Tourism Development Fund: Report for 2014.

STATES OF JERSEY

TOURISM DEVELOPMENT FUND: REPORT FOR 2014

Presented to the States on 17th July 2015 by the Minister for Economic Development

STATES GREFFE

2015   Price code: C  R.83

REPORT

Message from the Chairman

On behalf of the Tourism Development Fund (the "TDF") and our Advisory Panel I am very pleased to present our Report and Accounts for 2014.

We invited grant applications in the spring and autumn and were delighted to receive a record  number  of  applications.  This  was  the  second  year  we  have  been  able  to consider grant applications from the private sector following the approval by the States in July 2012 to broaden our remit to include private as well as public and charitable organisations. As a result, our Advisory Panel had a very busy year, with 14 meetings  held  to  review  and  consider  applications  for  71 projects  from 59 organisations  requesting  grants  totalling  £4,300,000.  Of  the  59 organisations, 28 were from private entities and 31 were from the non-profit sector. After detailed considerations, the Advisory Panel approved 20 projects totalling £829,256 in grants. Seven grants from private entities were approved, totalling £538,500 and 13 grants from the non-profit sector were approved, totalling £290,756. Please see our report that follows for further details.

In addition to our Advisory Panel meetings, Panel members met separately with many of the applicants. A number of applicants were invited to make presentations at our Advisory Panel meetings to discuss their projects in more detail. Minutes of all of our meetings, including our deliberations and decisions, are recorded by the States Greffe and published on our website www.jersey.com/tdf.

The Advisory Panel assesses projects under a range of criteria, including the estimated number  of  visitors,  sustainability,  timing,  and  organisational  experience  and governance. One of our main considerations is the amount of funding that will be raised or generated from sources other than the TDF. The 20 projects approved by the Advisory Panel in 2014 will result in an investment of more than £2,400,000 into the Tourism sector in addition to the grants of £829,256 approved by the Advisory Panel.

Prior  to  our  spring  application  round,  we  advertised  widely  for  additional  TDF Advisory  Panel  members.  With  the  assistance  of  the  Jersey  Appointments Commission, we interviewed and selected 5 new Advisory Panel members from a very competitive field of candidates. Natalie Duffy, Daphne East, Donna Gramolt, Stephen Law, and Nick Steel were recruited and welcomed onto the Advisory Panel.

The Advisory Panel members serve on a voluntary basis, and I would like to thank the entire  Advisory  Panel, including  our existing  members  Andrew  Shrimpton, Carol Canavan, William Church, and Aurelie Leroy, who continued to make an invaluable contribution throughout the year. I would also like to thank David de Carteret and his colleagues at Jersey Tourism for their strong support and guidance during the year. We are looking forward to working with the new Visit Jersey organisation as they take over the responsibility for Tourism from Jersey Tourism in the course of the coming year. We would especially like to thank Senior Business Adviser Cedric Bird, the Minister for Economic Development, and colleagues in the Economic Development Department for their valuable support in providing guidance to applicants as well as our administration. Our thanks also go to the States Greffe for compiling our minutes, which are a very important element of our communications and proceedings.

We are looking forward to 2015 although there are uncertainties ahead of us. At the end of 2014 the TDF had approved grants totalling approximately £7,300,000, and a further £588,000 has been allocated for grants in 2015. The Advisory Panel and I continue to take the view that the TDF, operating as an independent, well-funded and supported organisation, is in an excellent position to provide continuing support to our vibrant Tourism industry and the Island's economy.

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

1. Introduction

In line with the terms of the TDF Approved Scheme, the 2014 Annual Report is hereby submitted to the States of Jersey.

As of 31st December 2014, since the TDF began its operations in 2001, there were 136 projects  that  had  received,  or  were  due to receive  assistance from  the  Fund. Twenty projects were approved for funding during the year.

2. Background to the Fund

The Tourism Development Fund was established in 2001 and replaced the Tourism Investment Fund. The aim of the Fund is to stimulate investment in the tourism product and 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,  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 welcomes the security of funding that this provides in the short to medium term.

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  a  final decision.

3. Panel Members

Ahead of the Spring round of applications, the Chairman confirmed and accepted the resignations of Kristina Le Feuvre, Steve Bailey, Lawrence Huggler (Vice-Chairman), Dominic Jones, and Melinda Isherwood.

