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Destination NSW

ANNUAL REPORT

2017-2018

Destination NSW

ANNUAL REPORT

2017-2018

DESTINATION NSW ANNUAL REPORT 2017?2018 PAGE 2

The Hon. Adam Marshall MP

Minister for Tourism and Major Events

52 Martin Place

SYDNEY NSW 2000

31 October 2018

Dear Minister,

We are pleased to submit the Annual Report of Destination NSW for the financial year ended 30 June 2018 for

presentation to the NSW Parliament.

The report has been prepared in accordance with the provisions of the Annual Reports (Statutory Bodies) Act 1984, the

Annual Reports (Statutory Bodies) Regulation 2010, the Government Sector Employment Act 2013, the Public Finance

and Audit Act 1983, and the Public Finance and Audit Regulation 2010.

Yours sincerely,

John Warn Sandra Chipchase

Chairman CEO

DESTINATION NSW ANNUAL REPORT 2017?2018CONTENTS PAGE 3

Contents

4 Chairman"s Foreword

5 ORGANISATION

6 About Destination NSW

8 Board Members

11 Organisation Chart 2017-2018

12 CEO"s Report: The Year in Review

16 Financial Overview 2017-2018

17 Destination NSW Performance 2017-2018

24 NSW Tourism Performance 2017-2018

28 Visitor Snapshot: NSW Year Ending June 2018

30 REVIEW

31 Event Development

38 Marketing for Tourism and Events

45 Partnership Programs

50 Regional NSW

62 Communications

68 Corporate Services

70 APPENDICES

71 Destination NSW Senior Executive

72 Human Resources

73 Senior Executive Profile

74 Policies and Programs

75 Corporate Governance

78 NSW Digital Information Security Policy Compliance Attestation

Statement 2017-2018 Financial Year for Destination NSW

79 Internal Audit and Risk Attestation

81 Operations

84 Management Activities

86 Grants

91 Financial Management

93 FI NANCIAL STATEMENTS

94 Destination NSW Financial Statements

123 Destination NSW Staff Agency Financial Statements

140 Index

142 Access

DESTINATION NSW ANNUAL REPORT 2017?2018

Chairman"s Foreword 2017-2018

CHAIRMAN"S FOREWORD PAGE 4

Destination NSW continues to be at the forefront of tourism and major events in Australia. Its delivery in driving tourism and major events and progress made towards achieving the 2020 target are outstanding. The visitor economy in NSW has never been stronger with our State consistently outstripping its rivals. NSW is the most visited State in Australia with the highest level of visitor expenditure. This does not happen by accident and since recently joining the organisation I have been extremely impressed with the work of Destination NSW and its approach to supporting tourism and major events in NSW. Partnerships are a key element of Destination NSW"s operations. From record-breaking deals like the $40 million Qantas Memorandum of Understanding to ground-breaking innovative activities with non-traditional partners, Destination NSW is constantly pushing boundaries to find new ways to drive tourism and major events even further.

The Sydney and NSW Events Calendar comprises the

best event offering anywhere in Australia, consistently delivering world class events across the State. I am honoured to have the opportunity to work with the Board on bids to assist the NSW Government Advisory Committee to secure 10 World Cups in 10 years to ensure that NSW has a strong pipeline of events to maintain momentum and demonstrate to the world that we have the capability to deliver blockbuster events time after time. It is an exciting time for tourism and major events in NSW. The recently published Visitor Economy Industry Action Plan 2030 (VEIAP 2030), outlines the strong framework from which we can build for the future. This includes the ambitious target of tripling overnight visitor expenditure in NSW by 2030 and a dedicated target to grow the visitor economy in rural and regional NSW to make sure that all

of the State benefits from this $40 billion industry.I thank the Hon Adam Marshall MP, Minister for Tourism and Major Events for his support of Destination NSW and the NSW visitor economy and look forward to working with him in the delivery of VEIAP 2030.

As the newly appointed Chairman of Destination NSW, I would like to acknowledge the outstanding contribution of my predecessor, Mr John Hartigan, and in particular his work in leading the Visitor Economy Taskforce in its mid- term review of the Visitor Economy Industry Action Plan. I also acknowledge the efforts of my Deputy Chairman, Mr Russell Balding, for his role in shaping VEIAP 2030 and supporting the Board of Directors. I also express my thanks to the CEO, Sandra Chipchase, who continues to lead Destination NSW to great heights that cements the NSW Government"s support for the visitor economy. Looking ahead, I am proud to be taking on the role of Chairman of Destination NSW at such a significant time. We have a lot of hard work ahead to achieve the goals set for us but I am confident that we have the right team in place to deliver these targets and build on the many achievements and strong foundations set by Destination

NSW thus far.

