ANNUALREPORT 17/18

03. 2017 / 18 YEAR IN REVIEW04. CHAIRMAN’S REVIEW05. CEO’S REVIEW06. SALES ACTIVITY07. INDUSTRY EVENTS08. OTHER ACTIVITIES09. CORPORATE SERVICES10. MEMBERSHIP11. MEMBER EVENTS12. PARTNERS13. ORGANISATION14. BUREAU TEAM15. FINANCIAL REPORTS

CONTENTS

YEAR IN REVIEW...2017/18

DELEGATES

46,158BED NIGHTS

187,800

EVENTS

130

ECONOMIC BENEFIT

$180M

JOBS CREATED

1,683

Jim KoutsChairman

The Adelaide Convention Bureau Board set out 18 months ago to develop an ambitious plan to grow the economic contribution of the business events sector. This culminated in a policy launch in October 2017 with the aim of securing unilateral support across government, the tourism industry and the broader South Australian business community.

The policy was developed to maximise the benefits and opportunities arising from the major funding of our business events infrastructure across the public and private sector. It was designed to better leverage the $400 million redevelopment of the Adelaide Convention Centre, greater international accessibility of the State and growth in the Asian incentive tour group market.

The Bureau has enjoyed bipartisan support for business events over a period of time and recently the new Liberal Government through Hon David Ridgway MLC, Minister for Trade, Tourism & Investment increased funding for business events.

This timely increase in funding means South Australia has a golden opportunity to capitalise on our advantage as a world-class international conference destination. The legacy opportunities that arise from hosting business events should not be underestimated in advancing the growth of industries and the creation of jobs.

On behalf of the sector, the Bureau thanks and commends the Minister for this funding support and looks forward to continuing to work alongside key government agencies, including the South Australian Tourism Commission, Treasury & Finance and the City of Adelaide as key stakeholders to grow the value that high spending business events visitors contribute to the State economy.

Management will now focus its efforts on international market development and will appoint new resources dedicated to identifying sector-based conventions that compliment South Australia’s pillars of economic excellence and to harness bid champions that assist our bidding prospects. Asia, and China, also provides significant opportunities to grow incentive tour group visitation in the short to medium term for city and regional members.

The Bureau and business events sector are in a healthy position. This is based on the hard work of many people over a number of years. In particular, I would acknowledge the significant contribution by Phil Baker who prepares to leave the Board after 20 years - 11 as Chair. The industry and for that matter the State has benefited significantly through the tireless and enthusiastic contribution of Phil to this not for profit organisation and to the many other leadership roles he has had in South Australia.

Finally, I recognise the support and collaboration from the South Australian Tourism Commission and the City of Adelaide. A term my predecessor used often, and I will continue to endorse is the strength of the Bureau is its members and I thank all members for their support and partnership in continuing to grow the economic contribution of business events to the State economy.

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CHAIRMAN’S REVIEW

JIM KOUTS

Damien KittoChief Executive Officer

The Adelaide Convention Bureau produced a high level of activity that has delivered a solid result for now and years to come.

In 2017/18, 130 events were secured to Adelaide, resulting in the future arrival of 46,158 delegates that will stay 187,834 bed nights and generate an estimated economic benefit to the State of $180.7 million. This future business will support and generate 1,683 jobs for South Australians.

Pleasingly, 24 international and Asia Pacific events were secured, including two large scale conventions - the 2020 World Indigenous Peoples Conference on Education and the 2024 World Congress on Medical Physics and Biomedical Engineering that will attract 3,000 and 2,500 delegates respectively. This is the first time two large-scale international conventions have been won in a 12-month period. A further 6 events won will deliver more than 1,000 delegates and 31 events fall within the medical and life sciences industry attracting more than 15,000 delegates associated with the Biomed City.

The Bureau continued to build the momentum in China to engage 370 corporate clients and agents to further promote the variety of unique and pure experiences on offer. Significant for the years ahead, the Bureau partnered with Tourism Australia to host 6 high level corporate influencers on famil. The event was highly successful and was labelled one of the best famils experienced by clients. A number of these large incentive groups are now being pursued with signs encouraging for the future.

