CARDIFF INTERNATIONAL WHITE WATER CENTRE: PERFORMANCE AND DEVELOPMENTS

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1 AGENDA ITEM: CITY AND COUNTY OF CARDIFF DINAS A SIR CAERDYDD ECONOMY & CULTURE SCRUTINY COMMITTEE 29 th SEPTEMBER 2011 CARDIFF INTERNATIONAL WHITE WATER CENTRE: PERFORMANCE AND DEVELOPMENTS Scope for Scrutiny 1. To monitor the performance and achievement of the Cardiff International White Water Centre and appraise the plans for the Surf Rider Centre. Background 2. At the Economy and Culture Scrutiny Committee meeting, held on the 23 rd June 2011, Members agreed the work programme for and resolved to receive a progress report regarding the Cardiff International White Water Centre scheduled for the 29 th September The development of an Olympic standard canoe slalom centre on the International Sports Village (ISV) development site was approved by the Executive at its meeting on 5 th June Outline funding sources for the construction of the centre were also approved at the same meeting. In June 2006 the Executive agreed to International Sports Village (ISV) as the location and in September 2006 the Olympic canoe slalom and white water rafting centre tender process was agreed. 4. Dean & Dyball Civil Engineering were awarded the tender to construct the white water canoe slalom. In terms of the construction, water for the course was impounded from the River Ely. The water is pumped from the impounded area via a reinforced concrete pumping station. This generates the required water flow for the course before discharging back into the impounded area. The course is 254 metres long, 12.5 metres wide and falls 4.5 metres over its

2 full length (at a gradient of 1:5). Four pumps propel water up to the start of the course at the rate of up to 16 cubic metres per second. The canoeists emerge at the bottom of the course in the retained water pool (RWP) ready to paddle onto a conveyor belt which will lift them and their boats back up to the top The centre opened in 26 March 2010, after taking two years to build the 13.3m venue, which is the first on-demand white water centre in the UK. The facility was designed by French company, HydroStadium, who designed similar courses for the Sydney, Athens and Beijing Olympics. 6. Cardiff International White Water offers canoeing and white water rafting facilities ranging from starter to recreational, through to full international competition use. Other activities on offer include: Kayaking Hydro speed Hot-dogging 7. The flat water area offers a range of paddle sports the centre offers: annual membership packages for hen and stag parties activity breaks corporate packages. 8. The centre has also attracted a number of national and international sporting events and has just been selected by the International Canoe Federation and the British Canoe Union to host the 2012 World Cup Slalom. It will also be used as a training venue as identified by LOCOG for the 2012 London Olympics there have been many site visits but strong expressions of interest from China, Russia, Australia, Slovkia, and Romainia. Alongside other national competitions such as the British Free style, British and Welsh Slalom junior and senior events the centre also supports local events to help develop water sports. 1

3 9. Table 1 outlines the financial Outturn Position for 2010/11 Income Sponsorship (73,634) Sales (4,302) Fees & Charges (615,945) Rents (6,250) Catering (8,719) Cardiff Harbour Authority (300,000) Total Income (1,008,850) Expenditure Employees 539,123 Premises 178,787 Transport 13,924 Supplies & Services 106,667 Support Charges 28,050 Total Expenditure 866,651 Gross Operating Surplus (142,199) Loan Repayments 302,834 Net Operating Deficit 160,635 Table 1: Financial Outturn Position 2010/ The Cardiff International White Water activity reported an operating surplus of 142,199 for the year with income levels continuing to improve as the year progressed. This takes into account the 145,000 additional budget allocation which was provided to the service area during the year in order to reflect the exceptional nature of the Non Domestic Rate charge for the facility and the fact that this is subject to appeal. 11. As part of the funding arrangements for the facility the Council provided loan funding of 3.4 million on an invest to save basis, to be repaid from operating

4 surpluses. In 2010/11 the loan repayment and interest charges amount to 302,834 with the repayments being spread over twenty five years. After taking into account the projected operating surplus of 142,199 this left a shortfall in the current year of 160,635. It is anticipated the overall repayment will be achieved in future years as the level of operating surplus increases. Under the terms of the agreement with the Welsh Government, any additional surplus generated after the repayment of the Council loan charges must be ring fenced and retained within the Cardiff Harbour Authority Account. 12. The graph below highlights the monthly income generation for the first year of operation ( ) Monthly Income Generation 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 April May June July August September October November December January February March 13. Performance this financial year indicates that the centre has attracted an extra 2,574 visitor sessions and generated an extra 37, income compared with the first quarter last year. First Quarter Visitor Sessions Comparison 2010/11 April June = 6, /12 April June = 8,577 First Quarter Generated Income Comparison 2010/11 April June = 167, /12 April June = 205, July and August visitor sessions have also increased by 1,036

