Date:
Time:
Meeting Room:
Venue:
Friday 30 May 2014 9.30 am
Tasman Council Chamber 189 Queen Street
Richmond
Full Council
SUPPLEMENTARY PAPER
Contents
ITEM PAGE
8.4 Annual Plan 2014/2015 Tourism Funding
1. Supplementary Paper to RCN14-05-04 ... 3 2. Murchison Proposal ... 5 3. Murchison Draft Budget ... 11
Tasman District Council Full Council Attachments – 30 May 2014
Attachments Page 2
Att ac hm ent 1 Item 8. 4
Reports 1. Annual Pl an 2014/ 2015 T ourism Funding
TO: Mayor and Councillors FROM: Lindsay McKenzie DATE: 23 May 2014
RE: Supplementary Paper in Support of Annual Plan 2014/2015 Tourism Funding Report RCN14-05-04
Murchison Visitor Information Centre Proposal
Subsequent to the agenda for the 30 May 2014 Council meeting being prepared, a proposal has been received from Murchison Community Resource Incorporated to manage the Murchison Visitor Information Centre.
The proposal is attached. It seeks $35,000 from Council in 2014/2015.
The proposal is more straightforward than the previous one which incorporated the Council’s service centre operation. It is open to the Council to consider this proposal when the draft resolutions on funding the district visitor information centres are debated.
Councillors may recall from the budget discussions that there is a $20,000 saving on the overall tourism budget in 2014/2015 that could be used to support Murchison in the event that Council decides to do so.
Draft Resolution:
That the proposal for a Murchison Visitor Information Centre received from Murchison Community Resource Incorporated be considered as supplementary information to report RCN14-05-04.
Att ac hm ent 2 Item 8. 4 Murchison Community Resource Incorporated
Proposal to Tasman District Council For the management of
Murchison Visitor Information Centre
Introduction
From 13 June 2014, Nelson Tasman Tourism (NTT) will no longer operate the Murchison Visitor Centre. In order to continue to provide visitor services in the area, Murchison Community
Resource Centre (CRC) will run the Visitor Centre. This legal entity has been made available to the governing body of the Information Centre. A meeting is coming up at the end of this month to vote members on the committee who will oversee the running of the Centre. The members hat are to be put forward will come partly from the Liaison Group; Emma Monk, Ricky Leahy, Karen Steadman, partly from the existing CRC committee; Wendy Wood and partly from the
community; Andrea Campkin. Leanne Ealam who currently is the Centre’s supervisor has indicated that she is willing to continue to support the Centre in which ever role she is needed.
Murchison Community Resource Inc. (CRC) is a membership based incorporated society, covering the Murchison area. It was founded in August 1995, is run by members, and currently has the role of providing social, recreational and educational services to the Murchison
community. However this role has significantly reduced over recent years, and the Murchison Sport Recreation and Cultural Centre now holds the TDC Recreation Contract.
CRC is still operating under a reduced operating model and currently has a committee of eight members and is:
Responsible for insuring and maintaining the Information Centre building under the terms of the lease with NTT
GST registered
Incorporated Society number 684899
Charities Commission No. CC21937 registered 19/03/2008
IRD Income Tax and Resident Withholding Tax exempt IRD No. 63-018-791
At a meeting on 6 August 2013, the decision was made to make the legal entity available for the Information Centre if required. (Minutes attached). For the purposes of this proposal this arrangement is referred to as CRC (2014)
Murchison Information Centre Inc. (MIC) was a membership based incorporated society, covering the Murchison area. From June 1996 to July 2008 the Society owned and operated the Murchison Visitor Information Centre.
Att ac hm ent 2 Item 8. 4
Tasman District Council Full Council Attachments – 30 May 2014
Attachments Page 6
MIC decided to cease operating the Centre as from 1 August 2008 and agreed to hand over responsibility for operating the Centre to NTT and entered into a lease arrangement with NTT.
MIC subsequently passed stewardship of the building to CRC in September 2009 in preparation for the settling of MIC’s affairs. MIC was wound up in August 2011, however the relevant expertise in operating the Information Centre is still available in the Murchison community.
1.0 Concept
Murchison appreciates that the present economic climate is difficult, therefore the revised budget attached shows that extensive operational cuts have been made.
However new initiatives will be implemented into the Centre so it can grow as a business enterprise, aiming for long term feasibility. From extensive local consultation we have had a strong indication of on-going support for the Centre, to ensure that Murchison can continue as a vibrant and productive community.
We see the Murchison Visitor Centre continuing to function as an important community asset, providing a variety of existing services and information, to both locals and
visitors, with an increased emphasis on retail sales. The Centre is also going to provide an outlet for locally produced artisan products and services thereby further increasing sales opportunities and community involvement.
