VISIT SUNSHINE COAST ANNUAL REPORT 2016/2017

Transcription

1 VISIT SUNSHINE COAST ANNUAL REPORT 2016/2017

2 KONDALILLA FALLS Cover Image: Pumicestone Scenic View

3 CONTENTS Chairman s Report 2 Chief Executive Officer s Report 3 About Visit Sunshine Coast 4 Membership 7 Domestic Marketing and Digital 8 International and Trade 10 Business Events 12 PR and Communications 14 Industry Development 15 Events and Cruise 16 Visitor Information Centres 19 Annual Financial Report 21 VISIT SUNSHINE COAST ANNUAL REPORT 2016 /

4 CHAIRMAN S REPORT The 50th anniversary of the naming of the Sunshine Coast provided a unique opportunity to both reflect on a very successful half century of tourism growth, and look forward to the next 50 years as we continue to maximise the potential benefits of tourism for the region s businesses and residents. The Sunshine Coast not only attracted record domestic and international visitor numbers, it has consistently led the state in tourism growth. Sunshine Coast Airport was also the fastest growing airport in Australia throughout much of 2016/2017, driving growth particularly from Sydney, Melbourne and Auckland, but also a new market, Adelaide. To maintain the tourism momentum, some key decisions were made in 2016/2017 that will have profound and far-reaching impacts on the future development of the region. The most important was Sunshine Coast Council s game changing decision to build a new runway and approve the upgrade of the terminal and facilities at Sunshine Coast Airport to make it a genuinely international airport. Council also decided that the new era for the airport should be driven by new private operators, with one of Australia s largest fund managers, Palisade Investment Partners, appointed by Council to take over operation of Sunshine Coast Airport under a 99-year lease. The new airport will present significant future opportunities for the Sunshine Coast tourism sector, with the potential to establish fresh markets both within Australia and overseas. The new aviation strategy complements Visit Sunshine Coast s (VSC s) major investment in the traditional drive market. Our major artery, the Bruce Highway, has been approved for a substantial upgrade which will provide long term benefits to the region s tourism operators, though possibly some short and medium term challenges, which VSC will aim to ameliorate as the work gets underway. Looking forward, the Sunshine Coast can develop high-yielding leisure, conference and incentives markets, while the ability to attract larger planes will allow the agricultural sector to flourish and build on the already enviable reputation of our seafood, dairy and produce. The promotion and growth of agri-tourism has been reflected in our strategy of greater integration and cross promotion of the Sunshine Coast s key assets. The opportunities that the airport expansion presents have precipitated a sharper focused strategic direction for VSC and an absolute commitment to operating collegiately with the various sub-regions that make up the collective Sunshine Coast tourism region. VSC and its partners across the region have worked assiduously to create a reputation for the region as one of the country s most authentic and natural tourism destinations, which is clearly resonating with the travelling public. That is not to say there are not challenges that the VSC Board believes need addressing. A major issue is the need for significant and urgent upgrading of the region s accommodation stock. The impact of the continued closure of the Palmer Resort and the lack of new upscale product has impacted our ability to grow the premium travel, conferencing and events sectors. It will be important for proposed developments such as the Westin at Yaroomba and new developments in Maroochydore and Mooloolaba to move from proposal stage to development, so they are in place when the new airport opens. Throughout 2016/2017, the Board has taken part in networking sessions with VSC members and we have been impressed to hear of the exciting plans for new and upgraded visitor attractions both from larger operations and smaller-scale, specialist operators who are creating impressive and sustainable businesses. I d like to thank all our members for their input during the year and acknowledge their wholehearted contribution to the region s tourism success. I would also like to thank the Mayor, Councillors and the team at Sunshine Coast Council for their astuteness and ongoing support in 2016/2017, along with our partners in the sub-regions and the Noosa and Gympie tourism organisations. The team at VSC has performed impressively during 2016/2017, constantly introducing new initiatives and partnerships to drive visitor growth and promotion of the region s attractions and operators. Finally, I would like to thank my predecessor, Grant Hunt for his service and fellow Board members for their contributions throughout the year. We have a dedicated and talented group of Board members who are passionate about the region and committed to the ongoing success of all our members. DAVID RYAN CHAIRMAN OF THE BOARD 2 VISIT SUNSHINE COAST ANNUAL REPORT 2016 / 2017

5 CHIEF EXECUTIVE OFFICER S REPORT The 2016/2017 year ended with the region achieving a number of records that reflect the commitment, dedication and innovation of the entire Sunshine Coast tourism community. KEY ACHIEVEMENTS DURING THE YEAR INCLUDED: A record 296,000 international arrivals for the year ending June 2017, up 11.6% and contributing $249 million in visitor expenditure to the economy. A record 3.4 million domestic arrivals and 12.4 million visitor nights (up 4.4%) on the back of strong increases in the interstate market (up 13.9%) and the Brisbane drive market (up 16%). The record visitor numbers contributed $2.06 billion to the Sunshine Coast economy. Launch of five new brand pillars and the innovative Come to life marketing campaign. Sponsorship of the Sunshine Coast Lightning for the 2017 national netball championships with the team securing the Super Netball Grand Final in their first year. The Sunshine Coast Lightning team is emblematic of what has happened to the Sunshine Coast over the past year. Their success literally put the Sunshine Coast on the national map and further emphasised the Sunshine Coast s reputation as a truly naturally refreshing destination built on sunshine, a lush environment, healthy produce and a spirited group of can do people committed to high achievement. The same could be said for Sunshine Coast Airport with their record passenger movements topping one million, confirmation of a new runway and flight services secured from Adelaide, along with increased services from Sydney, Melbourne and Auckland. The expansion of air services was part of a multi-faceted marketing strategy implemented during the year that was aimed at growing short-term business through tactical partnership campaigns. Resources were also invested into growing our traditional drive market, with dedicated campaigns in Brisbane and intrastate markets, along with a packed events calendar aimed at attracting return travellers. There was also a focus on the cruise market and while weather sometimes impacted arrivals; we saw nine cruise vessels deliver over 40,000 passengers for a taste of Sunshine and culminated in the Sunshine Coast winning the Australian Cruise Conference, further establishing our claim as a dynamic new port for this rapidly growing market. The Sunshine Coast s high profile in traditional media was complemented by an industry-leading presence in digital and social media, with numerous influencers hosted during the year including a regular program of instameets. The domestic market will remain the priority in the short to medium term, but the continued surge in international arrivals, complemented by the upgrading of Sunshine Coast Airport s capacity in the future, led to VSC implementing an innovative and forward-thinking strategy that will position us strongly to build existing and emerging markets, particularly from Asia. With our Director of International Marketing now based in Singapore and working closely with our partners, Tourism Australia and Tourism and Events Queensland; the Sunshine Coast is well-placed to be able to maximise eastern markets, while continuing to grow business from our traditional international markets such as America, UK, Europe and New Zealand. Evolving from the Destination Advisory Panels, VSC formed a dedicated subregional committee of key industry advocates to champion the promotion and development initiatives of each area to build an even stronger and unified Sunshine Coast brand. OTHER HIGHLIGHTS FROM THE YEAR INCLUDE: Establishing the region as a leader in food-based tourism, with the launch of an online Food Trail. Strengthening the Sunshine Coast s potential as a quality destination for major conferences and events, culminating in winning the right to host the Australian Event Awards. The domestic and international tourism industry is becoming more competitive. With the resurgence of the Australian dollar (which has appreciated over 13% against the US dollar since 2016), continued economic and political uncertainty globally and in Australia, issues with the Bruce Highway, and the need for major investment in tourism accommodation and convention facilities; we are fully aware of the challenges that we face in the years to come. As a result, we have built up a highly professional and skilled team at VSC, committed to working closely with our members, our partners, with the outstanding team at Sunshine Coast Council, all the local tourism bodies and the wider tourism community. The region produced highly successful results in 2016/2017, and I d like to thank everyone involved for their contribution. We are now well positioned to build on that success. SIMON LATCHFORD CHIEF EXECUTIVE OFFICER VISIT SUNSHINE COAST ANNUAL REPORT 2016 /

