Annual Report 16/17 - Queensland Parliament · 4 ANNUAL REPORT 16/17 CEO’s statement Inspiring...

1ANNUAL REPORT 16/17

Annual Report

16/17

2 ANNUAL REPORT 16/17

Letter of compliance

8 September 2017

The Honourable Kate Jones MP Minister for Education and Minister for Tourism, Major Events and the Commonwealth Games GPO Box 15033 City East Qld 4002

Dear Minister

I am pleased to submit for presentation to the Parliament the Annual Report 2016-2017 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 2009; 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 81 of this annual report or accessed at www.teq.queensland.com/annualreport.

Yours sincerely

Julieanne Alroe

Acting 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 www.teq.queensland.com/annualreport.

Limited printed copies can be obtained by contacting Tourism and Events Queensland. Tel: (07) 3535 3535 Email: [email protected]

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

Copyright © (Tourism and Events Queensland) 2017 Published by Tourism and Events Queensland, September 2017 Level 10, 30 Makerston Street, Brisbane, QLD 4000

ISSN: 2205-992X


Contents

Letter of compliance ...............................................................................................................................................2

CEO’s statement .........................................................................................................................................................4

Acting Chair's statement ....................................................................................................................................5

About Tourism and Events Queensland ........................................................................................ 6

Our vision

Our purpose

Our mission

Our role and functions

Executive management

Our values

Locations

Our operating environment

Tourism landscape

Industry performance

Strategic risks

Looking forward 2017-18

Our performance ..................................................................................................................................................... 16

Queensland Government objectives for the community

Objectives and performance indicators

Service areas and service standards

Annual Performance Statement 2016-17

Strategic Priorities — Highlights 2016-17 ........................................................................................ 18

Deliver and promote a world-class events calendar

Gold Coast 2018 Commonwealth Games

Market the best address on earth

Great Barrier Reef

Tropical Cyclone Debbie

Destination and experience development

Focus on Asia

Partnerships

Corporate governance .....................................................................................................................................28

Board performance

Board committees

Internal audit

Risk management

External scrutiny

Board meetings

Government bodies

Statutory obligations

Information systems and recordkeeping

Efficient business operations

Open Data

Workforce planning, attraction and retention.......................................................................36

Financial summary ...............................................................................................................................................38

Financial Report........................................................................................................................................................39

Tourism and Events Queensland directory ............................................................................80

Compliance checklist .......................................................................................................................................... 81

Glossary of terms ....................................................................................................................................................83


CEO’s statementInspiring the world to experience the best address on earth.

Tourism and Events Queensland (TEQ) is driven by that mantra, determined to be innovative and collaborative while delivering both economic and social benefits for the state. We are a consumer-led, experience-focussed and destination-delivered organisation intent on capitalising on growth opportunities and developing authenticity in our tourism offerings.

The Queensland tourism industry faced its fair share of challenges and again showed its resilience in 2016-17 as it continued to build on the success and momentum of previous years.

In 2016-17, Queensland welcomed record international and domestic visitation through a combination of targeted campaign marketing, a focus on new air routes servicing the state and, above all, the hard work and commitment of the industry and its stakeholders.

International visitor expenditure reached a record $5.2 billion, an increase of 3.2 per cent, underpinned by an 5.6 per cent increase in total visitors to 2.6 million. These visitors spent 53.9 million nights in Queensland.

On the domestic front, overnight expenditure in Queensland increased 5.5 per cent to a record $15.4 billion for the period while domestic overnight visitor numbers increased 6.2 per cent to 21.5 million.

China continues to be our largest international source market, delivering just over $1 billion in overnight visitor expenditure. Strong gains in

expenditure were recorded from several source markets including Japan (18.2%), Taiwan (31.7%), Hong Kong (19.0%) and India (22.6%).

Increasing aviation capacity remains central to creating growth in the industry and in partnership with Queensland airports, the Department of Tourism, Major Events, Small Business and the Commonwealth Games (DTESB), Tourism Australia (TA) and Regional Tourism Organisations (RTOs), TEQ has utilised the Advance Queensland: Connecting with Asia fund and the Attracting Aviation Investment Fund (AAIF) to secure new flights and increased capacity from domestic markets as well as key international markets including China, South Korea and Japan.

The first flights secured under the Connecting with Asia funding were finalised in late June with the signing of an agreement with China Southern Airlines to fly three flights a week between Guangzhou and Cairns, a service forecast to pump $90 million into the Queensland economy.

TEQ also transitioned its strategic marketing approach in 2016-17, moving to include a greater focus on Queensland as the master brand while highlighting signature experiences designed to leverage key target markets. Under the five pillars of Reef, Islands and Beaches; Natural Encounters; Adventure and Discovery; Events; and Lifestyle, Culture and People, the new experience framework has been designed to give Queensland a competitive advantage.

TEQ’s targeted approach to reaching new consumers saw the “I know just the place” marketing campaign rolled out across key markets, showcasing Queensland’s unique tourism offering told through the words of locals. The campaign, supported by a series of 90 second videos, aims to grow visitation, increase awareness of our tourism offerings and inspire more travellers to choose Queensland in an increasingly competitive market where travellers demand not just a holiday but to feel and be immersed in experiences.

Since its launch in late November, the campaign has received more than one million Facebook likes, comments, shares and views while on Twitter more than 360 hours worth of footage was viewed in the first 24-hour period. The campaign has run in print, television, outdoor, digital and cinema formats in Queensland, New South Wales, Victoria and New Zealand since its launch.

Throughout early 2017, TEQ rolled out the new campaign messaging starting with trade engagement across Europe, the UK and the Americas. The new-look campaign targeting consumers started in the US in February, China in March and the UK in April. We have successfully worked to integrate our creative with key partners including Qantas in the United States and Disney in Australia through

the promotion of the film Pirates of the

Caribbean: Dead Men Tell No Tales, which was

filmed in Queensland.

In total, more than $293 million in publicity and

promotional value was achieved through TEQ

activities in the 2016-17 financial year. This was

further enhanced in the digital space where

TEQ continued to connect with consumers

across the globe by innovatively showcasing

the state through social media and targeted

online marketing.

The It’s Live! In Queensland major events

calendar continued to grow in 2016-17 to an

asset now worth more than $600 million to the

Queensland economy, more than half of which

comes from events directly supported by TEQ.

Events continue to be a major driver of tourism

outcomes in Queensland and the variety

of offerings continues to be the strength of

the state’s calendar. In 2016-17, events on

the calendar were as varied as the Brisbane

International, Blues on Broadbeach, the Julia

Creek Dirt and Dust Festival and the Marvel:

Creating the Cinematic Universe exhibition at

the Gallery of Modern Art.

Our Queensland Destination Events Program

(QDEP) continues to go from strength-to-

strength, supporting growth in a wide range of

events across regional Queensland. In 2016-17,

the program supported 87 events across

the state with grants totalling $2 million and

generating 752, 800 visitor nights.

In June, the Queensland Government

announced a continuation of the four-year

funding guarantee of TEQ, securing $100 million

per year through to 2020-21. That guarantee

allows us to further strengthen our competitive

edge and secure long-term partnerships which

work towards our strategic goals.

Across the 2016-17 financial year, TEQ continued

to work with our key partners to further secure

Queensland’s reputation as Australia’s premier

tourism and events destination. With the

ongoing success of the It’s Live! In Queensland

events calendar and Connecting With Asia and

AAIF, combined with a new strategic marketing

approach, TEQ will keep inspiring the world to

experience the best address on earth.

Leanne Coddington

Chief Executive Officer

Tourism and Events Queensland


The coming 12 months will be like nothing Queensland has seen before and will provide an incredibly rare opportunity for our state’s tourism industry. In the 2018 Commonwealth Games, we have an amazing opportunity to showcase Queensland to the world while also welcoming as many as 1.5 million spectators to what will be the biggest event in Queensland this decade.

The enhancing of Queensland’s reputation during the Games will drive tourists to the state long after the closing ceremony, giving us an unprecedented opportunity to take tourism to the next level. Already the event has kick-started strong investment across Queensland, ensuring the legacy of the Games will continue to benefit the tourism industry for years to come. This investment coupled with new infrastructure presents a great opportunity for an even stronger major events calendar to continue to drive visitation into the future and further unlock Queensland’s tourism potential.

The industry again grew in 2016-17, now contributing $25 billion and employing 225,000 people directly and indirectly, underpinning its importance to the Queensland economy. Tourism now employs more Queenslanders than mining, agriculture, fisheries and forestry combined and with 68 per cent of tourism nights occurring outside of Brisbane, many of the jobs created and sustained by the industry are in Queensland’s regions.

Acting Chair's statement

The forecast growth from Asia has come to fruition with Chinese visitors now topping 471,000 in the year ending June contributing over $1 billion to the economy. Strong results out of Japan, South Korea and Taiwan again highlighted the importance of the Asian market.

TEQ will continue to work to capitalise on this growth by utilising the Connecting with Asia fund to secure new flights into Queensland and expand existing services. The announcement of a three-weekly service by China Southern Airlines into Cairns signalled the first flights secured, and we continue to negotiate with several interested parties across Asia.

Once again the It’s Live! In Queensland events calendar continues to grow into an asset that is now worth more than $600 million to the Queensland economy. The Battle of Brisbane at Suncorp Stadium in July kicked 2017-18 off with a bang in a year which will also see the Bledisloe Cup, the Rugby League World Cup and the Commonwealth Games all staged in Queensland.

The past year also threw up its fair share of challenges and the resilience and determination of residents and tourism operators in the path of Cyclone Debbie in March and April inspired us all. TEQ will continue to work with state and federal governments, RTOs, industry partners and individual operators to ensure Queensland continues to build its reputation as Australia’s leading tourism and events destination.

With the continuation of the four-year funding guarantee confirmed in the 2017 State Budget and the successful implementation of our new strategic marketing framework, TEQ’s vision to inspire the world to experience the best address on earth will continue to deliver for the state and the tourism industry in the year ahead.

I’d also like to pay tribute to our chairman Bob East and thank him for the vision and leadership he provided TEQ during his tenure. We wish him all the best in his new role as chairman of the TA board in the 2017-18 year.

Julieanne Alroe

Acting Chair Tourism and Events Queensland


About Tourism and Events Queensland

Tourism and Events Queensland is Queensland’s lead marketing, destination and experience development and major events agency. In partnership with Government, RTOs, industry and commercial stakeholders, we aim to build Queensland’s tourism and events industry to foster innovation, drive industry growth and boost visitor expenditure.

Our vision

Inspiring the world to experience the best address on earth.

Our purpose

Achieving economic and social benefits for the State by growing the tourism and events industry.

Our mission

We are a consumer-led, experience-focused and destination-delivered organisation that connects people and places like never before through innovation and collaboration with the tourism and events industry.

Our role and functions

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

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; and

2. to identify, attract, develop and promote major events for the State that –

a) contribute to the Queensland economy; and

b) attract visitors to Queensland; and

c) enhance the profile of Queensland; and

d) foster community pride in Queensland; and

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.

INSPIRINGthrough brand, integrated marketing and events

THE WORLDin priority domestic and international source markets

TO EXPERIENCE

Queensland’s signature experiences and events

THE BEST through quality and innovation

ADDRESS ON EARTH

showcasing the best of Queensland


Executive management

In 2016-17 TEQ’s senior executive team comprised five Group Executives, led by the Chief Executive Officer, Leanne Coddington. Responsibilities of the Chief Executive Officer include:

• 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 the Queensland tourism industry operators and assist them to grow through cooperative and collaborative partnerships;

• 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.

The key areas of focus for each Group Executive are as follows.

Global Marketing (Group Executive – position vacant as at 30 June 2017; Michael Branagh commenced 3 July 2017)

• Lead the implementation of TEQ’s global Marketing Strategy 2025;

• Identify, showcase and support the development of the Best of Queensland Experiences; and

• Develop consumer driven activity that delivers increased overnight visitor expenditure for industry.

Destinations and Global Partnerships (Group Executive – Rick Hamilton)

• Work in partnership with RTOs and industry to deliver their Destination Tourism Plans, with a particular focus on maximising the opportunity that each destination’s hero experiences 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 multi-year strategic trade partnerships to deliver increased visitor expenditure to Queensland’s experiences and products; and

• Manage cross-Government projects in partnership with DTESB, State, Local and relevant Federal Government agencies.

Events (Group Executive – John Drummond Montgomery)

• Deliver a world-class calendar of events for Queensland, guided by the Events Strategy 2025; and

• Attract people to experience the best address on earth through optimising the value of Queensland’s event calendar and leveraging the competitive advantage provided by Queensland’s unique event experiences.

Corporate Affairs (Group Executive – Megan Saunders)

• Lead media, corporate communications, ministerial and government relations activities across all areas of TEQ; and

• Manage effective relationships with key stakeholders, providing effective and timely liaison to support TEQ business activities and raise the profile of Queensland’s tourism industry through communications and advocacy.

Corporate Services (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 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.

Chief ExecutiveO�icer

GlobalMarketing

CorporateA�airs

CorporateServices

People andLeadership

Destinationsand Global

PartnershipsEvents

Global BrandMinisterial &Government

RelationsFinanceDestinations Major Events

ConsumerMarketing

CorporateCommunications

Business Solutions & Technology

InternationalMarkets

DestinationEvents

ExperienceEngagement &Digital Channels

LegalStrategic

PartnershipsBusinessEvents

Destination &Experience

Development

Stakeholder &Event Experience

StrategicDevelopment &

Research

Event Analytics

Event ValueOptimisation

Planning


Locations

TEQ’s Head Office is located at 30 Makerston Street, Brisbane, 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 7.

Global reach

TEQ has a presence in 13 strategically important international markets: the Americas; China; Europe; Hong Kong; India; Indonesia; Japan; Korea; Malaysia; New Zealand; Singapore; Taiwan; and the United Kingdom, Ireland and Nordic. TEQ’s international offices are detailed in the directory on page 80 of this report. In addition, TEQ partners on activity in key emerging markets that have been identified to offer growth opportunities for Queensland in the medium to long-term.

Our values

TEQ’s organisational values support the company’s strategic framework, culture and purpose. The values guide employee behaviour and interactions with internal and external stakeholders and provide a framework for achieving TEQ’s objectives.

Lead together

Guided by the Minister and the Board, we are clear on our purpose, direction and priorities and our team is empowered to implement.

One team

We work in partnership with our teammates and always act for the good of the whole.

Agile and responsive

We embrace emerging trends and opportunities. To thrive in a competitive

industry environment we are proactive, flexible and adaptable.

Go beyond

We are creative, innovative and solutions-driven. We strive for continuous improvement,

and make a difference where it really counts for Queensland.

AMERICAS

EUROPE

UNITED KINGDOM, IRELAND AND NORDIC

MunichLondon

Los Angeles


SOUTH EAST ASIA

CHINA

INDIA

AUSTRALIA

NEW ZEALAND

QUEENSLAND

JAPAN

KOREA

TAIWAN

Tropical NorthQueensland

OutbackQueensland

TownsvilleNorth

Queensland

The Whitsundays

The MackayRegion

Gold Coast

Sunshine Coast

Fraser Coast

Cairns

Brisbane

Gladstone Region

BundabergNorth Burnett

SouthernGreatBarrierReef

Capricorn Region

Southern QueenslandCountry

Beijing

Shanghai

Guangzhou

Mumbai Hong Kong (SAR)

Taipei

Tokyo

Seoul

Kuala Lumpur

Singapore

Jakarta

Brisbane

Auckland


Our operating environment

Tourism is vital to Queensland’s economy, generating $25 billion for the State. Tourism contributes 7.9 per cent of Gross State Product (GSP) and employs 225,000 Queenslanders directly and indirectly. The coming decade will bring enormous opportunities for Queensland’s tourism and events industry1, including the potential to generate over $33 billion in overnight visitor expenditure (OVE) by 20252, supporting more than 100,000 additional jobs in the State’s economy. Much of this growth will come from our international markets which by 2025 will represent approximately 33 per cent of total OVE (up from 25 per cent in 2017).

0

5

10

15

20

25

30

35

40

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

$ B

illio

n

Total (Actual) International (Actual) Total (Forecast) International (Forecast)

Rapid growth in Asian countries, especially China and India, means the Asian middle class is expected to grow from around 500 million to 3.2 billion by 2030.3 By 2025, outbound tourism from the Asia-Pacific region will generate an additional 190 million international arrivals.4 Asian tourism to Australia is growing at an unprecedented rate, assisted by increasing wealth and favourable economic conditions. Strong growth has also been experienced in key western markets, led by the United States of America, New Zealand, Germany and Canada, underlining the importance of a balanced approach to global markets.5 The anticipated growth in Queensland’s international source markets through to 2025 is highlighted in the following diagram.

1. Source: Tourism Research Australia, State Tourism Satellite Accounts 2015-16

2. Source: Tourism Research Australia, year ended June 2017. Note ‘p’ = projected. 2025 potential based on national-level Tourism forecasts to June 2025. Where forecasts were unavailable, forecast growth for all Western or Eastern markets was used to estimate future potential

3. Source: Australia’s Jobs Future, 2015, ANZ PwC Asialink Business Services Report

4. Source: Oxford Economics, Tourism Decision Metrics, 2017

5 Source: Tourism Research Australia, 3 year trend to year ending June 2017

Industry Performance and Targets

Queensland's Overnight Visitor Expenditure (OVE), 2006—2025 (forecast)

Totals may not add up due to rounding


Queensland’s Key Source Markets

UK and Nordic $529m

($811m)

Europe $430m

($754m)

India $128m

($327m)

Domestic Markets: Intrastate (within Queensland); Interstate (states other than Queensland)

Source: Tourism Research Australia, Year ending June 2017. 2025 potential is based on national-level Tourism forecasts to June 2025. Where forecasts were unavailable five-year historic growthwas used to estimate future potential.

Eastern Markets: Greater China (China, Hong Kong and Taiwan), Japan, Southeast Asia (Singapore, Malaysia and Indonesia), South Korea and India

Western Markets: New Zealand, United Kingdom, Ireland, Nordic countries, Europe (Germany, Switzerland, Netherlands, Italy and France), Americas (USA and Canada)

Southeast Asia $289m

($494m)

Greater China $1,417m

($3,564m)

Japan $430m

($793m)

South Korea $226.7m

($405m)

Americas $502m

($1,009m)

New Zealand $586m

($973m)

(2025 potential)

YE June2017 OVE

Domestic

$15.4b

($22.3b)

Changes in technology and consumer preferences will continue to influence Queensland’s tourism and events industry. The Queensland Government has renewed 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.

In 2015, the Queensland Government committed to a four-year funding approach for TEQ. This funding guarantee enables TEQ to enter into multi-year partnerships and take a longer-term view on strategic investment in marketing and events. Through the Tourism Network Funding Program 2016-19, TEQ provides multi-year support to the State’s RTOs.

