2012-13 Annual ReportOrganisation structure The new Tourism and Events Queensland board met for the first time in December 2012, following the passing of the Tourism and Events Queensland

2012-13 Annual Report

2 2012-13 Annual Report

Letter of compliance

11 September 2013

The Honourable Jann Stuckey MP Minister for Tourism, Major Events, Small Business and the Commonwealth Games GPO Box 1141, Brisbane Q 4001

Dear Minister

I am pleased to present the Annual Report 2012-2013 and financial statements for Tourism and Events Queensland.

This report is prepared on the basis of the current administrative arrangements for Tourism and Events Queensland applying for the whole of the 2012-2013 financial year. That is, it reflects the structure, operations and performance of Tourism and Events Queensland as it now exists.

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 74 of this annual report or accessed at www.te.queensland.com/annualreport.

Yours sincerely

Stephen Gregg Chairman Tourism and Events Queensland

ISSN: 1837-4107. 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 (07) 3535 3535 and we will arrange an interpreter to effectively communicate the report to you.© (Tourism and Events Queensland) 2013.Public Availability Statement: Copies of this report are also available in paper form and can be obtained by contacting Jane Mallam, Director Strategy and Research. Tel: (07) 3535 5270 Fax: (07) 3535 5563 Email: [email protected]: www.te.queensland.com www.te.queensland.com/annualreport

Tourism and Events Queensland is interested in hearing your feedback on its Annual Report 2012-13. Please help us by taking a few minutes to complete the survey on www.qld.gov.au/annualreportfeedback so that we can continue to improve the quality of our Annual Report.

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02 Letter of compliance

04 Chairman’s statement

05 About Tourism and Events Queensland Organisation structure Organisation values

09 The strategic and operating environment The tourism and events landscape Strategic risks

10 DestinationQ The DestinationQ Forum 2012 and the Partnership Agreement DestinationQ Blueprint Tourism Investment

12 Industry performance: tourism and events in Queensland

16 Tourism and Events Queensland priorities 2012-13 Major, regional and business events Tourism experience and destination development Marketing and promoting tourism in Queensland Annual Performance Statement 2012-13

22 Corporate governance Board performance Board committees Internal audit Risk management External scrutiny Related entities Statutory obligations

30 Workforce planning, attraction and retention

31 Financial summary

33 Financial report

74 Compliance checklist

76 Tourism and Events Queensland directory

Contents


A lot can happen in a year - the creation of Tourism and Events Queensland (TEQ) in December 2012, brought with it a unique opportunity to develop a fresh approach to growing tourism and events in Queensland.

Since that time there’s been a significant reform process underway to align the organisation’s functions with the Government’s objective of reaching $30 billion in annual overnight visitor expenditure by 2020.

TEQ is achieving significant economic and social benefits for the State through the marketing and promotion of tourism, tourism experience and destination development as well as event acquisition.

Our vision is to create a collaborative tourism and events business system that engages and provides a sense of ownership for all stakeholders to achieve the 2020 target.

Significant work has been done putting this vision into practice with 150 marketing projects carried out during the year to reinforce Queensland’s premier holiday and event destinations. Between January and July 2013, nine major marketing campaigns have been implemented across our key destinations.

Queensland’s event portfolio continued to deliver significant economic benefits with major events contributing around $300 million to the State economy and a regional development program which supported 100 events throughout the State during the year.

Chairman’s statement

To ensure marketing and event activity remains tightly focused on the industry 2020 targets the organisation led the development of a range of strategies to enable industry to grow and foster innovation to ensure Queensland not only is in the best position to compete, but lead.

A 2020 Strategic Marketing Plan, a complementary Events Strategy and a strong focus on commercial partnerships, such as the cooperative marketing agreement with Qantas valued at $12 million over three years, are some examples of the work being done.

Within the restructure has been a clear focus on achieving efficiencies, delivery against a new KPI framework and building strong, collaborative partnerships with destinations at the centre of everything we do.

Work is currently underway on 13 Destination Tourism Plans which will form a dynamic blueprint focused on consultation, collaboration and a shared vision for the future.

I would like to thank TEQ directors, staff and our industry partners for their support during this transition year. We value everyone’s commitment and look forward to working together in the spirit of partnership as we enter a new phase.



te.queensland.com 5

The Queensland Government established Tourism and Events Queensland in December 2012, under the Tourism and Events Queensland Act 2012. Tourism and Events Queensland’s purpose is to achieve economic and social benefits for the State through the marketing and promotion of tourism, tourism experience and destination development, and securing major events to be held in Queensland.

Tourism and Events Queensland is a statutory body under the Statutory Bodies Financial Arrangements Act 1982 and the Financial Accountability Act 2009. The functions of the corporation are outlined in section 7 of the Tourism and Events Queensland Act 2012 and include:

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.

About Tourism and Events Queensland

Combining the resources and expertise of the former Tourism Queensland and Events Queensland formally into one entity has enabled a continued focus on driving growth in Queensland’s tourism and event industries in close partnership with Government and industry.

Tourism has been identified by the Queensland Government as one of the State’s four key economic pillars and Tourism and Events Queensland remains committed to working collaboratively with industry and across Government to achieve its growth objectives. Tourism and Events Queensland plays a major role in marketing and providing strategic direction to deliver the Queensland Government’s growth agenda. Recognising that tourism and events are intrinsically linked, the creation of Tourism and Events Queensland ensures the most coordinated and strategic approach to maximise domestic and international visitor markets and support the Government’s goal of growing annual overnight visitor expenditure to $30 billion by 2020.

Operating in a competitive national and international environment in an industry where global economic conditions and other external shocks such as natural disasters may influence visitor numbers and expenditure, Tourism and Events Queensland identifies new and innovative ways to make the most out of emerging opportunities for the benefit of industry and the Queensland economy as a whole. Events play an important role in the tourism industry by creating exposure, promoting community pride and driving visitation and expenditure to the host region.

Organisation structure

The new Tourism and Events Queensland board met for the first time in December 2012, following the passing of the Tourism and Events Queensland Act 2012. Further information regarding board responsibilities, performance, committees and members can be found in the corporate governance section of this report.

Tourism and Events Queensland’s vision and operational focus is an efficient and collaborative tourism and events business system that engages and provides a sense of ownership for all stakeholders, working towards the goal of $30 billion in overnight visitor expenditure by 2020.

To support the collaborative business system, Tourism and Events Queensland has developed a holistic business structure that supports the critical interrelationships between the Minister, Tourism and Events Queensland, the Department of Tourism, Major Events, Small Business and the Commonwealth Games, Queensland destinations, other Government partners and industry.

Queensland destinations are the central point of the new tourism business system. In order to collaboratively deliver social and economic benefit for the State and achieve the 2020 tourism targets, Tourism and Events Queensland works in partnership with each destination through the Regional Tourism Organisation (RTO) to develop and deliver plans under the destination tourism planning framework, and will focus on acquisition, development, marketing and review.


BOARD

BUSINESS SERVICES

CORP

ORA

TE A

FFAI

RS

CEO M

ARKETING

DEVELOPMENT

ACQUISITI

ON

DESTINATIONPARTNERSHIPS

Minister for Tourism, Major Events, Small Businessand the Commonwealth Games

Tourism and Events Queensland’s senior executive team comprises of six Group Executives, led by the Chief Executive Officer, Steven Wright. The key areas of focus for each Group Executive are outlined below.

Destination partnerships (Group Executive – Leanne Coddington)

• Partners in collaboration with key destination stakeholders to deliver strategies and actions within the destination tourism plan;

• Ensures cross-organisation leadership and co-ordination of destination focussed strategies and activity; and

• Leads partnerships with other key stakeholders such as the Department of Tourism, Major Events, Small Business and the Commonwealth Games and the Queensland Tourism Industry Council.

Acquisition (Group Executive – Kirsten Herring until July 2013; position currently vacant)

• Builds a portfolio of major, business and regional events, supporting the destination tourism plans; and

• Develops strategic partnerships with airlines and airports in order to attract the required flight capacity to Queensland.

Development (Group Executive – Sandra Passaro)

• Develops events in destinations to stimulate visitation in shoulder and low seasons, consistent with DestinationQ objectives, and tourism experiences that align with the destination tourism framework;

• Manages the allocation of funding to the Queensland Convention Bureaux and the International Bid Fund;

• Enables tourism operators to build their domestic and international marketing skills;

• Develops tourism experiences within each destination; and

• Undertakes research and development, and implements identified strategic projects associated with nature based tourism and ecotourism, drive tourism, experience development, product development and renewal, Indigenous tourism, cruise tourism and investment facilitation to increase economic benefits throughout Queensland.

Marketing services (Group Executive – Steve McRoberts)

• Partners with regional stakeholders to develop consumer-driven destination experience marketing, targeted at priority markets, in line with the destination tourism plans;

• Implements the 2020 Strategic Marketing Plan for Tourism and Events in Queensland; and

• Partners with event rights holders to market major events in the Tourism and Events Queensland portfolio.

Business services (Chief Operating Officer – role vacant as at 30 June 2013. David Mathers appointed to the role, effective from 8 July 2013)

• Supports Tourism and Events Queensland’s senior management and Board in the delivery of the organisation’s operation, strategic, research and financial activities; and

• Provides leadership across all areas of the business to maximise efficiencies.

Corporate affairs (Group Executive – Megan Saunders)

• Coordinates the media and communications activities across all areas of Tourism and Events Queensland;

• Provides effective and timely liaison between tourism and events key stakeholders; and

• Manages effective relationships with key stakeholders.

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Locations

The locations of Tourism and Events Queensland’s regional offices within Queensland and overseas are detailed in the directory on page 76 of this report.

Tourism and Events Queensland Destination Directors are based throughout Queensland and deliver a range of industry assistance initiatives in partnership with the 13 Queensland RTOs including providing advice on marketing, publicity, digital and funding programs, and further developing tourism destinations by identifying new and enhanced tourism experiences and products.

Tourism and Events Queensland has representation in 13 strategically important international markets. The international offices work closely with Queensland’s RTOs and industry partners to showcase Queensland as Australia’s premier leisure holiday destination. Working in partnership with Tourism Australia, key airlines, influential trade and media partners, the international offices provide a critically important role as the conduit between the Queensland industry and international distribution channels in the promotion of the State.

BRISBANE

TOWNSVILLE

CAIRNSTropical

North Queensland

Townsville

Outback QueenslandMackay

Whitsundays

CapricornGladstone

Bundaberg

Fraser Coast

Sunshine Coast

BrisbaneSouthern Queensland

Country

Gold Coast

London

Tokyo

Taipei

Munich

Los Angeles

Brisbane

SingaporeKuala Lumpur

MumbaiDubai

Seoul

Hong Kong

Auckland

Shanghai

QUEENSLAND


Organisation values

Tourism and Events Queensland created a set of values for the new organisation.

We 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.

We are one team

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

We are agile and responsive

We embrace emerging trends and opportunities. To thrive in a competitive industry environment we are proactive, flexible and adaptable.

We go beyond

We are creative, innovative and solutions driven. We strive for continuous improvement, and make a difference where it really counts for Queensland.

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The strategic and operating environment

The tourism and events landscape

Key trends

In 2012, for the first time, the world had more than 1 billion tourists and international tourism receipts reached USD$1.3 trillion for the year. The United Nations World Tourism Organisation (UNWTO)1 has forecast global tourism to grow 3.8 per cent per year through to 2020. The first four months of 2013 have already recorded 4.3 per cent growth, with the Asia/Pacific region recording the highest growth at 6.0 per cent.

The Tourism Forecasting Committee’s most recent report2 has forecast 1.3 per cent growth in Queensland domestic visitor nights in 2013-14 and international visitor nights to Queensland are forecast to increase 2.8 per cent, slightly more than the forecast Australian average.

The strengthening economies of several key trading partners this year has caused the Australian dollar to fall against the US dollar by more than 10 per cent in three months3 and reach its lowest point for two and a half years. As a result there is an expectation there will be a slowing in Australians holidaying overseas and domestic holidays should now represent greater value. In addition, international visitors are expected to spend more when they arrive as the strength of their own currency becomes evident.

Tourism continues to be highly competitive on a global scale. There is an increasing number of destinations being marketed, expanding product diversity and greater understanding by

governments that tourism can be an immediate and inexpensive economic lever. For example the proposed changes by the United States government to relax tourist visa requirements for just China and Brazil are expected to add $850 billion and 1.3 million jobs to the United States economy by 20204.

The effect of the mining boom continues to be felt across the domestic tourism industry, impacting different regions in different ways. For example, accommodation demand in some resource areas has inflated average room rates and occupancy levels, limiting availability for holiday visitors. As the mining investment boom peaks and resource projects move from construction to production, the need for smaller numbers of staff with different accommodation requirements will have an effect on accommodation demand and room stock.

Strategic risks

Tourism and Events Queensland operates in Australia and overseas. This entails accepting several strategic risks:

• The success of the Queensland tourism industry is subject to Australian economic conditions and those of key source markets. Visitor numbers, expenditure and average length of stay vary as a result. Accordingly, Tourism and Events Queensland takes a balanced, medium to long-term view of market potential, and closely monitors tourism trends and their underlying influences.

• Tourism and Events Queensland, on behalf of the Queensland Government, competes with other national and international events destinations to secure and develop events for Queensland. In order to maintain its competitiveness, Tourism and Events Queensland investigates opportunities for new regional and major events and improvements in the delivery of existing events.

• Meeting visitor expectation is at risk if tourism and events products, experiences and destinations are not refreshed or designed to cater for changing visitor needs. Tourism and Events Queensland works with destination partners to develop and promote their destinations and experiences to meet visitor needs.

• Tourism demand is closely related to consumer perception. When crises occur, including adverse weather events, Tourism and Events Queensland’s response is critical to minimise a downturn and facilitate recovery.

1 UNWTO World Tourism Barometer, 2013 2 Tourism Forecasting Committee, “Forecast Issue #1 2013” 3 Reserve Bank of Australia, July, 2013, http://www.rba.gov.au/statistics/hist-exchange-rates/index.html 4 Bloomberg, “Tourism Seen Adding $850 Billion With Obama’s New Visas: Retail”


The government’s DestinationQ strategy identifies a new approach to tourism, to create new opportunities and a sustainable future for tourism in Queensland. The key elements of DestinationQ are:

• Ambition – setting a growth target for the industry to double overnight visitor expenditure to $30 billion by 2020.

• Leadership – focusing whole-of-government support for tourism and events as one of the four pillars of the Queensland economy.

• Partnership – developing a strong partnership with industry, driving enhanced and collaborative marketing and development efforts, and a focus on events for Queensland.

• Investment – attracting new investment in tourism product and new aviation routes to Queensland, and reducing the red-tape burden on tourism operators.

• Accountability – assigning roles and responsibilities, tracking progress and reporting on outcomes at an annual forum of industry stakeholders.

The government has laid strong foundations to implement each of these elements of DestinationQ and underpinned this with an historic partnership agreement with the industry.

The DestinationQ Forum 2012 and the Partnership Agreement

The inaugural forum was held in Cairns on 25-26 June 2012 – within the first 100 days of the election of the Government. Ministers, senior officials and over 300 industry representatives and operators came together to workshop the priorities and actions needed for Queensland tourism to reach its 2020 growth target and to establish roles for industry and government.

DestinationQ

Across six themes, industry and government identified issues to be addressed and prioritised actions to be taken in the first year to review tourism. These 25 key actions were included in the partnership agreement signed by the Premier, the Minister for Tourism, Major Events, Small Business and the Commonwealth Games, and the Chair of the Queensland Tourism Industry Council (QTIC).

The actions were assigned to both government and industry, and delivery of these commitments has been overseen by the Post-Forum Working Group. This group of senior industry and government representatives has driven action, brought industry issues to the table, and ensured the actions are delivered. With the working group’s support, three progress reports against the DestinationQ 12 Month Key Action Plan have been released.

The government and industry want to make Queensland Australia’s number one tourist destination. To do this, the government adopted a short, medium and long term approach:

• The short term approach, called Industry First Response, was about moving to immediately address the many issues for tourism that had not been addressed for many years. This was the focus of the inaugural DestinationQ forum in Cairns in June 2012.

• The medium term approach is the government’s target to double annual overnight visitor expenditure from 2010 levels by 2020. This target aligns with the national industry goal under Tourism 2020.

• The long term approach is underpinned by the 20 year plan. Central to the short, medium and long term approaches is partnership with industry.

The second annual DestinationQ forum was held at the Gold Coast on 27 and 28 August 2013, and outcomes will be reported in the Tourism and Events Queensland Annual Report 2013-2014.

DestinationQ Blueprint

The DestinationQ Blueprint 2012-2015 takes DestinationQ forward to 2015, as the first milestone towards the 2020 target for the industry. For each theme of DestinationQ, the blueprint outlines the key directions that will be taken by the Queensland Government over the next three years. These directions will be implemented in partnership with industry and will be discussed at the annual forum held with the tourism industry.

The blueprint and progress reports are available on the dedicated DestinationQ website, www.destq.com.au.

Tourism Investment

Tourism and Events Queensland forms an integral part of delivering the Government’s DestinationQ strategy. To support the DestinationQ focus, on 11 September 2012 the Queensland Government announced a $20 million investment in activity designed to stimulate awareness of and travel to Queensland destinations through destination marketing and inbound tourism attraction. In pursuit of the Government’s DestinationQ goals for tourism, Tourism and Events Queensland adopted a new approach to its activities in three key areas – destinations, markets and delivery - to boost tourism both domestically and internationally.

