Tourism Development Fund: report for 2013.

STATES OF JERSEY

TOURISM DEVELOPMENT FUND: REPORT FOR 2013

Presented to the States on 3rd September 2014 by the Minister for Economic Development

STATES GREFFE

2014   Price code: C  R.126

REPORT

Message from the Chairman

On behalf of the Tourism Development Fund and our Advisory Panel, I am very pleased to present our Report and Accounts for 2013.

This was the first year we opened the Fund to applications from private organisations following the approval by the States in July 2012 to broaden our remit to enable us to make grants to the private, as well as the non-profit, sector. We invited applications in the Spring and Autumn of 2013 and we were delighted to receive a wide range of applications from a number of diverse public, charitable and private organisations. In all we received a total of 38 applications, requesting grants totalling £1,604,945. Of the 38 applications received, 13 were from the private sector and 25 were from the non-profit sector.

Our Advisory Panel held 12 meetings in the course of 2013 to review and consider the applications received. In addition, Advisory Panel members met with many of the applicants in advance of our meetings to gain further information, and a number of applicants  were  invited  to  make  presentations  and  to  discuss  their  applications. Minutes of all of our Advisory Panel meetings are recorded by the States Greffe and published on our website www.jersey.com/tdf.

In 2013 the Advisory Panel approved grants to 17 applicants, totalling £658,761. Of the applications approved, 11 were from the non-profit sector and totalled £613,574, and 6 were from the private sector and totalled £45,187.

In addition to the projects themselves, the Advisory Panel assess applications under a range  of  criteria,  including  the  estimated  number  of  visitors,  as  well  as  the sustainability, timing and organisational governance of the event or project. One of our main criteria is the amount of funding that will be raised or generated from sources other than the TDF grant. Well over £2,000,000 in additional funds will be committed by the successful grant applicants in addition to the total of £658,761 in grants that we have approved in 2013.

Our Advisory Panel members serve on a voluntary basis and there is a considerable amount of time and effort involved in fulfilling our role. I would like to thank all of the members of our Panel for their dedication and contribution to our activities during the year. In particular, I would like to thank Lawrence Huggler, who has been a member since the inception of the Panel and who has provided excellent service as our Vice-Chairman. I would also like to thank Steve Bailey, Dominic Jones, Kristina Le Feuvre and Melinda Isherwood, who retired in the course of 2013 and early 2014. Your collective skills and efforts contributed over the years have been invaluable and you will be missed. I would also like to thank David de Carteret, Melanie Drummond and their colleagues in the Economic Development Department and the States Greffe for their valuable support.

We are looking forward to 2014 and the opportunity to provide continuing support to our vibrant Tourism Industry.

On behalf of the Tourism Development Fund: Peter C. Funk, Chairman

1. Introduction

In line with the terms of the Tourism Development Fund (TDF) Approved Scheme, the 2013 Annual Report is hereby submitted to the States of Jersey.

As of 31st December 2013, since the TDF began its operations in 2002, there were 116 projects  that  had  received,  or  were  due to receive  assistance from  the  Fund. Seventeen projects were approved for funding during the year, and 3 further projects from  the  Autumn  2013  round  remained  under consideration for final  decision  in early 2014.

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  was  allocated £500,000 per year from 2013–2015. The Panel welcome the security of funding that this provides in the short to medium term, which has been lacking in the past.

In July 2012, the States agreed to open the Fund to the private sector. This has encouraged  a  broader  range  of  applications,  now  being  received  from  voluntary, public and private organisations, increasing the capacity for the Fund to impact visitor numbers and the Tourism Industry as a whole.

All grants recommended by the Panel over £100,000 are referred to the Minister for Economic  Development  for  approval,  and  grants  over  £500,000  also  require  the approval of the Minister for Treasury and Resources.

In cases where the Panel does not recommend funding, there is an opportunity for the applicant  to  appeal  the  decision.  These  are  made  in  writing  to  the  Minister  for Economic  Development,  detailing  any  additional  information  to  support  the application. The Minister would normally ask the Panel to review their decision and then have the Chairman fully brief him on their decision before making his own final decision. In 2013, 2 appeals from the Fruits de Mer Oyster Festival and the Folklore Festival were considered fully by the Minister, who ultimately upheld the original decision of the Panel not to grant the funding.

