destination Queenstown

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Destination Queenstown - The case for a funding increase for Queenstown's Regional Tourism Office
THE CASE FOR A FUNDING INCREASE – DESTINATION QUEENSTOWN

About Destination Queenstown

Established originally as the Queenstown Promotion Bureau in 1985, Destination Queenstown (DQ)
is the regional tourism organisation responsible for marketing Queenstown domestically and
internationally on behalf of the local business community. It also incorporates the Queenstown
Convention Bureau and Study Queenstown.
DQ is an incorporated society governed by an elected sector representative Board of 6 Directors as
well as the CEO of QLDC and up to two co‐opted Directors. A Strategic Review Board (SRB) of 30
sector, industry and community members meets annually to review the DQ annual business plan and
ensure the organisation maintains a broad market and member focus.

How DQ is funded

DQ is funded by all business in Queenstown via a targeted tourism promotion levy on all commercial
rates. This is collected by QLDC via commercial rates on DQ’s behalf.
This funding mechanism and organisational structure offers a collective, neutral, approach that
provides destination marketing and promotion for the equal benefit of all businesses and the
community.
Study Queenstown currently has separate funding mechanisms through grants and membership
contributions and is not funded from the tourism promotion levy.

Our vision

For many years our consistent tourism marketing vision is to be:

       The Southern Hemisphere’s premier four season lake and alpine resort.

Our mission

To work with the Queenstown community to engage, inform, influence and maintain our ‘sense of
place’ and ‘social licence’ in support of tourism.
To work with the New Zealand and international tourism industry to promote, motivate and facilitate
sustainable year round visitor demand from priority target markets and premium segments. We
support this by being informed and knowledgeable destination experts.
To be the guardians and promoters of our destination values and brand and we curate compelling
stories and content to inspire future visitors.
To form strategic alliances and collaborate with travel trade partners, organisations and individuals
who value and appreciate our unique and desirable proposition.

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Destination Queenstown - The case for a funding increase for Queenstown's Regional Tourism Office
THE CASE FOR A FUNDING INCREASE – DESTINATION QUEENSTOWN

What is proposed?

It is proposed to increase Destination Queenstown’s core funding in annual increments over the next
three years of 10% per annum via the targeted tourism promotion levy applied to commercial rates
in the Wakatipu. This will establish an effective level of funding that can then be maintained in
subsequent years through the annual rates increment as determined by QLDC.
We believe a smaller increment over three years is likely to be more acceptable to our members. For
consideration some scenarios of the effect of this are included later in this document.

What is the rationale for an increase at this time?

Destination Queenstown’s funding was last increased in 2008 following a review that resulted in a
60% or a $1million annual increase at that time. Funding has then been increased in line with rates
movements by an average of 2.2% per annum through to 2017/18.
There have been some major market and environmental changes during this 10 year period and more
recently we have achieved significant tourism growth in both volume and value.
Increases in operational costs including expert marketing and business development staff salaries,
technology tools and resources and office premises has absorbed all of the annual increment over
this 10 year period. Effectively this has resulted in there being no increase in our marketing activity
and business development budget.

Tourism market developments

International visitors account for about 70% of Queenstown’s visitor mix. Queenstown continues to
be New Zealand’s primary destination of appeal to international visitors
Long term visitor arrivals into New Zealand continue on an upward trend notwithstanding short term
shocks and impacts, often driven by one off events. MBIE 2017 forecasts international visitor arrivals
to continue to grow by 4.8% annually through to 2023.
                                INTERNATIONAL VISITOR ARRIVALS

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Destination Queenstown - The case for a funding increase for Queenstown's Regional Tourism Office
THE CASE FOR A FUNDING INCREASE – DESTINATION QUEENSTOWN