1. Destinations – Tourism and Events Queensland focused on marketing for the major destination brands in partnership with RTOs and commercial partners:

• The Gold Coast, Whitsundays, Sunshine Coast, Brisbane and Tropical North Queensland have brands that resonate in key markets and these were promoted in partnership with RTOs and commercial partners. Tourism and Events Queensland also worked to grow destinations with emerging brands, particularly the Southern Great Barrier Reef (incorporating the Bundaberg, Gladstone and Capricorn regions), Southern Queensland Country

te.queensland.com 11

and Fraser Coast. For other destinations, Tourism and Events Queensland undertook activity to increase awareness for the Outback, Mackay and Townsville. Tourism and Events Queensland leveraged key events to attract visitors to destinations in low and shoulder seasons, to maximise visitation for accommodation, tours and other visitor services.

2. Markets – Resources were shifted towards source markets where the largest growth in visitation and expenditure is likely to occur:

• Greater Asian focus: in China, the fastest growing international market, Tourism and Events Queensland focused on increasing the number of Chinese cities in which Queensland markets itself, and in the big three source cities (Beijing, Shanghai and Guangzhou). It also targeted higher-spending individual travellers to complement the group travel market.

Effort was also devoted to other emerging growth markets including India, Indonesia and Malaysia. Activity in western long-haul markets became more targeted at segments like youth who still travel when economic conditions at home are poor. Tourism and Events Queensland worked more closely with Tourism Australia to maximise impact in these markets.

• Stronger commercial partnerships: the focus has been on destination brands and a shift from short-term individual campaign based relationships to long-term strategic and commercial partnerships with major industry players to deliver experiences, packages and products to our target markets.

3. Delivery – Reflecting changing consumer behaviour in planning and making travel choices, Tourism and Events Queensland increased its efforts to market through online sources of information:

• Consumer led content: consumers are increasingly developing their own content using smart phones and sites like TripAdviser. Tourism and Events Queensland scoped an application to help consumers use wi-fi hotspots to enable them to more readily talk about their Queensland holiday over social media.

• Richer content for consumers: Rich video content that showcases the variety and depth of experiences available in Queensland’s destinations was developed for the Queensland YouTube channel.

• New channels: Tourism and Events Queensland partnered with Thomson Reuters to deliver Video News Releases (VNR) to global media. Five VNRs were produced for the Solar Eclipse, Best Jobs in the World, ReefLive, Laura Aboriginal Dance Festival and One Day in Paradise promotions. These releases were picked up by the news media in key source markets around the world and attracted in excess of $10 million in publicity value.

National tourism priorities

Tourism and Events Queensland was an active participant on intergovernmental groups that focus on tourism, including the Australian Standing Committee on Tourism and a number of working groups established under the National Long Term Tourism Strategy. The purpose of the National Long Term Tourism Strategy is to increase the supply and quality of Australian tourism product and make the industry more resilient and competitive.


Industry performance: tourism and events in QueenslandOvernight visitor expenditure5

Tourism Research Australia’s national visitor research5 indicated total overnight visitor expenditure in Queensland was $18 billion for the year ended 30 June 2013, which was a 3.4 per cent increase compared with the year before. Despite the damaging weather in early 2013, Queensland continued to bounce back from the widespread flooding and cyclone damage of early 2011 and recorded a 17.4 per cent increase in visitor expenditure since 2011. Queensland out-performed the national expenditure growth over the same period, which increased 9.8 per cent.

The composition of overnight visitor expenditure in Queensland remained stable over the year with 22 per cent of all overnight visitor expenditure being made by international visitors. The balance, 78 per cent of all overnight visitor expenditure in Queensland, was made by Australians. Queenslanders travelling within the state contributed 32 per cent of all overnight visitor expenditure.

Leisure visitor numbers are the combination of those visitors on holidays and those visiting friends and families. Drawn by leisure activities across Queensland, including a range of sporting and cultural events, total overnight visitor expenditure generated by leisure visitors over the last year increased 3.0 per cent to $11.4 billion.

Australian States’ market share of overnight visitor expenditure remained relatively stable during the year. Queensland once again received more than a quarter of all overnight visitor expenditure in Australia, which was second only to New South Wales.

The expenditure of domestic overnight visitors in Queensland continued to recover from the challenges of recent years with a 3.1 per cent growth in the last year to $14.1 billion. Since 2011, the growth rate for domestic overnight visitor expenditure in Queensland was 20.3 per cent, compared with the national result of 10.4 per cent.

International visitor expenditure in Queensland also grew in the last year, with expenditure increasing 4.4 per cent to $4.0 billion. International visitors traditionally have a higher level of expenditure than domestic visitors and, during the last year, Queensland increased its proportion of international visitors from 9.8 per cent to 10.3 per cent, assisting the overall increase in international visitor expenditure for the State.

Overnight visitation5

In the year ended June 2013, Queensland maintained the second highest share of overnight visitors to Australia at 24.7 per cent, while New South Wales had 34.5 per cent. During the year, total overnight visitation reached 20 million for Queensland and 81 million for Australia. This was a welcome return to visitation levels prior to the GFC.

YE Jun-08 YE Jun-09 YE Jun-10 YE Jun-11 YE Jun-12 YE Jun-13QLD 25.1% 25.1% 24.7% 24.5% 25.3% 24.7%NSW 34.6% 34.7% 35.5% 36.0% 34.3% 34.5%VIC 24.3% 24.1% 24.6% 24.6% 25.0% 24.5%Rest of Australia 22.5% 22.4% 21.8% 21.2% 21.8% 22.6%

Market share of total overnight visitation in Australia – year ended June 2008 to year ended June 20135

5 Source: Tourism Research Australia, National and International Visitor Surveys, year ended June 2013. Further information on tourism trends in Queensland can be located at www.te.queensland.com Please note ‘YE’ denotes Year Ended


0

5

10

15

20

25

QLD

NSW

VIC

YEJune 2013

YEJune 2012

YEJune 2011

YEJune 2010

YEJune 2009

YEJune 2008

AUS

0

9

18

27

36

45

54

63

72

Stat

e ($

Bill

ion)

Aust

ralia

($ B

illio

n)

5%

10%

15%

20%

25%

30%

35%

Other AUS

QLD

NSW

VIC

YEJune 2013

YEJune 2012

YEJune 2011

YEJune 2010

YEJune 2009

YEJune 2008

0

3

6

9

12

15

International

Domestic

YEJune 2013

YEJune 2012

YEJune 2011

YEJune 2010

YEJune 2009

YEJune 2008

($ B

illio

n)

Total overnight visitor expenditure in Australia, Queensland, New South Wales and Victoria

Market share of total overnight visitor expenditure in Australia

Overnight visitor expenditure in Queensland - domestic and international visitors


Over a third of all international visitors to Australia visit Queensland during their trip. Throughout the year there were a range of impacts on international visitation to Australia which were felt in varying degrees by Queensland and the other states, relative to the size and importance of the market involved. These impacts included the effect of domestic economic conditions in the United Kingdom and several European markets, constraints on Japanese access to Australia, and youth unemployment in many countries.

Positive impacts on visitation included the powerhouse growth of the Chinese market, business and employment visitor opportunities generated, in part, by the resources boom, and the increase in visitors and dispersal resulting from the direct access to the United States and Singaporean markets. A range of world class sporting and entertainment events also attracted a broad cross-section of international visitors.

The net result for Queensland was a 5.9 per cent increase to 2.1 million international visitors. This growth was higher than the national rate of 4.8 per cent and ensured Queensland increased its market share of international visitors in the year ended June for the first time in five years.

Domestic visitation continued its recovery after the devastating impacts of the 2011 natural disasters on Queensland and on tourism. During the last year, domestic visitation reached 18 million, the highest financial year result in five years. This growth was driven by holiday travel which comprises 44 per cent of all domestic travel to Queensland.

Throughout 2012-13 , domestic visitation was impacted by a range of issues including national economic uncertainty, further destructive weather events in central and southern Queensland, and intense competition from overseas destinations. Fortunately there were other positive regional effects on domestic visitation including a resurgence in travellers visiting friends and relatives, the effects of the resources boom, localised travel, and increasing numbers of business trips.



Market share of domestic visitors in Australia – year ended June 2008 to year ended June 20135

Market share of international visitors in Australia – year ended June 2008 to year ended June 20135

5 Source: Tourism Research Australia, National and International Visitor Surveys, year ended June 2013. Further information on tourism trends in Queensland can be located at www.te.queensland.com Please note ‘YE’ denotes Year Ended


Visitation to Queensland regions5

The increase in total visitation to Queensland over the year to June 2013 provided strong gains for the gateway regions of Brisbane, Gold Coast and Tropical North Queensland. Visitation to Queensland regions was impacted to varying degrees by local factors throughout the year.

The resource boom has had a range of effects in several regions, depending on the resources involved and the status of the development cycle. For example, the impact of developments in coal-oriented regions moving from construction to production has changed visitor profiles and accommodation demand. In regions impacted by coal seam gas, where the development and construction phase is still several years from completion, holiday travellers have limited access to paid accommodation due to demand from visitors for business and employment.

Following the natural disasters of early 2011, more than one million additional intrastate travellers visited friends and relatives in Queensland in the year ended June 2012. Over the year ended June 2013, some of these gains were lost and the total number of Queenslanders visiting friends and relatives in Queensland has returned to normal growth.

International visitors to Queensland, excluding Brisbane, increased 5.2 per cent over the year to June 2013. China continued to dominate visitation growth, however dispersal from this market was limited to Brisbane, the Gold Coast and Tropical North Queensland. Growth in visitors from the United States, resulting from direct flights and improved capacity, drove an increase in United States visitor dispersal throughout most Queensland regions.

‘Southern GBR’ refers to the Southern Great Barrier Reef region incorporating the Capricorn, Gladstone and Bundaberg regions. ‘Southern Queensland Country’ refers to the Southern Queensland Country region incorporating Toowoomba, Southern Downs and Granite Belt, Western Downs and the South Burnett.

Queensland brand health

A study this year into Queensland’s brand health6 showed the Queensland brand continues to perform strongly compared with competitors. While fewer than 15 per cent of the world’s brands achieve a brand equity7 score of more than three out of a ten point index, the Queensland brand scored 2.8. Two of Queensland’s closest international competitors achieved a brand equity score of just 1.9. The Queensland brand also out-scored similar international destinations such as Thailand, Hawaii, Fiji, and Bali.

6 The Nielsen Company 2013 - Australian residents in Queensland, Sydney and Melbourne7 The brand equity index (BEI) is calculated based on consumers’ responses to: 1) favourite brand 2) brands they would recommend, and 3) willingness to pay higher prices.Source: The Nielsen Company.

0

675

1350

2025

2700

3375

4050

4725

5400

6075

6750

InternationalDomestic

Out

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Whi

tsun

days

Fras

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oast

Mac

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ast

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(’000

)

International and domestic visitors to Queensland regions Year ended June 2013

Within Australia, the Queensland brand out-performed other similar domestic destinations such as Northern New South Wales and Western Australia. Amongst interstate residents, the Queensland brand eased slightly, however the intrastate result remained strong and stable.


Tourism and Events Queensland priorities 2012-13Tourism and Events Queensland has led a range of activities, since its creation in December 2012, critical to developing the foundation for achieving the 2020 goal to double annual overnight visitor expenditure in Queensland.

Major, regional and business eventsEvents Strategy 2020

Tourism and Events Queensland supports regional economies and showcases Queensland as a premier event and tourism destination through building a dynamic events calendar. Events showcase Queensland’s destinations in key domestic and international markets, attracting visitors and generating expenditure for the State. The positive economic impact and community interest a successful event can provide not only builds a sense of local pride but can also foster business confidence and unite the community as a whole.

Tourism and Events Queensland commenced developing the Events Strategy 2020 in collaboration with key stakeholders including industry and local, state and federal government.

Recognising that tourism and events are intrinsically linked, the strategy focuses on:

• developing Queensland events to maximise tourism outcomes before, during and after the event

• marketing events to maximise visitor numbers and promote the destination

• fostering a partnership approach with RTOs, including the incorporation of an event strategy within each region’s Destination Tourism Plan.

The Events Strategy 2020, due for completion in September 2013, will guide Tourism and Events Queensland in identifying, attracting, developing and promoting events that deliver key outcomes contributing to the Queensland economy, attracting visitors, enhancing the profile of the State and fostering community pride.

In 2012-13 Tourism and Events Queensland secured a vibrant calendar of major events for the coming year to contribute to Queensland’s economy and promote the State to interstate and overseas markets. New major events secured to be held in 2013-14 include:

• Sunshine Coast Ironman 70.3 – a new ironman event for Mooloolaba to be held in August 2013 to further cement Queensland’s reputation as the best place for participation events

• Cai Guo Qiang exhibition – works from China’s leading contemporary artist will be on show at the Gallery of Modern Art during the 2013-14 summer (December through to April)

• The Great Barrier Reef Masters – a new masters event for Tropical North Queensland to be held in August 2013

Tourism and Events Queensland supported 44 major events which were staged in 2012-13. Together, these events attracted an estimated 1.37 million attendees and more than 627,000 visitors to the local areas, delivering more than 1.98 million total visitor nights and an economic impact of $302.5 million for Queensland.

Key major events supported in 2012-13 include the:

• 7th Asia Pacific Triennial, with a record 314,182 attendees over the four months of the exhibition at the Gallery of Modern Art

• Gold Coast Airport Marathon, which achieved a record 28,199 participants and delivered an estimated economic impact of $14.75 million

• 30th anniversary of the Noosa Triathlon and Multi-Sport Festival, which delivered more than 82,000 total visitor nights and 16,000 visitors to the Noosa local area.

Business events

Tourism and Events Queensland remains committed to securing business events through its annual funding support for Queensland convention bureaux and Tourism and Events Queensland’s targeted International Bid Fund.

Funding for Queensland convention bureaux aims to provide additional support to bureaux that demonstrate a greater focus on the international market. Seven Queensland convention bureaux secured funding through Tourism and Events Queensland in 2012-13, with each bureau required to match the funding provided dollar for dollar.

Tourism and Events Queensland administers the International Bid Fund which provides a central area for Queensland convention bureaux, convention centres, professional conference organisers and international associations to apply for financial support to secure international association business events for Queensland. Since the inception of the International Bid Fund in June 2011, Tourism and Events Queensland has invested $3.2 million to secure 39 events held between 2012 and 2019.

International Bid Fund results to 30 June 2013 include:

• Anticipated 41,329 delegates;

• Anticipated 197,968 delegate days (visitor nights); and

• Estimated economic impact of $105 million.


Regional Events

Tourism and Events Queensland continued to support regional events through the Regional Development Program, which supports on average between 80 and 100 regional events throughout Queensland each year. Two categories of funding are available through the program including (a) core funding and (b) the significant regional events scheme, which supports multi-year and one-off larger regional events.

In 2012-13, $2.9 million was awarded to support events through the Regional Development Program. Funding can be used for marketing activities, strategic planning, engagement of short-term personnel, and hire of temporary infrastructure. Applications are assessed considering specific criteria including tourism potential, social, community and economic benefit.

Tourism and Events Queensland seeks to expand home-grown events that have the potential to deliver significant tourism outcomes for Queensland. In 2012-13 four events, previously supported through the Regional Development Program, were added to Queensland’s major event calendar:

• Australian Festival of Chamber Music (Townsville)

• Birdsville Races (Outback Queensland)

• Blues on Broadbeach (Gold Coast); and

• Easterfest (Toowoomba, Southern Queensland Country).

Tourism experience and destination development Partnership with RTOs

During the year, Tourism and Events Queensland and Queensland’s RTOs developed 2012-2020 partnership agreements for the State’s 13 destinations, to enhance tourism opportunities and joint decision-making and to increase collaboration and contributions by local government, RTOs, Tourism and Events Queensland and the tourism industry. The agreements include joint marketing and development activities, as well as activities being implemented in each destination as part of the $7 million per year RTO grant funding model.

In 2012-13, Tourism and Events Queensland administered $7 million in financial support to Queensland’s RTO network, including $3.11 million to the 13 RTOs in core grant funding for initiatives that contribute to economic development and support sustainable growth for tourism in Queensland. The remaining $3.89 million was made available through an incentivised, contestable grant, which was leveraged with $3.6 million in partner contributions to deliver 28 marketing and development projects. Partner contributions toward these projects included $1.3 million in new local government funding for tourism.

Destination planning framework

As part of the DestinationQ strategy, a Destination Tourism Plan will be developed for each of the 13 destinations in Queensland. Through a collaborative process the plans will capture the tourism industry, government and community leaders’ intent for the sustainable development of the destinations and tourism in Queensland.

Tourism and Events Queensland has commenced development of the destination tourism planning framework to assist in the development of the plans. Destination tourism plans for each destination will be:

• Locally-led: RTOs are leading the development of the plans for their destination in collaboration with local government, local tourism organisations, regional stakeholders, QTIC, the Department of Tourism, Major Events, Small Business and the Commonwealth Games (DTESB) and Tourism and Events Queensland

• Customised for the destination: the plans will be customised to suit the specific aspirations and capabilities of the destination with a key focus on creating the environment to work towards the 2020 tourism goals

• Joint commitment and role clarity: a key aspect of the plans, they will identify all stakeholders and gain a commitment to deliver on particular strategies or actions

• Targeting 2020: each plan will inform and influence key stakeholders of the direction of the destination in line with the 2020 goals.

Destination capacity study

A study was undertaken with Queensland’s RTOs and Tourism and Events Queensland to identify the preferred responsibility and capacity of each of the state’s 13 RTOs now, and in three years’ time, to identify the resources and capacity required to deliver on the needs of their destination. Outcomes of this study will be utilised by RTOs and Tourism and Events Queensland to work together to avoid duplication and maximise opportunities identified to ensure a sustainable regional tourism network is in place to reach the 2020 tourism targets.