Team Adelaide has again been a strong attribute to winning business events, this approach resonates strongly in China. We thank the South Australian Tourism Commission, City of Adelaide and members for this collaboration, as these partnerships are critical to increasing international success.

The Bureau and business events sector moves forward with the knowledge of increased funding from the State Government that will enable the destination to be more competitive in the pursuit of international events. With industry competition increasing, this funding support is timely to maximise a pipeline of over $400 million of business opportunity.

On behalf of the Bureau Team, thank you to the Board for its advice and guidance over this significant year. The volunteer Directors are hard working and passionately support the endeavours of the Bureau and business events sector. Phil Baker has been a key driver of this approach and after 20 years on the Board, we bid farewell and are forever grateful for Phil’s tremendous vision and support over this period.

CEO’S REVIEWCEO’S REVIEW

DAMIEN KITTO

In 2017 / 2018 the Bureau sales team conducted 26 sales missions into key national and international markets, maintaining a good level of activity during a period of time where the destination is becoming established in the wider business events community.

For the first time in the Bureau’s 43-year history two large international conferences were confirmed to the destination within the same 12 months.

The World Indigenous Peoples Conference on Education 2020 – 3,000 delegates and the World Congress on Medical Physics and Biomedical Engineering 2024 – 2,500 delegates. These two events alone will generate $31m in economic benefit and 36,500 bed nights for the State. The Bureau secured $62m of international business over the past 12 months, this is almost double the previous year.

The importance of international business events to the state was on display from 25th September 2017, with 4,500 delegates attending the International Astronautical Congress. This prestigious event captured headlines and imagination around the world as tech entrepreneur Elon Musk unveiled his plans for missions to Mars and the Australian Government announced the creation of a national space agency.

The benefits of this event are still being captured as legacies of investment and trade are still being told. The event attracted 1,500 more delegates than anticipated, highlighting that the perception of distance as a barrier for international travel can be overcome and that a small city with a big city infrastructure can host impressive international conferences.

On a domestic front, the sales team continued its missions into the markets across Australia and New Zealand. Armed with an ever-developing Riverbank, new experiences in the nearby regions and an increased interest in South Australia, the team secured business events that will continue to provide opportunities for members.

The Bureau has also been investing a good level of resources in the South East Asian and Chinese markets. The Bureau focused building momentum by continuing the education of agents and corporations on Adelaide, South Australia’s experiences available

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for incentive groups. It was also important that the awareness gained after hosting the Perfect China group was capitalised on through constant in-market presence and securing another medium to large incentive groups to Adelaide.

This year the Bureau confirmed the 750 pax Joymain incentive group for June 2018. The event continued the momentum of Adelaide becoming known as an incentive destination within Greater China. Moving into the third and final year of the program, the Bureau has considerable value in the pipeline as companies who have interest in sending large scale groups is being generated.

The Bureau was successful in securing strong engagement from key industry partners (e.g. Tourism Australia and SATC) to help drive the continued development of the Incentives Adelaide program. This was underpinned by familiarisation activity, along with targeted marketing and sales activity.

SALES ACTIVITY

IN MARKET ACTIVITY

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INDUSTRY EVENTS

The 15th edition of Destination SA was delivered, with this key showcase serving as the focal point of in-market activity to profile the destination and convert bid opportunities. There were 37 buyers from around Australia, along with 1 New Zealand guest and 4 media guests who were hosted across an interactive program that showcased the city and the nearby regions.

The event culminated in a gala dinner in the heart of McLaren Vale with the newly opened d’Arenberg Cube hosting exhibitors and buyers on a truly unique evening. Guests were then treated to a program familiarising them with what Adelaide and the surrounding regions had to offer.