Queenstown industry development

Destination Queenstown’s marketing activities have significantly contributed to Queenstown’s
annual guest nights increasing by a total of 57% from 2009 to 2017 with both domestic and
international nights growing at similar rates. This is an average annual increase of 8.1%.
Note the national guest night increase over this time has been only 22% vs Queenstown at 57%
Guest nights in not represented in this data, such as Airbnb and holiday homes, have also grown
significantly. DQ estimates this to be approx one third more to a total of 5 million guest nights pa.
                                   COMMERCIAL GUEST NIGHTS

With a clear DQ objective over many years to grow value at a rate ahead of volume, Queenstown has
enjoyed a total visitor spend increase of 108% from 2009 to 2017. This is an average annual increase
of 13.5%. The rate of value growth has therefore been nearly double that of volume.
                                     ANNUAL VISITOR SPEND

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THE CASE FOR A FUNDING INCREASE – DESTINATION QUEENSTOWN

Queenstown regional tourism status

Queenstown has clearly become the visitor hub for the lower South Island and dynamics of visitor
movements through and around the South Island have seen significant growth in scheduled air
services and passenger numbers through Queenstown Airport.

Queenstown is the third largest international airport in New Zealand with four airlines directly serving
ZQN from 5 ports on the East Coast of Australia. Forecast continued growth is illustrated in the recent
Airport 30 year master plan consultation.
Airport arrivals grew by 265% from 2008 to 2017 (see graph below). This growth has come from both
domestic services (which carry both domestic and international visitors) and trans‐Tasman services.
Queenstown is New Zealand’s largest international visitor destination by both volume and value
(after Auckland). Our ratio of international visitors to domestic is the highest in New Zealand at 70:30.
However, of course, domestic visitors are extremely important and our single largest geographic
market.
                                 QUEENSTOWN AIRPORT ARRIVALS

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THE CASE FOR A FUNDING INCREASE – DESTINATION QUEENSTOWN

Queenstown remains New Zealand’s premium destination and the primary location for promotion of
many experiences such as golf, adventure and ski.
Queenstown is home to many of New Zealand’s ‘iconic’ experiences which continue to establish and
maintain our national as well as regional reputation.
While building diversity of the local economy is our collective aspiration, tourism and the visitor
economy, will remain the backbone and economic driver for our community in the foreseeable
future.

DQ Marketing and Markets activity

As noted above, budgets for marketing activity have effectively remained flat since 2009. In effective
terms this means less marketing investment is possible in an ever fragmenting media environment
and as travel channels and markets have grown.
                                        This applies to marketing, communications, media, travel
                                        trade and C&I.
                                        So, as DQ marketing activity budgets have been static, the
                                        opportunities have significantly grown. There are now more
                                        international markets being targeted by New Zealand as air
                                        services and connectivity grows.
                                        Tourism New Zealand has had a budget increase of 56% over
                                        the period that DQ’s grew 20%. They now have 13
                                        international offices, up from 9 in 2008.
                                        Since 2014 TNZ have also created divisions for Business
                                        Events (C&I), Premium marketing and Special Interest such as
                                        golf, wine, biking and ski. This has resulted in a significant
                                        increase in opportunity and DQ has attempted to capitalise
                                        on those that are beneficial to our members and region.

National Industry Strategies and context

As a primary visitor destination in New Zealand this region, represented by Destination Queenstown,
has an obligation and leadership and influencing role to support national strategies that have national
or at least wider regional influence.
In recent years this includes the post 2011 earthquake SOUTH initiative, the TIA developed industry
framework TOURISM 2025. MBIE has published Government policy/strategies positions and of
course Tourism New Zealand’s strategies are highly influential for our international activity. Recently
DQ has joined the NZ Tourism Sustainability Commitment. There are many other examples of
Queenstown’s leadership and participation in many industry issues and of course this is appropriate
and ultimately for the benefit of our members and community.

