TOURISM CENTRAL AUSTRALIA ANNUAL REPORT€¦ · Printing & Stationary - $12,452 vs LY $17,464. Printing costs were re-negotiated in 2018-19 reducing overall expense, as well as a

TOURISM CENTRAL AUSTRALIA

ANNUAL REPORT

2 0 1 8 – 2 0 1 9

Our Organisation

2 TOURISM CENTRAL AUSTRALIA A N N U A L R E P O R T 2018-2019

CO N T E N T S

Chairperson’s report ........................................................................................ 3

Treasurer’s report .............................................................................................. 5

TCA Report Card 2018/2019 ......................................................................... 8

Independent auditor’s report ....................................................................... 9

Statement by the Board ...............................................................................11

Income Statement ..........................................................................................12

Statement of Financial Position .................................................................13

Statement of Changes in Equity ................................................................14

Notes to the Financial Statements ...........................................................15

Unaudited Detailed Income and Expenditure Statement ................20

C H A I R P E R S O N ’ S R E P O R T 2 0 1 8 / 1 9

What an interesting 12 months Tourism Central Australia and our industry had. Firstly, I would like to thank you - our wonderful members, the dedicated Staff at TCA and our loyal volunteers. The support for the TCA Board shown by everyone shows the dedication of our industry to remain strong and to ensure the Tourism Industry remains strong and vigilant.

The past 12 months has seen solid growth in visitor numbers to the Lasseter region (encompassing Uluru and Watarrka) with a 6.5% growth for past 12 months. A major factor in this growth has been the increase in the domestic market and Japanese market travelling to Uluru before the Climb closure in October.

The remainder of the Region, covered by Tourism Central Australia has seen a decline in visitation, but small growth for average spend per visitor. The decline in numbers is over a number of markets including key western international markets of UK and Germany and a drop in visiting friends and relatives and intrastate travel. Bucking the trend has been a solid growth of the China market.

TCA continues to work on regional dispersal of visitors across the Red Centre Region. We have visitor touchpoints and information outlets at the Uluru-Kata Tjuta National Park Cultural Centre and at the Kings Canyon Resort. Our aim is to have a fully staffed outlet at Yulara which we continue to advocate for on behalf of our members.

We also continue to advocate on key strategic items such as securing our aviation routes, removal of cabotage and better road access.

The TCA Board continues to work on the overall governance of the organisation. This year the Board has continued to work on many key items including; to see growth in the organisations Revenue, including a growth in our travel sales – resulting in increased bookings for our members and the industry and continuing to be a strong voice for the construction of the National Aboriginal Art Gallery in Alice Springs

Tourism Central Australia once again took out the NT Tourism Brolga award for the Visitor Services for the fourth year in a row. These wins gave us entry into the Australian Tourism Awards and we were delighted to take out the Bronze award. A win like this continues to put the spotlight on the Red Centre and is testament that our Organisation as a whole is on the right track.

I wish to thank all our hard-working staff and Volunteers, including our Ambassadors as it takes a real team effort to achieve such recognition. Finally, a big thank you to my fellow Board Members for your dedication, enthusiasm and insights, helping to guide our organisation. It has been a pleasure to have been elected as the Chairperson for such a dynamic organisation for the past 12 months. I am confident that TCA will continue to grow as an organisation.

Dale McIverTCA Chairperson


Our Organisation


THE VISITOR ECONOMY AND TOURISM NUMBERS CONTINUE TO GROW.


Tourism Central Australia. On the balance sheet, TCA ended the financial year with more than $555,000 in cash balances and positive net assets of more than $72,000. This reflects the efforts by the Board and management team to implement careful control of the Association’s resources and lead the organisation to a stable financial position.

The financial report for Tourism Central Australia Incorporated for the year ending 30 June 2019 was audited by Merit Partners. This is the third year that Merit Partners have conducted the audit for the Association. Merit Partners understand the Association’s core operations and structure well and continue to provide a thorough and efficient audit service. I would not hesitate to recommend them for next year’s audit.

Ellie NorrisTreasurer

Explanation of variances for the Detailed Income and Expenditure Statement for the year ended 30 June 2019

Pages 12-13 of the financial report details specific operational line items of the income and expenditure statement for the year ending 30 June 2019 in comparison to the same period for 2018. An explanation of the major variances as provided by the Corporate Services Manager follows;

REVENUE

VIC Sales (Products/Tour bookings) and Book Easy income - positive result, an increase of 56% in comparison to last year (LY)

OTHER REVENUE

Monopoly & Top Trumps - $69,400 in sponsorships received in 2018-19 FY.

Functions - $25,395 vs LY $38,742. The 2018-19-Awards night event was scaled down to reduce the price of attendance to the event. This decrease is also reflected in reduced expenditure incurred.