The event was deemed a success with a 100% satisfaction rating from the participants. Importantly 89% of the buyers are now more likely to consider Adelaide as a business events destination and 93% indicated they had positively changed their perception of Adelaide.

With its highly qualified clientele, DSA continues to offer local industry a highly effective platform to showcase its strengths and benefits. Indeed, results from the 2018 event were no exception, with positive feedback received from hosted guests and exhibitors alike, and a pipeline of opportunities linked to hosted guests forecast at over $73 million in value to the State.

DESTINATION SOUTH AUSTRALIA

The Conventions Adelaide Program continues to increase Adelaide and South Australia’s ability to attract major national, Asia Pacific, and international association conventions that are aligned to the State’s primary areas of industry and research. This is achieved via a highly targeted and strategic state-wide cooperative approach from key industry contributors and beneficiaries.

The second Conventions Adelaide Grant Awards Program was delivered in 2017/18. The objective of this program is to strengthen the destination’s ability to host major international conventions that profile the State’s key areas of life sciences, technology, research and innovation.

Key activities during the year include:• BioMed City showcase• Agriculture, Food & Wine showcase• Industry leaders lunches• Grant Awards Program

CONVENTIONS ADELAIDE

The program secured 5 international conventions generating a potential 5,800 delegates and a combined economic benefit of $33.3 million.

Prominent events secured through the Conventions Adelaide Program in 2017/18 include:• International Conference on Computing in High Energy

Physics 2019, 500 delegates• World Indigenous Peoples Conference on Education 2020,

3,000 delegates• World Congress of Echocardiography & Allied Techniques

2022, 1,500 delegates• World Congress on Medical Physics and Biomedical

Engineering 2024, 2,500 delegates

ADELAIDE’S BIOMED CITY SHOWCASENow in its fourth year, the BioMed City Showcase provided the opportunity for an exclusive group of key association executives from Australia to learn more about the BioMed precinct and why Adelaide is ideally positioned to be Australia’s destination of choice for major health and medical conventions. In attendance were 29 local health industry representatives, as well as 12 national guests aligned with international convention opportunities forecast to generate $80 million in economic benefit. Pleasingly, 100% of hosted guests said their perception of Adelaide as a business events destination changed positively as a result of attending the showcase.

ADELAIDE’S AGRICUTLURE, FOOD AND WINE SHOWCASEThis showcase was continued in efforts to leverage South Australia’s reputation as a leader in the agricultural sector. The showcase attracted 54 guests, including 8 interstate visitors worth a potential $22 million economic benefit to Adelaide. The event was also attended by Minister for Trade, Tourism and Investment, Hon David Ridgway MLC, and Minister for Primary Industries and Regional Development, Hon Tim Whetstone MP. This event resulted in 100% of hosted guests either very satisfied or extremely satisfied with Adelaide, South Australia as a conference destination.

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OTHER ACTIVITIES

The pinnacle for public relations during this year was the 68th International Astronautical Congress. The event was successful for a multitude of reasons, its increase in delegate numbers, the legacy of a national space agency, billionaire Elon Musk in attendance, to name a few. The event has since been used as a case study for the not just the Bureau, but the wider industry in South Australia.

Whilst the Bureau developed stories throughout the trade publications across the globe, it was the plethora of news articles both locally and nationally that increase the profile of Adelaide.

The Bureau would like to thank Sue Hill of Foster Hill PR for her ongoing support and fantastic contribution.

PUBLIC RELATIONS

The Bureau’s Event Services function directs and communicates opportunities to members for events that are already destined for the state.

EVENTS SERVICES

49 events were placed through the membership representing a forecast economic benefit of $27.8 million to the state generating 29,156 bed nights.

Examples of some of the business events directed through the event services function include:• South Pacific Tourism Exchange, April 2018, 250 delegates. • Australasian Society for Intellectual Disability Conference, Nov

2019, 300 delegates. • Australian Society of Archivists National Conference, Oct 2019,

250 delegates

The 2018/19 Planner’s Guide was uploaded onto the website and distributed to a database of 5,000 Australian and international business events professionals (qualified contacts) and via social media channels. The Planners Guide was also loaded to USBs and taken on all sales calls, trade shows and other in-market missions.