The executive summary of the destination capacity study can be accessed online at http://www.tq.com.au/destinations/queensland/plans-and-strategies/destination-capacity-study/destination-capacity-study_home.cfm.


Aviation attraction

The Queensland Government established the $8 million Attracting Aviation Investment Fund to grow seat capacity into Queensland. The fund is used to secure new aviation business and routes from identified priority markets as well as to enhance existing partnerships.

The Attracting Aviation Investment Fund is administered in partnership with the Department of Tourism, Major Events, Small Business and the Commonwealth Games. Incentive-based funding support for aviation is linked to outcomes set in key performance indicators for each airline route for which a formal application has been approved.

In its first year the fund has increased capacity and secured new international flights for Queensland including:

• China Eastern Airlines’ first direct service between Shanghai and Cairns commenced in October 2012

• Air New Zealand are operating a second season on the Auckland to Sunshine Coast route with twice weekly services from late June to mid-October 2013,and

• AirAsia X will increase its Kuala Lumpur-Gold Coast service to daily from late November 2013.

The fund supports the objectives of the Queensland Tourism Aviation Blueprint to 2016, which provides a strategic framework to drive airline development opportunities for the tourism industry in the State. The aviation blueprint can be accessed online at http://www.tq.com.au/?6D55B23E-D56E-789F-E396-156B2BF383AF.

Drive tourism

The Queensland Government launched the Queensland Drive Tourism Strategy 2012-2015 on 24 January 2013. The strategy includes 29 initiatives across nine government agencies to be implemented in the next three years.

Tourism and Events Queensland targets the drive market to stimulate awareness and interest in touring Queensland. In 2012-13 a range of destination marketing initiatives were conducted in partnership with RTOs to target the long-haul and 400km drive markets. These included Southern Queensland Country’s seasonal campaigns enticing South East Queensland residents to experience a country drive getaway and the Outback Queensland ‘Eventures’ campaign which links signature events across the region to motivate the long-haul drive market during peak season.

Industry development

A vast portfolio of industry development and education workshops are managed by Tourism and Events Queensland and implemented across the state each year including domestic and international ready workshops and a digital coaching program.

Tourism education and industry development workshops and programs were delivered throughout the state to encourage increased business capability and capacity. In 2012-13, over 2,700 industry representatives attended business development workshops and programs, with over 95 per cent of participants reporting they found the program useful for their business.

Hero experiences

In 2012-13 Tourism and Events Queensland worked with RTOs to develop a suite of hero experiences for each destination, conducting 12 workshops with 225 industry participants. Hero experiences are the iconic experiences that define the ‘essence’ of a destination (those which are truly unique, memorable and engaging) and provide the destination with a competitive advantage.

Digital Ready

In 2012-13, 2,020 Queensland

tourism operators attended

digital ready workshops, 485

received one-on-one mentoring

and coaching sessions and 456

participated in webinars as part

of the Digital Ready program.

The purpose of the Digital Ready

program is to improve operators’

online presence and engage

with the increasing number of

consumers planning and booking

their travel online.

Feedback from tourism operators

about the program has been

consistently positive, with 98 per

cent of respondents reporting

the program was ‘very useful’

or ‘useful’ for their business and

overall, were satisfied with the

program. The strong success of

the program can be attributed

to its accessibility, the quality of

the digital coaches and mentors,

and the tailored content to suit

the skills, abilities and particular

situations of Queensland tourism

operators.


Marketing and promoting tourism in Queensland2020 Strategic Marketing Plan

One of the key initiatives identified at the 2012 DestinationQ forum was the need to develop a strategic marketing plan for tourism and events in Queensland.

The 2020 Strategic Marketing Plan was developed with extensive consultation with RTOs, industry, leaders and visionaries in the tourism and events sectors, stakeholders and partners including Tourism Australia, QTIC, airlines and others. It links the themes and guidelines in the DestinationQ Blueprint 2012-2015 and will inform the development of individual Destination Tourism Plans for each destination in 2013-14.

The destination-based philosophy of the plan, combined with the integrated focus of Tourism and Events Queensland, creates an unparalleled opportunity for Queensland to achieve a best practice, comprehensive approach to generating overnight visitor expenditure in the state. There are 28 guiding principles at the centre of the plan covering a range of areas including source markets, destinations, visitor segments, reason for travel and how marketing will be implemented. A copy of the 2020 Strategic Marketing Plan can be accessed online at http://www.tq.com.au/marketing/2020_strategic_marketing_plan/2020_strategic_marketing_plan_home.cfm.

Destination marketing

Between January and June 2013 a range of targeted and innovative destination brand campaigns featured in the domestic marketplace to drive visitation and build awareness of the diverse range of products and experiences on offer throughout Queensland.

The campaigns formed part of around 150 projects undertaken as a result of the extra $20 million investment in tourism in 2012-13 to support growth in intrastate, interstate and international visitation for Queensland.

Dedicated destination campaigns included:

• Gold Coast ‘Famous for fun…and action’ showcased the Gold Coast as a destination that is fun, vibrant and energetic.

• Sunshine Coast ‘Make the most of the moment’ promoted the region as a place to relax, unwind and rejuvenate and take a break from fast-paced society.

• Tropical North Queensland ‘One day in paradise’ involved 20 innovative and creative short films that were filmed in the region and posted on YouTube for viewers to share and vote on.

• Fraser Coast ‘Harvey and the humpbacks’ promoted the region as a premier whale watching destination to the intrastate market.

• Brisbane ‘Autumn/Winter’ campaign focused on the appeal of the city as a winter destination with a strong events focus.

• Southern Great Barrier Reef ‘Where great begins’ covered the three regions of Bundaberg, Gladstone and Capricorn Coast, showcasing experiences where visitors can stay alongside the reef, wake-up and snorkel directly off the shore.

• Outback Queensland ‘Eventures’ used events as a leverage to entice people to experience the outback, particularly the intrastate visitor market.

• Southern Queensland Country campaign focused on experiencing the diversity of the seasons in the region (including Summer, Autumn and Winter) targeting intrastate visitors predominantly in Brisbane and South East Queensland.

International marketing

Tourism and Events Queensland works closely with trade and industry partners in key international source markets to promote the Queensland holiday experience.

During the year over 130 media outlets and 490 trade partners were hosted on familiarisation trips to showcase Queensland. Tourism and Events Queensland works closely with Tourism Australia and other partners in the delivery and coordination of these trips.

Tourism and Events Queensland, along with other State and Territory Tourism Organisations, was involved in Tourism Australia’s ‘Best Jobs in the World’ campaign which attracted more than 330,000 applications from 196 countries. There were more than 100,000 applications for the Queensland position and almost 10,000 video entries uploaded.

Tourism and Events Queensland leveraged the launch of the Finding Nemo 3D film in the United Kingdom in March 2013 through partnership activity with Disney Pixar. Activity included a fully integrated marketing campaign and trade activity designed to increase travellers’ aspiration to visit Queensland and to generate sales.

In China, Tourism and Events Queensland focused on working with key aviation partners. To promote the introduction of direct services between Guangzhou and Brisbane, Tourism and Events Queensland partnered with China Southern Airlines and implemented marketing activity aimed at increasing Chinese visitation to Brisbane. Publicity and passenger number targets were exceeded, with over $5 million of promotion and publicity being generated against the target of $2 million.


Queensland recovery activities

Tourism and Events Queensland quickly responded to weather events which caused flooding in some parts of Queensland in January 2013, implementing a number of initiatives including the Australia Day II campaign and the Events Flood Assistance Program.

Australia Day II

The Australia Day II campaign was launched to promote the message that Queensland was open for business and to curb cancellations on forward bookings. The idea for the campaign was to celebrate Australia Day again in Queensland, with the message in media placements encouraging Queenslanders and visitors to spend the day of 23 February 2013 doing what they would have done on Australia Day.

TEQ worked closely with RTOs and local councils to identify potential community events that could be hosted on 23 February 2013 to encourage travel across Queensland. The campaign was endorsed by several organisations including Dan Murphy’s, Woolworths, Coles and Slurpee.

Post campaign analysis showed that over eight in ten Queenslanders were aware of the Australia Day II campaign, which was seen as a fun, energetic and lively campaign that performed above average in relation to Nielsen’s benchmark measure, based on the campaign’s relevance, persuasion impact and communication with the audience.

Events Flood Assistance Program

The Events Flood Assistance Program (EFAP) was created to provide Queensland events held in declared flood-affected regions the chance to apply for funding to ensure events could continue as planned or be re-staged. Funding through this program was used to cover marketing costs to build awareness and visitation, to engage specialised personnel to develop the event, and to hire temporary infrastructure to improve the visitor experience. On 23 May 2013 the Minister announced 17 successful applicants who shared in $150,000 of funding.

Efficient business operations

The merge of Tourism Queensland and Events Queensland resulted in a number of operational efficiencies. Tourism and Events Queensland’s procurement plan and associated procedures incorporate the value-for-money framework and guide the efficient and effective conduct of Tourism and Events Queensland’s operations consistent with the State Government procurement policy.


Annual Performance Statement 2012-13

Prior to the creation of Tourism and Events Queensland in December 2012, the former Tourism Queensland and Events Queensland organisations had committed to a combined seven service standard targets in the 2012-13 Queensland State Budget – Service Delivery Statements. Results against each target are detailed in the following table.

Service standards Notes 2012-13 Target/estimate

2012-13 Actual

Former Events Queensland Major events – Number of event submissions received and assessed 1, 2 70 64

Events Queensland Regional Development Program – Number of event submissions received and assessed

1, 3 140 168

Former Tourism QueenslandAdvertising Value Equivalent of Tourism Queensland’s Global publicity activity 4 $177.7 million $298.5 million

Number of unique visitors to Tourism Queensland’s websites 1, 5 4.8 million 4.774 million

Value of cooperative investment in marketing campaigns 6 $7 million $9.936 million

Industry satisfaction with Tourism Queensland’s development programs 7 70% 98%

Number of total records listed on the Australian Tourism Data Warehouse (ATDW)

1 4,800 5,307

1 A number of measures across the former Tourism Queensland and Events Queensland organisations have been discontinued for the 2013-14 period. This is largely as they no longer align with the new organisation’s focus and are not an indication of the efficiency or effectiveness of the service area. Discontinued measures that remain relevant to Tourism and Events Queensland’s services may continue to be reported internally as part of Tourism and Events Queensland’s operational reporting processes.

2 The number of complete major events submissions received in 2012-13 was lower than previous years. A number of event proposals received did not contain the full information required to be able to fully assess the opportunity and therefore are not included in the total result.

3 The number of applications received for the Regional Development Program was above target due to active promotion of round closure dates and reminders being sent to the database.

4 The global publicity target for 2012-13 was exceeded by over $100 million. The strong result was largely assisted by publicity activity implemented for the Solar Eclipse in November 2012 (which generated $31 million in global publicity value for Queensland) and by a significant growth in International media exposure in China (where Queensland was heavily featured on television). Publicity values are only included for traditional media such as print and broadcast; social media and online publicity is not assigned a value or included in the result.

5 The slight decline in website visitation is the result of increased use of partner websites as a call to action for campaign activity.

6 The cooperative income target was exceeded due to Tourism and Events Queensland taking the lead on multiple cooperative projects which attracted higher partner contributions than were forecast. This approach supports the Government’s commitment to destination partnerships at a regional level and also reflects how Tourism and Events

Queensland leverages its budget from partners in international source markets.

7 The result is based on survey responses received from over 2,000 attendees at Tourism and Events Queensland industry development workshops and programs. The high satisfaction result was largely driven by the success of the Digital Ready program in 2012-13.

In addition to the measures above, the Tourism and Events Queensland Strategic Plan 2012-2016, published in December 2012, included the following performance indicators: brand equity, campaign awareness, visitor expenditure, market share and aviation access. Results for visitor expenditure, market share and brand equity measures have been reported in the Industry performance: tourism and events in Queensland section of this report.

Notes


Tourism and Events Queensland’s board of directors is responsible for the overall performance of the organisation. A new charter for the Tourism and Events Queensland board was confirmed in February 2013, setting out the principles for the operation of the board of directors, and describing the duties and responsibilities of the board.

The primary 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 and events industries, employees, suppliers and local communities. Furthermore, the board is to ensure Tourism and Events Queensland performs its functions in a way that is appropriate, effective and efficient.

Duties and responsibilities of the board include:

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

• Agreeing performance targets and monitoring performance

• Approving the strategic direction and related objectives for Tourism and Events Queensland

• Ensuring Tourism and Events Queensland’s direction is aligned to the needs of industry and the objectives of the government

• 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.

The various powers, duties and responsibilities of the board may be delegated to one or more committees of the board.

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 Tourism. As at 30 June 2013, Tourism and Events Queensland’s board had fourteen directors including the Director-General of the Department of Tourism, Major Events, Small Business and the Commonwealth Games. Members are appointed in line 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.

Corporate governance

Board performance

Each year the board conducts an evaluation of its performance as part of its commitment to the ongoing development of both individual directors and the board as a whole.

Between board meetings, there is continuing contact between the Chairman and Chief Executive Officer to discuss major policy and operational 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 relevant to Tourism and Events Queensland’s operations and performance, including financial performance.


The Audit and Remuneration Committee’s five main responsibilities are to:

• Assess and contribute to the audit processes in relation to the identification of risks and threats to Tourism and Events Queensland, taking into account the environment, financial and other factors in which Tourism and Events Queensland operates and its performance management framework;

• Assess and enhance Tourism and Events Queensland’s corporate governance, including its systems of internal control, risk management and internal audit activities;

• Evaluate the quality and facilitate the practical discharge of the internal audit function, particularly in the areas of planning, monitoring and reporting;

• Through the internal audit function, oversee and appraise Tourism and Events Queensland’s financial and operational reporting; and

• Review and make recommendations to the board on appropriate remuneration structure and policies.

During the year, issues addressed by the Committee and reported to the Board included:

• Reviewing annual financial statements and reports prior to board consideration;

• Reviewing and assessing management reports, internal audit reports and external audit reports on matters impacting the financial statements;

• Audit planning – reviewing and approving the internal audit plan and agreeing on areas of focus and approach;

• Reviewing internal and external audit reports and, where weaknesses in controls or procedures were identified, assessing whether management’s actions to improve controls or procedures were adequate and appropriate;

Board committees

To better concentrate on strategy and performance management matters, the board delegates certain duties to board committees.

1. Events sub-committee

The role of the Events sub-committee is to assess and consider major event proposals and make a recommendation to the Board in accordance with approved delegation levels. The Events sub-committee was formed in December 2012 and members are shown in the Events sub-committee table on page 25.

2. Regional Events sub-committee

The Regional Events sub-committee meets twice per year as part of the assessment process for each round of funding of the Tourism and Events Queensland Regional Development Program. The sub-committee review each funding application and provide recommendations to the full Tourism and Events Queensland Board, that are subsequently provided to the Minister for approval.

The sub-committee also provide guidance on the governance of the Regional Development Program and are consulted on any material changes to the guidelines and overall process of the program.

3. Audit and Remuneration Committee

The Audit and Remuneration Committee assists the board of directors in fulfilling its corporate governance and oversight responsibilities in relation to Tourism and Events Queensland’s financial reporting, internal control structure, risk management systems, and the internal and external audit functions, as well as ensuring that appropriate remuneration policies are designed to meet the needs of Tourism and Events Queensland and to enhance corporate and individual performance. The Committee regularly reports to the Board of Directors on its activities and recommendations.

• Tracking implementation of agreed internal and external audit recommendations (all external audit recommendations were implemented);

• Reviewing the risk register;

• Assessing independence of internal and external audit functions; and

• Reviewing and observing the terms of the Audit and Remuneration Committee Charter and the Internal Audit Charter in line with Queensland Treasury’s Audit Committee Guidelines.

The Committee members during 2012-13 are shown in the Audit and Remuneration Committee meetings table on page 26. The Chief Executive Officer, the Director Finance, the Manager Financial Governance, the Legal Advisor and the 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.

The Auditor-General of Queensland conducted a performance audit on tourism industry growth and development during 2011-12. The former agencies, Tourism Queensland and Events Queensland, were selected for review as part of this audit. The final report was tabled in the Queensland Parliament on 27 November 2012 and can be accessed online at http://www.qao.qld.gov.au/Report-3-:-2012-13. Recommendations from the review and actions taken to address each recommendation were presented to the Tourism and Events Queensland Audit and Remuneration Committee for consideration in February 2013. The Committee will continue to monitor and consider the recommendations.


Board meetings

During the year eight board meetings were held.

The names, positions and appointment terms for members of the Tourism and Events Queensland board are outlined in the following table.

Name Position Appointment Date End DateStephen Gregg Chairman 3 August 2012 2 August 2015Julieanne Alroe Deputy

ChairmanMember 2 September 2010

Reappointed member 1 July 2013

Deputy Chairman appointment 1 November 2011

Reappointed Deputy Chairman 1 November 2012

30 June 2013

Term as member expires 2 August 2015

Term as Deputy Chairman expired 31 October 2012

Term as Deputy Chairman expired 2 August 2013

Libby Marshall Member 10 August 2012 2 August 2015Garth Prowd OAM Member 10 August 2012 2 August 2015Ian Gillespie Member 10 August 2012 2 August 2015James Corvan Member 10 August 2012 2 August 2015Phillip di Bella Member 10 August 2012 2 August 2015Elizabeth Ward Member 10 August 2012 2 August 2015Paul Donovan Member 10 August 2012 2 August 2015Dr Richard Eden Member 3 April 2012 Current Gary Smith Member 20 December 2012 2 August 2015Alan Smith Member 20 December 2012 2 August 2015Anna Guillan Member 20 December 2012 2 August 2015Dr Judith McLean Member 20 December 2012 2 August 2015

Dr Richard Eden was appointed to the Board as a permanent member under the Tourism and Events Queensland Act 2012. Prior to this, Dr Eden was an ex-officio member as Director-General of the administering Department (in line with the Tourism Queensland Act 1979).


