Western Bay of Plenty Tourism and Visitors Trust - Statement of Intent
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Western Bay of Plenty
Tourism and Visitors
Trust
Statement of Intent
1
Western Bay of Plenty Tourism
and Visitors Trust
STATEMENT OF INTENT FOR 2014/15 FINANCIAL YEAR
1. Introduction
The Western Bay of Plenty Tourism and Visitors Trust is incorporated
under the Charitable Trusts Act (1957), and is a not for profit entity
established to promote the Western Bay of Plenty region as a visitor and
tourist destination.
Abbreviations used:
Western Bay of Plenty Tourism and Visitors Trust “TBoP”
Tauranga City Council “TCC”
Western Bay of Plenty District Council “WBOP DC”
Tauranga City Council and
Western Bay of Plenty District Councils “the Councils”
Western Bay of Plenty sub-region “the region”
Council Controlled Organisation “CCO”
Statement of Intent “SOI”
2. Principle and Specific Objectives
2.1 Principle Objective
The principle objective of TBoP is to actively contribute to the achievement
of the vision through development of the Western Bay of Plenty as a
leading domestic and international tourism destination.
The vision for the region is to be:
A destination that has a vibrant, sustainable tourism offering.
One of the top five tourism destinations in New Zealand (as
defined and measured by visitor spend) by 2025.
(Vision to be aligned as appropriate with new council’s vision – TBC)
2
2.2 Specific Objectives of Tourism Bay of Plenty
To increase visitation to the region, the following focus areas broadly define the
priorities for TBoP:
1. Destination Marketing: Further develop the international and domestic
tourism market and increase visitor numbers to the region and visitor spend.
Strengthen the region’s brand and compete on our unique offerings.
2. Destination Management: Grow the capability of the tourism industry in a
sustainable way. Implement the TBoP strategic plan, manage human and
financial resources and act in accordance with Council code of conduct.
Manage the i-SITE on behalf of TCC.
3. Destination Development: Increase the region’s tourism infrastructure and
resources; contribute to the regions event strategy, help develop new tourism
product and assist the ‘export ready’ development of existing product.
4. Destination Leadership: Provide leadership for Tourism as a major
contributor to regional economy. Encourage collaboration and partnerships
between council, economic development agencies, tourism operators, other
regions and other stakeholders to gain alignment and commitment to our
vision.
3. Governance
TBoP is a Council Controlled Organisation of the Tauranga City and
Western Bay District Councils.
3.1 The role of the Board of TBoP
The Board of trustees are responsible for setting the strategic direction of
TBoP, approving the SOI, the Annual Business Plan and the Annual
Budget.
The trustees delegate the day-to-day operation of TBoP to the General
Manager of TBoP who reports regularly to the Board.
3.2 Board of Trustee Skills, Knowledge and Experience
Within the composition of the Board there are members who have the
following skills, experience and knowledge:
Business and management (including financial management)
Linkages with and knowledge of the tourism market and tourism
product in the Bay of Plenty.
An interest in and knowledge of the tourism industry and environment
in New Zealand
Linkages with and understanding of Tauranga business community and
key agencies.
Understanding of the cultural history of the region.
Linkages with and understanding of Tauranga Moana Tangata Whenua
33.3 The Role of the TCC & WBOP DC
The TCC and WBOP DC are partners of TBoP, providing:
Representation on the appointment panel selecting TBoP’s Board
of Trustees.
Financial support on behalf of the residents of the region in the
form of an annual grant towards operational funding, and; a
monitoring role receiving and reviewing performance.
4. Deliverables specific to TCC & WBOP DC
4.1 Statement of Intent (SOI)
The Statement of Intent for the ensuing financial year will be provided by
TBoP to the Councils by 1 March each year.
The 12 month business plan will be submitted with detailed budgets by
April annually.
4.2 Planning
4.2.1 10 Year Strategic Plan
Prepare a ten yearly Strategic Plan, with interim reviews, which identifies:
The objectives and outcomes proposed for the operation of TBoP
in the following ten years.
The nature and scope of the activities to be undertaken to achieve
the proposed objectives and outcomes and the critical success
factors that may influence these.
Longer term issues together with associated funding challenges
and solutions
Such other matters as agreed to between the Council and the
Trustees.
The current 10 year “Smart Tourism” strategy is due for review in 2014.
TBoP will ensure this strategy is updated to reflect the current regional
4vision, considers market dynamics and positions the region for future
growth, based on achievable long term strategies.
