2019-2020 ANNUAL REPORT · The state has done a terrific job of not only ... we undertook the...

2019-2020

ANNUAL REPORT

Tourism and Events Queensland

Tourism and Events Queensland Annual Report 2019-20 2

Letter of compliance

10 September 2020 The Honourable Kate Jones MP Minister for State Development, Tourism and Innovation PO Box 15168 City East Qld 4002

Dear Minister

I am pleased to submit for presentation to the Parliament the Annual Report 2019-20 and financial statements for Tourism and Events Queensland.

I certify that this Annual Report complies with:

• the prescribed requirements of the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2019, and

• the detailed requirements set out in the Annual report requirements for Queensland Government agencies.

A checklist outlining the annual reporting requirements can be found at page 99 of this annual report or accessed at www.teq.queensland.com/annualreport.

Yours sincerely

Brett Godfrey Chair Tourism and Events Queensland

Interpreter service statement The Queensland Government is committed to providing accessible services to Queenslanders from all culturally and linguistically diverse backgrounds. If you have difficulty in understanding the annual report, you can contact us on +61 7 3535 3535 and we

will arrange an interpreter to effectively communicate the report to you. Public availability Copies of the Tourism and Events Queensland annual report are available online at teq.queensland.com/annualreport

Limited printed copies can be obtained by contacting Tourism and Events Queensland. Tel: +61 7 3535 3535 Email: [email protected]

Readers are invited to comment on this report at qld.gov.au/annualreportfeedback

Copyright © (Tourism and Events Queensland) 2020 Published by Tourism and Events Queensland, September 2020 Level 8, Green Square North Tower, 515 St Pauls Terrace Fortitude Valley QLD 4006 Australia teq.queensland.com

ISSN: 2205-992X

http://www.teq.queensland.com/annualreport

mailto:[email protected]

http://www.qld.gov.au/annualreportfeedback

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Table of contents

Letter of compliance 2

Chair and CEO statement 4

About Tourism and Events Queensland 5 Our role and functions 6 Locations 6 Our operating environment 7 Strategic risks 7 Strategic challenges and opportunities 8 Industry performance overview 2019-20 10

Crisis impacts, response and recovery 14 Crisis impacts 14 COVID-19 response and recovery 20 Looking forward 2020-21 23

Our performance 2019-20 24 Queensland Government objectives for the community 24 Objectives and performance indicators 24 Service areas and service standards 25

Strategic priority highlights 2019-20 26 Convert high value travellers from priority markets | Marketing the best address on Earth 26 Maximise the value of Queensland’s events calendar 28 Connect consumers with meaningful and exceptional experiences 29 Grow aviation access and capacity 30 Optimise partnerships 32 High performing organisation 36 Information systems and recordkeeping 39 Efficient business operations 39 Open data 39

Corporate governance 40 Our people 40 Tourism and Events Queensland Board 42 Board committees 43 Internal audit 45 Risk management 45 External scrutiny 45 Government bodies 46

Financial summary 49

Financial statements 51

Tourism and Events Queensland directory 97

Glossary of terms 98

Compliance checklist 99


Chair and CEO statement

The past financial year delivered unprecedented challenges for Queensland’s tourism and events industry - from bushfires, to drought, to a global pandemic. Despite it all we stand united in the knowledge that recovery will be a long journey, but one made easier by us all working together for a better future.

TEQ remains optimistic about the future of the Queensland tourism industry. The state has done a terrific job of not only handling the initial stages of the COVID-19 pandemic but also of keeping case numbers low and slowly mapping its way out of restrictions. As Queensland slowly returns to normality, with an ever-heightened level of vigilance, TEQ has focused its work on recovering from the pandemic, working hand-in-hand with industry and government stakeholders to establish clear guidelines for businesses and event proponents on what planning and documentation are needed to operate safely.

We have seen first-hand the challenges brought on by tourism businesses having to go into hibernation and events having to postpone or cancel, and have marvelled once again at the resilience of this industry as we all tried to work out what markets might return when, how sales and marketing would have to be restructured and how we would all meet new customer expectations. However, we also know that the impacts of COVID-19 will be far reaching and long-lasting, changing the shape of Queensland’s tourism industry into the future.

From a TEQ marketing perspective, we undertook the necessary review of target markets, campaign approaches, budgets and the way we support industry. We launched the ‘Good To Go’ campaign, initially aimed at getting Queenslanders travelling in their own state before expanding it to interstate markets as some borders reopened.

The question of when international travel will return to Australia remains largely unanswered however TEQ has maintained its presence in our key source markets, using the time to engage and educate trade while also inspiring future travellers. We look forward to welcoming back international tourists in the future when it is deemed safe to do so.

During the height of the pandemic, TEQ had teams working to assist multiple Government departments to support the tourism and events industry, including helping to lead and staff a newly formed Tourism Response Team. We continued to produce a series of video and live updates to keep industry informed throughout the crisis and have recently launched a virtual version of our annual Conversations with Industry forums.

We have, as an industry, also used this time to embrace true innovation as COVID-19 reshapes the way people travel and changes what they are looking for in a destination. Already, we have supported industry in embracing new hygiene protocols, in changing the way we deliver experiences and provide accommodation and in considering how events will change in the post-pandemic environment. This is just the beginning as we all work to innovate Queensland’s product offering and aim to exceed consumer expectations.

As ever, the TEQ Board and the entire team remain available and willing to support industry through this time as we continue on our course to recovery.

We have never been more certain that Queensland has what the world now wants. Fresh air, wide open spaces, pristine produce and authentic Indigenous content all underpinned and powered by Queensland’s incomparable tourism and event operators. In the coming months, TEQ will ensure these experiences are promoted in our target markets while also rebuilding our renowned It’s Live! In Queensland events calendar. We all know the positive impact travel has, not only on the traveller but on the destination, and that too will be vital during our recovery.

We look forward to working together as Queensland’s tourism industry rebuilds to not only reach its former heights, but to exceed them as we remind travellers that Queensland is a beautiful place to be.

Brett Godfrey Leanne Coddington Chair Chief Executive Officer Tourism and Events Queensland Tourism and Events Queensland


About Tourism and Events Queensland

Tourism and Events Queensland (TEQ) is the state’s lead tourism marketing, destination and experience development, and major events agency. Our goal is to grow Queensland’s tourism and events industry to foster innovation, drive industry growth and boost visitor expenditure.

Partnerships are central to how we deliver outcomes, collaborating with government, Tourism Australia (TA), Regional Tourism Organisations (RTOs), industry and commercial stakeholders.

This annual report outlines TEQ's progress to deliver objectives and outcomes for the tourism and events industry (refer Our performance 2019-20 on page 24 and Strategic priority highlights 2019-20 on page 26).

Focus in the second half of the financial year shifted to the COVID-19 pandemic response and recovery, with activity across TEQ and government departments supporting the tourism and events industry and rebuilding consumer demand, aviation capacity and the value of Queensland’s events calendar in line with easing restrictions. An overview of TEQ’s response and recovery activities is provided in the Crisis impacts, response and recovery section of this report on page 14.

Figure 1: Overview of TEQ vision, purpose, values, objectives and performance indicators

--Government objectives

for the community

Our Future State: Advanai1g

Queensland's Pn"orities

TEQ objectives

Inspiring the world to experience the best address on Earth

Achieving economic and social benefits for Queensland by growing the tourism and events industry m partnership with industry and Government

We are a consumer-led, experience-focused, dest1nat1on-del1vered organisation that connects people and places like never before through 1nnovat1on and collaboratlon with the tourism and events industry

Create jobs in a strong economy

TEQ contributes to this objective by:

Attracting visitors to Queensland through marketing and promotion; Tourism experience and destination development; Working to identify, attract and promote major events; and Providing support and leadership to Queensland's tourism industry.

Contribute to the Queensland economy

Attract visitors to Queensland, generating OVE

Be a responsive government

TEQ contributes to this objective by:

Working in partnership with other Queensland Government agencies to progress portfolio priorities; and Undertaking research and analysis of the Queensland tourism industry to inform strategic decision making.

Enhance the profile of Queensland

Foster community pride in Queensland

Service delivery measures: Industry outcome measures

• Overnight v1s1tor expenditure, direct and incremental spending, v1s1tors • Economic impact and Job creation to Queensland and direct v1s1tor nights generated by events within the • Total overnight v1s1tor expenditure portfolio • Market share of Australian overnight v1s1tor expenditure (total, leisure

• Publicity and promotional value generated by act1v1t1es and holiday v1s1tors) • Value of collaborative support • Efficient leverage of regional and strategic partnership investment

Lead Together

Guided by the Minister and the board, we are clear on our purpose, direction and priorities, and our team

1s empowered to implement

One Team

We work 1n partnership with our teammates and always act for the

good of the whole

Go Beyond

We are creative, innovative and solutions driven We strive for

continuous improvement and make a difference where 1t really counts

for Queensland

Agile and Responsive

We embrace emerging trends and opportunities To thrive 1n a

compet1t1ve industry environment we are proactive, flexible and adaptable


Our role and functions

Established by the Queensland Government in December 2012, TEQ is a statutory body under the Tourism and Events Queensland Act 2012 (the Act) and part of the portfolio of State Development, Tourism and Innovation1.

The primary functions of TEQ are:

1. to attract international and domestic travellers to travel to and within Queensland through -

a. the promotion and marketing of Queensland; and

b. tourism experience and destination development.

2. to identify, attract, develop and promote major events for the state that -

a. contribute to the Queensland economy;

b. attract visitors to Queensland;

c. enhance the profile of Queensland; and

d. foster community pride in Queensland.

3. to work collaboratively with the department and other public sector units and Queensland tourism industry participants to identify opportunities to increase tourism and travel to and within Queensland; and

4. to conduct research into, and analysis of, tourism in Queensland.

Locations TEQ’s Head Office is located at 515 St Pauls Terrace, Fortitude Valley with some staff based throughout Queensland and internationally. TEQ delivers a range of initiatives in partnership with Queensland’s 13 RTOs through the structure outlined on page 41.

Global reach

In order to deliver on organisational outcomes, TEQ works in key strategic markets around the world. During 2019-20, TEQ actively promoted Queensland within Australia and in 13 international markets: North America; mainland China; Hong Kong SAR; Taiwan region; Europe including the Nordic; India; Indonesia; Japan; Korea; Malaysia; New Zealand; Singapore; and the United Kingdom. TEQ also delivered activity in conjunction with partners in additional markets identified as having growth potential. A full list of TEQ’s current international offices can be found in the directory on page 97.

1 As a result of Machinery of Government changes that came into effect on 11 May 2020, the Department of State Development, Tourism and Innovation was formed. Prior to this, TEQ was part of the portfolio of Innovation, Tourism Industry Development and the Commonwealth Games.


Our operating environment

Tourism is Queensland’s third largest export industry and is vital to the state’s overall economic prosperity2. Prior to the COVID-19 pandemic, the economic contribution of the tourism industry in Queensland was $28 billion, or 7.7 per cent of Gross State Product (GSP)3. The industry supported 234,000 jobs directly and indirectly4 and 59,000 businesses (one in eight Queensland businesses), of which 53 per cent were located in regional Queensland5.

Prior to the pandemic, forecasting indicated that Queensland’s tourism and events industry could potentially generate $33 billion in overnight visitor expenditure (OVE) by 20256. At the time, much of the growth was expected to come from international markets, however, COVID-19 has dramatically changed this landscape. TEQ will review and publish revised forecasts once the impacts of COVID-19 are better understood. For the year ended March 2020, total OVE in Queensland was $24.6 billion, with domestic visitors contributing more than three quarters of the result.

Figure 2: OVE in Queensland

Strategic risks

The tourism and events industry has always operated in a highly competitive environment where the visitor economy is regularly impacted by large-scale social, economic, political, environmental and technological changes, bringing new and often unseen challenges, threats and opportunities. The potential risk of significant uncontrollable external events has long been identified within TEQ's strategic risk framework, and as such TEQ was prepared to respond to the impacts of COVID-19.

As well as a global health pandemic, other significant uncontrollable external events planned for by TEQ include natural disasters, global shocks, environmental changes and geopolitical events - all of which can affect consumer perceptions and their ability to travel. This risk was evidenced in 2019-20, with several regions of Queensland experiencing bushfires and the COVID-19 pandemic presenting one of the greatest ever challenges for global tourism. Widespread economic downturn has impacted consumer demand for discretionary travel and will continue to do so in the foreseeable future.

Continued supply of best-in-class product, experiences and services are required to generate targeted OVE outcomes. Tourism and event product and experience availability and delivery are currently impacted by public health directions resulting from COVID-19, including social distancing requirements. In addition, unprecedented impacts on the supply of air

2 Source: Queensland Government Office of Economic and Statistical Research, Overseas exports of goods by industry 2018-19. 3 Source: Tourism Research Australia, State Tourism Satellite Accounts 2018-19. 4 Source: Tourism Research Australia, State Tourism Satellite Accounts 2018-19. Tourism directly contributed $13.8 billion of GSP, and directly supported 145,000 jobs. 5 Source: Tourism Research Australia, Tourism Businesses in Australia, June 2014 to June 2019. 6 Source: Tourism Research Australia, forecasts year ended June 2019.

$30b

$25b

$20b

$15b

$10b

$5b

$0b

$24.6b

$18.9b

$5.7b

n_n_n_n_n_n_n_n_n_n_n_n_n_n_n_ 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

TOTAL

DOMESTIC

INTERNATIONAL


services globally have impacted visitor economy growth and demand for Queensland experiences. The diminished supply of air services has materially impacted aviation support programs designed to grow aviation access and capacity.

Changing consumer expectations and competition from other tourism and events destinations can affect demand for Queensland’s products, experiences and destinations. More than ever, it is essential for the Queensland tourism industry to respond to rapidly changing consumer sentiment and behaviour.

TEQ has worked closely with the Queensland tourism and events industry to help the state respond to, and plan for recovery from the COVID-19 pandemic. An overview of the crisis impacts of 2019-20 and TEQ’s response and recovery activities is provided in the Crisis impacts, response and recovery section of this report on page 14.

In addition to the strategic risks identified above, TEQ also faces risk relating to legal and regulatory requirements; brand and reputation; stakeholder engagement; financial; operational, project and process; people; workplace health and safety; and information, systems and security.

TEQ is committed to pursuing its business objectives while managing the impact of significant risks that can be meaningfully and realistically controlled. The organisation works in partnership with industry, government and RTOs to leverage opportunities to grow the visitor economy and minimise the adverse impacts of issues as they arise. TEQ also seeks to continuously improve the identification and management of all strategic risks and takes a balanced portfolio approach to global market investment.

Strategic challenges and opportunities Challenges

Queensland’s tourism industry has demonstrated its resilience and ability to recover, adapt and grow following significant external events and disasters in the past. However 2019-20 has been particularly challenging with industry facing drought, bushfires, the COVID-19 pandemic and the resulting global recession and other challenges bringing negative impacts to the tourism industry.

Queensland communities were severely affected by bushfires in late 2019, following an already devastating drought. Australia’s bushfire crisis peaked in December 2019/early 2020 and extensive global media coverage resulted in misperceptions in key international source markets of the geographic spread of the fires, impacting travel intentions.

The Great Barrier Reef continues to be Australia's greatest natural attraction, recognised as an iconic experience locally, nationally and internationally. Tourism is acknowledged as low risk and well-managed, and has an important role to play in connecting visitors to the reef and presenting the values of the World Heritage Area to the millions that visit annually. Like all coral reefs around the world, the Great Barrier Reef faces a variety of challenges including heat stress. Although coral bleaching occurred in early 2020 there was much variability across the marine park. Large parts of the reef were unaffected and continue to offer outstanding visitor experiences

The COVID-19 pandemic saw Australia’s international and domestic borders closed for non-essential travel, and public health directions and social distancing measures restrict business operation. The postponement or cancellation of events due to the restrictions on mass gatherings, restrictions on non-essential travel, the suspension of aviation services and subsequent global recession have severely impacted Queensland’s tourism and events industry.

For the year ended March 2020, China was the largest source market for international visitor spending in Queensland, representing 22.5 per cent of total international expenditure. Rising geopolitical tensions with China could prove challenging when Australia’s borders reopen and potentially affect both the education and leisure travel segments to Queensland.

A more detailed overview of the challenges and TEQ’s response to the COVID-19 pandemic is included in the Crisis impacts, response and recovery section of this report on page 14.


Opportunities

Prior to the onset of COVID-19, tourism in Queensland generated $25.5 billion in OVE7 and contributed 7.7 per cent of GSP, supporting 234,000 jobs8. Queensland had achieved 18 consecutive quarters of record total OVE as at December 2019 and the visitor economy represented an area of significant growth potential for the Queensland economy. Post COVID-19, TEQ will focus on rebuilding consumer demand, aviation capacity and the value of Queensland’s events calendar in order to maximise opportunities for visitor economy growth and to protect market share as economic conditions stabilise in key source markets. Visitor economy growth opportunities will be pursued in line with TEQ’s marketing and events strategies and the easing of travel restrictions.

The COVID-19 pandemic has highlighted many regional communities heavily dependent on the tourism and events sector. Australians love to travel and have a rich history of travelling internationally – there were 8.0 million outbound leisure trips taken in the year ended December 2019, with Australians spending $53.8 billion on travel internationally9. The closed international borders present an opportunity to encourage Australian residents who would have otherwise travelled overseas to travel domestically (taking into account state border closures).

Changing consumer expectations and the perception of safety while travelling will impact business operations and marketing. Australia’s response to COVID-19, coupled with Queensland’s nature-based offering, reinforces the state’s proposition as a safe and secure destination which may be a point of difference that encourages increased international visitation once borders reopen.

Nearly two-thirds of global consumers have a preference for purpose-led brands that reflect their own values and beliefs10. Queensland’s new ‘travel for good’ purpose-led brand positioning has been intentionally designed to address this trend and deliver transformational travel experiences by responding to changing consumer needs and values. The brand positioning is also well suited to cater to changing consumer values and needs post COVID-19.

Mobile technology developments continue to influence the way tourists plan and experience travel. TEQ continues to develop data and technology capability, through its Digital Transformation Program, in order to better meet expectations for increasingly personalised services.

Queensland is home to two distinct Indigenous cultures, Aboriginal and Torres Strait Islander cultures, presenting a significant opportunity and point of difference over competitor destinations. TEQ is committed to reconciliation and will develop a Reconciliation Action Plan guided by the TEQ Board Aboriginal and Torres Strait Islander Committee. An increase in Indigenous participation in tourism and events will be celebrated through the Year of Indigenous Tourism in 2020 and 2021. The Queensland Government is investing to grow the Indigenous tourism offering, increasing the range and diversity of experiences available to travellers.

To maximise recovery opportunities, TEQ will continue to monitor consumer sentiment and demand, and prioritise investment based on market trends, insights and changing travel restrictions. The Queensland Government continues its focus on innovation through the Advance Queensland initiative. The tourism and events industry must continue to innovate and is well placed to take advantage of these opportunities, delivering on jobs and advancing tourism.

7 Source: Tourism Research Australia, International and National Visitor Surveys, year ended December 2019. 8 Source: Tourism Research Australia, State Tourism Satellite Accounts 2018-19. Tourism directly contributed $13.8 billion of GSP supporting 145,000 jobs. 9 Source: Tourism Research Australia, National Visitor Survey, year ended December 2019. 10 Source: Accenture Strategy, From Me to We: The Rise of the Purpose-led Brand, 2018.


Industry performance overview 2019-20

TEQ provides tourism and events research and insights to industry and government to identify opportunities and inform strategic decision making for tourism growth in Queensland. The key performance metrics for the visitor economy are OVE and market share of OVE.

It should be noted the latest OVE data available is for the year ended March 2020. As such, full impacts of the COVID-19 pandemic are not yet evident in the results.

Total OVE in Queensland11 was stable in the 12 months to March 2020. Queensland’s performance against key measures is detailed below.

Overnight visitor expenditure12

Total OVE in Queensland reached $24.6 billion for the year ended March 2020 according to Tourism Research Australia’s international and national visitor surveys. This was a similar result compared to the same period in the year prior.

A quarter of Queensland’s total spending came from international visitors to Queensland (23.2 per cent share of total OVE), with three quarters (76.8 per cent) coming from domestic overnight visitors. More than half of domestic spending in Queensland came from Queenslanders (52.7 per cent).

Figure 3: Total OVE in Queensland, New South Wales and Victoria

11 Total OVE comprises OVE from domestic and international markets. 12 Source: Tourism Research Australia, International and National Visitor Surveys, year ended March 2020. Further information on tourism research and insights in Queensland can be located at www.teq.queensland.com. Please note ‘YE’ denotes Year Ended.

$35b

$30b

$25b

$20b

$15b

$10b

$5b

$0b

-

YE March 2013

NSW QLD VIC

~ -----------------

YE March 2014

YE March 2015

YE March 2016

YE March 2017

YE March 2018

YE March 2019

YE March 2020


There were small shifts in the market share of OVE across Australian states during the year. Queensland’s market share decreased by 0.3 percentage points year-on-year to 23.0 per cent of all OVE in Australia, while Victoria increased market share by the same amount over the period (up 0.3 percentage points to 23.2 per cent).

New South Wales decreased in market share, down 0.8 percentage points to 30.5 per cent of all OVE in Australia.

Figure 4: Market share of Total OVE, 2013-2020

Domestic overnight visitor expenditure13

Domestic overnight visitors spent $78.8 billion in Australia during the year ended March 2020, of which $18.9 billion was spent in Queensland.

Figure 5: Domestic OVE in Queensland, New South Wales and Victoria

13 Source: Tourism Research Australia, National Visitor Survey, year ended March 2020.

100%

80%

60%

40%

20%

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$5b

$0b

YE March 2013

YE March

2013

NSW QLD

VIC

YE March 2014

YE March 2014

~

= ~ ~ YE March 2015

YE March 2015

YE March 2016

YE March 2016

YE March 2017

YE March 2017

YE March 2018

YE March 2018

~

YE March 2019

YE March 2019

YE March 2020

YE March 2020

■ NT

■ ACT

■ TAS

■ SA

WA

= VIC

~ QLD

= NSW


International overnight visitor expenditure14

International OVE in Australia decreased by 6.7 per cent to $28.5 billion for the year ended March 2020, a result of the Australian bushfires and early impacts of COVID-19 in important international source markets.

Of the international travellers to Australia in the year ended March 2020, one in five visited Queensland, and they spent $5.7 billion. China contributed the highest expenditure for Queensland at $1.3 billion, followed by New Zealand at a record $619.3 million, the United States of America (USA) with a record $450.6 million, Japan at $426.1 million and the United Kingdom (UK) at $329.9 million.

Figure 6: International OVE in Queensland, New South Wales and Victoria

Regional performance15

Total OVE and visitation performance in each of Queensland’s tourism regions for the year ended March 2020 is highlighted in the table below.

Table 1: Total OVE and visitation in Queensland regions, year ended March 2020

OVE Overnight visitation

Total $m

Annual change %

Total visitors

Annual change %

Brisbane $7,789.2m 3.5% 9.3m 3.0% Gold Coast $4,872.7m -1.7% 4.9m -2.3%

Tropical North Queensland $3,510.4m 4.9% 2.9m 1.5%

Sunshine Coast $2,957.8m 4.9% 4.1m -0.8%

Southern Great Barrier Reef $1,232.9m -2.8% 2.4m 1.2% Townsville $885.7m -8.6% 1.3m -13.7%

Southern Queensland Country* $806.7m* -0.7% 2.2m* 4.0%

Whitsundays* $751.0m* 0.3% 0.8m* 5.1%

Outback* $703.2m* 7.9% 1.1m* 3.9% Mackay* $523.4m* 8.9% 1.1m* 7.7%

Fraser Coast* $470.3m* 11.8% 0.9m* 5.3%

* All percentages refer to annual growth except for the Southern Queensland Country, Fraser Coast, Mackay, Outback and Whitsundays regions which refer to the trend change over three years.

14 Source: Tourism Research Australia, International Visitor Survey, year ended March 2020. 15 Source: Tourism Research Australia, International and National Visitor Surveys, year ended March 2020. Southern Great Barrier Reef incorporates the Capricorn, Gladstone and Bundaberg regions.

$15b

$10b

$5b

$0b

YE March 2013

NSW

QLD

VIC

YE March 2014

YE March 2015

YE March 2016

YE March 2017

YE March 2018

YE March 2019

YE March 2020


Queensland brand performance

Part of Queensland’s long-term marketing strategy is to grow equity in the Queensland brand. In order to stay up to date with contemporary methodologies, TEQ implemented a new brand performance measurement in 2019-2016.

The first wave of measurement took place in late 2019, prior to the Australian bushfires and COVID-19. At the time, and consistent with prior brand studies, results showed the Queensland brand was strong in key domestic source markets.

Queensland’s power score17 of 9.9 per cent, a representation of the brand’s ability to drive predisposition based on perceptions, was the highest of the 16 domestic and international destination brands included in the study. TEQ’s goal is to maintain its brand leader position amongst competitor destinations such as New South Wales, Victoria, New Zealand, Bali and Japan.

Results from this study will be used as a baseline for future brand tracking studies and will be particularly important as a lens into how consumers perceive destination brands post COVID-19.

Social impacts of tourism

The 2019 Social Indicators Study18 surveyed over 3,000 residents across Queensland to measure the impact of tourism on Queensland communities.

The study showed that residents have a positive attitude towards tourism. This was particularly evident in the regions outside of south east Queensland, i.e. outside of Brisbane, Gold Coast, and Sunshine Coast. Regional residents overwhelmingly want more tourists, say they ‘really like’ tourists, and seek continued tourism development.

Overall, the survey found that Queenslanders have an increasingly positive view about tourism. The proportion of residents that ‘really like tourists’ increased to 50 per cent in 2019 from 46 per cent in 2017, and the proportion of residents that think tourism has a positive effect on the community increased to 45 per cent from 43 per cent.

Queensland residents overwhelmingly agree that because of tourism there is: greater cultural diversity (91 per cent), economic benefits (89 per cent), an increased regional profile (83 per cent), increased local pride (73 per cent) and new infrastructure (69 per cent).

16 Kantar Australia is now providing brand performance measurement for TEQ, replacing brand health research previously undertaken with The Nielsen Company. 17 Kantar’s Power Score is based on the Meaningfully Different Framework (MDF), calculated based on three dimensions: meaning, difference and salience. Kantar has found that meaningfully different brands command a 13 per cent price premium and are four times more likely to grow value share during the next 12 months, compared to brands lacking meaningful difference. The power score is a share of predisposition amongst the competitor set, such that all of the power scores sum to 100 per cent. For more information on the MDF, please see here. 18 Source: TEQ, Social Indicators 2019 Queensland, October 2019.

http://www.millwardbrown.com/docs/default-source/insight-documents/articles-and-reports/MillwardBrown_MeaningfullyDifferentFramework_April2013.pdf


Crisis impacts, response and recovery Crisis impacts Australian bushfires

Several regions of Queensland experienced intense bushfires from September to November 2019, including Noosa and the Sunshine Coast, the Scenic Rim and Southern Queensland Country. Significant media coverage of the fires impacted consumer confidence to book or travel to these areas ahead of peak season.

Then in December 2019 and January 2020, significant bushfires affected other parts of Australia resulting in broad international media coverage depicting the whole country as being impacted. This coverage severely influenced travel intentions to Australia.

COVID-19

The COVID-19 pandemic has presented one of the greatest ever challenges for global tourism. On 29 January 2020, Queensland’s Minister for Health and Minister for Ambulance Services declared a public health emergency in relation to COVID-19. State and federal public health directions subsequently saw Queensland and Australia’s borders closed to non-essential travellers, a ban on mass gatherings, a ‘Home Confinement’ Direction in place, and a ‘Non-Essential Business’ Direction in place to restrict business operation.

On 8 May 2020 both the federal and state governments released a three-stage roadmap for the easing of restrictions. For Queensland, Stage One commenced with day trips within 50km of home, opening up to unlimited intrastate overnight travel in Stage Two, and on 30 June 2020 confirmation that Stage Three would commence on 3 July 2020. The continuing impacts of COVID-19 have led to ongoing changes in border restrictions.


2019-20 COVID-19 timeline

The following section outlines the impact of the Australian bushfires and the COVID-19 pandemic on the Queensland visitor economy, consumer sentiment, the aviation and accommodation sectors, and employment, using a range of information sources available.

Impact on visitor numbers

In early September 2019, bushfires occurred in south east and northern Queensland. These fires did not attract the extensive media attention that occurred later in the year, and for this reason the impact was primarily domestic in nature and impacted only the September 2019 quarter. From late December 2019 to March 2020, more extensive bushfires seriously impacted various regions in New South Wales, Victoria, South Australia and the Australian Capital Territory. In the midst of the bushfires, COVID-19 emerged in Australia in late January 2020.