The names, positions and appointment terms for members of the board of the former Tourism Queensland (July to August 2012) are outlined in the following table.

Name Position Appointment Date End DateDon Morris AO Chairman 10 December 2004

Chairman since 21 July 2007

Reappointed 23 December 2008

Reappointed 1 July 2011

Term expired 10 December 2008

Term expired 30 June 2011

Resigned 2 August 2012

Grant Cassidy Member 15 March 2007

Reappointed 8 January 2009


Reappointed 1 November 2011

10 December 2008

Term expired 28 February 2009

Term expired 31 October 2011

9 August 2012

Pamela Hardgrave Member 1 July 2009


31 October 2011

9 August 2012

Peter Lynch Member 1 July 2009


31 October 2011

9 August 2012

Peter Savoff Member 1 July 2009


31 October 2011

9 August 2012

Tony Baker Member 1 July 2009


31 October 2011

9 August 2012

Adrian Bram Member 1 November 2011 9 August 2012Danielle Duell Member 1 November 2011 9 August 2012

Events sub-committee meetings

During the year two Events sub-committee meetings were held. The names, positions and appointment terms for members of the committee are outlined in the following table.

Name Position Appointment Date End DateStephen Gregg Chairman 13 December 2012 CurrentDr Judith McLean Member 13 December 2012 CurrentJames Corvan Member 13 December 2012 CurrentPaul Donovan Member 13 December 2012 CurrentGarth Prowd OAM Member 13 December 2012 CurrentGary Smith Member 13 December 2012 Current

Name Position Appointment Date End DateDr Judith McLean Chairman 9 April 2013 CurrentDr Richard Eden Member 9 April 2013 CurrentElizabeth Ward Member 9 April 2013 Current

Regional Events sub-committee meetings

During the year there was one meeting of the Regional Events sub-committee. The names, positions and appointment terms for members of the committee are outlined in the following table.


Audit and Remuneration Committee meetings

A new Audit Committee was appointed in February 2013. Prior to the formation of the new Committee, the functions usually delegated to the Committee were functions of the full Board. The Audit and the Remuneration Committees were merged on 9 April 2013 to become the Audit and Remuneration Committee.

During the year the following four meetings were held:

• One Audit Committee meeting with the full Board;

• One Audit Committee meeting; and

• Two meetings of the Audit and Remuneration Committee.

Remuneration committee meetings

During the year there were no remuneration committee meetings held. The Remuneration Committee was merged with the Audit Committee on 9 April 2013.

Name Position Appointment Date End DateGrant Cassidy Chairman 11 August 2009


31 October 2011

9 August 2012

Peter Lynch Member 11 August 2009


31 October 2011

9 August 2012

Gary Smith Chairman 11 February 2013 CurrentAnna Guillan Member 11 February 2013 CurrentJulieanne Alroe Member 3 April 2013 Current

Name Position Appointment Date End DateDon Morris AO Chairman 21 July 2007

Reappointed 23 December 2008


31 October 2011

Term expired 30 June 2011

Resigned 2 August 2012

Tony Baker Member 11 August 2009


31 October 2011

9 August 2012

Peter Savoff Member 8 December 2011 9 August 2012


Internal audit

Internal audit advises all levels of management and the Audit and Remuneration Committee on Tourism and Events Queensland’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 Tourism and Events Queensland’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 approved by the Board;

• 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 authorised auditors;

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

• Internal audits were conducted in the areas of procurement and contestable grants.

Risk management

Tourism and Events Queensland has an organisation-wide risk management framework, including a risk management policy and a risk register. As part of the integration of Tourism Queensland and Events Queensland, the risk register is to be reviewed to ensure that it is aligned to the organisation’s new business objectives and structure. This review will be undertaken in the latter half of 2013 by representatives from the Tourism and Events Queensland Board, internal audit advisors and senior management.

The Audit and Remuneration Committee is responsible for reviewing the risk management framework, the risks identified and their management to assess whether management’s mitigation processes are adequate and appropriate. The Committee reviews the relevance and completeness of the risks identified and reports to the Board. Risk management is closely monitored and confirmed by the Board.

External scrutiny

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

• Tourism and Events Queensland consolidated financial statements for 2012-13 on 22 August 2013;

• Tourism and Events Queensland Employing Office financial statements for 2012-13 on 22 August 2013;

• Asia Pacific Screen Awards Ltd financial statements for 2012-13 on 22 August 2013; and

• Gold Coast Events Management Ltd financial statements for 2012-13 on 6 August 2013.

There were no significant findings or issues identified by an external review in 2012-13.


Related Entities

The controlled entities of Tourism and Events Queensland are Tourism and Events Queensland Employing Office, Gold Coast Events Management Ltd, Gold Coast Events Co Pty Ltd and Asia Pacific Screen Awards Ltd.

Controlled entity Establishing legislation

Role/Responsibilities

Achievements* Costs $M

Tourism and Events Queensland Employing Office

Tourism and Events Queensland Act 2012

Provide employment services to the Corporation

• Managed the work performance arrangements for the Corporation and employed staff to undertake the work of the Corporation

15.06

Gold Coast Events Management Ltd

Corporations Act 2001

Operate the Gold Coast Airport Marathon, the Pan Pacific Masters Games and the Great Barrier Reef Masters Games.

• 28,199 people from around the world participated in the 34th annual Gold Coast Airport Marathon.

• 12,259 participants, official supporters and registered umpires from around the world attended the 8th edition of the Pan Pacific Masters Games, a multi-sport masters event held on the Gold Coast

1.92**

Gold Coast Events Co Pty Ltd


Manage a portfolio of motorsport events in Queensland

• Townsville 400 held 6-8 July 2012

• Ipswich 300 held 3-5 August 2012

• Gold Coast 600 held 19-21 October 2012

0.32***

Asia Pacific Screen Awards Ltd


Host the annual Awards ceremony in November to recognise and promote the cinematic excellence and cultural diversity of the Asia Pacific region

• The 2012 Awards ceremony was held at the QPAC Playhouse, Brisbane on Friday 23 November and was attended by 700 film industry and corporate guests from around the world.

0.28**

*Achievements are for the full financial year 2012-13 **Includes expenses from date of acquisition only (11 December 2012) ***Includes expenses from date of acquisition only (11 December 2012). Amounts relating to sponsorship of events omitted due to commercial in confidence considerations.


Statutory obligations

A summary of Tourism and Events Queensland’s recent progress towards ensuring compliance with statutory obligations is as follows:

1. Public Sector Ethics Act 1994

Tourism and Events Queensland revised its Code of Conduct to align with the four ethics principles and values outlined in the Public Sector Ethics Act 1994. Communication, consultation and approval were undertaken in accordance with the Act including staff education and training.

Tourism and Events Queensland’s Code of Conduct 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 Tourism and Events Queensland’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 of Conduct is provided to all new employees during their induction and 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.

As part of staff performance reviews, employees and their managers must confirm that the employee has adhered to the Code of Conduct and met performance expectations regarding their conduct.

Alignment of human resources management procedures and practices has also been put in place in accord with the Code of Conduct.

2. Work Health & Safety Act 2011

During 2012-13 Tourism and Events Queensland continued to review and update policies and processes to ensure continued compliance with the Work Health & Safety Act 2011, which came into effect 1 January 2012. An external provider was engaged by Tourism and Events Queensland to conduct a review of, and provide advice with regard to the work health and safety management system currently in place across the organisation. The review was conducted between January and February 2013. Training and consultation will be a key focus for the organisation during 2013-14.

3. Public Interest Disclosure Act 2010 (Qld)

The Public Interest Disclosure Act 2010 (Qld) replaces the Whistleblowers Protection Act 1994 (Qld) and received assent on 20 September 2010. Tourism and Events Queensland reviewed existing policies and procedures relating to whistleblowing and public interest disclosures and drafted a new Public Interest Disclosure Policy. The new policy was approved by the former Tourism Queensland board in November 2012.

Public Sector Renewal Program

In progressing the objectives of the Public Sector Renewal Program, Tourism and Events Queensland has commenced development of an Open Data Strategy. Once approved, the Strategy will enable data obtained by Tourism and Events Queensland to be made publicly available in line with Tourism and Events Queensland’s open data principles.

Information relating to overseas travel by Tourism and Events Queensland staff in 2012-13 has been published through the Queensland Government Open Data Website (www.qld.gov.au/data). Whilst Tourism and Events Queensland engaged contractors during 2012-13, no consultants were used.

Information systems and recordkeeping

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.

Tourism and Events Queensland uses the HP-TRIM (Total Records and Information Management) electronic document and records management system adopted in 2007-08 by the former Tourism Queensland. The majority of staff have received training in TRIM and have the responsibility to capture and make accessible business transactions and activities in TRIM with an appropriate assigned retention period for each record. Other systems record certain other information, e.g. FinanceOne for financial records and transactions, and Microsoft Exchange for all internal and external electronic communications. Tourism and Events Queensland has an agreement with Datacom to provide the backup, archival and retrieval of all digital records held in TRIM, FinanceOne, Exchange and other systems.

Tourism and Events Queensland also has an agreement with Recall Information Management Australia Pty Ltd, in accordance with the Queensland Government Chief Procurement Office, to store, retrieve and destroy its physical documents and records, as required. Tourism and Events Queensland does not have a formally assigned role for records management, nor has Tourism and Events Queensland commenced activities to digitise all its legacy physical records, however the significant majority (estimated >98%) of its contracts, financial records, and communications are held digitally in TRIM or other systems. There have been no breaches of Tourism and Events Queensland’s information security. Tourism and Events Queensland is planning to develop its Retention and Disposal Schedule in 2013-14.


Tourism and Events Queensland is committed to attracting and retaining a highly skilled workforce to achieve its set objectives. At 30 June 2013, there were 154 full-time equivalent employees (FTEs) for the consolidated entity, comprising of:

• 16 FTEs employed by Tourism and Events Queensland parent entity;

• 122 FTEs employed by Tourism and Events Queensland Employing Office; and

• 16 FTEs employed by Gold Coast Events Management Ltd, a controlled entity.

Excluding the controlled entity, Tourism and Events Queensland’s permanent retention rate of employees was 73 per cent and the permanent separation rate was 27 per cent.

The quality of Tourism and Events Queensland’s workforce is imperative to the achievement of its aims. The following activities and programs undertaken in 2012-13 were designed to enhance organisational effectiveness:

1. Learning and development

A learning framework outlining a range of specialised learning programs was designed for staff. A management leadership program was also provided with a focus to increase personal and organisational effectiveness, including building current and future leadership capability, succession planning and retention.

2. Healthy, Wealthy & Wise initiatives

Healthy, Wealthy & Wise has become one of the organisation’s cornerstone programs, engaging employees with non-monetary rewards. The program provides staff with optional benefits and a wide range of information that adds value to both work and personal lives. Activities offered in 2012-13 included staff skin cancer checks, flu vaccinations and general health checks. The program offers effective ways to increase job satisfaction, work/life balance and health in general.

3. Flexible working arrangements

Tourism and Events Queensland believes it is important to support employees in maintaining a balance between work and their personal lives. This contributes positively to their productivity and 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 and personal lifestyles including:

• Work from home arrangements

• Telecommuting

• Part-time arrangements

• Job share

• Career development break

• Purchasing additional leave, and

• Provision of parenting facilities.

4. Performance framework

The performance framework ensures individual goals and behaviours are linked to corporate goals and business plans. The framework provides clear and practical guidance to assist employees 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.

5. Employee consultative committee

Tourism and Events Queensland 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 Tourism and Events Queensland areas to be involved in the outcome of initiatives.

Workforce planning, attraction and retention


Financial summary

The reporting entity

The Tourism and Events Queensland Act 2012 was passed in the Queensland Parliament on 11 December 2012. The Act provides for:

• The continued existence of Tourism Queensland as Tourism and Events Queensland;

• The continued existence of the Tourism Queensland Employing Office, a controlled entity of Tourism Queensland, as the Tourism and Events Queensland Employing Office;

• The transfer of the assets and liabilities of Events Queensland Pty Ltd to Tourism and Events Queensland as at 11 December 2012;

• The transfer of controlled entities of Events Queensland Pty Ltd as controlled entities of Tourism and Events Queensland as at 11 December 2012. The controlled entities transferred were Gold Coast Events Co. Pty Ltd, Asia Pacific Screen Awards Ltd and Gold Coast Events Management Ltd.

The expenses and revenues of Events Queensland and its controlled entities for the period 1 July 2012 to 10 December 2012 are not reflected in Tourism and Events Queensland’s Statement of Comprehensive Income. This is due to the transfer of Events Queensland and its controlled entities being accounted for as an adjustment direct to contributed equity in accordance with APG 9 Accounting for Contributions by owners and distributions to owners.

The 2012-13 consolidated financial statements include the transactions for Tourism Queensland and the Tourism Queensland Employing Office up to 10 December 2012 and the transactions for Tourism and Events Queensland and controlled entities from 11 December to 30 June 2013. The parent entity financial statements consist of Tourism Queensland up to 10 December 2012 and Tourism and Events Queensland from 11 December to 30 June 2013.

Comparatives provided in the financial statements for 2011-12 reflect the former Tourism Queensland only.

Financial statements for Tourism and Events Queensland controlled entities, Tourism and Events Queensland Employing Office, Asia Pacific Screen Awards Ltd and Gold Coast Events Management Ltd, have been published on the Tourism and Events Queensland website www.te.queensland.com.

Financial performance

Successful delivery of Tourism and Events Queensland services requires management of costs within budget and value-for-money expenditure in accord with the State Government procurement policy. For the 2012-13 financial year Tourism and Events Queensland had consolidated income of $89.46 million, of which $74.98 million was grant funding by the State Government.

Total consolidated expenses for 2012-13 were $97.37 million, of which $68.31 million was invested in marketing, development and events promotion and staging initiatives, and grants to regional tourism organisations. Consolidated employee expenses were $17.88 million. The majority of employees work directly on marketing, development and events promotion and staging initiatives both in Australia and overseas.

The deficit operating result of the consolidated reporting entity of $7.91 million in 2012-13 arose due to:

• The transfer of the assets and liabilities of Events Queensland and its controlled entities on 11 December 2012 which resulted in the expenses and revenues of these entities for the period 1 July 2012 to 10 December 2012 not being reflected in the Statement of Comprehensive Income; and

• Expenditure incurred during 2012-13 for which income was received in prior financial years.


Tourism and Events Queensland 2008-09 $M

2009-10 $M

2010-11 $M

2011-12 $M

2012-13* $M

Total income 70.64 77.28 77.36 66.96 89.46Grants and other contributions 45.89 63.05 61.33 56.18 74.98Cooperative marketing income 10.58 9.91 11.98 7.94 9.94Marketing, promotion and development initiatives**

45.73 50.20 51.53 39.80 -

Marketing, development and events promotion and staging initiatives***

- - - - 68.31

Employee and operations expenses (in Queensland and overseas)

22.72 25.93 28.45 26.72 29.06

Total expenses 68.45 76.13 79.98 66.51 97.37Marketing, promotion and development initiatives as a % of total income

64.7% 65.0% 66.6% 59.4% -

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

- - - - 76.4%

*Includes expenses and revenues of the former Events Queensland Pty Ltd and controlled entities from 11 December 2012 only. **Includes grants paid to regional tourism organisations and excludes marketing, promotion and development employee expenses. *** Includes grants paid to regional tourism organisations and excludes marketing, development and events promotion and staging employee expenses.

At 30 June 2013, total assets of the consolidated reporting entity were $28.13 million and total liabilities were $19.42 million. Equity of $8.71 million includes contributed equity relating to the transfer of the net assets of Events Queensland Pty Ltd and its controlled entities.


Introduction

Tourism and Events Queensland (“the Corporation” or “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 head office and principal place of business of the Corporation is:

30 Makerston Street BRISBANE QLD 4000

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

On 11 December 2012 the Queensland parliament passed the Tourism and Events Queensland Act 2012. The Act provides for the continued existence of Tourism Queensland as Tourism and Events Queensland and the Tourism Queensland Employing Office as the Tourism and Events Queensland Employing Office (“the Employing Office”). The Employing Office is a statutory body for the purposes of the Financial Accountability Act 2009 and is a subsidiary of the Corporation.

Tourism and Events QueenslandFinancial Report

On commencement of the Act, the assets and liabilities of Events Queensland Pty Ltd (Events Queensland) were transferred to the Corporation together with Events Queensland’s controlled entities namely, Gold Coast Events Co. Pty Ltd, Asia Pacific Screen Awards Ltd and Gold Coast Events Management Ltd.

Events Queensland was a proprietary company limited by shares. The three (3) issued and paid up ordinary shares of the company were owned by the State of Queensland and the company operated under the auspices of the Department of Tourism, Major Events, Small Business and Commonwealth Games.

Additional disclosure regarding the subsidiaries transferred to the Corporation and the impact of the above changes is provided at Note 22 and Note 23.

These Statements have been prepared:

• to satisfy the provisions of the Financial Accountability Act 2009 and other prescribed requirements;

• to provide accounting for the custody and management of moneys and resources under the control of the Corporation; and

• to disclose the results of operations of the Corporation during the year and to indicate the financial position of the Corporation at the close of the year.

These consolidated statements have been prepared under AASB127 Consolidated and Separate Financial Statements. Information has been provided for the economic and parent entity for the period ending 30 June 2013.