4.2.2 3 Year Plan
Prepare and annually update a three year Business Plan which is
consistent with the Strategic Plan and identifies:
Indicative rolling three year forecast of financial performance and
position, separately identifying any significant intended
expenditure.
Any likely requests for increased levels of funding from Council.
Key action or initiatives to deliver on the objectives of TBoP.
Upcoming challenges, risk and opportunities for TBoP.
4.3 Reporting
To keep the Councils informed of matters of substance affecting
the trust.
To produce half yearly and annual reports to the Councils on both
financial and non-financial performance based on an annual
balance of 30 June.
To appraise the performance of the Board of Trustees at least
annually.
To ensure there are no surprises for the Councils.
4.3.1 Half Yearly Report
Within six weeks after the end of the first half of each financial year,
the Trustees shall deliver to the Councils an unaudited report
containing the following information in respect of the half year
under review:
a. Statement of Financial Performance (income statement)
disclosing revenue and expenditure and comparative prior
period and budget figures
b. Statement of Financial Position (balance sheet);
c. Progress towards Non-Financial Performance Targets;
d. A commentary on the results for the first six months, together
with a report on the outlook for the second six months with
reference to any significant factors that are likely to have an
effect on TBoP’s performance, including an estimate of the
financial result for the year based on that outlook.
54.3.2 Annual Report
Within one month after the end of each financial year, the Trustees
shall deliver to the Councils a draft annual report, and within two
months after the end of each financial year audited financial
statements (subject to audit delivery) in respect of that financial
year, containing the following information:
a. Audited financial statements for that financial year; and
b. The Auditor’s report on
i. those financial statements; and
ii. the performance targets and other measures by
which performance has been judged in relation to
the objectives
c. The audited financial statements shall consist of:
i. Statement of Financial Position; and
ii. An overall operating statement; and
iii. One operating statement in respect of each
significant activity; and
iv. Statement of Performance against Financial and
Non-Financial Performance Targets
v. Such other statements as may be necessary to fairly
reflect the financial position of TBoP and its
subsidiaries, the resources available to TBoP and its
subsidiaries and the financial results of the
operations of TBoP and its subsidiaries.
65. Scope of Activity & Performance Framework
The activity described below applies to the area covered by the Bay of Plenty Regional Tourism Organisation as recognised by
Statistics New Zealand and covering the rateable areas of TCC and WBDC.
Strategy Deliverable 2014/15 2015/16 2016/17
1. Destination Marketing Identification of opportunities to Increase international visitors Increase international Increase international
by 2% from the Dec 2013 base visitors by 2% from the visitors by 2% from the
Develop the International and leverage the Tourism New Zealand December 2014 base
of 252,483 international December 2015 base
(TNZ) brand to market the Bay of visitors. of international visitors. of international visitors.
Domestic market and increase Plenty brand into International
Increase international visitors Increase international Increase international
visitor numbers and spend. markets. spend by 2% from $90M to visitors spend by 1% visitors spend by 1%
Strengthen the region’s brand $91.8M to Dec 2014. from the 2014 base of
international spend.
from the 2015 base of
international spend.
and compete on our unique
offerings.
Collaborate with regional marketing Presence at 2 International in Presence at 2 Presence at 2
market activities in key target International in market International in market
International Marketing
networks to increase marketing
markets of Australia, China, activities in key target activities in key target
leverage into key international India, UK & Europe. markets of Australia, markets of Australia,
markets eg: Explore Central North Attend 6 ECNI meetings p.a. China, India, UK & China, India, UK &
Island, RTONZ, Kiwilink, Attend 4 RTONZ meetings. Europe. Europe.
Min. 4 x operators participate Attend 6 ECNI Attend 6 ECNI
at TRENZ. meetings p.a. meetings p.a.
Min. 2 x pre or post event Attend 4 RTONZ Attend 4 RTONZ
famil’s. meetings. meetings.
Profile Bay of Plenty at TRENZ Min. 4 x operators Min. 4 x operators
participate at TRENZ. participate at TRENZ.
(Tourism Rendezvous New Zealand) Min. 3 x pre or post Min. 4 x pre or post
and other key TNZ events. event famil’s. event famil’s.
Investigate the formation of an IMA IMA status achieved with TNZ. 4 x IMA meetings p.a. 4 x IMA meetings p.a.