6 BUDERIM FOREST PARK ABOUT VISIT SUNSHINE COAST Sunshine Coast Destination Ltd, trading as Visit Sunshine Coast (VSC), is a not-for-profit, membership based, destination marketing organisation whose primary purpose is to promote the region as a leisure and business event destination through global and domestic trade, media and travel industry channels. As the Regional Tourism Organisation (RTO), VSC is responsible for a geographical area that encompasses the Glass House Mountains in the south, to Rainbow Beach in the north and Hinterland and Mary Valley to the west and includes three council regions - Sunshine Coast, Noosa and Gympie. OUR VISION The Sunshine Coast tourism region will be globally recognised as Australia s premier revitalising destination where the blend of experiences showcases the region s diversity. KEY RESULT AREAS Destination Promotion Unforgettable Experiences FUNDING Sustainable Tourism Industry Organisational Effectiveness Sunshine Coast Council (SCC) collects a tourism levy from commercial ratepayers. A percentage of this levy is given to VSC to sustain 25,800 jobs on the Sunshine Coast and to support destination marketing, attracting business events and the operation of eight accredited Visitor Information Centres. In the 2016/2017 financial year, the SCC Tourism and Major Events levy raised approximately $5.73 million. During the year VSC received $4.06 million in total funding from SCC. In addition to the tourism levy, VSC raises funds through membership fees, direct industry contributions and cooperative marketing programs. As the RTO, VSC also receives state funding via a three year Partnership Agreement with Tourism and Events Queensland (TEQ). This funding is dedicated to destination and business event marketing. PARTNERSHIPS VSC represents over 600 members comprising accommodation, attractions, tour operators, restaurants, cafes, transport providers and professional support services. VSC industry partnerships include, but are not limited to Tourism Australia, TEQ, SCC, Mantra Group, Fraser Coast Tourism and Events and Sunshine Coast Airport to leverage marketing opportunities. 4 VISIT SUNSHINE COAST ANNUAL REPORT 2016 / 2017

7 9.8 MILLION OVERNIGHT VISITOR SPEND OVERNIGHT VISITORS 3.7 MILLION DAYTRIP VISITORS 6 MILLION $2.3 BILLION MOOLOOLABA MARINA VISIT SUNSHINE COAST ANNUAL REPORT 2016 /

8 EUMUNDI MARKETS 6 VISIT SUNSHINE COAST ANNUAL REPORT 2016 / 2017

9 SIMON LATCHFORD, GARY HADDON AND PETER PALLOT MEMBERSHIP During 2016/2017, VSC attracted and serviced 602 members. Member relationships were established and maintained, with 91% of members satisfied/extremely satisfied with their VSC membership as per the annual member satisfaction survey. This was in line with satisfaction levels from 2015/2016. As a membership based organisation, engagement is critical to the organisation s success and a number of initiatives were undertaken over the period to deliver value to members. In March 2017, VSC held an industry roadshow, Conversations with VSC with the goal of updating members and the community on the achievements of the year and strategic direction moving forward. Sessions were held across five regions including Caloundra, Gympie, Noosa, Coolum and the Hinterland. In total, 110 members were in attendance across the regions. VSC held monthly operator presentations throughout the year. These allowed members to meet with the VSC team, provide an update on their tourism business and gain feedback and assistance. This activity offered specialised support and established a crucial strengthening of member rapport. There was also the regular delivery of communication including invitations, cooperative marketing opportunities and workshops delivered directly via e-newsletters, corporate social media channels Facebook and Twitter and member access to the corporate portal of the VSC website. Eight networking events were held throughout 2016/2017 attracting over 900 members. Events were held in cooperative partnership with subregional partners and the major attractions on the Sunshine Coast. The highlight, Tourism on Fire was held in Caloundra in conjunction with Caloundra Chamber of Commerce and attracted a record attendance of 220 members and industry. During the 2016/2017 period, a restructure of the VSC staffing saw the creation of a new Membership Specialist role dedicated to member engagement. This position is dedicated to a high level of interaction between VSC and its members. MEMBERS BY LEVEL MEMBERS BY REGION TOURISM ASSOCIATES 28 CALOUNDRA TO KAWANA 101 TOURISM ESSENTIALS 433 MOOLOOLABA TO COOLUM 222 BUSINESS EVENTS ESSENTIALS 19 NOOSA AND SURROUNDS 79 BUSINESS EVENTS 58 HINTERLAND 125 TRADE AND LEISURE 62 GYMPIE TO RAINBOW BEACH 43 LIFE MEMBERS 2 OUT OF REGION 32 VISIT SUNSHINE COAST ANNUAL REPORT 2016 /

10 DOMESTIC MARKETING AND DIGITAL In line with the Tourism Australia and TEQ marketing direction and guided by consumer experiences, VSC s domestic marketing focus during 2016/2017 was to launch brand pillars under the Sunshine Coast Naturally refreshing positioning, aligned with the national and state targets. The five brand pillars of contemporary beach culture, wonders of nature, innovative food and produce, immersive encounters, and exhilarating events guided consumer marketing campaigns, promotions and consumer communications working in partnership with member businesses, travel retailers and airlines. Key targets included the drive market, New South Wales, Victoria and South Australia. CAMPAIGNS The new campaign tagline, Come to life was launched in early This new television and digital creative was developed to support and launch the new brand pillars along with the organisation s first Brand Ambassador local musician Dan Horne. He created a special version of the song, This Town as the theme for the campaign. The promotion ran in phases firstly in the drive market, followed by interstate. Results included 73 operator deals resulting in over 16,000 unique visits to our website, more than 4,500 clicks through to operator websites/operator pages and 2,500 competition entries. The new Jetstar Adelaide to Sunshine Coast service launched in September 2016, with flights three times a week. VSC supported the new route with a campaign held in conjunction with Jetstar Australia and Sunshine Coast Airport including hosting six social media influencers as part of the inaugural flight. Campaign results included 436,777 Facebook impressions, 7,010 landing page clicks and 5,463 via Cheap flights, 190,123 video views, 1,782,682 digital display impressions, 94,489 cinema admissions and two travel features in Adelaide Advertiser. The flights have proven popular over the period with 50,000 South Australians travelling to the Sunshine Coast to the year ending June The Escape Travel campaign ran locally as well as in Victoria, New South Wales and South Australia with the Escape tagline I want to feel refreshed. Creative included print and digital placements, as well as window displays in 165 national stores. Customer sales were up 29%, room nights increased by 37% and passenger numbers were up by 26% compared to the same period the previous year. Approximately half (49%) of the room night sales came from the Victoria region. The Wotif winter campaign, under the Come to life creative, targeted the southern states and included television commercials, digital video, print and a major digital presence resulting in 1.7 million online impressions, 1,104 clicks and attracted 6,240 passengers to the Sunshine Coast which generated almost $900,000. COLLATERAL The 2017 Official Visitor and Event Guide was developed with layout and content reformatted to align with the new brand pillars and costs were reduced with in-house design. Available digitally and with a print run (115,000), the distribution was extended to an additional 400 touchpoints in Brisbane and the Gold Coast including 3,600 brochures distributed at the Caravan and Camping Shows and Flight Centre Travel Expos in Sydney, Melbourne and Brisbane. MARKETING PROMOTIONS The Melbourne Storm versus New Zealand Warriors digital and PR activation resulted in a 30% uplift in tickets, 1,046 competition entries and 22% of attendees from outside of the Sunshine Coast. The Australian Traveller content partnership featured native content across three editions, plus an eight-page Glass House Mountains story in the summer issue. The content featured the new brand pillars and resulted in 8,180 opens of the solus Sunshine Coast e-newsletter, a 5.9% click through rate to the website, 1,400 competition entries and 1,289 Australian Traveller referrals. DIGITAL During 2016/2017, VSC enhanced digital platforms for consumers, members, buyers and trade to actively engage via the following initiatives: The new visitsunshinecoast.com website was enabled for mobile and launched in mid-july The interactive Food Trail was launched in November 2016 receiving more than 14,000 unique pageviews to 30 June. An update your details campaign commenced in May 2016 to finetune customer segments for more targeted marketing. Further to this, regular competitions were run to boost numbers to the consumer database increasing over the period by 29% to more than 100,000. SOCIAL MEDIA VSC coordinated and hosted nine instameets with local and surrounding photographers. This increased advocacy and reach of the visitsunshinecoast hashtag. In addition, VSC partnered with Canon to host five specialised meet-ups from Caloundra to Rainbow Beach with more than 200 influencers attending. 8 VISIT SUNSHINE COAST ANNUAL REPORT 2016 / 2017

11 ALEXANDRA HEADLAND SURF LIFE SAVING CLUB SOCIAL MEDIA 15 / / 17 % YEAR ON YEAR INSTAGRAM FOLLOWERS 41,344 64,624 56% ENGAGEMENTS 773,013 1,578, % TWITTER FOLLOWERS 9,527 12,595 32% IMPRESSIONS 4,949,847 6,410,692 30% ENGAGEMENTS 146, ,051 74% FACEBOOK FANS 70,531 87,928 25% TOTAL REACH 5,453,135 8,461,588 55% TOTAL ENGAGEMENT 287, ,869-2% AVERAGE POST REACH 14,738 22,869 5% WEBSITE 15 / / 17 % YEAR ON YEAR BOUNCE RATE % NEWSLETTER SUBSCRIBERS 79, ,894 29% Of note, algorithm changes to Facebook saw total engagement decline 2%. VISIT SUNSHINE COAST ANNUAL REPORT 2016 /

