Tourism Development Fund: Annual Report 2015

STATES OF JERSEY

TOURISM DEVELOPMENT FUND: REPORT FOR 2015

Presented to the States on 28th September 2016

by the Minister for Economic Development, Tourism, Sport and Culture

STATES GREFFE

2016  R.100

REPORT

Foreword

The Advisory Panel of the Tourism Development Fund ("TDF") is pleased to set out the Report and Accounts for 2015.

This  was  the  third  year  the  Fund  has  been  open  to  applications  from  private organisations, following the approval by the States in July 2012 to broaden the remit in order to enable grants to be made to the private as well as the non-profit sector. Applications were invited in the spring, and the Panel received a significant number of applications relating to projects from the Public Sector and both charitable and private organisations.

Advisory Panel members met individually with a number of the applicants, while some were invited to make presentations in order to explain their proposals in more detail. Minutes of all of Panel meetings are recorded by the States Greffe and are published on our website www.jersey.com/tdf.

The Advisory Panel held 6 meetings to review and consider applications received for grants. The Panel assessed projects under a range of criteria, including: the estimated number of visitors, sustainability, timing, and organisational governance. One of the main considerations was the amount of funding that would be raised or generated from sources other than the TDF grant.

The Advisory Panel members serve on a voluntary basis, and the Minister for Economic Development, Tourism, Sport and Culture has expressed his thanks for the time and consideration  they  devoted  to  the  work  through  the  year.  The  Minister  has  also expressed his gratitude for the support provided to the Panel by the States Greffe and support staff in his own Department.

During 2016 the TDF Advisory Panel are working closely with Visit Jersey to ensure that  applications  are  suitably  aligned  with  Destination  Jersey  and  subsequent developments of the strategic plan for tourism. The relationship with Jersey Business is being maintained as the latter continues to provide advice and support to applicants.

John Henwood, M.B.E. Interim Chairman

Introduction

In line with the terms of the Tourism Development Fund's Approved Scheme', the 2015 Annual Report is hereby submitted to the States of Jersey.

Since the TDF began its operations in 2002, until 31st December 2015, there were 184 projects that had received, or were due to receive, financial assistance from the Fund. Twenty-four applications were received for funding during 2015.

1. 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.

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

Through  the  Medium  Term  Financial  Planning  process,  the  TDF  was  allocated £500,000 per year from 2013 – 2015.

In cases where the Advisory 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,  Tourism,  Sport  and  Culture,  detailing  any  additional information to support the application.

2. Advisory Panel Members

During 2015 the Advisory Panel consisted of the following members –

Mr. Peter Funk, Chairman Mr. William Church

Ms. Natalie Duffy

Ms. Daphne East

Mr. Steve Law

Mr. Andrew Shrimpton Mr. Nick Steel

Ms. Aurelie Leroy

Ms. Carol Canavan.

Ms. Aurelie Leroy tendered her resignation from the Advisory Panel on 10th July 2015 due to her departure from the Island.

In a letter to the Minister dated 7th September 2015 the Chairman, Mr. Funk, indicated his impending resignation and those of certain Panel members. Subsequently, Mr. Funk, Ms. Canavan, Mr. Church, Mr. Shrimpton and Mr. Steel wrote to the Minister formally tendering their resignations.

3. Activities in 2015

The Advisory Panel met 6 times during the year. Copies of the minutes are available on www.jersey.com/tdf.

To alert potential applicants of the opportunity for funding, advertisements were placed in the Jersey Evening Post, promoted  on Jersey.com, a  press release issued, and highlighted in the Jersey Tourism e-newsletter.

As previously, the Advisory 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 Advisory Panel members or Economic Development Officers were tasked with contacting the applicant, and gathering details to report back to the Advisory Panel. For particular projects where it was deemed necessary, the applicants were invited in to discuss their projects with the Advisory Panel as a whole.

4. Appeals in 2015

One appeal was considered by the Minister for Economic Development, Tourism, Sport and Culture. The appeal was from the Jersey Literary Festival Association, and the requested  funding was to assist with the  marketing of the  Festival of Words.  In upholding the appeal, the Minister approved the application in a reduced sum of £39,936.

5. Approvals in 2015

The following projects were approved during 2015 –

*The grant to Off-Road Adventures Limited was later withdrawn due to the applicant's failure to secure planning permission.

Tourism Development Fund – Financial Analysis Summary Snapshot

Changes in Fund Net Asset Value

The decrease of £0.1 million was mainly due to the payment of grants (£0.7 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

The Fund received a grant of £500,000 from the Economic Development Department to allow the TDF Advisory Panel to continue further rounds of grant allocations during 2014 and beyond.

There was an increase of 9.8% in grants paid compared to 2014. Grants from the Fund are considered and recommended to the Minister by an Advisory Panel comprising business leaders. The amount paid in grants each year is dependent upon the number and financial amounts of applications received and approved by the Advisory Panel.

Grants paid out by the Economic Development, Tourism, Sport and Culture Department in 2015 amounted to £675,393.

Statement of Comprehensive Net Expenditure

Statement of Financial Position