(International Marketing Alliance) 4 x IMA meetings p.a. 4 x IBO meetings/ 4 x IBO meetings/
4 x IBO meetings/ contacts per contacts per annum. contacts per annum.
and engage IBO’s (Inbound annum.
Operators) on local product tours/
offerings.
7Deliverable 2014/15 2015/16 2016/17
Market the coastal Bay of Plenty Increase domestic Increase domestic Status Quo unless
domestically by promoting the visitors by 2% from Dec visitors by 1% from Dec funding available for
2013 base of 797,300. 2014 base. domestic marketing
unique qualities and key assets of Increase domestic Increase domestic activity.
the Region under the “Plenty for visitors spend by 2% visitors spend by 2% Maintain domestic visitors
Everyone” marketing campaign. (from Dec 2013 base of (from Dec 2014 base) to Dec 14 base.
$430M. Increase length of stay Increase length of stay
Increase length of stay from current level to 2.7 from current level to 2.9
from current level of 2.51 nights. nights.
nights to 2.6. Website traffic to Website traffic to
Website traffic to www.bayofplentynz.com www.bayofplentynz.com
www.bayofplentynz.com increase by 10% to Dec increase by 10% to Dec
increase by 10% to Dec 2015. 2016.
2014.
Domestic Marketing
Plan and execute seasonal domestic Increase referrals to Increase referrals to Status Quo unless
campaigns linked with package participating operators participating operators funding available for
from from domestic marketing
offerings to promote tourism www.bayofplentynz.com. www.bayofplentynz.com. activity.
operators and where appropriate APR Research Services TBC Target
flagship events, across the region. (APR) Activity Monitor APR Research Services
growth equal to or Activity Monitor growth
exceeds Commercial equal to or exceeds CAM
Accommodation Monitor growth.
(CAM) growth.
Sustained PR activity in local, 4 x domestic famils 4 x domestic famils 4 x domestic famils
domestic and international media. hosted in region. hosted in region. hosted in region.
10 x press releases per 10 x press releases per 10 x press releases per
Host media and trade annum. annum. annum.
familiarisations to increase out of 8 published articles per 8 published articles per 8 published articles per
region awareness with travel trade annum. annum. annum.
and consumers. Target key domestic Target key domestic Target key domestic
audiences of Auckland & audiences of Auckland & audiences of Auckland &
Hamilton. Hamilton. Hamilton.
Utilise on-line, social media and Increase no. of trade Increase no. of trade Increase no. of trade
direct marketing capabilities to listing on TBoP website listing on TBoP website listing on TBoP website
to 600 (from 559). to 625. to 650.
promote coastal Bay of Plenty to Build a responsive Implement new
select target markets and increase website for use with responsive website.
revenues through direct on-line mobile devices.
bookings.
8Deliverable 2014/15 2015/16 2016/17
Develop a trade marketing Host 4 industry forums Host 4 industry forums Host 4 industry forums
programme to Tourism industry and cluster meetings. and cluster meetings. and cluster meetings.
Increase no. of paid Increase no. of paid Increase no. of paid
operators which builds value in the listings on listings on listings on
TBoP brand and usage by industry. www.bayofplentynz.com www.bayofplentynz.com www.bayofplentynz.com
Provide pre-packaged promotional from 89 – 100. to 115. to 125.
opportunities for operators to
participate in, promoting their
business.
Market to TBoP residents to Annual “Mates Rates” Annual “Mates Rates” Annual “Mates Rates”
increase local community knowledge campaign. campaign. campaign.
Participation of at least Participation of at least Participation of at least
and increase their referral of tourism 20 operators (in line with 20 operators (in line with 20 operators (in line with
offerings to VFR’s (Visiting Friends & 2012 and 13 campaigns) 2012 and 13 campaigns) 2012 and 13 campaigns)
Relatives) Website traffic increase Website traffic increase Website traffic increase
greater than previous greater than previous greater than previous
year. year. year.
Local’s participation Local’s participation Local’s participation
measured by APR measured by APR measured by APR
monitor. monitor. monitor.
Develop and maintain destination Distribution through Distribution through selected Distribution through selected
selected high value high value circuits as high value circuits as
brochures and collateral to promote measured by merchandising measured by merchandising
circuits as measured by
the region and specific attractions merchandising report. report. (Covering report. (Covering
and facilitate the provision of readily (Covering neighbouring neighbouring regions of neighbouring regions of
accessible tourism information. regions of Akld,Coro,Rot,BOP,Wai,HB). Akld,Coro,Rot,BOP,Wai,HB).