12 INTERNATIONAL AND TRADE The Sunshine Coast attracted its highest ever increase in international visitors with 296,000 arrivals visiting to the year ending June 2017, up 11.6% and contributing $249 million in visitor expenditure to the economy. VSC s continued focus to grow international visitor numbers, increase length of stay and encourage regional dispersal has been achieved through the undertaking of tactical marketing campaigns and collaborative marketing efforts made possible through partnerships with SCC, TEQ, airline partners, global distribution partners, regional tourism partners and our valued members which continue to see consistent growth from the top four international source markets: New Zealand, UK, Germany and the USA. International marketing activity has been under-pinned by three key areas of focus: 1. Experience and Operator Development 2. Trade Engagement 3. Consumer Activations. GLOBAL REPRESENTATION In August 2016, VSC appointed a new dedicated New Zealand representative based in Auckland, followed by the appointment of a European based trade representative in September 2016, providing real-time local presence in the Sunshine Coast s key source regions. Further to this, in January 2017, VSC s Director of International Marketing relocated to Singapore which saw the opening of a VSC representative office, providing new market growth opportunities for the Sunshine Coast to expand into the high yielding eastern markets. AUSTRALIA S NATURE COAST (ANC) MARKETING PARTNERSHIP VSC has continued to develop the ANC joint marketing partnership with further success in growing trade and international relationships in Europe, particularly Germany and the United Kingdom. In 2016/2017, VSC pooled resources with Fraser Coast Tourism and Events, Destination Gympie Region and Tourism Noosa in partnership with TEQ to further develop the initiative and undertake a broad range of development and marketing activity. 2016/2017 INTERNATIONAL MARKETING HIGHLIGHTS NEW ZEALAND VSC participated as major sponsor of the Auckland Food Show enabling digital, print and direct promotional opportunities to target consumers in key source regions of Auckland and Wellington. In addition, a display was also held at the Flight Centre Consumer Travel Show in Auckland. In partnership with NZME, VSC ran a Sunshine Savours cooperative print and digital consumer direct campaign. Campaign elements included 41 operator deals placed on the New Zealand Herald website which resulted in more than 8,600 clicks to the VSC website. TEQ /VSC Sunshine Coast Summer Extender integrated campaign to attract direct bookings for members and event organisers. Campaign results media value delivered 18:1 return ratio across digital and radio platforms. Investment of $15,000 spend delivered $276,277 in media value and reached 2.2 million potential travellers across all NZME platforms. TEQ/VSC /Air New Zealand Sunshine by Lunchtime direct flights campaign to raise awareness and increase bookings on the direct flights (7 Jul 29 Oct), resulting in 29% increase in passenger growth in bookings versus same time the previous year. VSC coordinated New Zealand Roadshow with 13 Sunshine Coast operators to Auckland, Christchurch and Wellington. Attendance at Queensland on Stage to undertake front line training with 80 leading agents and hosted a post familiarisation visit to region. UK AND EUROPE VSC through the ANC partnership and in conjunction with TEQ promoted the Sunshine Coast through the following campaigns: East West Travel campaign (France). Australie a la Carte campaign (France). I know just the place UK digital and print campaigns with tour operators Freedom Australia, Austravel, Dial-A-Flight and Trailfinders. The campaign was highly successful in reach and exposure with 127% over-delivery of creative viewed by 7.2 million users across 10.9 million impressions. Additional media exposure was valued at 25,000. Explorer Fernreisen/Cathay Pacific campaign (Germany). DERTOUR campaign (Germany). 10 VISIT SUNSHINE COAST ANNUAL REPORT 2016 / 2017

13 FOUR WHEEL DRIVE, RAINBOW BEACH VSC attended the following missions: FTI Roadshow four cities meeting with 300 agents (Germany). Queensland on Tour (QOT) Europe - VSC attended this key training event meeting one-on-one with 60 leading European Product Managers from France, Italy and Germany plus agent training workshops with approximately 180 front-line sellers. QOT UK/Nordic - VSC showcased the Sunshine Coast to 21 UK Product Managers and Inbound Tour Operator (ITO) representatives, plus 12 Nordic Product Managers and 30 Nordic agents to increase market share. ASIA VSC attended Corroboree EAST to meet with 300 Aussie Specialists from Greater China, Japan, South Korea, India, Malaysia, Indonesia and Singapore and secure business. VSC together with TEQ, and ANC partners hosted a dedicated Singapore Showcase for approximately 50 leading agents from Singapore and Malaysia, plus a VIP cocktail function attended by key distribution partners, media, airline partner Scoot and Tourism Australia. VSC attended the TEQ organised QOT Greater China, Guangzhou a trade event meeting with 200 leading Chinese Agents. Singapore Airlines/VSC digital Facebook canvas campaign commenced in June 2017 to leverage the launch of the four daily Singapore-Brisbane service starting in August NORTH AMERICA VSC partnered with the Goway/Air New Zealand Go beyond the ordinary campaign to increase destination awareness and drive bookings from USA and Canada. VSC also partnered with Australia Zoo as premier sponsor at the inaugural Steve Irwin Gala Dinner in LA. ADDITIONAL GLOBAL TRADE MARKETING ACTIVITY Australian Tourism Exchange was attended by 24 Sunshine Coast operators representing the region at Australia s largest travel show with dedicated Sunshine Coast booths. VSC promoted the region to 180 international travel buyers from both key western and eastern target markets. VSC in partnership with ANC marketing partners and 25 operators and destination marketing partners showcased the combined regions to leading Australian based key inbound distribution partners with an inbound roadshow held in Sydney, Melbourne and Brisbane. International Trade Educational Visits VSC supported 19 international trade educational visits welcoming close to 160 trade partners to the region during the 2016/2017 period from key inbound source markets. 2016/2017 INTERNATIONAL VISITORS NEW ZEALAND 71,000 UNITED KINGDOM 58,000 GERMANY 36,000 UNITED STATES 19,000 ASIA 21,000 SCANDINAVIA 15,000 CANADA 13,000 VISIT SUNSHINE COAST ANNUAL REPORT 2016 /

14 ASIA PACIFIC INCENTIVES AND MEETINGS EXPO BUSINESS EVENTS During 2016/2017, Business Events Sunshine Coast (BESC) delivered a number of marketing events and bids to promote and grow the Sunshine Coast as a viable destination for business events. BUSINESS EVENTS LEAD MANAGEMENT AND DISSEMINATION During 2016/2017, BESC distributed 55 leads to members valued just under $11 million. Following consultation with members, BESC now operates a streamlined lead process collecting important event data and generating monthly lead status reports for all members and stakeholders. BUYER ENGAGEMENT: FAMILIARISATIONS AND TRADE SHOWS Convene Queensland trade show, Brisbane. Australian Tourism Exchange (ATE), Sydney. Asia Pacific Incentives and Meetings Expo (AIME), Melbourne. Pacific Area Incentives and Conference Expo (PAICE), Auckland. Sunshine Soiree, Brisbane. Office Professionals Breakfast, Brisbane. Professional Conference Organisers Association Conference, Brisbane. ConveneQ 2016 Sunshine Sojourn familiarisation. SUCCESSFUL BIDS AND SPONSORED CONFERENCES BESC working in partnership with SCC, has been successful in securing business for the region including: Australian Macadamia Society Conference (AMS), The Events Centre Caloundra. Australian Cruise Association Conference, Mantra Mooloolaba Beach. Australian Society of Travel Writers, Novotel Twin Waters Resort. DRILL 2017, Novotel Twin Waters Resort. PGA Expo, Novotel Twin Waters Resort. The Australian Event Awards was announced in May 2016, to be held on the Sunshine Coast from The Awards took place at Novotel Twin Waters in 2016 and will return in 2018 while also being held at The Events Centre, Caloundra in The bid was also backed by SCC with additional support from Qantas and airport transfer service Con-X-ion. 12 VISIT SUNSHINE COAST ANNUAL REPORT 2016 / 2017

15 GUIDED BUSH FOOD TOURS COLLATERAL PRODUCED Business Events Meeting Planners Guide 2017/2018. DIGITAL Established presence on LinkedIn. Digital campaign promoting Business Events Meeting Planners Guide 2017/2018 launched at AIME in early TRADE MEDIA ADVERTISING Micenet. MeetingNewz City to Coast supplement. MeetingNewz PAICE Preview. What s in your backyard? networking and product development events. This thrice-yearly information-sharing and networking event continues to be a valuable event for BESC members and offers an opportunity for participants to showcase their venue, activity or service to other members and develop relationships with like-minded businesses in the region. RESEARCH, REPORTING AND GOVERNANCE BESC contribute regional data to the following: 2016/2017 Queensland Business Events Survey. Association of Australian Convention Bureaux (AACB) Market Intelligence Project. AACB Operations Survey. INDUSTRY DEVELOPMENT During the past year, BESC attended the Australian Association of Convention Bureau (AACB) Annual Conference and the Professional Conference Organisers Association Conference. In addition, BESC held a Business Events Ready workshop for members and one Destination Marketing Company (DMC) operator familiarisation to the Sunshine Coast Hinterland. VISIT SUNSHINE COAST ANNUAL REPORT 2016 /