Additional funding announced in 2017 to continue TEQ’s four-year funding guarantee through to 2020-21 provides added certainty to strengthen TEQ’s negotiating capacity with commercial partners over the longer term and boosts its ability to acquire and retain high value events with longer planning cycles that will deliver visitation growth. Through the Advance Queensland: Connecting with Asia strategy, TEQ will continue to target key Asian source markets to drive visitor growth and dispersal throughout the State. On 27 June 2017, TEQ entered into an agreement with China Southern Airlines to operate three flights a week direct from Guangzhou to Cairns. These flights were the first secured under this funding package and are expected to commence in December 2017.


Tourism landscape

Tourism is vital to Queensland’s overall economic prosperity and is the State’s third largest export industry. Tourism is currently a $25 billion industry which supports 225,000 Queensland jobs and 54,000 businesses (one in eight Queensland businesses) of which 56 per cent are located in regional Queensland. 6

$ $25 billion economic contribution

7.9% GSP

1 in 10 jobs

1 in 8 businesses

Industry performance

TEQ provides tourism and events research and insights to industry and Government to inform strategic decision-making for tourism growth in Queensland. Primary research is undertaken to better understand consumers’ perceptions and the needs of Queensland’s target markets, as well as the experiences that Queensland can offer to meet those needs.

TEQ also leads the analysis and publication of Queensland results from major national tourism surveys including the National Visitor Survey, International Visitor Survey, Overseas Arrivals and Departures and the Tourism Satellite Accounts.

Overnight visitor expenditure7

Total overnight visitor expenditure in Queensland reached $20.6 billion for the year ended June 2017 according to Tourism Research Australia’s (TRA) international and national visitor surveys. This was a 4.9 per cent increase compared with the same period in the year prior.

International visitors increased their spending and contributed a 25.4 per cent share in total overnight visitor spending. The balance, 74.6 per cent, was contributed by domestic visitors, of which Queenslanders contributed a 54.2 per cent share.

The total overnight visitor expenditure generated by leisure visitors, the combination of visitors on holiday and those visiting friends and relatives, to Queensland increased 3.6 per cent to $12.7 billion over the year ended June 2017.

6. Sources: TRA, State Tourism Satellite Accounts 2015-2016 and Tourism Businesses in Australia, June 2012 to June 2016; Australian Bureau of Statistics, Counts of Australian Businesses, including Entries and Exits, June 2012 to June 2016 (ABS Cat. No. 8165.0). Queensland Government Office of Economic and Statistical Research – Overseas exports of goods by industry 2015-16.

7. Source: TRA, National and International Visitor Surveys, year ended June 2017 (see ‘Note regarding research data’ on page 14)

Further information on tourism research and insights in Queensland can be located at www.teq.queensland.com

Please note ‘FY’ denotes Financial Year

Figure 1: Total overnight visitor expenditure in Queensland, Victoria and New South Wales

The market share of overnight visitor expenditure across Australian states remained relatively stable during the year. Queensland achieved 22.8 per cent of all overnight visitor expenditure in Australia, ranked second in individual states behind New South Wales.

5

0

10

15

20

25

30

FY June2012

FY June2013

FY June2014

FY June2015

FY June2016

FY June2017

QLD NSW VIC

$ B

illio

n

Source: TRA


FY June2012

FY June2013

FY June2014

FY June2015

FY June2016

FY June2017

0

2

4

6

8

10

12

14

16

18

$ B

illio

n

QLD NSW VIC

Figure 2: Domestic overnight visitor expenditure in Queensland, Victoria and New South Wales

Source: TRA

Domestic

Nationally, $62.6 billion was spent by domestic overnight visitors during the year, of which a record $15.4 billion was spent in Queensland.

With more than one third of all international travellers to Australia visiting Queensland, international visitation remained strong. International overnight visitor expenditure in Queensland reached a record $5.2 billion in the year ending June 2017. China had the highest expenditure at just over $1 billion, followed by New Zealand at $586.5 million, Japan at $430.3 million, the United Kingdom at $421.6 million and the United States at $365.4 million.

International

International overnight visitor expenditure in Australia reached $27.9 billion, including $5.2 billion spent in Queensland.

Figure 3: International overnight visitor expenditure in Queensland, Victoria and New South Wales

2

0

4

6

8

10

12

$ B

illio

n

QLD NSW VIC

FY June2012

FY June2013

FY June2014

FY June2015

FY June2016

FY June2017

Source: TRA


Note regarding research data

International Visitor Survey (IVS) and National Visitor Survey (NVS)

In 2014, TRA moved to a new methodology for the NVS that included mobile phone interviewing as part of a dual frame overlap survey. This initiative was part of TRA’s continuous improvement program. The inclusion of mobile phone users ultimately delivers greater domestic tourism data accuracy. Advancements in the quality of mobile telephone data sets, which were implemented in the NVS build process in late 2015, caused anomalies in the growth rate of some components. This has required back-casting to align the data and allow for the continuation of the time series. Moving forward, the quality of data that the NVS produces will be more accurate as it better reflects the Australian resident population and phone ownership.

The back-cast results have seen a change in volume estimates in 2014 and 2015. Results for other years have not been affected, The average growth rate over the five-year trend has not changed. However, due to the volume changes in 2014 and 2015, growth rates previously published will, in most cases, be reduced in line with the long-term trend.

Figures in the market share tables may sum to more than 100 per cent as visitors may have visited more than one state during their trip.

Figure 5: International and domestic overnight visitors to Queensland regions, year ended June 20177

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000

Thousands (000) Domestic International

Fraser Coast

Mackay

Outback

Whitsundays

SQC

Townsville

SGBR

SunshineCoast

TropicalNorth Qld

Gold Coast

Brisbane

Source: TRA

Southern Great Barrier Reef (SGBR) incorporates the Capricorn, Gladstone and Bundaberg North Burnett regions. Southern Queensland Country (SQC) incorporates Toowoomba, Southern Downs, Western Downs and the South Burnett.

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000

Fraser Coast

Mackay*

Outback*

Whitsundays

SQC

Townsville

SGBR

SunshineCoast

TropicalNorth Qld

Gold Coast

Brisbane

$ Million

Figure 4: Total overnight visitor expenditure in Queensland regions, year ended June 20177

*Due to sample size, data for the Outback and Mackay regions reflect an average international expenditure over three years.


Queensland brand health

The annual Nielsen study into Queensland’s brand health8 for 2016-17 showed the Queensland brand performed well compared with competitors. Only around one in five of the world’s brands achieve a brand equity9 score of more than three out of a ten-point index.

In 2016-17 the Queensland brand achieved a score of 2.5 nationally, and was stable year-on-year.10 By comparison, the next strongest brands in the competitive set were New Zealand and Europe, which scored 1.7 and 1.5 respectively, and both were also stable compared with 2015-16. The Queensland brand also out-scored similar international destinations such as Hawaii, Japan, Fiji, and Bali, as well as domestic destinations such as Melbourne and Sydney.

Strategic risks

Queensland’s tourism industry operates in a highly competitive national and international environment. TEQ conducts an ongoing risk identification and assessment process, classifies risks as either strategic or operational, and mitigates accordingly. Significant strategic risks include:

• Variable economic conditions within Australia and in key source markets that can impact visitor numbers, expenditure and average length of stay;

• Competition from other national and international event destinations that impacts TEQ’s ability to secure and develop events;

• Changing visitor expectations and social and environmental impacts that affect the appeal of Queensland’s tourism and events products, experiences and destinations; and

• Crises and unexpected events, including adverse weather events, that curtail tourism demand and influence consumer perception.

Looking forward 2017-18

TEQ has identified the following strategic priorities to deliver our objectives in 2017-18:

• Deliver and promote a world-class events calendar;

8. The Nielsen Company, Brand Health, July 2017 - Australian residents in Queensland, Sydney and Melbourne

9. The brand equity index (BEI) is calculated based on consumers’ consideration of:

1) their favourite destination brand 2) brands they would recommend, and 3) willingness to pay higher prices.Source: The Nielsen Company, Brand Health, July 2017.

10. In 2016 the Queensland competitive destination set was updated to include six new competitor destinations. The old and new competitive sets were run in parallel in 2016, and for 2017 the new competitive set has been adopted. As such, there is a break in the series affecting Queensland BEI figures published prior to 2017.

• Market the best address on earth;

• Destination and experience development;

• Optimise the tourism value of the Gold Coast 2018 Commonwealth Games (GC2018);

• Focus on Asia; and

• Aviation access and strategic partnerships.

Key focus areas for 2017-18 will include:

• Showcasing Queensland’s tourism and events experiences to key domestic and international markets through TEQ’s experience-based Marketing Strategy 2025. Marketing activity will be delivered under the five pillars of: Reef, Islands, Beaches; Natural Encounters; Adventure and Discovery; Queensland Lifestyle, Culture and People; and Events. TEQ will work with TA, RTOs and industry to identify leverage opportunities under this strategy;

• Marketing the Great Barrier Reef and its experiences to key domestic and international markets with a focus on the Great Barrier Reef’s unique-selling points, such as size and use, diversity of wildlife and conservation. TEQ will also work to strengthen key strategic partnerships with stakeholders to promote best management practices and build Great Barrier Reef resilience;

• Strengthening Queensland’s events calendar through attracting and securing major events for Queensland, strategically investing in events that deliver the greatest benefits across Queensland, and maximising tourism opportunities associated with the GC2018. TEQ remains committed to securing and staging high value business events for Queensland such as the Infinitus China 2018 Incentive Tour and supporting regional tourism through the Queensland Destination Events Program (QDEP);

• Maximising opportunities for Queensland under the $33.5 million Advance Queensland: Connecting with Asia Strategy and the AAIF in partnership with DTESB, RTOs, industry, airports and airlines;

• Working with key partners including the Gold Coast 2018 Commonwealth Games Corporation (GOLDOC), TA, the City of Gold Coast and Gold Coast Tourism to optimise the tourism value of GC2018. TEQ’s focus will be maximising interstate and international visitation, length of stay and overnight visitor expenditure pre, during and post GC2018. Key activities domestically and internationally will include trade and media engagement, digital marketing and public relations activity, and consumer marketing activities delivered in conjunction with key commercial partners and via the It’s Live! in Queensland events marketing platform;

• Continuing to grow TEQ’s digital footprint which currently includes an engaged audience of more than 3.8 million consumers globally across e-newsletter and social media platforms;

• Strengthening existing and identifying new strategic partnerships with airlines, travel trade and industry and delivering activities under established partnerships;

• Supporting TEQ’s partnership with Queensland’s 13 RTOs through the Tourism Network Funding Program 2016-2019;

• Delivering destination and experience development activities including reinforcing Queensland’s competitive position through the Best of Queensland Experiences Program, encouraging and supporting the tourism industry to innovate and deliver quality visitor experiences, and supporting Queensland’s RTOs; and

• Implementing activities to strengthen the tourism potential of the international education market in Queensland. During 2017-18 TEQ will continue to work with Trade and Investment Queensland (TIQ) to assist in implementing its International Education and Training Strategy to Advance Queensland 2016-2026.


Queensland Government objectives for the community

TEQ contributes to the Queensland Government’s objectives for the community of creating jobs and a diverse economy; protecting the environment; and building safe, caring and connected communities by:

• promoting Queensland’s iconic experiences to key domestic and international markets

• tourism experience and destination development

• strengthening Queensland’s events calendar through strategic event acquisition

• providing leadership to and working in partnership with Queensland’s regional tourism organisation (RTO) network and industry.

During 2016-17, TEQ delivered activity to progress the priorities outlined in the Minister’s Statement of Expectations including delivering the new experience marketing approach; continuing market research on consumer behaviour and travel preferences to inform the new consumer segmentation model; leading the acquisition, development and promotion of events; supporting the industry in bidding for incentive travel to Queensland; securing more international aviation access through the Advance Queensland: Connecting with Asia Strategy 2016-20; implementing the Queensland Asia Tourism Strategy 2016-2025; and leveraging the tourism potential of the international education network.

Objectives and performance indicators

TEQ focused on four key objectives in 2016-17, as outlined in the 2016-2020 Strategic Plan:

1. Attract visitors to Queensland, generating overnight visitor expenditure (OVE)

2. Contribute to the Queensland economy

3. Enhance the profile of Queensland

4. Foster community pride in Queensland.

These were delivered through:

o Marketing and promoting tourism in Queensland;

o Tourism experience and destination development; and

o Working to identify, attract and promote major events.

Performance indicators are arranged into two groups based on the degree of influence TEQ has in affecting the outcome:

Service delivery measures

• Overnight visitor expenditure generated by events within the portfolio

• Direct and incremental spending generated by events within the portfolio

• Visitors to Queensland generated by events within the portfolio

• Direct visitor nights generated by events within the portfolio

• Publicity and promotional value generated by activities

• Value of collaborative support

• Efficient leverage of regional and strategic partnership investment

Industry outcome measures

• Economic impact and job creation

• Total overnight visitor expenditure

• Queensland’s share of Australian overnight visitor expenditure (total, leisure and holiday visitors).

Our performance


Service areas and service standards

TEQ committed to deliver seven service standard targets in the 2016-17 Queensland State Budget – Service Delivery Statements. Results against each target are detailed in the Annual Performance Statement 2016-17.

Service area objective

To achieve economic and social benefits for the State by growing the tourism and events industry in a partnership between industry and Government.

Service area description

TEQ’s core functions are marketing, event acquisition and experience development.

Table 4: Annual Performance Statement 2016-17

Service area: Tourism and Events Queensland

Notes 2016-17 Target 2016-17 Actual

Service standards Effectiveness measures

Overnight visitor expenditure generated by events within the TEQ portfolio

1 $300m $349.7m

Direct visitor nights generated by events within the TEQ portfolio

1 1,750,000 1,985,088

Direct and incremental spending generated by events within the TEQ portfolio

1 $375m $415.2m

Visitors to Queensland generated by events within the TEQ portfolio

225,000 242,351

Publicity and promotional value generated by TEQ activities

2, 3 $220m $293m

Value of collaborative support 4 $19m $32m

Efficiency measure Efficient leverage of regional and strategic partnership investment

5 1:1 1:1

Notes

1. Recurring events, such as the Gold Coast Airport Marathon, World Science Festival in Brisbane, V8 Supercar races in Townsville and Gold Coast and one-off blockbuster events such as, the IRONMAN 70.3 World Championships on the Sunshine Coast and the TOTAL BWF Sudirman Cup on the Gold Coast contributed significantly to the strong results against targets in 2016-17 .

2. This measure does not include the publicity generated by TEQ’s digital marketing activities. TEQ is working to develop a new measure/service standard for inclusion in future Service Delivery Statements that captures TEQ’s increasing efforts in generating publicity through social media and other online content.

3.. TEQ-led publicity associated with Cyclone Debbie recovery, events international broadcast and media outcomes of the Sudirman Cup, digital broadcast activity in Asia and special interest publications in Europe contributed significantly to the strong publicity outcome for 2016-17 and far exceeded expectations.

4. Collaborative value includes all direct, indirect, contra and in-kind partner support for tourism and event marketing, destination and experience development projects and major events. The 2016-17 actual result exceeded the target due to higher than forecast indirect and in-kind support from strategic tourism, aviation and event partners.

5. This service standard measures the ratio of partner investment to the investment made by TEQ in regional and partnership activities.


In 2016-17, TEQ supported 49 major events, 87 destination events, and 16 business events, growing TEQ’s portfolio of events by almost ten per cent from the previous financial year to generate $349.7 million in overnight visitor expenditure, $415.2 million in direct and incremental spending, 1.985 million direct visitor nights and attracting 242,350 visitors to Queensland. Almost half of the events that TEQ invests in are held outside of the South East Queensland corner, promoting the unique tourism opportunities on offer in regional Queensland.

Key events contributing to this success include the Gold Coast Airport Marathon, Supercars events in Townsville, Ipswich and the Gold Coast, the IRONMAN events in Noosa, Cairns and Mooloolaba, and the Blues on Broadbeach Music Festival. The latter is one of the largest free music festivals in Australia, which generated more than $20 million in direct spending and attracted over 13,000 interstate and international attendees in 2017.

Deliver and promote a world-class events calendar

Queensland events are crucial to delivering measurable benefits for the State’s economy and its regional communities. Supporting events in Queensland helps attract visitors, increase visitor spending, encourage dispersal in region and support local jobs. The variety in Queensland’s events offering is key to inspiring the world to experience the best address on earth.

TEQ is committed to delivering and promoting an annual world-class events calendar for Queensland via the It’s Live! in Queensland platform. Queensland’s calendar of events is estimated to be worth $600 million in economic impact for the state. The calendar works as a sustainable high-value asset for the State and is guided by TEQ’s Events Strategy 2025, which provides a framework to ensure events align with TEQ’s overarching objectives and that investment is maximised to ensure the best tourism outcomes. The Events Strategy 2025 is also designed to meet the objectives as stated in the Act: contribute to the Queensland economy; attract visitors to Queensland; enhance Queensland’s profile; and foster community pride. To optimise the value of these events and ensure Queensland remains a premier events destination, TEQ works in partnership with industry, RTOs and event organisers across the State.

TEQ invests in three different types of events in Queensland - major, business and destination events - which collectively play a vital role in attracting visitors to Queensland and supporting the state's tourism industry.

Strategic Priorities — Highlights 2016-17


Case study

More than 3,600 competitors from 83 countries descended on Mooloolaba in September 2016 for the IRONMAN 70.3 World Championship, bringing with them over 4,000 supporters. This was the first time the Championship was held in the Southern Hemisphere, and it attracted the largest IRONMAN 70.3 Championship competitor field ever. It was a huge success for tourism in the region with attendees spending an average of seven nights away from home to attend the event.


What types of events does TEQ invest in?

Destination Events

The Queensland Destination Events Program (QDEP) is an event investment program designed to create a growth pathway for events across Queensland that play a role in attracting visitors to a destination and promoting the destination’s visitor experiences. In 2016-17, TEQ allocated funding via three competitive funding rounds.

In 2016-17, TEQ invested $2 million in regional events and supported 87 events across Queensland which generated 752,800 visitor nights.

Business Events

TEQ remains committed to securing business events through its annual funding support for the six Queensland Convention Bureaux as well as the Acquisition and Leveraging Fund.

Queensland Convention Bureaux

Funding for the Queensland Convention Bureaux provides additional support to market destinations to attract business event opportunities. Six Queensland Convention bureaux received funding through TEQ in 2016-17, with each bureau required to match the funding provided dollar-for-dollar.

Acquisition and Leveraging Fund

The Acquisition and Leveraging Fund allows Queensland convention bureaux, convention centres, professional conference organisers and international associations to apply for financial support to assist in securing international association business events and international incentive group events for Queensland. In 2016-17, 16 business events were successfully secured and 16 were held, which welcomed more than 15,000 delegates to Queensland.