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THE CASE FOR A FUNDING INCREASE – DESTINATION QUEENSTOWN

Current national strategies for tourism include a priority focus on ‘dispersing’ visitors seasonally and
regionally. The seasonal strategy is one that DQ has been focussing on for many years and we support
this.
However the regional dispersal strategies that MBIE, Tourism New Zealand and TIA have adopted
during 2017 are posing a long term risk for Queenstown and DQ members. There is a perception by
our national agencies that Queenstown has an ‘over demand’ issue and congestion or supply
problems. This is resulting in market intervention by Tourism New Zealand with very specific regional
campaigns in an effort to address this. The issue is also driven politically by both previous and current
Governments.
We have numerous examples of this approach actively disadvantaging our region with Tourism New
Zealand’s ski marketing investments for 2017 and 2018 being a current case in point.
This risk in this scenario is more related to medium and long term perception and demand rather
than short term impacts. Without question there are currently some visitor demand and impact
issues which require management at a community level and this is reflected in our strategies of local
engagement and influence.

              “If the rate of change on the outside
 exceeds the rate of change on the inside, the end
                       is near”
                                                                                             Jack Welch

Destination Marketing within Destination Management

Queenstown has experienced growth in both visitors and permanent residents in recent years and
this is expected to continue. Visitor growth has been very good for our economy but has also created
some resident resistance to the negative impacts of this growth.
This is not an issue unique to Queenstown. Many popular destinations globally are addressing the
same issue as international outbound tourism grows and is expected to continue to do so. Many
other New Zealand destinations are also experiencing this pressure.
This gives rise to the concept of ‘social licence’ and ensuring that local residents and communities
remain supportive of the visitor industry and welcome the diversity, social and economic benefits
that tourism brings.

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THE CASE FOR A FUNDING INCREASE – DESTINATION QUEENSTOWN

Many destination marketing organisations (DMO’s) or RTO’s are addressing the transition into
destination management influence that these growth pressures are creating.
This is also the case for DQ. While our core mandate remains on positioning, branding, marketing and
demand creation activity it is necessary to also now consider how growth and demand is managed in
a sustainable way within our community.
Destination marketing is a part of Destination management and this includes ensuring we have an
informed and engaged resident community and that any negative sentiment is listened to,
understood and mitigated as far as possible. A welcoming host community is the most important
asset any visitor destination can have.
In particular the DQ CEO (with senior management and the DQ Board) have a very important role to
play in influencing and engaging with the community on these matters. This evolution of influence
has been formally considered by the DQ Board over the last couple of years and resulted in the recent
structural changes and the extended community mandate of DQ and the CEO.

Background and status of funding (last 10 years)

As noted earlier Destination Queenstown funding was increased in 2008 and has subsequently had
an increment of an average 2.2% between 2009 and 2017/8.
This represents a total increase of just 20% noting the previous reference to TNZ’s increase of 56%.
During this period, and more specifically in the last 5 years, this increase has been fully absorbed by
investments in skilled staff salaries, including new roles which have been created in line with growth
in demand, opportunity in our markets and growth in the funding and activities of our key partners,
particularly Tourism New Zealand.
Team positions were 11 in 2009 and are 15 in 2018. It is not envisaged that any further positions will
be required to fulfill our obligations to our members. At this current level and structure we are
suitably resourced while still having to remain very selective about prioritising our demands and
opportunities.

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THE CASE FOR A FUNDING INCREASE – DESTINATION QUEENSTOWN

In addition DQ relocated in 2015 to new commercial premises which was essential to accommodate
the team and create a suitable working and visitor environment. Overall this has meant an average
increase in staff and operational costs of 5.5% which has absorbed most of our funding increment.
With an aspiration to be the highest performing RTO in New Zealand we have also invested in
appropriate tools and technology such as the recent investment in a world class CRM system and
recent (and continual) investment in our website and other digital channels. We are the leading RTO
in New Zealand for social media following.