The concurrent timing of these two external events means that tourism data available for the March quarter 2020 best reflects the immediate impact on the visitor economy, though it does not encompass the effects of the domestic border closures or home confinement orders. Compared to the same period in the previous year, Queensland saw sharp declines in visitation across each of the top five international source markets in the March quarter 2020, and declines in visitor nights from four of the five markets. The largest declines were seen from China, the first country impacted by travel restrictions due to COVID-19 and Queensland’s largest source market in terms of OVE.

It is important to note that due to the unprecedented circumstances, some international travellers may have shortened their trips in Queensland and Australia, while others may have extended their stays. Future data releases will illustrate the full extent of these events on visitor numbers.

27 January China implements group travel bans, signalling the first impacts on the global travel industry. 29 January Public health emergency declared in Queensland in relation to COVID-19.

1 February First international travel restrictions in place, as Australia establishes a 14-day quarantine requirement for all travellers who have been in China within 14 days of arriving in Australia.

15 March All international arrivals required to self-isolate for 14 days. All cruise ships from foreign ports banned from arriving at Australian ports.

16 March Non-essential gatherings of more than 500 people banned (reviewed on 20 March to restrict gatherings to no more than 100 for essential reasons only).

20 March Australian borders closed to all travellers except Australian citizens, residents and their immediate families (mandatory quarantine for these arrivals in place from 28 March).

22 March Australian Football League (AFL) suspends season (National Rugby League (NRL) announces season suspension the next day).

23 March Non-essential Business Public Health Direction put in place, restricting businesses such as retail food services, beauty, entertainment venues, accommodation, campgrounds and zoos and wildlife centres from operating.

26 March Australians banned from travelling overseas. Any interstate travellers arriving to Queensland must self-quarantine for 14 days.

30 March Home Confinement Direction in place. Federal JobKeeper stimulus package announced.

3 April Queensland’s borders formally closed with anyone arriving from interstate not being allowed to enter unless exempt.

2 May Restrictions begin to ease in Queensland – people may leave home for recreational day trips within 50km of home. Limited tourism operations can recommence.

8 May Federal and Queensland three-stage roadmap to easing restrictions released.

15 May

Stage One of easing of restrictions begins in Queensland, allowing recreational day trips up to 150km from home, up to 10 people allowed in restaurants, cafes, pubs at any one time and gatherings of up to 10 people. Outback Queensland allowed recreational travel up to 500km and up to 20 locals in dining venues.

1 June Stage Two of easing of restrictions begins in Queensland, allowing unlimited travel (no km limit) and overnight stays for most of Queensland (other than restricted Indigenous communities). Tourism experiences allowed to operate for 20 people (more if following the approved COVID Safe Industry Plan).

30 June Queensland Government announces Stage Three will commence from 3 July, with interstate travel (excluding Victoria) to commence from 10 July.


Table 2: Visitation to Queensland by top five international source markets19

Domestically, visitation to Queensland in the March 2020 quarter was clearly impacted by the Australian bushfires and COVID-19, as both visitor numbers and nights decreased compared to the same period in 2019 (down 18.4 per cent and 18.5 per cent respectively). The decreases occurred primarily in the month of March. Table 3: Domestic visitation to Queensland by source market20

Impact on employment From March to June 2020, the total number of employed persons across Queensland decreased 152,000 and the unemployment rate increased 2.1 percentage points to 7.7 per cent21. Tourism spans across many industry sectors. The fall in employment in Queensland was largest in the collection of sectors which make up the tourism industry (with the steepest declines in accommodation and food services).

Figure 7: Employed persons – Queensland (millions)

19 Source: Tourism Research Australia, International Visitor Survey, March quarter 2019 and March quarter 2020. Visitors and visitor nights are rounded to the nearest thousand as they are survey estimates and subject to sampling variability. Growth rates are calculated using the unrounded totals. 20 Source: Tourism Research Australia, National Visitor Survey, March quarter 2019 and March quarter 2020. Visitors and visitor nights are rounded to the nearest thousand as they are survey estimates and subject to sampling variability. Growth rates are calculated using the unrounded totals.. 21 Source: Australian Bureau of Statistics, Labour Force, Australia, catalogue no. 6202.0, June 2020.

Visitors Nights

March quarter

2019

March quarter

2020 Change

March quarter

2019

March quarter

2020 Change

China 153,000 54,000 -64.8% 3,517,000 1,817,000 -48.3% New Zealand 83,000 71,000 -14.4% 846,000 983,000 16.2% Japan 56,000 40,000 -29.1% 817,000 665,000 -18.5% USA 65,000 49,000 -24.0% 605,000 567,000 -6.3% UK 64,000 48,000 -25.0% 1,208,000 909,000 -24.7%

Visitors Nights

March quarter

2019

March quarter

2020 Change

March quarter

2019

March quarter

2020 Change

Queensland 4,273,000 3,608,000 -15.6% 14,688,000 11,988,000 -18.4%

New South Wales 999,000 777,000 -22.2% 4,498,000 3,891,000 -13.5%

Victoria 417,000 338,000 -18.9% 2,378,000 2,005,000 -15.7% Rest of Australia 317,000 178,000 -43.9% 2,053,000 1,360,000 -33.8%

Total 6,007,000 4,901,000 -18.4% 23,617,000 19,243,000 -18.5%

2.6

2.5

2.4

2.3

2.2

2.1

2.0

June 2010

June 2011

June 2012

June 2013

June 2014

June 2015

June 2016

June 2017

June 2018

June 2019

June 2020


Impact on accommodation

COVID-19 has significantly impacted the accommodation sector through the ban on international visitor arrivals and restrictions on travel across Australia.

Industry data indicates demand for commercial accommodation softened through February before the downturn accelerated from March 2020. Across the state, demand fell by more than 80 per cent in April 2020 (compared to April 2019) and occupancy rates fell to 14 per cent. There was a contraction in the number of rooms available for booking through this period as some operators chose to close their properties due to the market conditions.

The industry recovery commenced with the easing of intrastate travel restrictions in June 2020, and while the return to pre-COVID-19 levels is still uncertain, recent STR research has pointed to some early green shoots for Queensland accommodation, with occupancy levels, demand and RevPAR in the second week of the Queensland winter school holidays all increasing when compared to the week prior to restrictions easing22.

Impact on consumer sentiment

Multiple data sources point to shifting consumer attitudes in response to the events of 2020.

In the midst of the southern Australian bushfires, the environment emerged as the top concern in Australia for the first time in January 202023 and remained the top, or equal top issue in February and March 2020. Internationally, research commissioned by TA24 indicated a high level of awareness of the Australian bushfires (90 per cent of international travellers) and a moderate level of impact, with 33 per cent of those planning to visit Australia reporting the situation impacting their plans in some way.

However by April 2020, Australians’ concern for the environment had fallen back to fifth position25. Instead, Australians nominated healthcare as their top concern (with more Australians than ever nominating healthcare as one of their top three worries), followed by the economy and unemployment. All three issues rose sharply from the prior month and in relative terms, unemployment more than doubled in concern for Australians from March to April. This concern was echoed globally, with the Ipsos Global Consumer Confidence Index26 dropping to the lowest recorded level since the index was created.

As the COVID-19 pandemic progressed, attitudes towards domestic and international travel were impacted. Periodic studies of consumers’ holiday intentions27 throughout the first half of 2020 showed that intentions to take a holiday or short break within Australia reached the lowest levels in late March 2020, prior to the Easter holidays.

Australians recognise the importance of resuming travel to economic recovery, with nearly nine in ten Australians (87 per cent) agreeing that ‘taking domestic holidays is essential to rebuilding our economy’28. In a positive sign of market resiliency, by mid-June 202029 the percentage of Australians intending to take a domestic holiday or short break over the winter school holiday period had bounced back to similar levels as seen in 2019.

International travel has been more seriously impacted. A global study30 of 72 markets in March and April 2020 found that only 20 per cent of global consumers surveyed felt they were likely to travel abroad in the second half of 2020. Within Australia, fewer than two in ten Australians have, or plan to, book personal international trips before November 202031.

22 Source: STR, Weekly Accommodation Performance, 5-11 July 2020. Occupancy rates rose 25 percentage points compared to the week prior to restrictions easing on 1 June. Demand was up 141 per cent and RevPAR was up $44 per room in the same period. 23 Source: Ipsos Australia Issues Index, January 2020. 24 Source: Bushfire Impact, January CDP Findings, Tourism Australia. This research comprises a survey of ‘out of region’ international travellers i.e. those who intend to travel further afield than their close neighbouring international countries. 25 Source: Ipsos Australia Issues Index, April 2020. 26 Source: Ipsos Global Consumer Confidence Index, June 2020. 27 Source: TEQ Holiday Intentions Surveys, Waves 1-5. 28 Source: YouGov COVID-19 Australia: Travel Monitor, week commencing 9 July 2020. 29 Source: TEQ Holiday Intentions Pre-Winter Survey, June 2020. 30 Source: Nielsen COVID-19 Global Survey, May 2020. 31 Source: YouGov COVID-19 Australia: Travel Monitor, week commencing 9 July 2020.


Impact on aviation

The aviation landscape has undergone significant change following the onset of COVID-19 and implementation of travel restrictions, with weekly global passenger volumes reduced to 1986 levels at the height of the pandemic32. Internationally, losses in the aviation industry are expected to reach USD $84 billion for the 2020 calendar year, with global passenger revenues falling 50 per cent to USD $419 billion during 202033, due to the combined effects of a decline in consumer confidence, passenger demand and airline discounting34. These global challenges have also affected the Australian aviation industry with the resulting reduction in passenger demand and revenue.

Across Queensland, cuts to aviation schedules and capacity began in late March 2020 across the international and domestic segments with only essential services operating from April. This resulted in a reduction to international seat capacity by 95 per cent through April 2020 (year-on-year) with repatriation and cargo services the main international flights in operation. For the year ended June 2020, the total volume of inbound seats from international markets declined 24 per cent. In total, 1.47 million international seats were removed from the network (actual performance compared to the seats schedule as at 30 December 2019)35.

Local travel and border restrictions were introduced across March and April 2020 with domestic inbound seat capacity into Queensland 86 per cent lower for the month of April 2020 compared to April 2019, and overall 22 per cent lower for the year ended June 2020. In total, 4.73 million domestic seats were removed from the domestic network (actual performance compared to the seats schedule as at 30 December 2019)36.

Following the easing of restrictions from June 2020 and planned easing of interstate visitation restrictions in July 2020, airlines began to restore previously cancelled services to their schedules and restart capacity across intrastate and interstate networks. The recovery process for the aviation industry is expected to be gradual and on some estimates the industry is not expecting to return to 2019 levels of travel until 202437.

Queensland’s long-term aviation outlook remains positive, with four international airports, strong airline partnerships, significant aviation attraction initiatives and substantial infrastructure investments including new runways in Brisbane and the Sunshine Coast completed during 2019-20.

Impact on cruise industry

The Australian Minister for Health issued a declaration on 27 March 2020, a determination under the Biosecurity Act that required the operators of cruise ships that were flagged or registered in other countries, to remove those cruise ships from Australian territorial waters. Shortly after, the Australian Government restricted all cruise ships from entering Australia including direct arrivals and round-trip cruises. This was adopted by the Queensland Government and came into effect on 7 April. The determination has been extended until 17 September 2020 subject to further review.

The total economic output of cruise tourism in Queensland in 2018-19 was $1.04 billion, including $570 million in total value add. A total of 521 cruise ship days were spent along Queensland shores in 2018-19, bringing in 853,000 passengers and crew, supporting more than 3,529 jobs and $308 million in wages38.

It is estimated more than 100 cruise ship visits to Queensland ports and anchorages have been cancelled from mid-March through to June 2020.

32 Source: Global aviation's time travel: back to 1996 fleet & 1986 flight levels, Centre for Aviation, May 2020. 33 Source: International Air Transport Association (IATA), ‘Industry Losses to Top $84 Billion in 2020’, May 2020. 34 Source: International Air Transport Association (IATA), 'Economic Performance of the Airline Industry', June 2020. 35 Source: OAG Schedules Analyser, July 2020. 36 Source: OAG Schedules Analyser, July 2020. 37 Source: International Air Transport Association (IATA), ‘Recovery Delayed as International Travel Remains Locked Down’, 28 July 2020. 38 Source: The Value of Cruise Tourism. Economic Impact Assessment of Cruise Tourism in Australia, 2018-19.


Impact on events

Mass gatherings were one of the earliest restrictions put in place, limiting gatherings to small numbers and restricting events from taking place.

In 2019-20, TEQ supported 192 events across the major, business and Queensland Destination Events Program (QDEP) portfolios:

• 68 major events; • 26 business events; and • 98 QDEP events.

Of these:

• 122 were staged (prior to COVID-19 restrictions); • 4 were staged virtually; • 42 were cancelled; and • 24 postponed.

While some events were able to deliver their experiences virtually, a large number were forced to cancel or postpone, significantly impacting the value of the It’s Live! in Queensland events calendar.

TEQ was a significant contributor to the development of an industry framework for COVID Safe events. The framework was signed off by Queensland’s Chief Health Officer in early July 2020 in order to pave a way for the events industry to restart.

Impact on marketing activity

With bushfires impacting Queensland’s regions from September 2019, TEQ supported recovery marketing activity from October 2019, with early positive results. As the bushfire situation worsened in southern states in late 2019 and early 2020, TEQ’s focus remained on bushfire-recovery marketing, targeting the domestic market through TA’s ‘Holiday Here This Year’ marketing platform.

As COVID-19 began impacting international markets, TEQ reviewed international marketing programs and paused where necessary. In March 2020, in line with federal and state government advice that Australians should not travel unless essential, TEQ paused all marketing activities39.

During Australia’s period of strongest restrictions, TEQ provided inspirational content in international and domestic markets to keep Queensland top of mind for when global travel resumes. Using spectacular and inspiring Queensland imagery, TEQ connected with social media users around the world who were in isolation or feeling anxious, sending them serenity and calm from Queensland. ‘Project Thrive’ aimed to show that despite the many challenges of the pandemic around the world, Queensland continued to thrive - whether in nature, or the many examples of wonderful human spirit around the state. To help Queensland’s tourism businesses share a similar story of hope and positivity, TEQ developed content guidelines outlining the 'Project Thrive' approach, intended to help shape industry social media and other messages during the key stages of the pandemic - from the ‘homebound’ state, to ‘emergence’ and eventually ‘return’ to travel.

The 2020 Best of Queensland Experiences Program (BOQEP) was paused in March 2020, due to the rapidly changing COVID-19 crisis and subsequent impacts to the industry.

Longer-term marketing activities were also cancelled, which will create longer-term impacts as the industry starts to rebuild due to the break in engagement, including:

• 2020 Australian Tourism Exchange cancelled. • Queensland on Tour New Zealand 2020 and Queensland on Tour Korea 2020 travel trade missions cancelled. • TEQ’s trade and media Experience Program (familiarisation program) paused.

39 Bushfire recovery funding that remained unspent was used to leverage the ‘Good to Go’ campaign following the easing of COVID-19 restrictions.


COVID-19 response and recovery

Response activities

TEQ continues to support Queensland’s tourism and events industry through the impacts of COVID-19 working with government and industry to help the state recover from the pandemic.

TEQ has taken a ‘Reset, Restart, Regenerate’ approach to recovery plans, in line with the expected easing of restrictions and return to global travel, focused firmly on rebuilding consumer demand, aviation capacity and the Queensland events calendar, and responding to consumer sentiment.

On 19 May 2020, the Queensland Government announced the Unite and Recover for Queensland Jobs economic recovery strategy, including $7 million for a domestic tourism campaign to support jobs and businesses in Queensland’s tourism regions by marketing Queensland as the destination of choice for Australian travellers. TEQ will work with RTOs and other partners to deliver this campaign in 2020-21.

Business continuity

In response to COVID-19, TEQ activated its business continuity plans from February 2020 as China-based staff commenced working from home. As international conditions evolved, other international offices commenced remote working arrangements and from March 2020, all Queensland-based staff began working remotely. TEQ’s technology enabled continued global connectivity and collaboration, and through effective implementation of its business continuity plans TEQ was able to:

• Minimise the impact on TEQ’s stakeholders by providing continuity of services and resources where able, in line with government health directives;

• Assist TEQ staff globally during the crisis event, enabling them to continue working despite being unable to access their usual place of work;

• Implement effective and fit-for-purpose crisis management and governance, enabling staff to be agile and responsive;

• Ensure compliance with legal and regulatory requirements; • Review learnings from the crisis in order to improve future response to business continuity situations; and • Plan a staged return to office from July 2020, combining remote and office-based working in line with changing

health and safety restrictions.

Government support

In accordance with ministerial direction (issued under section 10 of the Tourism and Events Queensland Act 2012), TEQ supported wider government initiatives using existing resources and funding intended for tourism and events marketing activities that were cancelled due to the impacts of COVID-19.

Between March and June 2020, TEQ supported other government departments through the contribution of staffing resources to:

• The Department of State Development, Tourism and Innovation (DSDTI) by contributing to the COVID-19 Industry Liaison Taskforce and leading the Tourism Response Team;

• Queensland Health’s media and communications team; • The Department of Premier and Cabinet’s COVID-19 Taskforce; • COVID-19 response and recovery campaigns including supporting the ‘Making it Great in the Sunshine State’

campaign and components of the COVID-19 Senior Support Program; • Volunteering Queensland to help promote Queensland’s Care Army initiative and 2020 National Volunteer Week; • Study Queensland to assist with the delivery of a funding program for international students impacted by COVID-

19; and • Supporting RTOs while some regions had reduced staff and resources.

TEQ remains committed to working closely with other Queensland Government agencies to support the Unite and Recover for Queensland Jobs economic strategy and to assist with the state’s public health response.


Industry support

TEQ provided support to tourism and events businesses throughout the pandemic including:

• Supporting more than 1,500 businesses directly through the Industry Liaison Taskforce, staffed with TEQ and DSDTI team members;

• Dedicated COVID-19 webpages updating both travellers and businesses on the latest information and linking them to official sources;

• Regular e-newsletter updates on the latest restrictions, links to official information and updates on TEQ activities; • An Industry Update video series featuring video messages from TEQ’s Chief Executive Officer (CEO) and Board; • Coordinating a state-wide live Industry Update with Queensland’s Chief Health Officer, Queensland Tourism

Industry Council (QTIC), DSDTI and senior TEQ representatives, for which more than 2,000 people registered to attend;

• Commencing a ‘Special Invite Series’ of webinars to provide access to leading marketing and tourism partners to assist the industry to strive for best practice;

• Direct correspondence with event organisers with the latest information on mass gathering restrictions and subsequent easing of restrictions;

• Standing up TEQ’s Crisis Communications Response Group in partnership with DSDTI, QTIC and RTOs. The group met at least weekly between January and June 2020;

• Providing TEQ subject experts to speak at various industry updates, webinars and virtual functions; and • Waiving fees for the Australian Tourism Data Warehouse (ATDW) from 15 May 2020 to extend memberships by

24 months.

TEQ also continued to maintain relationships with trade partners throughout the pandemic:

• Videos of support from Queensland’s tourism businesses were shared with Chinese trade partners on 24 February and 5 March 2020. The friendship was returned, with a series of video messages shared with Queensland partners on 30 April 2020.

• Letters of support were sent from TEQ’s CEO to inbound tourism operators and key trade and media partners around the world.

TEQ delivered a number of high-quality virtual industry engagement sessions. The first event, a state-wide update from TEQ, Queensland Health and QTIC, in partnership with DSDTI, saw more than 2,000 people register to attend. From July 2020, TEQ’s annual Conversations with Industry events will also be delivered virtually, utilising new skills and reaching all 13 tourism destinations as quickly as possible as restrictions ease and recovery begins.

TEQ also evolved the delivery of its industry updates to provide regular video content from both TEQ’s CEO and Board. The video updates experienced very high levels of engagement and will continue into recovery.

Recovery activities

Marketing

In the early stages, as COVID-19 cases began to spread internationally, TEQ diverted marketing efforts to the domestic market, working with TA’s ‘Holiday Here This Year’ marketing platform. The ‘Holiday Here This Year’ campaign was originally designed in response to the impacts of Australia’s bushfires but soon became a national campaign as COVID-19 began to impact international markets.

As the pandemic situation rapidly changed, TEQ paused all paid marketing activities and focused on providing inspirational Queensland content to keep Queensland high in consideration when global travel resumes.

Travel restrictions eased in Queensland from June, with Queenslanders allowed to travel overnight around the majority of the state. On 7 June TEQ launched the ‘Good to Go’ campaign, aiming to inspire Queenslanders to explore the very best of their own backyard and reconnect with friends and family. The campaign was specifically designed to extend interstate once restrictions eased further. A core message of the campaign is built on the premise that Queensland's tourism industry is open, ready to welcome visitors and is following COVID Safe practices. Businesses can display the 'Good to Go' stamp in their marketing if they have the required COVID Safe documentation in place, to help assure visitors they are offering a safe travel experience.


Trade partnerships

Maintaining positive trade relationships and providing inspiring content is key to Queensland's recovery capabilities in international markets in the future.

• In New Zealand, Queensland has been the first international destination to partner with House of Travel to launch an inspirational campaign, set to reach more than 145,000 people.

• As part of a pilot marketing partnership in the USA with Travelzoo and a key distribution partner, TEQ is trialling a flexible-travel promotion for 2021 holiday bookings, with a targeted reach of 17 million Americans.

• Virtual product updates and training webinars and engagement activities were provided to 48,137 agents around the world between March and June 2020 in order to maintain relationships and keep Queensland front of mind.

Events

To enable the restart of the events industry, TEQ assisted in the development of the Industry Framework for COVID Safe Events in Queensland, led by QTIC in conjunction with DSDTI, and in collaboration with industry stakeholders and Queensland Health. The Industry Framework was released in July 2020.

Queensland’s events industry showed leadership and innovation with very quick transformations to virtual events which still delivered tourism promotional benefits to the state and enabled people to remain connected with Queensland. TEQ supported organisers to deliver the events virtually while still providing benefits back to Queensland.

QODE (March 2020)

• Queensland’s largest innovation and technology gathering for entrepreneurs, investors, business executives, researchers, start-ups and government.

• The event highlights major global trends and issues driven or heavily affected by technology. • QODE organisers took the initiative to deliver an ‘Australian-first’ virtual expo - QODE Brisbane Virtual, partnering

with YouTube to stream live, and free of charge. • Organisers teamed up with Brisbane Virtual Reality company, Visitor Vision, offering a new way for people to

view the conference exhibits in this unprecedented time. • The digital format attracted 14,733 views across the program and showcased Queensland to 42 different

countries globally.

Blues on Broadbeach (May 2020)

• ‘Bandwidth’ presented by Blues on Broadbeach was delivered on 15-16 May 2020 entirely virtually. • The Broadbeach Alliance Limited events team delivered two free shows for fans all over the world to tune in via

the Blues on Broadbeach Facebook page. • The virtual event had an online media reach of more than 66 million, received more than 180 pieces of online

coverage and 27,648 engagements, while more than 58,000 people viewed the entire show.

Brisbane Marathon Festival (June 2020)

• The decision to move to a virtual event allowed the organiser to bring the community together, provided a boost to competitors and showcased Brisbane.

• More than 1,500 runners registered to run virtually (115 of these were international competitors).

Aviation

As part of the response to COVID-19, the Queensland Government announced a $15 million package to secure aviation services. Of this, $5 million is allocated to secure intrastate services, with funding provided to 16 airports to negotiate directly with carriers in partnership with TEQ. Of the remaining $10 million, $5 million has been allocated to secure interstate services and the balance will be used to progress strategic priorities.

Research and insights

TEQ launched a COVID-19 research newsfeed and dashboard on its corporate website to provide access to national and international research on consumer behaviour, impacts of COVID-19, marketing and media trends. The newsfeed and dashboard were designed to assist tourism and events businesses to understand the national and global trends and consumer sentiment to help inform their decision making and adapt their business offerings accordingly.


Looking forward 2020-21

TEQ will continue to implement crisis response and recovery activity in 2020-21 in line with public health directions and global travel restrictions. Through its reset, restart and regenerate approach, TEQ has identified the following priorities for the year ahead. Stakeholder and industry engagement

• Engage with the tourism and events network to deliver agreed priorities and drive sustainable visitor economy growth, ensuring a connected ecosystem.

• Work in partnership with DSDTI in the delivery of portfolio responsibilities. • Assist the industry transition to a COVID Safe environment to support the delivery of safe travel and events in

Queensland and reinforce the proposition of Queensland being a safe and secure destination. • Administer Tourism Network Funding in order to support the RTOs to rebuild regional tourism.

Consumer demand • Target Queenslanders, interstate travellers and those Australians who would usually travel overseas to have a

Queensland experience. • Engage domestic trade and aviation partners, and talk directly to consumers through the new Queensland.com

website. • Attract New Zealanders through a multi-channel approach and develop strategic aviation and trade partnerships. • Implement a light touch international approach – with many international borders not expected to open until

2021, TEQ’s focus will be on trade education and engagement designed to keep Queensland top of mind and maintain relationships across a balanced portfolio of markets.

• Bring the purpose-led Queensland brand to life to build a competitive advantage and generate global consumer demand.

• Approach consumer segmentation and market prioritisation based on travel purpose, providing a framework across geographic markets.

World-class events calendar • Rebuild the Queensland events calendar to drive regional demand, foster community pride and drive visitor

economy growth. • Support the current portfolio of events and broader industry to position themselves for the post COVID-19

environment. • Continue to acquire events to ensure the Queensland events calendar remains attractive to visitors in future

years.

Aviation access and capacity • Rebuild aviation access and capacity through a targeted global strategy in partnership with airports, airlines and

industry partners. • Focus on demand generation in priority domestic markets, leveraging trade partnerships to drive conversion on

targeted routes with key airline partners. • Work with airports and RTOs to ensure New Zealand access to Queensland airports is restored in line with the

proposed trans-Tasman bubble. • Focus on demand generation in priority Eastern and Western markets as international borders reopen.

Experience development • Develop and deliver experience design toolkits to assist industry to align their tourism product and experience

with the expectations and desires of target consumers. • Support industry and event proponents to grow their experience design capabilities through mentoring and

training programs. • Continue to promote customer experience best practice through the BOQEP. • Implement key actions identified in the Nature Based Tourism Strategy relating to marketing, experience design,

sustainability and partnerships.

Strategic research • Undertake research to monitor and track consumer behaviour and attitudinal changes in the post COVID-19

environment. • Conduct intelligence analysis into global economic impacts, market trends, digital transformation and travel

preferences in order to identify opportunities and inform decision making. • Ensure Queensland remains forward thinking and adaptive to emerging trends through effective data sharing and

collaboration with stakeholders.

In addition, TEQ will continue to support whole of government COVID-19 priorities as required by the Minister.


Our performance 2019-20

Queensland Government objectives for the community

In 2019-20, TEQ contributed to the Government's objectives for the community Our Future State: Advancing Queensland’s Priorities:

• Create jobs in a strong economy by increasing private sector investment through: attracting visitors to Queensland through marketing and promotion; tourism experience and destination development; working to identify, attract and promote major events; and providing support and leadership to Queensland's tourism industry.

• Be a responsive government by making Queensland Government services easy to use through: working in partnership with other Queensland Government agencies to progress portfolio priorities; and undertaking research and analysis of the Queensland tourism industry to inform strategic decision making.

During 2019-20, TEQ delivered activities to progress the priorities outlined in the Minister’s Statement of Expectations and the 2019-20 Queensland State Budget - Service Delivery Statements including:

• building on the successful Beautiful One Day, Perfect the Next platform to deliver a compelling global marketing and brand strategy to meet evolving consumer needs;

• working with industry and government partners to deliver exceptional experiences that position Queensland as a destination of choice in a competitive global environment and promoting customer experience best practice through the BOQEP;

• maximising the value of the It’s Live! in Queensland events calendar through attracting and securing major events, and supporting regional tourism and the business events sector through QDEP and the Business Events Investment Program respectively; and continuing to ensure longer term benefits are realised from hosting the Gold Coast 2018 Commonwealth Games and SportAccord 2019;

• investing resources in the right mix of international and domestic markets through a balanced portfolio approach that capitalises on emerging opportunities while maintaining traditional markets, ensuring longer term growth and a greater market share for Queensland tourism;

• supporting the Year of Outback Tourism by delivering activities in partnership with the Queensland Government, the Outback Queensland Tourism Association (OQTA), tourism operators and event proponents to showcase the region’s events and experiences and drive visitation and expenditure in local communities;

• using a collaborative approach with key partners including aviation industry, trade, DSDTI and RTOs to pursue commercial partnerships that drive growth in the tourism sector. TEQ also worked with DSDTI to ensure Queensland has a strong tourism network that remains sustainable in the future and delivers positive tourism outcomes for Queensland's diverse regions;

• working collaboratively with DSDTI to implement the Advancing Tourism 2016-2020: Growing Queensland Jobs strategy and the Growing Tourism, Growing Tourism Jobs policy. This included collaboration with the Attracting Tourism Fund and the Growing Tourism Infrastructure Fund; and

• playing a key role in supporting industry resilience and recovery and helping to mitigate against long-term negative impacts of industry challenges and crises including the COVID-19 pandemic.