Akld,Coro,Rot,BOP,Wai,
HB).
9Strategy Deliverable 2014/15 2015/16 2016/17
2. Destination Management Implement the TBoP strategic plan with a 1 year, 3 year and 10 1 year, 3 year and 10 1 year, 3 year and 10
10 years, 3 year and 1 year operational year strategic plans. year strategic plans. year strategic plans.
Grow the capability of the 6 month and 12 month 6 month and 12 month 6 month and 12 month
view of sustainable growth. Review and
tourism industry in a report on these plans at 6 month and 12
reporting in line with the reporting in line with the reporting in line with the
Councils reporting Councils reporting Councils reporting
sustainable way. Implement month intervals. deadlines. deadlines. deadlines.
the TBoP strategic plan;
manage human and financial Continued implementation of the
resources and act in SmartTourism strategy and actions.
accordance with Council code
of conduct. Manage the i- Participate in Council’s 2015/25 Ten Year
Plan process.
SITE on behalf of TCC.
Operational Management
Prudent financial management of TBoP, i- Profit & Loss in line Profit & Loss in line Profit & Loss in line
SITE with expenses managed in line with with budget. with budget. with budget.
6 month and 12 month 6 month and 12 month 6 month and 12 month
budget and income at or above forecast report. report. report.
budget. Continued pursuit of operational Complete in line with Complete in line with Complete in line with
efficiencies and alternate income streams TCC reporting TCC reporting TCC reporting
to supplement current funding. deadlines. deadlines. deadlines.
Retain a high performing, skilled team with Decreased human Decreased human Decreased human
high levels of employee satisfaction and resource and resource and resource and
recruitment costs due recruitment costs due recruitment costs due
productivity. to staff retention. to staff retention. to staff retention.
Completion of annual Completion of annual Completion of annual
individual performance individual performance individual performance
and development and development and development
plans. plans. plans.
Annual team building/ Annual team building/ Annual team building/
team training activity. team training activity. team training activity.
Act as a responsible corporate citizen, Adherence to Code of Adherence to Code of Adherence to Code of
complying with the Councils CCO code of Conduct. Conduct. Conduct.
Policies up-to-date and Policies up-to-date and Policies up-to-date and
conduct and with policies and practices communicated to staff, communicated to staff, communicated to staff,
that promote a non-discriminatory, equal 1 per policy per weekly 1 per policy per weekly 1 per policy per weekly
opportunity and safe workplace. team meeting. team meeting. team meeting.
10Effective management of i-SITE visitor Profit & Loss Profit & Loss Profit & Loss
centres. Reduce running costs and achievement of Budget. achievement of Budget. achievement of Budget.
Continued i-SITE Continued i-SITE Continued i-SITE
increase revenue of i-SITE visitor centre. membership. membership. membership.
Provision of efficient reservation Maintain sales of tours, Maintain sales of tours, Maintain sales of tours,
management, comprehensive product activities and activities and activities and
advice and information and outstanding accommodation in accommodation in accommodation in
TBoP. TBoP. TBoP.
customer service. Maintain retail sales at Maintain retail sales at Maintain retail sales at
VIC = Visitor Information Centre. current levels. current levels. current levels.
Maintain Qualmark Maintain Qualmark Maintain Qualmark
rating of 89% at rating of 89% at rating of 89% at
Tauranga VIC. Tauranga VIC. Tauranga VIC.
Staff retention of 90%. Staff retention of 90%. Staff retention of 90%.
VIC
Conduct ongoing Conduct ongoing Conduct ongoing
Customer satisfaction Customer satisfaction Customer satisfaction
survey’s in-store. survey’s in-store. survey’s in-store.
48hr SLA response to 48hr SLA response to 48hr SLA response to
enquiries. enquiries. enquiries.
Complete review of the i-SITE operation to Options presented to Implement approved
investigate the best model of service TCC by calendar year plan.
end.
delivery and review national and
international best practice.
Establish operational excellence at the i- Positive operational Positive operational Positive operational
PORT, strive for cost break-even and P&L. P&L. P&L.
Customer satisfaction Customer satisfaction Customer satisfaction
continue to be leading example to other amongst top 3 NZ Ports amongst top 3 NZ Ports amongst top 3 NZ Ports
i-PORT Management
Ports. as measured by as measured by as measured by
shipping companies. shipping companies. shipping companies.
(currently 9.15/ 10, 3rd
highest for 12/13
season).