PLANNER’S GUIDE

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CORPORATE SERVICES

After a short six months as Industry & Engagement Manager, Linda Ross resigned to take up a Sales Manager role with SATC. Soon after the Bureau appointed Darren Baynes, commencing in February 2018.

The Bureau also farewelled two of its sales team members, Daniel Franklin and Gemma Nelson. Daniel resigned from the industry and looking to pursue a new business venture. Gemma left the Bureau in November to travel with an open ticket around the world with her partner Asa. We wish both Daniel and Gemma all the best for their future.

The Bureau was fortunate to find recruits Casey Smith and Kerri Bryant as Business Development Managers, Sydney and Melbourne respectively. Casey commenced in August 2017 and Kerri in January 2018.

Event Services Officer Nick Blight resigned in April accepting a Visitor Services Coordinator role with the City of Port Adelaide. The Bureau didn’t need to look too far, appointing former Bureau staff member Melissa Reilly in a newly created role of Manager – International Strategy & Programs.

STAFFThis year delivered a high level of activity and with this a small surplus of $5,011. This slightly grows the members equity to $457,336.

The Bureau continues its strong relationship with key stakeholders, South Australian Tourism Commission and Adelaide City Council. Their funding contribution and ongoing support strengthens the Bureau’s capabilities in securing events for the City and the State.

The 2018 grant year application for an Export Market Development Grant (EMDG) was approved receiving $35,000.

FINANCE

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MEMBERSHIP

The Bureau finished the year with 205 representing a range of venues and suppliers.

Membership subscription fees and in-kind support distributed across Destination SA, site inspections and familiarisation programs amounted to $841,750 from industry, highlighting the strong support the Bureau receives from its membership base. The Bureau continues to receive strong support from its nine Strategic Partners and we thank them for their continued support.

RESULTS

Regional visits were conducted by staff throughout the state, including the Barossa, Riverland, Kangaroo Island and Yorke Peninsula. Throughout the year the sales team conducted numerous site inspections of member products. All new members were invited to host a site inspection.

CONTACT

The Bureau’s aim is to continually improve the quality and attendance of events to facilitate member to member networking, educate members on products available and provide numerous avenues for business opportunities.

With the support of members, the Bureau is delighted to see with the high quality of events delivered throughout the year.

The following events and activities were hosted by the Bureau: • 6 Business Hours – GU Film house, Adelaide Convention

Centre, Station Lane Christmas Party, Adelaide Festival Centre, Hindley HQ Complex and Hotel Richmond.

• Monthly member training sessions were held at the Bureau offices which have been well supported throughout the year.

• Annual General Meeting & release of the Billion Dollar Benefit Policy - Adelaide Oval.

MEMBERSHIP EVENTS & ACTIVITIES

• Destination South Australia – the event was well attended and received with 34 member exhibitors and 40 invited buyers hosted by the Adelaide Convention Centre.

• The Welcome Reception held at Adelaide Oval provided a warm and welcoming atmosphere where the selection of SA foods and wines were enjoyed by the guests. The d’Arenberg Cube didn’t disappoint providing a 5 star degustation experience to finish off an eventful day.

• The Famil’s showcased the Barossa, Adelaide Hills and McLaren Vale.

• The inaugural ConnectSA held in 2017 was a great success with 35 hosted clients connecting with more than 25 exhibitors at Published Arthouse

• ‘Team Adelaide’ consisting of 13 Bureau Members attended AIME in February 2018.