Consumer and Trade Show Participation – $5,909 vs LY $30,516. Consumer shows are organised by TCA & Tourism Top End in alternating years. Last year we received income from Tourism Top end and TNT of $23,408 as it was our year to organise attendance.

Interest – $3,539 vs LY $8,712. Interest income decreased due to funding now received bi-annually.

Other Grants – $173,007 vs LY $41,133. Includes income received from Department of Trade, business and Innovation for Tourism Development Officer program and Business growth program for visitor servicing recommendations report.

EXPENDITURE

Advertising - $47,978 vs LY $16,500. Included the hop on hop off trial bus service marketing, signage & launch expenditure. All costs associated with this trial were covered by TNT grant income and corporate sponsorship.

Art Trail Expense - $6,926 vs LY $1,692. Art trail booklet printing took place in 2018-19.

Bus Charter Fees - $34,800 vs LY $0. Fees for the 6-month trial hop on hop off bus service.

Awards Night Expense - $24,362 vs LY $32,898. Awards night event scaled down to reduce cost of attendance.

Computer Expenses - $34,704 vs LY $20,768. Additional costs seen in 2019 due to commencement of CRM implementation.

Cooperative advertising - $61,452 vs LY $0. Expenditure for Red Centre Monopoly boards.

Depreciation - $44,683 vs LY $19,445. Additional expense seen due to depreciation of second vehicle and upgrades to office hardware and equipment.

Function Costs - $25,524 vs LY $9,044. Includes additional costs for Tourism 2030 conference, business at sunset events, media awareness presentation and attendance at national tourism awards.

Motor Vehicle Expenses - $25,336 vs LY $10,843. With the addition of a second vehicle and creation of new roles such as the tourism industry development and visitor business manager role more travel to service surrounding areas and membership has taken place this FY.

Printing & Stationary - $12,452 vs LY $17,464. Printing costs were re-negotiated in 2018-19 reducing overall expense, as well as a constant effort to encourage a paperless office.

Professional Services - $26,710 vs LY $83,638. Last year Included one off expenditure for Digital Leap program, contribution towards East MacDonnell Ranges Tourism Masterplan and comparative study of airlines and routes in regional Australia.

Red Centre Adventurers - $31,282 vs LY $61,991. Filming costs of a brand-new campaign was seen in 2017-18 FY.

Research - $5,540 vs LY $0. Expenditure incurred from the Visitor Servicing recommendations report produced by the Tilma Group.

Salaries and Wages - $754,014 vs LY $620,228. TCA has been expanding its staffing within the VIC and Marketing departments.

Training and uniforms - $16,043 vs LY $8,778. As staff numbers increase, training costs have also increased proportionally. This year’s formal training involved marketing bootcamp and a focus on WHS compliance including 4WD training, anti-discrimination and bullying, first aid and fire warden training.

T R E A S U R E R ’ S R E P O R T

T R E A S U R E R ’ S R E P O R T (CO N T. )


Travel and accommodation - $31,503 vs LY $17,312. Increase in travel costs seen due to additional roles such as the Visitor Business Manager and Tourism Industry Development officer servicing surrounding areas and membership during 2019 FY.

Trade shows and destination development - $32,179 vs LY $50,716. Consumer shows organised by TCA & Tourism Top End in alternating years. Last year, TCA incurred full costs of organising attendance at the events.

Yulara VIC setup costs - $4,100 vs LY $0. An unmanned visitor centre was established at the Uluru-Kata Tjuta Cultural Centre.

Our Organisation


$372

.64

$322

.55

$317

.38

$359

.93

3.4%INCREASE

Average travel booking spend per client in the Alice Springs

Visitor Information Centre

2015/16 2016/17 2017/18 2018/19 2015/16 2016/17 2017/18 2018/19 2015/16 2016/17 2017/18 2018/19 2015/16 2016/17 2017/18 2018/19

20.7%INCREASEpage views of

www.discovercentralaustralia.com

12,5

59

14,7

49

283,

504

357,

354

83,5

39

131,

431

8,40

5

10,1

40

35,5

62

48,4

15

63,8

05

22,7

00

in Facebook followers for @VISITCENTRALAUSTRALIA

14.8% INCREASE

in Instagram followers for @VISITCENTRALAUS

24.1% INCREASE

40 PROACTIVE MEDIA STORIES about the tourism industry, and a total of 80 media interviews (TV/radio/print)

Promoted the Red Centre at 4 TRAVEL SHOWS around Australia

INDUSTRY WORKSHOPS, FUNCTIONS AND EVENTS

HOSTED BY TOURISM CENTRAL AUSTRALIA

22500

0

7500

15000

JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN

2014/2015 (115,352) 2015/2016 (89,733) 2016/2017 (91,534) 2017/2018 (84,102) 2018/2019 (90,203)