Strategic partnerships with government and industry continue to be a key priority. TEQ’s partnerships with state, local and federal governments are critical in delivering government objectives and commitments to the community. Industry and commercial partnerships provide Queensland with the ability to actively pursue High Value Travellers in key source markets and ensure Queensland experiences deliver on consumer expectations.

Objectives and performance indicators

TEQ focused on four key objectives in 2019-20, as shown in the overview on page 5. The objectives were delivered by:

• Marketing and promoting tourism in Queensland; • Tourism experience and destination development; • Working to identify, attract and promote major events; • Providing support and leadership to Queensland’s tourism industry; • Working in partnership with other Queensland Government agencies to progress portfolio priorities; and • Undertaking research and analysis of the Queensland tourism industry to inform strategic decision making.

A range of performance indicators measure the extent to which TEQ is achieving its objectives (refer to the overview on page 5). Performance indicators are arranged into two groups - service delivery measures and industry outcome measures - based on the degree of influence TEQ has in affecting the outcome.


Service areas and service standards

TEQ committed to deliver seven service standard measures in the 2019–20 Queensland State Budget - Service Delivery Statements. Results against each measure are detailed in the Annual Performance Statement 2019-20. Service area objective

To achieve economic and social benefits for Queensland by growing the tourism and events industry in partnership with industry and government. Service area description

TEQ’s core functions are marketing, event acquisition and experience development. Table 4: Annual Performance Statement 2019-20

Service Area: Tourism and Events Queensland Notes 2019-20 Target

2019-20 Actual

Service standards Effectiveness measures Overnight visitor expenditure generated by events within the TEQ portfolio

1 $400 million $354 million

Direct visitor nights generated by events within the TEQ portfolio 1 2,328,500 2,306,227

Direct and incremental spending generated by events within the TEQ portfolio 1 $500 million $434 million

Visitors to Queensland generated by events within the TEQ portfolio 1 300,000 244,577

Publicity and promotional value generated by TEQ activities 2 $275 million $460 million

Value of collaborative support 3 $28 million $38 million

Efficiency measure Efficient leverage of regional and strategic partnership investment

4 1:1 1:1

Notes:

1. TEQ was on schedule to exceed 2019-20 target for events-related measures prior to the outbreak of COVID-19 and subsequent public health actions. The 2019-20 actual results reflect the impact of reduced event attendance for those events that took place, and the impact of event postponements or cancellations from March 2020.

2. This service standard measures TEQ's success in leveraging activity to maximise exposure of the Queensland brand, events, destinations and experiences globally, through the value of international and domestic publicity generated by TEQ activity through print, online and broadcast media. TEQ’s publicity and promotional activities were impacted by the Australian bushfires and the outbreak of COVID-19, with a number of activities postponed or cancelled. Despite this, the 2019-20 target was achieved due to one particular broadcast activity in China which generated almost $192 million publicity value for Queensland in March and April 2020. These outcomes are difficult to predict and apply to future activity.

3. This service standard measures TEQ's success in securing collaborative support for activities to improve the outcomes that can be achieved. Collaborative value includes all direct, indirect, contra and in-kind partner support (valued in writing from partners and/or forming part of a formalised agreement) for tourism and event marketing and destination and experience development projects.

4. This service standard measures the ratio of TEQ’s investment to regional and strategic partner investment, as an indicator of TEQ's ability to leverage its budget to enable additional activity to be conducted.


Strategic priority highlights 2019-20 TEQ progressed the following key activities during 2019-20, in addition to COVID-19 response and recovery initiatives.

Convert high value travellers from priority markets | Marketing the best address on Earth

Brand strategy

TEQ has undertaken an extensive strategic review of the Queensland tourism brand with the aim to evolve Queensland’s global brand strategy and develop a distinct positioning to overcome competitive challenges, meet emerging consumer needs and achieve visitor expenditure growth.

The 2019 review identified global consumer trends driving demand for purpose-led brands that reflect personal values and transformational travel experiences, providing travellers with the opportunity for personal growth and the ability to make a positive contribution whilst travelling.

In alignment with these changes in the global consumer and market landscape, Queensland is moving towards a purpose-led brand position to ‘Travel for Good’. This simply means travel is good for travellers’ wellbeing and travel makes a positive impact on the world. This is an inclusive invitation for all travellers to participate, contribute and belong – and to ultimately leave Queensland renewed, restored and regenerated.

Implementation of the brand strategy in 2019-20 has included development of a new global creative platform for a phased launch in 2020-21 and significant work to develop an Experience Design Strategy and Toolkit to be launched in 2020-21. The brand strategy will be implemented over a three-phase approach, across a 15-year horizon between 2020 and 2035.

Queensland.com

In early June TEQ launched the brand-new Queensland.com to market Queensland’s tourism and event experiences. The new-look Queensland.com was redesigned and rebuilt using the world-leading Adobe platform and will deliver personalised experiences for aspiring travellers all around the world. This major milestone in TEQ’s Digital Transformation Project followed the transition to TEQ’s new email platform in March 2020, opening up personalised marketing opportunities, and complemented the launch of the ‘Good to Go’ campaign.

Find Your Perfect Next

In order to leverage major campaign activity undertaken in the first half of 2019, TEQ launched an integrated campaign in July 2019 to connect with High Value Travellers and keep Queensland front of mind. Retail activity was pursued with partners to convert awareness into visitation. The ‘Find Your Perfect Next’ campaign drove the state’s key messages through television, digital and social media channels and included a new television commercial promoting the state’s It’s Live! in Queensland events calendar.

Campaign tracking research undertaken in November 201940 found that ‘intention to visit Queensland in the next six months’ increased by two per cent to 39 per cent compared to June 2019, and held at 78 per cent for ‘intention to visit in the next 12 months’. Of those surveyed, Queensland was the most frequently nominated destination when thinking about a holiday or short break (at 30 per cent, compared to New South Wales at 18 per cent, Victoria at 14 per cent, Tasmania at five per cent, Bali/Indonesia at three percent and Europe/UK at two per cent). Almost two thirds (65 per cent) of those who saw the campaign would consider visiting in the next 12 months, compared to 51 per cent who had not seen the campaign.

40 Source: Kantar Public, November 2019.


Great Barrier Reef campaigns

scUber

In May 2019, TEQ together with Uber launched ‘scUber’ - the world’s first rideshare submarine on the world’s greatest natural wonder, the Great Barrier Reef. The scUber campaign aimed to grow positive awareness and change the conversation about the Great Barrier Reef in key western source markets by showcasing the diversity and resilience of the reef in an authentic way. The scUber campaign was a direct outcome of TEQ’s Great Barrier Reef Framework 2018-2025, and the priority action of growing positive awareness and demand for Great Barrier Reef experiences.

The campaign generated 4,320 pieces of live global news coverage, reaching an estimated global audience of 4.5 billion people. The publicity coverage was valued at over $130 million.

In 2019-20 TEQ developed programs and activities to continue the legacy of scUber and ensure audiences are educated and inspired by the Great Barrier Reef including:

• October 2019: Great Barrier Reef Panel Session at the Australian Society of Travel Writers event in Cairns; • November 2019: Coral Spawning Media Event; and • April 2020: Facebook livestream with Dr David Wachenfeld, Chief Scientist at the Great Barrier Reef Marine Park

Authority (GBRMPA) and diver from Reef HQ in Townsville.

Great Barrier Reef campaign – Europe

To progress priority actions of the Great Barrier Reef Framework 2018-2025 within European markets, TEQ in partnership with all seven reef RTOs, Cathay Pacific and trade partners targeted High Value Travellers in the German cities of Munich, Frankfurt, Dusseldorf, Hamburg and Stuttgart through out-of-home, digital, print, online, content creation and point of sale. The campaign was part of a planned multi-year partnership from November 2019 to March 2021 to promote Queensland as the perfect destination to escape the Northern Hemisphere winter and highlight the Great Barrier Reef as well as its adjoining rainforest, wildlife, islands and beaches, outback and Indigenous experiences as a must-see on any itinerary to Australia. As part of the campaign an agent training roadshow was delivered, with more than 1,800 agents trained.

Queensland Government China Mission

Queensland was showcased across China in September 2019 as part of a Queensland Government trade mission to the state’s largest international source market. A number of major tourism initiatives were announced during the mission including:

• The signing of a new Memorandum of Understanding (MOU) between TEQ and the world’s largest online payment platform, Alipay, placing Queensland on track to be the most payment-friendly Australian state for Chinese visitors;

• A tourism campaign with Asia’s largest online travel agency, Ctrip, which captured the attention of more than 13 million Chinese commuters when the subway station in Shanghai came alive with images of Queensland; and

• An interactive game launched in Guangzhou as part of TEQ’s ‘Reefocus’ tourism campaign aimed at sparking children's curiosity of the Great Barrier Reef. The campaign targeted Chinese families who are interested in 'travelling with purpose' and the educational opportunities offered by the Great Barrier Reef.

Dive market

Following significant 2018-19 activity to market Queensland’s diving experiences, leveraging the launch of the HMAS Tobruk, TEQ’s United States team undertook a marketing campaign with PADI Media Group (Scuba Diving and SportDiver outlets) and About Australia, a Key Distribution Partner in the North American market, to increase destination awareness of Queensland and visitation to the Great Barrier Reef. The campaign included out of home (billboards), digital and social media, video content, custom emails, banners and e-newsletters, which delivered more than 1.67 million impressions.

TEQ’s US team also exhibited at the DEMA Show 2019 – the world’s largest trade-only event for companies in the scuba diving, ocean water sports and adventure/dive travel industries. Thousands of dive and travel industry professionals from around the world attended the event, and TEQ was there with industry partners to showcase Queensland’s diving experiences, securing business for 2020-22.


Maximise the value of Queensland’s events calendar

Guided by the TEQ Events Strategy 2025, TEQ aims to build Queensland’s events calendar by investing in events that drive visitation and expenditure, as well as enhancing the profile of Queensland as a world-class event host and fostering community pride. Major, business and destination events all play a vital role in attracting visitors to Queensland and supporting the state's tourism industry.

During 2019-20, TEQ supported 192 events across the major, business and QDEP portfolios including 68 major events, 26 business events and 98 QDEP events. Of these, 122 events were staged prior to COVID-19 restrictions coming into effect, four were staged virtually, 42 were cancelled and another 24 postponed.

The It’s Live! in Queensland events calendar was curated to contribute an estimated $880 million in economic benefit to Queensland in 2020. However, the ban on mass gatherings in Australia effectively brought the events industry to a standstill, with the road to recovery remaining uncertain around the impacts of COVID Safe measures on the staging of future events and their strong record in attracting visitors to Queensland. Up until March 2020, TEQ’s portfolio of supported events continued to deliver on its growth forecast against the previous corresponding period. Anchor events such as the 2019 Gold Coast Marathon, Toowoomba Carnival of Flowers, Supercars Gold Coast 600 and Townsville 400, and Woodford Folk Festival contributed strong growth to the visitor economies for their host regions.

In 2019-20, TEQ’s investments in sport events continued to deliver on Gold Coast 2018 Commonwealth Games legacy outcomes – with the Gymnastics Clubs Carnival on the Gold Coast recording a strong second year in participation and the staging of the UCI Track World Cup in December 2019 at the Anna Meares Velodrome. In January 2020, Brisbane hosted the group stage of the inaugural ATP Cup with the Australian tennis team attracting strong crowds and television audience. Held alongside the Brisbane International Women’s tournament, the January event provided Australia with a diverse line up of tennis stars second to the Australian Open Grand Slam. In February, the NRL All Stars returned to Queensland, playing to a near capacity crowd on the Gold Coast to celebrate the Year of Indigenous Tourism.

QDEP continued to invest into the growth of regional visitor economies. Three rounds of funding were approved for events planned up to September 2021, with 60 per cent of these events located outside of south east Queensland.

The Business Events Investment Program, through its Acquisition and Leveraging Fund, continued to support the industry’s success in securing future events, including the 2022 UNI Global World Conference in Brisbane and the 2022 XXV Biennial Meeting of the International Society for Eye Research on the Gold Coast. In 2019-20, international incentive travel continued to support Queensland through events such as the AstraZeneca Incentive Travel Group which went to Cairns and the Great Barrier Reef in October 2019.


Connect consumers with meaningful and exceptional experiences

Experience design

TEQ’s Experience Design program centres around supporting tourism and events operators to evolve and adapt to a market with changing needs and values, and how these are reflected through the new Queensland brand direction. Through optimising their experience delivery, operators will be better positioned to recover from COVID-19 and respond to the changing needs of their guests.

TEQ has commenced development of a Guest Experience Guide in line with TEQ’s travel for good brand positioning, aimed at supporting operators to design and deliver exceptional transformational experiences for their guests through the five stages of travel41. The Guest Experience Guide will be available to tourism and events businesses in 2020-21.

The Best of Queensland Experiences Program

Since its development, the Best of Queensland Experiences Program (BOQEP) has been guiding the Queensland tourism industry to deliver exceptional customer experiences, create positive word of mouth, help attract more visitors, grow expenditure and increase market share. The program is based on an independent set of criteria that reflects consumer expectations and best practice industry standards in the current market. Operators are provided with an individual report containing valuable consumer insights to drive improved business performance and benefit from consumer advocacy and marketing prioritisation opportunities.

In 2020, 2,394 operators with an active ATDW listing were assessed as part of the program. Of these, 1,368 (57 per cent) were identified as a Best of Queensland Experience. This represents an eight per cent increase in operators meeting the program criteria compared to March 2019, and this is a number TEQ seeks to continue to grow.

With the program currently paused due to COVID-19, a comprehensive review of the BOQEP is taking place to ensure the program and assessment criteria are relevant to the needs of the future traveller, and the intention is to re-launch the program in 2021.

41 The five stages of travel include dreaming, planning, booking, experiencing, and sharing.


Grow aviation access and capacity

Airline access from key and emerging international markets is critical to the competitiveness of Queensland’s tourism industry and the state’s economy. Prior to the COVID-19 pandemic, TEQ progressed work under two key aviation attraction initiatives:

1. Attracting Aviation Investment Fund

Since February 2015, the Attracting Aviation Investment Fund (AAIF) has secured 29 new and/or expanded services to Queensland. The fund has provided an additional 3.3 million airline seats and injected more than $2.4 billion in OVE to the Queensland economy. Services have been secured from major international source markets including China, Hong Kong, Canada, Japan, Thailand, Taiwan, Malaysia, New Zealand, South Korea, Singapore, the USA; and domestically from Uluru.

In 2019–20, AAIF support was confirmed for a number of services which have not commenced due to the global and local travel restrictions imposed as a result of COVID-19.

In support of previously announced AAIF projects, TEQ implemented a number of marketing activities in 2019-20 including:

• A cross-channel digital marketing campaign from November 2019 to March 2020 in partnership with Qantas to build awareness, consideration and bookings on the new non-stop Qantas services from Chicago and San Francisco to Brisbane. This campaign generated 90.4 million impressions across digital, social media, and out of home advertising (including subway station and interior train wraps in Chicago). A VIP media event was held in San Francisco for the inaugural flight in February 2020. The first flight arrived in Brisbane on 9 February and continued until the service was suspended on 22 March 2020.

• Trade and consumer campaign activity in partnership with Jetstar Airways and Destination Gold Coast to promote the launch of Jetstar’s new direct service between Seoul and the Gold Coast which commenced in December 2019 and was suspended on 6 March 2020. As part of the launch project, Korea’s Channel A travelled to the Gold Coast to film an episode of their new drama series, ‘Yoo Byul Na! Chef Mun’ in January 2020, and with support from TA, the series featured some iconic Gold Coast locations and products. The Gold Coast episode aired in March 2020, with an expected total audience of 10 million, and an advertising equivalent value of more than AUD500,000.

2. Connecting with Asia

The Connecting with Asia (CWA) program 2017-20 was a consortium-led initiative which sought to attract High Value Travellers from China to Queensland, maximise aviation access opportunities and grow Queensland’s market share of Chinese visitation to Australia.

Key projects for 2019-20 included ‘Southern Queensland and Beyond’ and ‘Project 88’. The CWA funding program achieved strong success in both projects.


Southern Queensland and Beyond

In its concluding year, the 'Welcoming China to Southern Queensland and Beyond' project contributed approximately $61.29 million42 in OVE to the state’s economy and supported a total of 588 jobs43 during 2019-20.

Aviation partners China Eastern Airlines and China Southern Airlines operated seasonal increases in response to strong load factors between China and Brisbane, including:

• China Eastern Airlines fluctuated between four and seven services weekly on the Shanghai-Brisbane route, with a seasonal increase to nine services weekly during the Chinese New Year 2020 period. Load factors exceeded targets, operating at 85 per cent capacity.

• China Southern Airlines operated daily services on the Guangzhou-Brisbane route, with an additional three services per week (seasonal increase) between 15 December 2019 and 9 February 2020. Load factors exceeded targets, operating at 92 per cent capacity.

Project 88

TEQ continued to leverage its competitive advantage through trusted relationships with key partners Alipay and UnionPay, and to pioneer tourism opportunities through Chinese payment platforms.

The second phase of the CWA Project 88 pilot program sought to make Queensland a more payment-friendly state for Chinese visitors, to drive visitor expenditure through Chinese cashless payment platforms, and generate exposure for Queensland through the Alipay lifestyle app.

Key achievements under the project include:

• Industry engagement - a total 5,148 businesses were engaged through the program including 208 participants at four industry expos and three workshops across Cairns, the Gold Coast, Whitsundays and Brisbane. More than 430 Queensland businesses have become Chinese payment ready, meaning they’re better equipped to engage with Chinese travellers.

• Chinese payment educational resources - leading educational pieces were designed to increase operators’ understanding of, and showcase the tourism marketing opportunities available through, Chinese payment platforms.

• International and domestic marketing campaigns - through cooperative marketing agreements, TEQ leveraged Alipay and UnionPay’s platforms to better connect with Chinese High Value Travellers and drive visitor expenditure for Queensland. This resulted in TEQ increasing Queensland content and product exposure across the Chinese digital platforms, exceeding the performance target by 12 per cent.

TEQ was named Alipay’s Partner of the Year in the Australia-New Zealand region at the Chinese payment platform’s annual e-commerce expo in Sydney.

42 OVE estimate calculated from a number of data sources including: Bureau of Infrastructure, Transport and Regional Economics, March 2020; OAG Schedules Analyser, March 2020; Tourism Research Australia, International Visitor Survey, year ended September 2019; and Department of Home Affairs, Overseas Arrivals and Departures, year ended September 2019. 43 Jobs estimate calculated based on data sources: Tourism Research Australia, State Tourism Satellite Accounts 2017-18; and Tourism Research Australia, International Visitor Survey, year ended September 2019.


Optimise partnerships

Trade partnerships

Trade partners play a critical role in TEQ’s global consumer marketing activity, facilitating the ‘booking’ phase in the consumer journey to travel. In 2019-20 TEQ worked with a wide range of partners, connecting and showcasing Queensland experiences to the consumer, to directly drive OVE for Queensland.

Capitalising on inspirational marketing campaigns, trade partners provide the vital link to conversion through booking platforms, enabling OVE outcomes to be maximised.

TEQ works with numerous trade partners under TEQ’s brand message across multiple distribution channels involving airlines, retail, wholesale and online platforms. Partners in 2019-20 included:

• Qantas and Virgin Australia; • Flight Centre and HelloWorld; and • Ignite Travel Group and TripAdvisor.

COVID-19 impacted global marketing efforts across the organisation and the broader tourism and travel industries. Trade partners were greatly impacted over the end of the financial year, however prior to that there were strong year on year outcomes from activity undertaken in partnership. During the recovery phase, as intrastate and interstate travel becomes possible, TEQ will recommence working with key trade partners to promote and convert travel intention to bookings for Queensland operators and experiences.

Alongside trade partnerships, an important component of the TEQ strategy is connecting consumers directly with Queensland operators and encouraging direct bookings. TEQ’s marketing campaigns have a primary call to action to Queensland.com, which provides consumers a direct booking path through the ATDW online operator listings.

Trade events

TEQ coordinated a series of Queensland on Tour trade missions in 2019-20, focused on facilitating face-to-face meetings, training sessions and networking opportunities between Queensland tourism operators and wholesalers, key distribution partners and travel agents who are crucial in influencing the travel decisions of consumer markets in key international markets.

• Queensland on Tour Japan 2019 was hosted in Osaka and Tokyo from 3 to 6 September 2019, with 26 Queensland operators meeting with approximately 300 partners from the Japanese tourism trade;

• Queensland on Tour North America 2019 saw 14 Queensland operators connect with 155 trade partners via face-to-face meetings;

• Queensland on Tour Europe 2019 comprised 33 Queensland operators and 204 key trade partners; and • Queensland on Tour UK 2019 saw 29 Queensland operators connect with 102 trade partners via face-to-face

meetings and an additional 674 partners via an online training portal.

The 2019 Destination Showcase India was delivered in partnership with Visit Victoria and held in Mumbai and New Delhi from 13 to 14 August 2019. Fourteen Queensland tourism businesses met with around 190 partners and agents from the India travel trade across the two day event. The event followed TA’s Australia Marketplace India, enabling many of the Queensland participants to attend both events.

The Focus Queensland | Digital Marketplace 2019 trade event was hosted in Chengdu from 7 to 9 November 2019, and saw 21 Queensland tourism businesses meet with 24 buyers from 11 cities across China, with a focus on digital trade partners including online travel agents and emerging platforms. The event preceded TA’s Australia Marketplace China, enabling many of the Queensland participants to attend both events.

TEQ hosted a China Industry Advisory Group (CIAG) meeting in Cairns in October 2019 with 12 senior representatives from key trade agencies in China participating. The group shared valuable insights and travel trends for both Australia and Queensland with the tourism industry and participated in a familiarisation of the region. The CIAG members indicated that the Cairns and Great Barrier Reef experience offering was compelling and provided recommendations on how to leverage the Great Barrier Reef as a unique selling point for Queensland to their customers.


Year of Outback Tourism

Premier Annastacia Palaszczuk declared 2019 the Year of Outback Tourism in Queensland, a Government initiative to reinforce the state’s position as a world-leading tourism destination and support economic, social and cultural growth in Outback Queensland.

TEQ worked in partnership with government stakeholders, OQTA and industry to leverage the Year of Outback Tourism in 2019 and celebrate the Queensland Outback spirit through the promotion of Outback Queensland tourism, history, culture, events and achievements.

TEQ supported the Year of Outback Tourism with dedicated campaign activity to encourage visitors to Outback Queensland and assist regions facing challenges due to the long-running drought. Initiatives comprised:

• Media activations including live weather crosses showcasing a number of Outback events; • An Outback Events Guide featured in newspaper lift outs; • Retail campaigns with Sunlover and Qantas; • Coordination of an Outback Queensland-themed Queensland Government pavilion at the Royal Brisbane Show; • An Outback on Tour Paleo Study Mission to learn industry best practice management from North America’s

premier Paleo tourism attractions; and • A calendar of iconic events throughout Outback Queensland.

The success of the Year of Outback Tourism is demonstrated with visitor numbers to Outback Queensland surpassing one million for the first time ever in the year ended June 2019, and operators throughout the region participating in marketing activities to drive more visitors in the future.

Initiatives proved so successful they were extended into 2020 with even more events being delivered to showcase the extraordinary Outback destinations and support rural and remote communities. Outback Queensland welcomed 1.1 million visitors in the year ended March 2020, spending $703 million and providing vital support to local economies.

Year of Indigenous Tourism

The Queensland Government declared 2020 as the Year of Indigenous Tourism and committed $10 million over two years to create tourism jobs for Aboriginal and Torres Strait Islander Queenslanders and to position the state as the nation’s leader in Indigenous tourism.

Indigenous culture and stories have been an integral part of Queensland’s tourism industry, attracting people from all around the world to learn and experience more about the world’s oldest living cultures. In the year ended March 2020, 444,000 overnight visitors to Queensland took part in an Indigenous experience such as visiting an Aboriginal art gallery or festival, visiting an Aboriginal cultural site or community, or taking a tour with an Indigenous guide or ranger44.

The Year of Indigenous Tourism sees Aboriginal and Torres Strait Islander tourism experiences take centre stage to profile and further develop Queensland's Indigenous tourism offerings and capitalise on growing demand.

Under the program, a range of support is available for Aboriginal and Torres Strait Islander tourism businesses to further develop their experiences and grow their business including:

• the newly launched Indigenous Innovation and Entrepreneurs Program; • a new dedicated Indigenous Tourism Development Service; • the Growing Indigenous Tourism in Queensland Fund; and • development of an Indigenous tourism strategy for south east Queensland.

Following the events of 2020, in July the Year of Indigenous Tourism was officially extended into 2021 to ensure the opportunity to properly celebrate the unique cultural experiences that Queensland has to offer is maximised. TEQ will continue to support the Year of Indigenous Tourism in partnership with QTIC, DSDTI and industry to showcase Queensland’s Indigenous tourism offerings and experiences.

A range of activities to support the promotion of Indigenous tourism experiences in 2020-21 is shown in Table 5.

44 Source: Tourism Research Australia, International and National Visitor Surveys, year ended March 2020. The domestic visitor number is based on a three-year average due to small sample size.


Table 5: TEQ Year of Indigenous Tourism Key Projects

Communications and marketing

Development of new Indigenous content, to be showcased on queensland.com and through social media

Experience programs Heighten the inclusion of Indigenous experiences in TEQ Experience Programs (famils)

Distribution Assist Indigenous tourism experiences to become export ready and participate in trade events

Festivals and events Provide strategic support to grow existing events and festivals

Experience development Support Indigenous tourism experiences to participate in the BOQEP, with particular focus on customer experience development and incorporation of Travel for Good into their products

Destination support Funding to support RTOs to engage with Aboriginal and Torres Strait Islander entrepreneurs and organisations to support their progress within the tourism industry

Government partnerships and DestinationQ

DestinationQ is a partnership between DSDTI, TEQ and QTIC which facilitates ongoing engagement between industry and government to deliver on key priorities to drive growth and jobs in Queensland. The annual DestinationQ forum is Queensland’s leading tourism industry event, bringing industry and government together to connect, collaborate and share knowledge to grow the visitor economy.

The 2019 DestinationQ forum was held on the Sunshine Coast in November 2019. The conference included speakers from Queensland, across Australia and internationally who drew on their expertise and experience in the tourism sector to inspire and inform the Queensland tourism industry. Over two days, 650 delegates attended the keynote presentations, panel discussions and a choice of four masterclass sessions relating to the ‘Tourism beyond 2020: Innovating for the future’ theme.

A series of industry panels over both days examined a range of challenges and opportunities that the industry faces and provided case studies and insights for tourism businesses and professionals to learn from. Demand for the DestinationQ annual forum remains strong with 2019 delegate numbers on par with the 2018 forum held on the Gold Coast. Participant satisfaction with the forum was strong at 89 per cent, and also on par with attendee satisfaction for the 2018 forum.

In the lead up to DestinationQ, over 150 business leaders, employers, government representatives, tourism organisations, Native Title holders and community organisations gathered as part of QTIC’s Destination IQ to discuss strategic opportunities for First Nations tourism in Queensland and to launch the First Nations Tourism Potential Plan.

Following DestinationQ, the annual Queensland Tourism Awards 2019 were held with more than 900 industry professionals gathering to celebrate the state’s best tourism operators. A total of 83 awards were presented across 28 categories including two People’s Choice Awards.

In collaboration with government and industry, TEQ contributes towards a range of actions under Destination Success: the 20-year plan for Queensland Tourism and also participates in the Australian Standing Committee on Tourism (ASCOT) and Tourism Ministers’ Meeting process.

Industry Media Agency for Tourism and Events

TEQ launched a new industry media agency in May 2020 that allows Queensland’s tourism and events businesses to plan, book and deliver advertising activity which leverages TEQ’s media buy, partnerships and research.

The Industry Media Agency for Tourism and Events (IMATE) provides tourism businesses and event proponents with greater insights into TEQ’s marketing activities, media strategy and campaigns, and access to learning resources including a comprehensive marketing toolkit. The service also provides industry with opportunities to align with and leverage TEQ’s media activity, and media planning and buying services to maximise return on media investment.

Further information regarding the services IMATE provides and how to get involved is available at imate.queensland.com.


Partnership with EventScotland

TEQ signed an MOU with EventScotland in November 2019. The MOU will see the two organisations work in collaboration over the next three years sharing information and insights into the securing and delivery of major events and opening up potential staff exchange opportunities.