HIGHLIGHTS

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MEMBER EVENTS

KEY STAKEHOLDERS:

STRATEGIC PARTNERS:

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PARTNERS

A D E L A I D E

CORPORATE SERVICESDamien Kitto - Chief Executive OfficerMary White - General ManagerLinda Ross - Industry and Engagement Manager (resigned December 2017)Darren Baynes - Industry and Engagement Manager (commenced February 2018)Rachael Rogers - Events Officer

SALES & MARKETINGNic Mercer - Director of Sales & MarketingGemma Nelson – Sales Manager (resigned October 2017)Lavender Feng - Asian Markets ManagerNick Blight - Event Services Officer (resigned May 2018)Marcella Visentin - Marketing OfficerTess Kidman - Research and Referral Executive Mike Melendez - Business Development ExecutiveCasey Smith - Business Development Manager (commenced August 2017)Kerri Bryant - Business Development Manager (commenced January 2018)Daniel Franklin - Business Development Manager (resigned December 2017)Ruby Balmer - Sales Team Coordinator

BOARD DIRECTORS

Jim Kouts - Independent appointment by the Board (elected Chair from January 2018)Phil Baker - Independent appointment by the Board (elected Deputy Chair from January 2018)Alec Gilbert – Adelaide Convention Centre (resigned November 2017)Anthony Kirchner – Adelaide Venue Management Corporation (appointed February 2018)Deputy Lord Mayor Sandy Verschoor - Appointed by Adelaide City Council (commenced December 2016)Cr. David Slama - Appointed by City of Adelaide (Proxy)Anne-Marie Quinn - All Occasions Group (Strategic Partner member level)John Culshaw - Majestic Hotels (Premier member level)Cindy Hynes - WBH Lawyers (ESTE member level)Ian Horne - Australian Hotels Association (Connect member level)

ORGANISATION

BUREAU TEAM

FINANCIALREPORT

Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389 ‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to the ir clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation.

Grant Thornton House Level 3 170 Frome Street Adelaide, SA 5000 Correspondence to: GPO Box 1270 Adelaide SA 5001 T 61 8 8372 6666 F 61 8 8372 6677 E info.sa@au.gt.com W www.grantthornton.com.au

Auditor’s Independence Declaration To the Directors of Adelaide Convention Bureau Limited In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Adelaide Convention Bureau Limited for the year ended 30 June 2018, I declare that, to the best of my knowledge and belief, there have been: a no contraventions of the auditor independence requirements of the Corporations Act 2001 in

relation to the audit; and

b no contraventions of any applicable code of professional conduct in relation to the audit.

GRANT THORNTON AUDIT PTY LTD Chartered Accountants S K Edwards Partner – Audit & Assurance Adelaide, 20 September 2018

Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389 ‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation.

Grant Thornton House Level 3 170 Frome Street Adelaide, SA 5000 Correspondence to: GPO Box 1270 Adelaide SA 5001 T 61 8 8372 6666 F 61 8 8372 6677 E info.sa@au.gt.com W www.grantthornton.com.au

To the Members of Adelaide Convention Bureau Limited Report on the audit of the financial report Opinion We have audited the financial report of Adelaide Convention Bureau Limited (the Company), which comprises the statement of financial position as at 30 June 2018, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors’ declaration. In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001, including: a giving a true and fair view of the Company’s financial position as at 30 June 2018 and of its

performance for the year ended on that date; and

b complying with Australian Accounting Standards – Reduced Disclosure Requirements and the Corporations Regulations 2001.

Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independent Auditor’s Report

Information Other than the Financial Report and Auditor's Report Thereon The Directors are responsible for the other information. The other information comprises the information included in the Company’s annual report for the year ended 30 June 2018, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Report The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards – Reduced Disclosure Requirements and the Corporations Act 2001. The Directors’ responsibility also includes such internal control as the Directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the Directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar4.pdf. This description forms part of our auditor’s report. GRANT THORNTON AUDIT PTY LTD Chartered Accountants S K Edwards Partner – Audit & Assurance Adelaide, 20 September 2018

Aston House

Level 1, 15 Leigh Street

Adelaide South Australia 5000

Tel +61 (0)8 8237 0100

Email: enquiries@adelaideconvention.com.au

www.adelaideconvention.com.au

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