In May, the TDF advertised for new Panel members in the Jersey Evening Post, the States website, and other media, with a wide selection of applications 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 and Autumn rounds with the full Panel consisting of –

Peter Funk (Chairman)

Andrew Shrimpton (Vice-Chairman) Carol Canavan

William Church

Natalie Duffy*

Daphne East*

Donna Gramolt*

Stephen Law*

Aurelie Leroy

Nick Steel*.

(*new member)

At the meeting of 11th December 2014, the Panel re-appointed Andrew Shrimpton as Vice-Chairman, and as Donna Gramolt was now residing in Australia, requested that she should tender her resignation.

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 Cedric Bird.

4. Activities in 2014

The Panel met 14 times during the year. Copies of the approved minutes of each of the Panel meetings are available on www.jersey.com/tdf. The first 3 meetings of the year concluded the review of 3 outstanding projects and 2 appeals from applications made in 2013.

There were 2 rounds to consider new applications: one in the Spring and one in the Autumn. To alert potential applicants of the opportunity of funding, adverts were placed in the Jersey Evening Post, promotion featured on the Jersey.com website, a press release was issued, and it was highlighted in the Jersey Tourism e-newsletter.

In the Spring round 26 applications were reviewed, with the Panel meeting weekly between 5th June and 3rd July. Of these, 6 projects were approved for funding. The Autumn  round  saw  45 applications,  with  the  Panel  meeting  weekly  between 6th November and 11th December. A further 10 projects were approved for funding.

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 to be 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.

The consideration of the 2013 application from La Hougue Farms (1975) Ltd. for a grant of £300,000 towards the construction of a new indoor play barn was concluded by  the  Panel.  Following  a  rigorous  review  process;  including  meetings  with  the applicant, and confirmation that a number of pre-conditions were in place, the Panel were satisfied that the project should be supported. This was confirmed at the meeting of 3rd April 2014.

The grant was also subject to Departmental and Ministerial due diligence, before a Ministerial Decision dated 6th June 2014 was finally taken to approve the funding. The grant is being made following an investment of over £800,000 by the company itself.

5. Appeals in 2014

In  2014,  3 appeals  were  received  and  considered  by  the  Minister  for  Economic Development,  including  appeals  from  Luxury  Jersey  Hotels  and  Effective Communications, both of which were reviewed by the TDF Panel; and an appeal from the Channel Islands Occupation Society, which was reviewed on 4th December.

This  resulted  in  the  Minister  approving  half  the  original  funding  requested  from Luxury Jersey Hotels, and the upholding of the original decisions of the Panel not to grant the funding for the other 2 applications.

6. Approvals in 2014

The following projects were approved by the TDF Panel and the Minister during 2014:

Whilst the TDF's commitment in these projects is £829,256, the total investment in tourism, including the funds contributed by organisations themselves and additional project sponsors, amounts to £2.4 million.

*Jersey  Squash  Classic –  due  to  a  change  in  project  scope  the  funding  approval  was subsequently withdrawn in early 2015.

7. Tourism Development Fund – Financial Analysis

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 2013

The decrease of £0.1 million was mainly due to the payment of grants (£0.6 million) offset by the receipt of a grant of £0.5 million from the Economic Development Department.

Tourism Development Fund Net Asset Value over time

Performance compared to 2013 (Total NRE)

Key Variances from 2013

£'000 2013 NRE  204

Grant received  (500) Grants paid  100

2014 NRI  (117)

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 2014 and beyond.

There was an increase of £0.3 million (107.1%) in grants paid compared to 2013. 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.

2014 Approved Grants

Grants paid out by the Economic Development Department in 2014 amounted to £615,127:

Statement of Comprehensive Net Expenditure

Statement of Financial Position

APPENDIX The Projects

As  of  31st  December  2014,  in  the  last  4 years  the  following  projects  had received or were due to receive funding from the TDF. For projects where funding  was  allocated  more  than  4 years  ago,  please  see  previous  annual reports available online at www.statesassembly.gov.je.

Applicant  Project  Year  Amount  Comment

approved

1  Jersey Race  Website  2014  £6,000  The  project  is  to  develop  a Club  Development  marketing  strategy  including improvements to their website and

fund a range of marketing activities to  promote  the  programme  of events  throughout  the  Club's

calendar.