16 PETER KURUVITA, FOOD TRAIL LAUNCH PR AND COMMUNICATIONS VSC PR and Communications utilised a full suite of communication strategies in 2016/2017, with consistent messaging emphasising the 50th anniversary of the naming of the Sunshine Coast. Support was provided for the industry; from marketing campaigns, business events and member stories through to increasing share of local voice to build community recognition of VSC and the value of the tourism economy. MEDIA VALUE To the end of June 2017, VSC generated and recorded a media value or advertising value equivalency of $23.4 million across leisure, corporate and business events. To compare, in 2015/2016 VSC generated $20.8 million in media value. FAMILIARISATIONS Bringing targeted media to experience the destination first hand is one of the most effective ways to gain exposure or advocacy for the Sunshine Coast. During 2016/2017, VSC coordinated and hosted 65 media comprising a 50/50 mix of traditional outlets and digital influencers. BROADCASTS During the past year, VSC has coordinated and assisted with filming and broadcasts with Sunrise weather crosses in Rainbow Beach, Eumundi, Coolum and Mooloolaba (in conjunction with IRONMAN 70.3). VSC also worked with the TODAY show on weather crosses in Cotton Tree and Caloundra and planning for a full broadcast to be held in conjunction with SCC as part of the 50th birthday celebrations. VSC also assisted with pitching and securing additional coverage with Queensland Weekender, Great Day Out, Fishing Australia, Peter Kuruvita Coastal Kitchen, Luke Nguyen and everywherek Korean travel program recording two episodes. It s estimated this particular program alone attracted an audience of more than 1.5 million across the two screenings. PR HIGHLIGHTS Working with BESC, VSC secured the Australian Society of Travel Writers Convention, as announced in August The event will attract up to 150 travel writers from around the country. Partnership announcement and media event with Mantra Group. Announcement of food trail launch by Tourism and Major Events Minister Kate Jones at signature Sunshine Coast industry function followed by official media launch by celebrity chef, Peter Kuruvita in Mooloolaba. 14 VISIT SUNSHINE COAST ANNUAL REPORT 2016 / 2017

17 MOUNT COOLUM INDUSTRY DEVELOPMENT VSC is committed to build tourism industry competence and support members to develop appropriate products, hero experiences, events and icons that align to the region s brand pillars; contemporary beach culture, wonders of nature, innovative food and produce, immersive encounters and exhilarating events. Throughout the year, VSC met and assisted a number of new and developing attraction, tour and accommodation products with planning, letters of support, research and guidance. A key activity of VSC s industry development program has been to offer members a wide range of programs that deliver relevant and comprehensive workshops in key areas of focus including digital, events, service and business capability. During the past year, 22 workshops were held with over 500 members and industry in attendance. The TDDI program of workshops during 2016/2017 covered the following key areas: Digital Sunshine Coast Distribution Strategies to Grow Profit Content Marketing Social Media for Business Australian Tourism Export Council (ATEC) KITE International Ready program (included two dedicated workshops with five Sunshine Coast operators selected to undertake the mentoring program). Tourism Award Ready and Accreditation Events Bootcamp. Additional workshops and programs delivered by VSC focused on: Working with key industry bodies such as Queensland Tourism Industry Council (QTIC) and the Department of Tourism, Small Business and the Commonwealth Games, VSC secured funding via the Tourism Demand Driver Infrastructure (TDDI) program. Leveraging from Cruise Ships Google Analytics and SEO Customer Mapping Journey Harness the power of digital content. VSC also worked with key sub-regional partners to deliver a range of targeted workshops to enable the industry to drive tourism demand, boosting local attractions and businesses that depend on them. This will continue to be a focus moving into 2017/2018. VISIT SUNSHINE COAST ANNUAL REPORT 2016 /

18 EVENTS AND CRUISE EVENTS Events continued to be a key focus for VSC during 2016/2017 working closely with both TEQ, SCC and members to drive tourism benefits around the extensive calendar of activity and strengthening the region s image as a world class destination for events. VSC provided marketing support for over 50 major events and 15 member events during 2016/2017. Combined, these events brought in close to 125,000 participants and supporters from outside the region and were estimated to deliver $60 million of economic contribution into the region. Following the successful World is Coming events marketing activation during 2016, VSC in conjunction with SCC launched a new marketing campaign promoting the diverse range of major events hosted on the Sunshine Coast in early 2017, under the Come to life tagline and reflecting the exhilarating events brand pillar. The campaign featured television and radio advertisements, digital and social media activation and a 54 page major events guide with My Weekly Preview including 100,000 copies distributed into Toowoomba and Brisbane. The joint campaign was activated in the Sunshine Coast region and in key drive markets. VSC also supported the establishment of the first regional based netball franchise, the Sunshine Coast Lightning, who won the national competition in their inaugural year. To leverage the success of the team and profile of its players, VSC produced a content video featuring Caitlin Bassett (Lightning and Australian Diamonds Player) which was promoted on Facebook and featured a 30 second version television commercial during the Grand Final broadcast in both Sydney and Brisbane markets. Results included a national television audience of 447,000 and the Facebook post generated over 15,000 organic views. CRUISE VSC recognises the importance of cruising as one of the fastest growing tourism sectors in Australia, which is why our organisation in partnership with TEQ and SCC has identified supporting the cruise sector as part of our tourism strategy. Regional ports are becoming increasingly critical to the growth of the cruise tourism sector in Australia. The Sunshine Coast is a relatively new offering, but in a short period of time has proven to be a popular destination for cruise itineraries. During 2015/2016, VSC volunteers and members welcomed seven cruise ships valued at $1.2 million dollars. Over the past year, this has steadily increased to nine cruise ships and a total of 40,000 passengers, growth of 28.6%. Further to this and from recent research conducted by TEQ, the average spend per passenger is estimated at $269 per day. Research also indicates passengers who have a pleasurable experience during a stopover are likely to talk about the experience and return to the destination for a longer, dedicated visit in the future, providing longer term benefits. Fittingly, during 2016/2017, BESC secured the right to hold the annual Australian Cruise Association Conference on the Sunshine Coast in September /2017 EVENTS DATA 2016/2017 CRUISE DATA 50+ EVENTS 125,000 PARTICIPANTS $60 MILLION 16 VISIT SUNSHINE COAST ANNUAL REPORT 2016 / 2017

19 PACIFIC PEARL CRUISE SHIP VISIT SUNSHINE COAST ANNUAL REPORT 2016 /

20 PUMICESTONE PASSAGE 18 VISIT SUNSHINE COAST ANNUAL REPORT 2016 / 2017

21 VIC VOLUNTEER WEEK BREAKFAST VISITOR INFORMATION CENTRES The past year has been busy for the Visitor Information Centres (VICs), supported by two VIC Ambassador Coordinators. Approximately 320 volunteer ambassadors contribute to the community across eight accredited VICs, which are open seven days a week, throughout the year. The volunteers serviced over 136,000 visitors across the centres located in Caloundra (Bulcock Street and Caloundra Road), Glass House Mountains, Montville, Mooloolaba, Maroochydore, Sunshine Coast Airport and Coolum. In addition, and working in partnership with SCC, a mobile VIC caravan was procured and volunteers together with TAFE students welcomed nine cruise ships and provided a pop-up presence at major events and conferences throughout the region. Another key focus during the period was to improve local knowledge through group training and familiarisations including: The largest annual trade show to date connecting over 200 volunteers from VSC centres, Brisbane, Gympie Noosa, Maleny and Kandanga (Mary Valley) with over 100 local tourism operators. Coordination of 24 familiarisations with members throughout the region including a preview of the new Mary Cairncross Discovery and Interpretive Centre. Quarterly morning tea information sessions were held at the Glass House Mountains VIC to connect ambassadors and members. Joint celebration function with SCC for 50 years and volunteer week was attended by 180 volunteers. The first VSC networking night ever held at a VIC, was staged at the Glass House Mountains centre in conjunction with Hinterland Tourism. Although the world is changing to take advantage of digital platforms, VICs still remain a cornerstone to the visitor experience and expenditure, with one-on-one advice available from the friendly, knowledgeable and dedicated volunteer ambassadors. 2016/2017 VISITORS SUNSHINE COAST AIRPORT 22,464 BULCOCK 20,839 COOLUM 8,946 CALOUNDRA 8,455 MAROOCHYDORE 10,397 MONTVILLE 22,065 MOOLOOLABA 16,292 GLASS HOUSE MOUNTAINS 26,569 VISIT SUNSHINE COAST ANNUAL REPORT 2016 /