The Panel for the Spring Round 2013 comprised: Peter Funk (Chairman), Lawrence Huggler (Vice-Chairman), Kristina Le Feuvre, Melinda Isherwood, Carol Canavan, Andrew Shrimpton, Dominic Jones, Aurelie Leroy, William Church and Steve Bailey.

The  resignations  of  Kristina  Le Feuvre  and  Steve  Bailey  were  accepted  by  the Chairman ahead of the Autumn round of applications. Following the Autumn round, further resignations were accepted from Lawrence Huggler (Vice-Chairman), Dominic Jones and Melinda Isherwood.

The Panel advertised for new members in the Spring of 2014 with advertisements placed in the Jersey Evening Post, on the States website and in other media, with a wide selection of applications being received. With the assistance of the Appointments Commission and the Economic Development Department, interviews were held and 5 new Panel members were appointed. The new members participated in the Spring 2014 round of applications with the full Panel consisting of the following members:

Peter Funk (Chairman), Andrew Shrimpton, Carol Canavan, William Church, Aurelie Leroy, Nick Steel, Daphne East, Donna Gramolt, Natalie Duffy, and Stephen Law.

The  Economic  Development  Department  is  represented  at  officer  level  by  Chief Executive, Mike King, and Director of Tourism and Marketing, David de Carteret; and the  Panel  was  supported  at  executive  level  by  Melanie  Drummond,  Economic Development Department.

3. Activities in 2013

The Panel met 12 times during the year. Copies of the approved minutes of each of the Panel meetings are available on www.jersey.com/tdf.

There were 2 rounds of applications in 2013; one in 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 Jersey.com website, a press release was issued, and it was highlighted in the Jersey Tourism e-newsletter.

In the Spring round of funding, 18 applications were received and, of these, 7 were approved. However, subsequent to this, one application that had received approval was for an event that was subsequently postponed; and another for a project that was deferred subject to planning permission. The latter applicant has been advised to re-apply, when appropriate, updating the details of the application, for the Panel to confirm their support.

At an extraordinary meeting of the Panel in October 2013, applications from the Branchage Film Festival and National Trust for Jersey were considered and approved.

The Autumn round of applications commenced in November, and 18 applications were  received.  In  total,  7 applications  were  approved,  with  3 applications  being subject to continued consideration by the TDF Advisory Panel.

As previously, the Panel reviewed each application, taking regard of the potential impact on tourism, the additional investment from other sources that the project would leverage,  the  sustainability  of  the  project  and  the  project  governance.  For  some projects  where  further  information  was  required,  individual  Panel  members  or Economic  Development  Officers  were  tasked  with  contacting  the  applicant,  and gathering details to report back to the Panel. This process remains an effective way to

provide  additional  scrutiny  to  applications,  whilst  minimising  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.

Three applications: Jersey Race Club, Blue Badge Guides, and La Hougue (1975) Farms Ltd., were still under consideration by the Panel at the end of 2013 and were subsequently  approved  in  early  2014.  The  application  from  La Hougue  (1975) Farms Ltd. of £300,000 in the Autumn round required Departmental and Ministerial due diligence, before a final decision was taken by the Minister to approve the funding in 2014. This grant will only be made following an investment of over £800,000 by the company itself.

The following projects were approved by the TDF Panel for funding during 2013:

Whilst the TDF committed £658,761 towards these projects, the total investment in tourism through these initiatives, including the funds contributed by organisations themselves and additional project sponsors, amounted to well over £2,000,000.

4. The future

The TDF Panel has been encouraged by the continued interest in the Fund and by the overall number of applications received. 2013 has seen 13 applications from private organisations, a trend which, at the time of writing, is certainly continuing in 2014.

As the number of applications continues to increase, the TDF is pleased to confirm that support is now available to organisations before and after the application process from Jersey Business Limited. It is hoped that this free, optional service will support individual organisations and encourage improvements in the sector overall.

Tourism Development Fund

The Tourism Development Fund was established by the States in December 2001. The aim of the Fund is to stimulate investment in the tourism industry and infrastructure, in order to improve Jersey's competitiveness and sustain the industry as a second pillar of the economy.

Summary snapshot

Changes in Net Asset Value from 2012

The Net Asset Value of the Fund increased from £741,152 to £945,500, an increase of £204,348 (27.5%). The increase is mainly due to the receipt of a grant of £500,000 from the Economic Development Department, together with the payment of grants (£297,073) in accordance with the purpose of the Fund.