                          DQ LEVY INCOME AND ALLOCATION (YE JUNE)

Current priorities and opportunities

Destination Queenstown undertakes a transparent and robust business planning process which is
ratified by a strategic review board on behalf of our members and wider community. This includes a
three year strategic intent framework executed through annual business plans.
2016 to 2018 priorities included investment in a new destination web site and implementation of a
new CRM system to support sales processes. We have increased investment in the Queenstown
Convention Bureau and our priority markets remain NZ domestic, Australia, USA and China with an
emphasis on higher value visitors and developing a portfolio of visitor markets in line with
opportunities provided by Tourism NZ and airline connectivity.
Our objectives are to drive year round demand by maintaining our peak seasons as we grow our
shoulders. In particular we have a need to defend our winter position as New Zealand’s premier ski
destination and rebuild some apparent softening in demand.

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THE CASE FOR A FUNDING INCREASE – DESTINATION QUEENSTOWN

To achieve our objectives DQ also requires suitably skilled and experienced staff. The establishment
in 2017 of the role of Business Development and Convention Bureau Director complements the
Marketing and Communications Director position established in 2015.

Specific purpose of and allocation of funds – 3 year Strategic Business plan

Over three years it is proposed to utilise the additional funding as follows based on our 3 year
strategic priorities. A principle of how we operate is to remain nimble and flexible to changing market
conditions, however these are the expected areas of application.
In year one (2018/2019) it is expected the increment of approximately $190,000 will allow us to
recover our core operational costs and maintain our current levels of marketing activity investment.
In year two and three we will have sufficient increased funds to invest more where required or
implement new initiatives.
Our strategic priorities in the three year period are covered under four key pillars.

   1. SUSTAINABLE HOST COMMUNITY.
       This focus is to ensure that tourism in
       Queenstown retains the support of our
       community (both business and resident)
       to ensure the long term sustainability of
       the sector. This includes factors of the
       environment, visitor experience, host
       community support, business economic
       sustainability,     and       reputation
       management.

   2. OUR BRAND, OUR PLACE AND OUR STORIES.
       Marketing Queenstown through telling the stories of our place and curating content that
       supports the pillars of our brand and proposition. We need to retain our adventure
       credentials and defend our status as New Zealand’s ‘essential’ visitor destination while
       effectively participating in national strategies that seek to distribute visitors into less visited
       regions during peak periods.
   3. GROWING VISITOR VALUE.
       This continues our targeting of markets and sectors that can be encouraged to stay longer,
       have a higher daily spend than average and those that can be motivated to travel in shoulder
       seasons, recognising that defending our peak demand is also essential.
       This applies to both leisure travellers as well as conference and incentive business events.

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THE CASE FOR A FUNDING INCREASE – DESTINATION QUEENSTOWN

       Value can be defined in many different ways but it is essential to note our principle of being
       a desirable and welcoming destination for all styles of traveller. The intent is for their relative
       experience to be a premium one whether a back packer in a hostel or an executive in a luxury
       lodge.
   4. MARKET OPPORTUNITY PORTFOLIO
       As potential new visitor markets emerge to complement existing established markets our
       challenge is to invest in the appropriate portfolio that can best achieve our objectives.
       This is our responsibility to the wide variety of DQ members catering to many markets. The
       geographic market priorities will remain as NZ domestic, Australia, USA, and China.
       Next level priorities include a mix of traditional (UK, Europe, Japan, Korea, SEA) and those
       with emerging growth potential (Latin America, India, Philippines).

Proposed Increment over three years

Each year the targeted rate is determined based on the total proposed funding for DQ (less 5%
allocated from general rate) and divided by the capital value of the applicable rating units. Therefore
the rate is impacted by changes in the capital value of individual properties and also
increases/decreases in the number of properties in these rating categories.
                                                                 Due to the increase in the number of
                                                                 commercial        properties      in
                                                                 Queenstown over the last few years
                                                                 the actual rate apportioned has
                                                                 actually decreased since 2013 from
                                                                 0.001226 to 0.001170 in FY18.

                                                                   It is proposed to increase the
                                                                   total DQ levy income by 10%
                                                                     in each of the next 3 years.