Great Barrier Reef partnerships

The aspirational goal of TEQ’s Great Barrier Reef Framework 2018-2025 is that by 2025 Queensland’s Great Barrier Reef tourism industry will be recognised as a world leader in responsible reef tourism and best practice reef interpretation. One of the actions for achieving this is TEQ’s proud partnership with GBRMPA and the Association of Marine Park Tourism Operators (AMPTO) to deliver the Master Reef Guides Program, which is led by GBRMPA.

In 2020, the program was recognised internationally by the Commonwealth Blue Charter as the first of its kind working on the issue of coral reefs and as one of Australia’s commitments to achieving sustainable ocean development. As at February 2020 there are 63 Master Reef Guides across the marine park.


High performing organisation TEQ has a strong planning and accountability framework in place and seeks to continually improve its operational capability while maintaining efficient business operations and organisational governance and accountability. Workforce planning and performance

TEQ is committed to attracting and retaining a highly skilled team to achieve set objectives. The following activities and programs undertaken in 2019-20 were designed to enhance organisational effectiveness:

1. Performance and capability

TEQ’s performance framework requires each team member to achieve their annual goals and behaviours. Individual performance goals are aligned to strategic priorities and the key performance indicators outlined in TEQ’s annual plan, and the behaviours are identified from TEQ’s capability framework.

TEQ’s capability framework clarifies the behaviours desired of all employees and leaders to build on our success and to shape our desired culture. These behaviours also assist TEQ to improve the focus and alignment of key people practices, in particular selection for behaviour fit, performance development, reward and recognition, and specialised learning programs to develop our people.

2. Talent management

TEQ’s talent management framework identifies high performers with high potential to ensure TEQ retains and develops these employees. The framework also identifies business critical roles to ensure that successors to these positions are identified and upskilled to enable a smooth succession if required.

In 2019-20 an Executive Readiness Pilot Program was implemented as part of TEQ’s commitment to talent management, in particular to build leadership capability and ensure a strong pipeline for the future.

3. Wellness

TEQ’s Healthy Wealthy and Wise program offers optional benefits and a range of information to assist employees to actively seek a lifestyle that promotes wellness. In 2019-20 this included skin cancer checks, flu vaccinations, yoga sessions and the Salvation Army Christmas corporate volunteering program.

A number of initiatives are offered to employees that provide a degree of flexibility to enable them to adapt their work arrangements to suit family responsibilities including:

• part-time arrangements; • job sharing; • working virtually policy; • purchasing additional leave; and • provision of parenting facilities.

4. Employee Relations Framework

On 20 March 2020, the Industrial Relations Commission approved the Tourism and Events Queensland Certified Agreement 2019 for a three year period. TEQ also applies the following industrial instruments:

• Tourism and Events Queensland Award – State 2015; and • Common law contracts.

At an organisational level, all People and Leadership initiatives are developed with the core philosophy that employees are an integral part of the success of any initiative. As such, employee working parties are drawn from relevant TEQ areas to be involved in the design and implementation of initiatives.


5. Workforce

At 30 June 2020, there were 145 full-time equivalent employees (FTE) employed by the TEQ parent entity and the Tourism and Events Queensland Employing Office, comprising of:

• 19 FTE employed by Tourism and Events Queensland parent entity; and • 126 FTE employed by Tourism and Events Queensland Employing Office.

In addition, there were 6 FTE employed by Gold Coast Events Management Ltd, a controlled entity. Excluding Gold Coast Events Management Ltd, TEQ’s permanent separation rate was 8.3 per cent.

Overall employee engagement for 2019-20 was 85 per cent, measured by TEQ’s annual employee engagement survey.

6. White Ribbon Accreditation

TEQ’s White Ribbon Working Group focused on a number of initiatives towards achieving accreditation during 2019-20, including training and reviewing policies.

On 29 April 2019, Communicare acquired White Ribbon Australia’s intellectual property and remaining assets. TEQ will continue the accreditation process with Communicare to become part of a global movement to create a society where all women can live in safety, free from violence and abuse.

TEQ is committed to preventing violence against women in all of its forms, supporting affected employees and promoting a safe and respectful workplace culture.

7. Sustainability

TEQ’s Sustainability Team (or ‘Green Team’) comprises representatives from all areas of the business who meet regularly to champion sustainability for TEQ. The team looks for opportunities to progress TEQ as a sustainable work environment, including social responsibility, environmental impact, cultural aspects and economic value of the organisation. A range of initiatives and internal activations were implemented throughout 2019-20 including a screening of the Great Barrier Reef Panel which was hosted and filmed on Heron Island as part of TEQ’s scUber campaign. TEQ’s Green Team has also continued to provide and educate the organisation on mixed recycling and composting in the Brisbane office, supported the development of TEQ’s Indigenous Participation Plan, implemented a Paper Light Policy to reduce the organisation’s impact from printing and to adopt digital alternatives, and continued to promote the Containers for Change refund scheme. The Green Team continues to provide guidance and support to encourage staff to adopt sustainable and socially responsible practices in the workplace and in their homes by promoting easy ways to reduce waste, consume consciously and positively contribute.


Statutory obligations

Public Sector Ethics Act 1994 TEQ’s Code of Conduct (the code) is aligned with the four ethics principles and values outlined in the Public Sector Ethics Act 1994. The code requires employees to adhere to the highest standards of ethical practice and conduct and provides each staff member with a clear understanding of what is expected of them in relation to their conduct. TEQ’s human resource management procedures and practices, including staff performance reviews, have been put in place in accordance with the code. Work Health and Safety Act 2011 TEQ’s Work Health and Safety (WHS) Committee continues to meet quarterly to facilitate compliance with the Work Health & Safety Act 2011. In 2019-20, TEQ:

• focused on improving the work, health and safety system and the culture of safety first in our workplace; • continued the program of refresher training for current first aiders; • continued to undertake WHS inductions for all new staff; • undertook training for WHS Committee members conducted by an external WHS expert; and • updated the TEQ Board on their responsibilities as ‘officers’ of the organisation and the organisation’s WHS

governance processes. With COVID-19 impacting workplaces from early 2020, all global TEQ teams worked away from their usual office location/s during the pandemic pending local conditions and restrictions. TEQ undertook a risk assessment in the Brisbane office and implemented measures to minimise exposure to employees including:

• following advice from Queensland Health and the Department of Housing and Public Works with respect to workplace arrangements;

• consulting with employees and management to ensure views were expressed and taken into account before decisions were made;

• working away from the usual office location during the height of the pandemic; • planning for a return to the workplace using a measured approach with a maximum 50 per cent capacity in the

workplace at any one time; • promoting physical distancing between employees; • arranging extra cleaning services during the day; and • displaying increased signage throughout the workplace.

Human Rights In 2019-20, staff from the TEQ Legal and People and Leadership teams attended training on the application of human rights principles to public entities. A review of all corporate policies and procedures was undertaken to ensure compliance with the Human Rights Act 2019. No human rights complaints were received during the reporting period.


Information systems and recordkeeping

TEQ has an Information Management Policy which incorporates the requirements of the Queensland Government Records Governance Policy.

TEQ uses Microsoft Teams as the main system for business-as-usual records, information storage and collaboration. MicroFocus Content Manager 9 (CM9/TRIM) is used for the storage of high-value, high-risk and permanent information.

TEQ has an assigned and dedicated role for information management responsibility.

There were no serious breaches of TEQ’s information security during the year.

Efficient business operations

TEQ continued to review its business operations during 2019-20 to identify cost savings and operational efficiencies. During the year, TEQ:

• Leveraged the existing Information and Communications Technology Strategy of mobile-first, Cloud-first, and collaboration-centric, to seamlessly transition to working from home, with staff using laptops and Microsoft Teams to remain fully productive and engaged;

• Developed a new Customer Relationship Management (CRM) Strategy to extend the existing system to act as an ‘All of TEQ’ contact management system. The project will continue into 2020-21 and will centrally store all contact information. This will lead to benefits in TEQ efficiency and deeper insights into customers based upon customer interactions;

• Moved to a fully outsourced payroll solution with existing payroll software provider Aurion, resulting in overall cost reduction;

• Increased automation within workflows to improve efficiencies and strengthen internal controls; and • Replaced all laptops which had reached the end of their useful life with new models with better performance,

battery life and security features. The project was implemented successfully in time for the COVID-19 work from home requirement.

Open data

The following reporting requirement is now published online through the Queensland Government open data portal https://data.qld.gov.au instead of being included in the annual report:

• Overseas travel.

In 2019–20, TEQ had no information to report for the Queensland Language Services Policy.

While TEQ engaged contractors during 2019-20, no consultants were used.

The reporting requirement for government bodies (Tourism and Events Queensland Board and Gold Coast Events Management Ltd) is published within this annual report, please refer to pages 46-48.

https://data.qld.gov.au/


Corporate governance

Our people

Executive management

In 2019-20, TEQ’s senior executive team comprised four Group Executives, led by the CEO, Leanne Coddington. Responsibilities of the Executive management team include:

Chief Executive Officer (Leanne Coddington)

• Provide leadership and direction to TEQ staff to deliver on TEQ’s objectives; • Establish strong relationships with key industry partners, government and business representatives and deliver

strategic benefits to Queensland; • Work with Queensland’s event organisers and tourism industry operators and assist them to grow through

cooperative and collaborative partnerships, as well as attract national and international tourism and event industry operators and trade partners to leverage the state’s unique experiences and destinations;

• Manage the development and implementation of current and long-term plans and objectives in accordance with the board’s directions to grow Queensland’s visitor economy; and

• Manage the operations of TEQ in compliance with the Act, board policies, strategic plan and budget.

Corporate (Group Executive – Nick Elliott)

• Support TEQ’s senior management and board in the delivery of the organisation’s operational, strategic, people, research and financial activities;

• Provide leadership and direction to corporate communications, ministerial and government relations activities across all areas of TEQ;

• Provide tourism research and insights to TEQ’s senior management and board to monitor industry performance and to identify emerging opportunities and trends; and

• As the Chief Financial Officer and Board Secretary, manage the organisation’s financial activities including reporting and financial planning.

The Corporate Affairs Group, consisting of the Corporate Communications and Ministerial and Government Relations teams, merged into the Corporate Group under the ongoing leadership of Nick Elliott following the resignation of Group Executive Corporate Affairs, Megan Saunders, who was on secondment up until her departure on 30 September 2019.

Events (Group Executive – John Drummond Montgomery)

• Deliver a world-class calendar of events for Queensland, guided by the Events Strategy 2025; • Identify, attract, develop, create and promote events that contribute to the Queensland economy, profile the

state and foster community pride; and • Attract people to experience the best address on Earth through optimising the value of Queensland’s events

calendar and leveraging the competitive advantage provided by Queensland’s unique event experiences.

Marketing (Group Executive – Michael Branagh)

• Lead the ongoing development and implementation of the Marketing Strategy 2025; • Develop and oversee a distinctive proposition for Brand Queensland in order to carve out a unique positioning in-

market and provide meaning to target traveller segments; • Promote customer experience best practice in line with evolving traveller needs and behaviours through the

Experience Framework, Hero Experiences and BOQEP; • Develop marketing activity that drives consumer demand for Queensland and delivers increased OVE for

industry; and • Evaluate marketing effectiveness to optimise outcomes, partnerships, content and marketing program activity.


Partnerships (Group Executive – Rick Hamilton 1 July 2019 - 21 February 2020; Interim Group Executive - Therese Phillips from 24 February 2020)

• Work in partnership with RTOs and industry to deliver their destination priorities, with a particular focus on maximising the opportunities that ‘Best of Queensland’ experiences and products offer consumers;

• Lead international source market engagement with trade and industry; • Partner with airports, airlines and industry to support aviation route development and increase route capacity; • Focus on strategic trade partnerships to deliver increased visitor expenditure to Queensland’s experiences and

products; • Manage cross-government projects in partnership with DSDTI, state, local and relevant federal government

agencies; • Lead TEQ’s engagement in DestinationQ, a partnership with DSDTI, QTIC and RTOs to ensure strong collaboration

and communication across the network; • Lead the development of the experience design framework and toolkit, and its implementation with industry;

and • Work in partnership with stakeholders to support Indigenous tourism experience and event development.

Figure 8: Organisational chart for 2019-20

Marketing Partnerships

Strategy, Innovation Destinations

& Performance

Creative & Content International Markets

Program Delivery Strategic Projects &

Partnerships

Platforms, Media & Partners

Aviation & Trade

Experience Program

Board of Directors

Chief Executive Officer

Events

Major Events

Destination Events

Business Events

Stakeholder & Event Experience

Event Value Optimisation

Event Analytics

Corporate

Ministerial & Government

Relations People & Leadership

Corporate Communications

Finance

Information Technology Services

Legal

Strategic Development &

Research

Planning


Tourism and Events Queensland Board

Under the Tourism and Events Queensland Act 2012, the Chair and TEQ Board are appointed by the Governor in Council and are responsible to the Minister for State Development, Tourism and Innovation. As at 30 June 2020, TEQ’s Board had nine members including the Director-General of DSDTI.

Board appointments have regard to the person’s experience and expertise in strategy, business, financial knowledge, promotion and staging of events, and their knowledge of the tourism industry. Diversity is a key factor in board member selection. A board member holds office for a period of not more than three years, and a member may be appointed for no more than two consecutive periods.

TEQ’s Board is responsible for the overall performance of the organisation, which should be conducted in a way that is appropriate, effective and efficient, forming committees as appropriate.

Duties and responsibilities of TEQ’s Board include: • ensuring TEQ’s strategic direction is aligned to the needs of industry and the objectives of the Queensland

Government, and ensuring the organisation has sufficient resources allocated to achieve the objectives; • conducting meetings of the members (including its committees) and the affairs of the organisation having full

regard for the best corporate governance practices; • agreeing performance targets and monitoring performance; • approving the strategic direction and related objectives for TEQ; • considering and approving the annual budget, as proposed by management, ensuring that appropriate resources

are available to achieve business objectives; • ensuring business risks are identified and approving systems of risk management, regulatory compliance, internal

control and related policies to manage those risks; • monitoring the financial performance of the organisation, and reviewing and approving the annual financial

statements; and • determining and approving the level of authority to be delegated to the CEO and management.

Board performance

Each year the board and its committees conduct an evaluation of their individual and collective performance as part of their commitment to ongoing development.

There is continuing contact between the Chair and CEO to discuss major policy and strategic matters, especially when such matters are the subject of board interest or are likely to become so.

Board meetings

During the year six ordinary board meetings were held. In addition, one special board meeting was held due to COVID-19 crisis response and recovery.

TEQ strives to hold board meetings in regional areas in order for board members to connect and engage with RTOs, stakeholders and the local tourism industry. While in the regions, board members meet with local industry representatives to discuss issues and challenges they are facing, and receive feedback from tourism operators to help inform their decision making.

The October 2019 board meeting was held on the Fraser Coast, however additional regional meetings scheduled for early 2020 did not proceed due to the impacts of COVID-19. Three meetings were held in Brisbane (August and December 2019, and February 2020) and two were conducted virtually (April and June 2020). The special board meeting was also held virtually, in March 2020.


The names, positions and appointment terms for members of the TEQ Board are outlined in the following table.

Name Position Appointment Date End Date

Brett Godfrey Chair 14 September 2017 13 September 2020*

Nancy Bamaga Member 3 August 2018 2 August 2021

James Dixon Member

Deputy Chair

8 June 2017

3 August 2018

2 August 2018

2 August 2021

Karen Hanna Miller Member 3 August 2015

3 August 2018

2 August 2018

2 August 2021

Dr Sarah Kelly Member 3 August 2018 2 August 2021

Brenda LaPorte Member 3 August 2018 2 August 2021

Chris Mills Member 3 August 2018 2 August 2021

Johnathan Thurston AM Member 3 August 2018 2 August 2021

Director-General, DSDTI – Damien Walker Member Permanent ex-officio member under the Tourism and

Events Queensland Act 2012

* Mr Godfrey was reappointed by the Governor in Council on 10 September 2020.

Board committees

To foster good corporate governance and for the board to focus on strategy and performance management matters, the board delegates certain duties to board committees.

1. Audit and Remuneration Committee

The Audit and Remuneration Committee is governed by a Committee Charter and follows Queensland Treasury’s Audit Committee Guidelines. The Committee assists the board in fulfilling its corporate governance responsibilities in regard to:

• the reliability and integrity of financial information for inclusion in TEQ’s Annual Report; • compliance with legislative, regulatory, contractual, policy, industry standards, and good governance principles; • the integrity of TEQ’s internal control framework; and • safeguarding the independence of the external and internal auditors.

The Committee regularly reports to the board on its activities and recommendations.

Four Audit and Remuneration Committee meetings were held in 2019-20. The CEO, Group Executive Corporate, financial management staff and internal and external auditors attend Audit and Remuneration Committee meetings as requested by the committee. The committee also holds in-camera discussions with the auditors.


Chris Mills Chair 23 October 2018 2 August 2021

Karen Hanna Miller Member 23 August 2017

23 October 2018

2 August 2018

2 August 2021

James Dixon Member 23 October 2018 2 August 2021

Dr Sarah Kelly Member 23 October 2018 2 August 2021

Damien Walker Member 23 October 2018 2 August 2021


2. Events Committee

The Events Committee is governed by a Committee Charter and meets ahead of TEQ Board meetings to assess and consider event investment opportunities and make recommendations to the board. The committee assists the board in complying with the Tourism and Events Queensland Act 2012 and the Financial Accountability Act 2009 with regard to TEQ’s investment in major, business and destination events.

Six Events Committee meetings were held in 2019-20. The CEO, Group Executive Events, Group Executive Corporate and relevant TEQ staff attend Events Committee meetings as requested.


Karen Hanna Miller Member

Chair

18 August 2015

23 October 2018

2 August 2018

2 August 2021

Nancy Bamaga Member 23 October 2018 2 August 2021

Dr Sarah Kelly Member 23 October 2018 2 August 2021

Brenda LaPorte Member 23 October 2018 2 August 2021

Chris Mills Member 23 October 2018 2 August 2021

Johnathan Thurston AM Member 23 October 2018 2 August 2021

3. Aboriginal and Torres Strait Islander Committee

The Aboriginal and Torres Strait Islander Committee is governed by a Committee Charter and meets ahead of the TEQ Board meetings. The committee assists the board in guiding TEQ’s reconciliation activities and provides leadership and governance to Aboriginal and Torres Strait Islander experience development and messaging in Queensland.

The Aboriginal and Torres Strait Islander Committee was established in 2019-20 and held one meeting during the period.


Nancy Bamaga Co-Chair 10 December 2019 2 August 2021

Johnathan Thurston AM Co-Chair 10 December 2019 2 August 2021

Brett Godfrey Member 10 December 2019 2 August 2021

Karen Hanna Miller Member 10 December 2019 2 August 2021


Internal audit

TEQ’s internal audit function advises all levels of management and the board, through its Audit and Remuneration Committee, on TEQ’s systems of internal control and management of business risk. The internal audit function continuously reinforces management’s responsibility for effective internal controls and supports TEQ’s business objectives and the Audit and Remuneration Committee’s need for overall assurance on the quality and cost effectiveness of internal controls.

TEQ’s annual and strategic internal audit plan is developed with reference to, and is clearly aligned with, TEQ’s strategic risk profile, operational and financial risk assessments and TEQ’s assurance map. The plan is developed in consultation with the Audit and Remuneration Committee and management.

During the year the internal audit function:

• operated under an approved charter that is consistent with relevant audit and ethical standards and within a system designed to ensure the effective, efficient and economical operation of the function;

• worked in accordance with a board-approved annual and strategic internal audit plan; • conducted internal audits in the areas of international office financial and internal controls, Tourism Network

Funding grant acquittals, events benefits realisation, marketing performance framework and subsidiary financial controls;

• was independent of management and the external auditors; and • had due regard to Queensland Treasury’s Audit Committee Guidelines.

Deloitte commenced as TEQ’s internal audit service provider effective 1 July 2019.

Risk management

As required by the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2019, TEQ has a risk management system which is designed to enable effective identification and management of foreseeable risk associated with its activities. TEQ’s risk management framework includes a risk management policy and strategic and project risk register. The board and executive management team are committed to:

• ensuring TEQ has a robust internal culture and process that is capable of identifying and managing its risks;

• achieving its business objectives while managing the impact of significant risks it can meaningfully and realistically control;

• behaving as responsible and ethical corporate citizens, protecting TEQ, its employees, customers, contractors and their property from injury, loss or damage;

• finding the right balance between the cost of control and the risks that it is willing to accept as part of the business and industry environment it operates within; and

• protecting and enhancing the TEQ brands and assisting the tourism and events industry and stakeholders to protect and enhance the reputation of Queensland and its tourist destinations.

Risk management underpins TEQ’s planning and performance framework, comprising strategic planning, program delivery and project management activities. The TEQ internal audit function provides the board, Audit and Remuneration Committee, CEO and executive management with objective assurance on the effectiveness of TEQ’s risk management activities.

TEQ undertakes an executive risk workshop annually to review its strategic risk framework. Strategic risks are reported to the Audit and Remuneration Committee at each Committee meeting and to TEQ’s Board twice per annum.

External scrutiny

Each year, an external audit is conducted of TEQ’s consolidated financial reports and the financial statements of controlled entities. The Queensland Audit Office issued unqualified audit reports for the:

• TEQ consolidated financial statements for 2019-20 on 27 August 2020; • TEQ Employing Office financial statements for 2019-20 on 27 August 2020; and • Gold Coast Events Management Ltd financial statements for 2019-20 on 28 August 2020.

There were no material issues identified by external audit in 2019-20.


Government bodies

TOURISM AND EVENTS QUEENSLAND BOARD

Act or instrument Tourism and Events Queensland Act 2012

Functions The primary role of TEQ’s Board is to provide strategic direction, effective governance and risk guidance over TEQ’s affairs, ensuring it discharges its legislated responsibilities and performs its functions in a way that is appropriate, effective and efficient. The board forms committees as appropriate to delegate its powers, duties and responsibilities.

Achievements During 2019-20, the TEQ Board continued to guide the new Queensland brand strategy and its implementation including the appointment of a Creative and Content Panel to support TEQ’s marketing approach, and led the continued development of the It’s Live! in Queensland events calendar. The board also established the Aboriginal and Torres Strait Islander Committee to lead the inclusion of TEQ within the Queensland Government Reconciliation Action Plan.

In response to adverse impacts on the tourism and events industry from the COVID-19 pandemic, the board actively led and supported the organisation’s COVID-19 crisis and response activities, including the reprioritisation of skills and resources to assist the Queensland Government with the public health needs of the state.

The board set the strategic direction for the organisation through the 2020-24 Strategic Plan, with a focus on rebuilding consumer demand and aviation capacity.

TEQ's performance against the 2019-20 Service Delivery Statement measure targets is detailed on page 25.

Financial reporting The transactions of the entity are accounted for in the financial statements. The entity is not exempted from audit by the Auditor-General.


TOURISM AND EVENTS QUEENSLAND BOARD

Remuneration

Position Name Meetings/sessions attendance Approved

annual fee

Approved sub-

committee fees if

applicable

Actual fees

received

Chair Brett Godfrey Board: 7 Aboriginal and Torres Strait Islander Committee: 1

$35,000 N/A $35,000

Deputy Chair James Dixon Board: 7 Audit and Remuneration Committee: 1

$10,000 N/A $10,000

Member Nancy Bamaga Board: 5 Events Committee: 4 Aboriginal and Torres Strait Islander Committee: 1

$10,000 N/A $10,000

Member Karen Hanna Miller

Board: 7 Audit and Remuneration Committee: 4 Events Committee: 6 Aboriginal and Torres Strait Islander Committee: 1

$10,000 N/A $10,000

Member Dr Sarah Kelly Board: 7 Audit and Remuneration Committee: 2 Events Committee: 5

$10,000 N/A $10,000

Member Brenda LaPorte Board: 6 Events Committee: 5

$10,000 N/A $10,000

Member Chris Mills Board: 7 Audit and Remuneration Committee: 4 Events Committee: 5

$10,000 N/A $10,000

Member Johnathan Thurston AM

Board: 5 Events Committee: 4 Aboriginal and Torres Strait Islander Committee: 0

$10,000 N/A $10,000

Member Director-General, DSDTI Damien Walker

Board: 6 Audit and Remuneration Committee: 3

N/A N/A N/A

No. scheduled meetings/ sessions

Board: Ordinary board meetings: 6 Special board meetings: 1

Committees: Audit and Remuneration Committee meetings: 4 Events Committee meetings: 6 Aboriginal and Torres Strait Islander Committee meetings: 1

Total out of pocket expenses

$1,778.60


GOLD COAST EVENTS MANAGEMENT LTD

Act or instrument Corporations Act 2001

Functions Gold Coast Events Management Ltd trades as Events Management Queensland and operates the Gold Coast Marathon, an annual running event, and the Pan Pacific Masters Games, a biennial multi-sports masters event, both held on the Gold Coast.

Corporate governance

Kerry Watson resigned with effect from 31 July 2019 and Paul Donovan was appointed Chair effective 1 August 2019.

Achievements The principal activities for 2019-20 were to plan and stage the 2019 Gold Coast Marathon and plan for the 2020 Gold Coast Marathon (an annual World Athletics Gold Label running event held on the Gold Coast) and the 2020 Pan Pacific Masters Games (the world’s biggest biennial multi-sport masters event held on the Gold Coast). As a result of the cancellation of the 2020 events due to COVID-19, focus shifted to planning for the 2020 Virtual Gold Coast Marathon, managing the event cancellations and planning for future events.

Financial reporting The transactions of the entity are accounted for in the financial statements. The entity is not exempted from audit by the Auditor-General.

Remuneration

Position Name Meetings/sessions attendance

Approved annual fee

Approved sub-committee fees

if applicable

Actual fees received

Chair Paul Donovan 7 $27,634 (pro-rata)

N/A $27,634

Chair Kerry Watson 0 $9,500 (pro-rata)

N/A $9,500

Director Sara Carrigan OAM

8 $7,500 N/A $7,500

Director Tanya Diessel 8 $7,500 N/A $7,500 Director Dr Sarah Kelly 7 $7,500 N/A $7,500 Director Joell Ogilvie 7 $7,500 N/A $7,500 Director Benita Willis-

Johnson 8 $7,500 N/A $7,500

TEQ representative Director

Nick Elliott 8 N/A N/A -

No. scheduled meetings/sessions

8

Total out of pocket expenses

$214


Financial summary

The Reporting Entity

TEQ, constituted under the Tourism and Events Queensland Act 2012, is a statutory body within the meaning given in the Financial Accountability Act 2009 and is controlled by the State of Queensland which is the ultimate parent.

The consolidated financial statements include the value of all revenues, expenses, assets, liabilities and equity of TEQ and its controlled entities, the Tourism and Events Queensland Employing Office and Gold Coast Events Management Ltd.

Separate financial statements for TEQ controlled entities, Tourism and Events Queensland Employing Office and Gold Coast Events Management Ltd, can be obtained by contacting TEQ.

Financial Performance Overview Financial results 2019-20

The TEQ parent entity reported a break-even operating result for the 2019-20 financial year.

The consolidated entity reported an operating result of $1.3 million in 2019-20 entirely due to the result of TEQ’s controlled entity, Gold Coast Events Management Ltd. The controlled entity reported a profit due to the timing of recognition of income and expenditure associated with the two events that it operates, the Gold Coast Marathon and the Pan Pacific Masters Games.

Revenue

For the 2019-20 financial year TEQ had a consolidated income of $132.7 million, of which $121.8 million was grant funding from the State Government.

TEQ’s consolidated income decreased by 10 per cent to $132.7 million (2018-19: $147.7 million). This decrease was primarily due to the impacts of COVID-19 that resulted in the lapse of budgeted grant funding from the State Government to the Consolidated Fund in 2019-20 relating to paused marketing activity and event cancellations/suspensions in addition to lower co-operative marketing and event activity income during the second half of 2019-20.

Expenditure

Total consolidated expenses for 2019-20 were $131.4 million, of which $101.3 million was invested in marketing, development, event funding and support, and grants to RTOs. Consolidated marketing, development and events support expenses for 2019-20 totalled $58.6 million compared to $74.1 million for the prior year. The decrease primarily reflects paused marketing activity and event cancellations/suspensions in addition to the impact of a reduction in cooperative marketing and event activity with industry and other partners during 2019-20, both a result of COVID-19.

Consolidated employee expenses were $23 million. The majority of employees work directly on marketing, development, research and events promotion and staging activities, both in Australia and overseas.

Where applicable, further detail has been disclosed in the notes accompanying the accounts.