5 (income for this period is pending) 2010/11 July August = 6, /12 July August = 7, The centre has also established a high standard of client and customer care and has a 96 to 100% customer satisfaction record and has had some impact in raising the Centre s profile. The continued marketing of the facility through Visit Britain, Visit Wales, Cardiff & Co and on site multi media Website and Facebook has provided a range of international, national and regional exposure which include: a. National Geographic visit and presentation by photographer Gerry Moffet generating international multi media exposure. b. National BBC Breakfast TV Mike Bushell sporting challenges, c. BBC Children s TV Live and Deadly and Deadly 60 series with Steve Backshore, d. BBC Question of Sport mystery guest, e. Local BBC and ITV live weather broadcasts, f. S4C Boomerang children s activity show, g. S4C Jonathon 10 Sporting Challenge, h. S4C Pobwl Cym, i. S4C Jonathan Jonathan Davies Chat show with referee Nigel Owens, Avanti a marketing and production company. j. Editorials and images in national broad sheet news papers, including the Times, Telegraph and the Observer, k. National and international magazines include National Geographic Traveller, Men s Health, Red handed and numerous regional coverage in similar media and magazines with editorials and images. 15. In terms of awards Cardiff International White Water (CIWW): Has been highly commended at the National Canoe and Kayaking magazine awards, Was the winner of Best Visitor Experience' at the National Tourism Awards (Visit Wales Awards),

6 Was designated as a British Canoe Union and Canoe Wales Paddlesport High Performance Centre. Including Coach Education Has achieved European Rescue 3 provider Status for water rescue. Endorsed by partners such as the RNLI, National Fire & Rescue Authorities and regional NHS Heart teams (hazardous area response teams), Has a Construction Excellence Award, Has a Conservation and Restoration RICS award. Surf Riding Centre 16. Indoor Surf Rider Centres utilise sheet wave technology that allows riders to surf on a high-energy film of water. Indoor Surf Rider Centres have had a rapid global expansion over recent years that have been fostered by technological innovations and new commercial initiatives. In 1991, the American Thomas Lochtefeld invented the so-called FlowRider, an invention which made a new board sport possible, christened as flowboarding. The FlowRider first came into use in New Braunfels, Texas, in Within just a few years, Miyazaki (Japan) and Bo (Norway) followed suit. The FlowRider is now being used across the globe, predominantly in the USA and Europe, but also in Japan, Korea, China, Saudi Arabia and South Africa. Source :

7 17. Notable surf rider facilities across Europe are the International Standard Canoe Slalom Centre in Zootermeer, (Holland being particularly successful in combining these two activities in one location) and Bedford s Flow House which was the first operation within the UK (more information on the Flow house and flow riders can be viewed at or ) 18. On the 7 th April 2011 the Executive considered the Revised Agreement for Cardiff Harbour Authority Function report that highlighted the arrangements and budgetary arrangements available from the Welsh Government to enable the Council to continue to undertake the Harbour Authority function. The report also provided details of the Enhancement Fund balances and the potential to develop an indoor surf facility on the site of Cardiff International White Water Centre. 19. The report stated that the development of an indoor surf facility in Cardiff would expand the water activity offer in Cardiff Bay and the International Sports Village in particular. It would increase the profitability of this centre by providing a further sporting/leisure attraction economically by utilising the existing changing rooms, administration and other support facilities on this site. The estimated cost of this development is approx 2m including design and supervision fees and external works, this includes the realignment of the access road, canoe drop off area and improved external paved areas and could therefore be funded from the transferred Enhancement Fund balances over the next two years. This project would also be included in the Council s capital programme. 20. The Executive agreed to the development of an indoor surf facility within Cardiff International White Water using Enhancement Fund balances transferred to the Council through the revised Harbour Authority agreement.

8 Way Forward 21. Councillor Howells, Executive Member for Sport, Leisure and Culture will provide a short statement Simon Howell, Operational Manager Cardiff Harbour Authority, and Chris Hadfield Cardiff International White Water Manager have been invited to attend to answer Members questions and give a presentation that details progress made in the last year and the developments underway regarding the surf rider centre. Legal Implications 22. The Scrutiny Committee is empowered to enquire, consider, review and recommend but not to make policy decisions. As the recommendations in this report are to consider and review matters there are no direct legal implications. However, legal implications may arise if and when the matters under review are implemented with or without any modifications. Any report with recommendations for decision that goes to Executive/Council will set out any legal implications arising from those recommendations. All decisions taken by or on behalf the Council must (a) be within the legal powers of the Council; (b) comply with any procedural requirement imposed by law; (c) be within the powers of the body or person exercising powers of behalf of the Council; (d) be undertaken in accordance with the procedural requirements imposed by the Council e.g. Scrutiny Procedure Rules; (e) be fully and properly informed; (f) be properly motivated; (g) be taken having regard to the Council's fiduciary duty to its taxpayers; and (h) be reasonable and proper in all the circumstances. Financial Implications 23. The Scrutiny Committee is empowered to enquire, consider, review and recommend but not to make policy decisions. As the recommendations in this report are to consider and review matters there are no direct financial implications at this stage in relation to any of the work programme. However,

9 financial implications may arise if and when the matters under review are implemented with or without any modifications. Any report with recommendations for decision that goes to Executive/ Council will set out any financial implications arising from those recommendations. Recommendations The Committee is recommended to: I. Consider the key issues facing Cardiff International White Water Centre; II. Agree any comments, observations or recommendations regarding the progress made to date and future development; MIKE DAVIES Head of Scrutiny, Performance & Improvement 23 September 2011

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