Major events

Queensland is one of Australia’s leading destinations for major events, with our unique destinations and stunning backdrops adding to an unmatched consumer experience. In 2016-17 Queensland supported 49 major events, including sport, lifestyle, and arts and culture events, which have been pivotal in attracting visitors to Queensland and supporting the state's tourism industry.

TEQ classifies major events as either one-off or recurring sporting, lifestyle, entertainment, cultural or design events that have the potential to deliver significant value against the organisation’s objectives.

Of the total benefits delivered by all TEQ supported events in 2016-17, major events accounted for:

• Almost 220,000 visitors to Queensland;

• More than 1.73 million direct visitor nights; and

• Direct and incremental spending of $395 million for Queensland, a growth of $30 million from the previous financial year.


The Gold Coast 2018 Commonwealth Games (GC2018), to be held in April 2018, will be the most significant sporting event in Australia this decade, providing Queensland with the opportunity to generate economic and social benefits for many years to come.

It is anticipated the Commonwealth Games will create up to 16,000 full-time equivalent jobs and inject $2 billion into the economy.11 Through attracting worldwide public attention, the Games will increase interstate and international visitation and enhance Queensland’s brand as a tourist destination.

Gold Coast 2018 Commonwealth Games

Using a cross-organisation approach, TEQ is working to optimise the tourism value of GC2018 for Queensland in close partnership with the Gold Coast Commonwealth Games Corporation (GOLDOC), City of Gold Coast, Office of the Commonwealth Games, TA, and RTOs including Gold Coast Tourism, Tourism Tropical North Queensland, Townsville Enterprise and Brisbane Marketing, to leverage the Games to generate overnight visitor expenditure, enhance the brand image of the Gold Coast and Queensland globally, and leave a marketing legacy for other future major events.

Activity undertaken by TEQ is geared to deliver upon four key objectives:

• maximise interstate and international visitation to Queensland for GC2018;

• maximise interstate and international visitor length of stay and Overnight Visitor Expenditure (OVE) pre, during and post GC2018;

• enhance the awareness and perception of Queensland as a tourism and events destination to maximise the legacy benefits of GC2018; and

• raise the profile of Queensland’s event hosting capability to secure high value events for Queensland post GC2018.

TEQ-led activity in 2016-17 spanned several key areas including domestic and international media engagement; promotion of GC2018 via the It’s Live! in Queensland campaign and at TEQ-supported events; delivering marketing activity with TA including a Queensland experience activation in the United Kingdom to leverage the launch of the Queens Baton Relay (March 2017); and trade engagement promoting GC2018 at numerous trade and consumer shows including the 2017 Australian Tourism Exchange in Sydney.

Having established a strong strategic partnership, TEQ has worked closely with GOLDOC on the planning and execution of marketing campaign activity into key interstate and international markets. This partnership has facilitated the authentic integration of Queensland tourism experiences into the overall GC2018 event experience offering, thus broadening the appeal of GC2018 to domestic and international visitors and encouraging athletes, officials and media to extend their stay in Queensland beyond the Games.

TEQ continues to provide strategic advice on tourism and event related matters across numerous GC2018 forums and working groups led by stakeholders including GOLDOC, Office of the Commonwealth Games and City of Gold Coast.

11. Source: Griffith University, The Economic Impacts of the Gold Coast 2018 Commonwealth Games, August 2017


Market the best address on earth

In 2016, TEQ unveiled a new brand with an exciting new direction and vision for Queensland, helping to better showcase Queensland within Australia and globally.

Extensive marketing research helped to inform a more targeted and focused approach, with Queensland featured as the master brand, supported by the promotion of signature experiences that leverage relevant destinations. In this way the new brand presents a stronger and more competitive platform to inspire, engage and attract more visitors to Queensland.

As part of this rebranding, five experience pillars were identified to create the best competitive advantage for Queensland:

• Reef, Islands and Beaches

• Natural Encounters

• Adventure and Discovery

• Events

• Lifestyle, Culture and People.

TEQ works collaboratively with destinations across Queensland in the implementation of this experience-based strategy, which also provides opportunities for destinations and industry partners to leverage activities further, capitalise on the state’s growing tourism industry and increase brand equity and market share for Queensland.

The phased roll out of the new brand through the “I know just the place’ campaign, commenced in late November 2016 in domestic and New Zealand markets and in January 2017 across Europe, the United Kingdom and the Americas. Activity under the campaign focuses on showcasing Queensland’s unique tourism offerings told through the words of the people who run them. Activity included print, television, outdoor, digital and cinema advertising.

The most recent campaign tracking study, conducted by Nielsen in June 2017, showed the ‘I know just the place’ campaign performed above Nielsen’s global norms on measures of advertising effectiveness such as communication, persuasion, empathy and impact; and nearly three quarters of respondents indicated they intend to visit Queensland in the next 12 months. This is above the benchmark of 71 per cent set prior to the launch of the ‘I know just the place’ campaign.8

8. The Nielsen Company, Campaign Tracking Study, July 2017 - Australian residents in Brisbane, Sydney and Melbourne


Great Barrier Reef

One of Queensland’s most valuable and iconic tourism experiences is the Great Barrier Reef, a vast and diverse natural asset with around 2300 kilometres / 1400 miles of living coral. The Great Barrier Reef is a living treasure to protect and share with visitors from around the world. It is Queensland’s most valuable natural tourism asset with around two million visitors experiencing it every year. In June 2017, TEQ welcomed the Deloitte Access Economics report which showed that the Great Barrier Reef contributes $6.4 billion to the Australian economy and supports over 64,000 jobs.

TEQ plays a key role in marketing the Great Barrier Reef and its experiences. Activity is delivered in partnership with industry and TA and focuses on promoting the Great Barrier Reef’s unique-selling points, such as size and use, diversity of wildlife and conservation to key domestic and international markets. TEQ also highlights the Great Barrier Reef as one of the five experience pillars, Reef, Islands and Beaches, under the Queensland brand, supported by extensive media promotion and the development of key marketing products. Key highlights from 2016-17 include:

o partnering with TA and industry to deliver a global media familiarisation program with ten key media representatives from the United Kingdom, Europe and New Zealand. The familiarisation program took place during April and May 2017 and focused on connecting media with sources of truth on reef health.

o delivering the Great Barrier Reef ‘ATE Talks’ event held on Tuesday, 16 May 2017 at the Australian Tourism Exchange in Sydney. Over one hundred international travel buyers and media and tourism operators attended.

o partnering with TA and the Great Barrier Reef Marine Park Authority at the Australian Tourism Summit in United States of America for the “The Future of Travel” event. TEQ participated in a panel discussion about sustainability which was moderated by Costas Christ, National Geographic Traveller Editor-at-Large and included a live cross to Reef HQ in Townsville.

TEQ works to strengthen key strategic partnerships with stakeholders including the Great Barrier Reef Marine Park Authority, the Great Barrier Reef Foundation and the Citizens of the Great Barrier Reef on a range of industry initiatives to promote responsible and sustainable management practices and build Great Barrier Reef resilience. TEQ recognises the important role that the tourism industry plays to advocate for the Great Barrier Reef and promote world leading best management practices of this highly treasured natural asset to protect it for future generations. Currently tourism dollars contribute towards protection and management of the Great Barrier Reef. For example, every person who visits the Great Barrier Reef with a commercial operator currently contributes to sustaining the Reef through an Environmental Management Charge.


Tropical Cyclone Debbie

To assist the tourism industry in its recovery efforts following Tropical Cyclone Debbie, TEQ has continued extensive marketing activity through its brand to welcome back travellers to the impacted regions. Central to this marketing campaign was the key message that Queensland is still the best place in Australia to holiday and that the best thing visitors can do to support the industry is to holiday in Queensland.

Major domestic and international campaign activity was delivered in partnership between TEQ and TA, featuring print, digital and television commercials to encourage travellers to holiday in Queensland. The campaign activity included support for impacted areas such as the Whitsundays and sent a clear message to consumers that Queensland is ready to welcome visitors.

As part of the recovery marketing effort, TEQ partnered with Flight Centre to deliver marketing activity with a focus on cyclone-affected areas. TEQ also provided additional funding to Tourism Whitsundays, Capricorn Enterprise and Mackay Tourism Limited to support their marketing efforts post-cyclone. Overall, a total 99 pieces of media coverage and 90 pieces of content were achieved throughout the campaign.

TEQ’s most recent campaign tracking study, conducted by Nielsen in June 20179 , showed in total, 65 per cent of respondents agree or strongly agree that Queensland has recovered from Tropical Cyclone Debbie and the subsequent flooding.

Destination and experience development

TEQ works in partnership with RTOs, the Queensland Tourism Industry Council (QTIC) and industry to ensure Queensland experiences deliver on consumer expectations. TEQ focuses on promoting the experiences that have the strongest potential to drive visitation and grow Queensland’s share of overnight visitor expenditure (OVE).

Developed during 2016-17, TEQ’s Experience Framework guides the implementation of the organisation’s marketing direction, particularly with regards to consumer messaging and maximising Queensland’s competitive advantage. Based on consumer research and competitor analysis, the framework identifies five key experience pillars and a range of supporting Hero Experiences that reflect the heart and soul of the Queensland story and represent where Queensland has a competitive advantage. TEQ’s experience marketing approach is being implemented through activity focusing on relevant Hero Experiences that have the best potential to drive visitation and expenditure from our target market segments.

Other key experience development activity undertaken in 2016-17 included:

• developing the Best of Queensland Experiences program (to be launched in 2017-18) which will identify the best of the best experiences across Queensland;

• working with TA to leverage and promote Queensland’s key experiences internationally through TA’s Signature Experiences of Australia program;

• leading an Aboriginal and Torres Strait Islander Experience Development tour with ten emerging businesses and representative organisations; and

• developing a storytelling toolkit for Queensland tourism operators, and facilitating ten workshops and up to 80 mentoring sessions across Queensland; and

• working with Tourism Tropical North Queensland to market indigenous tourism offerings globally, build capacity amongst indigenous tourism operators and develop the Queensland Aboriginal and Torres Strait Islander Experiences Guide for travellers.

8. The Nielsen Company, Campaign Tracking Study, July 2017 - Australian residents in Brisbane, Sydney and Melbourne


Focus on Asia

Over the past decade, the importance of Asian travellers to Queensland and Australia has grown significantly and is projected to continue this growth. A strategic priority for TEQ is maximising the growth opportunities out of Asia and promoting Queensland as Australia’s leading destination for Asian travellers.

To ensure Queensland is in the best position to capitalise on this growth and better meet the needs of Asian travellers in 2016, TEQ, in partnership with the Queensland Government and in consultation with various stakeholders, developed the Queensland Asia Tourism Strategy 2016-2025 based on extensive research and insights, to maximise Queensland’s competitive position with Asian travellers, drive sustained growth in Queensland’s tourism industry and deliver jobs in regional Queensland. Key targets as part of this strategy include increasing overnight visitor expenditure from Asian markets to $6.8 billion by 2025, supporting up to 30,000 additional jobs.

The strategy forms a core component of the Queensland Government’s overarching Advancing Queensland: Connecting with Asia Strategy. Under this strategy TEQ works closely with industry to identify and pursue new opportunities that drive tourism growth from Asia through the Queensland Government’s $33.5 million Advance Queensland: Connecting with Asia Fund. A recent highlight is the landmark agreement with China Southern Airlines, led by TEQ in partnership with key stakeholders, that will see three flights a week direct from Guangzhou to Cairns, the first year-round service by a Chinese airline into Cairns. This agreement is set to deliver $90 million into the Tropical North Queensland region.

The Queensland Government’s AAIF also provides opportunities to secure new and increased aviation business and routes into Queensland from a number of markets, including Asia, an example being the 16 Jin Air seasonal services between Seoul and Cairns in 2016–17.

TEQ is continuing to work with the industry to identify ongoing opportunities with the aviation industry that encourage new routes, increase aviation capacity into Queensland from across Asia, and support growth in Queensland’s tourism industry.

Partnerships

Strategic partnerships

To achieve the best tourism outcomes for Queensland, TEQ recognises the importance of developing key strategic partnerships that enable close collaboration across industry and maximise opportunities to grow overnight visitor expenditure through showcasing Queensland experiences to key target markets.

TEQ collaborates with a range of partners including TA, RTOs, tourism industry operators and associations, state and local government, commercial partners, airlines and industry-related tourism associations to drive tourism outcomes for Queensland.

TEQ has developed a range of strategic commercial agreements with various stakeholders including Queensland’s thirteen RTOs, QTIC, a number of airlines and other tourism industry partners, which open up extensive opportunities for the state.

Another key achievement in 2016–17 was the signing of a two-year agreement (2017-2019) with key distribution partner Utour, a private travel agency based in China, designed to enhance the promotion of Queensland’s destinations and experiences to Utour’s significant customer base of over 1.5 million customers each year.

TEQ also successfully delivered two campaigns with Mafengwo, China’s largest online travel social platform, as part of it’s two-year agreement (2016–18). The agreement enables TEQ to reach the growing online travel market in China and provides the opportunity to showcase Queensland product on the site. The first campaign focused on promoting the Gold Coast and Cairns and Great Barrier Reef regions, in conjunction with the Hong Kong Airlines service to these destinations, and the second campaign focused on promoting Brisbane, in conjunction with the launch of China Eastern Airlines’ service from Shanghai to Brisbane, which launched in December 2016.

In addition to the Connecting with Asia Fund activity, TEQ worked in partnership with DTESB, RTOs, airports and industry members to secure new, and expand existing, routes into Queensland from domestic markets and key and emerging international markets under the $10 million AAIF. Recent highlights include:

• Tigerair launching a service from Melbourne to Townsville. The service, which commenced on 23 June 2017, is delivering better connections to regional Queensland and is expected to inject an additional $12.5 million in overnight visitor expenditure and 28,000 additional seats into the region each year; and

• Qantas commencing a three times weekly service on the Christchurch—Brisbane route in June 2016. During 2016-17 the route delivered an additional 27,000 seats and an estimated $11 million in overnight visitor expenditure.


Regional partnerships

In 2016-17, $7 million was invested in the RTO network through the Tourism Network Funding Program 2016-19 for the purposes of delivering marketing and development activity, as well as supporting some operational costs of the RTOs. The annual investment of $7 million is to be matched by local government and/or other industry partners, thereby doubling the efforts for the destinations and creating a total resource of $42 million over three years.

TEQ hosted 13 ‘Conversations with Industry’ forums across Queensland, attracting over 900 attendees from across the sector. The forums are a key opportunity for local tourism operators and industry to connect with TEQ, to strengthen collaboration with industry, enhance understanding of industry needs, issues and opportunities, and discuss strategies to grow tourism and events in Queensland destinations. These sessions provide tourism businesses with an opportunity to meet representatives from TEQ, TA, RTOs, DTESB and QTIC.

DestinationQ and other Government priorities

DestinationQ is an annual forum delivered in partnership with the Queensland Government and tourism industry based on three core principles, Invest, Excel and Grow. It is a unique platform for industry to engage with the Queensland Government and identify new opportunities to continue growing Queensland’s tourism market as well as plan for the future. In 2016-17, the forum was held in Mackay in October 2016, attracting more than 280 stakeholders.

TEQ supported the delivery of a range of actions under Destination Success: the 20-year plan for Queensland Tourism in 2016-17, in collaboration with Government and industry. Further information regarding DestinationQ and the 20-year plan is available at destq.com.au.

TEQ actively participates in the Australian Standing Committee on Tourism (ASCOT) and Tourism Ministers Meeting process. In addition, TEQ contributes to intergovernmental groups that focus on tourism established under the National Long Term Tourism Strategy which aims to increase the supply and quality of Australian tourism product and make the industry more resilient and competitive.


Under the Tourism and Events Queensland Act 2012, the Chairman and board are appointed by the Governor in Council and are responsible to the Minister for Education and Minister for Tourism, Major Events and the Commonwealth Games. As at 30 June 2017, TEQ’s board had nine members including the Director-General of the DTESB.

Members are appointed in accordance with section 20 of the Act, with the Governor in Council having regard to the person’s experience and expertise in business, financial management, and promoting and staging events, and their knowledge of the tourism industry. The Board is to consist of the CEO (Director-General) of DTESB and at least eight other members. 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. The Board is to ensure TEQ performs its functions in a way that is appropriate, effective and efficient, forming committees as appropriate.

Duties and responsibilities of the Board include:

• Ensuring TEQ’s strategic direction is aligned to the needs of industry and the objectives of the Government;

• Conducting meetings of the members (including its committees) and the affairs of the organisation having full regard for the best corporate governance practices;

Corporate governance• 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 the business objectives;

• Ensuring business risks are identified and approve systems of risk management, regulatory compliance, 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 Chief Executive Officer and management.

Board performance

Each year the Board and its committees conduct an evaluation of their performance, as part of their commitment to the ongoing development of both individual members, the Board, and the committees as a whole.

Between Board meetings, there is continuing contact between the Chairman and Chief Executive Officer to discuss major policy and strategic matters, especially when such matters are the subject of Board interest, or are likely to become so.

Regular Board papers inform Board members of current and forthcoming strategic issues and other matters relevant to TEQ's operations and performance, including financial performance.


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. Events Committee

The role of the Events Committee is to assess and consider event investment opportunities and make recommendations to the Board. The Events Committee was formed in December 2012 and meets ahead of Board meetings.

Six Events Committee meetings were held in 2016–17. The Committee members included Prof Judith McLean (Chairman), Gary Smith (Member), Paul Donovan (Member) and Karen Hanna-Miller (Member).

The Chief Executive Officer, Group Executive Events and relevant TEQ staff attend the events committee meeting as requested.

2. Audit and Remuneration Committee

The Audit and Remuneration Committee assists the Board in fulfilling its corporate governance and oversight 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;

• Safeguarding the independence of the external and internal auditors; and

• Ensuring that appropriate remuneration policies are designed to meet the needs of TEQ and to enhance corporate and individual performance.

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

During the year, the Committee reviewed and observed the terms of the Audit and Remuneration Committee Charter and the Internal Audit Charter in line with Queensland Treasury’s Audit Committee Guidelines. In addition, the Committee tracked the implementation of agreed internal, external and performance audit recommendations.

Four Audit and Remuneration Committee meetings were held in 2016–17. The Committee members included Gary Smith (Chairman), Julieanne Alroe (Member) and Anna Guillan (Member).

The Chief Executive Officer, financial management staff and internal and external auditors attend Audit and Remuneration Committee meetings as requested by the Committee. The Committee also holds discussions with the auditors without management attending.

3. Contestable Grants Committee

The role of the Contestable Grants Committee was to consider and approve the successful contestable grant project applications received from the RTO Contestable Grants Assessment Committee, and provide recommendations to the TEQ board, which were subsequently provided to the Minister for noting and announcement. The RTO Contestable Grant program ceased in 2015–16. The Committee did not meet in 2016–17 and the Committee was dissolved by the Board at the October 2016 meeting.