2  Jersey Tourist  Blue Badge  2014  £31,000  The  6 month  training  programme Guides  Training  will  result  in  the  accreditation  of Association  Programme  19 new  Blue  Badge  Guiders. Funding  will  support  the  training

and  assessment  costs  with  the

students paying for half.

3  La Hougue  Play Barn  2014  £300,000  Support  from  TDF  towards  the Farms (1975)  £1.1 million  investment  to  build  a

Ltd.  new indoor play barn.

4  Luxury Jersey  Website  2014  £15,000  To enhance and improve its website Hotels  Development  to  market  Jersey's  luxury  sector, increasing the sections available to

present  standalone  restaurants, shopping  locations,  cultural attractions,  galleries.  Improve  and refine the overall look and feel of

the brand Luxury Jersey Hotels.

5  BeachAbility  Marketing for  2014  £10,440  To  market  and  promote  the Beach  availability of disability wheelchairs

Wheelchairs  for use in Jersey.

6  Howard Miller  Jersey Darts  2014  £5,500  To  support  the  promotion  of  the Festival  Jersey  Festival  of  Darts  on  13th –

15th November 2014.  Expectations were exceeded when the tournament was featured on the Sky Euro Sports

channel.

Applicant  Project  Year  Amount  Comment

approved

7  Samarès Manor  To establish  2014  £93,000  The  project  is  the  development  of Ltd.  Samarès Manor  the  gardens  of  Samarès  Manor  to

as a Botanic  achieve  botanical  status.  Funding Garden  will support the replacement of the

existing gift shop, with a purpose- built visitor information centre and

multilingual signage.

8  Jersey Fencing  Autumn  2014  £3,000  Autumn  Training  Camp  held  at Fencing  Les Ormes  for  the  week  from

Training Camp  26th October – 1st November 2014. 9  Jersey 2015  Mobile Seating  2014  £70,000  The  Grant  is  to  help  with  the

Organising  for the Island  purchase  of  5  x  90 seat  capacity Committee  Games  mobile and 10 x Foldaway 30 seat bleachers' for internal and external

use. To be used in the 2015 Island Games, and afterwards as an asset

available from ESC.

10  Jersey Film  Film Festival in  2014  £4,000  The Grant is to assist the purchase of Festival  Howard Davis  a silent generator and broadcasting

Park –  equipment to support the delivery of

equipment  the Jersey Film Festival.

purchase

11  Parish of  Town Centre  2014  £45,000  The project will be to install up to St. Helier  Signage Project  16 new Town Centre visitor signs to

replace the aging Centre Ville signs. 12  Jersey Chess  Polar Capital  2014  £4,500  Funding to support the Jersey Open

Club  Jersey Open  Chess Tournament from 15th – 20th

Chess  March 2015.

Tournament

13  Jersey War  OT Gallery  2014  £30,000  To mark the 70th Anniversary of the Tunnels Ltd.  Liberation,  the  company  plans  to refurbish what is currently known as

the  OT  Gallery.  This  part  of  the exhibition will be dedicated to the enforced slave workers who built the tunnels.  The  entire  room  will contain  high-tech  visual  effects, using projected imagery, including a rubble truck being pushed out of the

tunnel by slave workers.

14  Dance World  Dance World  2014  £60,000  To support with part of the costs of Cup Ltd.  Cup Finals  holding the Dance World Cup Finals

Jersey 2016  in Jersey in June 2016. An estimated 4,000 – 5,000 visitors  are  expected

to attend.

Applicant  Project  Year  Amount  Comment

approved

15  Jersey Squash  Jersey Squash  2014  £13,500  To  support  part  of  the  costs  of and Racketball  Classic  holding  the  Jersey  Squash  Classic,

Association  which is being held in May 2015.

16  Jersey Folklore  Val de la Mare  2014  £35,000  Off-Island  marketing  support  for  a Festival Ltd.  Music and Arts  music and arts festival planned for

Festival 2015  14th June 2015.

17  Jersey  Jersey  2014  £67,816  Funding  to  support  some  of  the International  International  marketing,  promotion  and Motoring  Motoring  development  costs  of  the  2015

Festival Ltd.  Festival  JIMF.  The  event  will  move  and

expand from a 3 to a 4 day event.