22 LAKE COOTHARABA, NOOSA EVERGLADES 20 VISIT SUNSHINE COAST ANNUAL REPORT 2016 / 2017

23 ANNUAL FINANCIAL REPORT CONTENTS Directors Report for the year ended 30 June Auditor s Independence Declaration 27 Statement of Financial Position as at 30 June Statement of Profit or Loss and other Comprehensive Income for the year ended 30 June Statement of Cash Flows for the year ended 30 June Statement of Changes in Equity for the year ended 30 June Notes to the Financial Statements for the year ended 30 June Directors Declaration 47 Independent Auditor s Report 48 VISIT SUNSHINE COAST ANNUAL REPORT 2016 /

24 DIRECTORS REPORT FOR THE YEAR ENDED 30 JUNE 2017 The Directors present their report together with the financial report of Sunshine Coast Destination Limited (SCDL) for the financial year ended 30 June 2017 and the Auditor s report thereon. Directors (Left to right) Back: Philip Hart, John Hall, Rodger Powell, Mark Skinner. Front: Ashley Howden, Sarah Pye, David Ryan, Fraser Green. The Directors of the company at any time during or since the end of the financial year are: Directors in office at the reporting date: Name and qualifications Experience and special responsibilities Mr David Ryan AO, FAICD, FCPA, BBus Chairman Type of Director Skill-Based Experience Appointed Director in Special Responsibilities Member of Audit and Risk Committee Member of Nomination and Remuneration Committee Mr Mark Skinner MBA, GAICD Director and Deputy Chairman Type of Director Skill-Based Experience Appointed Director in Reappointed in Special Responsibilities Member of Digital Committee Mr Fraser Green Director Type of Director Elected Experience Appointed Director in Reappointed in Special Responsibilities Chairman of Digital Committee Member of Nomination and Remuneration Committee Mr John Hall BCom, BEcon, MBA, AAUQ, FAICD Director and Company Secretary Type of Director Skill-Based Experience Appointed Director in Reappointed in Special Responsibilities Chairman of the Audit and Risk Committee. 22 VISIT SUNSHINE COAST ANNUAL REPORT 2016 / 2017

25 DIRECTORS REPORT CONTINUED FOR THE YEAR ENDED 30 JUNE 2017 Name and qualifications Experience and special responsibilities Mr Philip Hart Director Type of Director Elected Experience Appointed Director in Special Responsibilities Member of Audit and Risk Committee Member of Nomination and Remuneration Committee Mr Ashley Howden Director Type of Director Skilled Experience Appointed Director in Special Responsibilities Member of Digital Committee Mr Rodger Powell FAICD, FAIM Director Type of Director Skill-Based Experience Appointed Director in Reappointed in Chairman of Nomination and Remuneration Committee Ms Sarah Pye Director Type of Director Elected Experience Appointed Director in Special Responsibilities Member of Digital Committee Directors ceasing to hold office during the financial year: Mr Grant Hunt Dip PE and H, B.Ed, M.Mgt Chairman Type of Director Skill-Based Experience Appointed Director in Resigned in Special Responsibilities Member of Nomination and Remuneration Committee Mr Ian McNicol Director Type of Director Skill-Based Experience Appointed Director in Resigned in Special Responsibilities Chairman of the Audit and Risk Committee Further details on the Directors relevant experience, and business interests, can be found at: Company Secretary Mr John Hall is the Company Secretary. VISIT SUNSHINE COAST ANNUAL REPORT 2016 /

26 DIRECTORS REPORT CONTINUED FOR THE YEAR ENDED 30 JUNE 2017 Directors Meetings The number of Directors meetings and number of meetings attended by each of the Directors of the company during the financial year are: Director No. of full meetings of directors No. of ARC meetings No. of Digital meetings A B A B A B Mr Grant Hunt Mr Ian McNicol Mr John Hall Mr Rodger Powell Mr Fraser Green Mr Mark Skinner Mr David Ryan Mr Philip Hart Ms Sarah Pye Mr Ashley Howden A = Number of meetings attended B = Number of meetings eligible to attend Audit and Risk Management Committee Meetings The Audit and Risk Management Committee (ARC) comprises John Hall as Chairman, David Ryan and Philip Hart. The meetings are attended by the company s Chief Executive Officer (CEO) and Director of Corporate Services. The purpose of the Committee is to assist the Board with its responsibilities as they relate to: - The financial reporting process; - Risk management; - The maintenance of internal controls and accounting systems; and - Corporate governance. Digital Committee Meetings The Digital Committee comprises Fraser Green as Chairman, Mark Skinner, Sarah Pye and Ashley Howden. The meetings are attended by the company s CEO, Marketing Manager and Digital Marketing Manager. The committee s purpose is to assist the Board with its responsibilities as they relate to: - SCDL digital strategy; and - Digital supplier management plan. Nomination and Remuneration Committee Meetings The Nomination and Remuneration Committee comprises Rodger Powell as Chairman, Fraser Green, David Ryan and Philip Hart. The committee s purpose is to assist the Board with its responsibilities as they relate to: - Culture and Diversity; - Performance and Remuneration; - Succession, Nominations and Recruitment; and - Induction and Continuing Development. 24 VISIT SUNSHINE COAST ANNUAL REPORT 2016 / 2017

27 DIRECTORS REPORT CONTINUED FOR THE YEAR ENDED 30 JUNE 2017 Principal Activities The principal activity of the Company is to advance the promotion and development of tourism within the Sunshine Coast region, which encompasses the combined local government areas of the Sunshine Coast Council, Noosa Council and Gympie Regional Council. There were no significant changes in the nature of the activities of the company during the year. Strategic Objectives The company s objective is to grow the contribution of tourism to the Sunshine Coast regions economy by: 1. Promoting the region and building destination awareness within Australia and international markets to drive demand and grow visitor nights and yield; 2. Expanding digital presence through innovative online and social media strategies; 3. Being the sought after partner of key tourism industry stakeholders; 4. Building an engaged and active membership base; 5. Strengthening existing and developing new strategic partnerships to grow funding and resources; 6. Assisting industry to: improve service quality and supply, develop new product offerings and refurbishing existing products; 7. Lobbying and influencing relevant parties to develop improved visitor access to the region. Dividends SCDL is a company limited by guarantee. Accordingly, no dividends were paid or declared by the company during the financial year. Corporate Governance Statement Responsibilities The Board of Directors is responsible to the members for the performance of the company in both the short and the long term and seeks to balance these sometimes competing objectives in the best interests of the company as a whole. The functions of the Board include: - Review and approval of corporate strategies, the annual budget and financial plans; - Monitoring organisational performance and the achievement of the company s strategic goals and objectives; - Monitoring financial performance including approval of the annual financial reports and liaison with the company s Auditors; - Appointment and assessment of the performance of the CEO; - Establishing effective management processes and approving major corporate initiatives; - Enhancing and protecting the reputation of the company; - Identifying significant risks facing the company and implementing adequate controls, monitoring and reporting mechanisms; and - Reporting to members. VISIT SUNSHINE COAST ANNUAL REPORT 2016 /

28 DIRECTORS REPORT CONTINUED FOR THE YEAR ENDED 30 JUNE 2017 Board Members Details of the members of the Board are set out in the Directors report under the heading Directors. The Board operates in accordance with the principles set out in the company s constitution, including: - The Board must comprise of a majority of Skill-Based Directors and have a minimum of three Elected Directors, as such there must be a minimum of seven and a maximum of eleven Directors. The Board currently comprises eight members. - The Chairman of the Board is appointed by the Board. Likely Developments The company will continue to implement strategies to increase visitation to the Sunshine Coast and achieve its goals. This includes continued engagement with its members, key stakeholders and by targeting new strategic partnerships. Lead Auditor s Independence Declaration The lead Auditor s Independence Declaration is set out on page 27 and forms part of the Directors report for the financial year ended 30 June This report is made with a resolution of the Directors. David Ryan, Chairman Dated at Marcoola this day 23rd of October VISIT SUNSHINE COAST ANNUAL REPORT 2016 / 2017

29 AUDITOR S INDEPENDENCE DECLARATION AUDITOR S INDEPENDENCE DECLARATION UNDER S 307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF SUNSHINE COAST DESTINATION LIMITED ABN I declare that, to the best of my knowledge and belief, during the year ended 30 June 2017 there have been: (i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and (ii) no contraventions of any applicable code of professional conduct in relation to the audit. Poole Audit Group Pty Ltd Level 1, 8 Innovation Parkway BIRTINYA QLD 4575 Donald Glenn Poole Registered Company Auditor No October 2017 VISIT SUNSHINE COAST ANNUAL REPORT 2016 /