Assuming no additional funding is confirmed, QLDC’s LTP budget proposes an annual increment over
this time of 3.2% pa.
We are therefore seeking an additional increment of 6.8 % above this level as illustrated below in
the chart and table.

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THE CASE FOR A FUNDING INCREASE – DESTINATION QUEENSTOWN

                                    PROPOSED LEVY 2019 ‐ 2021

(000's)
 Year                Current              3.2% LTP            6.8% variance TOTAL ANNUAL
                                          increase            Requested     WITH 10%
                                          proposed            (additional)  PROPOSED
 2018                $3,491
 2019                                     $3,603              $237                 $3,840
 2020                                     $3,718              $506                 $4,224
 2021                                     $3,837              $809                 $4,646

By year 3 an annual 10% increment will provide an additional $809,000 pa funding to a total of $4.646
million.
Please note that these are simplified estimates. Approximately 5% of DQ’s funding is derived from a
‘top up’ from general rates but for the purposes of this proposal this small effect is not accounted
for.

Rates Impact
Below are some specific examples of the effect of the proposed increase on a variety of commercial
and accommodation properties. Individual properties and businesses will cover a very wide range
however these tables are representative of the relatively modest effect on rates expected over the
three year period.
Many DQ members are renting or leasing premises. Obviously In this case the rental or lease costs
will include a component of contribution to cover rates. The variables of contribution in this scenario
are too many to consider specifically however as a guide, a calculation can be made based on:

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THE CASE FOR A FUNDING INCREASE – DESTINATION QUEENSTOWN

       A rates bill could be approximately 25% of the opex costs of a commercial downtown property
       The tourism promotion levy is approximately 25% of a total rates bill.
       Divided by the share of space or floor area occupied by the respective business.
Some examples of the rates impact on a leased property are included below
Please note all of these examples below are indicative only and NOT actual amounts. They likely
reflect a worst case scenario because they assume a static base with no additional properties in the
Queenstown/Wakatipu wards. This is clearly not the case. In addition the properties used for
rental/lease examples are high value CBD commercial buildings, again just used for illustration.

Funding scenarios – rates examples

Commercial ‐ median capital value $1.230 million
 Year                Current base        10%                 Annual              Quarterly
                                         Proposed            Increment           Increment
 2018                $1,439
 2019                                    $1,583              $144                $36
 2020                                    $1,742              $158                $40
 2021                                    $1,916              $174                $44

Commercial ‐ lower capital value $274,000
 Year                Current base        10%                 Annual              Quarterly
                                         Proposed            Increment           Increment
 2018                $320
 2019                                    $353                $33                 $8
 2020                                    $388                $35                 $9
 2021                                    $427                $49                 $10

Commercial ‐ higher capital value $21.9 million
 Year                Current base        10%                 Annual              Quarterly
                                         Proposed            Increment           Increment
 2018                $25,576
 2019                                    $28,134             $2,558              $640
 2020                                    $30,947             $2,813              $703
 2021                                    $34,042             $3,095              $774

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THE CASE FOR A FUNDING INCREASE – DESTINATION QUEENSTOWN

Mixed use ‐ capital value $1 million
Year              Current base         10%            Annual      Quarterly
                                       Proposed       Increment   Increment
2018              $293
2019                                   $322           $29         $7
2020                                   $354           $32         $8
2021                                   $389           $35         $9

Mixed use ‐ capital value $500,000
Year              Current base         10%            Annual      Quarterly
                                       Proposed       Increment   Increment
2018              $147
2019                                   $162           $15         $4
2020                                   $178           $16         $4
2021                                   $196           $18         $5

Mixed use ‐ capital value $2.5 million
Year              Current base         10%            Annual      Quarterly
                                       Proposed       Increment   Increment
2018              $731
2019                                   $804           $73         $18
2020                                   $884           $80         $20
2021                                   $972           $88         $22

