Tourism Development Fund: report for 2012.

STATES OF JERSEY

TOURISM DEVELOPMENT FUND: REPORT FOR 2012

Presented to the States on 22nd March 2013 by the Minister for Economic Development

STATES GREFFE

2013   Price code: B  R.25

Message from the Chairman

I am pleased to present our report on the activities of the Tourism Development Fund in 2012.

This has been a significant year in the evolution of the Tourism Development Fund. A proposition to open the Fund to the private sector was approved by the States in July. The approval followed a detailed review of the proposals by the Corporate Services Scrutiny Panel and the community at large. The TDF Panel welcomed the interest and time the Scrutiny Panel expended on their research and report which undoubtedly contributed to the support the proposition received in the States.

By opening the Fund to private sector applicants, we are encouraging the tourism community to put forward as wide a variety of proposals as possible for the Panel's consideration. Whilst we continue to encourage applications from the not-for-profit sector, we are of the firm belief that we must seek out the best ideas to develop tourism and not be constrained by what type of organisation happens to be the one to promote it.

I am delighted that for the first time since its inception, the TDF has secured and quantified  additional funding  for  the  next  3 years. This ensures  an investment  of £500,000 a year into the Fund, which we hope will be utilised in full by organisations wishing to develop new and innovative ways to bring visitors to our Island. I would like to thank the Minister for Economic Development, the Council Of Ministers and the States Assembly for recognising the importance of the TDF by approving this level of funding in an environment where there is significant competition for resources.

Our challenging economic conditions continue, yet the Tourism Industry continues to be resilient and is maintaining its central role in the Jersey economy. All of the organisations that apply to the Fund are contributing to this success, and I hope many more will come forward in the next year to enable the Panel to support projects that capitalise on our unique environment and heritage.

I would like to thank all of the members of our Panel for their excellent contribution to our activities  during  the year.  Our  reviews  of  grant  applications  and  the tourism industry at large have been lively and thorough. I would also like to thank the Director of Tourism and Marketing, our executive level officer at Economic Development, and their colleagues in the Economic Development Department and the States Greffe for their valuable support.

On behalf of the Tourism Development Fund Panel.

Peter C. Funk Chairman

REPORT

1. Introduction

In line with the terms of the Tourism Development Fund (TDF) Approved Scheme, the 2012 Annual Report is hereby submitted to the States of Jersey.

As of 31st December 2012, since the TDF began its operations in 2002, there were 107 projects that had received, or were due to receive assistance from the Fund. Nine projects were approved for funding during the year and 3 further projects from the autumn 2012 round remain under consideration for final decision in early 2013.

2. Background to the Fund

The Tourism Development Fund was established in 2002 and replaced the Tourism Investment Fund. The aim of the Fund is to stimulate investment in the tourism product and tourism infrastructure in order to improve Jersey's competiveness and to sustain a flourishing tourism industry as a valuable contributor to the economy and the social fabric of the Island. Applications are assessed as to the likely impact on visitor numbers and the visitor experience, how sustainable the impact may be, and the associated investment that TDF funding would leverage.

When the Fund was established, an agreement was made in principle that the sum of £10 million would be set aside over the following 5 years. In 2003, £1.2 million was transferred to the Fund, and in 2006, an additional £1 million was transferred. The Panel Members were pleased that an additional £650,000 was granted to the Fund in 2011, although recognise that the total amount awarded to date is significantly less than the original £10 million agreed.

Through the Medium Term Financial Planning process, the TDF has been allocated £500,000 per year for the next 3 years. The Panel welcome the security of funding that this provides in the short to medium term, which has been lacking in the past.

The Panel are also pleased that, following a Scrutiny Report into the issue, published in July 2012, the States agreed to the proposition to open the Fund to the private sector. It is hoped that this will encourage a broader range of applications, which can now be received from voluntary, public and private organisations, and therefore there will be increased capacity for the Fund to have a greater impact on visitor numbers and associated impact on the Tourism Industry as a whole.

The Panel welcomed 2 new Panel members during 2012: William Church and Aurelie Leroy. The Panel also comprises: Peter Funk (Chairman), Lawrence Huggler (Vice- Chairman),  Kristina  Le Feuvre,  Melinda  Isherwood,  Carol  Canavan,  Andrew Shrimpton, Dominic Jones and Steve Bailey. The Department is represented at officer level by its Chief Executive and the Director of Tourism and Marketing; and the Panel was  supported  at  executive  level  by  an  officer  of  the  Economic  Development Department.

3. Activities in 2012

The Panel met 9 times during the year. Copies of the approved minutes of each of the Panel meetings are available on www.jersey.com/tdf.

At the beginning of the year, the application by Durrell Wildlife Conservation Trust was formally approved, following fulfilment of the provision of information which the approval was conditional upon.

There were 2 rounds of applications in 2012; one in the spring, and one in autumn. To alert potential applicants of the opportunity of funding, adverts were placed in the Jersey Evening Post, it was promoted on the website www.jersey.com, a press release was issued and it was highlighted in the Jersey Tourism e-newsletter.