30 STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017 Note $ $ Assets Current Assets Cash and cash equivalents 4 1,067, ,149 Trade and other receivables 5 63,672 99,443 Prepayments 6 129,146 69,969 Total Current Assets 1,260, ,561 Non-current assets Property, plant and equipment 7 153, ,559 Intangible assets 8 135, ,520 Total Non-current Assets 289, ,079 Total Assets 1,549,739 1,209,640 Liabilities Current Liabilities Trade and other payables 9 526, ,915 Borrowings 10 24,577 22,587 Provisions 11 77,583 81,728 Total Current Liabilities 628, ,230 Non-Current Liabilities Borrowings 12(c) 26,828 51,405 Provisions 11 17,573 11,492 Total Non-current Liabilities 44,401 62,897 Total Liabilities 673, ,127 Net Assets 876, ,513 Equity Retained surplus 876, ,513 Total Equity 876, , VISIT SUNSHINE COAST ANNUAL REPORT 2016 / 2017

31 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2017 Note $ $ Income Revenue 14 5,591,687 5,077,682 Expenses Administration 877, ,095 Depreciation and amortisation expenses 142, ,760 Interest expense 3,908 9,996 Industry representation 210, ,009 Marketing and promotion 4,096,093 3,519,872 Research 3,727 7,355 Total Expenses 5,334,055 4,857,087 Finance income 17 13,411 21,322 Net Finance income 13,411 21,322 Net surplus/(deficit) before income tax 271, ,917 Income tax expense - - Net surplus/(deficit) for the year 271, ,917 Other comprehensive income - - Total comprehensive income for the year 271, ,917 VISIT SUNSHINE COAST ANNUAL REPORT 2016 /

32 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2017 Note $ $ Cash Flows From Operating Activities Cash receipts from customers 5,682,333 5,304,842 Cash paid to suppliers and employees (5,183,025) (4,711,365) Cash generated from operations 499, ,477 Interest received 13,411 21,322 Interest paid (3,908) (9,996) Net cash generated from operating activities , ,803 Cash Flows from Investing Activities Proceeds from sale of property, plant and equipment - 34,545 Acquisition of property, plant and equipment (87,706) (12,300) Acquisition of intangible assets (104,280) (116,520) Net cash used in investing activities (191,986) (94,275) Cash Flows from Financing Activities Proceeds from borrowings - - Repayment of borrowings (22,587) (75,735) Net cash used in financing activities (22,587) (75,735) Net increase/(decrease) in cash and cash equivalents 294, ,793 Cash and cash equivalents at 1 July 773, ,356 Cash and cash equivalents as at 30 June 4 1,067, , VISIT SUNSHINE COAST ANNUAL REPORT 2016 / 2017

33 STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2017 Retained Surplus Revaluation Surplus Total $ $ $ Balance at 1 July , ,596 Comprehensive Income Profit attributable to the entity 241, ,917 Other comprehensive income for the year Revaluation increment/(decrement) Total Comprehensive Income 241, ,917 Balance as at 30 June , ,513 Comprehensive Income Profit attributable to the entity 271, ,043 Other comprehensive income for the year Revaluation increment/(decrement) Total Comprehensive Income 271, ,043 Balance as at 30 June , ,556 VISIT SUNSHINE COAST ANNUAL REPORT 2016 /

34 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE Reporting Entity Concept Sunshine Coast Destination Limited (SCDL) or the company is a not-for-profit company domiciled in Australia. The address of the company s registered office is 10 Electra Lane, Marcoola Queensland The company primarily is involved in the promotion and development of tourism in the Sunshine Coast region in Queensland. 2. Significant Accounting Policies The accounting policies set out below have been applied consistently to all periods presented in these financial statements. There has not been any change in the company s accounting policies in the past 12 months. 3. Basis of Preparation a) Statement of compliance The financial report is a general purpose financial report which has been prepared in accordance with Australian Accounting Standards (AASBs) (including Australian Interpretations) adopted by the Australian Accounting Standards Board (AASB) and the Corporations Act Because the company is a not-for-profit-entity and AASBs include requirements for not-for-profit entities which are inconsistent with International Financial Reporting Standards (IFRS), the financial report of the company does not comply with all IFRSs and interpretations adopted by the International Accounting Standards Board. The financial statements were approved by the Board of Directors on the date shown on the Directors Declaration. b) Basis of measurement The financial report has been prepared on the historical cost basis, modified, where applicable, by the measurement at fair value of selected non-current assets. c) Functional and presentation currency These financial statements are presented in Australian dollars, which is the company s functional currency. d) Use of estimates and judgements The preparation of financial statements in conformity with AASBs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. e) Foreign currency Transactions in foreign currencies are translated to Australian dollars at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to Australian dollars at the foreign exchange rate on that date. Foreign currency differences arising on translation are recognised in income or expense. f) Financial instruments i) Non-derivative financial assets The company initially recognises loans, receivables and deposits on the date that they are originated. All other financial assets are recognised initially on the trade date at which the company becomes a party to the contractual provisions of the instrument. The company ceases to recognise a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the company is recognised as a separate asset or liability. Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the company has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. 32 VISIT SUNSHINE COAST ANNUAL REPORT 2016 / 2017

35 NOTES TO FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 30 JUNE Basis of Preparation (continued) f) Financial instruments (continued) i) Non-derivative financial assets (continued) The Company has the following non-derivative financial assets: Loans and receivables Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest method, less any impairment losses. Loans and receivables comprise trade and other receivables. Cash and cash equivalents Cash and cash equivalents comprise cash balances and call deposits with original maturities of three months or less. ii) Non-derivative financial liabilities The company initially recognises debt securities issued and subordinated liabilities on the date that they are originated. All other financial liabilities are recognised initially on the trade date at which the company becomes a party to the contractual provisions of the instrument. The company ceases to recognise a financial liability when its contractual obligations are discharged, cancelled or expired. Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the company has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. The company has the following non-derivative financial liabilities: trade and other payables. Such financial liabilities are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are measured at amortised cost using the effective interest rate method. iii) Compound financial instruments The company has not issued any compound financial instruments. iv) Derivative financial instruments, including hedge accounting The company holds no derivative financial instruments. g) Property, plant and equipment i) Recognition and measurement Items of property, plant and equipment are measured at historic cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the asset to a working condition for its intended use and capitalised borrowing costs (see below). Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognised as other income in the statement of comprehensive income. In respect of borrowing costs relating to qualifying assets for which the commencement date for capitalisation is on or after 1 July 2010, the company capitalises borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. Plant and equipment that have been contributed at no cost or for nominal cost are recognised at the fair value of the asset at the date it is acquired. VISIT SUNSHINE COAST ANNUAL REPORT 2016 /

36 NOTES TO FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 30 JUNE Basis of Preparation (continued) g) Property, plant and equipment (continued) ii) Subsequent costs The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The costs of the day-to- day servicing of property, plant and equipment are recognised in expenses as incurred. iii) Depreciation Depreciation is recognised in expenses on a prime cost basis over the estimated useful lives of each motor vehicle and on a diminishing basis for office equipment. Depreciation is recognised on a prime cost basis over the term of lease for leasehold improvements. Diminishing value method is recognised for computer equipment. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the company will obtain ownership by the end of the lease term. The estimated useful lives for the current and comparative periods are as follows: Classification of fixed asset Depreciation rate Office furniture 3-5 years Computer equipment 5 years Motor vehicles 5 years Leasehold improvements 4 years Depreciation methods, useful lives and residual values are reviewed at each reporting date. h) Intangible assets Depreciation is recognised in expenses on a prime cost basis over the estimated useful lives of intangible assets. The estimated useful lives for the current and comparative periods are as follows: Classification of fixed asset Depreciation rate Intangible Assets - Website 3 years i) Leased assets Leases under which the company assumes substantially all the risks and rewards of ownership are classified as finance leases. Upon initial recognition the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Leased assets are depreciated on a straight line basis over their estimated useful lives where it is likely that the entity will obtain ownership of the asset. Lease payment are allocated between the reduction of the lease liability and the lease interest expense for the period. Other leases are operating leases and the leased assets are not recognised on the company s statement of financial position. j) Impairment i) Financial assets A financial asset is assessed at each reporting date to determine whether there is any objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset s original effective interest rate. Losses are recognised in finance costs and reflected in an allowance account against receivables. Interest on the impaired asset continues to be recognised through the unwinding of the discount. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through income. 34 VISIT SUNSHINE COAST ANNUAL REPORT 2016 / 2017