Net Asset Value over time

Performance compared to 2012 (Total NRE)

Key Variances from 2012

The Fund received a grant of £500,000 from the Economic Development Department to allow the TDF Panel to continue further rounds of grant allocations during 2013 and beyond. There were no grants received in 2012.

There was an increase of £99,759 (50.6%) in grants paid compared to 2012. Grants from the Fund are considered and recommended to the Minister 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.

Grants paid in 2013 amounted to £297,073.

Statement of Comprehensive Net Expenditure

Statement of Financial Position

The Projects

As of 31st December 2013, 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 on the website: www.statesassembly.gov.je/pages/reports.aspx .

Amount  

Project  approved  

Project  managers  Year  £  Comment

A 3 year project specifically to

support the continuing work of

the Quaternary Archaeology and Ice Age  Jersey

1  2013  199,000  Environments of Jersey Project,

Archaeology  Heritage

which seeks to identify Ice Age sites in Jersey with potential in tourism development.

To facilitate the week-long Jersey 2  Textile workshop  Art in the  2013  8,000  Textile Showcase event to be held Frame  at the Harbour Gallery in March

2014.

To facilitate a marketing campaign focused on Guernsey,

3  Liberation Music  Music in  2013  5,000  in order to bring in visitors to the Festival  Action  Island specifically for the

Liberation International Music Festival.

The purpose of the grant is to bring the Tour Series Finale to Jersey in June 2014.

Jersey

4  Pearl Izumi Tour  2013  70,000  The Tour Series Finale is a

Tourism/

Series Finale  televised event which will raise

Sweetspot

awareness of Jersey as a cycling destination for both tourists and elite cyclists alike.

The purpose of the grant is the Battle of

5  Battle of Flowers  2013  10,604  purchase of a set of speakers

Flowers

PA system  suited to the outdoor broadcast of

Association

music and voice for events.

6  Spice Treasures &  TreSaspuicrees &  2013  700  TTroa sduep epvoernt tt hhee lSdp iinc eS Tepreteamsubreers &

Trade Fair

Trade  2013.

The objective and purpose of the

grant is to facilitate a 2 year Marketing to  Jersey

7  2013  5,592  marketing project aimed at

French Language  Language

increasing the number of students Students  Adventure

visiting JLA for English Language and adventure courses.

Amount  

Project  approved  

Project  managers  Year  £  Comment

The project is to provide an

interactive living Ice Age history Ice Age  Jersey  exhibition to complement the

8  2013  43,000

Interpretation  Heritage  archaeological excavations, and

produce a walking guide and dedicated website.

The objective and purpose of the 9  Wetlands Centre,  National Trust  2013  37,870  grant is to complete the

St. Ouen  for Jersey  development of a Wetland Visitor

Centre at St. Ouen 's Pond.

The purpose of the grant is to develop and deliver the new

10  Bran&c hBaigeen nAianln ual  FBilmra nFcehsatigvea l  2013  100,000  B20ra1n4c, haangde t oA dnenvuealol pF ethseti val in Festivals  Limited  Branchage Biennial Festival into an

Island-wide multi-media festival to be held in autumn 2015.

The objective and purpose of the 11  Restoration of  MWareisnte P Laarkk e  2013  115,000  grant is to restore and develop the

St. Helier sea-pool   St. Helier western sea-pool into a

Trust

public water sports facility.

Interior  To enhance the interior at Haut de 12  refurbishment at  Paradox  2013  20,000  la Garenne, by installing ground

Jersey Outdoor  Limited  floor toilet, shower and sauna Activity Centre  facilities.

13  Marketing to  BJoouurtinqeuye  2013  7,350  Tmhaerk peut rJpeorssee yo fa sth ae dgersatnint aisti oton to

Russian tourists

Limited  Russian-speaking tourists.

14  Replacement of  Jersey  2013  5,100  Tnoon r-elipfleagcuea trhdee db ebaecahc hsiegsn isn on

Beach Signs  Tourism

Jersey.