18  Jersey's  Branding  2014  £12,500  The  project  forms  part  of  the Coastal  Project  development of a Coastal National

National Park  Park for Jersey, and the funding will support the production of a brand,

website and collateral.

19  Jersey Agility  Jersey  2014  £1,000  Off-Island  marketing  cost  to

Club  European  promote this event.

Agility Festival

2015

20  Jersey Military  Liberation 70  2014  £22,000  Project  to  support  the  cost  of Vehicle Club  Celebrations  attracting  military  vehicles  to  join

the  Jersey  Liberation  festival celebrations. The target is for over 90 vehicles  and  the  funding  is  to support some of the costs of fuel and

transportation.

21  Jersey Heritage  Ice Age  2013  £199,000  A  3 year  project  specifically  to Archaeology  support the continuing work of the

Quaternary  Archaeology  and Environments  of  Jersey  Project which seeks to identify Ice Age sites in Jersey with potential in tourism

development.

22  Art in the  Textile  2013  £8,000  To  facilitate  the  week-long  Jersey Frame  workshop  Textile Showcase event to be held at

the Harbour Gallery in March 2014. 23  Music in  Liberation  2013  £5,000  To facilitate a marketing campaign

Action  Music Festival  focused  on  Guernsey  in  order  to

bring  in  visitors  to  the  Island specifically  for  the  Liberation

International Music Festival.

Applicant  Project  Year  Amount  Comment

approved

24  Jersey  Pearl Izumi  2013  £70,000  The purpose of the grant is to bring Tourism/  Tour Series  the Tour Series Finale to Jersey in

Sweetspot  Finale  June 2014.

The Tour Series Finale is a televised event which will raise awareness of Jersey  as  a  cycling  destination  for both tourists and elite cyclists alike.

25  Battle of  Battle of  2013  £10,604  The  purpose  of  the  grant  is  the Flowers  Flowers PA  purchase of a set of speakers suited Association  system  to  the  outdoor  broadcast  of  music

and voice for events.

26  Spice  Spice  2013  £700  To  support  the  Spice  Treasures  and Treasures and  Treasures and  Trade event held in September 2013.

Trade  Trade Fair

27  Jersey  Marketing to  2013  £5,592  The objective and purpose of the grant Language  French  is  to  facilitate  a  2 year  marketing Adventure  Language  project aimed at increasing the number Students  of  students  visiting  JLA  for  English

Language and adventure courses.

28  Jersey Heritage  Ice Age  2013  £43,000  The  project  is  to  provide  and Interpretation  interactive  living  Ice  Age  history

exhibition  to  complement  the archaeological  excavations  and produce  a  walking  guide,  and

dedicated website.

29  National Trust  Wetlands  2013  £37,870  The  objective  and  purpose  of  the for Jersey  Centre,  grant is to complete the development

St. Ouen  of  a  Wetland  Visitor  Centre  at

St. Ouen 's Pond.

30  Branchage  Branchage  2013  £100,000  The  purpose  of  the  grant  is  to Film Festival  Annual and  develop  and  deliver  the  new Limited  Biennial  Branchage Annual Festival in 2014,

Festivals  and to develop the Branchage Biennial

Festival  into  an   Island-wide  multi- media  festival  to  be  held  in

Autumn 2015.

31  West Park  Restoration of  2013  £115,000  The  objective  and  purpose  of  the Marine Lake   St. Helier Sea  grant  is  restore  and  develop  the

Trust  Pool   St. Helier  western  Sea  Pool  into  a

public water sports facility.

32  Paradox  Interior  2013  £20,000  To enhance the interior at Haut de la Limited  refurbishment  Garenne, by installing ground-floor

at Jersey  toilet, shower and sauna facilities. Outdoor

Activity Centre

Applicant  Project  Year  Amount  Comment

approved

33  Journey  Marketing to  2013  £7,350  The purpose of the grant is to market Boutique  Russian  Jersey as a destination to Russian-

Limited  tourists  speaking tourists.

34  Jersey Tourism  Replacement of  2013  £5,100  To replace the beach signs on non-

Beach Signs  life-guarded beaches in Jersey.

35  Jersey Tourism  Venture Cup  2013  £20,000  The purpose of the grant is to bring the Powerboat  Venture Cup to Jersey in June 2014.

Race stopover  The Venture Cup is a power boat race from  the  River  Thames  to  Monte

Carlo.