TOURISM AND EVENTS QUEENSLAND (CONSOLIDATED)

2015-16 $M

2016-17 $M

2017–18 $M

2018-19 $M

2019-20 $M

Grants and other contributions 101.9 107.7 119.7 127.0 121.8

Cooperative income 8.3 7.8 8.8 13.1 4.7

Other revenue 5.4 6.8 6.4 7.6 6.2

Total income 115.6 122.2 134.9 147.7 132.7

Marketing, development, events promotion and staging initiatives, and grant payments* 89.5 95.6 107.9 119.1 101.3

Employee and operations expenses (in Queensland and overseas)** 26.3 26.5 27.8 27.9 30.1

Total expenses 115.7 122 135.7 147.0 131.4 Marketing, development, events promotion and staging initiatives, and grant payments as a % of total income

77.4% 78.2% 80% 80.6% 76.3%

*Includes grants paid to RTOs and event funding instalments and excludes marketing, development and events promotion and staging employee expenses. ** The majority of employees work directly on marketing, development, research and events promotion and staging activities both in Australia and overseas. During the 2018-19 financial year, a number of established positions remained vacant. These roles have been filled and the full year employee costs are recognised in the 2019-20 accounts.


Tourism and Events Qu!eens.land

Consolidated Financial Report

For the year ended 30 June 2020



ConsoUdated Financial Re1port

Introduction

These financial statements cove.- rornism and Events Due-imsland ("lhB Corporation" or "TEQ•), and il8 controlled eotilies . lnformaliol'I has been provided for ~e consoUdated and parent el'ltity.

The Corporation. constituted u111der the Tourism and Ev11nts Q1111ensla.nd Act 2012 , is a statulory body within the meaning given in lhe Rnancial Accoumab;/ity Act 2009 a11d is controlled by the State of Que,ensland 'Mlich is lhe ultimate parent.

The head; office and principal pla~ of business ol the Corporation is:

l.evel 8

515 SI Pauls Terrace

FORTITUDE VALLEY QLD 4006

A description or the Corporation's objectives and its principal acli\/itles is l11duded in the Notes to the financial statements.

Sep.irate Statements tt;111e been prepared for the Co,poration'5 controlled enti til!!l , the Tourism and Events Queensland Employing Office and Gold Coast Events Management Lid, The Statements may be obtained on lhe Corpocation's website www.teg.queensland.com or by contacli11g the Corporabon.



Consolidated Flnanclall Report

Table of Contents

Financia Statements

Notes to the Financial stateme11ts

Certification

Statements of Comprehensive Income

Statements of Financial Position

Statements of Chan!}es in Equity

Statements of Cash Flows (indud in.g Noie& to the Statements of Cas!'I Flows)

Objectives and Principal Aciivilies of the Corporation

Note 1 Summary of S.gnillcant Accounlin91 Policies Note 2 Revenue Note 3 Marketing, Oeveropnient and Events Support Expenses Note 4 Grant Payme11ts Note 5 Employee Expenns Note 6 Other E)(penses Note 7 Receivables Note 6 Other Finam;ial Assets Note 9 Plant and Equipment Note 10 Payable5 Note 11 Accrued Employee Benefits Note 12 other Liabrlitie~ Note 13 Financiall lnsi,uments Note 14 Financaall Risk Mam19emenl Note 15 Fair Value Measl.lrement Note 16 CommitmenlS and Contingencies Note H Related Party Transactions Note 18 Key M,magemenl Personnel IKMP) Disr;losures Note 19 lmiestments in Conirolledl Entities Note 20 lrnpacl5 of COVID•19 Note 21 Events Oc:C\irring after Balance Date Note 22 Budgetary Reporting Di selosures Manage.men! Cet1iflca1e

Page 11

Page 3

Page 6

Page 6 Page 14 Page 17 Page 17 Page 17 Page 19 Pa9e 20 Page 21 Page 21 Page 23 Page 24 Page 24 Page 25 Page 25 Page 27 Page 27 Page 28 Paqe 29 Page 33 Page 33 Page 34 Page 34 Page 40 Page 41



Statements of Comprehensive Income for the year ended 30 June 2020

Cansol'idated Parent 2020' 2019 zow 2019

Note $000 $000 $000, $000

Income from Coml"uing Oioerations GranlS and eointributlons 2 1;!'1,7'60 126,984 121.760' 126,984 Cooperative income 2 4,7,0T 113,049 4,1,07 13,049 Other revenue 2 6,1,84 7,627 1,531 2,571

Total Income from, Continuing Operations 132,651 147,660 121,998 142,604

Expenses fro.m Continuing Operations

Marketliig, d'evelopment and events support ,expenses 3 58,648 74,078 55,122 71 .366 Grant payments 4 42,&SS 45 ,066 « ,1,oe 45,41!5 Employee expenses 5 2:2,997 20,647 21,478 18,966 Depreciation 9 ~ 254 254 254 other expenses 6 6,803 6,969 6,436 6,513

Total Expenses from Coll!tinuing Operations 131,357 147,014 127,998 142,604

Op,erating Result fT,om Continuing ,Operations 1,294 646

Ott:ler Comprehensli11e Income

Total ,compreb.ensiva Income 1,2§4 646

The accompanying nates form part ol lh@sr; finam:ial stat@m~nts.

Page 1 of 41



Statements of Financial Position as at 30 June 2 020

Consolidated Parent 202D 2019 2020 2019

ll!iote SOOD $000 $GOO $000

Current Asset11;

Cash and cash equivalents 16,081 8,968 14,140 5,835 Receivables 7 7,983 S,245 8,1149 5,038 Prepayments 1,232 1,575 983 1,226 Other curre11t financial as.sets a 17 17 Total Current Assets 25,296 15.805 23,172 12,1 17

Non•C\ment Assets Plant anc equipment 9 t,66,1 1,860 11,.661 1,860

Other norn-current assets 146 146 O~her no11-cI.men1 linancial as&ets a 15 15 Total Nah-Ci.ri'rernt Assets 1,861 2,021 11,861 2,021

Total Assets 26,957 17,626 241833 14,138

Currant Liabilities Payables 10 16,666 8,718 19,919 &,908 Ac-crued employee benefits 11 4,024 3,856 588 553 mher current liabilities 12 416 416 Oilher ,:;ummt provisions S9 Total Curnmt Llabltltles 20,690 13,059 20,507 9,877

No.n-Currenit Liabilities Accrued employee benefits 11 575 434 Olher norn-current liabilities 12 2,715 2,715

575 3,149 2715

Total l!..iabilities 21,2'S 16,208 20,507 12,592

Net Assets, 5,!!a2 1,!m!'. .-.us .545

Equity Contnibuted equily 15,6:88 12,908 15,888 12,908 Accum ulated deficit 19,996) (11 ,290) (11,362) (11,363) Total Equity 5 69'2 1 618 4 .;126 1 545

Tlti.e, acoompanyln9 n c,t;,~ fom, part of lh11s11 !inanci al statl!n'le11ts.

Page 2 of41



Statements of Changes 1in Equity for !he year ended 30 J 1.1ne 2020

Consolidated

Balance at 11 July 2018 Operating resu It from cor1hnumg, operations Other comprehensive income Balance at 30 June 20119 Net effect of changes in accounting poNcles (Nole 1 {k))

Balance al 1 July 2019 Dperalin9 resu lt from continuing operations DIiler comprehensive income Balance at 30 June 202D

Balance at 1 July 2018 Operating result from continuing operatiorns Other comprehensive income Balance at JO June 20119 Net effeot of changes in aocounting policies (Note 1 ~k))

Balance at 1 July 2019 O,pe,allng result from co.nlinulng operations Ot~er comprehensive income Balance at 30 June 202·0

Accumulated Deficit $000

Par1mt

{11 ,936) 646

(11 ,290)

(11 ,290) 1,294

(9,996)

Accumulated Deflal sooo

(11 ,363)

(11 ,363)

(11 ,363) 1

(11 ,362)

Contributed Equity Total $000 $000

12,908 972 646

12,908 1 618 2,780 2,780

15,688 4,,398 1,294

15,688 5 ,692

Contributed Equity Total sooo $000

12,908 1,,545

12,908 1,,545 2,780 2,780

15,688 4,,325 1

15,688 4,326

Page 3 of 4!1



Stateme:n,ts of Cash Flows for the year ended 30 June 2020

Cash flows from operaiiing activities fn"mvs: Grants and contributions from Queen.sland Government Receipts from customers GST input tax credits received Interest received Outflows: Payment~ to suppliers and employees

GSl remitted

Net cash provldedl by I (used in) operating aetlvales

Ca.sh flows from investing activities Inflows: Proceeds from forward coritracts Outflows: Payments for forward contracts Payments for plant and eq uipm en!

Net cash p,ovided by I (wsed i n) investing activities

tit inore.ise I (d'ecreaae) in c.ish and c,i:st, eq1.1fvalents

Cash andl cash equivalents at the beginning of the tlnanclal year

Cash andl cash equlvalenls auhe end of the finar,c.i al year

n,., acoompar,ylng notes form !)art of these rin.i.,Clal statements.

Con sol idated Parent 2D20 2019 20211 2019 $000 $000 $000 $000

121,410 125,029 127,4111 125,029 5,007 22,200 2,939 16,892 9,336 9,867 9,067 9.337

179 288 169 248

1131 ,102) (1 5,1,702) (127,8371 (145,al75)

lJ,662) (3,572) (3,3881 (3,194)

7,168 2,110 B,3611 2,837

8,106 5,815 8,106 5,815

{8,106) (5,814) (8,11061 (5,814)

j55) (1 ,956) (551 (1 ,956)

(55) (1,955) (551 (1 ,955)

7,113 155 B 3D5 882

11,968 8,613 5,835 4,953

16,881 8,958 14,1 411 5,835

Page 4 of 41



Statements of Cash Flows for !he year ended 30 June 2020

Notes to the Statements of Cash Flows

Fteconciliatio11. or Operating Result to N:et Cash from Operallng Acth1,iUes

Consolidated 2020 $000

Operating surph1is I ,(deficit) 1,294

N0111,-cash items included in operating N!$Ult: Depreciation expense 254 Unrealised (gain) I loss on foreign exctiange 45 Doubtful debts 5

Change- in a.sset$ and llab!lit!es (Increase) I decrease in receivables (2,,942) (Increase) I decrease in µrepayments lt3 (Increase) I decrease in non-current assets Increase, I (decrease) In payabfes 7,928 Increase f (decrease) ,in accrued employee

310 benefits Increase I (decrease) in othed iabililies Increase I (deorease) 1in other pmvisians (69)

Net Cash provided by (used In) 7,168 Operating Actl11ltles

Parent 2019 ;,mzo 2019 $000 $000 $000

646

254 254 254 5 45 s 1 s 11

(715) (3,216) (576) (&44) 243 (703) (146) (146) (184) 11(1,994 822

(16) 35 49

3.131 3,131 (22)

2,110, 8,36& 2,837

Page 5 of 41


Tourism and Events Queensland Notes to and forming part of the Finandal Stateme:nts lor the year ended 30 June 2020

Objectives and Principal Activities oftha Corporation

The Corp<iratioo's objectives are to attracl visitors to Queensland. generaling overnight visitor expendilure; contribute lo the Queensland economy;· enhance the profile ol Queenslarnd; and toster community pride in •Queensland.

These objectives a:re delivered throogh: marketi ng and promollng tourism in Queensland; tomi.sm experience and destination development; and working to identify, attract and pro11r1ote major e11e11ts.

NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Statement of Compllance The Corporation has prepared lhese financial statements in compliance with section 39 of O,e Fi11ano.iaJ and Perfomian.oe Management Standard 2019. The financial stater'lllent:s comply with Queen sland Treasury's Minimum Reporting Requirements for reporting periods beginning on ,or after 1 Ju ly 2019.

The Corporation i'1l a not-for-profit entity and these general purpose financial statements are prepared on an accrual aasis (except for the Statements of Cash Flows which is prepared on a cash basis) ·n accordance with Australian Accounting Standards and lilllerpretatlons applicable to not-far-profit entities.

(bi ?resentation Currency and Roundir,g Amounts included in the financial statements are in Australian dollars and ro11nded to the nearest S1 ,000 or, IIAlere lha1 amount" is. $500, 01· less, to zero, unless disclosure of lhe full amount is s,pecifically required.

Comparatives Comparati11e information reHects !tie audited 2018·1 9 financiaJ slate1nents.

Gurrent/11/on•Curront Classification Assets an.d liabilities aie classified as either 'cunent' or ·non~ rrent' In the Statements of Financiall Position and associated notes. Assels are classified as ·current' willere lheir canyirig amount is expected to lbe realised within 12 months after lhe reporting dale. Lialblt~ies ar,e d ,assified as 'current' when they are d'1.1e to be seltled wltl'\ln 12 months after lhe reporting elate, or ihe Corporation doei. 1101 have an unc<inditional· right to defer settlement io beyond 12 m on!hs after the reporting date.

All other assets and liabilities are c:la5'3ified a.s non-current

(c) Authorin1ion of Financlal Statements fo, Issue The financial stal.ements a~e a1J'lhorlsed for Issue by the Boara Chair, a, Board Member, lhe Chief Executrve Officer and lhe Group Execuli11e Corporate and Chief Financial Officer at the d·ate of signing the Management Certificate.

(d) Basis of Measurement Hlstmrcal cast is used as 1he measurement Iba sis in this financial report except for provisions expected to be settled 12 1;1r more months. after reporting (late which are 1neas1.1red at their present 11al'ue and other finandal assets whieh are measured at fair 11alue.

Historical Cost

Under historical cost, assetl! are rEN;Orded al the amount of cash or ca!lh eq1-1l11.i!ents "aidl or the fail "al11e of consideration given to acq1.1ire .isseb at the time of lheir acquisition. Llab·litle~ are reoorded at the amount of proceeds received in e11change lor the obllga1ion or at the amounts of cas,h or cash equivalents expected lo be paid lo satisfy the liability in the normal course of business.

Page 6 of4 l


Tourism and Events Queensl,md Notes to and forming part oflhe Financial Statements for the year ended 30 June 2020

NOTE 1 - SUMMARY OF SIGNIFICANT ACC,QUNTING POLICIES (continued)

(d) Basis of Measunummt (conlinued}

Fair Value Fair value is the pnioe that would be received to sell an asset or paici to lransfer a lialbility in an ,orderly transaction between market partieipanbi ,)I the measurement date urnd'er current market condilions (i.e. an exit price) regard less ol Whe(her Iha! price is direcUy derived from observable Inputs or estimated using another valualion technique. Fair value is. detennined using one of the fall o-Mng lhree approaches:

The market approach uses. prices and other relevant tnlormalion generated lly market transadions involving id'enticall or comparable (i.e .. similar) as.sels, li;;ibilities or a group ol assets and llabilitles. such as a business.

The cos/ approach reflects the amount that would be required ,currently to replace the :,iervice cap;.tcity (}f ;.tn asset. This melhod includes the cmrent replacement cost methodology.

The income approach converts r\nitJltiple luture cash fl'ows amounts to a single currenl (ie. disco1,mted) 11mounl When the income approach is used , !he fair value measurement reHecls current market expeotalions aboul those future amounts .

Where lair value is used, tile fair value approach is disclosed_ Refer to Note 15 for further deta~ a boot fa.ir value mfl:asurem@n!.

.Present Value Present value represents 'tt:le present discounted value of the furure nel cash inflows !hat the ilem is expected 10 generate (in respect of assets) or the present discounted value of the Mure net cash outflows expected1 lo settle ,(in respect of l.iab ililies) in th@ normall course of bU$.iness.

(el, Foreign Cur~eney Transactions

All transactlons !hat ar,e,i undertaken in a for,eign currency are translated into Austra an dollars. For,eign w~rency transactions are recorded an iniliel recognition in Au$lr.ilian ,dollars by applying to the foreign curren,cy amount ~he spot 8)(C'1ange rate between fhe Aus,trallan ,dollar and the foreign currency at the date of the transaction.

Monetary assels andl liabilitie-s-held in foreign currencies at balance date a1e retranslated into Au!ilralian dollars in the Statern ents, of Financia:l Posttion at balance date.

Translation dlfle1ences are taken lo the Statements or Compreher1sl,ve Income in the finan aial year in which they a~lse.

(f) T l'te Repo.rtlng Entity The consolidated financial s1atements [nclude all income, expenses , assets. lllabil,lfes and: equity ot the ·economic enlily' oomprislng !he Corporation and lhe entities it controls, t e Toorism and Even1s ,Queensland Employing Office and Gold Coasl E11ents Management Ltd (refer to Note 19). All transactions and balances i nlernal lo ~he econom ic entity ha..,e been enminaled in full.

The parent entity financial statements (tiHed '1Paren1') indude all income, expenses, assets, llablliUes and equity of I.he Corporation only.

!91 Provislons Prcvlslonr. are recorded when the Corporation has a present ol:lligation, eitl1er l~al or c;:onstruciiM:! .-s ;i re~ult of a past event They are recQgn ised at lhe amount expeded al r,eporting dale to settl'e the obligation rn a futu re period. Where the sel11ement of the obllgatlo.n is ~pected1 a.fter 12 or more months, the obl19ation is discounted to the present value using an appropriate discount rate.

(h) Taxation

The Co1poralion Is a Slale body as defined under the lrrcome Tax Assessment Act 1936 and is exempt from Commonwealth taxalion ,!fflh, the exceplion of Fringe Bi!nelils Tax (FBT) and Goods and SeN oes Tax (GST).

The Gorporalion's controlled en,iiiies are e:icempl from income tax under Division 50 of the Income T!iX Assessmenr Acl 19fl'7 and are exem pi flom Com monrweallh taxation wilh lhe exception of FBT arnd, G,ST.

GST credits recei11able from and GST payable io the ATO, are r,ecognised (refer to Note 7).

Page7 of41


Tourism and Events Queensland Notes to and forming part of the Financial Statements tor the year ,ended 30 June 2020

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(i) Contributed Equity Non-rec·procal transfers cl assets and liabilities belweBn who.lly-owmid Que()nsland Slate Public Sector eniilies are adj1,1sted to Contrib1.1ted Equity in accordance with lnte,Pfetalion 1033 Contri/J1.1lions by Owners Made to Wholly-Owned Public Sector E:ntities .

(j) Accounting Estimates and Judgement The preparation of financial statements necessarily requires !he determination and .ise of certain critical accounliing estimates, a,ssumptions, and managemenl judgements lhal have that potential to cause a maleria.l ad Ju stment to the cauying amount of assets a d liabilities within the ne)(t financial year. Su~h estimates. judgements and underlying assumptions are reviewed on an ongoing bas'is. !Revisions to ;;iccm.mting estimab~s are ~ecogr,ised in the period in whicti the estimate i& revisedI and in tuture peniods as relevant

Estimates and assumptions that potentially have a significant effect are ollllined in the follo\!iing financial statement notes :

Revernue - Note 2 • Depreciation - Note 9

Payables - Note 1 o • Accrued Employee Benefits - Note 11

(k) First Year Appllcation of New Accounting Standards or CITange In Acc:oun,t!ng Polley

Accounting standards applied for the first time

The Corpora0on appl1ed three new accounting stamlards for the fir~\ lime in 2019-20:

AASB 16 Leases AASB 15 Revenue from Con!racts with Customers AASB 10 58 Income of Not-for-Profit Entities

Na other accounting standards or interpretations thal apply to tne Corporation for the first iime in 2019-20 have any material impact on lhe financial statements.

Accovnting standards 9,H/y adopted No Austra[ian Accounting Stand'ards have been early adopted for 2019-20.

MSB 16 Leases

The Corporation applied AASB 16 Leases for the tlrsl time in 2,019-W. MSB 16 replaces AAS B 117 Leases and related interpretations.

The only material impaci on the financial :statements of the Cor-poratlon on transition was the dereoog ltlon of the Carporalion's feese incenbve liabilities relating to Department al Housing 1md Public Works (l)HPW) office accommodation. Tlhe tease incentive liabilities were derecognised against opening Contributed equity on 1 July 2D19.

The Corporation applied the modified relrospeclive lransibon method and has not r~taled comparaliv,e intormalion for 2011:l-1 9, which continue to be reported 1mder AASB 117. The nahire and effect of ch.ang,es resu1Un11 from the adopbon of M5'B 16 are described below. Definition of a lease

AASS 16 introdvced new g1,1idance ,on the definition of a lease.

For leases and lease-like arrangements existing al 3CI June 2·019, lhe Corporation elected lo app~y lhe practiciil expedient to gr,mdfatherthe previous assessments made 1,mder AASB 1117 and lnterprell/.tion 4 Oe~rmin.ing whelher an Arrangement r;on/ains a Lease aboul whether those contracts contained leases . However, ammgemenls were re.assessed under AASB 16 wthere no foomal assessment had Ileen done in the past ar ""1 ere lease agreements were modified on 1 July 2019.

Page 8 of 41


Tourism a1nd Events Queensland Notes to and forming part of the Financial Statements for the year ended 30 Jooe 2020

NOTE 1 - SUMMARY OF SIGN FICANf ACCOUNTING POLICIES (continued) (k) First Ye.ir Application of New Accounting Standards or Change in Accounting Policy (continued')

AASB 16 Leases (continued)

Amfllldrnenls to former operating leases tor off1ee accommodation In 201&-19 and 2019-20 , the Corpot;!tion hf;!ld an op,erating le,u;e under AASB 117 from lhe Department of Housing and Public Works (DHPW) tor non-specialised comme.rclal offioe a«ommo<latioo through the Queensland Government Accommodalion Office (OGAO) (refer to Note 17).

Effective 1 July 2019, the framework agreements mat govern ·QGAO wete am1mded 'llrith the result that tii:ese arrangements do not mee1 the defini1ion of a leai:;e under AAS B 16 ancf ther-efore are exempt from lease accoI.mting. From 2019-20 oriward, ~he costs for these service::; are eXipensed as Other ,expenses when incurired (refer lo Note 6). The new accoun~ng trealment l.s due to a change rn the contractual arrangementi; ra ther than, a clh,mge in accounting policy.

Other former operaring leases for office accommodation At 1 July 2019, the co,poration held 11arious operating leasei; under AASB 117 for non-specialised commercial office accommodation m the Corporation's mlernation al source marl<ets.

On transition, lhe Corporation a.sse:ssed wliether the contracts are , or cootain, a tease, A oon1tact i.s , or contains, a le;ise if the contrac;1 conveys 1he , ight to control the use o f an identified asset for a period of bm,e in ,exchim ge foe co11sideralion, The Cotp0ration asi;esi;ed th,it these contracts are not, arid do, not, contain a lease as lhe contracts do not convey the right to cO!lttol the use ol the Identified assets to the Co rporation.

From 2019-20 orIWard, ~he ,costs for these services are expensed as Other expenses i'lhe!l Incurred (referto Note6). Shorl-term leases and leases of low value assets

On transition, lhe Corporation used practical expedients under MSB 16 to not recog,nlse lease liabilities and right--of-use assets far short-tenm leases ancl leases of low value assets. Lease payments far these teases are recognised as e)<'pe11ses on a straight-line lba!li~ over the lease term. Thi,s accounting treaiment is simi'lar lo ihai used for operating leases under AASB 117.

A short-term lease is a lease that, at the cmnm encement date, has a lease l.e:nm of 12 months or less and does not contain a puechase option . A lbw value asset is an asset ltlal costs fess than AUD10,000 when new.

T ransilional impact The fotlowi ng table summarises lhe an•lran.s1tion adjuslmenls to lhe Corpo,aban,'5 Stc1temenls of Financial Position at 1 July 2019 in relation io 111e former operating I:ease from DHPW for non•speciall sed commercial office accommodation:

ExemplQGAO Lease liabililies Accrued lease payments. (lrom straight-~nin.g of operating lease e111penses)· Lease incentive liability Conlfibuted: equity

Consolidated

$1100

(1.035) J61

(2,096) 2,780

Parent

$000

(1,035)

J51 (2,096) 2,780

Page 9 of 41


Tourism and Events Queensland Notes to and forming part of the Financial Statements far the year endea 30 June 2020

NOTE 1 - SUMMARY OF SIG,NIFICANT ACCOUNTING POUCIES (continued) (kl First Year Application of New Accounting Slanda~ds or Change in .Accounting Poli,cy (conti nued)

I

AASB 15 Revenue rrom Coal@crs with Cus'9D)ers The Corporation applied AASB 15 RwemJe from Contracts with Customers for the f;rst time in 2019-20. The nature and effect of changes resulti ng from 111e adoption of AA.SB 15 are described below.

1, New revenue ~oogn,ilion model

MSIB 15 establishes a new five-step model' for determining l'iow mucl'i and \\ltlen r,evenue frnrn contracts with customers is recogrnised. The five-step model and significant judgmenls at each ste,p are deiail'ed below.

Slep 1 - Identify the contract Grant funding 11,at !he Corporation receives may contain a, contract with a wilh lhe customer cus1orner and lhus faU wllhln the scope ,of MSB i S. This Is the case wher,e the

funding agreement requjres the Corpora1ion to transfer g~mds or seivices to 111 ird parties on behalf of the grantor, ii isc enforceable, ar:,d it contains sulficiently specilic performance obLigations.

Step 2 - Identify the This step involves firstly ld'enllfylng all the activities tile Gorporatioo is required lo perfom,ar:,ce obU11atlorn; In the perform under the contract. and determining whicl'i activities lransfer goods or contract services to tl'i e customer.

Where there are multiple goods or seNices transferred , lhe Corporation must assess wl'ietl'ler each good or service is a distinct per1om,ance abligation or should be combined with olher goadls or seivices, to form a i.;ingl'e perfonne11ce obligation, Tobe within the scope of AASB 15, 11,e "erformance obligations must be 'sufli ciently specific', such that the Cocporalian is able to me.isure how far along ii is in meeting the performance ob[igalions.

Step 3 - Determine the When the consideration in the contract includes a v.iriable amount, tile transaction, price Corpcralian need,s to estimate the variable ooniideration to which it is entitled arid

only recognise revenue to the extent that It is highly probably 11 significant reversal of the revenue will not occur_ This iooludes ssiles with a nghl of return, where u,e amount el(pecled to be refunded is estimated and ~eoognised a!. a refund liability insleadl of revenue.

Step A - Allocate the transaction Wilen there is mere than one performance obllgalion In a cor:ilract, the transaction price to the per1ormance p1lce musl be allocated to each performance olJ'lrgalion, generally this needs to be obligstions dane on a relative stand-alone selling price basis.

,Step 5 - Recognise revenue Revenue is recognised wnen the Corporaoan trans.fers control of !he goods or when or as the Corporation services to the customer. A key judgement is, whether a performance obligation is salisfles pe,rfomiance satisfied over time or at a point in time. And wher,e rt is satisfied over lime, the oblig.itians Garporalion must also deY~op a method f,or meas1.,1ring progress toward~

satisfying the obligation.

2. Other char,ge!:l arising lrom AAS8 15

The, standard requires contract assets ,(accn.Jed revenue) and contract 5abiliiies (uneamed revenue) to be shown separately and requires contract assets to be dislingulshed ftom receivables .

New disclosures have been included in Notes 7 and 110.

Page 10 of41


Tourism a111d Events Queensland Notes to and forming part of the Financial Statements Jot the year ended 30 June 2020

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued} (k) First Year AppHcation ol New Accounting Standards or Change In Accounting Polley (continued)

AASB 15 Revenue from Contmcjs with Cusi9mers (continued)

3. Transilional impact

Transitic;mal policies adopted are a:s follows:

- The Corporation applied !he modified re~ros:peclive transition mell:lod ana has not restated corn par alive information for 2018-19, which continue to be repOlted under AASB 118 Rsvent1e and related interpretations.

- The Corporati:on has elected to apply the standard retrospectiively only to contracts th.it. ar-e not completed contract~ al the date of ini~all application o.e. 1 July 20 19) . Com pletecl contracts include contracts ',!jfiere the Corpomlion had recognised all o,f 111e revenue in prior periods urider AASB 1004 Ccmtribu/ions.

- The Corporatton app:lied a practical expedient to reflect, on 1ransiiion, the aggregate effect of all coniract modification ihat occurred belor,e 1 Juty 2019.

Gr.mts and contril)ution-s

A number af 1h1;1 Corporation's special inilia~ive marketing and event grants were identified as ccntratls with customers wilhln the scope of AAS8 15, Revenue, for trnese grants was pre11lously recognised on receipt. At 1 July 2019, perform a nee obligations were corn pletely satisfied for gra t revenue received lo that date therefore no transitional adjuslments ,relating to the adop1lon ot MSB 15 were requ.ired for these gra11ts.

No other transltlonall adjustments were required to lhe Corporation"s Statements ol Financial Positron balances ,on 1 Jui)' 2019 relating to the aaoption of AASB 15.

To align with new terminolJ:)gy in AASB 15, accrued re11enIue and 1.meamed' revenue arising from conlrac~ will, cvstorners llave been renamed as contract assets and contract liabiF!ties respectively. They are 1,eparalely disclosed In Notes 7 and 10.