Internal audit

Internal audit advises all levels of management and the Audit and Remuneration Committee on TEQ’s internal control systems and management of business risk.

The internal audit function is responsible for:

• Assisting executives with risk management through the provision of advice and assurance;

• Developing:

- a plan that is based on assessed business risks and objectives and which is flexible enough to meet changing business needs; and

- resourcing arrangements that will cope with special requests;

• Providing regular progress reports to management and the Audit and Remuneration Committee;

• Ensuring internal audit remains effective, credible, productive and focused on those areas of most significance to the corporation;

• Working with management to challenge and improve established and proposed practices and put forward ideas for improving processes;

• Providing an appropriately skilled team supported, where necessary, by specialist expertise;

• Maintaining an open relationship with the external auditors; and

• Fostering a culture of working with management towards agreed solutions.

Internal audit works with management and the Audit and Remuneration Committee to align its audit program with TEQ’s strategic risk profile.

During the year:• Internal audit operated under an

approved charter that is consistent with relevant audit and ethical standards;

• Internal audit worked in accordance with the strategic plan;

• Systems were in place to ensure the effective, efficient and economical operation of the function;

• The internal audit function was independent of management and the external auditors;

• The internal audit function had due regard for Queensland Treasury’s Audit Committee Guidelines; and

• Internal audits were conducted in the areas of contestable and core grant acquittals, major contract governance, cloud computing and shadow IT, procurement practices, and foreign exchange management.

Risk management

TEQ has a risk management framework, including a risk management policy and a risk register owned by the TEQ Board. Senior management regularly review the risk register and TEQ seeks to continuously improve its approach to identifying and managing risk.

The Audit and Remuneration Committee is responsible for reviewing and reporting to the Board with regard to TEQ’s risk management framework, liaising with management to ensure there is a common understanding of the key risks to, and for, TEQ, reviewing the effectiveness of processes for identifying and escalating strategic risks, and assessing and contributing to the audit planning processes relating to the risks and threats to TEQ.

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 2016-17 on 30 August 2017;

• TEQ Employing Office financial statements for 2016-17 on 30 August 2017; and

• Gold Coast Events Management Ltd financial statements for 2016-17 on 30 August 2017.

There were no material issues identified by external audit in 2016-17.


Name Position Appointment Date End Date

Bob East Chairman 3 August 2015 5 September 2017 (resigned)

Julieanne Alroe Deputy Chairman

12 December 2012 3 August 2015

2 August 2015 2 August 2018

Paul Donovan Member 12 December 2012 3 August 2015


Anna Guillan Member 20 December 2012 3 August 2015


Karen Hanna-Miller Member 3 August 2015 2 August 2018

Michael Healy Member 3 August 2015 21 March 2017 (resigned)

Prof Judith McLean Member 20 December 2012 3 August 2015


Gary Smith Member 20 December 2012 3 August 2015


James Dixon Member 8 June 2017 2 August 2018

Director-General, Tourism, Major Events, Small Business and the Commonwealth Games

Member Permanent member under Tourism and Events Queensland Act 2012

Board meetings

During the year six board meetings were held. No special board meetings were held.

Two of the six meetings were held in regional areas in order for Board members to connect and engage with RTOs, stakeholders and the local tourism industry. While in region, Board members met with local industry to discuss issues and challenges they are facing and received feedback from tourism operators to help inform their decision-making.

TEQ Board meetings were held in the Sunshine Coast (October 2016) and the Whitsundays (June 2017) during 2016–17, and the Board plans to continue hosting further meetings in regional areas in 2017–18. Four meetings were held in Brisbane, and the Board engaged with industry stakeholders in Brisbane as part of its August 2016 meeting.

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


Government bodies

Tourism and Events Queensland Board

Act or instrument Tourism and Events Queensland Act 2012

Functions The primary role of the board is to provide strategic direction, effective governance and risk guidance over Tourism and Events Queensland’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 2016-17, the TEQ Board set the strategic direction for the corporation through the 2017-2021 Strategic Plan and led the execution of TEQ’s new marketing strategy and the development of the Best of Queensland Experiences program. In addition, the Board considered a number of key industry partnership agreements, reviewed the Events Strategy 2025 and approved investment in a range of major events throughout the State driving economic and social benefits for Queensland.

Financial reporting The transactions of the entity are accounted for in the financial statements. The entity is audited by the Queensland Audit Office.

Remuneration

Position Name Meeting attendance Approved annual, sessional or daily fee

Approved sub-committee fees if applicable

Actual fees received

Chair Bob East 6 $35,000 pa N/A $35,000

Deputy Chair Julieanne Alroe 5 $10,000 pa N/A $10,000

Member Paul Donovan 6 $10,000 pa N/A $10,000

Member Anna Guillan 3 $10,000 pa N/A $10,000

Member Karen Hanna-Miller 5 $10,000 pa N/A $10,000

Member Michael Healy 4 $10,000 pa N/A $7,385

Member Prof Judith McLean 6 $10,000 pa N/A $10,000

Member Gary Smith 4 $10,000 pa N/A $10,000

Member James Dixon 0 $10,000 pa N/A $Nil

Member Director-General, Tourism, Major Events, Small Business and the Commonwealth Games

4 N/A N/A N/A

No. scheduled meetings/sessions

6

Total out of pocket expenses

Nil


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 Airport Marathon, an annual running event, and the Pan Pacific Masters Games, a biennial multi-sports masters event, both held on the Gold Coast.

Achievements The principal achievement for the reporting period was the successful staging of the 38th annual IAAF Gold Label event Gold Coast Airport Marathon, together with planning for the 2017 and 2018 events. The entity also prepared for and staged the world’s biggest biennial masters games, the Pan Pacific Masters Games in November 2016.

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, sessional or daily fee

Approved sub-committee fees if applicable

Actual fees received

Chair Kerry Watson 6 $71,175 N/A $71,175

Director Daphne Pirie 6 N/A N/A N/A

Director Mark Reaburn 4 N/A N/A N/A

Director Nick Elliott 6 N/A N/A N/A

Director Lindsay Wallace 5 N/A N/A N/A

No. scheduled meetings/sessions

6

Total out of pocket expenses

$758


Statutory obligations

A summary of TEQ’s recent progress towards ensuring compliance with statutory obligations is as follows:

1. 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 is intended to give staff a framework to ensure the organisation maintains its professional standards. The code outlines the expectations of all staff and provides information on the ethical values and behaviour required in TEQ’s daily business activities. Adherence to these values is fundamental in building a relationship of trust between industry, Government and the community.

The code applies to all staff as well as the Chairman, Board members and contractors. Information on the code is provided to all new employees during their induction and online training. Electronic copies are available for ongoing reference. If the code is not followed, performance feedback will ensue, with the outcome of this feedback ranging from counselling to termination of employment.

TEQ’s human resource management procedures and practices, including staff performance reviews, have been put in place in accord with the code.

2. Work Health & Safety Act 2011

TEQ’s Work Health and Safety (WHS) Committee continued to meet quarterly to discuss WHS matters and facilitate compliance with the Work Health & Safety Act 2011.

During 2016-17, TEQ’s WHS Management System was reviewed by a qualified external party against the AS/NZS 4801 Occupational Health and Safety Management Systems Standard. The review confirmed that the majority of recommendations previously proposed have been implemented.


The Public Records Act 2002 requires public authorities to make and keep full and accurate records of their activities and have regard to recordkeeping policies, standards and guidelines issued by the State Archivist.

TEQ uses the HP-RM8 (Records Management 8.1) electronic document and records management system. Other systems record other information including FinanceOne for financial records and transactions, and past contract management, and SharePoint Online, OneDrive for Business and shared-drives for internal collaboration on documents.

TEQ has engaged an external partner to manage TEQ’s backup, archival and retrieval of digital records held in RM8, shared drives and other systems. All TEQ systems are maintained and updated with current or previous software releases and hosted in cloud-based infrastructure for resiliency and security. All staff receive training in the making and keeping of public records upon commencement.

TEQ has an agreement with an external provider to store, retrieve and destroy its physical documents and records, as required. TEQ has an assigned role for records management operations. During 2016-17, TEQ continued the practice of digitising all new physical records into RM8 and FinanceOne.

There were no breaches of TEQ’s information security during the year. TEQ completed full cyber security penetration testing of physical security of external facing systems; wireless LAN penetration; and social engineering (targeting of staff). TEQ performed well against benchmarks for all three areas, implemented all recommendations from the testing; and conducted cyber security training for staff.


Efficient business operations

TEQ continued to review its business operations during 2016-17 to identify cost savings and operational efficiencies. During the year, TEQ:

• Implemented the Tourism Network Funding Program 2016-19 to replace the former annual Core and Contestable grant funding programs, creating administration efficiencies for both TEQ and RTOs and funding certainty over the three-year term of the agreements;

• Entered into further efficiency arrangements with TA and Trade and Investment Queensland (TIQ) to streamline transactional processing between the organisations, improving efficiency of administration;

• Significantly reduced the number of accounts receivable invoices created, and related accounts receivable management, through use of external providers;

• Refined and customised contract documentation and processes for TEQ’s International teams, simplifying commercial arrangements with partners and suppliers in international markets;

• Implemented Customer Relationship Management (CRM) solutions to enhance the management of internal and external public relations engagement, events stakeholder engagement and the management and reporting of familiarisations visits;

• Implemented electronic workflow solutions for five core business processes including cloud-based storage management, accounts payable and invoice processing;

• Adopted Uber Business service for ground transportation, improving speed, staff safety, accountability and visibility, and realising substantial costs savings;

• Upgraded staff computer hardware and software including latest Windows 10 and Office 365, providing improved performance, reliability and cyber security protection;

• Optimised the configuration and performance of TEQ’s consumer and corporate websites; and

• Optimised TEQ’s head office internet and voice services to significantly increase capacity.

TEQ’s procurement plan and associated procedures continue to incorporate a value-for-money framework and guide the efficient and effective conduct of TEQ’s operations, consistent with the Queensland Procurement Policy.

Open Data

The following reporting requirements are now published online through the Queensland Government open data portal (www.data.qld.gov.au) instead of being included in the annual report:

• Consultancies

• Overseas travel.

In 2016-17, TEQ had no information to report for the Queensland Language Services Policy.

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 page 82.


TEQ is committed to attracting and retaining a highly skilled workforce to achieve its set objectives. Overall staff engagement for 2016-17 was 83 per cent, measured by TEQ’s annual staff engagement survey.

At 30 June 2017, there were 142 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

• 123 FTE employed by Tourism and Events Queensland Employing Office.

In addition, there were 15 FTE employed by Gold Coast Events Management Ltd, a controlled entity.

Excluding Gold Coast Events Management Ltd, TEQ’s permanent separation rate was nine per cent.

The quality of TEQ’s workforce is imperative to the achievement of its objectives. The following activities and programs undertaken in 2016-17 were designed to enhance organisational effectiveness:

Workforce planning, attraction and retention

1. Capability framework

TEQ has a capability framework to clarify the behaviours desired of all employees and leaders to build on our success and to shape our desired culture. The behaviours align how we approach our roles with our vision, values and strategic plan.

The capability framework identifies four core themes that drive our key capabilities. Within each theme there are three capabilities that are delivered according to the requirements of the role. TEQ’s core values are also listed in the framework and are aligned to the capabilities.

By developing a clear and consistent language for defining the behavioural requirements of roles across TEQ, we can improve the focus and alignment of many key people practices, in particular:

• Selection for behaviour fit;

• Training and development; and

• Performance development discussions based on actual and required behaviours.

2. Performance framework

The performance framework ensures individual goals and behaviours are linked to business plans, priority projects and/or the purpose of the role, together with key behaviours from the capability framework. The performance framework provides clear and practical guidance to assist employees to manage their performance by:

• Acknowledging and assisting the development of employees’ skills and knowledge;

• Valuing the efforts and achievements of employees by recognising and rewarding performance;

• Providing employees with an opportunity to manage and plan their career development; and

• Helping to retain valued employees.


3. Key Position Risk Management

TEQ has created a framework outlining the

succession plan for key person risk roles

including the CEO, Group Executive and other

key leadership and specialist positions within

the organisation. The framework addresses the

possibility that a vacancy in a senior role will be

filled within an acceptable timeframe to ensure

minimal negative impacts on TEQ and its work.

4. Healthy, Wealthy & Wise initiatives

TEQ’s Healthy Wealthy and Wise program offers

optional benefits and a range of information

to assist staff to actively seek a lifestyle that

promotes wellness.

Activities offered in 2016-17 included staff skin

cancer checks, influenza vaccinations, QSuper

seminars and appointments for individual

advice, and yoga classes. TEQ is also part of

the Australian Red Cross Blood Services Group

program Red25.

5. Flexible working arrangements

TEQ believes it is important to support

employees in maintaining a balance between

work and personal lives. This contributes

positively to productivity, job satisfaction

and assists in retaining employees through a

more effective work environment. 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.

6. Learning and development

A learning framework linked to our capability framework offers a range of specialised learning programs designed for staff.

TEQ introduced the Future Leaders Program designed to build people’s foundational knowledge and capability to lead and manage teams and projects. It is designed for employees who are currently in non-managerial positions that have a desire to progress into leadership roles.

The program is aligned to TEQ’s Trusted Leaders Program for managers to enable consistency in tools, processes and techniques. It includes an Emotional Intelligence self-assessment to guide each participant’s professional development.

In addition, TEQ conducted a Staff Strategy Day in November 2016. The purpose of the day was to focus on the organisation’s strategic direction for the year ahead and included keynote addresses from key industry representatives.

7. Employee consultative committee

TEQ is committed to participative decision-making, which enables better communication flow across the organisation. 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.

8. Certified Agreement

The Industrial Relations Commission approved the Tourism and Events Queensland Certified Agreement 2016 on 27 March 2017 for a three-year period. A number of training sessions for staff and managers were held to provide an overview of the terms and conditions.


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 summary Financial performance

Successful delivery of TEQ services requires management of costs within budget and value-for-money expenditure in accordance with the Queensland Procurement Policy.

For the 2016-17 financial year TEQ had consolidated income of $122.20 million, of which $107.67 million was grant funding by the State Government.

Total consolidated expenses for 2016-17 were $122.01 million, of which $95.56 million was invested in marketing, development, event funding and support, and grants to RTOs. Consolidated grant payment expenses for 2016-17 totalled $43.17 million compared with $39.33 million for the prior year. This increase reflects the grant payments relating to additional major sporting events.

Consolidated employee expenses were $19.77 million. The majority of employees work directly on marketing, development, research and events promotion and staging activities, both in Australia and overseas.

The TEQ parent entity reported a break even operating result for the 2016-17 financial year.

The consolidated entity reported a surplus operating result of $0.19 million in 2016-17 due to a surplus achieved by a controlled entity.

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

Tourism and Events Queensland (Consolidated)

2013-14 $M

2014-15 $M

2015-16 $M

2016-17 $M

Grants and other contributions 100.43 101.95 101.90 107.67

Cooperative income 9.23 9.54 8.31 7.76

Other revenue 4.55 7.42 5.35 6.77

Total income 114.21 118.91 115.56 122.20

Marketing, development and events promotion and staging initiatives*

91.22 93.55 89.49 95.56

Employee and operations expenses (in Queensland and overseas)**

29.50 25.79 26.25 26.45

Total expenses 120.71 119.34 115.74 122.01

Marketing, development and events promotion and staging initiatives as a % of total income

79.9% 78.7% 77.4% 78.2%

* Includes grants paid to regional tourism organisations 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.

At 30 June 2017, total assets of the consolidated reporting entity were $12.65 million and total liabilities were $10.87 million. Equity of $1.78 million includes contributed equity relating to the transfer of the net assets of Events Queensland and its controlled entities that took place during 2012-13.


Consolidated Financial ReportFor the year ended 30 June 2017

Introduction

These financial statements cover Tourism and Events Queensland (“the Corporation” or “TEQ”) and its controlled entities. Information has been provided for the consolidated and parent entity.

The Corporation, 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 head office and principal place of business of the Corporation is:

Level 10 30 Makerston Street BRISBANE QLD 4000

A description of the Corporation’s objectives and its principal activities is included in the notes to the financial statements.

Separate Statements have been prepared for the Corporation’s controlled entities, the Tourism and Events Queensland Employing Office and Gold Coast Events Management Ltd. The Statements may be obtained on the Corporation’s website www.teq.queensland.com or by contacting the Corporation.


Table of Contents

Financial Statements Statements of Comprehensive Income Page 41

Statements of Financial Position Page 42

Statements of Changes in Equity Page 43

Statements of Cash Flows Page 44

Notes to the Financial Statements

Objectives and Principal Activities of the Corporation Page 45

Note 1 Summary of Significant Accounting Policies Page 45

Note 2 Revenue Page 52

Note 3 Marketing, Development and Events Support Expenses Page 52

Note 4 Grant Payments Page 53

Note 5 Employee Expenses Page 53

Note 6 Key Management Personnel and Remuneration Expenses Page 54

Note 7 Other Expenses Page 57

Note 8 Operating Result from Continuing Operations Page 57

Note 9 Receivables Page 58

Note 10 Other Financial Assets Page 58

Note 11 Property, Plant and Equipment Page 59

Note 12 Payables Page 60

Note 13 Accrued Employee Benefits Page 61

Note 14 Other Liabilities Page 62

Note 15 Reconciliation of Operating Result to Net Cash from Operating Activities Page 62

Note 16 Commitments for Expenditure Page 63

Note 17 Financial Instruments Page 64

Note 18 Related Party Disclosures Page 68

Note 19 Board Remuneration Page 70

Note 20 Investments in Controlled Entities Page 72

Note 21 Contingencies Page 73

Note 22 Events Occurring after Balance Date Page 73

Note 23 Budget vs Actual Comparison Page 73

Certification Management Certificate Page 77

Independent Auditor’s Report Page 78


Tourism and Events QueenslandStatements of Comprehensive Income for the year ended 30 June 2017

Consolidated Parent

2017 2016 2017 2016

Notes $000 $000 $000 $000

Income from Continuing Operations

Grants and contributions 2 107,667 101,895 107,667 101,895

Cooperative income 2 7,762 8,314 7,898 8,409

Other revenue 2 6,768 5,347 1,078 1,219

Total Income from Continuing Operations 122,197 115,556 116,643 111,523

Expenses from Continuing Operations

Marketing, development and events support expenses

3 52,391 50,155 48,489 47,111

Grant payments 4 43,165 39,334 43,765 39,934

Employee expenses 5,6 19,766 18,642 18,153 17,247

Depreciation 11 412 412 410 409

Impairment losses 20 - - - 664

Other expenses 7 6,270 7,199 5,826 6,822

Total Expenses from Continuing Operations 122,004 115,742 116,643 112,187

Operating Result from Continuing Operations 8 193 (186) - (664)

Other Comprehensive Income - - - -

Total Comprehensive Income 193 (186) - (664)

The accompanying notes form part of these Financial Statements.