The purpose of the grant is to bring Venture Cup  the Venture Cup to Jersey in June

15  Powerboat Race  2013  20,000  2014. The Venture Cup is a

Jersey

Tourism

stopover  powerboat race from the River

Thames to Monte Carlo. Implementation of a 3 year

16  RuMssiaarnk eLtianngg utoa ge   St. Brelade 's  2013  4,545  marketing plan to recruit English College  Language students from Eastern

Students

Europe (specifically Russia). Family History Tourism is a

growing niche market. This will

17  FamOilyn lHinies tory  Jersey  2012  6,875  allow the development of a

Heritage  website to encourage more people Development

to visit Jersey to find out about their past.

Amount  

Project  approved  

Project  managers  Year  £  Comment

The cycle network is a key draw Refurbishment of  for many visitors to Jersey, and

18  Cycle Network  2012  11,079  work is required to ensure the

Jersey

Tourism

signs  network is effectively promoted and signposted across the Island.

The grant has been awarded to

19  mInatrekrentaitnigo nfaolr  Tarka Sea  2012  3,412  joint fund marketing into a new

Trips Ltd.  market to test viability of such an Tarka Sea Trips

approach over the longer term.

Further support has been granted

for specific works, particularly at Channel

Corbière, to ensure that these Improvement of  Islands

20  2012  5,000  important sites of interest are

Occupation sites  Occupation

maintained and improved to Society

showcase Jersey's historical tourism offering.

Funding to enable the

establishment of an international

Chess tournament, which is

anticipated to draw competitors to International  Jersey Chess

21  2012  5,000  Jersey for a week-long

Chess Tournament  Club

competition in the shoulder months. Organisers are intending to make this a regular event in the Jersey calendar.

2,700 people attended this event Spice  in September 2012. The

22  Treasures &  2012  1,000  organisers are intending to make

Spice Treasures &

Trade Fair

Trade  this into a regular event in the

tourism calendar.

23  Tour des Ports   St. Helier  2012  1,500  T10h0e yTaocuhrt sd easn dP o7r0ts0 actrterawc taendd o rvaecre

Yacht Club

officials.

The TDF made a contribution towards building a stand at the Rugby Club to enhance visiting

supporters' experience, and so to Stand for Jersey  encourage repeat visits and

24  Rugby Football  2012  56,000  recommendations to other teams.

Jersey Rugby

Football Club

Club  In the first 6 matches of the

season, 2,900 visiting supporters attended games, staying between 2–5 nights in the traditionally quiet season.

Amount  

Project  approved  

Project  managers  Year  £  Comment

The camping facility opened for business at the end of July 2012;

and in August it achieved an 87% Durrell  occupancy rate. It is anticipated

Developing luxury  Wildlife  that it will be achieving

25  Camping at  Conservation  2011/2  121,500  significant revenues for Durrell in Durrell  Trust  years to come, which 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 portfolio by constructing a wildlife viewing

Development of  centre at St. Ouen 's Pond. Due to 26  Wetland Centre  National Trust  2011  50,000  poor weather conditions, and the

inability to conduct work in seasons due to habitat protection, the work has been delayed until Summer 2013.

Development of  

business plan to  Plans to develop the event to 27  extend scope of  Branchage  2011  10,000  maximise its potential to benefit

the Festival  Jersey.

This project aims to increase Development of  diving tourism by exposing the Marine  Jersey  great diving offering of Jersey,

28  exploration guide  Seasearch  2011  28,000  linking in to the UK Seasearch

and resources  Network to maximise the exposure to the large UK diving

market.

Liberation Music  Music in  International marketing support is 29  Festival 2012  Action  2011  7,250  being provided to support this

successful festival.

TDF funds allowed the marketing 30  Toular dMeas nPcohretss de  YSatc. hHt eClileurb  2011  1,500  and promotional activity for the

2011 event.

Branchage –  

development of  The successful 2011 festival saw 31  marketing,  Branchage  2011  25,000  an increase in overseas visitors

promotion and PR  and visitor spend.

Amount  

Project  approved  

Project  managers  Year  £  Comment

Funding awarded to support this 32  P1 Powerboat  Jersey  2011  20,000  unique event, which included

Racing  Tourism  exposure on satellite television networks.

Following the success of previous Refurbishment of  projects, these funds will be used

33  Kempt and  HJeerristeayg e  2011  143,000  to turn Kempt and La Rocco

La Rocco Towers  Towers into self-catering

accommodation.