Separate Statements have been prepared for the Tourism and Events Queensland Employing Office, Asia Pacific Screen Awards Ltd and Gold Coast Events Management Ltd. The Statements may be obtained on the Corporation’s website www.te.queensland.com.

The Statements are general purpose in nature and provide a full presentation of the financial activities of the Corporation.


Tourism and Events Queensland Consolidated Statements of Comprehensive Income for the year ended 30 June 2013

Consolidated Parent

Income from Continuing Operations Notes 2013 $000

2012 $000

2013 $000

2012 $000

RevenueGrants and other contributions 2 74,982 56,183 74,982 56,183Cooperative marketing income 9,900 7,942 9,936 7,942Other revenue 2 4,576 2,837 3,580 2,837Total Income from Continuing Operations 89,458 66,962 88,498 66,962

Expenses from Continuing OperationsMarketing, development and events promotion and staging expenses 3 61,134 35,021 64,638 35,021

Grant payments 4 7,172 4,774 7,172 4,774Employee expenses 5 17,883 17,015 16,948 17,015Depreciation and amortisation 6 535 869 370 869Other expenses 7 10,642 8,834 10,248 8,834Total Expenses from Continuing Operations 97,366 66,513 99,376 66,513Operating Result from Continuing Operations (7,908) 449 (10,878) 449Other Comprehensive Income - - - -Total Comprehensive Income (7,908) 449 (10,878) 449

The accompanying notes form part of these Financial Statements.


Tourism and Events Queensland Consolidated Statements of Financial Position as at 30 June 2013

Consolidated Parent

Notes 2013 $000

2012 $000

2013 $000

2012 $000

Current AssetsCash and cash equivalents 9 16,230 10,615 6,417 10,615Receivables 10 10,726 1,471 10,079 1,471Forward exchange contracts receivable 19 (d) - 931 - 931Other 11 305 87 119 87Total Current Assets 27,261 13,104 16,615 13,104

Non-Current AssetsProperty, plant and equipment 12 859 363 740 363Intangibles 13 12 82 12 82Investments 23 - - 3,351 -Total Non-Current Assets 871 445 4,103 445Total Assets 28,132 13,549 20,718 13,549

Current LiabilitiesPayables 14 16,116 5,672 14,507 8,455Accrued employee benefits 15 2,308 2,507 151 313Forward exchange contracts payable 19 (d) - 985 - 985Other provisions 16 57 - - -Other 18 (b) 90 83 90 83Total Current Liabilities 18,571 9,247 14,748 9,836

Non-Current LiabilitiesAccrued employee benefits 15 623 589 2 -Other 18 (b) 225 - 225 -Total Non-Current Liabilities 848 589 227 -

Total Liabilities 19,419 9,836 14,975 9,836Net Assets 8,713 3,713 5,743 3,713

EquityContributed equity 22 12,908 - 12,908 -Accumulated surplus (4,195) 3,713 (7,165) 3,713Total Equity 8,713 3,713 5,743 3,713



Tourism and Events Queensland Consolidated Statements of Changes in Equity for the year ended 30 June 2013

Consolidated

Accumulated Surplus/Deficit

$000

Contributed Equity

$000

TOTAL

$000

Balance at 1 July 2011 3,264 - 3,264Operating result from continuing operations 449 - 449Other comprehensive income - - -Balance at 30 June 2012 3,713 - 3,713

Balance at 1 July 2012 3,713 - 3,713Operating result from continuing operations (7,908) - (7,908)Other comprehensive income - - -Transactions with Owners as Owners- Net assets transferred from Events Queensland - 12,908 12,908Balance at 30 June 2013 (4,195) 12,908 8,713

Parent

Accumulated Surplus/Deficit

$000

Contributed Equity

$000

TOTAL

$000

Balance at 1 July 2011 3,264 - 3,264Operating result from continuing operations 449 - 449Other comprehensive income - - -Balance at 30 June 2012 3,713 - 3,713

Balance at 1 July 2012 3,713 - 3,713Operating result from continuing operations (10,878) - (10,878)Other comprehensive income - - -Transactions with Owners as Owners- Net assets transferred from Events Queensland - 12,908 12,908

Balance at 30 June 2013 (7,165) 12,908 5,743



Tourism and Events Queensland Consolidated Statements of Cash Flows for the year ended 30 June 2013

Consolidated Parent

Notes 2013 $000

2012 $000

2013 $000

2012 $000

Cash flows from operating activitiesInflows:Revenue from Government received 68,300 56,183 68,300 56,183Receipts from customers 16,235 16,446 15,133 16,446GST input tax credits received from the ATO 4,682 4,200 4,025 4,200Interest received 911 751 666 751Outflows:Payments to suppliers and employees (97,824) (74,564) (101,865) (74,564)GST remitted to ATO (1,349) (1,038) (1,089) (1,038)Net cash flows (used in) / provided by operating activities 17 (a) (9,045) 1,978 (14,830) 1,978

Cash flows from investing activitiesInflows:Cash and cash equivalents transferred from Events Queensland 14,958 - 10,914 -Outflows:Payments for property, plant & equipment (16) - - -Net cash flows provided by investing activities 14,942 - 10,914 -

Cash flows from financing activitiesOutflows:Finance lease payments (282) (248) (282) (248)Net cash flows used in financing activities (282) (248) (282) (248)

Net (decrease) / increase in cash and cash equivalents 5,615 1,730 (4,198) 1,730Cash and cash equivalents at beginning of the year 10,615 8,885 10,615 8,885Cash and cash equivalents at end of financial year 9 16,230 10,615 6,417 10,615



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.

These financial statements are general purpose financial statements and have been prepared on an accrual basis in accordance with Australian Accounting Standards and Interpretations. In addition, the financial statements comply with Queensland Treasury and Trade’s Minimum Reporting Requirements for the year ending 30 June 2013, and other authoritative pronouncements.

With respect to compliance with Australian Accounting Standards and Interpretations, the Corporation has applied those requirements applicable to not-for-profit entities, as the Corporation is a not-for-profit statutory body. Except where stated, the historical cost convention is used.

(b) The Reporting Entity

The consolidated financial statements include the value of all revenues, expenses, assets, liabilities and equity of the Corporation and its controlled entities, the Tourism and Events Queensland Employing Office, Gold Coast Events Co. Pty Ltd, Asia Pacific Screen Awards Ltd and Gold Coast Events Management Ltd.

Tourism and Events Queensland Notes to and forming part of the Financial Statements for the year ended 30 June 2013

On 11 December 2012 the Queensland parliament passed the Tourism and Events Queensland Act 2012. On commencement of the Act, the assets and liabilities of Events Queensland Pty Ltd (Events Queensland) were transferred to the Corporation together with Events Queensland’s controlled entities; Gold Coast Events Co. Pty Ltd, Asia Pacific Screen Awards Ltd and Gold Coast Events Management Ltd. Details of the Corporation’s controlled entities are disclosed in Note 23.

The expenses and revenues of Events Queensland and its controlled entities for the period 1 July 2012 to 10 December 2012 are not reflected in the Corporation’s Statement of Comprehensive Income as the transfer of net assets at the commencement date was accounted for as an adjustment to contributed equity in accordance with APG 9 Accounting for Contributions by owners and distributions to owners.

Additional disclosure regarding the impact of the above changes is provided at Note 22.

The Corporation as an economic entity consists of the parent entity together with its controlled entities. In order to provide enhanced disclosure, the Corporation has adopted the principles outlined in Australian Accounting Standard AASB 127 Consolidated and Separate Financial Statements. This approach is considered appropriate as it reflects the relationship between the Corporation’s core business activities and those of the controlled entities. In the process of reporting on the Corporation as a single economic entity, all transactions and balances internal to the economic entity have been eliminated in full.

(c) 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:

Government Contributions

Non-reciprocal revenue from the Government is measured at the fair value of the contribution received. Revenue is recognised when:

(i) The Corporation gains control of the contribution;

(ii) It is probable that the economic benefits will flow to the Corporation; and

(iii) The amount of the contribution can be measured reliably.

Some non-reciprocal grants recognised as revenue in accordance with the above are pursuant to contractual arrangements into future financial years. The corresponding expenditure does not meet the recognition criteria of a liability and is disclosed by way of note as expenditure commitments.

Cooperative Marketing Income

Cooperative marketing income comprises revenue earned from industry partners as a contribution towards the cost of marketing activity. Cooperative marketing income is recognised when the marketing activity is provided.

Sponsorship Revenue

Sponsorship revenue is recognised when the entity obtains control of the sponsorship money and it is probable that the economic benefits gained from the sponsorship will flow to the Corporation and the amount of the sponsorship can be measured reliably. If conditions are attached to the sponsorship which must be satisfied before it is eligible to receive the contribution, the recognition of the sponsorship as revenue will be deferred until those conditions are satisfied.

Registration Fees Revenue

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 Statement of Financial Position.


(c) Revenue Recognition (continued)

Interest

Interest income is recognised on an accrual basis when the Corporation controls the right to receive the interest.

Asset Sales

The gain or loss on disposal of assets is recognised at the date an unconditional contract of sale is signed. Gains or losses of financial assets and financial liabilities are reported by category.

Rental Income

Rental income is accounted for on a straight-line basis over the term of the lease.

Licence Fee

Licence fee income is recognised when the Corporation controls the right to receive the fee.

Other

Other income is recognised as it accrues.

(d) Contra Income and Expenses

Contra benefits represent benefits derived by the Corporation and the controlled entities via the use of equipment and services free of charge pursuant to the terms and conditions of various sponsorship agreements. Contra benefits are recognised in the financial statements at their estimated fair market value at the time of consumption.

(e) Foreign Currency Transactions

Both the functional currency and presentation currency of the Corporation is Australian dollars.

All transactions that are undertaken in a foreign currency are translated into the functional currency of the Corporation. Foreign currency transactions are recorded on initial recognition in the functional currency by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

Monetary assets and liabilities held in foreign currencies at balance date are retranslated into the functional currency in the Statement of Financial Position at the closing rate.

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

(f) Financial Instruments

Recognition

Financial assets and financial liabilities are recognised in the Statement 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

• Held to maturity investments – held at amortised cost

• Payables – held at amortised cost.

All other disclosures relating to the measurement and financial risk management of financial instruments held by the Corporation are included in Note 19.

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. Such derivative financial instruments are stated separately at fair value with disclosure of the risks associated with the hedge. 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.

(g) Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, in banks and money market deposits at call, all stated at their principal amounts.

Money market deposits at call are recorded at cost, which also equates to market value. Invested funds are used in the Corporation’s day-to-day cash management function and are classified as cash due to the convertible nature of the investments.


Note 1 – Summary of Significant Accounting Policies (continued)

(h) Investments

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.

(i) Trade and Other Receivables

Receivables are recognised and carried at original invoice amount less a provision for impairment. An allowance for impairment is made when there is objective evidence that the Corporation will not be able to collect the debt. All known bad debts are written-off when identified. Increases in the allowance for impairment are based on loss events as disclosed in Note 19.

Settlement on debtors is required within 14 days from invoice date.

(j) Property, Plant and Equipment

Acquisition and Valuation

Plant and equipment is stated at cost less accumulated depreciation and any impairment in value. 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. Items of plant and equipment, including leasehold improvements, with a cost or other value equal to or in excess of $5,000 are recognised for financial reporting purposes in the year of acquisition. Items with a lesser value are expensed in the year of acquisition.

Depreciation

Depreciation is provided on a straight-line basis over the estimated useful life of the asset:

The asset’s 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 Statement 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 reserve 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.

(n) Trade and Other Payables

Liabilities for trade creditors and other amounts are carried at cost, which is the fair value of the consideration to be paid in the future for goods and services received, whether or not billed to the Corporation. Trade creditors are non-interest bearing and are normally settled on 30 day terms.

Major depreciation periods are: Leasehold Improvements

2013 Lease term

2012 Lease term

Property, Plant and EquipmentComputer equipment 2.5 - 3 years 3 yearsFurniture, fixtures and fittings 6 - 12 years 7 - 12 yearsRace circuit assets 2 – 3 years -

(k) Intangibles

Intangible assets with a cost or other value greater than $100,000 are recognised in the financial statements. Items with a lesser value are expensed in the year of acquisition. Each intangible asset is amortised over the useful life to the Corporation, less any anticipated residual value. The residual value is zero for all of Tourism and Events Queensland’s intangible assets.

Major amortisation periods are: 2013 2012

Internally generated software 2.5 years 2.5 years

(l) Non-Current Assets Held for Sale

Non-current assets held for sale consists of those assets which management has determined are available for immediate sale in their present condition, and their sale is highly probable within the next twelve months.

These assets are measured at the lower of the asset’s carrying amount and their fair values less costs to sell and are not depreciated.

(m) Impairment of Non-Current Assets

All non-current physical 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.

Tourism and Events Queensland Notes to and forming part of the Financial Statements (continued)for the year ended 30 June 2013


(o) Employee Benefits

Provision is made for employee benefits accumulated as a result of employees rendering services up to the reporting date. These benefits include liabilities for employee benefits of wages and salaries, annual leave and long service leave.

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.

Liabilities arising in respect of wages and salaries, annual leave and long service leave that are expected to be settled within 12 months are measured at their nominal values.

Liabilities for 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.

Employee benefits expenses arising in respect of the following categories:

• wages and salaries, non-monetary benefits, annual leave, long service leave, sick leave and other leave benefits; and

• other types of employee benefits

are charged against profits on a net basis in their respective categories.

The Corporation and its controlled entities contribute to QSuper, the superannuation scheme for Queensland Government employees, and other superannuation funds for the purpose of providing benefits for employees and

their dependents on retirement, disability or death. 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 and Trade. Refer to note 5 for the disclosures on key executive management personnel and remuneration.

(p) Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

The Corporation has entered into a number of operating lease agreements for buildings, motor vehicles, computer equipment and office equipment. Rentals payable under these operating leases are charged to the Statement of Comprehensive Income on a straight line basis over the term of the lease.

Assets held under finance leases are recognised as assets of the Corporation at their fair value at the inception of the lease, or if lower, at the present value

of the minimum lease payments. The corresponding liability to the lessor is included in the Statement of Financial Position as a finance lease obligation.

Lease payments are apportioned between finance charges and reduction of the lease liability. Finance charges are charged directly against income. Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset or the lease term.

In the event that lease incentives are received to enter into non-cancellable operating leases, such incentives are recognised as a liability. Lease payments are allocated between rental expenses, reduction of the liability and, where appropriate, interest expense over the term of the lease.

(q) Other Financial Liabilities

Interest bearing liabilities are recognised at book value as the amount contractually owing.

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the Statement of Comprehensive Income over the period of the borrowings using the effective interest method.

(r) 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.



(s) Insurance

The Corporation’s non-current physical assets and other key risks are insured. In addition, the Corporation pays premiums to WorkCover Queensland in respect of its obligations for employee compensation.

(t) Comparatives

Where changes in presentation have been made in the current financial period, comparative figures have been adjusted for consistency.

(u) Rounding

Amounts have been rounded to the nearest thousand dollars or, where the amount is $500 or less, to zero, unless otherwise stated.

(v) Taxation

The Corporation is exempt from income tax under Section 24 AQ of 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.

Goods & Services Tax

Revenues, expenses and assets are recognised net of the amount of GST except:

1. where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or

2. for receivables and payables which are recognised inclusive of GST.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables.

Cash flows are included in the Statement of Cash Flows on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority, are classified as operating cash flows.

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.

(w) Issuance of Financial Statements

The financial statements are authorised for issue by the Chairman, Chief Executive Officer and the Director Finance at the date of signing the Management Certificate.

(x) 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 if the transfer was approved by the ‘owners’ (i.e. Cabinet, CBRC, Executive Council or portfolio Minister(s) for the agencies concerned), the approval clearly states that the transfer is a capital contribution and/or distribution which is to be adjusted against the transferor’s and recipient’s contributed equity and that approval was obtained at or before the time of the transfer.

(y) Use of 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 notes:

Accrued Employee Benefits – Note 15

Other Provisions – Note 16

Provisions – Race Jackpots

The Corporation estimates the provision for Race Jackpots (Note 16) based on the total outstanding Gold Coast Airport Marathon race jackpots available for the relevant accounting period.

(z) New and Revised Accounting Standards

The Corporation did not voluntarily change any of its accounting policies during 2012-13. Australian Accounting Standard changes applicable for the first time for 2012-13 have had minimal effect on the Corporation’s financial statements, as explained below.

AASB 2011-9 Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive Income [AASB 1, 5, 7, 101, 112, 120, 121, 132, 133, 134, 1039 & 1049] became effective from reporting periods beginning on or after 1 July 2012. The change impacts the Statement of Comprehensive Income whereby items within the “Other Comprehensive Income” section need to be presented in different sub-sections, according to whether or not they are subsequently re-classifiable to the operating result. Whether subsequent re-classification is possible depends on the requirements or criteria in the accounting standard/interpretation that relates to the item concerned.

The Corporation is not permitted to early adopt a new or amended accounting standard ahead of the specified commencement date unless approval is obtained from Queensland Treasury and Trade. Consequently, the Corporation has not applied any Australian accounting standards and interpretations that have been issued but are not yet effective. The Corporation applies standards and interpretations in accordance with their respective commencement dates.



(z) New and Revised Accounting Standards (continued)

At the date of authorisation of the financial report, the expected impacts of new or amended Australian accounting standards with future commencement dates are as set out below.