Business Development: Exploit the financial potential of the Old Ghost Trail (bike rental, transport service, merchandise),
Develop a ‘Murchison’ merchandise line
Enhance a distinctive Murchison commercial identity through the sale of original, quality NZ made items Hold art exhibitions
Actively sell the Centre to operators in wider regions, in order to increase Centre revenues by way of advertising
2.0 Proposed Operation
2.1 Visitor Information Centre Services
The centre will no longer be an Associate i-SITE under the i-SITE New Zealand network. We would like to retain the Land Transport Agency service for the community, which requires the centre to be open five days, Monday-Friday. The centre will continue to operate visitor
information services with reduced staff levels and opening hours which will:
Reduce the wage bill considerably
Att ac hm ent 2 Item 8. 4
Generate income through making booking sales to sell local, regional and national tourism products and services
Generate income by operators/businesses displaying brochures
Generate income by selling retail items
Generate income by providing Land Transport Agency transactions/ticketing
Generate income by developing local map-pad with paid advertisers
Provide information on local activities that are free but which enhances a visitor’s quality experience in the area and encourages them to stay longer and spend more in the Murchison community
3.0 Transition Plan
In 2008, MIC handed over all plant and equipment, furniture and fittings to NTT on 1 August 2008. A list of items was prepared and agreed on between the parties. This list included any items donated by the local community. NTT was required to depreciate all capital items and assumed ownership of the items. In the event the premises rental agreement is to cease, all items originally owned by MIC and still being used will be returned to CRC(2014). NTT agrees to consult CRC (2014) on the disposal of any significant items not required by NTT. Items purchased and owned by NTT can be sold to CRC (2014) at a suggested rate of $1800.00
Transition Tasks from May 2014 to June 2014
NTT will assist CRC (2014) with negotiating the following:
Ascertain level of IBIS knowledge with existing staff if CRC (2014) continue to use reservation system
Provide CRC (2014) with copies of job descriptions and other HR templates for future use
NTT i-SITE Manager to be available in Week One for handover training
NTT i-SITE Manager to be available to field phone/email enquiries in June 2014 CRC (2014) will close the Visitor Centre for a period of weeks to reopen 1 September 2014.
Contact has been made with LTNZ regarding continuing the contract.
A start has been made to contact brochure display advertisers to advise that CRC (2014) will operate the centre to ensure continuation of advertising
Investigate how CRC (2014) will implement HR and employment practices
4.2 Visitor Information Centre Public Good Value
Foot traffic is the tangible measure of people coming into the centre and using information services, irrespective if it is a local community person or a visitor to the area. The average number of people using the centre over the past four year is 22,920.
Att ac hm ent 2 Item 8. 4
Tasman District Council Full Council Attachments – 30 May 2014
Attachments Page 8
2009-2010 Foot traffic 22,264
2010-2011 Foot traffic 24,603
2011-2012 Foot traffic 24,258
2012-2013 Foot traffic 20,550
91,675 divided by 4 years = 22,918 (rounded)
It is estimated 50% of visitors that come into the centre are looking for information which does not always result in a commercial transaction. There are lots of free experiences which enhances visitors’ stay in the region and encourages them to spend more on retail, activities and accommodation, not necessarily in the visitor centre.
In summer, visitors to the Centre are 80% non local and 20% local. During winter and shoulder season months, the reverse is true, i.e. 80% local, 20% non-local.
Visitor Centre funding requirement 2014/2015 $37,400
To achieve a 12 month viable business model, Murchison Visitor Centre is asking for $35,000 from TDC and community funding of $5,000.00. It has been indicated that the community funding will be forthcoming. We are also preparing to apply to other funding sources e.g.
Canterbury Community Trust together with other funding organisations.
CRC (2014) believes the value of the Visitor Centre requirement ($35,000) is realistic.
The attached Budget reflects that the Centre will have a policy of assertive selling of advertising, retail and reservations in order to provide income for the Centre. Labour costs represent the bulk of the budget and this issue has been addressed by reducing staffing levels and opening hours.
5.0 How Will Stakeholders Use the proposed Murchison Visitor Centre
Community – enquiries and payments for LTNZ, bus bookings, accommodation bookings and other various services.
Local and non-local advertisers - promote themselves via rack cards, posters, videos.
CRC (2014) Executive Sub Committee – responsible for the governance and management of the Centre.
Staff – interact with clients and help with itinerary planning, pass on knowledge of attractions, accommodation and activities. Book activities and assist clients.
Visitors – gather information from staff and advertising, then make bookings or obtain information to enhance stay in area, utilise LTNZ services
CRC(2014) –provide valuable community and visitor information
Att ac hm ent 2 Item 8. 4
6.0 Recommendation
Tasman District Council accepts the business proposal submitted by the Murchison Community Resource Incorporated (2014) to provide funding for the Murchison Visitor Centre for the 2014/15 year commencing as from the date of NTT’s withdrawal.
We would ask that the Tasman District Council accepts this application for funding and also takes into account the many submissions received in support of the Murchison Visitor Centre from the Council’s ratepayers and visitors to the region.
Appendix.
Budget
Att ac hm ent 3 Item 8. 4
Att ac hm ent 3 Item 8. 4
Tasman District Council Full Council Attachments – 30 May 2014
Attachments Page 12
Att ac hm ent 3 Item 8. 4