37 NOTES TO FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 30 JUNE Basis of Preparation (continued) j) Impairment (continued) ii) Non-financial assets The carrying amounts of the company s non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists then the asset s recoverable amount is estimated. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. As the entity is a not-for-profit entity, value in use is the depreciated replacement cost of an asset as the future economic benefits of the asset are not primarily dependent on the asset s ability to generate net cash inflows and as the entity would, if deprived of the asset, replace its remaining future economic benefits. An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. Impairment losses are recognised in expenses. Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. k) Employee benefits Provision is made for the company s liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may not satisfy vesting requirements. Those cash outflows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cash flows attributable to employee benefits. Contributions are made by the entity to each employees designated superannuation fund and are charged as expenses when incurred. l) Provisions A provision is recognised if, as a result of a past event, the company has a present legal or constructive obligation that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. m) Revenue i) Services Revenue from services rendered is recognised as income in proportion to the stage of completion of the transaction at the reporting date. The stage of completion is assessed by reference to surveys of work performed. n) Government grants i) Grants received Grants in respect of operating expenses (operating or revenue grants) and grants for the purchase of property, plant and equipment (capital grants) are accounted for, based on the nature of any attached conditions to the grants, as either reciprocal or non-reciprocal grants. Reciprocal grants received Grants where the company is obliged to repay unutilised funds or has a return obligation that implies the existence of a reciprocal transfer are initially brought to account as revenue in the years in which they are received. A liability is recognised to the extent it is probable that the funds are likely to be returned and considering the percentage of completion achieved. VISIT SUNSHINE COAST ANNUAL REPORT 2016 /

38 NOTES TO FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 30 JUNE Basis of Preparation (continued) n) Government grants (continued) ii) Non-reciprocal grants received Grants where the company is not obliged to repay unutilised funds or does not have a return obligation that implies the existence of a reciprocal transfer are brought to account as revenue in the years in which they are received. Contributions Contributions of assets, including the right to receive cash or other forms of assets without directly giving approximately equal value to the other party or parties to the transfer are recognised as revenue at fair value when: the company obtains control of the contribution or the right to receive the contribution, it is probable that the economic benefits comprising the contribution will flow to the company and the amount of the contribution can be measured reliably. o) Lease payments Payments made under operating leases are recognised as expenses on a straight-line basis over the term of the lease. Lease incentives received are recognised as an integral part of the total lease expense, over the term of the lease. Minimum lease payments made under finance leases are apportioned between the finance costs and the reduction of the outstanding liability. The finance costs are allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Determining whether an arrangement contains a lease At inception of an arrangement, the company determines whether such an arrangement is or contains a lease. A specific asset is the subject of a lease if fulfillment of the arrangement is dependent on the use of that specified asset. An arrangement conveys the right to use the asset if the arrangement conveys to the company the right to control the use of the underlying asset. At inception or upon reassessment of the arrangement, the company separates payments and other consideration required by such an arrangement into those for the lease and those for other elements on the basis of their relative fair values. Subsequently the liability is reduced as payments are made and an imputed finance charge on the liability is recognised using the company s incremental borrowing rate. p) Finance income Finance income comprises interest income on funds invested. Interest income is recognised as it accrues using the effective interest method. q) Income tax The company is exempt from income tax under Division (Primary and secondary resources, and tourism) of the Income Tax Assessment Act r) Goods and services tax Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or part of the expense. Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to the ATO is included as a current asset or liability in the statement of financial position. Cash flows are included in the statement of cash flows on a net basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows. s) Presentation of financial statements The company applies revised AASB 101 Presentation of Financial Statements (2007), which became effective as of 1 January As a result, the company presents in the statement of changes in equity all owner changes in equity, whereas all non-owner changes in equity are presented in the statement of comprehensive income. 36 VISIT SUNSHINE COAST ANNUAL REPORT 2016 / 2017

39 NOTES TO FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 30 JUNE Cash and cash equivalents Note $ $ Cash at bank - unrestricted 55, ,726 Call Deposits 1,011, ,423 Cash and cash equivalents 1,067, ,149 Bank overdrafts repayable on demand - - Cash and cash equivalents in the statement of cash flows 1,067, ,149 The company s bankers, the National Australia Bank, holds a bank guarantee of $20,862 in respect to the lease for the company s office at Airport House, 10 Electra Lane Marcoola QLD The company s exposure to interest rate risk and a sensitivity analysis for financial assets and liabilities is disclosed in note Trade and other receivables Note Current $ $ Trade receivables 3,721 68,212 Provision for doubtful debts (1,430) (1,152) GST receivable 61,045 30,504 Sundry debtors 336 1,879 63,672 99,443 a) Provision for doubtful debts Movement in the provision for doubtful debts is as follows: Provision for doubtful debts as at 1 July ,933 Charge for year 1,152 Prior year doubtful debts recouped (2,933) Provision for doubtful debts as at 30 June ,152 Charge for year Written off 1,430 (246) Prior year doubtful debts recouped (906) Provision for doubtful debts as at 30 June ,430 The company s exposure to credit and currency risk and impairment losses related to trade and other receivables are disclosed in note 12. VISIT SUNSHINE COAST ANNUAL REPORT 2016 /

40 NOTES TO FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 30 JUNE Prepayments $ $ Current Prepaid expenses 129,146 69, ,146 69, Property, plant and equipment Cost Office furniture Motor vehicles Office equipment Leasehold improvement Total $ $ $ $ $ Balance as at 1 July , , ,804 44, ,625 Additions ,300-12,300 Disposals 7,000 57,311 4,590-68,901 Balance as at 30 June , , ,514 44, ,024 Balance as at 1 July , , ,514 44, ,024 Additions 1,146 7,064 79,496-87,706 Disposals ,959-32,959 Balance as at 30 June , , ,051 44, ,771 Depreciation and Impairment Balance as at 1 July , , ,364 16, ,046 Depreciation 18,039 38,121 35,666 11, ,847 Disposals 6,847 31,498 4,083-42,428 Balance as at 30 June , , ,947 27, ,465 Balance as at 1 July , , ,947 27, ,465 Depreciation 7,029 23,071 39,134 10,668 79,902 Disposals ,407-28,407 Balance as at 30 June , , ,674 37, ,960 Net book value At 30 June ,685 54,561 68,567 17, ,559 At 30 June ,802 38, ,377 7, , VISIT SUNSHINE COAST ANNUAL REPORT 2016 / 2017

41 NOTES TO FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 30 JUNE Intangibles $ $ Website at Cost 188, ,654 Accumulated amortisation 52, ,134 Accumulated impairment - - Net carrying amount 135, ,520 Website Balance at the beginning of the year 116,520 80,913 Additions 104, ,520 Disposals 22,548 - Amortisation expense 62,529 80,913 Balance at the end of the year 135, , Trade and other payables $ $ Trade creditors 245, ,220 Sundry creditor accruals 50,675 39,611 Other payables owing - - GST liability - - Payroll liabilities 27,440 91,507 Deferred income 202, , , ,915 The company s exposure to currency and liquidity risk related to trade and other payables is disclosed in note Borrowings $ $ Motor vehicle lease(s) 24,577 22,587 24,577 22,587 VISIT SUNSHINE COAST ANNUAL REPORT 2016 /

42 NOTES TO FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 30 JUNE Provisions $ $ Opening balance at the beginning of the year 93,220 79,065 Additional provisions raised during year 130, ,299 Amounts used (128,372) (106,144) Balance at the end of the year 95,156 93,220 Analysis of Provisions $ $ Current: Annual leave entitlements 77,583 81,728 77,583 81,728 Non-Current: Long service leave entitlements 17,573 11,492 17,573 11,492 95,156 93,220 Provisions represent the amounts accrued for employee annual leave and long service leave. The current portion for this provision includes the total amount accrued for annual leave entitlements and the amounts accrued for long service leave entitlement that have been vested due to employees having completed the required period of service. Based on past experience, the company does not expect the full amount of annual leave or long service leave balances classified as current liabilities to be settled within the next 12 months. However these amounts must be classified as current liabilities as the company does not have an unconditional right to defer the settlement of these amounts in the event employees wish to use their leave entitlement. 40 VISIT SUNSHINE COAST ANNUAL REPORT 2016 / 2017