11Strategy Deliverable 2014/15 2015/16 2016/17
Destination Development Support the relevant subregional Events Aligned to visitor nights More specific targets More specific targets
and spend targets. created from TCC Strategy created from TCC Strategy
Increase the region’s tourism Strategy to support and promote flagship
Timing dependent on document. document.
events that increase visitors and spend.
infrastructure and resources; Produce and implement an events
TCC Strategy timing.
Events & NPD Development
contribute to the subregions marketing and promotion strategy for major
event strategy, help develop events.
new tourism product and assist Encourage the investment in new tourism Assist with new Assist with new Assist with new
business development business development business development
the ‘export ready’ development product and infrastructure needed for
opportunities as they opportunities as they opportunities as they
of existing product. sustainable, 365 day tourism industry. arise. arise. arise.
Development of existing product and 2 export ready training 2 export ready training 2 export ready training
existing businesses through development sessions with operators sessions with operators sessions with operators
planning and export ready training and Maintain 100 operators Maintain 100 operators Maintain 100 operators
with Qualmark with Qualmark with Qualmark
achievement of Qualmark status. accreditation. accreditation. accreditation.
Work with local Iwi to identify and promote As opportunities arise. As opportunities arise. As opportunities arise.
tourism experiences that feature Maori Minimum of 4 culturally Minimum of 4 culturally Minimum of 4 culturally
based engagements based engagements with based engagements with
culture and assist in the product with Iwi. Iwi. Iwi.
development of indigenous cultural
experiences.
Participate actively in the Central North Contribute funding to Contribute funding to Contribute funding to
Island Cycling and Mountain Biking CMBTMN. CMBTMN. CMBTMN.
Work with TCC & Work with TCC & Work with TCC &
Tourism marketing network and encourage WBDC on cycleway WBDC on cycleway WBDC on cycleway
development of extended urban and development development development
regional cycle ways. opportunities. opportunities. opportunities.
Promote regional Promote regional Promote regional
cycleway assets. cycleway assets. cycleway assets.
Conference & Incentives
Maintain a conference bureau presence to 24 hr response to 24 hr response to 24 hr response to
target conference business in the region, conference enquiries. conference enquiries. conference enquiries.
Attend Convene trade Attend Convene trade Attend Convene trade
target growth in this sector once a Hotel show (min) show (min) show (min)
development is confirmed. 4 x Famils. 4 x Famils. 4 x Famils.
6 x business 6 x business 6 x business
development Sales development Sales development Sales
Calls. Calls. Calls.
Maintain current levels Maintain current levels Maintain current levels
as measured in as measured in as measured in
Conference Activity Conference Activity Conference Activity
Survey (CAS). Survey (CAS). Survey (CAS).
12Continue to champion the development of Benchmark to CAS Benchmark to CAS Benchmark to CAS
new conference and events facilities to (Conference Activity (Conference Activity (Conference Activity
Survey) Survey) Survey)
allow the subregion to compete for larger
national conferences and events.
Increase the volume and value of Cruise 2% increase in cruise 2% increase in cruise 4% increase in cruise
business in the region through ship passenger and ship passenger and ship passenger and
crew capacity from crew capacity to 223k. crew capacity to232K.
development of the Cruise ship market. 213k to219k.(info (Port of Tauranga PAX (Port of Tauranga PAX
Target cruise ship lines to increase source Cruise NZ ship capability report) capability report)
stopovers and create sustainable season ship capacity
partnerships. record) Retain spot in top 3 Retain spot in top 3
Port call in NZ Port call in NZ
Retain spot in top 3 (Currently 3rd for (Currently 3rd for
Port call in NZ 2012/13 season. 2012/13 season.
(Currently 3rd for Measure Princess Measure Princess
2012/13 season. Cruise lines) Cruise lines)
Measure Princess
Cruise lines)
Collaborate with the Cruise industry (in Show increased Show increased Show increased
bound tour operators, cruise companies, passenger movements passenger movements passenger movements
Cruise
and positive key and positive key and positive key
local operators and Port of Tauranga for statistics from Port statistics from Port statistics from Port
shore-based cruise operations that passenger movement passenger movement passenger movement
maximises visitor experience and monitor. (Reliant on monitor. (Reliant on monitor. (Reliant on
increases income from sale of regional supply from Cruise supply from Cruise supply from Cruise
companies). companies). companies).
activities and retail.