AASB 1 05B income of Not-for.Profit Enltlies

The Corporation applied AASB 1058 /ncome of Not-for-Profll £nl11ies for the first time in 2019--20. The nature andl effect af cnanges resulting, from the adoption of AASB 1058 are described below_

t . Scope and revenue rlli:Ognition under AASB 1058

AASB I 058 applies ta transactions where lhe Corporation acquires an asset for significantly less ftlan fair \lalue principally to enable lhc Corporatio11 lo f1Jrther its objecti11e.

The COfl)Oratlon's revenue tine ftems-recog.nlcSed under this standard from 1 July 2019 Include m osl Grants and contributions and some Olher revernues.

a_ General revenue recognilion framewo~k

T'1e revenue rec:ognibcm framewank. for in scope transactions. is as l,ollows:

1_ Recognise the asset - e_g_ cash , receivables, plant and equipni,ent or an intangible asset

2. Recognise relal.ed amounts - e.g. equity, a financial liabmly, a -contract liability or a provision; (grants a11d donations in many case& can have nill related an11ounts)

3. Recognise the ditfe1ence as income upfront.

The initial recognition and measurement of receival:!le~ arising from statutory requiremenls (such as laxes and stamp duty) falls under AASB 9 Finstteia/ /nslrumet1rs , tllerelore AA.SB 9 govems Ille liming arid amount of re'llenue recognised under AASB 10!58 for s1,1t;h s.talul.ory income_

Page 11 ol 41


Tourism and Events Queensland Notes to and fonning part of the Fiinancial Staternents for the year ended 30 June 2020

NOTE 1 - SUMMARY Of SIGNIFICANIT ACCOUNTING POLICIES (continued) (k) First Year Application of New Accounting Standards or Ctlange i,n Accounting Policy (continued)

AASB 1058 lnc;omg of Not-for-Profit Entitjes (continued}

2. T,ra!'lsllional impact

Transitional policies. adopted are as follows : • The Co~poraiion applied the modified retrospective transition method and nas not restated ,cmnparative

information f01 2018-19. They continue 10 be reported u11de1 relevant siandards applicable in 20118-19, such as MSB100oi .

- The Col'por.ition ~ected lo .ipply the standard relrc!.pectlvet;, to allr conll"acts, lnclu<llng completed contracts, at 1 July 2019. Completed contracts ar,e coot1acts where the Corporation had recognised all ol the revenue in prior periO(!ls 1.mder AASB 1004.

• The Corporation applied a practical e)(pedient to riot remeasure at lalr value assets previously acquired for significantly less than fair value and originally recorded at cost.

Revenue recognition tor most of the Corporation•~ Grants and contributions will not change under AA.SB 105B, as compared lo MSB 1004. Revenue wiM cootinue to be recognLsed \lklen the Corporation gains control of the asset (e.g. cash or receivable) in most instances.

Some of the Corporation's grants will fafl within the scope of AASB 15 Revenue from Contracts wi!h Customers The lransitic nal i mpacls for the.se granis are disclosed above (refer to AASB 15 Revenue from Contracts with Customers).

Initial application o,f ihe standard hla$ resulted in a nil impact to the Corpora\loo's Statements ol Financial Position balances at 1 J uty 2019 .

!mpact cef adpmlon of MSBJ5 and_MSB 1058 In the cumintpe!lod

The tollowing l:abfe shows the impacts of adopting AASB 15 and AASB 1 058 on !he Corporation's 2019-~0 linancial statements. II compares the actual amounts reported to amounts that would nave been reponed if the previous revenue Mandards (AASB 1004, AASB 118 and refaled interpretations) had been applied in the current financial year.

Operating result Grants and CMtrl butlons Total :Income from Co111tinuing Operations

Balances as at30 Ji.:ine---2020 l.Ji:;1bltlll8$

Payal))es T,otal Lfabi lities

Equlty Accumutated defidl

Total ,Equity/Net Assets

As reported

$000

121,760 132,652

16,666 22,595

(9,996) 6,692

Consollidated

AASll:!.15 AASB 1058 Previous changes changes standards

$0001 $01!10 $000

7,494 129,2.54 7,494 140,146

(7,494) 9,172 (7;494) 15,101

7,494 (2,502) 1,.94 13,186

Page 12 of41


Tourism ;1nd Events Queenslland Notes to, and forming part of the Finarncial Statements for the year ended 30 June 2020

NOTE 1 - SUMMARY OF SIGNIFf'CANT ACCO'IJNTING POLICIES (continued) (k), Fi~st Year Application of N'ew Accounting1 Standards or Change in Accounti1119 P,olicy (coralinued)

Impact of adoption of AASB 15 and MSB 105!! iri the currenl peFiOd (cor1tinued)

O1iera~ng resull

Grants and contribulions Total Income from ,continuing Operations

Balances as at 30 Jur:ie 2020

Llabiliti!!S Payables

To!JII Liabilitk!s

Equity Accumulated deficit

Tot.ii Equity/Net As.sets

As reported

$000

121,760

127,998

19,919 20,507

(11 ,362) 4,.J26

Parent AASB 15 AASB 1058 changos changes

$000 $000

7,494

7.494

(7,494) 17,494)

7,494 7,.494

Significant differer1ces in the fimmcial statement line items are described below,

Gamts and oon/nbulians revenue and Payables - Special imlialiva aviation. marketing fmd even!s grants

Proviom standards

$000

129,254

135,492

12,425 13,013

(3,&68) 11 ,820

The amo11n1 of revenue recog1nised for these grantti reflects tlhe perfmmanoe otiligations satisfied during the period and Is S7 .49 mimon less than Ille revenue that would have been recognised unde,r the pre'liou s standards. Under pre\lious standards this reven ue would have been reco9nised dunng 2019-20 wher:i the grants were reoeh1ed.

At 30 June 2020, a contract liabmty of $7.49 mi~ion remain s for these granls relating lo performance obligations io be salisfied during 2020-21 .

jl} Future Impact of Accounting Standa~ds INot Yet Effective

At the dale of autharisalian af the /inancial r,eport, all Australian Accounting Standards and inlerpretalions wilfl future elfecli11e dates are d hef not appticabfe to the Corporation's activiti1!$ or have no material jmpact on the Co~poration.

Page 13 cf41


Touris1rn and Events Queensland Notes to and folrming pa1rt of the Financial Statements for the year ended 30 June 2020

NOTE 2 - R.E',/ENUE:

Grants and Contributions 1

Revenue from contracts with customers

Department of Stale Developmenl, Tourits'1l ancl lnnovatlor/ Olher st.ite Omrernment Departmentil

Other gnmts 11nd contributions:

Department of State Development, Tou~isrn and lnrmvation2

Cooperative Income Revenue from oontraors with customers Cooperative manketing income'

Cooperative event income1

Other Revonue Revenue from oon/racts with cus/omers Registration income'

Other revenue E1tent sponsorship Income lniere$t Net gain on foreign exchange Olher- income

1Refer to Nole 20 for disclosure& about fmpacts of COVI0-19, 'Refer lo Note 1 7 far related palfy transacii 011 disclos1.1n.ts.

Accounti1119 Policy • Grants and1 conllibutlons


33,298

370 33,668

88,092 88,092

121,760

3,832 875

4,707

J 71 1 3711

508 160 141

1,664 2,-473

6,184

2019 $000

19,558 110

19,666

107,316 107,316

126,984

10,906 2,143

13,049

3,837 3 537

927 296

2,567 3,790

7,627

Parent

2020 $000

33,298 370

33,668

88,092 88,092

1211,760

3,832 87S

4,707

150 141

1 240 1,531

t 531

20119 $000

19,558 11'0

19,668

107,316 107,31!6

126,984

10,906

2,143

256

2 315 2,571

2 571

Grants, conbib1,1tions and donatio11s are non-reciprocal l.ram;actions where !he C.orporatlon does not direc~y give approxlmateJy equa'.I value lo the grantor.

Where the grant ag,r,eement is ,enforceable and contains sufficiently speoilic perfomiance obligatiorns for the Corporation to transfer goods ar l!ervioes to a third-party on the grantor's behalf, lhe !rans.action is acoounlecl !or under MSB 15 Revenue from Co11/raots witn CtJstomers . In this case, revenue Is ,lnitlally deferred ( as a cm,tract liability) and recognised as or when the performance obligations are satisfied.

O(nerwiee, lhe grant is accounted for under AASB 10·58 Income oTNol-for-Profl/ E.nti/ies , whereby revenue is recognised 1.1pon receipt of the grant funding.

Page 14 of 41


Tour,ism and Events Queensland Notes to arnd fonning part of the Fln1ancial Statements for the year ended 30 June 2020

NOTE~· REVENUE (contin~ed)

DJsclosure - Grants and contrib1111io111s (revenue from ,contracts. with customers)

The Corporation has a numtJer of grant arrangements 1hal relate to runding1 of actwlty-based services , Two of lhese gram arrangements, Attracting Aviation lnveslment Fund (AAI~) grants and special initiative manketing or event grants, have ~en id'eniiliedr as having sufficjentJy specific performance obligations under en1orceable grant agreements .

T he fol owing tai:ile provides information about the nature ,and liming of the satisractlon of performance obligations , significant payment terms, and revenue recagnrtion far the Corporation's grants arid coninbulions lhal are contracts with customers.

Type of gocd or service Natu,re and timing of s11ti5faetiolil of Revenue reeognition policies per1ormute obllga.tlons,, lnc:ludlng significant payment terms

Attracting Aviation Investment AAIF Financial Incentive Agreements Fund ,(AAIF) contain specific performance obligations The Corporation recognises revenue

relat ing to coop Bralive ap!iv,ities designed when (or as) It salisfres a pelformance to attract new air seniices and boost the obliga~ion by lransferririg a promised good state's tourism lndu51ry. The obligations or seniice to a granter . When (or as) a relate to specific a irlines, routes and performance obligation is satisfieci. the timef1ames as ouUined in the indi>Jidual Corporation recogn ises as revenue the agreements. am cunt of the transaction price that is

Speclalr lnibative - Special inlllalive marketing grants ,contain al.located to that performal'!ce obligation .

Mark:eling/Event specific performanoe obligations relating When either party to a contract has

to agreed nn ark;eting activities lo support a performed, the Corporation presents 1he

particular campaign usually within a contract in the Statements or Financial

specified region and wilh defined Position as an asset or l iab,lrty, depending

timefr.ime-s. Speoi.il initiative event gr.anti, on the relationship betv.teen the

contain specific perfoonance obligations Corporation's performance and grafllol"s

relating to a spec:lfle,cJ everit or series of payment e11e11ts with defined limefram es.

Page 15 of <11


Tourism and Events Queensland Notes to and forming part of the Financial Statements for lhe 'ljear ended 30 June 2020

NOTE 2 • REVENUE (continued)

Accounling Policy - CooperaUve incoc:ne and Other revenue (~venue from eo,,tr,1u:ts with customers)

Revenue from contracts with customers is recognlsed when lhe Corporation transfers control 011eir a good er service to, the customer,

Ofseloisurt1 - Cooperative income and Other revenue (reYenue from c011tracts with customers)

The following table provides informati1:m about the nature and tin,ing of the satisfadioo of pertormance obligations, significant pa~m ent terms and revenue r,ecognition for lhe Corporalicn's Cooperative income and Olher revenue from corntraots with custo111,e.rs_

Ty11e of goad or service Nature and timiing of satisfaction of R:1tve1:me recognition policie-s perfoffl'la 11\Ce obligations, Including sig,nificant payment terms

Cooperative marketing income Cooperat ive marketing income contracts ,contain specific performance oblig.llion,s, usually to be provided by bolh/all parties to the agreement, relating to agreed joint markmi ng activities rela1irig to a specific campaign The Conpa,ation recognises revenue or aolt111ity. n meframes for ,dellvel"i' of wl'!ern (or as) it satisfies a performance abligalions are defined in the individual! obligation by tran$ferring a pcom,ised cantracts. good or sel'llice to a cus.tomer. When

Coope-rali've event income Cooperat ive event income contracts (or as) a performance obligat ion is

contain specilic performance salisfied, lhe Corpo rat ion r-ecognises.

obrigalions, usua'lly to be provided by as revenue the amount of the

both/al l parties ta lhe agreement, tran sactlon price lhat is allocated to

, relating lo agreed aclivi!ies rnlating to a that performance obligation_ When

, speci~c ev~nl. Timefram es !or d'elivery either p;uty to a contract has

of obllgations ar,e defined In the performed , the Corporation presents

rndividual contracts_ the contract in lhe St.rtem,ents. of

Registration income R,egistralion income relates io event Financial Po,sition as an asset or

µarlicipation fees for events mana9ed liability, dependln9 on ll'le relationship

a-y one of !he Corporation's controlled, between the Corpor;,11ion•~

entities, Gold Coast Events pert,ormance and customer's paymenL

Management Ltd (refer to Nole 19). Regi slration inoom e is received in !!JCthange for pariicipation in the relevant event that i5 schedufed to lake clace durina, a soecific limeframe_

Refer to, Note 7 ,and Note 10 for disclosures abo1.1t contract assets and liabilities outstanding, ;U 30 June 2020.

Page 16 of 41

I


Tourism and Events Queensland Not.es to and form1ing part o.fthe Financial Statements fer the year ended JO Jur1e 2020

NOTE 3- MARK.ETING, DEVELOPMENii AND EVENTS SUPPORT EXPENS'ES Global m arketin.g activity

E11ent $taglng and e11ent marketl,ng, assessment and support activity Resear,c:h acti11ity

Consolidated

2020 $000

49,11'0

&,120

58,64$

2019 $000

59,065

13,387

1,626 74 ,076

Parent 2020 $000

49,110

4,594

1,418 55,122

2019 $000

59,065

10,695

1,625 71,386

The abo11e figures do not h1clude event funding grant payments (refer to Note 4) or employe,e expenses (refer to Nole 5). Refer to Nole 20 for disclosures about impacts of COVI D-19.

Ac.counting Policy• Distinction between Grant Payments and Arocurement For a transaction to be· cl11ssified as a marketing11 development or event support expense in this note or other expenses in Note 6, lhe value of goads or services received by the Corporation must be of ap proximately eQ1uall val\le 10 the value of the consideration exchanged for those goods or $ervloes. Where th is Is not the substance of me arrangement, the transaction is d'assifred as a granit pa)ITT!ent 1n N'ate 4.

NOTE 4 • GRANT PAYME.t.lTS Event fundi,ng grant payments Regiona, To11rism Org,anisation, grant payments

Consolidatei:f 2020 $000

35,655 7,000

2019 sooo

38,0S6 7, 000

45,066

Parerit

37,108 7,000

44,708

2019 $000

38 ,485 7,ooo,

45,485

T he above figures do not include 11:vent staging and event m ark!!ti:ng, assessment and s~pport activity costs, Evellt costs , el<duding employee expenses, relating to ~he staging aoi:f mar1(.etlng or those events are lnd uded in Nole 3 -Event staging and e11ent marketing, :assessment and support aolMly.

Consolid'ated Parent 2020 2019 2020 $000 sooo $000

NOTE 5 - EMPLOYEE EXPENSES Employee Benefits Wage-sand salari,es1 17,915 16 ,204 2,440 Annual leave ex:pens@ 1,655 1,422 193 Long service leave expense 451 353 15 Employet superannuation conlributlMs' 1,862 1,638 49 ,Employing office 18,629 Emp.loyee Related Expenses Woitcers. oompensa.lion 55 60 5 P;iyroll tax 936 815 24 Ot~er employee related expenses 123 154 123

221997 20.647 21 ,478

' Wages ;ind salaries ;ind Em ployer superannuation contributions include a total of $106 ,1 38 of $1 ,250 one-off payment pro-rata payments lor 7 8 full-time equivalent employees (announced in Sep!em ber 2019).

Full-Time Eq1:Jl11alent !Employees :

2020 No. 151

2019' No.

156

2020 No, 19

2019 $000

2,504 170

9 f>O

16,056

7 23

147 18,966

2019 No. 2()

Page 17 of41


Tourism and Events Queensland Notes to and forming part of the J?inancial Statements for the year ended 30 June 2020

~OTE !i - EMPLOYEE EXPEINSE:S {continued)

Accounting Policy - Employee Expenses Employer superannua.(ioo contributions and annual and long service leave entitlement$ are regarded as employee benefits. Payroll tall and workers' compensation insurance are a consequence of emploving employees and are not counted In an employee's total! rernuneralion package. They are not employee 'benefits and are recognised separately as employee related ,expenses .

Wages, Salaries and Sick Leave Wages and salanles due bot unpaid at reporting date are reoogn,lsed In the Statemems of Financial Position at tl:ie cunrenl salary rates. As lhe Corporation eJCpec:ts such liabititie:, to l}e wholly settled •,wtlilin 12 monlhs o,f reporting date the llabililiet. are recognis,ed al undi$CO\.111ted am cunts.

Prior history indicates that on average, s.ld< ,Iea11e t~ken each reporting period is less than tne entitlement accrued .. This is el(pec,ted to oonlinue in future periods. AoCQrdingly, iii$ unlikely that existing1 acc1.1n,ulated enti!lements \liill be 11sed by employees and no liabi'lity for 1,u,used -sick leave entitlements is reccgnised. As s.ick lea11e is non.vesting, an expense Is recognised for this leave as it Is taken.

Annual Leave and Long Se.rvice Leave Uabirities arising in respect of annual leave and lor,g s.el'\'lice leave that are expected lo be set~ed wltilln 12 months are measured at their nomlnal values.

Employee benefits disclosed as current llabili(ies represen1 those employee benefits which die Corporation does not have an unconditional right to defer a.cce.ss to bevond l2 moMhs of the reporting date.

All other employee benefits are classified as non-current liabillties. Non-current employee benefits have been measured at lhe present value or the estimated future cash outflow.s. 10 be made for ll'lose be11elits. These cash flo-ws are dis.counted using the fnter,est rates attached to govemment g uaranteea securities. which h 11ve terms to rnaltrnity approx1mallng the terms oi the related liability.

Superannuation The Cocpotation and iis conlTOlled entiiies contrlbuie to QSuper. lhe superannualion scheme lor Queensland Government employees, and other superannuation funds. Conlrtbutions meet or exceed the requirements of the Superannuation Guarante0 Le,;y and are elCpensed in 1'1e period in IMlich they are paid or payable.

Those employer superannuation ocntribulions lllat are paid io QSuper are paid at rates determined by the Treasurer en lh~ advice of the Stale Actuary. The Corpor;ition's obligation is timited to it~ conlribution to QSuper. The QSuper scheme has defined benelll and defined contribution categories. The liaDilitv for defined benefits is held on a whole-ol-government basis and reported in those financial statements pursuant to AA.SB 1049 Whole of Govemmen( and General •Govemmen.l S1;1ctor Fin,im;ial R9porling.

Key rnanagement personnel and remuneralio.n disclosures are detailed 1n Note 18.

Page 18 of41


Tour1ism and Events Queensland INotes lo and forming part of the Financial Statements for the year ended 30 June 20W

Co.nsolldated Parent 2020 2019 2020 2019 $000 sooo $000 sooo

NOTE 6 • OTHER E~PE"ISES Lease e)Cpenses' 25 1,8,98 25 1,789

Office accoinmodalion2 1,816 1,6&.4 Telepho.r1e, lax: and posta_ge 162 165 149 158 Information teohnology costs 1,867 2,199 1,809 2,151 Contractors and coos1.11iants' fees 300 827 300 82.3 Travel and accommodation expenses 74 10B 51 93 Printing. s!atlone.ry a11d ,office consumables 181 175 150 137 Staff training 286 293 271 280 Elecmcily and other chargl!'s 39 48 39 48 Impairment losses 5 1 !i 1 I nsu ranee and legal lees 278 244 259 19sl E:,rter,naJ a udil fees3 124 123 97 98 Fringe Benefits. TalC 50 46 47 4,4

Repairs and maintenance 38 94 38 73 Bank fees and charges 114 151 84 81 Subscriptions 76 52 71 48 Entertainment 5 22 5 22 Loss on foreign elCchange 81 81 COVID-19 !ll"lated s1,1pport• 1,02'8 1,028 Other 336 443 324 39,3

6,,BDJ 6,969 6,436 6,513

' Lease expen,ses lnc:lude l'ease rentals for short-term leases and leases of l'ow value assets. The transitional impac~ of the new st,mdard AASB 16 LeaS(ls are disclo~d in Note 1,(k).

iRefer to Note l(k) for disclosures about former ope<alir1g leases for office accommodation a11d Note 12 fer discl.osures about lease incenti11e liabilities relating to Department of Housing ,md Pubtic Works (OHPW) office ac«>rnmodalion.

31-otal external audit fees quole<I by the Queensland Audit Office relaling. to the 2019·20• financial yea.r (both tJ\e Corporation and Its controlled entities) are S125,700 exclusive ofGST (2019: $122,600) .

•aueenslaml's Seniors Community COVID-19 response related communications and enga9ement expendi~ure. Refer to Note 20 for detail of lhe key impacts of COVIID-19 on title Corporation during 2019-20.

Page 119 of41


Tourism and Events Queensland Not.es to and forming part of the IFlnancial Statements for the year ended 3 Cl June 2020

NOTE 7 - RECEIVABLES Trade debtors Allowance for lmpai rmeruloss

Grant receivable GSl receivable GST p.ayable Contract assets Other re<;ieiv.ib!es

Accounting Policy - Receivables


6,432 (5)

6 427

1,269' (134>

286 13$

1,556

7 983

2D19 $Dao

1,451 (J)

1,446

1,~99 2,176 (545)

286 481

3,797

5,245

Parent

~O:ilO 2019 $000 $000

6,410 1,216 (51 m

6 4D5 1,213

1,399

1,289 2,176 (48) (517) 285 286 138 481

1,644 3.825

8 0149 5,038

Reoelvabtes are mea,sured at amortised cost which approximatei; lheir fair 11alue at reporting date. Trade debtors are recognised al the amounts due at the ti111e of sale or se111ice delivery i.e. 1he agreed purchuelcontracl price . Selllement of these am ou nls is required williin 30 clays from Invoice date.

Accounting Policy - Impairment of Receivables The loss alr<rwance for trade dlebto/'S rellects Ufelim e expected credit losses and 'ncorporates reasonable and supportable forward-looking informatior:i. !Economic cll img es impacting lhe Corpo raliorfs debtors, and relevant industry data form part of ~he Corporation's impairment assessment.

T he Corporatron 's other reoeivabl'es are from Queensland Govemrnent agencies_ No loss allowance is recmded for these receivables on lhe basis of materiality. Refer to No!e 14 for the Corporation's credit risk ma:nagement policies.

Where the Corporalion has, no reasonable ex pectalior. of reco11enng an amount owed by a debtor, the debt is wrillen-off by directly reducing1 the receivab'le against the loss allowance. This occurs vutien lhe debt is 011er 90 days past due and the Co~poration has ceas,ed ,enforcement activity. II me amount of debt written off exceeds the loss ellowanoe, lhe excess Is recognised as an impairment loss_

T he amount of impairment losses recognised for rec.!ivables is disclosed in Note 6.

Disclosure - Credit Risk Exposlllra of Racaivablll!I Tne maximum e,cposure to ,credi t rls~ at balance date for receivables is the gross carrying amount of those assets_ No collateral is held as security and there are no otfler cred il enhancements relating to lhe Corporation's ireceivabl'es.

The Corporation uses a simptified provision matrix to measure lhe expected ,credit I.asses on ~rade and other d,ebtorr;, Loss rates are cal culated separately for groupi ngs of ct1stome,s with simi1lar loss patterns. The COflporatlon has determlned lhere are three ,material groupings tor measuring expec.ted credil losses base,j on !he nature of ttie revenue reflecting !he ,different cuslomer profiles fm lhese revenue streams._

Tti e calculalioos rePeci historical observed ·default rates calOUlated using credit losses e)(perienced on past revenue lransaclions dur ing the lasl five )'ears preceding 30 June 2021] for each group. The h istorical default 111tes .ire lher, adju sted by reasonable and su pportable forwa rd-looking information for expected ,changes in macroeconomic indlcaiors Lhal affect lt\e luture recovery of those ~ece/vables . For the Corporation's current 91rouplngs o f customers, 111staric11I observed defau lt rntes are the best es'li male of lorward-lool<ing expected default rates_

Page 20 of 41


Tourism and Events Qu,eensland Notes to and fo·rmin,g part of the F1inancial Sta.tements for the year ended ~O June 2020

NOTE 7 - RECEIVABLES jeonli,nued)

DisCIO$Ul"e - Cont"-Ct !ISHl1!

Contrac:t assets arise from contracts with c.istomers, and are transferred to receivables when lhe Corporation's right to payment becomes uncondijlonal. this usually oocurs when lhe Invoice is Issued to lhe cvstomer. The closing balance of receivables arising from contracts with customers at 30 June 2020 i-.; S6.7 million (2019 : $1 .5 million).

Accrued revenue that does not anise from contracts with customers are reported as part of Other receivables.

Significant changes in contract assets balances during the year:

- Contract assets increased by $5 mtllion relaling to a State Govemmeot financial incentive agreement for aviation funding.

Cons.olidaled Parent 2820 2019 2020 2019 $000 $000 $1100 $000

NOTE 8 - OTHER FINANCIAi:.. ASSETS Current Forward exchange contract receivable 1,508 1,471 1,508 1,471

Forward e)IChange• conlract payable (1,508) (1 ,454) (1,508) (1,454) 17 17

INon-Cu,rent Forward ei<cMnge contract receivable 997 2,520 997 2,520 1Forward exchange conlr.let pay.ible (997) (2,505) (997) (2,506)

15 15

32 32

1 he t..:orporar1on Intencts 10 rea1Ise 1'1 e rec.eIva1>Ie an<I setde• trle nabllll}' reIa11ng to roiwaro excl'lange connacrs simuHaneoosly therefore the r,ecei11able and payable are Offset and the nel amount presented 1n the Statements of Financial IPo,sition.

Accounting Policy - Other Fi11ancial Assets Deriv,i/iVQ Finl/Jnci!ll Instruments 'T1he Corporati.on uses derivative financial Instruments such as foreign currency contraclS to hedge ils risk associat~ with i•oreign currency fluctuations for general commitments in several of its international offices . Deri~ative fina!lcial instruments are not held for ·speculative purposes.

Oe1ivatives are recognised at fair value using the market approach . Deit11atlves are initially ~ognised at fair value on \tie dale lhe derivative contract is entered into and are subsequently re-valued at the repor11 ng date 111 line 'Mth market tluotualions by refe rence to current forward cxc~ange rates for contracts with similar maturily profiles.

The Co·~poration's deli..iative financial inshuments do not qualify !,or hedge accol.mting. Any gains or losses arising fnom chang;es in fair value are taken directly to net profit or kiss for the year.

Consolidated Parent

2020 ,'019 2-020 2019 $000 $000 HOO $000

NOTE 9 • PLANT AND EQUIPMENT Plant and equipment - at cost• 3,342 3,300 3,.302 3,247 Less: Accu'111ulated, depreciollion (1,681) (1 ,440) (1,641) (1,387)

1661 1,860 1661 1,860

• Plant and equipment includes leasehold Improvements of S2 ,075,550 (2019: $2,0,75,550').

Page 21 of 41


Tourism and Events Qu1eensland Notes to and form ing part of the Financ,ial Statements for the year ended 30 June 2020

NOTE 9 - P,LA.NT AND l:Ql.llPMl:NT (continu ed)

Reconoiliations of the can)ling amounts of eaclh class of prant and equfp111ent at lhe beginnlng and ettd of lhe cllrrenl financial yea, are set ,out b~low.

C ongo'li dated

Carrying amount al 1 July 2018 Addition& Tran!lfers O@preoiation expen se Carrying 11m0lllot at 30 June 2019

Carrying :tmoont a1 1 July 2019 Additions Depreciation expense Carrying amount at 30 June 2020

Parent

Carrying amount at 1 July 2018 Additions Transfers Depreciation expense Canying amount at 30 June 2019

Cairylng amoum at 1 July 2019 Additions Depreciation expen:se Carrying amount at 30 June 2020

Accounting Policy- Plant and Equipment

Rcrognition Thresholds

Plant and Equipment

sooo,

38 1,956

120 (254)

1 86111

1,860 55

(254) 1,661

38 1,956

120 (254)

1,860

1,aso 55

(254) 1,661

Work in Progress

5000

120

(i20)

120

(12D)

Total

$000

158 1,956

(254) 1,869

1,860 56

(254) 1,661

1158 1,956

(254) 1,BH

1,860 55

(254) 1,661

llems of pl,ant and e(!Uipmen1, including leasehold improvemerits, v.ith a historical cost or olher 11alue equal !o or in exeeS!i of $5,000 in lhe year of acquls[tlon are teported as Pla rrt and Equipment Uems with a lesser value are e~ensed in t~e year of acqu1silion.