In the spring round of applications, 17 applications were received and 5 applications were  approved.  However,  subsequent  to  this,  one  application  that  had  received approval was for an event that was subsequently cancelled; and another, for an event that was postponed for one year. The latter applicant has been advised to re-apply when appropriate, updating the details of the application, for the Panel to confirm their support.

The autumn round of applications commenced in October. This was the first round of applications where the private sector was eligible to apply. In total, 27 applications were  received.  In  total,  5 applications  were  approved,  with  3 applications  being subject to additional information requests at the end of the year.

In both rounds, the Panel reviewed each application, taking regard of the potential impact on tourism, the additional investment from other sources that the project would generate, the sustainability of the potential impact and the project governance. For those projects where further information was required, individual Panel members were tasked with contacting the applicant, and gathering details to report back to the Panel. This  process  proved  to  be  an  effective  way  to  provide  additional  scrutiny  to applications without causing unnecessary time delays in the application process. For particular projects where it was deemed necessary, the applicants were invited in to discuss their projects with the Panel as a whole.

The following projects were approved for funding during 2012 –

Whilst the TDF committed £211,366 towards these projects, the total investment in tourism through these initiatives, including the funds contributed by organisations themselves and additional project sponsors, amounted to over £790,000.

It should be noted that 3 applications made in the autumn 2012 round are still under consideration, and final decisions regarding these will be completed in early 2013.

4. The future

Having achieved significant progress in 2012 in terms of evolving the nature of the Fund,  it  is  now  time  to  see  these  changes  embed,  and  fully  optimise  on  the opportunities they offer. The impact of opening up the Fund to the private sector will not be felt for some time, but it is hoped that many more applicants will seek to utilise this Fund for their benefit and the benefit of the Island as a whole.

APPENDIX

Unaudited Accounts

Highlights:

Closing Net Asset Position of £741,152, a decrease of 20.9% on 2011 Net Revenue Expenditure of £195,811, an increase of 140.7% on 2011

Key Results

Changes in NAV  The  Net  Asset  Value  of  the  Fund  decreased  from  £936,963  to

£741,152, a decrease of £195,811 (20.8%). The decrease is mainly due  the  payment  of  grants  (£197,314)  in  accordance  with  the purpose of the Fund.

Performance compared to 2011  The Fund received a grant of £650,000 in 2011 from the Economic

Development  Department  to  allow  the  TDF  Panel  to  continue further rounds of grant allocations during 2012 and beyond. There were no grants received in 2012.

There was a decrease of £26,862 in grants paid compared to 2011. Grants from the Fund are considered and approved by a committee comprising business leaders and senior officers from the Economic Development Department. The amount paid in grants each year is dependent upon the number and financial amounts of applications received and approved by the committee.

The Projects

As of 31st December 2012, in the last 3 years the following projects had received or were due to receive funding from the TDF. For projects where funding was allocated more  than  3 years  ago,  please  see  previous  annual  reports  available  at www.statesassembly.gov.je.

Project  Amount  

Project  managers  Year  approved  Comment

Family History Tourism is a growing niche market.

Family History  This will allow the

1  Online  Jersey  2012  £6,875  development of a website to Development  Heritage  encourage more people to

visit Jersey to find out about their past.

The cycle network is a key draw for many visitors to

Refurbishment of  Jersey and work is required 2  Cycle Network  Jersey  to ensure the network is

signs  Tourism  2012  £11,079  effectively promoted and signposted across the

Island.

The grant has been awarded

to joint fund marketing into International  Tarka Sea  a new market to test

3  marketing for  Trips Ltd.  2012  £3,412  viability of such an Tarka Sea Trips  approach over the longer

term.

Further support has been granted for specific works,

Channel  particularly at Corbière, to Improvement of  Islands  ensure these important sites

4  occupations sites  Occupation  2012  £5,000  of interest are maintained Society  and improved to showcase

Jersey's historical tourism offering.

Funding to enable the establishment of an international Chess tournament which is

International  anticipated to draw

5  Chess  Jersey Chess  competitors to Jersey for a Tournament  Club  2012  £5,000  week long competition in

the shoulder months.

Organisers are intending to make this a regular event in

the Jersey calendar.

Project  Amount  

Project  managers  Year  approved  Comment

2,700 people attended this

event in September 2012. Spice  The organisers are

6  Spice Treasures  Treasures  2012  £1,000  intending to make this into and Trade Fair  and Trade  a regular event in the

tourism calendar. The Tour Des Ports

7  Tour De Ports  YSatc. hHt eClileurb  2012  £1,500  atatnradc 7te0d0 o cvreerw 1 a0n0d y raacchet s

officials.

The TDF made a contribution towards the building a stand at the Rugby club so that to

enhance visiting supporters' Jersey  experience to encourage

Stand for Jersey  Rugby  repeat visits and

8  Rugby Football  Football  2012  £56,000  recommendations to other Club  Club  teams. In the first 6 matches

of the season, 2,900 visiting supporters attended games, staying between 2–5 nights

in the traditionally quiet season.