Tourism and Events QueenslandStatements of Financial Position as at 30 June 2017

Consolidated Parent

2017 2016 2017 2016

Notes $000 $000 $000 $000

Current Assets

Cash and cash equivalents 9,838 7,581 6,407 4,026

Receivables 9 1,718 3,330 1,545 3,089

Other financial assets 10 - 42 - 42

Prepayments 515 280 346 88

Total Current Assets 12,071 11,233 8,298 7,245

Non-Current Assets

Property, plant and equipment 11 579 1,008 578 1,005

Total Non-Current Assets 579 1,008 578 1,005

Total Assets 12,650 12,241 8,876 8,250

Current Liabilities

Payables 12 6,582 6,527 6,645 5,952

Accrued employee benefits 13 3,452 3,239 468 438

Other current liabilities 14 158 97 158 97

Total Current Liabilities 10,192 9,863 7,271 6,487

Non-Current Liabilities

Accrued employee benefits 13 535 510 - -

Other provisions 80 60 - -

Other non-current liabilities 14 60 218 60 218

Total Non-Current Liabilities 675 788 60 218

Total Liabilities 10,867 10,651 7,331 6,705

Net Assets 1,783 1,590 1,545 1,545

Equity

Contributed equity 12,908 12,908 12,908 12,908

Accumulated deficit (11,125) (11,318) (11,363) (11,363)

Total Equity 1,783 1,590 1,545 1,545




Tourism and Events QueenslandStatements of Changes in Equity for the year ended 30 June 2017

Consolidated

Accumulated Deficit $000

Contributed Equity $000

TOTAL $000

Balance at 1 July 2015 (11,132) 12,908 1,776

Operating result from continuing operations (186) - (186)

Other comprehensive income - - -

Balance at 30 June 2016 (11,318) 12,908 1,590

Balance at 1 July 2016 (11,318) 12,908 1,590

Operating result from continuing operations 193 - 193


Balance at 30 June 2017 (11,125) 12,908 1,783

Parent

Accumulated Deficit $000

Contributed Equity $000

TOTAL $000

Balance at 1 July 2015 (10,699) 12,908 2,209

Operating result from continuing operations (664) - (664)


Balance at 30 June 2016 (11,363) 12,908 1,545

Balance at 1 July 2016 (11,363) 12,908 1,545

Operating result from continuing operations - - -


Balance at 30 June 2017 (11,363) 12,908 1,545


Tourism and Events QueenslandStatements of Cash Flows for the year ended 30 June 2017

Consolidated Parent

2017 $000

2016 $000

2017 $000

2016 $000

Notes

Cash flows from operating activities Inflows:

Grants and contributions from Government 108,271 102.459 108,271 102,459

Receipts from customers 16,852 15,825 10,981 10,887

GST input tax credits received from the ATO 8,397 8,126 8,073 7,903

Interest received Outflows:

206 242 152 197

Payments to suppliers and employees (129,837) (124,902) (123,982) (120,486)

GST remitted to ATO (1,674) (1,408) (1,156) (1,018)

Net cash provided by / (used in) operating activities 15 2,215 342 2,339 (58)

Cash flows from investing activities Inflows:

Proceeds from forward contracts Outflows:

7,308 6,427 7,308 6,427

Payments for forward contracts (7,266) (6,311) (7,266) (6,311)

Payments for property, plant & equipment - (61) - (61)

Net cash provided by investing activities 42 55 42 55

Net increase / (decrease) in cash and cash equivalents 2,257 397 2,381 (3)

Cash and cash equivalents at beginning of the year 7,581 7,184 4,026 4,029

Cash and cash equivalents at end of financial year 9,838 7,581 6,407 4,026



Tourism and Events Queensland Notes to and forming part of the Financial Statements for the year ended 30 June 2017

Objectives and Principal Activities of the Corporation

Tourism and Events Queensland’s objective is to work collaboratively with public sector units and Queensland tourism industry participants to promote and market Queensland and to identify, attract, develop and promote major events for the State, to attract international and domestic travellers to travel to and within Queensland, to contribute to the Queensland economy, enhance the profile of Queensland and foster community pride in Queensland.

Note 1 – Summary of Significant Accounting Policies

(a) Statement of Compliance

The Corporation has prepared these financial statements in compliance with section 43 of the Financial and Performance Management Standard 2009. The financial statements comply with Queensland Treasury’s Minimum Reporting Requirements for reporting periods beginning on or after 1 July 2016.

The Corporation is a not-for-profit entity and these general purpose financial statements are prepared on an accrual basis (except for the Statement of Cash Flows which is prepared on a cash basis) in accordance with Australian Accounting Standards and Interpretations applicable to not-for-profit entities.

(b) Presentation

Currency and Rounding Amounts included in the financial

statements are in Australian dollars and have been rounded to the nearest $1,000 or, where that amount is $500 or less, to zero, unless disclosure of the full amount is specifically required.

Comparatives Comparative information reflects the

audited 2015-16 financial statements except where restated to conform with changes in presentation for the current financial year.

Current/Non-Current Classification Assets and liabilities are classified as either

'current' or 'non-current' in the Statements of Financial Position and associated notes.

Assets are classified as 'current' where their carrying amount is expected to be realised within 12 months after the reporting date. Liabilities are classified as 'current' when they are due to be settled

within 12 months after the reporting date, or the Corporation does not have an unconditional right to defer settlement to beyond 12 months after the reporting date.

All other assets and liabilities are classified as non-current.

(c) Authorisation of Financial Statements for Issue

The financial statements are authorised for issue by the Chairman, a Board Member, the Chief Executive Officer and the Group Executive Corporate Services and Chief Financial Officer at the date of signing the Management Certificate.

(d) Basis of Measurement

Historical cost is used as the measurement basis in this financial report except for provisions expected to be settled 12 or more months after reporting date which are measured at their present value and other financial assets which are measured at fair value.

Historical Cost Under historical cost, assets are recorded

at the amount of cash or cash equivalents paid or the fair value of consideration given to acquire assets at the time of their acquisition. Liabilities are recorded at the amount of proceeds received in exchange for the obligation or at the amounts of cash or cash equivalents expected to be paid to satisfy the liability in the normal course of business.

Fair Value Fair value is the price that would be

received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions (i.e. an exit price) regardless of whether that price is directly derived from observable inputs or estimated using

another valuation technique. Fair value is determined using one of the following three approaches:

• The market approach uses prices and other relevant information generated by market transactions involving identical or comparable (i.e. similar) assets, liabilities or a group of assets and liabilities, such as a business.

• The cost approach reflects the amount that would be required currently to replace the service capacity of an asset. This method includes the current/depreciated replacement cost methodology.

• The income approach converts multiple future cash flows amounts to a single current (i.e. discounted) amount. When the income approach is used, the fair value measurement reflects current market expectations about those future amounts.

The Corporation’s forward exchange contracts are valued using the ‘market approach’.

Present Value Present value represents the present

discounted value of the future net cash inflows that the item is expected to generate (in respect of assets) or the present discounted value of the future net cash outflows expected to settle (in respect of liabilities) in the normal course of business.

(e) Foreign Currency Transactions

All transactions that are undertaken in a foreign currency are translated into Australian dollars. Foreign currency transactions are recorded on initial recognition in Australian dollars by applying to the foreign currency amount the spot exchange rate between the


Australian dollar and the foreign currency at the date of the transaction.

Monetary assets and liabilities held in foreign currencies at balance date are retranslated into Australian dollars in the Statements of Financial Position at the closing rate.

Translation differences are taken to the Statements of Comprehensive Income in the financial year in which they arise.

(f) The Reporting Entity

The consolidated financial statements include all income, expenses, assets, liabilities and equity of the ‘economic entity’ comprising the Corporation and the entities it controls where these entities are material (refer to Note 20). All transactions and balances internal to the economic entity have been eliminated in full.

The parent entity financial statements (titled ‘Parent’) include all income, expenses, assets, liabilities and equity of the Corporation only.

(g) Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Corporation and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised:

Grants and Contributions Grants and contributions are non-

reciprocal in nature so do not require any goods or services to be provided in return. Corresponding revenue is recognised in the year in which the Corporation obtains control over the grant/contribution/donation (control is generally obtained at the time of receipt).

Cooperative Income Cooperative income comprises revenue

earned from industry partners as a contribution towards the cost of marketing and event activity. Cooperative income is recognised as revenue when the revenue has been earned and can

be measured reliably with a sufficient degree of certainty. This occurs when the marketing or event activity is provided at which time the invoice is raised.

Registration Income Registration fees revenue is recognised when the event takes place. Registration fees received in

advance of an event are accounted for as unearned income in the Statements of Financial Position.

(h) Distinction between Grant Payments and Procurement

For a transaction to be classified as a marketing, development or event support expense in Note 3 or other expenses in Note 7, the value of goods or services received by the Corporation must be of approximately equal value to the value of the consideration exchanged for those goods or services. Where this is not the substance of the arrangement, the transaction is classified as a grant payment in Note 4.

(i) Cash and Cash Equivalents

For the purposes of the Statements of Financial Position and the Statements of Cash Flows, cash assets include all cash and cheques receipted but not banked at 30 June as well as deposits at call with financial institutions.

(j) Property, Plant and Equipment

Recognition Thresholds Items of property, plant and equipment, including leasehold improvements, with a historical

cost or other value equal to or in excess of $5,000 in the year of acquisition are reported as Property, Plant and Equipment. Items with a lesser value are expensed in the year of acquisition.

Measurement Plant and equipment is measured at historical cost in accordance with the Non-Current Asset

Policies for the Queensland Public Sector (NCAP).

Property, plant and equipment is measured at historical cost. Historical cost is determined as the value given as consideration plus costs incidental to the acquisition, including all other costs incurred in getting assets ready for use. The carrying amounts for such plant and equipment is not materially different from their fair value.

Depreciation Expense Property, plant and equipment is depreciated on a straight line basis so as to allocate the net cost,

less its estimated residual value, progressively over its estimated useful life to the Corporation.

Key Judgement: Straight line depreciation is used reflecting the progressive, and even, consumption of future economic benefits over their useful life to the Corporation and consolidated entity.

For the Corporation’s depreciable assets, the estimated amount to be received on disposal at the end of their useful life (residual value) is determined to be zero.

Key Estimates: For each class of depreciable asset the following useful lives are used:

2017 2016

Leasehold Improvements Lease term Lease term

Property, Plant and Equipment:

Computer equipment 3 - 10 years 3 - 10 years

Furniture, fixtures and fittings 6 - 12 years 6 - 12 years

Tourism and Events Queensland Notes to and forming part of the Financial Statements for the year ended 30 June 2017 (continued)

Note 1 – Summary of Significant Accounting Policies (continued)


Impairment All non-current physical and intangible

assets are assessed for indicators of impairment on an annual basis. If an indicator of possible impairment exists, the Corporation determines the asset’s recoverable amount. Any amount by which the asset’s carrying amount exceeds the recoverable amount is recorded as an impairment loss.

Recoverable amount is determined as the higher of the asset’s fair value less costs to sell and the depreciated replacement cost.

An impairment loss is recognised immediately in the Statements of Comprehensive Income, unless the asset is carried at a re-valued amount. When the asset is measured at the re-valued amount, the impairment loss is offset against the asset revaluation surplus of the relevant class to the extent available.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income, unless the asset is carried at a re-valued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

(k) Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions (i.e. an exit price) regardless of whether that price is directly derived from observable inputs or estimated using another valuation technique.

Observable inputs are publicly available data that are relevant to the characteristics of the assets/liabilities being valued.

Unobservable inputs are data, assumptions and judgements that are not available publicly, but are relevant to the characteristics of the assets/liabilities being valued. Significant unobservable inputs used by the Corporation include, but are not limited to, subjective adjustments made to observable data to take account of the characteristics of the Corporation assets/liabilities and assessments of physical condition and remaining useful life. Unobservable inputs are used to the extent that sufficient relevant and reliable observable inputs are not available for similar assets/liabilities.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use.

All assets and liabilities of the Corporation for which fair value is measured or disclosed in the financial statements are categorised within the following fair value hierarchy, based on the data and assumptions used in the most recent specific appraisals:

• Level 1 – represents fair value measurements that reflect unadjusted quoted market prices in active markets for identical assets and liabilities;

• Level 2 – represents fair value measurements that are substantially derived from inputs (other than quoted prices included within level 1) that are observable, either directly or indirectly; and

• Level 3 – represents fair value measurements that are substantially derived from unobservable inputs.

None of the Corporation’s valuations of assets or liabilities are eligible for categorisation into level 1 of the fair value hierarchy.

There were no transfers of assets between fair value hierarchy levels during the period.

More specific fair value information about the Corporation’s Financial Instruments is outlined in Note 1(n).

(l) Investments in controlled entities

All investments are initially recognised at cost, being the fair value of the consideration given.

After initial recognition, investments, which are classified as investments in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured, are measured at cost less amounts provided to recognise diminution in values.

(m) Payables

Trade creditors are recognised upon receipt of the goods or services ordered and are measured at the nominal amount i.e. agreed purchase/contract price, gross of all applicable trade and other discounts. Amounts owing are unsecured.

(n) Financial Instruments

Recognition Financial assets and financial liabilities are

recognised in the Statements of Financial Position when the Corporation becomes party to the contractual provisions of the financial instrument.

Classification Financial instruments are classified and

measured as follows:

• Cash and cash equivalents – held at fair value through profit or loss

• Receivables – held at amortised cost

• Other Financial Assets – Forward exchange contracts receivable – held at fair value through profit or loss

• Payables – held at amortised cost

• Other Financial Liabilities – Forward exchange contracts payable – held at fair value through profit or loss


Derivative Financial Instruments The Corporation uses derivative financial

instruments such as foreign currency contracts to hedge its risk associated with foreign currency fluctuations for general commitments in several of its international offices. Derivative financial instruments are not held for speculative purposes.

Derivatives are initially recognised at fair value on the date the derivative contract is entered into and are subsequently re-valued at the reporting date in line with market fluctuations. The fair value of forward exchange contracts is calculated by reference to current forward exchange rates for contracts with similar maturity profiles.

The Corporation’s derivative financial instruments do not qualify for hedge accounting. Any gains or losses arising from changes in fair value are taken directly to net profit or loss for the year.

All other disclosures relating to the measurement and financial risk management of financial instruments held by the Corporation are included in Note 17.

(o) Employee Benefits

Employer superannuation contributions and annual and long service leave entitlements are regarded as employee benefits.

Payroll tax and workers’ compensation insurance are a consequence of employing employees and are not counted in an employee’s total remuneration package. They are not employee benefits and are recognised separately as employee related expenses.

Wages, Salaries and Sick Leave Wages and salaries due but unpaid at

reporting date are recognised in the Statements of Financial Position at the current salary rates.

As the Corporation expects such liabilities to be wholly settled within 12 months of reporting date, the liabilities are recognised at undiscounted amounts.

Prior history indicates that on average, sick leave taken each reporting period is less than the entitlement accrued. This is expected to continue in future periods. Accordingly, it is unlikely that existing accumulated entitlements will be used by employees and no liability for unused sick leave entitlements is recognised. As sick leave is non-vesting, an expense is recognised for this leave as it is taken.

Annual Leave and Long Service Leave Liabilities arising in respect of annual

leave and long service leave that are expected to be settled within 12 months are measured at their nominal values.

Liabilities for annual leave and long service leave benefits that are not expected to be settled within 12 months are measured at the present value of the estimated future cash outflow to be made in respect of services provided by employees up to the reporting date. In determining the present value of future cash outflows, the interest rates attaching to government guaranteed securities, which have terms to maturity approximating the terms of the related liability, are used.

Superannuation The Corporation and its controlled entities

contribute to QSuper, the superannuation scheme for Queensland Government employees, and other superannuation funds. Contributions meet or exceed the requirements of the Superannuation Guarantee Levy and are expensed in the period in which they are paid or payable.

Those employer superannuation contributions that are paid to QSuper are paid at rates determined by the Treasurer on the advice of the State Actuary. The

Corporation’s obligation is limited to its contribution to QSuper.

The QSuper scheme has defined benefit and defined contribution categories. The liability for defined benefits is held on a whole-of-government basis and reported in those financial statements pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting.

Key Executive Management Personnel and Remuneration

Key executive management personnel and remuneration disclosures are made in accordance with section 5 of the Financial Reporting Requirements for Queensland Government Agencies issued by Queensland Treasury. Refer to Note 6 for the disclosures on key executive management personnel and remuneration.

(p) Leases

A distinction is made in the financial statements between finance leases that effectively transfer from the lessor to the lessee substantially all risks and benefits incidental to ownership, and operating leases, under which the lessor retains substantially all risks and benefits.

Where a non-current physical asset is acquired by means of a finance lease, the asset is recognised at the lower of the fair value of the leased property and the present value of the minimum lease payments. The lease liability is recognised at the same amount.

Lease payments are allocated between the principal component of the lease liability and the interest expense.

Operating lease payments are representative of the pattern of benefits derived from the leased assets and are expensed in the periods in which they are incurred on a straight line basis. Incentives




received on entering into operating leases are recognised as liabilities. Lease payments are allocated between rental expense and reduction of the liability.

Operating leases are entered into as a means of acquiring access to office accommodation and storage facilities. Lease terms extend over a period of 1 to 5 years. The Corporation has no option to purchase the leased item at the conclusion of the lease although the lease provides for a right of renewal at which time the lease terms are renegotiated.

Operating lease rental expenses comprises the minimum lease payments payable under operating lease contracts. Lease payments are generally fixed, but with inflation escalation clauses on which contingent rentals are determined.

(q) Provisions

Provisions are recorded when the Corporation has a present obligation, either legal or constructive as a result of a past event. They are recognised at the amount expected at reporting date to settle the obligation in a future period. Where the settlement of the obligation is expected after 12 or more months, the obligation is discounted to the present value using an appropriate discount rate.

(r) Taxation

The Corporation is a State body as defined under the Income Tax Assessment Act 1936 and is exempt from Commonwealth taxation with the exception of Fringe Benefits Tax (FBT) and Goods and Services Tax (GST).

The Corporation’s controlled entities are exempt from income tax under Division 50 of the Income Tax Assessment Act 1997 and are exempt from Commonwealth taxation with the exception of FBT and GST.

GST credits receivable from and GST payable to the ATO, are recognised (refer to Note 9).

(s) Contributed Equity

Non-reciprocal transfers of assets and liabilities between wholly-owned Queensland State Public Sector entities are adjusted to Contributed Equity in accordance with Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities.

(t) Accounting Estimates and Judgement

The preparation of financial statements necessarily requires the determination and use of certain critical accounting estimates, assumptions, and management judgements that have that potential to cause a material adjustment to the carrying amount of assets and liabilities within the next financial year. Such estimates, judgements and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in future periods as relevant.