Measuremerit

Plant and equipment 1is measured at historical cost in accord,mce ~th Queensland Tre.isury's Non-Curre11t A:sset Policies for the-Queen1;land Pl.lbli(; Sector. Historical cost is det.em,ir,ed as lhe \falue gi11eo as conslderaUon plus cos1s incidental to the acquisibon, including all aiher costs incurred in getting assets r,eady for use. The carrying, amounts for such plant and equipment is not materially different from their lair value .

Deprer:iation E.Kpen,se Plant and equipment ,is depreciated on a s1raight-line basis so 11s lo allocate the net cost, less ils estimated residual value, progressively over its estimated useful life to the Corporalion.

l<ey Judgement: Strarghi line depreciation is used reHecling1 the progressi11e, and e11en, ,consumption of Mure ewnom ic benefits ove-r their usefVI life to the Corpo1a!Jon and cons.olidate.l entity.

The depreciable am ou nl on leasehold improvements is allocated pro9ressivel'1' over the estimated useful U11es of the improvements ar lhe unex:pired period of the rease, M ichever is the shorter. The unexpired period of a lea.se Includes a11y option period wtiere exercise ot the option is probable.

For the Cmporalion·s depreoi!lble assets , the estimated amount ~o be received on disposal at the end of lheir useful lif,.i (residu;il value) is del.ermiried to be .:era.

Page 22 of 41


Tourism and Events Queensland Notes to and forming part of the financial Stateme,nts for lhe year ended 30 June 2020

NOTE 9 - PLANT ANO EQUIPMENT (continued) Accounting Policy - Plant and EquipmeRI ~continued)

Key Estimates: For eacil class of depreciable asset the following useful lives are used:

Plant and equipment: 2020 Leasehold impro11emenhl Lease term: 8.6 years

ComputBr equipm1:1nt 3 - 1,0 years

2019 Lease term : 8.6 years

3 - 10 years Fumitur,e. fixtures and fittings 6 - 12 ye-.'lrs 6 - 12 yearis

Impairment All plant and equipment are assessed fo1 indicalors of impa[rmen,i on an annual basis. If an indicator of possible impairment exists, the Co~pora:tlon detemiines the asset 's recoverable amount Any arnount by which the asset's carryi11g amount exceeds tne recoverable arnounl is recorded as an impairment loss.

Recoverable amount is determined as the higher of lhe asset's fair value less costs lo ~ell and the o'epre(;iated rBplacement casl An impainnenl loss is recognised immediately in the Statements of Comprehensive Income.

Where an impalnnent loss subsequently rev,erses, ltte canying amount of the assel is increased to the revised estim al.e of its recoverable amount, but so, that the increased carrying amount does not exceed 1h e carrying amount that would have been delenmined had no impairment loss been reoognised loc the asse-t In prior ~ears. A reversal of an Impairment loss is recognls.ed tt1rough Income.

Consolidated Parent 2021) 2019 2020 201!) $000 $000 $000 $000

NOU, HI· PAYABLliS Cummt Tr.ide cred ilora 88 1,470 J,619 4,565 Accrued e:qienses 6,859 3,750 6,764 3,510 Contract liabtlilies 7,902 3,044 7,902 35.2 Grant payable 1,421) 1,420 Other creditors 397 454 214 481

16,666 8,718 19,919 8,906

Th e Corporation hall a MasterCard credit facility with Westpac to a limit of S1,500,000 (2019: $1,500,000) a,nd a Transaction Nego1ia1ion Authority limit (INA) or $.3 ,800,000 (2019 : $3,800,000). Al 30 June 2020, !he Corporation ha.d utilised $23, 181 of (he MasterCard credit facility (2019: $11 .000), and $nil ol the TNA limit (2019: $nil)_

Accounting Polley - Paya'bles Tra,de oredita rs are recognised u_pcn receipt ol tt:,e good's ar services ordered and are measured at the nominal amount i.e. agreed purcha$e/oonlract price, groscs ,of all applicable trade and other discounts- Amounts owing are unseoured.

Disclosure - Contract lla'bilities

Co11tra.ct nabilities arise from con~racts Wlilh oustome<s l'klile other unearned revenue arise from transactions that are not coolra.cts with customers.

The full amount ol lhe contract lrablllty balance al 1 July 2019, $0.35 million, ha.s been recogniseci as revenue in 2019· 20 .

Contract liabllltles at 30 June 2020 rlnclude $5 million relating to funding received for an a,vialion recovery speti,11 iniliative program and $2-46 million far Attracting Aviation lmres1mim1 Fund programs for services to, be deli,ve<ed in the next 12 months, These amounts a-re e.-pecled to be recogl"lised as revenue within the ne.xt 12 mo11ths_

Page 23 of 41


Tourism and Events Queensland Notes to and forming part of the Fi1nancial Statelftents fot the year ended 30 Ju:ne 2020

NOTE 11 -ACCRUED EMl>L.OYEf aENEf'ITS Cul'l'mt Ann1Wal leave Long Mrvioo leave Wages outslaridlng

Nori.Current Long ser,nce leave


2,017 1,817

191!1

4,024

575 575

Parent 2019 2020 2019 $000 $000 $000

11,834 356 32B 11,746 228 213

274 4 12 3,856 588 553

434 434

4 .599 4 290 588 553 Accounting Poticy - Accrued Employee Benefits Note 5 details the a.ccounting policies lOf' accrued employee benefits .

NOTE 12 - OTHER LIABIUTl!i:$ Cu11'8nl Lease Incentive

Non-Cur~ant lease ince1111J11e

Consolidated 2020 $001il

P,mmt 2019 2020 $000 $000

416 416

2 715 2 715

3 131

Tile Corporation's lease inceintive liabilities relating to Department of Housing and Public Wotks (DHPW) office accommodation were derecognised; agains.t opening Co111trlbuted equirv on 1 Julv 2019 on l!ransilion to AASB 16 Leases . The trans ilional impacts of !he new srandard are &sciosed in Note 1 (k).

2019 $000

416 416

2 715 2 715

3 131

Page 24 of 41


Tourism and Events ,Queensland Notes to and forming part of the Financial Statements for the year erided JD June 2020

NOT£ 13 - FINAIIICIA!I. INS'JRUMEINTS Recognition Flnancial assets and fina110lal llabllltlM are ,recognised in lhe Statements of Financial Position when lhe Corporation becomes party to the contrach.J al provisions of the financial instn.Jment.

Classification Financial instrum ents are classified and measured a5 foHows:

- Cash and cash equivalents; - Receivables : held at a mortise<! cost (refer to Nole 7): • othu Financial Assets: For.vard exchange contracts receivable/ payable held at fair value through profit or lass (refer

to Note 8); andl - Payables : held at amortised cost (reler to Note 10).

All other cUsclosures relating to the measurement and liinancial risk management ot financial inst~uments held by the Corporation are lnclud ed in Note 14.

NOTE 14 - lfllNANCIAL RISK !MANAGEMENT Financi3I ,risk management is implemented pursuant to Queensland Government and Corporation policy covering specltic areas such as mitig:ating foreign excharige ns!k. and use of deri11;11ive financial instruments-. Tlie-se policies focus on ~he unpredictability of firn~nci:;!l ma.rkets and seek to minimise potential .id verse effect 1. on lt.e financial perfo~mance of the Corporation.

The Corporation's aciMlies e,rpose it to a variety of financial risks - foreign exchange risk, credit risk and liquidity risk. The Corpor.alion measures risk ex:pasure using a variety of melhods as follows:

Ri:5k Exposure IIMeasurement Method For-e lQn e:.fchanQe rir;k IForela,n exchanQe senr;illvt!i' analvsis. Credit risk Ageing analysis. earnings at risk Liauidilv ri,sk !Cash How management

Page 25of41


Tourism and Events Queensland Notes to and forming part of the Financial Statements fOf" the year ended lO June 2020

NOT!; 14 - FINANCl~l RISK MANAO,!':MENT ,(continued)

a) Foreign Exctiange Risk

Foretgr'I exchange ris.k arises 1M1en future transacbo119 are denominated In nor'l•Austrellan currency. The Corp0ralion opera~es nationally and intemabona~y and is e:qiosed lo foretgn exchange risk anising from currency exposures to for,eign c,urrency. The CoipQraaon enters into forward fore:ign exchange contracts wher,e available under 'M:'lich it is obliged: to receive foreign ourr,ency at set exchan,ge rates and pay a predetennir'led amount ,of Ausltalian dollars.

The Corporation's foreign exchange risk management policy is lo hedge betvileen 50% and 100% of committ.e<I and forecast purchas.es denominated in foreign currency where settlement is within 12 months and uip to 100% ol committed purchases denominatea in foreign currency where setllemenl is greater than 12 months.

The fo'llowing tabl.e summarises lhe fair value of forward exchang,e contracts held at balance dale by currency, stated in Aus1ralian dollars :

Flr,anclal ~sset Flnaticlal LlabUlty ~el Exposure 2020, 2019 2021) 2019 2020 2019 sooo, $000 $000 $000 $000 $000

EUR 1,117 2,088 1,;;117 2 ,096 (8) USO 1,288 1,903 1,288 1,863 40

2,SOS 3,991 2,505 3.959 32

The Corporation intends to realise the re-=elvatlle and settle the liabliily re,laling to forward exchange carrtracts simultaneously therefore the receivable and payable are offset and the net amount presented [n the Statements of Financi.1I Position.

b) Credit Risk Credit risk exposure ,referi; to a situation vihere the Corporation may lncu r financial loss as a ,re!lult of an other party to a financial instrument failing to, discharge their obligation.

The Go,poration aims lo reduce the exposure to ciedlt default by ensuring it invests In secure assets and monitors all fund=:i owed on a bmety basis . The C01pOra~ion is exposed to credit risk in respect of ils receivai>les ~refer ta Nate 7) . Exposure to cred ii risli( is monitored on an on~going basis.

c) Liquidity Risk Li guidi(y risk refers lo the situation ~ere the Corporation may encounter difficulty in meeting oblig aliom; a1:1~or;iated with financial liabililies lhat are seltled by de!l11ering cash or another firnancial aissel

The C01poration manages its expos1.1re to liqvidiiy risk by ensuring that lhe Corporalion has sufficient tund9 available to meet employee and supplier obligations as lhey fal/1 due. This i,s achieved by ensuring that minimum levels of cash are held wilhin the various bank accounl:s io match lhe expecwd duration of the various employee and1 &upplier liabilities .

Page 26 of 41


Tourism and Events Queens'land Notes to and formi1ng part of the Financial Statements for ttie year ended 30 June 2020

NOTE 15 • FAIR VAll.JE MEASUREMENT Accounting Poliekes and Inputs for Fair Values What is fair value? Fair vafue is the price that would be received to sell an asset or paia to, transfer a l iability in ari orderly trarnsaclion between maJtcet participants at the measurement date under current market condij ions (i .e. an el(7it price) regardless of !Mhettier that price is direcUy derived from observ,able inputs or estimated using anoll1er valuation technique.

Observable inputs are publicly available aata that are relevant to Ille ch1m1cteristics of the assetslliabilities tleingI valued.

Fair Value Measuremenl Hlerarcfly All asse,ts and llabi!tties of ~he Gorporatian for which fair va.lue is measured or disclosed in the financial statements are categorised wilhin ~e fallowing fair value hierarchy, basl!!d on, lhe data and assum plicn.& used in 111e most recent sp.ecilic appraisals:

Level 1 represents fair value measurements that rellect unadjusted quoted market prices in active ,markels for Identica l assets and Uabil iU es.; Level .2 represents fair value measurements that are substantially derived from inpuls (other than q uoled pricl!!s included wilhin re11el 1) lhal are obser11able, eilher dire!:ily or indire.dly; and

Level 3 represents fa fr value measurements that are subsre.mially denved from unobs.eruable inputs,

The Corporation's forward excliange contracts have been class.lfied as level 2 fmam:lal 1nstrn rnen1s.

None of the Cor)'.)oration's ... aluations. of assets or liablllties, are eli.gible for <:alegansatian lrito ieYel J ,of the fair value ~ierarchy.

There were no tran sfers of assets between lair value hierarchy llevels du ring the pe riod .

NOTE 16 - COM MITMIENITS AND CONTIINGENCIES

Material expenditure oommilments (inclusive of non-recoverable GST input lax credits) contracted for al reporting date but mat recognis,ed irn lhe accounts are payable:

Consolidal~d Parent 2020 2019 2Q20 2019 $000 $000 5000 $000

Not later than one year 3 0,734 34.401 J0 ,730 34,401 Later than one year but less than 5 years 40,55'2 37,341 40 ,552 37,111 Greater than 5 years 2,113 250 2,113 250

73,399 71,992 73,395 71 ,76.2

Contingencies

As at 30 June 2020, potential payments In accordance with cont,ac1ua1I commitments totalled a maximum of $12.3 minion (2019: $1 1. 8 miNianJ payable over s ieo: years.

Page 27 of 41


Tourism and Events Queensland Notes to and forming part of the Financia.l Statements for the year ,ended 30 June 2020

NOTE 17 -!RELATED PAJtTY TRANSA.CTIONS Transactions with other Quesnsland Govfjmment-c,onlro!led tJn/ilies The Corpor~on's primary ongoing source of funding for delivery of its objectives is 9,rants and contributions from the Queensland Government (refer 10 Note 2). The grants and conlributions are provided in cash lrom Queensland Treasury prlrnanly through the Department of State De\lelopment, Tourism and Innovation.

In March 20118, the Corporation entered Into an arrangeme11t with the Department ,of Housin.g and Public Works (DHPVI/) for non-specialised, commercial office a.ccommada~on through the Queensland Governme~t Accommodatlo1t Office (QGAO) wllh a commencemenl date of 1 Jui')' 2018. Note 1(1<) outlines the accounting policies and metihod for recognising this arrang,emenL The total 11alue of cash payments made lby lhe Cociporatior, in 2019-20 I.md'er this agreement was $1 .15 mimon (GST inclusive) (2019: $0.47 million).

The Corpora on holds agreements for shared o ·ce accommodation tram Trade and Investment Queensland (TIQ) for several of its international sou rce market offices In addition to agreements for the secondme I of inlema!lonal source r1:1ar1let employees lrom TIQ to the Corporation. The lotal value of c:ash pal'fTlents. made, by lhe Corpora~on in 2019-20 under 11:lese agreements was $1 .47 million (GST inclusive) (2019. S1.50 million).

During 2019-20 the Corporation a'lso received special initiative grants and conlributions from the Deparlrnenl of lhe Premier and Cabinet of $406,437 (GST inch;~ive), the former Department of State Development, Manufacturing , Infrastructure and Planning of $390,500 (GST inclusive), and the o,epartment of Education of $11 ,000 (GST inclusive),.

Transactions wifh tll~ Minis!er ,m(f Minister ffJ/at!fd entities The Honour.ible Kaie Jome~ MP is. the Minister for State Development, Tourism and I nnowtion. Grants from the Department of Slate De~elopmenl, Tourism and l11no11alion to the Corporation are d:isclce.edl,in Nlote 2.

Transactions with Boaf'(f membi;,rs and Board member related entities In til e ord[naiy course of business conducted under normal teirns and c-0ndilions, lhe Corporation has dealt with the following, Soard members and Board member related enlil ies:

Brett Godl,ey Is a Board Director of Rugby Australia lid. Net transactions between 1he Corporal.ion and Rugby Austra lia Ltd !or ths year tota[led a. net paymenlofS419,256 (GST inclusive). Transaclions related to evenl funding instalments.

Karen Hanna-MIiier is lhe Execubve Producer. Edge Studio (part of the C.uttlng Edge Group). Net lfansactions. between the Cor,ioration and Culting Edge P.ost Pty Ltd for the year totalled a net ?ayment of $495.638 (GST indusl11e). Transacll:ons related to, post production s.e111ices. Dr Sarah Kelly is a Board member o f Gold Coast Events Marnagement Ltd . Net transactions between tile Corporation a.nd Gold Coast Events Management Ltd for the year totalled a net payment of $2.,25 B,300 (GST in.elusive). Brenda LaPorte ,s Vice President. of Athletics Australi,i and Deputy Chair of \he Sunshine Coast Events Board (established by the Suns:hi ne Coast Regional Coundli . et transa.ctions. betiNeen the Corporation and the Sunshine Coast Regional Council for the year tolalled a net payment of $250 ,800 (GST inclusive). T ransa~tlons related Lo event fundin g instalments.

Chris Mills is lhe Chief Execubve Officer of Queensland AirpoltS. Limited (<Mms and operate.s Gold, Coast, Townsville, Moun,t Isa and l.ongreach Airporll!). Net tn;msactions hetwee11 the Corporation and Gold Coast Airport for lhe year totalled a l'iel pal'IT1enl of $324 (GST ,inclusive). Transactions related lo parking. Johnathan Thurston Is an empl'ol'ee or Nine Eot.ertaln111ent Co. Nel 1r.1nsactions between the Corporation and Nine Network Australia Ply Ltd (a division al Nine Enlertainme I Co,.) for lhe year totalled a net payment of $759, 7S (GST inclusive). Transactloos related to flights and event f~nding instalments.

Damien Walker is lhe Director-Gen eral of the Department of State Development. Tourism and Innovation.

Page 28 of41


Toudsrn and Events Queensland Notes to andl forming part of the Financ1ial Statements tor ll'le year enc!ed 30 June 2020

NOTE 17 - RELATED PARTY TR.At-lSACTIONS (continued)

Transacrions with Con/rolled Entities In title ordinary ,course of buslness conducted under normal terms and condlllons,, the Corporation dealt with the Tourism and' Events Queensland Employing Office arid Gold Coast Evenl5 Management tt1:I.

The parent entity provided funding to:

Gold Coa,sl Events Management Ltd for the operation and mariagement of !he Gold Coast Marall1on and Pan Pacific Masters Gam es in lhe amount of $2,258,300 (GST inclusive) fm lhe year ended 30 June 2020 (2019: $713,520]; and

Tourism and Events Queimsland Employing Office for the provision of employment services in 111@ amount of $18,629,321 for the year ended 30 June 2020 (2019: $16,055,611).

NOTE 18- KEY MANAGEMENT PERSONNEL (KMP) DISCI..OSURES The Corporation's responsible Minister 15 Identified as part o! the Corporation's KMP, consistent witti additional guidance included in the revised version of AASB 124 Rela/1,d Party DisclosCJres. Thal Minister is lhe Honourable Kale Jones MP, Minis.terfor State Development, T,ourism and Innovation.

Key executive management personoel and remuneration disclosures are made ,n accordance with secllon 5 of !lie Financial Reporting Requiremenis for Queensland Government Agencies issued by Queensland Treasury.

a) Details of Key Management Personnel Board Members ne role of lhe Board is i.o provide sirategic directi~ and effeotl~e govemance over the Corporation's affairs to ensure It discharges its legislated responsrbllitie.s while regarding the interests of all stakeholders induding the tourism industry, employees. suppliers and local communities . Further information on the Board can be fou nd in the body of the Annu;il Report under the section relating lo Corporate Go11emance,

!Position Name Chair' Brett Godfrey

IDeouhl Chair 1 James OiJCQn

1B oard Member 1 Karen Hanna-Mi"!fer

Board Member' Nancy Bamag11

Board Member1 Dr Sarah Kelly

Board Member' Brenda LaPorte

Board Member' Chris Mills

Board Member' J ohnalhan Thurston

Board Memba~ Director-General - State Development, Tourism and lnnovali:OJi 1 Aw□intment authority-- Governor in Councill

• .AIJl)O!nUllent 111t!'>Ont'I' - Permanentmern1>er 1inder roolfsm .;i;,rJ f:Wlors Qwe.llSIM(1 ACI 2012

Page 29of 41


Tourism and Events Queensland Notes to and forming part of the Financial Statements for lhe year ended 30 June 2020

NOTE 18 -KEY MANAGEME'NT PERSONNEL (l<MPI DISCILOSURES (continued) a) Delai.ls of Key Management Personnel (cantinued) E)Ceculive M.w"agement The foClowing dela.ilsc for non,ministerial, non-board member KMP renect those positmns that had authority and responsibility fOf planning, directlng aod conlfOlling the acli\/ities of the Corporalion during 2019-20 and 2016-19. Fu rther ,information an these positions can be lound in the body of lhe Annual Report under the section re1atir,g lo Ei1ecutiv,e Management

Position Positlo~ Rescoi:,slbllltfes

Ohief Executh1e Overall elficierit, effective and econom ical admini:stration and operation of the Cosporation in

Olficer1 accordance with lhe Tourism arid Events ,Queef!s/and Act 2012, the Board's priori\'ie5 and the Corporation's strategic plan and oodget. Leadirig lhe marketing group to ensure the ongoing development and implementation of the

Group, Executive Global Marketing Strategy 2025; identify, showcase and support the de11e1opment of lhe

Marketing' Queensla1nd Experie.noe Framework_, Hero Experiences and Best of Queensland Pfogram; and develop co.m1erslor1 focused consumer 111,ari<eting activity that delivers increased overn ight visitor excendilure for indu strv, Leading lhe Goiporation's del ivery of operational, strategic, people. resea,ch and t1!1lanoial activities , as \Yell as the media, corporate communkabons, m1nistenal and government relation

Group Exe<:Utive aclivilies. Corporate u The Group Exeollli11e Conporate is also the Chief Fin encial Office" .ind Bo.1rd SeCl\!1ary and ts

responsible for managing t e Corporabon's financial ,acliv1tles Including repol'bng and financial f)lannina .

Graup E:xe<:mive Leadll'IQ the C or~oration's media, corporate communications, ministerial' and government Corporate Affairs'·' relations activities to ensure effective relatiorishlps with ke',' stakeholders.

Group ExeQ:J1ive Leading ihe delivery of a world-class calendar of events for Queensland , guided by the Events

Events' Stiategy 2025, and optimising the value of QueencSlland's event ca.lendar by leveraging dle competitive advantage provided by QtJeen.s:land·s unlq ue eveni experiences.

Lead the Corporalion' s strategic g1lobal and aviaUon partnerships and international sourcel market op!l'rations tncluding engagement with ~rade and industry. Tti.e Group Executive:

Group Execv1ive Pannerships also works in partnersliip with Regional To1.1~ism Organisations and industry to Partn ershipsz deliver desbnation prioribes and leads Cl'O$S-Governm ent projects in, part,iership with the

Departm1;1nl of State Development. Taunism a11d Innovation. State and Local and reIeva111 Federal Go11emme11t acencies.

1 Appolnlment s~h0fl1~ - Gauemor Ln Cooncl ' Appointment •~hoot~ - TEQ Board 3 GrOijJI E.-ecuto,e Corp,;,,j!.11' ~nd G<cup-ExeruhYe Corporate Affair> merged 1'l one positi.on dun,g 2019-20

b) IQIP 1Rem1meratlon IPolicles and Expenses Ministerial remuneration entitle.1'111ents are 011tlined in the Legislative Assembly of Queensland1s Members' Remuneration Handbook. The Corporalion does 1101 bear al'ly cost of remuner.ition of Ministers. The m.ijority of Ministerial entiUemems are paid by the Legist,alive Assembly, with the remalning enUllem ents being provided by 1h e Ministerial Services Brar,,ch within the Department of the Premier and Cabinet. As all Ministers are reported as KMP ,of the Oueenr.land Govemme,nl, aggregate remuneralion eKpenses for all Ministers is disclosed in ttie aueen~and Gtmeral Government and whole-of-govemment Consolidated F,inancial Statements , which ar,e pul:Jlished as part of Queensland Treasu~•s Report on Stale Finances.

Th.e fOllowing disclosures focus on the expenses incunred by lhe, Corporation during ~he respe.oti11e reporting periods that are attributable to non-Miin is!erial KMP. Therefore, the amounts disclosed reflect expenses recog ised in lhe Statements of Comprehensh1e Income.

Pag.e 30 of41


Touriism and Events Queensland !Notes to and forming pa,rt of the Financial Statements far the year ended 30 June 2020

NOTE 18 - KEY MANAGEMENT PERSONNIEL jKMP) DISCLOSURES (cm1tinued) b) KMI> Remuneration l>olicles and Expenses (continued) Board Memb1;11'$ Remuneration policy for the Corporation's. Board is set by 111e Governor i11 Counc~ as provided: for under trne Tourism and Ev,tmts Queensland Ac;t 2012. Remuneration for Board members comprises ~ e following components:

Shon-term employee expenses ....tlich indude board member fees and mileage allowance Post-employment expenses which incfode superannuation contributions.

Position Name

Cha ir Brett Godlrev ' 'Q!p__LJl)t Chair James Dixon~ Oer:nrty Chair Julieanne Alroe' Beard Member Karen Han na•Milferi Beard Mllmber Nanc,, Bamaqa• Beard Member Dr Sarah Kell./ Beard MBmber B1enda LaPone• Board Memblo'r Chris Mills• Board Member Johnathan Thurston◄· Board Member GarvSmith2

13-0ard Member Anna Guillan2

Board Member Paul Donovan2

13-0ard Member Professor Judith McLear,2

Board Member Director-General Total Remu.neratlon

1 A~~ 1 ~ S~.ptem~er io 1 t ' T""" """"'d 2 Augus t 2il1 B ' R"-<!lppoin1ed 3 Augus1 20,13 • Appoiniecl 3 Augusi 2018

1Elllec-utive ~a11ageme11t

Short•Tem, Post-Employment EmDlovee Benefits Benefit$

2020 2019 2020 2019 $000 $000 $000 SOOD

JS 35 3' 3 10 10 1 1 . i . .

10 10 1 1

10 9 1 1 10 9 1 1 11 12 1 1

10 9 1 1

1D 9 1 1 . I . . . 1 - . . I - . . I - . . - - .

106 108 10 10

Total

2020 2019 $000 $000

38 38 11 11 . 1

11 11 11 10 11 10 12 13 11 10 11 10 . 1 . 11 . 1 . 1

- . 116 11B

!Remuneration policy for the COfJ)oration's executive is set by the Board's Audft and Remuneration Committee. The rem uneration and other term s of emproymen1 for the key execulive management personnel are speollled in employment contrac1s.

Remuneration for executives ,comprise of the lollcwing components:

- Short-term •employe,e expens.es 1Mlkh include: rn Base salary, allowances and l'ea11e entil!emeots paid and prol'lded for the enllre year or for lhat pa,rt of the

year during which the employee was 11 KMP·; and (ii) Non-monetary benefits - provision of benefit~ 1ogell'\er with fringe benefits ta~ applicable Lo lhe benefit.

- l ong-term employee expenses. ind ude amoun15 e)(:perised in res.peot of long service leave entitlements earned.

• Past•em ptoyment expenses ,include amounts expensed ,in respect of employer superannu.alion, obligations..

• Termination benefits are not provided for within individ11al contracts of employment. Contracts o! employment pro\llde only for no~ce periods or paymenl in lieu or notice on termination, regard less of the reason fur tennination.

i ota'I fl)(ecl rem uneration Is calculated on a 'total •cost' basis and includes the base and non-monetary benefits , long•,term em,plcyee benefits and post-employment benefits .

Page 31 of 41


Tourisrn and Events Queenslland Notes to and forming part of the Financial Statements for the year ended 30 June 2020

NOTE 18 - KEY MANAGIEMEINT PE1RSONINEL (KMP) DISCLOSURES (continued) bi KMP Remuneration !Policies and Expenses (contlnued) exec:utive Mirnagement. 1c.ontinueiJ)

Shoril--Tenn Long-Temi Post-

Employee Benanl's Monetary Norn1.-

EmployH Empioym&nt

Expenses ·Monetarv Expens&s Benefits

Position 2020 2019 2020 2019 2.020 2019 2020 2019

$000 $000 $000 $000 $000 SOOD $000 $000 Chjef Executive omc.er 325 338 . . 9 9 38 40 Group IExecuilve

286 280 . . . .

27 26 Marketing Group Execu~i11e - - . Col'Oorate•

289 261 2 33 :lCI

G1ou p Execu~lve - 186 .

9 .

9 - HI Coro orate Atlairs, ·2

Group Executl've Events 321 295 . . . . 13 20 Group Execu~i11e - . - . i:'annershics3

177 261 18 24

IGroup EKecuijve 82

- . -2

-6

-Partnerships• Toti.II Remune,t';.ltlon 1 480 1 62 1 1 1 11 18 140 158

Termination Benefits

2020,I 2019

$000 sooo -

. .

. .

.