Accommodation ‐ median capital value $1.230 million
Year              Current base         10%            Annual      Quarterly
                                       Proposed       Increment   Increment
2018              $1,436
2019                                   $1,580         $144        $36
2020                                   $1,738         $158        $40
2021                                   $1,912         $174        $44

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THE CASE FOR A FUNDING INCREASE – DESTINATION QUEENSTOWN

Accommodation ‐ lower capital value $462,000
Year              Current base      10%               Annual      Quarterly
                                    Proposed          Increment   Increment
2018              $541
2019                                $595              $54         $14
2020                                $655              $60         $15
2021                                $720              $65         $16

Accommodation – higher capital value $42.6 million
Year              Current base      10%               Annual      Quarterly
                                    Proposed          Increment   Increment
2018              $49,802
2019                                $54,782           $4,980      $1,245
2020                                $60,260           $5,478      $1,370
2021                                $66,286           $6,026      $1,506

CBD commercial property lease ‐ 100sqm
Year              Current base      10%               Annual      Quarterly
                  contribution      Proposed          Increment   Increment
2018              $763
2019                                $839              $76         $19
2020                                $923              $84         $21
2021                                $1,015            $92         $23

CBD commercial property lease ‐ 250sqm
Year              Current base      10%               Annual      Quarterly
                  contribution      Proposed          Increment   Increment
2018              $1907
2019                                $2,097            $190        $48
2020                                $2,306            $209        $52
2021                                $2,537            $230        $57

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Process of consultation and gaining member support

DQ needs to make submissions to the QLDC LTP by the submission deadline of the 13th April 2017.
QLDC also requires sufficient evidence of member support for the proposed increase as part of the
submission. It is proposed to provide this evidence by way of a member vote of support at a special
general meeting of members.
The process of consultation with members and key stakeholders will be:

       Business case documentation complete for members by 8th March 2017
       Special Remarks to members on 8th March 2017 with documents available
       Mountain Scene advertisement of member general meeting published 8th March 2017
       Member and stakeholder consultation and presentations between 8th and 28th March 2017
       DQ Member general meeting and vote on 28th March, 4pm, Millennium Hotel
       SRB to ratify business plan and funding submission 6th April.
       Submit to QLDC by 13th April.

Timeline and input to QLDC process

The process of member consultation on the proposed increase will happen in parallel to the DQ
strategic and annual plan timeline.
The key deadlines are:

       Document and proposal released to members 8th March
       Consultation and approval process completed by 28th March
       SRB meeting on the 6th April
       DQ submits to LTP ‐ QLDC submission deadline on the 13th April.

Summary

Destination Queenstown is seeking an increase in core funding over the three year period from
FY2019 to FY2021 in three annual steps of 10%.
Since 2008 DQ investment and activity has contributed to significant sector growth in Queenstown,
well ahead of national average, with visitor volume up 57%, spend up 108% to $2.157 billion and
Queenstown airport arrivals up 265%.
In this time Tourism NZ funding has also had new markets, offshore offices, sector investment (C&I
and SIG) added to their portfolio of activity.
Over the same time DQ funding has increased by a total of only 20% or 2.2% average pa. This
increase has been largely absorbed by cost increases for skilled staff, premises and other
operational costs. Therefore our marketing campaign and business development (trade, industry
and C&I) investment has remained static in an increasingly fragmented and complex environment.

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THE CASE FOR A FUNDING INCREASE – DESTINATION QUEENSTOWN

Despite this we have achieved some excellent results, with strong sector tailwinds, but our ability to
participate and influence the growth opportunities ahead in a potentially more challenging
environment will require an increased investment. DQ must also play an increasing role with the
community and in sharing knowledge to achieve long term sector sustainability for both businesses
and residents.
Member support is required for an increase in DQ’s base funding through three annual increases of
10%pa to the tourism promotion levy collected by QLDC on the behalf of DQ’s members. To accept
a submission to implement this, QLDC require clear evidence of this support in our submission to
their 2017 LTP process.

                 __________________________________________________________

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