AASB 13 Fair Value Measurement applies from reporting periods beginning on or after 1 January 2013. AASB 13 sets out a new definition of “fair value”, as well as new principles to be applied when determining the fair value of assets and liabilities. The new requirements will apply to all of the Corporation’s assets and liabilities (excluding leases) that are measured and/or disclosed at fair value or another measurement based on fair value.

The potential impacts of AASB 13 relate to the fair value measurement methodologies used, and financial statement disclosures made in respect of, such assets and liabilities.

The Corporation has not yet assessed the full impact of this standard, however, no significant changes are anticipated, based on the fair value methodologies presently used. Therefore, at this stage, no consequential material impacts are expected for the Corporation’s property, plant and equipment as from 2013-14.

AASB 13 will require an increased amount of information to be disclosed in relation to fair value measurements for both assets and liabilities. To the extent that any fair value measurement for an asset or liability uses data that is not “observable” outside the Corporation, the amount of information to be disclosed will be relatively greater.

A revised version of AASB 119 Employee Benefits applies from reporting periods beginning on or after 1 January 2013. The revised AASB 119 is generally to be applied retrospectively. The revised

AASB 119 includes changed criteria for accounting for employee benefits as “short-term employee benefits” whereby “short-term employee benefits” will only include benefits that are expected to be wholly settled before 12 months after the end of the reporting period in which the employees provide the associated service. If that criterion is not met, such benefits will need to be categorised and accounted for as “other long-term employee benefits” (which may comprise both current and non-current components). The distinction between short-term and other long-term employee benefits should be made on a whole-of class basis i.e. not according to differing circumstances that may apply from employee to employee.

Under the revised AASB 119, the recognition and measurement of employer obligations for “other long-term employee benefits” will need to be accounted for according to most of the requirements for defined benefit plans.

The revised AASB 119 clarifies the concept of “termination benefits”, including distinguishing them from post-employment and other benefits. The recognition criteria for liabilities for termination benefits are different under the revised standard. If termination benefits meet the timeframe criterion for “short-term employee benefits”, they are to be measured according to the requirements for “short-term employee benefits”. Otherwise, if the “short-term employee benefits” criterion is not met, the termination benefits are to be measured according to the requirements for “other long-term employee benefits”.

The requirements for measurement of employer liabilities/assets arising from defined benefit plans, and the measurement and presentation of changes in such liabilities/assets, are substantially

different under the revised AASB 119. There are also a number of new concepts and definitions.

AASB 1053 Application of Tiers of Australian Accounting Standards applies as from reporting periods beginning on or after 1 July 2013. AASB 1053 establishes a differential reporting framework for those entities that prepare general purpose financial statements, consisting of two tiers of reporting requirements – Australian Accounting Standards (commonly referred to as “tier 1”), and Australian Accounting Standards – Reduced Disclosure Requirements (commonly referred to as “tier 2”). Tier 1 requirements comprise the full range of AASB recognition, measurement, presentation and disclosure requirements that are currently applicable to reporting entities in Australia. The only difference between the tier 1 and tier 2 requirements is that tier 2 requires fewer disclosures than tier 1.

Details of which disclosures in standards and interpretations are not required under Tier 2 reporting are set out in amending standards AASB 2010-2, AASB 2011-2, AASB 2011-6, AASB 2011-11, AASB 2012-1, AASB 2012-7 and AASB 2012-11 (which also apply from reporting periods beginning on or after 1 July 2013). However, Queensland Treasury and Trade’s Financial Reporting Requirements effectively do not allow application of AASB 2011-6 in respect of controlled entities, associates or interests in jointly controlled entities.




Pursuant to AASB 1053, public sector entities like the Corporation may adopt Tier 2 requirements for their general purpose financial statements. However, AASB 1053 acknowledges the power of a regulator to require application of the Tier 1 requirements. In the case of the Corporation, Queensland Treasury and Trade is the regulator. Queensland Treasury and Trade has advised that its policy decision is to require adoption of Tier 1 reporting by all Queensland Government departments and statutory bodies that are consolidated into the whole-of-Government financial statements. Therefore, the release of AASB 1053 and associated amending standards will have no impact on the Corporation.

The following new and revised standards apply as from reporting periods beginning on or after 1 January 2014 –

• AASB 10 Consolidated Financial Statements;

• AASB 11 Joint Arrangements;

• AASB 12 Disclosure of Interests in Other Entities;

• AASB 127 (revised) Separate Financial Statements;

• AASB 128 (revised) Investments in Associates and Joint Ventures; and

• AASB 2011 -7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards [AASB 1, 2, 3, 5, 7, 9, 2009-11, 101, 107, 112, 118, 121, 124, 132, 133, 136, 138, 139,1023 & 1038 and Interpretations 5, 9, 16 & 17].

The AASB is planning to amend AASB 10. Such amendments are expected to clarify how the IASB’s principles about control of entities should be applied by not-for-profit entities in an Australian context. Hence, the Corporation is not yet in a position to reliably determine the future implications of these new and revised standards for its financial statements.

AASB 10 redefines and clarifies the concept of control of another entity, and is the basis for determining which entities should be consolidated into an entity’s financial statements. Therefore, once the AASB finalises its not-for-profit amendments to AASB 10, the Corporation will need to reassess the nature of its relationships with other entities.

AASB 11 deals with the concept of joint control and sets out new principles for determining the type of joint arrangement that exists, which in turn dictates the accounting treatment. The new categories of joint arrangements under AASB 11 are more aligned to the actual rights and obligations of the parties to the arrangement. Subject to any not-for-profit amendments to be made to AASB 11, the Corporation will need to assess the nature of any arrangements with other entities to determine whether a joint arrangement exists in terms of AASB 11. If a joint arrangement does exist, the Corporation will need to follow the relevant accounting treatment specified in either AASB 11 or the revised AASB 128, depending on the nature of the joint arrangement.

AASB 1055 Budgetary Reporting applies from reporting periods beginning on or after 1 July 2014. From that date, based on what is currently published in the Queensland Government’s Budgetary Service Delivery Statements, this means the Corporation will need to include in these financial statements the original budgeted statements for the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, and Statement of Cash Flows. These budgeted statements will need to be presented consistently with the corresponding (actuals) financial statements, and will be accompanied by explanations of major variances between the actual amounts and the corresponding budgeted financial statement.

In addition, based on what is currently published in the Queensland Government’s Service Delivery Statements, the Corporation will need to include in these financial statements the original budgeted information for major classes of administered income and expenses, and major classes of administered assets and liabilities. This budgeted information will need to be presented consistently with the corresponding (actuals) administered information, and will be accompanied by explanations of major variances between the actual amounts and the corresponding budgeted financial information.




AASB 9 Financial Instruments (December 2010) and AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127] become effective from reporting periods beginning on or after 1 January 2015. The main impacts of these standards on the Corporation are that they will change the requirements for the classification, measurement and disclosures associated with the Corporation’s financial assets. Under the new requirements, financial assets will be more simply classified according to whether they are measured at amortised cost or fair value. Pursuant to AASB 9, financial assets can only be measured at amortised cost if two conditions are met. One of these conditions is that the asset must be held within a business model whose objective is to hold assets in order to collect contractual cash flows. The other condition is that the contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

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, it is not expected that any of the Corporation’s financial assets will meet the criteria in AASB 9 to be measured at amortised cost. Therefore, as from the 2015-16 financial statements, all of the Corporation’s financial assets are expected to be required to be measured at fair value, and classified accordingly (instead of the measurement classifications presently used in Notes 1(f) and 19). The same classification will be used for net gains/losses recognised in the Statement of Comprehensive Income in respect of those financial assets. 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.

All other Australian accounting standards and interpretations with future commencement dates are either not applicable to the Corporation’s activities, or have no material impact on the Corporation.


Note 2 – Revenue

Consolidated Parent

2013 $000

2012 $000

2013 $000

2012 $000

Grants and Other ContributionsDepartment of Tourism, Major Events, Small Business and the Commonwealth Games 74,982 56,183 74,982 56,183

Other RevenueInterest 911 751 666 751Rent received 402 1,164 402 1,164Gain on foreign exchange 80 46 81 46Other 3,183 876 2,431 876

4,576 2,837 3,580 2,837

Note 3 – Marketing , Development Expenses and Events Promotion and Staging Expenses

Consolidated Parent2013 $000

2012 $000

2013 $000

2012 $000

Domestic marketing activity 23,764 21,657 23,764 21,657International marketing activity 16,051 12,366 16,051 12,366Event staging and promotion activity 20,514 - 24,018 -Research activity 805 998 805 998

61,134 35,021 64,638 35,021

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



Note 4 – Grant Payments Consolidated Parent

2013 $000

2012 $000

2013 $000

2012 $000

Regional Tourist Organisation grant payments 6,899 3,484 6,899 3,484Network grant payments 273 1,290 273 1,290

7,172 4,774 7,172 4,774

Note 5 – Employee Expenses Consolidated Parent

2013 $000

2012 $000

2013 $000

2012 $000

Employee BenefitsWages and salaries 14,216 13,246 1,467 1,811Annual leave 964 1,170 1 23Long service leave 279 352 - 18Employer superannuation contributions 1,268 1,335 27 41Employing office - - 15,056 14,948Other employee benefits 183 14 183 -

Employee Related ExpensesWorkers compensation 77 66 4 3Payroll Tax 722 686 36 25Other employee related expenses 174 146 174 146

17,883 17,015 16,948 17,015Number of employees at the end of the period. 154 156 17 20

The number of employees includes both full-time employees and part-time employees measured on a full-time equivalent basis.


Note 5 – Employee Expenses (continued)

Key Management Remuneration

The following details for key management personnel include those positions that had authority and responsibility for planning, directing and controlling the activities of the Corporation during 2012-13. Further information on these positions can be found in the body of the Annual Report under the section relating to Corporate Governance.

Current Incumbents

Position ResponsibilitiesAppointment Authority

Date Appointed to Position

Chief Executive Officer (CEO)

The function of the CEO is to ensure the efficient and effective administration and operation of the Corporation in accordance with the board’s priorities.

Governor in Council

10 December 2012

Chief Executive Officer (CEO) Governor in Council

25 June 2007 (to 10 August 2012)

Executive Director Marketing (EDM)

The EDM is responsible for strategically developing marketing plans to promote Queensland and its destinations both domestically and internationally.

Board of Directors 25 October 2004

Executive Director Destinations (EDD)

The EDD is responsible for destination management, aviation and economics, business attraction, industry innovation and destination planning and design.

Board of Directors 1 November 2004

Chief Financial Officer (CFO) and Executive Director Business Performance and Planning (EDBPP)

The CFO and EDBPP is responsible for financial management, business solutions and technology, strategy and research, legal and contract management.

Board of Directors 5 November 2007 (to 18 September 2012)

Executive Director International (EDI)

The EDI is responsible for aligning the international strategic direction with destination management to increase international visitors, visitor expenditure and market share.

Board of Directors 5 January 2009 (to 14 September 2012)

Executive Director Development (EDD)

The EDD leads the development team which is responsible for tourism experience, event and destination development.

Board of Directors 11 December 2012

Executive Director Acquisitions (EDA)

The EDA leads the acquisition team which is responsible for acquiring and building a portfolio of major, business, significant and regional events as required by the destination tourism plans. The team also develops holistic strategic partnerships with airlines and airports.


Executive Director Corporate Affairs (EDCA)

The EDCA is responsible for leading the Corporation’s corporate affairs and corporate communications to strategically enhance the Corporation’s relationships with key stakeholders including Government, media and industry.


Director Finance/Acting Chief Financial Officer (CFO)

The CFO is responsible for managing the financial risks of the Corporation in addition to financial planning, record-keeping and financial reporting to the CEO and the Board of Directors.

Board of Directors 19 September to 5 March 2012

30 April to 30 June 2013

General Manager Finance/Acting Chief Financial Officer (CFO)

Board of Directors 6 March to 29 April 2013




Key Management Remuneration (continued)

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.

Remuneration for executives comprise of the following components:

• Short term benefits which include:

• Base – base salary, allowances and leave entitlements paid and provided for the entire year or for that part of the year during which the employee occupied the specified position. Amounts disclosed equal the amount expensed in the Consolidated Statement of Comprehensive Income

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

• Long term employment benefits include long service leave accrued

• Post employment benefits include superannuation contributions

• Redundancy payments 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 of 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.




1 July 2012 – 30 June 2013

Position

Short Term Employee Benefits Long Term Benefits

Post Employment

Benefits

Termination Benefits

Total Remuneration

Base

$000

Non-Monetary Benefits

$000 $000 $000 $000 $000Chief Executive Officer (from 10 December 2012) 178 - - 9 - 187

Chief Executive Officer (to 10 August 2012) 46 - 1 3 183 233

Executive Director Marketing 230 28 - 20 - 278Executive Director Destinations (acting CEO 13 August to 9 December 2012) 235 11 6 36 - 288

Chief Financial Officer and Executive Director Business Performance and Planning (to 18 September 2012)

56 2 - 5 158 221

Executive Director International (to 14 September 2012) 40 - - 5 232 277

Executive Director Development (from 11 December 2012) 131 - - 11 - 142

Executive Director Acquisitions (from 11 December 2012) 129 - - 12 - 141

Executive Director Corporate Affairs (from 11 December 2012) 90 - - 8 - 98

Director Finance/Acting Chief Financial Officer (from 19 September to 5 March 2012; 30 April to 30 June 2013)

88 - - 16 - 104

General Manager Finance/Acting Chief Financial Officer (from 6 March to 29 April 2013)

23 - - 2 - 25





1 July 2011 – 30 June 2012

Position

Short Term Employee Benefits Long Term Benefits

Post Employment

Benefits

Total Remuneration

Base

$000

Non-Monetary Benefits

$000 $000 $000 $000Chief Executive Officer 326 10 2 31 369Executive Director Marketing 208 27 - 28 263Executive Director Destinations 192 14 6 36 248Chief Financial Officer and Executive Director Business Performance and Planning 190 10 - 25 225

Executive Director International 183 - 5 24 212

Note 6 – Depreciation and Amortisation Consolidated Parent

2013 $000

2012 $000

2013 $000

2012 $000

Plant and equipment 350 393 185 393Leasehold improvements 115 97 115 97Intangibles 70 379 70 379

535 869 370 869


Note 7 – Other Expenses Consolidated Parent2013 $000

2012 $000

2013 $000

2012 $000

Lease expenses 2,320 2,569 2,320 2,569Telephone, fax and postage 404 429 386 429Computer charges 1,875 1,704 1,874 1,704Contractors and consultants fees 3,641 1,476 3,506 1,476Travel and accommodation expenses 315 135 305 135Printing, stationery and office consumables 172 232 166 232Staff training 196 269 190 269Rates, electricity and other charges 126 193 74 193Bad and doubtful debts 5 25 5 25Insurance and legal fees 274 174 229 174Fringe Benefits Tax 59 95 57 95Repairs and maintenance 325 95 325 95Bank fees and charges 73 65 72 65Subscriptions 100 49 99 49Entertainment 10 39 10 39Loss on disposal of fixed assets - 14 - 14Other 747 1,271 630 1,271

10,642 8,834 10,248 8,834

Note 8 – Auditors’ Remuneration Consolidated Parent2013 $000

2012 $000

2013 $000

2012 $000

Amounts paid or payable to the external auditors: Auditing the accounts 162 93 99 91

Total external audit fees paid to the Queensland Audit Office relating to the 2012-13 financial year, relating to both the Corporation and its controlled entities, are estimated to be $161,850 exclusive of GST (2012: $93,200). There are no non-audit services included in this amount.



Note 9 – Cash and Cash Equivalents Consolidated Parent

2013 $000

2012 $000

2013 $000

2012 $000

Cash at bank and on hand 16,230 10,615 6,417 10,61516,230 10,615 6,417 10,615

Note 10 – Receivables Consolidated Parent

2013 $000

2012 $000

2013 $000

2012 $000

Trade debtors 1,757 828 1,434 828Less: Allowance for impairment loss (5) (25) (5) (25)

1,752 803 1,429 803

Grant receivable 6,682 - 6,682 -GST receivable 1,728 567 1,368 567GST payable (187) (91) (110) (91)Accrued revenue 565 - 565 -Other receivables 186 192 145 192

8,974 668 8,650 66810,726 1,471 10,079 1,471

Note 11 – Other Current Assets Consolidated Parent

2013 $000

2012 $000

2013 $000

2012 $000

Prepayments 305 87 119 87305 87 119 87


Note 12 – Property, Plant and Equipment Consolidated Parent

2013 $000

2012 $000

2013 $000

2012 $000

Leasehold improvements At cost 1,776 1,032 1,776 1,033 Less: Accumulated depreciation (1,100) (909) (1,100) (909)

676 123 676 124

Plant and equipment At cost 5,620 4,136 4,157 4,136 Less: Accumulated depreciation (5,437) (3,896) (4,093) (3,896)

183 240 64 240

Total Property, plant and equipment Cost 7,396 5,168 5,933 5,168 Less: Accumulated depreciation (6,537) (4,805) (5,193) (4,805)Total written down amount 859 363 740 363

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.