John Warn

Chairman

Destination NSW

John Warn

Chairman

Destination NSW

ORGANISATION PAGE 5DESTINATION NSW ANNUAL REPORT 2017?2018

Organisation

6 Ab out Destination NSW

8 Bo ard Members

11 Or ganisation Chart 2017-2018

12 CE O's Report: The Year in Review

16 Fi nancial Overview 2017-2018

17 De stination NSW Performance 2017-2018

24 NS W Tourism Performance 2017-2018

28 Vi sitor Snapshot: NSW Year Ending June 2018

The Living Desert and Sculptures, Broken Hill

ORGANISATION PAGE 6DESTINATION NSW ANNUAL REPORT 2017?2018

About Destination NSW

Established under the Destination NSW Act 2011 as the lead Government agency for the NSW tourism and major events sector, Destination NSW"s charter is to achieve economic and social benefits for the people of NSW through the development of tourism and the securing of major events. The establishment of Destination NSW saw the merger of four Government-funded entities - Tourism NSW, Events

NSW, the Homebush Motor Racing Authority and the

Greater Sydney Partnership - into a single entity. As a Public Service Executive Agency, Destination NSW is governed by a Board of Management and is subject to the control and direction of the Minister for Tourism and Major Events. It is principally funded by the NSW Government and is part of a cluster of agencies under the responsibility of the Secretary of the Department of Industry. Role

Destination NSW is responsible for devising and

implementing strategies to grow the State"s visitor economy. Its particular focus is on driving tourism and acquiring and developing major sporting and cultural events for Sydney and regional NSW. In addition, Destination NSW is the major investor in Business Events Sydney with the aim of securing more international conventions, incentive travel reward programs, corporate events and exhibitions for Sydney and regional NSW.

Vision

To make Sydney and NSW one of the world"s most

successful tourism and events destinations.

Mission

To double overnight visitor expenditure by 2020 and maximise the benefits of the visitor economy for NSW.

Strategic Objectives

1. Position Sydney and NSW as world-leading tourism and events destinations

2. Attract and secure high-value major events

3. Build a sustainable events calendar for NSW

4. Increase industry stakeholder and customer engagement

5. Deliver value in partnership/co-operative programs

6. Develop and sustain a high-performance organisation

7. Maximise yield and dispersal from the Visitor Economy

8. Implement the Visitor Economy Industry Action Plan.

The Three Sisters, Blue Mountains, NSW

ORGANISATION PAGE 7DESTINATION NSW ANNUAL REPORT 2017?2018

About Destination NSW CONTINUED

Importance of the Visitor Economy

to New South Wales The term ‘visitor economy" includes businesses and communities that benefit from the direct and indirect economic activity generated through the wide range of initiatives that support the provision of goods and services to overnight visitors including, but not limited to, leisure, business, events, food and wine, arts and cultural, nature and student visitors. The visitor economy contributes $40.5 billion to the State"s economy and supports 171,100 direct jobs. In the year ended June 2018, NSW welcomed $37.3 million visitors and currently leads all Australian States and Territories in terms of visitor numbers, nights and expenditure.

Visitor Economy Industry Action Plan

In December 2012, the Visitor Economy Industry Action Plan (the NSW Government response to the NSW Visitor Economy Taskforce Report) was released supporting the majority of recommendations made by the Taskforce. The Visitor Economy Industry Action Plan outlined the whole-of-Government commitment to the NSW visitor economy and a long-term strategy to achieve the NSW

Government"s target of doubling overnight visitor

expenditure to NSW by 2020.

In September 2017, an industry-led taskforce was

established by the NSW Government to undertake a mid- term review of the Visitor Economy Industry Action Plan. The updated Visitor Economy Industry Action Plan 2030 was released by the NSW Government in August 2018 and contains 34 recommendations to drive the NSW visitor economy to 2020 and beyond. Destination NSW will assist in the implementation of the Visitor Economy Industry Action Plan 2030 and deliver activities that will contribute to the new targets set by the NSW Government of achieving $20 billion in visitor expenditure in rural and regional NSW by 2025, rising to $25 billion by 2030 and tripling overnight visitor expenditure in NSW by 2030.

Working with Industry

Destination NSW works with industry and Government stakeholders to realise its vision of making Sydney and NSW one of the world"s most successful tourism and events destinations. The value of the contribution made by tourism and major events to the economy and local communities is undeniable and by working with industry stakeholders, we can undertake a wide range of activities that increase the profile of Sydney and NSW in key domestic and international markets.

Services

The services offered by Destination NSW include:

• Brand development and management • Strategic partnership programs • Market research and insights • Destination development assistance • Product development advisory service • Market and business development programs • Destination and event marketing • Co-operative marketing and publicity programs • Major event investment, acquisition and evaluation • Event leveraging activities • Regional conferencing • Visitor resources and information • Visual resources - footage and photography • Funding for regional events and tourism activities.

Sydney Harbour during Vivid Sydney

ORGANISATION PAGE 8DESTINATION NSW ANNUAL REPORT 2017?2018

Board Members (2017-2018)

John Warn (Chairman) Russell Balding AO (Deputy Chairman)

Sally LoaneRod McGeoch AOMargaret Jack

Sandra Chipchase (CEO)Simon Draper The Hon. Patricia Forsythe

David Baffsky AO

The Hon. George Souris AM

ORGANISATION PAGE 9DESTINATION NSW ANNUAL REPORT 2017?2018

Board Members CONTINUED

John Warn AFAIM, FCSIA, MAICD (Chairman)

(Appointed 1 July 2018) John Warn was appointed Chairman of Destination NSW in July 2018 - the NSW State Government's lead agency for tourism and major events. Prior to this appointment John had worked across the Retail Property Industry for over 20 years in the Australian and New Zealand market, and most recently served as Group General Manager for Scentre Group (Westfield). In this role John led and had full accountability for over 1,600 employees and 40 shopping centres across Australia and New Zealand. John joined Westfield in November 2010, after seven years in the Senior Executive team at David Jones during the very successful rebuild period from 2003-2010. He has also previously worked in Specialty Retail for a decade and earlier in the banking industry with Westpac. In addition to his executive career, John most recently, held the position of Chairman of Cricket NSW, one of the larger not for profit sporting bodies in Australia. Cricket NSWquotesdbs_dbs9.pdfusesText_15

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