Estimates and assumptions that have a potential significant effect are outlined in the following financial statement note:

• Accrued Employee Benefits – Note 13

(u) First Year Application of New Accounting Standards or Change in Accounting Policy

The Corporation did not voluntarily change any of its accounting policies during 2016-17.

No Australian Accounting Standards have been early adopted for 2016-17.

The only Australian Accounting Standard that became effective for the first time in 2016-17 is AASB124 Related Party Disclosures. The standard requires note


disclosures about relationships between a parent entity and its controlled entities, key management personnel (KMP) remuneration expenses and other related party transactions, and does not impact on financial statement line items. As Queensland Treasury already required disclosure of KMP remuneration expenses, AASB 124 had minimal impact on the Corporation’s KMP disclosures compared to 2015-16 (refer to Note 6). Material related party transactions for 2016-17 are disclosed in Note 18. No comparative information about related party transactions is required in respect of 2015-16. The relationship between the Corporation and its controlled entities is already outlined in Note 18.

No new Australian Accounting Standards effective for the first time in 2016-17 had any material impact on this financial report.

(v) Future Impact of Accounting Standards Not Yet Effective

At the date of authorisation of the financial report, the expected impacts of new or amended Australian Accounting Standards issued but with future commencement dates are set out below:

AASB 2016-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 107

As from the Corporation’s financial statements for 2017-18, this standard will require additional disclosures to enable the reader to evaluate changes in liabilities arising from financing activities. These disclosures will include both cash flows and non-cash changes between the opening and closing balance of the relevant liabilities and be disclosed by way of a reconciliation in the notes to the Statement of Cash Flows. The Corporation is yet to adopt this amendment however at this stage does not expect a significant impact on its present accounting practices.

AASB 1058 Income of Not-for-Profit Entities and AASB 15 Revenue from Contracts with Customers

This Standard will become effective from reporting periods beginning on or after 1 January 2019 and contains much more detailed requirements for the accounting for certain types of revenue from cooperative partners. Depending on the specific contractual terms, the new requirements may potentially result in a change to the timing of revenue from cooperative activities, such that some revenue may need to be deferred to a later reporting period to the extent that the Corporation has received cash but has not met its associated obligations (such amounts would be reported as a liability (unearned revenue). The Corporation is yet to complete its analysis of current cooperative arrangements, but at this stage does not expect a significant impact on its present accounting practices.

Grants that are not enforceable and/or not sufficiently specific will not qualify for deferral and continue to be recognised as revenue as soon as they are controlled. The Corporation receives several grants for which there are no sufficiently specific performance obligations. These grants are expected to continue being recognised as revenue upfront assuming no changes to the current grant arrangements.

AASB 9 Financial Instruments and AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014)

These Standards will become effective from reporting periods beginning on or after 1 January 2019. The main impacts of these standards on the Corporation are that they will change the requirements for the classification, measurement, impairment and disclosures associated with the Corporation’s financial assets. AASB 9 will introduce different criteria for whether financial assets can be measured at amortised cost or fair value.

The Corporation has commenced reviewing the measurement of its financial assets against the new AASB 9 classification and measurement requirements. However, as the classification of financial assets at the date of initial application of AASB 9 will depend on the facts and circumstances existing at that date, the Corporation’s conclusions will not be confirmed until closer to that time. At this stage, and assuming no change in the types of transactions the Corporation enters into, all of the Corporation’s financial assets are expected to be required to be measured at fair value (instead of the measurement classifications presently used in Note 17). In the case of the Corporation’s current receivables, as they are short-term in nature, the carrying amount is expected to be a reasonable approximation of fair value. Changes in the fair value of those assets will be reflected in the Corporation’s operating result.

Another impact of AASB 9 relates to calculating impairment losses for the Corporation’s receivables. Assuming no substantial change in the nature of the Corporation’s receivables, as they don’t include a significant financing component, impairment losses will be determined according to the amount of lifetime expected credit losses. On initial adoption of AASB 9, the Corporation will need to determine the expected credit losses for its receivables by comparing the credit risk at that time to the credit risk that existed when those receivables were initially recognised.

The Corporation will not need to restate comparative figures for financial instruments on adopting AASB 9 as from 2019-20. However, changed disclosure requirements will apply from that time. A number of one-off disclosures will be required in the 2019-20 financial statements to explain the impact of adopting AASB 9. Assuming




no change in the types of financial instruments that the Corporation enters into, the most likely ongoing disclosure impacts are expected to relate to the credit risk of financial assets subject to impairment.

AASB 16 Leases

This Standard will become effective for reporting periods beginning on or after 1 January 2019. When applied, the standard supersedes AASB 117 Leases, AASB Interpretation 4 Determining whether an Arrangement contains a Lease, AASB Interpretation 115 Operating Leases – Incentives and AASB Interpretation 127 Evaluating the Substance of Transactions Involving the Legal Form of a Lease.

Impact for Lessees

Unlike AASB 117 Leases, AASB 16 introduces a single lease accounting model for lessees. Lessees will be required to recognise a right-of-use asset (representing rights to use the underlying leased asset) and a liability (representing the obligation to make lease payments) for all leases with a term of more than 12 months, unless the underlying assets are of low value.

In effect, the majority of operating leases (as defined by the current AASB 117) will be reported on the Statements of Financial Position under AASB 16. There will be a significant increase in assets and liabilities for agencies that lease assets. The impact on the reported assets and liabilities would be largely in proportion to the scale of the Corporation’s leasing activities.

The right-of-use asset will be initially recognised at cost, consisting of the initial amount of the associated lease liability, plus any lease payments made to the lessor at or before the commencement date, less any lease incentive received, the initial estimate

of restoration costs and any initial direct costs incurred by the lessee. The right-of-use asset will give rise to a depreciation expense.

The lease liability will be initially recognised at an amount equal to the present value of the lease payments during the lease term that are not yet paid. Current operating lease rental payments will no longer be expensed in the Statement of Comprehensive Income. They will be apportioned between a reduction in the recognised lease liability and the implicit finance charge (the effective rate of interest) in the lease. The finance cost will also be recognised as an expense.

AASB 16 allows a ‘cumulative approach’ rather than full retrospective application to recognising existing operating leases. If a lessee chooses to apply the ‘cumulative approach’, it does not need to restate comparative information. Instead, the cumulative effect of applying the standard is recognised as an adjustment to the opening balance of accumulated surplus (or other component of equity, as appropriate) at the date of initial application. The Corporation will await further guidance from Queensland Treasury on the transitional accounting method to be applied.

The Corporation has not yet quantified the impact on the Statement of Comprehensive Income or the Statement of Financial Position of applying AASB 16 to its current operating leases, including the extent of additional disclosure required.



Consolidated Parent

2017 $000

2016 $000

2017 $000

2016 $000

Note 2 – Revenue

Grants and Contributions

Department of Tourism, Major Events, Small Business and the Commonwealth Games

107,594 101,642 107,594 101,642

Department of the Premier and Cabinet 65 245 65 245

Department of Education and Training 8 8 8 8

107,667 101,895 107,667 101,895

Cooperative Income

Cooperative marketing income 7,026 7,384 7,162 7,479

Cooperative event income 736 930 736 930

7,762 8,314 7,898 8,409

Other Revenue

Registration income 3,702 2,328 - -

Interest 205 242 152 197

Rent received 174 43 174 43

Other 2,687 2,734 752 979

6,768 5,347 1,078 1,219

Consolidated Parent

2017 $000

2016 $000

2017 $000

2016 $000

Note 3 – Marketing, Development and Events Support Expenses

Domestic marketing activity 27,538 24,867 27,538 24,867

International marketing activity 16,515 16,777 16,515 16,777

Event staging and event marketing, assessment and support activity

6,990 6,972 3,088 3,928

Research activity 1,348 1,539 1,348 1,539

52,391 50,155 48,489 47,111

These figures do not include the salaries and wages of marketing, development, research or event staging and promotion staff or event funding grant payments.


Consolidated Parent

2017 $000

2016 $000

2017 $000

2016 $000

Note 4 – Grant Payments

Event funding 36,165 32,267 36,765 32,867

Regional Tourism Organisation grant payments 7,000 7,067 7,000 7,067

43,165 39,334 43,765 39,934

Note 5 – Employee Expenses

Consolidated Parent

2017 $000

2016 $000

2017 $000

2016 $000

Employee Benefits

Wages and salaries 15,314 14,408 2,055 1,656

Annual leave expense 1,461 1,415 151 178

Long service leave expense 420 321 20 13

Employer superannuation contributions 1,600 1,549 49 47

Employing office - - 15,736 15,204

Employee Related Expenses

Workers compensation 66 89 6 10

Payroll tax 790 743 21 22

Other employee related expenses 115 117 115 117

19,766 18,642 18,153 17,247

2017 No.

2016 No.

2017 No.

2016 No.

Full-Time Equivalent Employees: 157 150 19 16



Note 6 – Key Management Personnel and Remuneration Expenses

(a) Key Management Personnel

As from 2016-17, the Corporation’s responsible Minister is identified as part of the key management personnel, consistent with additional guidance included in the revised version of AASB 124 Related Party Disclosures. The Minister is the Honourable Kate Jones MP, Minister for Education and Minister for Tourism, Major Events and the Commonwealth Games.

The following details for non-ministerial, non-board member key management personnel include those positions that had authority and responsibility for planning, directing and controlling the activities of the Corporation during 2016-17 and 2015-16. Further information on these positions can be found in the body of the Annual Report under the section relating to Executive Management.

Position Responsibilities

Chief Executive Officer* Overall efficient, effective and economical administration and operation of the Corporation in accordance with the Board’s priorities.

Group Executive Global Marketing**

Leading the marketing group to develop and deliver global consumer-driven destination marketing, targeting a balanced portfolio of markets, in line with the destination tourism framework and the TEQ's Global Marketing Strategy 2025.

Group Executive Corporate Services**

Leading the Corporation’s operational, strategic and financial activities. The Group Executive Corporate Services is also the Chief Financial Officer and is responsible for managing the financial risks of the Corporation in addition to financial planning, record keeping and financial reporting to the CEO and Board of Directors

Group Executive Corporate Affairs**

Leading the Corporation’s corporate affairs and corporate communications to strategically enhance the Corporation’s relationships with key stakeholders.

Group Executive Events**

Responsible for delivering a world-class calendar of events for Queensland, guided by the Events Strategy 2025, and optimising the value of Queensland’s event calendar by leveraging the competitive advantage provided by Queensland’s destinations.

Group Executive Destinations & Global Partnerships**

Responsible for holistic strategic global partnerships and international operations. The Group Executive Destinations and Global Partnerships also leads relationships between the Corporation and the Regional Tourism Organisations, DTESB and QTIC to deliver strategies and plans under the destination tourism planning framework.

* Appointed Authority – Governor in Council ** Appointed Authority – Board of Directors


(b) Remuneration Expenses

Ministerial remuneration entitlements are outlined in the Legislative Assembly of Queensland’s Members’ Remuneration handbook. The Corporation does not bear any cost of remuneration of Ministers. The majority of Ministerial entitlements are paid by the Legislative Assembly, with the remaining entitlements being provided the Ministerial Services Branch within the Department of the Premier and Cabinet. As all Ministers are reported as KMP of the Queensland Government, aggregate remuneration expenses for all Ministers is disclosed in the Queensland General Government and Whole of Government Consolidated Financial Statements as from 2016-17, which are published as part of Queensland Treasury’s Report on State Finances.

Remuneration policy for the Corporation’s executive is set by the Board’s Audit and Remuneration Committee. The remuneration and other terms of employment for the key executive management personnel are specified in employment contracts.

The following disclosures focus on the expenses incurred by the Corporation during the respective reporting periods that are attributable to key management positions. Therefore, the amounts disclosed reflect expenses recognised in the Statement of Comprehensive Income.

Remuneration for executives comprise of the following components:

• Short term employee expenses which include:

o Base salary, allowances and leave entitlements paid and provided for the entire year or for that part of the year during which the employee was a key management person; and

o Non-monetary benefits – provision of benefits together with fringe benefits tax applicable to the benefit.

• Long term employee expenses include amounts expensed in respect of long service leave entitlements earned.

• Post-employment expenses include amounts expensed in respect of employer superannuation obligations.

• Termination benefits are not provided for within individual contracts of employment. Contracts of employment provide only for notice periods or payment in lieu of notice on termination, regardless of the reason for termination.

• Performance bonuses are not paid under the contracts in place.

Total fixed remuneration is calculated on a ‘total cost’ basis and includes the base and non-monetary benefits, long term employee benefits and post-employment benefits.



Note 6 – Key Management Personnel and Remuneration Expenses (continued)

1 July 2016 – 30 June 2017

Position (date resigned if applicable)

Short Term Employee ExpensesLong Term Employee Expenses

Post-Employment

Expenses

Termination Benefits

Total Expenses

Monetary Expenses

$000

Non-Monetary Benefits

$000$000 $000 $000 $000

Chief Executive Officer 300 6 9 57 - 372

Group Executive Global Marketing (to 20 March 2017)

232 6 (33) 18 200 423

Group Executive Corporate Services 228 10 7 39 - 284

Group Executive Corporate Affairs 184 33 6 17 - 240

Group Executive Events 267 - 7 35 - 309

Group Executive Destinations and Global Partnerships

248 - 7 27 - 282

1 July 2015 – 30 June 2016

Position (date resigned if applicable)

Short Term Employee ExpensesLong Term Employee Expenses

Post-Employment

Expenses

Termination Benefits

Total Expenses

Monetary Expenses

$000

Non-Monetary Benefits

$000$000 $000 $000 $000

Chief Executive Officer 275 11 8 55 - 349

Group Executive Global Marketing 224 28 7 23 - 282

Group Executive Corporate Services (from 19 October 2015)

153 7 - 24 - 184

Group Executive Corporate Affairs 171 29 - 16 - 216

Group Executive Events 255 - - 33 - 288

Group Executive Destinations and Global Partnerships

235 - - 35 - 270


Consolidated Parent

2017 $000

2016 $000

2017 $000

2016 $000

Note 7 – Other Expenses

Lease expenses 2,167 2,085 2,003 1,914

Telephone, fax and postage 226 273 206 261

Computer charges 1,147 1,408 1,107 1,386

Contractors and consultants’ fees 610 1,083 610 1,083

Travel and accommodation expenses 92 131 74 117

Printing, stationery and office consumables 148 173 125 152

Staff training 242 343 241 342

Rates, electricity and other charges 46 39 46 39

Bad and doubtful debts 3 12 3 12

Insurance and legal fees 159 179 150 171

External audit fees* 117 109 94 91

Fringe Benefits Tax 80 58 77 55

Repairs and maintenance 55 39 55 39

Bank fees and charges 130 116 69 70

Subscriptions 60 59 58 57

Entertainment 19 18 19 18

Loss on foreign exchange - realised 424 228 424 228

Loss on disposal of fixed assets 17 - 17 -

Other 528 846 448 787

6,270 7,199 5,826 6,822

Audit Fees

*Total audit fees quoted by the Queensland Audit Office relating to the 2016-17 financial year (both the Corporation and its controlled entities), are $117,000 exclusive of GST (2016: $114,450).

Note 8 – Operating Result from Continuing Operations

The operating result from continuing operations for the parent entity is nil. The operating result of the controlled entities are disclosed in Note 20.



Consolidated Parent

2017 $000

2016 $000

2017 $000

2016 $000

Note 9 – Receivables

Trade debtors 427 631 254 390

Less: Allowance for impairment loss - - - -

427 631 254 390

Grant receivable 338 942 338 942

GST receivable 1,223 1,413 1,223 1,413

GST payable (572) (112) (572) (112)

Accrued revenue 54 129 54 129

Other receivables 248 327 248 327

1,291 2,699 1,291 2,699

1,718 3,330 1,545 3,089

Consolidated Parent

2017 $000

2016 $000

2017 $000

2016 $000

Note 10 – Other Financial Assets

Current

Forward exchange contracts receivable 6,206 1,018 6,206 1,018

Forward exchange contracts payable (6,206) (976) (6,206) (976)

- 42 - 42

Non-Current

Forward exchange contracts receivable 1,054 - 1,054 -

Forward exchange contracts payable (1,054) - (1,054) -

- - - -

- 42 - 42

The Corporation intends to realise the receivable and settle the liability relating to forward exchange contracts simultaneously therefore the receivable and payable are offset and the net amount presented in the Statements of Financial Position.


Consolidated Parent

2017 $000

2016 $000

2017 $000

2016 $000

Note 11 – Property, Plant and Equipment

Leasehold improvements

At cost 1,740 1,764 1,740 1,764

Less: Accumulated depreciation (1,212) (821) (1,212) (821)

528 943 528 943

Plant and equipment

At cost 402 812 338 689

Less: Accumulated depreciation (351) (747) (288) (627)

51 65 50 62

Total Property, plant and equipment

At cost 2,142 2,576 2,078 2,453

Less: Accumulated depreciation (1,563) (1,568) (1,500) (1,448)

579 1,008 578 1,005

Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the current financial year are set out below.

Leasehold improvements Plant and equipment Total

2017 $000

2016 $000

2017 $000

2016 $000

2017 $000

2016 $000

Carrying Amount at 1 July 943 1,323 65 36 1,008 1,359

Additions - 16 - 45 - 61

Disposals (17) - - - (17) -

Depreciation expense (398) (396) (14) (16) (412) (412)

Carrying amount at 30 June 528 943 51 65 579 1,008



Note 11 – Property, Plant and Equipment (continued)

Leasehold improvements Plant and equipment Total

2017 $000

2016 $000

2017 $000

2016 $000

2017 $000

2016 $000

Carrying Amount at 1 July 943 1,323 62 30 1,005 1,353

Additions - 16 - 45 - 61

Disposals (17) - - - (17) -

Depreciation expense (398) (396) (12) (13) (410) (409)

Carrying amount at 30 June 528 943 50 62 578 1,005

Consolidated Parent

2017 $000

2016 $000

2017 $000

2016 $000

Note 12 – Payables

Trade creditors 452 516 3,434 3,533

Accrued expenses 3,604 2,581 3,058 2,097

Unearned revenue 2,249 2,940 41 204

Other creditors 277 490 112 118

6,582 6,527 6,645 5,952

The Corporation has a MasterCard credit facility with Westpac to a limit of $1,196,500 (2016: $1,500,000). At 30 June 2017, the Corporation had utilised approximately $17,245 of this facility (2016: $23,007).