Consolidated Leasehold improvements

Plant & equipment Work in progress Total

2013 $000

2012 $000

2013 $000

2012 $000

2013 $000

2012 $000

2013 $000

2012 $000

Carrying Amount at 1 July 123 234 240 603 - 32 363 869Additions - - 16 - - - 16 -Acquisitions through Restructuring 668 - 277 - - - 945 -Disposals - (14) - - - (2) - (16)Transfers - - - 30 - (30) - -Depreciation expense (115) (97) (350) (393) - - (465) (490)Carrying amount at 30 June 676 123 183 240 - - 859 363



Note 12 – Property, Plant and Equipment (continued)

Parent Leasehold improvements

Plant & equipment Work in progress Total

2013 $000

2012 $000

2013 $000

2012 $000

2013 $000

2012 $000

2013 $000

2012 $000

Carrying Amount at 1 July 123 234 240 603 - 32 363 869Additions - - - - - - - -Acquisitions through Restructuring 668 - 9 - - - 677 -Disposals - (14) - - - (2) - (16)Transfers - - - 30 - (30) - -Depreciation expense (115) (97) (185) (393) - - (300) (490)Carrying amount at 30 June 676 123 64 240 - - 740 363

Note 13 – Intangibles Consolidated Parent

2013 $000

2012 $000

2013 $000

2012 $000

Software internally generated At cost 1,277 1,277 1,277 1,277 Less: Accumulated amortisation (1,265) (1,195) (1,265) (1,195)Total written down amount 12 82 12 82


Note 13 – Intangibles (continued)

Reconciliations of the carrying amounts of each class of intangibles at the beginning and end of the current financial year are set out below.

Consolidated Software Internally Generated

Work in Progress Total

2013 $000

2012 $000

2013 $000

2012 $000

2013 $000

2012 $000

Carrying Amount at 1 July 82 447 - 14 82 461Additions - - - - - -Disposals - - - - - -Transfers - 14 - (14) - -Amortisation expense (70) (379) - - (70) (379)Carrying amount at 30 June 12 82 - - 12 82

Parent Software Internally Generated

Work in Progress Total

2013 $000

2012 $000

2013 $000

2012 $000

2013 $000

2012 $000

Carrying Amount at 1 July 82 447 - 14 82 461Additions - - - - - -Disposals - - - - - -Transfers - 14 - (14) - -Amortisation expense (70) (379) - - (70) (379)Carrying amount at 30 June 12 82 - - 12 82

Note 14 – Trade and Other Payables Consolidated Parent

2013 $000

2012 $000

2013 $000

2012 $000

Trade creditors 5,873 2,639 8,030 5,422Accrued expenses 7,656 2,248 6,068 2,248Deposits and fees in advance 2,358 662 282 662Other creditors 229 123 127 123

16,116 5,672 14,507 8,455

The Corporation has a MasterCard credit facility with Westpac to a limit of $1,500,000 (2012: $1,500,000). At 30 June 2013, the Corporation had utilised approximately $407,047 of this facility (2012: $132,961).



Note 15 – Accrued Employee Benefits


2012 $000

2013 $000

2012 $000

CurrentAnnual leave 1,270 1,408 151 244Long service leave 1,038 1,099 - 69

2,308 2,507 151 313Non-CurrentLong service leave 623 589 2 -

2,931 3,096 153 313

ConsolidatedCurrent Non-current

Annual leave $000

Long service leave $000


Opening balance at 1 July 2012 1,408 1,099 589Increase/(decrease) in provision 1,234 411 (104)Provisions transferred as a result of restructure 122 - 138Reductions in provision as a result of payments (1,494) (473) -Closing balance at 30 June 2013 1,270 1,038 623

ParentCurrent Non-current

Annual leave $000



Opening balance at 1 July 2012 244 69 -Increase/(decrease) in provision 1 (2) 2Provisions transferred as a result of restructure - - -Reductions in provision as a result of payments (94) (67) -Closing balance at 30 June 2013 151 - 2


Note 16 – Other Provisions Consolidated Parent2013 $000

2012 $000

2013 $000

2012 $000

Non-CurrentProvision for race jackpots (Gold Coast Airport Marathon) 57 - - -

57 - - -

Note 17 – Statement of Cash Flows Consolidated Parent2013 $000

2012 $000

2013 $000

2012 $000

(a) Reconciliation of Operating Surplus to Net Cash from Operating Activities

Cash from Operating ActivitiesOperating surplus/(deficit) (7,908) 449 (10,878) 449

Depreciation and amortisation expense 535 869 370 869Allowance for impairment – receivables 5 (43) 5 (43)(Profit) / loss on disposal of non-current assets - 15 - 15Revaluation of hedge receivable - 55 - 55 Changes in assets and liabilities:(Increase) / decrease in trade and other receivables (5,553) 5,370 (5,604) 5,370(Increase) / decrease in other assets (46) 41 104 41Increase / (decrease) in creditors and accruals 3,922 (4,778) 1,173 (4,778)Net cash from operating activities (9,045) 1,978 (14,830) 1,978

(b) Reconciliation of Cash and Cash Equivalents

For the purposes of the Statement of Cash Flows, cash comprises cash on hand and highly liquid investments with short periods to maturity which are readily convertible to cash on hand at the investor’s option and are subject to an insignificant risk of changes in

value, and borrowings which are integral to the cash management function and which are not subject to a term facility. Cash at the end of the reporting period as shown in the Statement of Cash Flows agrees with the related item in the Statement of Financial Position (refer to Note 9).



Note 18 - Commitments

Lease Expenditure Commitments Consolidated Parent

2013 $000

2012 $000

2013 $000

2012 $000

(a) Operating LeasesMinimum lease paymentsNot later than one year 2,566 1,281 2,472 1,281GST input tax credits receivable (197) (78) (188) (78)

2,369 1,203 2,284 1,203

Later than one year but not later than five years 8,113 423 8,041 423GST input tax credits receivable (724) - (717) -

7,389 423 7,324 423

Later than five years 553 - 553 -GST input tax credits receivable (50) - (50) -

503 503Aggregate lease expenditure contracted for at balance date (excluding GST) 10,261 1,626 10,111 1,626

(b) Lease Incentive Recognised in Statement of Financial PositionNot later than one year 90 83 90 83Later than one year but not later than five years 225 - 225 -Later than five years - - - -

315 83 315 83

Other – Lease Incentive Current 90 83 90 83Non-current 225 - 225 -

315 83 315 83

Expenditure Commitments

Material expenditure commitments, inclusive of GST, contracted for at reporting date but not recognised in the accounts as payable are as follows:


2012 $000

2013 $000

2012 $000

Not later than one year 30,095 4,458 30,095 4,458Later than one year but not later than five years 35,622 2,891 35,622 2,891Later than five years 13,822 - 13,822 -

79,539 7,349 79,539 7,349


Note 19 – Financial Instruments

(a) Categorisation of Financial Instruments

The Corporation has categorised the financial assets and financial liabilities held as:

Financial Asset CategoryCash and cash equivalents Principal amountsReceivables Loans and receivables (at nominal value)Forward exchange contracts receivable Financial asset at fair value through profit and loss

Financial Liabilities CategoryPayables Financial liability not at fair value (at nominal value)Lease incentive liability Financial liability not at fair value (at amortised cost)Forward exchange contracts payable Financial liability at fair value through profit and loss

Financial assets and financial liabilities are presented separately from each other, offsetting has not been applied.

The Corporation has the following financial assets and financial liabilities:


2012 $000

2013 $000

2012 $000

Financial AssetsCash and cash equivalents 16,230 10,615 6,417 10,615Receivables 10,726 1,471 10,079 1,471Forward exchange contracts receivable - 931 - 931Total 26,956 13,017 16,496 13,017

Financial LiabilitiesPayables 16,116 5,672 14,507 8,455Forward exchange contracts payable - 985 - 985Total 16,116 6,657 14,507 9,440



Note 19 – Financial Instruments (continued)

(b) Financial Risk Management

Tourism and Events Queensland’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 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.

(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.

The following table represents Tourism and Events Queensland’s maximum exposure to credit risk:

Financial Assets Consolidated Parent2013 $000

2012 $000

2013 $000

2012 $000

Cash and cash equivalents 16,230 10,615 6,417 10,615Receivables 10,726 1,471 10,079 1,471

26,956 12,086 16,496 12,086

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.



(c) Credit Risk (continued)

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

Consolidated

Financial Assets as at 30 June 2013

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 9,793 268 626 21 18 10,7269,793 268 626 21 18 10,726


Not Overdue

$000


30 to 60 Days $000

61 to 90 Days $000


Total

$000

Receivables 907 213 346 4 1 1,471907 213 346 4 1 1,471

Parent


Not Overdue

$000


30 to 60 Days $000

61 to 90 Days $000


Total

$000

Receivables 9,206 268 571 16 18 10,0799,206 268 571 16 18 10,079


Not Overdue

$000


30 to 60 Days $000

61 to 90 Days $000


Total

$000

Receivables 907 213 346 4 1 1,471907 213 346 4 1 1,471




(c) Credit Risk (continued)

Movements in the allowance for impairment loss Consolidated Parent

2013 2012 2013 2012

Balance at beginning of year 25 68 25 68Amounts written off during the year (2) - (2) -Amounts recovered during the year (23) (68) (23) (68)Increase/(decrease) in allowance 5 25 5 25Balance at end of year 5 25 5 25

(d) Foreign Exchange Risk

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

Tourism and Events Queensland 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.

Tourism and Events Queensland’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.

The fair value of forward foreign exchange contracts is made up of the following currencies:

Currency Contract Amount Financial Asset

Contract Amount Financial Liability

2013 $A 000

2012 $A 000

2013 $A 000

2012 $A 000

Euro - 504 - 534British Pounds - 427 - 451

- 931 - 985

The above contracts have been summarised per currency.

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 RiskCarrying Amount -1% Profit -1% Equity +1% Profit +1% Equity2013 $000

2012 $000

2013 $000

2012 $000

2013 $000

2012 $000

2013 $000

2012 $000

2013 $000

2012 $000

Forward exchange contracts receivable - 931 - (9) - (9) - 9 - 9



(e) Market Risk Sensitivity Table

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

Interest Rate RiskCarrying Amount -1% Profit -1% Equity +1% Profit +1% Equity2013 $000

2012 $000

2013 $000

2012 $000

2013 $000

2012 $000

2013 $000

2012 $000

2013 $000

2012 $000

Cash 16,230 10,615 (162) (106) (162) (106) 162 106 162 106

(f) Liquidity Risk

Liquidity risk refers to the situation where the Corporation may encounter difficulty in meeting obligations associated with financial liabilities.

Tourism and Events Queensland 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.

(g) Net Fair Value

The carrying amount of financial assets and financial liabilities approximates net fair value.

The net fair value is determined as follows:

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

• The net 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.

The recognised fair values of financial assets and liabilities are classified according to the following fair value hierarchy that reflects the significance of the inputs used in making these measurements:

Level 1 - fair values that reflect unadjusted quoted prices in active markets for identical assets/liabilities; Level 2 - fair values that are based on inputs that are directly or indirectly observable for the asset/liability (other than unadjusted quoted prices); and Level 3 - fair values that are derived from data not observable in a market

There were no forward exchange contracts used for hedging in place at 30 June 2013 (2012: $930,709). The contracts in place at 30 June 2012 were classified as Level 2 financial instruments.



Note 20 – Related Party Disclosures

Transactions with Directors and Director related entities

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

(i) Former Directors

a) During his period of appointment, Mr Don Morris AO was a Director of Hamilton Island Enterprises Ltd and an Independent non-executive Director of Ardent Leisure Limited and Ardent Leisure Management Limited.

b) During his period of appointment, Mr Anthony Baker was a Director of Quicksilver Connections Ltd.

c) During his period of appointment, Mr Grant Cassidy was Director of Capricorn Tourism and Development Organisation and owned and operated Edge Luxury Apartment Hotel. Net transactions between the Corporation and the Capricorn Tourism and Development Organisation during the Director’s period of appointment totalled $48,610 (GST inclusive). Transactions included RTO Core Grant payments and receipts for stand-alone advertising booked through the Corporation’s co-operative marketing services provider.

d) During his period of appointment, Mr Peter Savoff was General Manager of the Emporium Hotel Brisbane. Net transactions between the Corporation and the Emporium Hotel Brisbane during the Director’s period of appointment totalled $1,000 (GST exclusive). Transactions related to accommodation bookings for an international media familiarisation tour.

e) During her period of appointment, Ms Pam Hardgrave owned and operated Lillydale Host Farm Pty Ltd.

f) During her period of appointment, Ms Danielle Duell was Chief Executive Officer of Spicers Retreats Hotels and Lodges and Gainsdale Group. Transactions between the Corporation and Spicers Retreats Hotels and Lodges during the Director’s period of appointment totalled a receipt of $11,000 (GST inclusive) for project participation fees.

g) During his period of appointment, Mr Adrian Bram was Vice Chairman of Tourism Whitsundays. Net transactions between the Corporation and Tourism Whitsundays during the period of the Director’s appointment totalled $44,196 (GST inclusive). Transactions included RTO Core Grant payments and a receipt for project participation fees.

(ii) Current Directors

a) Mr Stephen Gregg is the Chairman of Tourism Tropical North Queensland. Net transactions between the Corporation and Tourism Tropical North Queensland during the year totalled $556,741 (GST inclusive). Transactions included RTO Core Grant payments, RTO Contestable Grant payments, Business Events Bureau funding, receipts and payments relating to co-operative marketing campaigns and receipts relating to joint airline programs.

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 receipt of $14,200 (GST inclusive) for subscription services.

c) Mr Ian Gillespie is a Director of RACQ Operations Pty Ltd. Net transactions between the Corporation and RACQ Operations during the Director’s period of appointment totalled $6,713 (GST inclusive) for the purchase of goods relating to a campaign.

d) Mr Phillip Di Bella is Chairman of the Queen Street Mall Advisory Committee and the Queensland Commemorative & Celebrations Committee and a Director of Brisbane Marketing. Net transactions between the Corporation and Brisbane Marketing during the year totalled a net receipt of $76,716 (GST inclusive). Transactions included RTO Core Grant payments, RTO Contestable Grant payments, Business Events Bureau funding and receipts relating to stand-alone advertising booked through the Corporation’s co-operative marketing services provider and co-operative marketing campaign receipts.

e) Mr Paul Donovan is the Chief Operating Officer of the Gold Coast Airport, Chairman of Gold Coast Tourism and Director of Griffith Business School Strategic Advisory Group. The Corporation received $24,200 (GST inclusive) from the Gold Coast Airport during the year, relating to stand-alone advertising booked through the Corporation’s co-operative marketing services provider and joint airline programs. Net transactions between the Corporation and Gold Coast Tourism during the year totalled a net receipt of $100,517 (GST inclusive). Transactions included RTO Core Grant payments, RTO Contestable Grant payments, 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 campaign receipts.

f) Ms Libby Marshall is a Director of Womensport Queensland, Associate Director of Hudson and a member of the Queensland Commemorative and Celebrations Committee. Net transactions between the Corporation and Hudson during the year totalled $27,205 (GST inclusive). Transactions related to hire of contractors.

g) Mr Garth Prowd is a Director of Noosa Jazz Festival Pty Ltd.


Note 20 – Related Party Disclosures (continued)

Transactions with Directors and Director related entities (continued)

Current Directors (continued)

h) Ms Liz Ward is a Director of Queenslanders Credit Union and is Chief Executive Officer of the Australian Tourism Data Warehouse. Net transactions between the Corporation and the Australian Tourism Data Warehouse during the year totalled $623,702 (GST inclusive). Transactions related to system administration support, the Australian Tourism Warehouse Service Agreement and other specific system implementation costs.

i) Mr Richard Eden is Director General of the Department of Tourism, Major Events, Small Business and the Commonwealth Games.

j) Dr Judith McLean is Chair of Southern Cross Soloists.

k) Mr Gary Smith is a Director of Flight Centre Ltd, Michael Hill International Ltd, Ci Events and Tourism Leisure Corporation Pty Ltd (which operates several businesses including Kingfisher Bay Resort, Eurong Beach resorts and Fraser Explorer Tours). Net transactions between the Corporation and Flight Centre Ltd for the year totalled $40,000 (GST inclusive). Transactions related to

travel vouchers and prizes relating to consumer marketing campaigns. Net transactions between the Corporation and Kingfisher Bay Resort, Eurong Beach resorts and Fraser Explorer Tours for the year totalled a net receipt of $45,744 (GST inclusive). Transactions related to payments for accommodation and receipts for stand-alone advertising booked through the Corporation’s co-operative marketing services provider.

l) Ms Anna Guillan is the Executive General Manager of Sales & Marketing for Hayman & Mulpha Hotels Australia. Net transactions between the Corporation and Mulpha Hotels Australia for the year totalled $7,459 (GST inclusive). Transactions related to payments for accommodation and co-operative marketing campaigns and receipts for stand-alone advertising booked through the Corporation’s co-operative marketing services provider.

m) Mr Alan Smith is a Director for Outback Aussie Tours Pty Ltd. Net transactions between the Corporation and Outback Aussie Tours Pty Ltd for the year totalled $568 (GST inclusive). Transactions related to stand-alone advertising booked through the Corporation’s co-operative marketing services provider and workshop attendance fees.

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, Gold Coast Events Co. Pty Ltd, Asia Pacific Screen Awards Ltd and Gold Coast Events Management Ltd.

The parent entity provided funding to:

• Gold Coast Events Co. Pty Ltd for the operation of events in the amount of $9,000,000 during the period since acquisition (11 December 2012) and 30 June 2013;

• The Asia Pacific Screen Awards Ltd for the operation and management of the awards in the amount of $314,685 during the period since acquisition (11 December 2012) and 30 June 2013; and

• Gold Coast Events Management Ltd for the operation and management of the Gold Coast Airport Marathon in the amount of $400,000 during the period since acquisition (11 December 2012) and 30 June 2013; and

• Tourism and Events Queensland Employing Office for the provision of employment services in the amount of $15,055,772 for the year ended 30 June 2013.



Note 21 – Board Remuneration

The role of the Board of Directors 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 of Directors can be found in the body of the Annual Report under the section relating to Corporate Governance.