43 NOTES TO FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 30 JUNE Financial Instruments a) Financial risk management Overview The company has exposure to the following risks from its use of financial instruments: Credit risk Liquidity risk Market risk. Risk management policies are established to identify and analyse the risks faced by the company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the company s activities. i) Credit risk Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the company s receivables from customers. Trade and other receivables The company s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the company s customer base, including the default risk of the industry in which customers operate, has less of an influence on credit risk. At the reporting date, there were no significant concentrations of credit risk. The company has established a credit policy under which each new customer is analysed individually for credit worthiness. The company reviews external ratings, when available, and in some cases bank references. The company does not require collateral in respect of trade and other receivables. ii) Liquidity risk Liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due. The company s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient readily available funds to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company s reputation. Typically, the company ensures that it has sufficient cash on demand to meet expected operational expenses for a period of 90 days, including the servicing of financial obligations. This excludes the potential impact of extreme circumstances that cannot reasonably be predicted. iii) Market risk Market risk is the risk of changes in market prices, such as interest rates, affecting the company s assets and income. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. b) Credit risk Exposure to credit risk The carrying amount of the company s financial assets represents the maximum credit exposure $ $ Cash and cash equivalents 1,067, ,149 Trade and other receivables 63,672 99,443 1,131, ,592 VISIT SUNSHINE COAST ANNUAL REPORT 2016 /

44 NOTES TO FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 30 JUNE Financial Instruments (continued) b) Credit risk (continued) The company s maximum exposure to credit risk for trade receivables at the reporting date by geographic region was: $ $ Australia 63,672 99,443 Other regions ,672 99,443 The company s maximum exposure to credit risk for trade receivables at the reporting date by type of customer was: $ $ Government entities 64,411 65,704 Non-Government entities (739) 33,739 Impairment losses The ageing of the company s trade receivables at the reporting date was: 63,672 99, Gross Impairment Gross Impairment $ $ $ $ Current 63,672-95, to 60 days to 90 days - - 1, days and over 1,430 (1,430) 3,780 (1,152) 65,102 (1,430) 100,595 (1,152) c) Liquidity risk Finance leases on motor vehicles of which there are 3 (2016: 3), commencing 2014, are five year leases and all leases have an option to purchase at the end of the lease term. No debt covenants or other such arrangements are in place. 42 VISIT SUNSHINE COAST ANNUAL REPORT 2016 / 2017

45 NOTES TO FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 30 JUNE Financial Instruments (continued) c) Liquidity risk (continued) Payable minimum lease payments $ $ - less than 12 months 24,577 22,587 - more than 12 months but not later than five years 26,828 51,405 - greater than five years ,405 73,992 Trade and other payables $ $ - less than 12 months 526, ,915 - more than 12 months but not later than five years greater than five years , ,915 Capital Commitments $ $ - less than 12 months - 71,880 - more than 12 months but not later than five years greater than five years ,880 d) Currency risk The company has minor exposure to foreign currency risk on some sales and purchases. e) Fair values The fair values of financial assets and liabilities approximate the carrying amounts shown in the statement of financial position. 13. Capital and Reserves Company limited by guarantee The company is a company limited by guarantee. Accordingly, each member of the company undertakes to contribute to the assets of the company in the event of it being wound up while that person is a member or within one year after that person ceased to be a member for payment of the debts and liabilities of the company contracted before that person ceased to be a member and of the costs, charges and expenses of winding up and for adjustment of the rights of the contributors amongst themselves, such amount as may be required, not exceeding $20. VISIT SUNSHINE COAST ANNUAL REPORT 2016 /

46 NOTES TO FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 30 JUNE Revenue $ $ Government and institutional grants - Sunshine Coast Council 4,060,000 3,789,600 - Tourism and Events Queensland 657, ,134 - Other 150,265 52,482 Industry contributions 700, ,119 Sundry other 23,055 62,347 5,591,687 5,077, Personnel expenses Included in expenses for the year are the following personnel expenses: $ $ Salaries and Wages 1,618,108 1,624,176 Superannuation contributions 143, ,152 Increase/(Decrease) in liability for annual leave (4,145) 12,021 Increase/(Decrease) in liability for long services leave 6,081 2,135 1,764,036 1,787, Director fees and related entity payments $ $ Directors Fees 76,794 81,278 Related entity payments 34,465 35,045 Related entity payments include entities that are controlled, or jointly controlled by those Directors individually or collectively. 17. Finance Income $ $ Interest income on bank deposits 13,411 21,322 Net finance income 13,411 21, VISIT SUNSHINE COAST ANNUAL REPORT 2016 / 2017

47 NOTES TO FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 30 JUNE Reconciliation of cash flows from operating activities Cash flows from operating activities $ $ Net surplus (deficit) for the year 271, ,917 Adjustment for depreciation and amortisation 142, ,760 (Profit)/Loss on sale of asset 27,100 (8,073) Operating surplus before changes in working capital and provisions 440, ,604 Change in trade and other receivables 65,621 92,673 Change in prepayments (59,177) 3,704 Change in trade and other payables 59,857 76,667 Change in provisions and employee benefits 1,936 14,155 Net cash from operating activities 508, , Expenses $ $ Auditors Remuneration 14,480 16,775 Rental Expenses on operating leases 92,614 92, Capital and leasing commitments Operating Lease Commitments Non-cancellable operating leases contracted for but not recognised in the financial statements. Payable - minimum lease payments: $ $ Not later than 12 months - 47,596 Later than 12 months but not later than five years - - Later than five years ,596 The property lease commitment is a non-cancellable operating lease contracted for but not recognised in the financial statements and is operating on a month by month basis as at the reporting date as the company finalises its renegotiations of a new agreement. The photocopier lease commitment is a cancellable rental lease agreement contracted for but not recognised in the financial statements and is running on a month by month basis as at the reporting date as the company renegotiates a new agreement. VISIT SUNSHINE COAST ANNUAL REPORT 2016 /

48 NOTES TO FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 30 JUNE Capital and leasing commitments (continued) At 30 June 2017, the Company had no capital commitments (2016: $71,880, completion of new website). 21. Fair Value Measurement The company has measured and recognised certain plant and equipment items at fair value on a non-recurring basis (2012) under Level 2 of the fair value hierarchy. Fair value hierarchy AASB 13: Fair Value Measurement requires the disclosure of fair value information by level of the fair value hierarchy, which categorises fair value measurements into one of three possible levels based on the lowest level that an input that is significant to the measurement can be categorised into as follows: Level 1: Level 2: Level 3: measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; measurements based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; measurements based on unobservable inputs for the asset or liability. The fair value measurement of the plant and equipment took place as a result of the company s acquisition of the Visitor Information Centres from the Sunshine Coast Regional Council in July These assets are currently being depreciated in accordance with their useful life to the company. 22. Economic dependency and going concern The financial statements have been prepared on a going concern basis which contemplates continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business. The ability of the company to continue its operations at current levels is dependent upon future ongoing funding being provided by the funding bodies. The current funding arrangement with the company s major funding body has a term that will require renegotiation to take effect 1st July The Directors believe that the necessary funding will be forthcoming, and that are no current indications that the funding arrangement due for renewal effective 1st July 2018 will not be renewed. 46 VISIT SUNSHINE COAST ANNUAL REPORT 2016 / 2017

49 DIRECTORS DECLARATION FOR THE YEAR ENDED 30 JUNE 2017 Directors Declaration In the opinion of the directors of Sunshine Coast Destination Limited (the company): a) the financial statements and notes, set out on pages 21 to 46 are in accordance with the Corporations Act 2001, including: i) compliance with Australian Accounting Standards; and ii)giving a true and fair view of the company s financial position as at 30 June 2017 and of its performance for the year ended on that date; and b) There are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable. Signed in accordance with a resolution of the Directors: David Ryan, Chairman Dated at Marcoola this day 23 rd October VISIT SUNSHINE COAST ANNUAL REPORT 2016 /

50 INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF SUNSHINE COAST DESTINATION LIMITED ABN Report on the Financial Report Opinion We have audited the financial report of Sunshine Coast Destination Limited ( the Company ), which comprises the statement of financial position as at 30 June 2017, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors declaration. In our opinion, the accompanying financial report of Sunshine Coast Destination Limited is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Company s financial position as at 30 June 2017 and of its financial performance for the year then ended; and (ii) complying with Australian Accounting Standards and the Corporations Regulations Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board s APES 110: Code of Ethics for Professional Accountants ( the Code ) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor s report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Information Other than the Financial Report and Auditor s Report Thereon The directors are responsible for the other information. The other information comprises the information included in the company s annual report for the year ended 30 June 2017, but does not include the financial report and our auditor s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the Company s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or cease operations, or have no realistic alternative but to do so. Auditor s Responsibility Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. 48 VISIT SUNSHINE COAST ANNUAL REPORT 2016 / 2017

51 INDEPENDENT AUDITORS REPORT CONTINUED As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional skepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an audit opinion on the effectiveness of the Company s internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. We communicate with the directors regarding, amongst other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Poole Audit Group Pty Ltd Level 1, 8 Innovation Parkway BIRTINYA QLD 4575 Donald Glenn Poole Registered Company Auditor No October 2017 VISIT SUNSHINE COAST ANNUAL REPORT 2016 /

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