Consolidated Parent

Note 13 – Accrued Employee Benefits 2017 $000

2016 $000

2017 $000

2016 $000

Current

Annual leave 1,634 1,522 264 260

Long service leave 1,503 1,407 190 170

Wages outstanding 315 310 14 8

3,452 3,239 468 438

Non-Current

Long service leave 535 510 - -

535 510 - -

3,987 3,749 468 438

Current Non-current

Annual leave $000

Long service leave $000


Opening balance at 1 July 2016 1,522 1,407 510

Increase/(decrease) in provision 1,492 394 25

Reductions in provision as a result of payments

(1,380) (298) -

Closing balance at 30 June 2017 1,634 1,503 535

Movements in accrued employee benefits Consolidated

Parent

Current Non-current

Annual leave $000



Opening balance at 1 July 2016 260 170 -

Increase/(decrease) in provision 161 20 -

Reductions in provision as a result of payments

(157) - -

Closing balance at 30 June 2017 264 190 - -


Consolidated Parent

Note 14 – Other Liabilities 2017 $000

2016 $000

2017 $000

2016 $000

Current

Lease incentive 31 31 31 31

Rent payable liability 127 66 127 66

158 97 158 97

Non-Current

Lease incentive 10 42 10 42

Rent payable liability 50 176 50 176

60 218 60 218

218 315 218 315


Consolidated Parent

Note 15 – Reconciliation of Operating Result to Net Cash from Operating Activities

2017 $000

2016 $000

2017 $000

2016 $000

Cash from Operating Activities

Operating surplus/(deficit) 193 (186) - (664)

Depreciation and amortisation expense 412 412 410 409

Loss on disposal of non-current assets 17 - 17 -

Unrealised (gain) / loss on foreign exchange - 39 - 39

Impairment of investments - - - 664

Changes in assets and liabilities:

(Increase) / decrease in receivables 1,612 903 1,544 926

(Increase) / decrease in prepayments (235) 64 (258) 83

Increase / (decrease) in payables 55 (1,272) 693 (1,543)

Increase / (decrease) in accrued employee benefits 238 419 30 65

Increase / (decrease) in other provisions 20 - - -

Increase / (decrease) in other liabilities (97) (37) (97) (37)

Net cash provided by / (used in) operating activities

2,215 342 2,339 (58)


Note 16 – Commitments for Expenditure

Lease Expenditure Commitments

Expenditure Commitments

Consolidated Parent

2017 $000

2016 $000

2017 $000

2016 $000

Non-Cancellable Operating Lease

Commitments under operating leases at reporting date (inclusive of non-recoverable GST input tax credits) are payable:

Not later than one year 1,813 1,685 1,709 1,575

Later than one year but not later than five years 768 2,357 582 2,008

2,581 4,042 2,291 3,583

Operating leases are entered into as a means of acquiring access to office accommodation and storage facilities. Lease payments are generally fixed, but with inflation escalation clauses on which contingent rentals are determined.

Material expenditure commitments (inclusive of non-recoverable GST input tax credits) contracted for at reporting date but not recognised in the accounts are as follows:

Consolidated Parent

2017 $000

2016 $000

2017 $000

2016 $000

Payable:

Not later than one year 26,737 28,656 26,662 28,481

Later than one year but not later than five years 33,583 24,249 33,579 24,179

Later than five years 30 3,034 30 3,034

60,350 55,939 60,271 55,694



Note 17 – Financial Instruments

(a) Categorisation of Financial Instruments

The Corporation has the following categories of financial assets and financial liabilities:

Consolidated Parent

Category Note2017

$0002016

$0002017

$0002016

$000

Financial Assets

Cash and cash equivalents 9,838 7,581 6,407 4,026

Receivables 9 1,718 3,330 1,545 3,089

Other financial assets – Forward exchange contracts 10 - 42 - 42

Total 11,556 10,953 7,952 7,157

Financial Liabilities

Payables 12 6,582 6,527 6,645 5,952

Total 6,582 6,527 6,645 5,952

Financial assets and financial liabilities are presented separately from each other except for forward exchange contracts receivable and payable where offsetting has been applied. Refer to Note 10 Other Financial Assets for details of the gross forward exchange contracts receivable and payable.

(b) Financial Risk Management

The Corporation’s activities expose it to a variety of financial risks – credit risk, foreign exchange risk, and liquidity risk. Financial risk management is implemented pursuant to Government and Corporation policy covering specific areas such as mitigating foreign exchange risk and use of derivative financial instruments. These policies focus on the unpredictability of financial markets and seek to minimise potential adverse effects on the financial performance of the Corporation.

The Corporation measures risk exposure using a variety of methods as follows:

Risk Exposure Measurement Method

Credit risk Ageing analysis, earnings at risk

Foreign exchange risk Foreign exchange sensitivity analysis

Liquidity risk Cash flow management


(c) Credit Risk

Credit risk exposure refers to a situation where the Corporation may incur financial loss as a result of another party to a financial instrument failing to discharge their obligation.

The Corporation aims to reduce the exposure to credit default by ensuring it invests in secure assets and monitors all funds owed on a timely basis. Exposure to credit risk is monitored on an on-going basis.

The following table represents the Corporation’s maximum exposure to credit risk based on contractual amounts net of any allowances:

Consolidated Parent

Maximum Exposure to Credit Risk Category Note

2017 $000

2016 $000

2017 $000

2016 $000

Financial Assets $000 $000

Receivables 9 1,718 3,330 1,545 3,089

1,718 3,330 1,545 3,089

The maximum exposure to credit risk at balance date in relation to each class of recognised financial asset is the gross carrying amount inclusive of any allowance for impairment. The method for calculating any allowance for impairment is based on the age of the financial instrument. Any party with an outstanding obligation greater than 60 days and where there is objective evidence the Corporation will not be able to collect amounts due are included in the allowance for impairment, with the exception of grant monies from Queensland Government departments.

No significant concentration of credit risk has been identified as exposure is spread over a large number of counterparties and customers. No financial assets have had their terms renegotiated so as to prevent them from being past due or impaired, and are stated at the carrying amounts as indicated.

The following tables represent the Corporation’s financial assets including those that are not overdue and those that are past due but not impaired and those that are impaired:

Consolidated

Financial Assets as at 30 June 2017

Not Overdue $000

Less than 30 Days

$000

30 to 60 Days $000

61 to 90 Days $000

More than 90 Days

$000

Total $000

Receivables (not impaired)

1,453 211 54 - - 1,718

Receivables (impaired) - - - - - -

Allowance for impairment - - - - - -

1,453 211 54 - - 1,718


Not Overdue $000

Less than 30 Days

$000

30 to 60 Days $000

61 to 90 Days $000

More than 90 Days

$000

Total $000


2,939 184 207 - - 3,330



2,939 184 207 - - 3,330



Note 17 – Financial Instruments

(c) Credit Risk (continued)

Parent


Not Overdue $000

Less than 30 Days

$000

30 to 60 Days

$000

61 to 90 Days

$000

More than 90 Days

$000

Total $000


1,291 211 43 - - 1,545



1,291 211 43 - - 1,545


Not Overdue $000

Less than 30 Days

$000

30 to 60 Days $000

61 to 90 Days $000

More than 90 Days

$000

Total $000


2,699 184 206 - - 3,089



2,699 184 206 - - 3,089

Movements in Allowance for Impairment

Consolidated Parent

2017 $000

2016 $000

2017 $000

2016 $000

Balance at beginning of year - 14 - 14

Amounts recovered during the year - (14) - (14)

Increase in allowance - - - -

Balance at end of year - - - -

(d) Foreign Exchange Risk

Foreign exchange risk arises when future transactions are denominated in non-Australian currency.

The Corporation operates nationally and internationally and is exposed to foreign exchange risk arising from currency exposures to the Euro, British Pound, US Dollar, Hong Kong Dollar, Japanese Yen, New Zealand Dollar, Singapore Dollar, Taiwan Dollar, Indian Rupee and South-Korean Won. The Corporation enters into forward foreign exchange contracts where available under which it is obliged to receive foreign currency at set exchange rates and pay a predetermined amount of Australian Dollars.

The Corporation’s risk management policy is to hedge between 50% and 100% of committed and forecast purchases denominated in foreign currency where settlement is within 12 months and up to 100% of committed purchases denominated in foreign currency where settlement is greater than 12 months.


(d) Foreign Exchange Risk (continued)

The fair value of forward exchange contracts held at 30 June 2017 is made up of the following (totalled per currency):

Currency

Contract Amount Financial Asset

(Gross) $A 000

Contract Amount Financial Liability

(Gross) $A 000

Contract Amount Financial Asset

(Net) $A 000

Great British Pounds 1,194 1,194 -

Euro 1,566 1,566 -

US Dollar 1,194 1,194 -

Singapore Dollar 895 895 -

Hong Kong Dollar 955 955 -

Japan Yen 860 860 -

New Zealand Dollar 596 596 -

7,260 7,260 -

The Corporation intends to realise the receivable and settle the liability relating to forward exchange contracts simultaneously therefore the receivable and payable are offset and the net amount presented in the Statements of Financial Position.

The following exchange rate sensitivity analysis depicts the outcome to profit and loss if exchange rates change by +/- 1% from the year-end rates applicable to the Corporation’s financial assets and liabilities:

Exchange Rate Risk

Carrying Amount-1%

Profit-1%

Equity+1%

Profit+1%

Equity

2017 $000

2016 $000

2017 $000

2016 $000

2017 $000

2016 $000

2017 $000

2016 $000

2017 $000

2016 $000

Forward exchange contracts receivable

- 42 - - - - - - - -

(e) Liquidity Risk

Liquidity risk refers to the situation where the Corporation may encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset.

The Corporation manages its exposure to liquidity risk by ensuring sufficient funds are available to meet employee and supplier obligations at all times. This is achieved by ensuring minimum levels of cash are held within the various bank accounts to match the expected duration of the various employee and supplier liabilities. All payables are payable within one year.

(f) Fair Value

The forward exchange contracts used for hedging have been classified as Level 2 financial instruments.

The fair value of cash and cash equivalents and non-interest bearing monetary financial assets and financial liabilities approximate their carrying amounts.

The fair value of other monetary financial assets and financial liabilities is based on market prices where a market exists, or is determined by discounting expected future cash flows by the current interest rate for financial assets and liabilities with similar risk profiles.



Note 17 – Financial Instruments (continued)

The fair value of trade receivables and payables is assumed to approximate the value of the original transaction, less any allowance for impairment.

Note 18 – Related Party Disclosures

Transactions with the Minister and Minister Related Entities

Hon Kate Jones is the Minister for the Department of Tourism, Major Events, Small Business and the Commonwealth Games. Grants from the Department to the Corporation are disclosed in Note 2.

Transactions with Board members and Board member related entities

In the ordinary course of business conducted under normal terms and conditions, Tourism and Events Queensland has dealt with the following Board members and Board member related entities.

(a) Mr Bob East is a Director of Tourism Australian and the Gold Coast Football Club and is the Chief Executive Officer of and holds shares in the Mantra Group. Net transactions between the Corporation and Tourism Australia during the year totalled a net receipt of $819,688 (GST inclusive). Transactions included receipts and payments relating to co-operative marketing campaigns and events activity and joint rental tenancy payments. Net transactions between the Corporation and the Mantra Group during the year totalled a net payment of $36,317 (GST inclusive). Transactions related to payments for accommodation and receipts for participant fees.

(b) Ms Julieanne Alroe is the Chief Executive Officer and Managing Director of Brisbane Airport Corporation Pty Ltd. Transactions between the Corporation and Brisbane Airport Corporation during the year totalled a net payment of $59,664 (GST inclusive) relating to co-operative marketing campaign and event activities.

(c) Mr Paul Donovan is the Executive General Manager Business Development and Marketing for Queensland Airports Limited (owner and operator of the Gold Coast Airport) and Chairman of Gold Coast Tourism and Canford Group Advisory Committee. Net transactions between the Corporation and Gold Coast Tourism during the year totalled a net payment of $1,581,006 (GST inclusive). Transactions included Tourism Network funding, Business Events Bureau funding, payments for staff secondment and receipts relating to stand-alone advertising booked through the Corporation’s co-operative marketing services provider and co-operative marketing airline campaigns.

(d) Mr Gary Smith is the Chairman of the Flight Centre Travel Group Ltd and Tourism Leisure Corporation Pty Ltd (which holds interests in a number of businesses including Kingfisher Bay Resort, Eurong Beach Resort and Fraser Explorer Tours). Net transactions between the Corporation and the Flight Centre Travel Group for the year totalled a net payment of $1,104,001 (GST inclusive). Transactions primarily related to strategic partnership joint marketing activities. Net transactions between the Corporation and Kingfisher Bay Resort for the year totalled a net receipt of $33,732 (GST inclusive) relating to receipts for marketing initiatives.

(e) Professor Judith McLean is the Queensland Performing Arts Centre’s Scholar in Residence. Net transactions between the Corporation and the Queensland Performing Arts Trust for the year totalled a net payment of $605,133 (GST inclusive) relating primarily to event funding instalments.

(f) Ms Anna Guillan is a Director of Tourism Australia and Regional Director Sales and Marketing Australia & New Zealand Kerzner International (managers during the year of One&Only Hayman Island owned by Mulpha Australia). Net transactions between the Corporation and Tourism Australia for the year totalled a net receipt of $819,688 (GST inclusive). Transactions included receipts and payments relating to co-operative marketing campaigns and events activity and joint rental tenancy payments.


Note 18 – Related Party Disclosures (continued)

Transactions with Board members and Board member related entities (continued)

(g) Mr Damien Walker is a Board Member of the Gold Coast 2018 Commonwealth Games Corporation (GOLDOC). Net transactions between the Corporation and GOLDOC totalled a net payment of $727,582 (GST Inclusive). Transactions primarily related to a marketing agreement and merchandise payments.

(h) Ms Karen Hanna-Miller was a Board Member of Queensland Music Festival during the 2016-17 financial year. Net transactions between the Corporation and Queensland Music Festival during the year totalled a net payment of $44,000 (GST inclusive) for partnership and destination and events program payments.

(i) Mr James Dixon is a member of the Queensland Tourism Industry Council (QTIC)’s Transformation Committee and Co-Managing Director of Down Under Tours Australia. Net transactions between the Corporation and QTIC during the 2016-17 financial year totalled a net payment of $461,570 (GST inclusive) for partnership agreements. There were no transactions between the Corporation and Down Under Tours Australia during 8 to 30 June 2017.

(j) Mr Michael Healy was a Director of Sales and Marketing at Quicksilver Group during the 2016-17 financial year. Net transactions between the Corporation and Quicksilver Group during the year totalled a net receipt of $17,380 (GST inclusive) relating to receipts for marketing initiatives.

Transactions with Controlled Entities

In the ordinary course of business conducted under normal terms and conditions, Tourism and Events Queensland dealt with the Tourism and Events Queensland Employing Office and Gold Coast Events Management Ltd.

The parent entity provided funding to:

• Gold Coast Events Management Ltd for the operation and management of the Gold Coast Airport Marathon and Pan Pacific Masters Games in the amount of $660,000 (GST inclusive) for the year ended 30 June 2017; and

• Tourism and Events Queensland Employing Office for the provision of employment services in the amount of $15,736,957 for the year ended 30 June 2017.

The parent entity recognised co-operative marketing income of $144,778 (GST inclusive) from Gold Coast Events Management Ltd for the year ended 30 June 2017 relating to joint marketing campaigns.



Note 19 – Board Remuneration

The role of the Board is to provide strategic direction and effective governance over the Corporation’s affairs to ensure it discharges its legislated responsibilities while regarding the interests of all stakeholders including the tourism industry, employees, suppliers and local communities. Further information on the Board can be found in the body of the Annual Report under the section relating to Corporate Governance.

Position Name

Chairman* Bob East

Deputy Chairman* Julieanne Alroe

Board Member* Paul Donovan

Board Member* Gary Smith

Board Member* Dr Judith McLean

Board Member* Anna Guillan

Board Member* Karen Hanna-Miller

Board Member* Michael Healy, ceased 21 March 2017

Board Member* James Dixon, appointed 8 June 2017

Board Member** Director-General Tourism, Major Events, Small Business and the Commonwealth Games

* Appointment authority – Governor in council ** Appointment Authority – Permanent member under Tourism and Events Queensland Act 2012


Note 19 – Board Remuneration (continued)

Remuneration policy for the Corporation’s Board is set by the Governor in Council as provided for under the Tourism and Events Queensland Act 2012. Remuneration for Board members comprises the following components:

• Short term employee expenses which include board member fees and mileage allowance

• Post-employment expenses which include superannuation contributions

1 July 2016 – 30 June 2017

Position NameShort Term Employee

Expenses $000Post- Employment

Expenses $000Total Expenses

$000

Chairman Bob East 35 3 38

Deputy Chairman Julieanne Alroe 10 1 11

Board member Paul Donovan 10 1 11

Board member Gary Smith 10 1 11

Board member Dr Judith McLean - 11 11

Board member Anna Guillan 10 1 11

Board member Karen Hanna-Miller 10 1 11

Board member, ceased 21 March 2017 Michael Healy 7 1 8

Board member, appointed 8 June 2017 James Dixon - - -

Board member Director-General - - -

1 July 2015 – 30 June 2016

Position NameShort Term Employee

Expenses $000Post- Employment

Expenses $000Total Expenses

$000

Chairman Bob East 32 3 35

Deputy Chairman, reappointed 3 August 2015 Julieanne Alroe 10 1 11

Board member, reappointed 3 August 2015 Paul Donovan 10 1 11

Board member, reappointed 3 August 2015 Gary Smith 10 1 11

Board member, reappointed 3 August 2015 Dr Judith McLean - 11 11

Board member, reappointed 3 August 2015 Anna Guillan 10 1 11

Board member, appointed 3 August 2015 Karen Hanna-Miller 9 1 10

Board member, appointed 3 August 2015 Michael Healy 9 1 10

Board member Director General - - -

Board member, ceased 2 August 2015 James Corvan 1 - 1

Board member, ceased 2 August 2015 Libby Marshall 1 - 1

Board member, ceased 2 August 2015 Garth Prowd OAM 1 - 1

Board member, ceased 2 August 2015 Liz Ward 1 - 1

Board member, ceased 2 August 2015 Ian Gillespie 1 - 1

Board member, ceased 2 August 2015 Alan Smith 1 - 1



Note 20 – Investments in Controlled Entities

The Corporation’s investment in controlled entities comprises the following:

Directly Controlled Entity 2017 $000

2016 $000

Tourism and Events Queensland Employing Office - -

Gold Coast Events Management Ltd - -

Total investment in directly controlled entities - -

Reconciliation of investment in controlled entities

2017 $000

2016 $000

Opening balance at 1 July - 664

Additions - -

Impairment losses - (664)

Closing balance at 30 June - -

Fair value of the Corporation’s investment in Gold Coast Events Management Ltd represents net assets at balance date. The Corporation recognised an impairment loss via the Statement of Comprehensive Income in 2016.

The following entities are controlled entities of the Corporation:

Name of Directly Controlled Entity

% Interest in Entity & Basis for Control

Purpose & Principal Activities of Entity

Total Assets Total Liabilities Total RevenueOperating

Result

2017 $000

2016 $000

2017 $000

2016 $000

2017 $000

2016 $000

2017 $000

2016 $000

Tourism and Events Queensland Employing Office

100% The Tourism and Events Queensland Employing Office is established as a Statutory Body under the Tourism and Events Queensland Act 2012

The Tourism and Events Queensland Employing Office’s objective is to provide employment services to the Corporation.