. -

105

"! -

105 • I

1 Group Executive Corporate a01d Group Executive Cofporate Attain; merged to o~e posi ·on during 2019-.-0 1 On secondment from 31 July 2017 - 13 July 201 B an(! 29 April 2019 tllrough to ,e$igristion, date 30 September 21)19 'GrDup Executive Par1rnerah p,; res~necl 21 Feb11Jary 2020

'lr1l~rim Grol.lp E;t,icLrtlve Partn~rshl~ lrom 24 IFebruary 2020

Total

2020 2019

$000 $000 372 387

313 306

3.22 293

. 222

339 315

JOO 285

-90

1 736 1,808

?age 32 oi 41


Tourism and Events ,QIIJE!i!nsland Notes to and lonning part of the Financial Statements for lhe year ended 30 June 2020

NOTE 19, -INVESTMENTS IN CONTROLLIED IENmlTIES The following entitiel!I are controlled by lhe Corporation:

Name of Purp<15e &

I Dlr,ectly % :1 nterest in Entity Prlnclpal

Total AS5ats Total

Total Revenue Operating

U abllilies Result Controlled & B.t.$i$ for Control

Acllvl tl es ol En t lty I 2020 201 9 2020, 2019 2820 20119 2020 2019 Entity $000 $000 $000, $000 $000 $000 $000 $000

100% - Th e Tourism n,e Tourism and I I

and Events I

Tourism and Queen.sland events Otieens1smd :

Events Em plo'flng Office ls Employing Office's

, Queensland established as a objective is. to

3,912 3,381 3,917 3,381 18,629 16,056 - . i Employ,i11g Statutory Body U!'lder

provide

Office the Tourism and employment

Events Que11m,l1Jnd services to the

Act 2012 Corporation.

Gold Coast Events Management Ltd

Gold Coast 100%-The llades as I1:11ents CO!jparation is the Management I

Events s.ol'e mern'ber of the Queensland and I 1,997 3,717 630 3,644 6,707 '6,006 1,294 646

Management company limited by operates the Gold

Lid guarantee Coast Marathon and the P1on Pacific

' Ma&ters Games. i I

Controlled Enltlies Comprising the Economic Entity The consolidated firiancial statenJ1enls of the economic entity com1prise the transactions and balances of ttie Corparatio and ihe directly controlled entiiies listed above.

The audnor far the Corporation and alll controlled enlities is. lli@ Auditor-G1meral of Queensland.

,NIOTIE 20 - IMPACT$ OF COVlO• 19

The coron;;111i~us pandemic (COVID-19) has signifk:anl ly 1m'1acted the global and domestic tou rism and events industries. The key impacts of COVID-19 on lhe Corporation during 2019-20 are:

The Corporation l~psed grant and contribution Income from Stale Governmenl originally budgeted for receipt during 2019-20 to the Slate Government Consdtid'ated Fund as a result of paused markeling aclivity and event cancellations/suspensions, $12.63 million (refer to Note 2) . The Gorporauon·s ab ility to generate cooperative markeling and event lnc.ome wll/1 industry and other partners was impacted in ihe second half of 2D 19-20' resuHing in a reduction in oooperath1e income compared with the previous financial year (refer to Nole 2).

• The Corporation's marketing and event slrateg,ies were revised lo appropriately respond to the change in the iouriSJ'l'I and event landscape and in respons@ to 11'1@ gl.cbal and clom eslic travel restJictions (reler to Note 3) .

• !Events owned and operated by the Corporalion's controlled entity. ,Gold Coast Events Management Ltd were cancelled or po:slponed The 2020 Gdld Coast Marathon was can~lled and the 2020 Pan Pa<:ffic Masters Games pos~oned 11ntll 2021 ,(refer to Note 2).

• The Corporation was tasked to provide support (bath, resource and financial) to u,e Queensland Seniors Community COVID-19 re!>ponse . Acli\rily and expenditure related to communications a11d engager11enl (refer ID Note 6) .

There are no me.terial impacts 011 the Corpor.ilion's Statements of Financial Position at balal'lce d.ite .is a resuH of COVID-19.

Page 33 of 41


Tourism and Events Queensland Notes to ,md forming1 part of the Financial Stc1tements fo:r the year ended 30 June 2020

NOTE 21 - E~ENTS OCCURING AFTER BALANCE DATE

There were no events that occurred after balance date which woulc materially affect the firnmclall .statements ,or

di sciOllures.

NOTE 22 - B'UDGETARY REPORTING DISCLOSURES

This note discloses the Corporation's original budget figures presented to Parllam ent tor 2019°20 compared to actual financial r,esults, wilh ex:planations ol major variances, in respect of the Corporation's Statements of Comprehensive Income, Slatements of Financial Position and Statements of Cash Flows.

Statement or Comprehensive lnc,ome The par,ent entity's original budget for Expenses from Continuing O,:iera!ians has been reclassified to align with the c,1assif.calion of line items of the ,correspond1ng actual financial statements of tne parent entity.

Income t,om Contim.1ing Operations

Grants and cantributians Cooperallve income Other revenue

Total Income from Continuing ,operations

EXIJ)enses from Continuing Operations

Marketing, development arid events. S(lpport e)(penses Grant pa}'ments Employee expenses Depreciillion Olher ,ell:penses

Total Expenses firom Contln ul111g Operations

Operailng Renli from Contlnulng Operations

Other Comprehensive lhcome

Total Comprehensive Income

Original Eludget

Variance 2020 Note $D00

1 131,038 2 10,,uoo 3 600

141,638

4 64,608 4 49,,995

5 21 ,B55 330

6 4,850

1411638

Parent

Actual Variance

2020 2820 $000 $000

1211,760 9 ,278 4,707 5,293 11,531 (931)

127,998 13,640

55, 12.2 9,d86 44,708 5 ,287 21 ,478 377

254 76 6,436 (1,586)

1271998 1131640

Page 34 of41


Tourism and Events Queensland Noles to and form1ing part of the Financial Stalements loc the ~ear ended 30 June 2020

NOTE 2.2- BUDGETARY REPORTING DISCLOSURES (CQntinue<O Sta1erne!'lt or Comprehensive l"1;ome (continued~

ExpJanallon of Major Variances - Slalemenl of Comprehensive Income

1. The decrease relates largely to the llapse of budgeted grant fund in~ from the State Government to the Consoltdatecl Fu nd In 2019-20 (S12,6 m~llo11) due to, paused marketing activity ancl event cancellationslsuspension:s as a ronsequenc;e of COVID-19. The decrease was partly offset by til e recelpt of State Government recovery funding for targeted tourism campaigns lo promote travel to Tropica1 North Queensland and the Gold Coast ('$4.8 million).

2. The decrease reflects the red uction in oooperalive marketing and everil acti~ity Wllh industry and other partners during the second haH of 2019-20 a, a result of COVIID•19 ($5 .3 million) .

3. Tne increase is primari ly made up of funds relurnecl lo the Corporation during, 2019-20 in accordance will, conlractual r,equirements ($0.6 milnon) and foreign c:umrncy hedge gains ($0.1 million] . Tne relUrned funds were reallocated to rele11ant program activities ln-lil\le with the orlginall conditior,s of lhe related funding.

4. Tne decr·ease primarily reHects paused ma1keting activity and e1Jent canoellations/suspensio11s as a consequence of COVID-19 resulting in tower than budgeted marketing and event funding, instalment e,,:pendil'ure ($12.6 miill on) in addi. on to the impa.ct or a reduction in cooperative marketing and e11enl aclivny with indusll')' and other partners during 2019-20 also as a result ol COVID-19 (S5.3 mill'on) .

5. The deCTease relates large'ly ta 11acancies lhroughoul the financial year. Some \Jacandes were filled temp0rarily through the use of contractors. The cost of contraoton; ere recocded as other elrpenses.

6. Tne increase primarily relates to the Corporati'on·s expenditure o communications and engagement for Queenstand's Seniors Community COVJD•1 9 ~es.pon&e during 2019·20 ($1 million).

Page 35 or 4 1


Tourism and Events Qrueensland :Notes to and forming part of the Financial Statements for 11ie vear ended 30 June 2020

NOTE 22 - BUDGETARY REPORTING DISCLOSURES (continued)

Statement of Financial Position

The Parent entity's original budget for Payables and Accrued employee bemifits has been reclla~sified to align with the classification of line iter,,s of the co,responding .!ctua11 linancial statements. of the parent entity.

Curre"1 Assets Cash and cash equivalents Rec;eh1abl ,is

Prepayments ou,,er 01.urent floanc,al assets Total Current Assets

Non-Current Assets Property, plant and equipment Total Non,.Cunrent A$sew

Total Assets

Cumin Lla'billtles Payables Accrued employee benefits Other current liabilities Total Current Lia bllitles

Tot11I Li;1bilities

Ne,tAsset:s

Equlty Gontr,ibuted equity

Accumulated de!icil Total Equity

Variance Note

1 2

3

4

Original Bud9et

2020 $ODO

5,049 3,077

529 39

8,694

1,828 1,828

10,522

8,319 588

70 8,977

8,977

1,545

12,908

(1 1,363! 1,545

Parent

Actual Variance,

2020 2020 $000 $000

14,140 (9,091) 8,049 14,972),

983 (454),

39 23,172 (14,478)

i,661 167 1,66,1 167

24,1133 (14~),

19,919 (1 1,600), 588

70 20,so,1 (11,53a)

20,50,7 (11,53lil)

4,326 (2,781)

15,68B <2,780),

(11,362) (1),

4,326 j2.,781),

Page 36 of41


Tourism and Events Queenslland Notes to and forming pa1rt of the F1lnancial Statements fo,r the year ended 30 June 2020

NOT~ 22 - BUDGETARY REPORTINIG DISCLOSURES (cc>ntinued) Stateme"'t <1r Finuclal Position (oorilinued)

Exp!a,natian of Major Variances - Statement of Financial Positiofl

1 . The increase primarily relates to 1h e d'rawdown of gr.in\ h.mding for fJhysical payments expected in late Jur,e where, despite conir;:1c1ual m~estones being met at 30 June, invo· ces were not received arid processed ready for payment before the end of lhe linancial year. The majority of lhese ~anned payments were precessed in July upon r-ipt of and precessing of invoices.

2. Ttie increase relates to lhe Corporatlon's invoicing for aviation recove.-y grant funding approved in June ($.5 million)

3 Tile increase primarily reflects. lhe recognition of unearned revenues rn accordance with AASB 15 R,evenufils from Contracts with Customer,; for a number of aviation, other gr,mt funding and cooperatrve mankeling agreement!; 1W1ere performance obtrgatioos had only been partly !'llet by the Corporation at :m June ($9.3 millio11). In addition, the Coiporation's accrued expenses wer,e greater than budget, !largely a result of signific;mt COVID-19 reco11ery related activity particula rly in the -&econc1 half ,of June, where mi'!e:slones. had been met but p!lysiGa1 payment 1101 due until Juty (S3.3 m iaron).

4. The incresse relates to the derecognilian, through CQnhlibuled equity, of straighl-lining leas.e assets and liab~ities ($0.7 mlllion) .ind l'ease iocenti11e liabi~ly ($2.1 mfllion), relating to the Corpora ·on's agreement wilh DHPW for nonspeoialised, oommeroia:I office ac:commod'alion through the QGAO, upon transition to AASB 16 Leases.

Page J7 of 41


Tourism and Events Que,enslland Notes to and forming part of the Financial Statements for lhe year ended 30 June 202°'

NOTE 22-BUOGET~RY REPO:RTING DISCLOSURES {continued)

Statement of Cash Flows

Cash flows from operating activities lttflows: Revenue from Queensland Government received Receipts from customers GST input tax credits recetved Interest received Outflows: Paymen1s to supplfers and empl'oyees GST remitted Net cash provided by I (used in) operating activities

Cash news from lnv·esling; actlvllies Inflows: Proceeds rrom forward contracts Outflows: Payment!i for foiward con!Ja.cts Payments for property, plant arid equipment Ne:t C!l$h provided by I (used in) investing aclivities

Net incr,ea,se I (decre:asri,) in cash a.rid cash ll<IU1ivalen!s

Cash a111d cash ,eqwivalents at the beginning of the financial year

Ca:sh iHd cash ,eq111inlents 11t the end of the financi;d ye;1r

Va.ria1~ce Note

2

3

4

4

Parent Original

Actual Va.rianc& B\ld'get

21120 2020 2020i $11011 $1100 $10001

131,1138 127,410 3,628 11,260 2,939 7, 321

9.067 (9 ,067),

200 169 31

(141 ,350) (127,837) (13,513) (3,388! 3,388

148 8,360 (8,212)

8,106 (8,1 06)

(8,106) 8,106 11001 (55! _____Jill pao1 155) !45!

48 8,305 (8,257)

5,0011 5,835 (834)

s,049 14,140 (9,091)


Tourism and Events Queensland Notes to and fonnlng part of the Financial Statements for the ye,ar ended 30 J1,me 2020

NOTIE 22 - BUDGETARY R.EPORTING OISClOSUR.ES (continued) Statement of Cash Flows (continued)

E1rp/analion of Major Variances - Slatemenr of Casll Flows

1. n e decrease relates largely to the lapse of budgeted grant funding from the State Govemment 1.0 the Consolidated Fund Ill 2019.20 ($12.6 mi llion) due to pau.sed marketi g activity and event cancellations/suspensions as a consequence of CD\110-1 9. The decrease was partty offset by the receipt o Slate Government recovery fund ing for targeted lourism campaigns lo promote travel to Tropical North Queensland and the Gold Coast (S4.8 m~lion).

2. The decrease renects the reduclion tn cooperative mar'kebng and event acti\lily with industry and other partners during the second half of 2019-20 as a result of COVIO-rn ($5.3 n, illlan).

3. The decrease primarily reflects paused marketing aclivity and event ca11cellations/sus:pensions as a conseguence of COVID-19 resulting in loweI than budg,eted marketing and evenUunding instalment expenditure ($12.6 mmion) in addition to tl'le impact of a reduction in ooope,ative marketing and e11ent actil1ity with Industry and other partners during 2019,20 also as a re.suit of COVI0.19 (S5.3 minion).

4, Paym ents and proceeds for forward exchange contracts were netted off in the 2020' year budget cashn'ow.

Page 39 of 41


Tourism and Events Queensland Notes to and forming part of the Financial Statements for the year ended 30 June 2020

1Management Certificate

Tourism and Events Queensland and Its Controlled Entities

These general purpose financial slatemenls have been prepared pursuant to s.82(1) of lhe Firiancla/ Accountability Ac! 2009 {the Act), s.39 of lhe Frnancial and Perlomiance Management Standard 2019 and olher prescribed requirements. In accordance with s.S2(1)(b) of the Act we certify t.hat in out opinion:

(i) the prescribed requirements for establishing and kee:pfng the accounts have been com~fed wftti m all material respects;

the consolidated financial statements have been dr!IWl'l up to present a lrue and fair view, m acrordanoe with pre~oribed a<:counting s.tandards, of the transactions of Tourism and Events Queensland for ttie year ended 30 June 2020 and or the financial position of ttie Corporation al the end of lhal year: .ind

we acknowledge respm1s1brlrty under s.7 and s.11 of the Fmancial :and Performance Management Standard 2019 for the est.ibllshment and maintenance, in all material respects , of an appro~riat.e and effective $)'Siem of internal' conlr()ls and nsk management ,processes wilh respect lo financial reportiny

. --- ----~~=t.[:~~:~------- OATE, ~ 08 12020 BGODFR.EV Chair

.. ,, .......... ~ ..... . C MILLS Board Member and Ohair of Audit and Remuneration Committee

e Officer

___ L} ___ _._0v.:X: __ iN ELLIOTT 8Com FCPA GAICD Group Execut111e Corporate and Chief Financial Officer

DATE: l51 08 I 2020

DATE: 1'3 I og- I 2020

DATE: l.S / 08 / 21)20

Page40 0141


• Queensland • • Audit Office

INDEPENDENT AUDIITOR'S REPORT

To the Board of Tourism and Events Queensland

Report on the audit of the financi1al r,epo:rt

Opililion

11 llave audited the accompanying financial report of l ourism and Events Queensland {lhe parent) and its controlfed entilies (lhe group).

In my op inion, the financial report:

a) gives a true and fair view of the parent's and group's financial posilion as at 30 June 2020, and their financial performa nee and cash flows for 1h e year t hen ,ended

b) com,plies with lhe Financia/Accounlab11ity Act 2009, the Financial and Pelfom1ance Management Standard 2019 and Australian Accounting Standards.

The financia l report com,pnses the statements of financial position as at 30 J'une 2020, the statements of comprelletliSive income, sta.tements of changes in equity and statem ents of casll flows for tile year then ended , notes lo the financial statements includ ingi summaries of significant accounling policies and other explanatory informat ion, and the management certificate.

Basis for opin i:on

I conducted my au:dit in accordance with the Auditor-Genera/Auditing Standar:cls,. which incorporate the Australian Au:diling Standards .. My responsibilities under those standards are further described in the Auditor's Responsibifdies for the Audit of/he Financial Report section of my r,eport.

I am independent of the parent and group in accordance with lhe ethical requ irements of the Accounting Profess ional and Ethica l Standards Board 's APES 110 Code of Ethics for Professional Accountants (the Gode) that are relevant to my audit of !he financial report in Austra lia.. I ha'lle also fu lfilled my other ethical responsibililies in accordance witll the Code and the Audilor0General Auditing Standards.

I believe tllat the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Responsib iliities of the entity for the financia l! report

The Board is responslbfe for the preparation of the financial report that gi'lles a true and farr view in accordance with the Financial Accountabi/ily Act 2009, tile Financial and Pelformance Management Standard 2019' and Australian Accounting Standards, and for such interna l control as the Board determines is necessary to enable t he preparation of the financial report !hat is free from material misstatement, whether due to fraud or error.

The Board is also responsible for assessing tile parent's and group's ab ility to continue as a going concern, disclosing, as applica.ble, matters relating to going concern and using tile going concern basis of accounling unless it is intended to abolisll the parent or group or lo otheiwise cease operations.


• ,Queensland • • Aud it Office

Auditor's responsibil it ies for the audit o f tlhe f i1rnncial reiPort

My objecti~es are lo obtain r,easonable assurance about whether the financial reporl as a whole is free from material misstatement, whether due to fraud or error, and to issue an aud itor's reporl that includes my op·nion. Reasonahle assurance is a high lev,el of assuranoe, but is not a guarantee ttiat an audit conducted in acrordance wilh the Aus,tra lian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fra ud or error and are ronsider,ed material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users tak,en on the basis of this f inancial report.

As part of an aud it in acrordance wilh the Australian Auditing Standards, I exercise profess ional judg,ement and maintain professional scepticism throughout the aud it I also:

• Identify and assess the risks of material misstatement of the financial reporl, whether due to fraud or error, des·gn and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a oosis for my opinion. The risk of not detecting a material misstatement resu lting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the o~rride of internal control.

• Obtain an understanding of intema.l rontrol r,elevant to the audit in order to design audit procedures that are appropriate in the circumstances. This is not clone for the purpose of expressing an opinion on the ,effecti~ness of the entity's internal controls, but a llows me to express an opin ion on comp[iance with prescribed requ irements.

• Evaluate the appropriateness of accounting policies used and the reasonab ei1ess of accounting estimates and related disclosures made by the group.

• Condude on the appropriatei1ess of the parent's an:d group's use of the going concern basis of accounting and, oosed on the audit evidence obtained, whether a material uncerta inty exists related to ev,ents or conditions that may cast significant dourbt on the parent's or group's ability to continue as a going coocern. If I oondude that a material uncerta inty exists , II am required to draw attention in my auditor's report lo the related disclosures in the f inancial report or, if such disdosures are inadequate, lo modify my opinion. I base my ronclusions on the audit evidenoe obtained up to the date of my auditor's report. However, ful.u re events or conditions may cause the par,ent or group to oease to rontinue as a going concern .

• Evaluate the ave rall p resentation , structu re and rontent of the financial report, indud ing !he disdosures, and whether the financia l report r,epresents the underlying transactions and events in a manner that achieves fa ir presentation .

• Obtain sufficient appropriate audit evidence regard ing the financia l information of the entities or business activities with in the group to express an opinion on the financial report_ I am responsible for !he direction, supervision and performance of the aud it of

!he group. I remain solely responsible for my audit opinion.

I communicate with !he Board regarding , among other matters, the planned scope .and timing of lhe aud it and sign ificant aud it findings, inolu.ding any significant deficiencies in internal control !hat I identify during my audit.


• Queensland • • Audit Office

Report on other leg1al and regulatory 1requiremenrts

Statement

In accordance with s.40 of 1he Auditor-General Act 2009,. for the year ended 30 June 2020:

a) II received all the information and ,exp lanations I required .

b) II consider that, 1he prescribed requirements in relation to the establishment and keeping of accounts were comp ied with in all material respects"

Pre-scribed requirements scope

The prescribed requirements for lie establishment and keeping of acoounls are contained in the Financial Accounta.bifify Act 2009, any other Act and !he Financial and Performance Management Standard 2019. The applicable reqtJ irements include !hose for k.eeping financia l records 1hat rorrecUy record and explain the entity's transactions and account balances to enable the pr,eparation of a true and fair financial report.

Melissa Fletcher as delegate of the Auditor-General

27 AugtJst 2020

QtJeensland Audit Office Brisbane


Tourism and Events Queensland directory

Tourism and Events Queensland Head Office

Level 8, 515 St Pauls Terrace Fortitude Valley QLD 4006 Australia GPO Box 328 Brisbane QLD 4001 Tel: +61 (7) 3535 3535 www.teq.queensland.com www.teq.queensland.com/annualreport

International offices

Western markets

North America 2029 Century Park East, Suite 3150 Los Angeles, CA 90067 USA Tel: +1 310 695 3251 Europe Oberbrunner Str. 4 Munich 81474 GERMANY Tel: +49 897 5969 8820 New Zealand Level 1 20 Beaumont Street Auckland Central 1010 NEW ZEALAND Tel: +64 21 901 879 United Kingdom Australia Centre, Australia House 6th Floor Melbourne Place/Strand London WC2B 4LG UNITED KINGDOM Tel: +44 20 7438 4664

Eastern markets Mainland China Room 2301 CITIC Square No. 1168 Nanjing Road West Shanghai 200040 CHINA Tel: +86 21 5292 8669 15F Yintai Centre No.2 Jianguomenwai Ave Beijing 100004 CHINA Tel: +86 10 6563 7833 Room 87, Level 9 CTF Finance Centre 6 Zhujiang Dong Road Tianhe, Guangzhou 510623 CHINA Tel: +86 20 2206 0415 Hong Kong SAR Room 506, 5/F Sun Hung Kai Centre 30 Harbour Road Wanchai HONG KONG Tel: +85 22 827 4526 India Work Coordinates, 106 SV Road Next to Santacruz Depot, SV Road Santacruz West Mumbai 40054 INDIA Tel: +91 98 2178 8994

Indonesia C/- Trade and Investment Queensland - Jakarta Office AIA Central, 23rd Floor JI. Jend. Sudirman Kav. 48A Jakarta 12930 INDONESIA Tel: +62 21 5790 5620 Japan Shiroyama Trust Tower 15F 4-3-1, Toranomon Minato-ku, Tokyo 105-6015 JAPAN Tel: +81 3 5404 7141 Korea Studio 226, The King’s Garden 72 Naesu-Dong, Jongno-gu Seoul 03174 KOREA Tel: +82 27 305 767 Singapore 101 Thomson Road #08-02 United Square SINGAPORE 307591 Tel: +65 6253 2811 Taiwan Region President International Tower 27th Floor, No. 9 Song Gao Road Taipei 110 TAIWAN Tel: +88 62 2723 3196


Glossary of terms

AAIF Attracting Aviation Investment Fund

ARRs Annual report requirements for Queensland Government agencies

ATDW Australian Tourism Data Warehouse

BOQEP Best of Queensland Experiences Program

CEO Chief Executive Officer

CWA Connecting with Asia

DSDTI Department of State Development, Tourism and Innovation

FAA Financial Accountability Act 2009

FBT Fringe Benefits Tax

FPMS Financial and Performance Management Standard 2019

FTE Full-time equivalent

FY Financial year

GBRMPA Great Barrier Reef Marine Park Authority

GST Goods and Services Tax

GSP Gross State Product

KMP Key Management Personnel

MOU Memorandum of Understanding

NRL National Rugby League

OAG Official Airline Guide

OQTA Outback Queensland Tourism Association

OVE Overnight Visitor Expenditure

QDEP Queensland Destination Events Program

QTIC Queensland Tourism Industry Council

RevPAR Revenue Per Available Room

RTO Regional Tourism Organisation

TA Tourism Australia

TEQ Tourism and Events Queensland

UK United Kingdom

USA United States of America

WHS Work Health and Safety


Compliance checklist

Summary of requirement Basis for requirement Annual report reference

Letter of compliance

• A letter of compliance from the accountable officer or statutory body to the relevant Minister/s

ARRs – section 7 Letter of compliance (p.2)

Accessibility • Table of contents • Glossary

ARRs – section 9.1 Contents (p.3) Glossary (p.98)

• Public availability ARRs – section 9.2 Public availability (p.2)

• Interpreter service statement

Queensland Government Language Services Policy ARRs – section 9.3

Interpreter service statement (p.2)

• Copyright notice Copyright Act 1968 ARRs – section 9.4

Copyright (p.2)

• Information Licensing QGEA – Information Licensing ARRs – section 9.5

N/A

General information

• Introductory Information ARRs – section 10.1 Chair and CEO statement (p.4) About Tourism and Events Queensland (p.5)

• Machinery of Government changes

ARRs – section 10.2, 31 and 32

N/A

• Agency role and main functions

ARRs – section 10.2 About Tourism and Events Queensland (p.5) Our role and functions (p.6) Locations (p.6) Tourism and Events Queensland directory (p.97)

• Operating environment ARRs – section 10.3 About Tourism and Events Queensland (p.5) Our operating environment (p.7) Strategic risks (p.7) Strategic challenges and opportunities (p.8) Crisis impacts, response and recovery (p.14) Crisis impacts (p.14) COVID-19 response and recovery (p.20) Looking forward 2020-21 (p.23) Statutory obligations (p.38) Board meetings (p.42)



Non-financial performance

• Government’s objectives for the community

ARRs – section 11.1 Our role and functions (p.6) Queensland Government objectives for the community (p.24)

• Other whole-of-government plans / specific initiatives

ARRs – section 11.2 COVID-19 response and recovery (p.20) Additional references throughout the report

• Agency objectives and performance indicators

ARRs – section 11.3 Our role and functions (p.6) Industry performance overview 2019-20 (p.10) COVID-19 response and recovery (p.20) Objectives and performance indicators (p.24) Annual Performance Statement 2019-20 (p.25) Strategic priority highlights 2019-20 (p.26) Efficient business operations (p.39)

• Agency service areas and service standards

ARRs – section 11.4 Service areas and service standards (p.25) Annual Performance Statement 2019-20 (p.25)

Financial performance

• Summary of financial performance

ARRs – section 12.1 Financial summary (p.49)

Governance – management and structure

• Organisational structure ARRs – section 13.1 Executive management (p.40) Tourism and Events Queensland Board (p.42)

• Executive management ARRs – section 13.2 Executive management (p.40) Board committees (p.43)

• Government bodies (statutory bodies and other entities)

ARRs – section 13.3 Government bodies (p.46)

• Public Sector Ethics Public Sector Ethics Act 1994 ARRs – section 13.4

Statutory obligations (p.38)

• Human Rights Human Rights Act 2019 ARRs – section 13.5

Statutory obligations (p.38)

• Queensland public service values

ARRs – section 13.6 About Tourism and Events Queensland (p.5)



Governance – risk management and accountability

• Risk management ARRs – section 14.1 Audit and Remuneration Committee (p.43) Risk management (p.45)

• Audit committee ARRs – section 14.2 Audit and Remuneration Committee (p.43) Internal audit (p.45) External scrutiny (p.45) Government bodies (p.46)

• Internal audit ARRs – section 14.3 Internal audit (p.45)

• External scrutiny ARRs – section 14.4 External scrutiny (p.45)

• Information systems and recordkeeping

ARRs – section 14.5 Information systems and recordkeeping (p.39)

Governance – human resources

• Strategic workforce planning and performance

ARRs – section 15.1 High performing organisation (p.36)

• Early retirement, redundancy and retrenchment

Directive No.04/18 Early Retirement, Redundancy and Retrenchment ARRs – section 15.2

N/A

Open Data • Statement advising publication of information

ARRs – section 16 Open data (p.39)

• Consultancies ARRs – section 33.1 Open data (p.39)

• Overseas travel ARRs – section 33.2 https://data.qld.gov.au Open data (p.39)

• Queensland Language Services Policy

ARRs – section 33.3 Open data (p.39)

Financial statements

• Certification of financial statements

FAA – section 62 FPMS – sections 38, 39 and 46 ARRs – section 17.1

Financial statements (p.51)

• Independent Auditor’s Report

FAA – section 62 FPMS – section 46 ARRs – section 17.2

Independent Auditor's Report (p.94)

FAA Financial Accountability Act 2009 FPMS Financial and Performance Management Standard 2019 ARRs Annual report requirements for Queensland Government agencies N/A Not applicable


ANNUALREPORT2019-2020 Tourism and Events Queensland www.teq.queensland.com

2019-2020 ANNUAL REPORT · The state has done a terrific job of not only ... we undertook the...

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