VIC DOOR TRAFFIC

TOURISM CENTRAL AUSTRALIA REPORT CARD 2018/2019

15

Our Organisation


80

78

76

74

72

70

68

66

64

6213/14FY 14/15FY 15/16FY 16/17FY 17/18FY 18/19FY

Tourism Central Australia staff participated in

97FAMILIARISATIONS across Alice Springs, Uluru, Kings

Canyon, Tennant Creek, the West and East MacDonnell Ranges, Coober Pedy,

William Creek and Darwin

NT NSW VIC QLD SA WA TAS ACT 0

1000

2000

3000

4000

5000

6000

7000

8000

INTERNATIONAL COUNTRY OF ORIGIN BY NUMBER OF BOOKINGS AT THE ALICE SPRINGS VISITOR

INFORMATION CENTRE (TOTAL SINCE 2012)

DOMESTIC VISITOR STATE OF ORIGIN BY NUMBER OF BOOKINGS AT ALICE SPRINGS

VISITOR INFORMATION CENTRE

PERCENTAGE OF TCA INCOME FROM GOVERNMENT

0

300

600

900

1200

1500

Othe

r eur

ope

Germ

any

Unite

d ki

ngdo

mNo

rth

Amer

icaFr

ance

Switz

erla

ndNe

w Z

eala

nd

Italy

Othe

r Asia

Japa

nCh

ina

Hong

Kon

gTa

iwan

Sout

h Am

erica

Mid

dle

East

Paci�

c Isla

nds

Afric

aRu

ssia

Our Organisation


Independent auditor’s report to the members of Tourism Central Australia Incorporated Report on the Audit of the Financial Report We have audited the accompanying financial report, being a special purpose financial report of Tourism Central Australia Incorporated (the “Association”), which comprises the Statement of Financial Position as at 30 June 2019, and the Income Statement and Statement of Changes in Equity for the year then ended, a summary of significant accounting policies, other explanatory notes and the Statement by the Board’s report. In our opinion, the financial report presents fairly, in all material respects, the financial position of Tourism Central Australia Incorporated as of 30 June 2019 and of its financial performance for the year then ended in accordance with the accounting policies described in Note 1 to the financial statements. 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 Association in accordance with the Associations Act NT 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. Emphasis of Matter - Basis of Accounting and Restriction on Distribution and Reliance

We draw attention to Note 1 to the financial report, which describes the basis of accounting. The financial report has been prepared to assist Tourism Central Australia Incorporated meet the requirements of the Associations Act and the Association’s constitution. As a result, the financial report may not be suitable for another purpose. Our report is intended solely for Tourism Central Australia Incorporated and should not be distributed to parties other than Tourism Central Australia Incorporated. Our opinion is not modified in respect of these matters. The Responsibility of the Board for the Financial Report The Association’s Board is responsible for the preparation of the financial statements, and has determined that the accounting policies described in Note 1 to the financial statements, are appropriate to meet the financial reporting requirements of the Associations Act NT and the Association’s Constitution and are appropriate to meet the needs of the members. The Board’s responsibility also includes such internal control as the Board determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial report, the Board is responsible for assessing the Association’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the management either intends to liquidate the Association or to cease operations, or have no realistic alternative but to do so.

Our Organisation


Auditor’s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report for the year ended 30 June 2019 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 the financial report. As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

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

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

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

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

Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

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

Merit Partners

MunLi Chee Director DARWIN 14 October 2019

10/14/2019


Our Organisation


Our Organisation


Our Organisation


Our Organisation


Our Organisation


Our Organisation


Our Organisation


Our Organisation


Our Organisation


Our Organisation


DISCLAIMER ON ADDITIONAL FINANCIAL INFORMATION The additional financial information, being the Unaudited Detailed Income & Expenditure Statement as attached on pages 12 to 13, has been compiled by the management of Tourism Central Australia Incorporated. No audit or review has been performed by us and accordingly no assurance is expressed. Accordingly, we do not express an opinion on the additional financial information and no warranty of accuracy or reliability is given. To the extent permitted by law, we do not accept liability for any loss or damage which any person may suffer arising from any negligence on our part. No person should rely on the additional financial information without having an audit or review conducted.

Merit Partners DARWIN 14 October 2019

Documents

TOURISM CENTRAL AUSTRALIA ANNUAL REPORT€¦ · Printing & Stationary - $12,452 vs LY $17,464. Printing costs were re-negotiated in 2018-19 reducing overall expense, as well as a