3,274 3,134 3,274 3,134 15,736 15,204 - -

Gold Coast Events Management Ltd

The Corporation is the sole member of the company limited by guarantee

Gold Coast Events Management Ltd trades as Events Management Queensland and operates the Gold Coast Airport Marathon and the Pan Pacific Masters Games.

3,774 3,990 3,536 3,946 6,289 4,728 193 (187)

Controlled Entities Comprising the Economic Entity The consolidated financial statements of the economic entity comprise the transactions and balances of the Corporation and the directly controlled entities listed above.

The auditor for the Corporation and all controlled entities is the Auditor-General of Queensland.


Note 21 – Contingencies

As at 30 June 2017, potential payments in accordance with contractual commitments totalled a maximum of $8.6 million payable over five years.

Note 22 – Events Occurring after Balance Date

There were no events that occurred after balance date which would materially affect the financial statements or disclosures.

Note 23 – Budget vs Actual Comparison

This note discloses the Corporation’s original published budgeted figures for 2016-17 compared to actual results, with explanations of major variances, in respect of the Corporation’s Statements of Comprehensive Income, Statements of Financial Position and Statements of Cash Flows.

Budget to Actual Comparison - Statement of Comprehensive Income

Parent

Variance Notes

Original Budget 2017

$000

Actual 2017

$000

Variance $000

Income from Continuing Operations

Grants and other contributions 1 102,736 107,667 4,931

Cooperative income 2 10,000 7,898 (2,102)

Other revenue 3 600 1,078 478

Total Income from Continuing Operations 113,336 116,643 3,307

Expenses from Continuing Operations

Marketing, development and events support expenses

4 49,447 48,489 (958)

Grant payments 4 39,820 43,765 3,945

Employee expenses 17,965 18,153 188

Depreciation and amortisation 400 410 10

Other expenses 5,704 5,826 122

Total Expenses from Continuing Operations 113,336 116,643 3,307

Operating Result from Continuing Operations - - -

Other Comprehensive Income - - -

Total Comprehensive Income - - -

The parent entity’s Original Budget for Expenses from Continuing Operations has been reclassified to align with the classification of line items of the corresponding actual financial statements of the parent entity.



Note 23 – Budget vs Actual Comparison (continued)

Budget to Actual Comparison – Statement of Financial Position

Parent

Variance Notes


$000

Actual 2017

$000

Variance $000

Current Assets

Cash and cash equivalents 5 4,775 6,407 1,632

Receivables 5 3,721 1,545 (2,176)

Other financial assets 6 116 - (116)

Other current assets 7 177 346 169

Total Current Assets 8,789 8,298 (491)

Non-Current Assets

Property, plant and equipment 8 1,254 578 (676)

Investments 9 745 - (745)

Total Non-Current Assets 1,999 578 (1,421)

Total Assets 10,788 8,876 (1,912)

Current Liabilities

Payables and other current liabilities 10 7,798 6,803 (995)

Accrued employee benefits 467 468 1

Total Current Liabilities 8,265 7,271 (994)

Non-Current Liabilities

Other non-current liabilities 11 314 60 (254)

Total Non-Current Liabilities 314 60 (254)

Total Liabilities 8,579 7,331 (1,248)

Net Assets 2,209 1,545 (664)

Equity

Contributed equity 12,908 12,908 -

Accumulated deficit (10,699) (11,363) (664)

Total Equity 2,209 1,545 (664)

The Parent entity’s Original Budget for Payables and Accrued employee benefits has been reclassified to align with the classification of line items of the corresponding actual financial statements of the parent entity.



Budget to Actual Comparison - Statement of Cash Flows

Parent

Variance Notes


$000

Actual 2017

$000

Variance $000

Cash flows from operating activities Inflows:

Revenue from Government received 12 102,736 108,271 5,535

Receipts from customers 10,590 10,981 391

Interest received Outflows:

200 152 (48)

Payments to suppliers and employees (112,678) (117,065) (4,387)

Net cash flows used in operating activities 848 2,339 1,491

Cash flows from investing activities Inflows:

Proceeds from forward contracts Outflows:

13 - 7,308 7,308

Payments for forward contracts 13 - (7,266) (7,266)

Payments for property, plant & equipment 8 (400) - 400

Net cash flows (used in) / provided by investing activities

(400) 42 442

Net (decrease) / increase in cash and cash equivalents

448 2,381 1,933

Cash and cash equivalents at beginning of the year 4,327 4,026 (301)

Cash and cash equivalents at end of financial year 4,775 6,407 1,632

Explanations of Major Variances

Statement of Comprehensive Income

1. The increase is principally explained by other special initiative grants received from State and Commonwealth Government agencies during 2016-17 to fund one off major events.

2. The decrease reflects lower than expected revenues directed through the Corporation’s accounts by industry and other partners in jointly managed marketing campaigns and event activity during 2016-17 ($2.0 million). Where appropriate and cost effective, partner contributions are expended directly by the partner on joint activities rather than directed through the Corporation’s accounts in order to benefit from the buying power of partners and resultant efficiencies in administration.

3. The increase is primarily made up of unbudgeted returned event funding ($0.05 million) and additional sundry income ($0.2 million). Event funding instalments are refunded when necessitated by contractual conditions. Return of such funding cannot be anticipated and is therefore not budgeted. The sundry income primarily relates to tax refunds from international offices that were not budgeted and rental monies for the sublet of a portion of leased office area.

4. The slight decrease in marketing, development and events support expenses is offset by the increase in grant payments expense. The reallocation between the two categories of spend are in line with approved programs related to the additional special initiative grant funding.




Explanations of Major Variances (continued)

Statement of Financial Position

5. The increase to cash and cash equivalents and the reduction to receivables reflects the earlier receipt of monies (relating to invoices in the final quarter of the year) than originally forecast in the 2017 year budget. The 2017 year budget included an assumption around the timing of receivables being similar to the 2016 year budget and the earlier receipt of these monies and invoice payments has resulted in a higher closing cash and cash equivalents balance offset by the lower receivables and payables balance.

6. Other financial assets represents the Corporation’s net forward exchange contracts receivable. The closing net receivable is represented by the revaluation of the contracts on hand at balance date in line with market fluctuations in current forward exchange rates for contracts with similar maturity profiles. The closing balance is a direct result of the Corporation placing hedges at 30 June which did not require revaluation and wasn’t originally anticipated at the time of budget approval.

7. The increase is due to a prepayment for an event where the event owner requested the Corporation to bring forward financial contributions to meet upfront expenditure to secure venues, accommodation etc. Whilst this payment was budgeted, the 2017 year budget did not anticipate the prepayment of this expense.

8. The decrease is primarily due to a reduced capital program relating to changed strategy for ICT service provision.

9. The reduction is due to the unbudgeted impairment of the Corporation’s investment in Gold Coast Events Management Ltd and reflects the strategy to limit funds held as retained earnings in the controlled entity which was implemented late in the 2016 year. The 2017 year budget did not reflect this reduction as the reduction in net asset value of the investment was not known until after the approval of the budget.

10. The decrease reflects a difference in timing for activity completed in the final quarter of the year with the earlier receipt of invoices and the associated payments being processed before 30 June.

11. The decrease is due to the annual adjustment to rent payable liability to recognise lease straight lining.

Statement of Cash Flows

12. The increase is principally explained by other special initiative grants received from State and Commonwealth Government agencies during 2016-17 to fund one off major events.

13. Payments and proceeds for forward exchange contracts were net off in 2017 year budget cashflow. The impact of foreign currency translation on proceeds cannot be reliably forecast at the time of budget approval.


These general purpose consolidated financial statements have been prepared pursuant to section 62(1) of the Financial Accountability Act 2009 (the Act), relevant sections of the Financial and Performance Management Standard 2009 and other prescribed requirements. In accordance with section 62(1)(b) of the Act we certify that in our opinion:

(i) the prescribed requirements for establishing and keeping the accounts have been complied with in all material respects;

(ii) the consolidated financial statements have been drawn up to present a true and fair view, in accordance with prescribed accounting standards, of the transactions of Tourism and Events Queensland for the year ended 30 June 2017 and of the financial position of the Corporation as at the end of that year; and

(iii) these assertions are based on an appropriate system of internal controls and risk management processes being effective, in all material respects, with respect to financial reporting throughout the reporting period.

............................................................................................................................................................................................................... DATE: ……/……/2017

B EAST Chairman

............................................................................................................................................................................................................... DATE: ……/……/2017

J ALROE Board Member

............................................................................................................................................................................................................... DATE: ……/……/2017

L CODDINGTON BBus(HosMgt) GAICD Chief Executive Officer

................................................................................................................................................................................................................ DATE: ……/……/2017

N ELLIOTT BCom FCPA GAICD Group Executive Corporate Services and Chief Financial Officer

Management CertificateTourism and Events Queensland and Its Controlled Entities


To the Board Tourism and Events Queensland

Opinion

I have audited the financial report of Tourism and Events Queensland and the consolidated entity comprising the statutory body and its controlled entities, which comprises the consolidated statement of financial position as at 30 June 2017, the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash for the year then ended, notes to the financial statements including significant accounting policies and other explanatory information, and the management certificate.

In accordance with s.40 of the Auditor-General Act 2009 –

(a) I have received all the information and explanations which I have required;

(b) I consider the prescribed requirements in relation to the establishment and keeping of accounts have been complied with in all material respects; and

(c) In my opinion, the accompanying financial report gives a true and fair view of the financial position of Tourism and Events Queensland and the consolidated entity as at 30 June 2017, and of its financial performance and its cash flows for the year then ended in accordance with the prescribed requirements under the Financial Accountability Act 2009.

Basis of Opinion

I conducted the audit in accordance with the Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of my report. I am independent of the entity in accordance with the Auditor-General Act 2009 and the ethical requirements of the Accounting Professional and Ethical Standards Board APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the financial report in Australia. I have also fulfilled my other ethical responsibilities in accordance with the Code. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Responsibilities of the Board for the Financial Report

The Board is responsible for the preparation of the financial report that gives a true and fair view in accordance with prescribed requirements of the Financial Accountability Act 2009 and its subordinate legislation, the Financial and Performance Management Standard 2009. These prescribed requirements include the Australian Accounting Standards and having regard to the minimum reporting requirements included in the Financial Reporting Requirements for Queensland Government Agencies. The Board’s responsibility also includes such internal control as the Board determines is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the Board is responsible for assessing the entity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the entity or to cease operations, or has no realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of the Financial Report

My objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

INDEPENDENT AUDITOR’S REPORT


As part of an audit in accordance with the Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:

• Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the entity to cease to continue as a going concern.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the consolidated entity to express an opinion on the financial report. I am responsible for the direction, supervision and performance of the group audit. I remain solely responsible for my audit opinion.

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

N GEORGE CPA Queensland Audit Office (as Delegate of the Auditor General) Brisbane


Tourism and Events Queensland Head Office

Level 10, 30 Makerston St Brisbane QLD 4000 GPO Box 328 Brisbane QLD 4001 Tel: +61 (7) 3535 3535 www.teq.queensland.com www.teq.queensland.com/annualreport

International offices

Americas 2029 Century Park East, Suite 3150 Los Angeles, CA 90067 USA Tel: + 1 310 695 3251

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 21-086, 21/F, Pearl River Tower 15 West Zhujiang Road, Tianhe Guangzhou 510623 CHINA Tel: +86 20 2830 6854

Europe Oberbrunner Str. 4 Munich 81475 GERMANY Tel: +49 897 5969 8820

Hong Kong Room 506, 5/F Sun Hung Kai Centre 30 Harbour Road Wanchai HONG KONG Tel: + 85 22 827 4526

India Bungalow #20, Ground Floor New Kantwadi, Bandra West Mumbai 400050 INDIA Tel: +91 98 2178 8994

Tourism and Events Queensland directory

Indonesia ANZ Tower, 16th Floor JI. Jend Sudirman Kav 33A Jakarta 10220 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 20th Youngpoong Building 41 Cheongkyecheon-ro Chongro-ku, Seoul 110-752 KOREA Tel: +82 2 399 5767

Malaysia (postal address only) Lot 213, No. 2M.06.00 Level 2M Pavilion Kuala Lumpur 168 Jalan Bukit Bintang 55100 Kuala Lumpur, MALAYSIA Tel: + 60 12 283 0289

New Zealand Level 3, 125 The Strand Parnell, Auckland, NEW ZEALAND Tel: + 64 9 377 6458

Singapore 101 Thomson Road #08-02 United Square SINGAPORE 307591 Tel: +65 6253 2811

Taiwan Suite 2205, 22nd Floor International Trade Building No. 333 Keelung Road Section 1 Taipei 110 TAIWAN Tel: + 88 62 2723 3197

United Kingdom 58 Southwark Bridge Road London SE1 0AS UNITED KINGDOM Tel: +44 0 207 593 1700


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 of terms (p.83)

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 Chairman's statement (p.5) CEO's statement (p.4) About Tourism and Events Queensland (p.6)

Agency role and main functions ARRs – section 10.2 Our role and functions (p.6) Locations (p.8) Tourism and Events Queensland directory (p.80)

Operating environment ARRs – section 10.3 About Tourism and Events Queensland (p.6) Our operating environment (p.10) Strategic risks (p.15) Looking forward 2016-17 (p.15) Board meetings (p.31) Statutory obligations (p.34)

Non-financial performance

Government’s objectives for the community

ARRs – section 11.1 Queensland Government objectives for the community (p.16)

Other whole-of-Government plans / specific initiatives

ARRs – section 11.2 DestinationQ and other Government priorities (p.27)

Agency objectives and performance indicators

ARRs – section 11.3 Tourism landscape (p.12) Industry performance (p.10) Queensland brand health (p.15) Objectives and performance indicators (p.16) Annual Performance Statement 2015-16 (p.17) Strategic Priorities — Highlights 2016–17 (p.18) Efficient business operations (p.35)

Agency service areas and service standards

ARRs – section 11.4 Service areas and service standards (p.17) Annual Performance Statement 2015-16 (p.17)

Financial performance Summary of financial performance ARRs – section 12.1 Financial summary (p.38)

Governance – management and structure

Organisational structure ARRs – section 13.1 Executive management (p.7) Corporate governance (p.28) Board meetings (p.31)

Executive management ARRs – section 13.2 Executive management (p.7) Board meetings (p.31) Board committees (p.29)

Government bodies (statutory bodies and other entities)

ARRs – section 13.3 Government bodies (p.32)

Public Sector Ethics Act 1994 Public Sector Ethics Act 1994 ARRs – section 13.4

Statutory obligations (p.34)

Queensland public service values ARRs – section 13.5 Our values (p.8)


Summary of requirement Basis for requirement Annual report reference

Governance – risk management and accountability

Risk management ARRs – section 14.1 Audit and Remuneration Committee (p.29) Risk management (p.30)

Audit committee ARRs – section 14.2 Audit and Remuneration Committee (p.29)

Internal audit ARRs – section 14.3 Internal audit (p.30)

External scrutiny ARRs – section 14.4 External scrutiny (p.30)


ARRs – section 14.5 Information systems and recordkeeping (p.34)

Governance – human resources

Workforce planning and performance ARRs – section 15.1 Workforce planning, attraction and retention (p.36)

Open DataEarly retirement, redundancy and retrenchment

Directive No.11/12 Early Retirement, Redundancy and Retrenchment

Directive No.16/16 Early Retirement, Redundancy and Retrenchment (from 20 May 2016)

ARRs – section 15.2

N/A

Statement advising publication of information

ARRs – section 16 Open Data (p.35)

Consultancies ARRs – section 33.1 Open Data (p.35)

Overseas travel ARRs – section 33.2 Open Data (p.35)

Queensland Language Services Policy ARRs – section 33.3 N/A

Financial statements Certification of financial statements FAA – section 62 FPMS – sections 42, 43 and 50 ARRs – section 17.1

Financial Report (p.77)

Independent Auditor's Report FAA – section 62 FPMS – section 50 ARRs – section 17.2

Financial Report (p.77)

FAA Financial Accountability Act 2009FPMS Financial and Performance Management Standard 2009ARRs Annual report requirements for Queensland Government agenciesN/A Not applicable


Glossary of termsAAIF Attracting Aviation Investment Fund

ABS Australian Bureau of Statistics

ARRs Annual report requirements for Queensland Government agencies

ASCOT Australian Standing Committee on Tourism

BEI Brand Equity Index

CEO Chief Executive Officer

CRM Customer Relationship Management

DTESB Department of Tourism, Major Events, Small Business and the Commonwealth Games

FAA Financial Accountability Act 2009

FBT Fringe Benefits Tax

FPMS Financial and Performance Management Standard 2009

FTE Full-time equivalent

FY Financial year

GC2018 Gold Coast 2018 Commonwealth Games

GOLDOC Gold Coast 2018 Commonwealth Games Corporation

GST Good and Services Tax

GSP Gross State Product

HP-RM8 Hewlett Packard Records Management 8.1

ICT Information and Communications Technology

IVS International Visitor Survey

KMP Key Management Personnel

NSW New South Wales

NVS National Visitor Survey

OAD Overseas Arrivals and Departures

OAM Medal of the Order of Australia

OVE Overnight Visitor Expenditure

QDEP Queensland Destination Events Program

QTIC Queensland Tourism Industry Council

RTO Regional Tourism Organisation

SGBR Southern Great Barrier Reef

SQC Southern Queensland Country

TA Tourism Australia

TEQ Tourism and Events Queensland

TIQ Trade and Investment Queensland

TRA Tourism Research Australia

WHS Work Health and Safety


Tourism and Events Queensland

GPO Box 328, Brisbane,QLD 4001, Australia

T: 61 7 3535 3535E: [email protected]

facebook.com/visitqueensland

twitter.com/queensland

twitter.com/teqld

instagram.com/queensland

youtube.com/Queensland

linkedin.com/company/tourism-and-events-queensland

Disclaimer: Tourism and Events Queensland has compiled and produced this publication in the interest of promoting

Tourism in Queensland. The information contained within this publication has been assembled and

included with all due care.

Tourism and Events Queensland makes no warranty or assurance as to the correctness, completeness or

suitability of purpose of the Information. In no event will Tourism and Events Queensland be liable to any

person in contract, tort or otherwise if any information in the publication is incomplete, inaccurate or not

suitable for the purpose you use the Information for.

Published by Tourism and Events Queensland

© Tourism and Events Queensland

Annual Report 16/17 - Queensland Parliament · 4 ANNUAL REPORT 16/17 CEO’s statement Inspiring...

Documents

Transcript of Annual Report 16/17 - Queensland Parliament · 4 ANNUAL REPORT 16/17 CEO’s statement Inspiring...