Tourism Development Fund: Annual Report 2016.

STATES OF JERSEY

TOURISM DEVELOPMENT FUND: ANNUAL REPORT 2016

Presented to the States on 30th June 2017

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

STATES GREFFE

2017  R.77

REPORT

Foreword

The Advisory Panel of the Tourism Development Fund ("TDF") is pleased to set out the Report and Accounts for 2016.

This  was  the  fourth  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 throughout the year and the Panel received a significant number of applications relating to projects from charitable and private organisations.

Some applicants 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 the Visit Jersey trade and media website at: www.business.jersey.com/tourism-development-fund

The Advisory Panel held 5 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 2017, the TDF Advisory Panel are working closely with Visit Jersey to ensure applications are suitably aligned with the Jersey Destination Plan 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.

Mr. Kevin Keen

Chairman (appointed 3rd January 2017)

[Mr. John Henwood, M.B.E. was the Interim Chairman from 25th January 2016 to 19th December 2016]

Introduction

In line with the terms of the TDF Approved Scheme', the 2016 Annual Report is hereby submitted to the States of Jersey.

Since the TDF began its operations in 2002, until 31st December 2016, there were 188 projects that had received, or were due to receive, financial assistance from the Fund. Five projects were approved for funding during 2016; the grant offer for one application was later withdrawn as the applicants were no longer in a position to accept the grant.

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.

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 2016 the Advisory Panel consisted of the following members –

Mr. John Henwood, M.B.E. (Interim Chairman) Ms. Natalie Duffy

Ms. Daphne East

Mr. Steve Law.

Mr. John Henwood, M.B.E. tendered his resignation as the Interim Chairman of the Advisory Panel on 19th December 2016. Mr. Kevin Keen was appointed as Chairman on 3rd January 2017.

3. Activities in 2016

The Advisory Panel met 5 times during the year. Copies of the minutes are currently available on the Visit Jersey media and trade website. The minutes will be made available on www.gov.je once the new pages for the Tourism Development Fund are live.

To alert potential applicants of the opportunity for funding, advertisements were placed in the Jersey Evening Post, a press release was issued, and it was highlighted in the Visit Jersey 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 are invited in to discuss their projects with the Advisory Panel as a whole.

4. Appeals in 2016

One appeal was considered during 2016 by the Minister for Economic Development, Tourism, Sport and Culture. The appeal was from the Jersey Festival of Darts. The Minister upheld the Advisory Panel's recommendation not to award funding to the applicant.

5. Approvals in 2016

The following projects were approved during 2016 –

* The grant to The Lido, Havre des Pas was later withdrawn as the applicants were no longer in a position to accept the grant.

Tourism Development Fund – Financial Analysis Summary Snapshot

Changes in Fund Net Asset Value

The decrease of £0.2 million was due to the payment of grants (£0.23 million). Tourism Development Fund Net Asset Value over time

1,000 800 600

£'000 400

200 0

2012 2013 2014 2015 2016

There was a decrease of 65% in grants paid compared to 2015. Grants from the Fund are considered and recommended to the Minister by an Advisory Panel comprised of 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.

Claims paid out by the Economic Development, Tourism, Sport and Culture Department in 2016 under grants previously awarded amounted to £236,388.

Actual payments made, during 2016, to projects approved in 2016 and earlier

*The above amount paid includes accruals of £18,761 as at 31st December 2016. Statement of Comprehensive Net Expenditure

Statement of Financial Position