Current Incumbents

Position NameAppointment Authority

Date Appointed to Position

Chairman Stephen Gregg Governor in Council 3 August 2012Deputy Chairman Julieanne Alroe Governor in Council 1 November 2011Board Member James Corvan Governor in Council 10 August 2012Board Member Phillip Di Bella Governor in Council 10 August 2012Board Member Paul Donovan Governor in Council 10 August 2012Board Member Libby Marshall Governor in Council 10 August 2012Board Member Garth Prowd OAM Governor in Council 10 August 2012Board Member Liz Ward Governor in Council 10 August 2012Board Member Ian Gillespie Governor in Council 10 August 2012Board Member Gary Smith Governor in Council 20 December 2012Board Member Dr Judith McLean Governor in Council 20 December 2012Board Member Alan Smith Governor in Council 20 December 2012Board Member Anna Guillan Governor in Council 20 December 2012

Board Member Dr Richard Eden

Permanent member under Tourism and Events Queensland Act 2012

3 April 2012

Remuneration policy for the Corporation’s Board of Directors is set by the Governor in Council as provided for under the Tourism and Events Queensland Act 2012.

Remuneration for Directors comprises the following components:

• Short term benefits which include board member fees and mileage allowance

• Post-employment benefits which include superannuation contributions


Note 21 – Board Remuneration (continued)

1 July 2012 – 30 June 2013 Position Name

Short Term Employee

Benefits $000

Post Employment

Benefits $000

Total Remuneration

$000

Chairman (to 2 August 2012) Don Morris AO 3 - 3Chairman (from 3 August 2012) Stephen Gregg 59 5 64Deputy Chairman Julianne Alroe 10 1 11Board member (to 9 August 2012) Grant Cassidy 1 - 1Board member (to 9 August 2012) Tony Baker 1 - 1Board member (to 9 August 2012) Pam Hardgrave 2 - 2Board member (to 9 August 2012) Peter Savoff 1 - 1Board member (to 9 August 2012) Peter Lynch 2 - 2Board member (to 9 August 2012) Adrian Bram 2 - 2Board member (to 9 August 2012) Danielle Duell 2 - 2Board member (from 10 August 2012) James Corvan 9 1 10Board member (from 10 August 2012) Phillip Di Bella 9 1 10Board member (from 10 August 2012) Paul Donovan 9 1 10Board member (from 10 August 2012) Libby Marshall 9 1 10Board member (from 10 August 2012) Garth Prowd OAM 10 1 11Board member (from 20 December 2012) Gary Smith 5 - 5Board member (from 20 December 2012) Dr Judith McLean 6 1 7Board member (from 10 August 2012) Liz Ward 9 1 10Board member (from 10 August 2012) Ian Gillespie 9 1 10Board member (from 20 December 2012) Alan Smith 6 1 7Board member (from 20 December 2012) Anna Guillan 6 1 7Board member Dr Richard Eden - - -

1 July 2011 – 30 June 2012 Position Name

Short Term Employee

Benefits $000

Post Employment

Benefits $000

Total Remuneration

$000

Chairman Don Morris AO 34 3 37Deputy Chairman (to 31 October 2011) Julie McGlone 4 - 4Deputy Chairman Julianne Alroe 11 1 12Board Member Grant Cassidy 15 1 16Board Member Pam Hardgrave 13 1 14Board Member Peter Lynch 14 1 15Board Member Peter Savoff 13 1 14Board Member Tony Baker 11 1 12Board Member Adrian Bram 7 1 8Board Member Danielle Duell 7 1 8Board Member (to 31 October 2011) Shane O’Reilly 4 - 4Board Member (Ex-officio member as CEO (DG) of the administering Department under Tourism Queensland Act 1979)

Dr Richard Eden - - -

Mark Bermingham - - -



Note 22 – Administrative Restructure

On 11 December 2012 the Queensland Parliament passed the Tourism and Events Queensland Act 2012.

The Act provides for the continued existence of Tourism Queensland as Tourism and Events Queensland and the Tourism Queensland Employing Office as the Tourism and Events Queensland Employing Office.

On commencement of the Act, the assets and liabilities of Events Queensland were transferred to the Corporation together with Events Queensland’s controlled entities; Gold Coast Events Co. Pty Ltd, Asia Pacific Screen Awards Ltd and Gold Coast Events Management Ltd. Details of the Corporation’s controlled entities are disclosed in Note 23.

As a result of these changes, the following assets and liabilities were transferred to Tourism and Events Queensland from Events Queensland and the Events Queensland Group:

$000AssetsCash and cash equivalents 13,457Receivables 2,061Other assets (current) 164Property, plant and equipment 945Financial asset 1,500Total Assets 18,127

LiabilitiesPayables 4,629Other liabilities (current) 58Other liabilities (non-current) 532Total Liabilities 5,219Net Assets Transferred 12,908

The effect of this transfer of net assets has been accounted for as an adjustment to contributed equity in accordance with APG 9 Accounting for Contributions by owners and distributions to owners as presented in the Statement of Changes in Equity.

In addition to the transfer of net assets, eighteen employees were transferred from Events Queensland to the Tourism and Events Queensland Employing Office.

The expenses and revenues of Events Queensland and subsidiaries, Gold Coast Events Co. Pty Ltd, Asia Pacific Screen Awards Ltd and Gold Coast Events Management Ltd for the period 1 July 2012 to 10 December 2012 are not reflected in the Corporation’s Statement of Comprehensive Income as the transfer of net assets at the commencement date was accounted for as an adjustment to contributed equity as outlined above.


Note 23 – Controlled Entities

Investment in controlled entities comprises the following:

Controlled Entity 2013 $000

2012 $000

Gold Coast Events Co. Pty Ltd 1,780 -Gold Coast Events Management Ltd 1,608 -Asia Pacific Screen Awards Ltd (37) -Tourism and Events Queensland Employing Office - -Total investment in controlled entities 3,351 -

Investment in Gold Coast Events Co. Pty Ltd, Gold Coast Events Management Ltd and Asia Pacific Screen Awards Ltd represent net assets/(liabilities) at the date of acquisition (11 December 2012).

Gold Coast Events Co. Pty Ltd manages a portfolio of motorsport events.

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

The Asia Pacific Screen Awards Ltd’s principal activity is hosting an annual Awards ceremony each November to recognise and promote the cinematic excellence and cultural diversity of the Asia Pacific region.

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

Note 24 – Contingent Liabilities

There were no known contingent liabilities as at reporting date (2012: $nil).

Note 25 – Events Occurring after Balance Date

It is proposed that during the 2013-14 financial year the Corporation will transfer the assets of the Gold Coast Events Co. Pty Ltd to V8 Supercars Australia Pty Ltd and the operations and intellectual property of the Asia Pacific Screen Awards Ltd to Brisbane Marketing Pty Ltd. Following the transfers of assets and operations it is proposed that both companies will be wound up.



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; and

(ii) the consolidated 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 and the consolidated entity for the year ended 30 June 2013 and of the financial position of the Corporation and the consolidated entity as at the end of that year.

S GREGG Chairman

S WRIGHT Chief Executive Officer

S MATTHEWS Director Finance

Dated: 13 August 2013

Certificate of Tourism and Events Queensland


Independent Auditor’s Report

To the Board of Tourism and Events Queensland

Report on the Financial Report

I have audited the accompanying financial report of Tourism and Events Queensland, which comprises the statements of financial position as at 30 June 2013, the statements of comprehensive income, statements of changes in equity and statements of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and certificates given by the Chairman, Chief Executive Officer and Director Finance of the entity and the consolidated entity comprising Tourism and Events Queensland and the entities it controlled at the year’s end or from time to time during the financial year.

The Board’s Responsibility for the Financial Report

The Board of Tourism and Events Queensland is responsible for the preparation of the financial report that gives a true and fair view in accordance with prescribed accounting requirements identified in the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009, including compliance with Australian Accounting Standards. 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.

Auditor’s Responsibility

My responsibility is to express an opinion on the financial report based on the audit. The audit was conducted in accordance with the Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. Those standards require compliance with relevant ethical requirements relating to audit engagements and that the audit is planned and performed to obtain reasonable assurance about whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the entity’s preparation of the financial report that gives a true and fair view 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, other than in expressing an opinion on compliance with prescribed requirements. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board, as well as evaluating the overall presentation of the financial report including any mandatory financial reporting requirements approved by the Treasurer for application in Queensland.

I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion.


Independence

The Auditor-General Act 2009 promotes the independence of the Auditor General and all authorised auditors. The Auditor-General is the auditor of all Queensland public sector entities and can only be removed by Parliament.

The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any person about the way in which audit powers are to be exercised. The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matters which in the Auditor-General’s opinion are significant.

Opinion

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

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

(b) in my opinion –

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

(ii) the financial report presents a true and fair view, in accordance with the prescribed accounting standards, of the transactions of Tourism and Events Queensland and the consolidated entity for the financial year 1 July 2012 to 30 June 2013 and of the financial position as at the end of that year.

Other Matters - Electronic Presentation of the Audited Financial Report

Those viewing an electronic presentation of these financial statements should note that audit does not provide assurance on the integrity of the information presented electronically and does not provide an opinion on any information which may be hyperlinked to or from the financial statements. If users of the financial statements are concerned with the inherent risks arising from electronic presentation of information, they are advised to refer to the printed copy of the audited financial statements to confirm the accuracy of this electronically presented information.

M KEANE Delegate of the Auditor General of Queensland

Brisbane, 22 August 2013


Compliance checklist

Summary of requirement Basis for requirement Annual report referenceLetter of compliance • A letter of compliance from the accountable

officer or statutory body to the relevant MinisterARRs – section 8 Inside front cover

Accessibility • Table of contents

• Glossary

ARRs – section 10.1 Contents (p.3)

N/A• Public availability ARRs – section 10.2 Inside front cover• Interpreter service statement Queensland Government

Language Services Policy

ARRs – section 10.3

Inside front cover

• Copyright notice Copyright Act 1968


Inside front cover

• Information licensing Queensland Government Enterprise Architecture – Information licensing


N/A

General information • Introductory Information ARRs – section 11.1 About Tourism and Events Queensland (p.5)

• Agency role and main functions ARRs – section 11.2 About Tourism and Events Queensland (p.5)

Tourism and Events Queensland directory (p.76-77)

• Operating environment ARRs – section 11.3 About Tourism and Events Queensland (p.5)

The strategic and operating environment (p.9)

Corporate governance (p.22-24)

Financial report (p.70)• Machinery of Government changes ARRs – section 11.4 About Tourism and Events

Queensland (p.5)

Financial report (p.33, p.69)Non-financial performance • Government objectives for the community ARRs – section 12.1 About Tourism and Events

Queensland (p.5)

DestinationQ (p.10-11)• Other whole-of-government plans / specific

initiativesARRs – section 12.2 DestinationQ (p.10-11)

National tourism priorities (p.11)• Agency objectives and performance indicators ARRs – section 12.3 Tourism and Events Queensland

priorities 2012-13 (p.16-21)

• Agency service areas, service standards and other measures

ARRs – section 12.4 Annual Performance Statement 2012-13 (p.21)

Financial performance • Summary of financial performance ARRs – section 13.1 Financial summary (p.31-32)• Chief Finance Officer (CFO) statement ARRs – section 13.2 N/A


Summary of requirement Basis for requirement Annual report referenceGovernance – management and structure

• Organisational structure ARRs – section 14.1 Organisation structure (p.5-6)

Corporate governance (p.22-25)• Executive management ARRs – section 14.2 Organisation structure (p.6)• Related entities ARRs – section 14.3 Related entities (p.28)

Financial summary (p.31-32)

Financial report (p.33, p.70)• Boards and committees ARRs – section 14.4 Corporate governance (p.22)

Board performance (p.22)

Board committees (p.23)

Financial report (p.67-68)• Public Sector Ethics Act 1994 Public Sector Ethics Act 1994

(section 23 and Schedule)


Statutory obligations (p.29)

Governance – risk management and accountability

• Risk management ARRs – section 15.1 Audit and Remuneration Committee meetings (p.26)

Risk management (p.27)• External Scrutiny ARRs – section 15.2 Audit and Remuneration

Committee (p.23)

External scrutiny (p.27)• Audit committee ARRs – section 15.3 Audit and Remuneration

Committee (p.23)

Audit and Remuneration Committee meetings (p.26)

• Internal Audit ARRs – section 15.4 Internal audit (p.27)• Public Sector Renewal Program ARRs – section 15.5 Statutory obligations (p.29)• Information systems and recordkeeping ARRs – section 15.7 Statutory obligations (p.29)

Governance – human resources

• Workforce planning, attraction and retention and performance

ARRs – section 16.1 Workforce planning, attraction and retention (p.30)

• Early retirement, redundancy and retrenchment Directive No.11/12 Early Retirement, Redundancy and Retrenchment


N/A

• Voluntary Separation Program ARRs – section 16.3 N/AOpen Data • Open Data ARRs – section 17 Statutory obligations (p.29)Financial statements • Certification of financial statements FAA – section 62

FPMS – sections 42, 43 and 50


Financial report (p.71)

• Independent Auditors Report FAA – section 62

FPMS – section 50


Financial report (p.72-73)

• Remuneration disclosures Financial Reporting Requirements for Queensland Government Agencies


Financial report (p.48-51)

FAA Financial Accountability Act 2009 FPMS Financial and Performance Management Standard 2009 ARRs Annual report requirements for Queensland Government agencies

* Tourism and Events Queensland has not included a glossary as part of this annual report as it believes all industry-specific terms and acronyms are adequately outlined within the body of this document.


Tourism and Events Queensland directory

Tourism and Events Queensland Head Office

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

Contact Officer Director Strategy and Research Tel: +61 (7) 3535 5270 Email: [email protected]

Destination offices

Brisbane and Southern Queensland Country Based in Head Office Postal: Tourism and Events Queensland GPO Box 328, Brisbane QLD 4001 Tel: +61 (7) 3535 5337 or 0419 645 955

Gold Coast and Hinterland Suite N301 Oracle North 12 Charles Avenue Broadbeach QLD 4218 Postal: Tourism and Events Queensland GPO Box 328, Brisbane QLD 4001 Tel: 0428 584 121

Outback and Gulf Based in Head Office Postal: Tourism and Events Queensland GPO Box 328, Brisbane QLD 4001 Tel: 0439 476 106

Southern Great Barrier Reef Postal: Tourism and Events Queensland GPO Box 328, Brisbane QLD 4001 Tel: +61 (7) 4938 4209 or 0428 943 235

Sunshine Coast and Fraser Coast c/- Sunshine Coast Regional Council, Council Chambers 9 Pelican Street, Tewantin QLD 4565 Postal: Locked Bag 72 Sunshine Coast Mail Centre 4560 Tel: +61 (7) 5449 5105 or 0406 539 122

The Tropics and the Great Barrier Reef 51 The Esplanade Cairns QLD 4870 Postal: PO Box 865, Cairns QLD 4870 Tel: +61 (7) 4015 1206

Whitsundays, Islands of the Great Barrier Reef and Mackay 4/5 Carlo Drive Cannonvale QLD 4802 Postal: PO Box 194, Airlie Beach QLD 4802 Tel: +61 (7) 4946 0106 or 0419 662 933


International representation

Americas 6100 Center Drive Suite 1150 Los Angeles, CA 90045 USA Tel: + 1 310 695 3251 Fax: +1 310 695 3258

China Room 3709-3710, 37th Floor CITIC Square 1168 Nanjing Road West Shanghai, China 200041 Tel: + 86 21 5292 9668 Fax: + 86 21 5292 9698

Europe Represented by Global Spot Oberbrunner Str. 4, 81475 Munich, Germany Tel: +49 89 759 6988 20 Fax: +49 89 759 6988 10

Hong Kong Room 506, 5/F, Sun Hung Kai Centre, 30 Harbour Road, Wan Chai, Hong Kong Tel: +852 2827 4322 Fax: +852 2877 5668

India Represented by Tourismatique 21 Arun Chambers, Ground Floor Tardeo, Mumbai 400034 India Tel: +91 22 2352 6648 / 49

Japan Shiroyama Trust Tower 15F, 4-3-1, Toranomon Minato-ku Tokyo 105-6015 Japan Tel: +81 3 5404 7141 Fax: +81 3 3436 7667

Korea 20th Floor, Youngpoong Building 33 Serin-dong, Chongro-ku Seoul 110-752 Korea Tel: +822 399 5767 Fax: +822 399 7878

Malaysia Postal address: Suite #213, Lot No. B1.03.00, Level B1, Pavillion KL 168 Jalan Bukit Bintang 55100 Kuala Lumpur Tel: +6012 2318 831

New Zealand Level 2, 1 Teed Street Newmarket, Auckland 1023, New Zealand PO Box 99744 Newmarket, Auckland 1149, New Zealand Tel: +64 9 374 1780 Fax: +64 9 374 1781

Singapore 101 Thomson Road #08-02 United Square Singapore 307591 Tel: + 65 6 253 2811 Fax: + 65 6 253 8653

Taiwan Suite 3202, 32nd Floor International Trade Building No. 333 Keelung Road Section 1 Taipei 110 Taiwan Tel: +886 2 2723 3196 Fax: +886 2 2723 3197

United Arab Emirates Represented by the Oldfield Management Group Suite 313, Building 10, Dubai Media City PO Box 215146 Dubai, United Arab Emirates Tel: +97 1 558 847 546 Fax: +97 1 4390 4051

United Kingdom Represented by Hills Balfour 3rd Floor Colechurch House 1 London Bridge Walk London, SE1 2SX England Tel: +44 207 367 0900 Fax: +44 207 407 3810


Documents

2012-13 Annual ReportOrganisation structure The new Tourism and Events Queensland board met for the first time in December 2012, following the passing of the Tourism and Events Queensland