36   St. Brelade 's  Marketing to  2013  £4,545  Implementation  of  a  3 year College  Russian  marketing  plan  to  recruit  English Language  Language  students  from  Eastern

Students  Europe (specifically Russia).

37  Jersey Heritage  Family History  2012  £6,875  Family  History  Tourism  is  a Online  growing  niche  market.  This  will

Development  allow the development of a website to  encourage  more  people  to  visit

Jersey to find out about their past. 38  Jersey Tourism  Refurbishment  2012  £11,079  The cycle network is a key draw for

of Cycle  many visitors to Jersey and work is

Network signs  required  to  ensure  the  network  is effectively promoted and signposted

across the Island

39  Tarka Sea  International  2012  £3,412  The grant has been awarded to joint Trips Ltd.  marketing for  fund marketing into a new market to

Tarka Sea  test  viability  of  such  an  approach

Trips  over the longer term.

40  Channel  Improvement  2012  £5,000  Further support has been granted for Islands  of Occupation  specific  works,  particularly  at Occupation  sites  Corbière, to ensure these important

Society  sites of interest are maintained and improved  to  showcase  Jersey's

historical tourism offering.

41  Jersey Chess  International  2012  £5,000  Funding to enable the establishment Club  Chess  of  an  international  Chess Tournament  tournament, which is anticipated to

draw  competitors  to  Jersey  for  a week-long  competition  in  the shoulder  months.  Organisers  are intending  to  make  this  a  regular

event in the Jersey calendar

Applicant  Project  Year  Amount  Comment

approved

42  Spice  Spice  2012  1,000  2,700 people attended this event in Treasures and  Treasures and  September 2012. The organisers are

Trade  Trade Fair  intending to make this into a regular

event in the tourism calendar.

43   St. Helier  Tour des Ports  2012  1,500  The  Tour  des  Ports  attracted  over Yacht Club  100 yachts  and  700 crew  and  race

officials.

44  Jersey Rugby  Stand for  2012  56,000  The  TDF  made  a  contribution Football Club  Jersey Rugby  towards  building  a  stand  at  the Football Club  Rugby  Club,  to  enhance  visiting

supporters'  experiences  and  to encourage  repeat  visits  and recommendations to other 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.

45  Durrell  Developing  2011/2  £121,500  The  Camping  facility  opened  for Wildlife  luxury  business at the end of July 2012, and Conservation  Camping at  in  August  it  achieved  an  87%

Trust  Durrell  occupancy rate. It is anticipated that it  will  be  achieving  significant

revenues  for  Durrell  in  years  to come,  which  improves  the sustainability of this key attraction, and brings visitors to experience the wider  tourism  offering  across  the

Island.

46  National Trust  Development  2011  £50,000  This project adds a new attraction to of Wetland  Jersey's portfolio by constructing a

Centre  wildlife viewing centre at St. Ouen 's Pond.  Due  to  poor  weather

conditions,  and  the  inability  to conduct  work  in  seasons  due  to habitat protection, the work has been

delayed until Summer 2013.

47  Branchage  Development  2011  £10,000  Plans  to  develop  the  event  to of business  maximise  its  potential  to  benefit

plan to extend  Jersey.

scope of the

Festival

Applicant  Project  Year  Amount  Comment

approved

48  Jersey Sea  Development  2011  £28,000  This project aims to increase diving Search  of Marine  tourism by exposing the great diving exploration  offering of Jersey, linking in to the

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

market.

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

2012  successful festival.

50   St. Helier  Tour des Ports  2011  £1,500  TDF  funds  allowed  the  marketing Yacht Club  de la Manche  and  promotional  activity  for  the

2011 event.

51  Branchage  Branchage –  2011  £25,000  The successful 2011 festival saw an development of  increase  in  overseas  visitors  and

marketing,  visitor spend.

promotion and

PR

52  Jersey Tourism  P1 Powerboat  2011  £20,000  Funding  awarded  to  support  this Racing  unique  event,  which  included

exposure  on  satellite  television

networks.

53  Jersey Heritage  Refurbishment  2011  143,000  Following  the  success  of  previous of Kempt and  projects, these funds will be used to

La Rocco  turn  Kempt  and  La Rocco  Towers

Towers  into self-catering accommodation.