The Camping facility opened for business at the

end of July 2012 and in August it achieved an 87%

occupancy rate. It is anticipated that it will be

Durrell

Developing  achieving significant

Wildlife

9  luxury Camping  2011/2  £121,500  revenues for Durrell in

Conservation

at Durrell  years to come, which

Trust

improves the sustainability of this key attraction, and brings visitors to experience the wider tourism offering across the Island.

This project adds a new attraction to Jersey's

Development of  National  portfolio by constructing a 10  Wetland Centre  Trust  2011  £50,000  wildlife viewing centre at

St. Ouen 's Pond. Due to poor weather conditions,

and the inability to conduct

Project  Amount  

Project  managers  Year  approved  Comment

work in seasons due to habitat protection, the work has been delayed until summer 2013.

Development of  

Plans to develop the event business plan to

11  Branchage  2011  £10,000  to maximise its potential to

extend scope of

benefit Jersey.

the Festival

This project aims to increase diving tourism by

Development of  exposing the great diving Marine  Jersey  offering of Jersey, linking

12  2011  £28,000

exploration guide  Seasearch  in to the UK Seasearch and resources  Network to maximise the exposure to the large UK

diving market.

International marketing Liberation Music  Music in  support is being provided to

13  2011  £7,250

Festival 2012  Action  support this successful

festival.

TDF funds allowed the Tour des Ports de   St. Helier

14  2011  £1,500  marketing and promotional

la Manche  Yacht Club

activity for the 2011 event. Branchage –

The successful 2011 development of

festival saw an increase in 15  marketing,  Branchage  2011  £25,000

overseas visitors and visitor promotion and

spend.

PR

Funding awarded to support this unique event which

P1 Powerboat  Jersey

16  2011  £20,000  included exposure on

Racing  Tourism

satellite television networks.

Following the success of previous projects, these

Refurbishment of

Jersey  funds will be used to turn 17  Kempt and  2011  £143,000

Heritage  Kempt and La Rocco La Rocco Towers

Towers into self-catering accommodation.

By marketing the 2011 Liberation  Music in  event early enough, the

18  2010  £12,500

Festival 2011  Action  organisers hope to attract more visitors to the event.

Project  Amount  

Project  managers  Year  approved  Comment Branchage is now

becoming an anchor event in the calendar, and the marketing for the event

19  Branchage 2011  Branchage  2010  £10,000

needs to begin early to ensure that it attracts increasing numbers of visitors.

These funds will be used to

market the event at similar Jersey

Jersey Fish  events in the UK. The event 20  Fishermans  2010  £6,000

Festival 2011  organisers also attracted

Association

marketing assistance from other local partners.

Société Jersiaise maintains many of the Island's

Improvements to  Société  Dolmens and these funds

21  2010  £4,500

Dolmens  Jersiaise  will allow some much- needed maintenance and

improvements.

The Tour des Ports has a

long history, and in 2010 Tour des Ports de  Jersey Yacht

22  2010  £1,500  Jersey had the honour of

la Manche  Club

hosting the departure of the race.

The funds provided helped Liberation  Music in  market the event off-Island

23  2010  £4,000

Festival  Action  and helped develop this

event.

Jersey Tourism used the Joint marketing

Jersey  funds on a £ for £ basis 24  for air and sea  2010  £85,000

Tourism  with carriers to encourage routes

more visitors to the Island.

Jersey Tourism in association with other local

Development of a  Jersey  organisations began the 25  Jersey Food  Tourism and  2010  £8,000  development of a new food Festival  partners  festival that will celebrate

local produce and dining excellence.

Project  Amount  

Project  managers  Year  approved  Comment

Fast becoming a major Jersey Boat Show  Jersey  spring event, the funds

26  2010  £8,000

2010  Harbours  were used on off-Island marketing.

Another event with the

Jersey  potential to become a major Jersey Fish

27  Fisherman's  2010  £6,500  spring event, the funds

Festival

Association  were used on off-Island

marketing.

Funds (on a £ for £ basis) will be used to create a

Animation of

Jersey  lasting first impression for 28  arrivals hall in  2010  £11,000

Airport  visitors coming through this Jersey Airport

important gateway to the Island.

Classic and  Funds were used to help Vintage  market the event at special

29  Motoring Festival  2010  £20,000

Motor  shows and in motoring Racing Club  publications in the UK.

By installing mains

Installation of  Channel  electricity into some of the mains electricity  Islands  bunkers, the CIOS are now

30  2010  £8,000

to occupation  Occupation  able to extend the opening sites  Society  hours of many of their facilities.

By marketing the 2011 Jersey Textile  Art in the  event early enough, the

31  2010  £4,000

Showcase 2011  Frame  organisers hope to attract more visitors to the event.

Filming of the  The Town Criterion Town Criterion  Jersey Cycle  [cycle race] is growing in

32  2010  £8,000

2010 for  Association  stature and attracting media Television  interest.

Building on the success of recent years, the organisers

Branchage Film  are now developing a very

33  Branchage  2010  £25,000

Festival 2010  sophisticated marketing and sponsorship package for the

event.