50% of cruise visitors 50% of cruise visitors 50% of cruise visitors
stay in the Region. (As stay in the Region. (As stay in the Region. (As
calculated from calculated from calculated from
revenue and voucher revenue and voucher revenue and voucher
sales records). sales records). sales records).
13Strategy Deliverable 2014/15 2015/16 2016/17
Destination Leadership Collaborative destination management and Maintain 4 Operator Maintain 4 Operator Maintain 4 Operator
integration across stakeholders and Forums (1 per quarter) Forums (1 per quarter) Forums (1 per quarter)
Provide leadership for Monthly newsletters to Monthly newsletters to Monthly newsletters to
through operator networks to ensure all
Tourism as a major stakeholders are engaged and aware of
stakeholders and stakeholders and stakeholders and
tourism operator tourism operator tourism operator
contributor to regional TBoP activities. database. database. database.
economy. Encourage
collaboration and partnerships Develop/ maintain strong partnerships with Monthly meetings with Monthly meetings with Monthly meetings with
between council, economic Central & local government, Iwi, Tourism P1, TCC, WBDC, P1, TCC, Chamber of P1, TCC, Chamber of
Chamber of Commerce Commerce to pursue Commerce to pursue
development agencies, agencies, economic development agencies to pursue developments. developments.
tourism operators, other and the business community. developments.
regions and other Collaborate with sub-region community Participation in industry Participation in industry Participation in industry
stakeholders to gain groups eg: Waihi Beach, Katch KatiKati, Te forums and networking forums and networking forums and networking
meetings. meetings. meetings.
alignment and commitment to Puke EDG, Whakatane to assist with
our vision. stimulating economic activity through
tourism.
Collaborate with RTO’s both regionally and Participate in Tourism Participate in Tourism Participate in Tourism
nationally to gain improved reach and export council. export council. export council.
Participate in ECNI, Participate in ECNI, Participate in ECNI,
marketing efficiencies. Pacific Highway, Pacific Highway, Pacific Highway,
RTONZ etc RTONZ etc RTONZ etc
GM maintains North GM maintains North GM maintains North
Island Trustee for Island Trustee for Island Trustee for
RTONZ. RTONZ. RTONZ.
Lead and facilitate a co-ordinated Quarterly meetings with Quarterly meetings with Quarterly meetings with
approach to tourism through tourism TNZ and regional TNZ and regional TNZ and regional
RTO’s. RTO’s. RTO’s.
operator networks, working jointly with Regional Tourism Regional Tourism Regional Tourism
agencies and supporting collaborative Marketing network Marketing network Marketing network
initiatives. Work with Regional Tourism Cycle strategy Cycle strategy Cycle strategy
organisations and National Tourism collaboration. collaboration. collaboration.
organisations.
Implement a communications plan to Monthly Newsletter Monthly Newsletter Monthly Newsletter
ensure all key stakeholders are engaged in Quarterly GM & Quarterly GM & Quarterly GM &
Governance to Governance to Governance to
and aware of TBoP activities. Governance meetings Governance meetings Governance meetings
Sister city relationships enhanced with a 1 x delegation visit per 1 x delegation visit per 1 x delegation visit per
view to encouraging tourism related 2 years. Delegation to: 2 years. 2 years.
China April 2014.
initiatives.
146. Financial Performance Targets & Measures
Gross revenue is consistent with the agreed budget
Expenditure is managed within the agreed budget
Working capital ratio of no less than 1 (excluding current portion of term
debt)
Equity to assets ratio is reported on
No debt is to be raised to finance operating expenses.
7. Accounting Policies
Financial statements will be prepared in accordance with International
Financial Reporting Standards (IFRS).
7.1.1 Asset Management
TBoP will prepare and implement Asset Management Plans for all
assets.
7.1.2 Ratio of Consolidated Funds
If the Trust is wound up everything reverts to two councils (to be
held in trust for similar purposes), TBoP intend to keep the equity
ratio above .5:1. The ratio is calculated as: equity divided by total
assets.
7.1.3 Estimate of Commercial Value
The Board estimate that the commercial value of the shareholders
investment in TBoP is represented by the net assets of TBoP. This
value is calculated from total assets less liabilities.
7.1.4 Transactions Between Related Parties
Transactions between the Councils and TBoP will be conducted on
a wholly commercial basis.
7.1.5 Distribution to Shareholders
TBoP does not intend making any distribution of surplus or capital
reserves to Council.
158. Funding Principles
The parties recognise the following funding principles as being critical to
the arrangement:
Sustained private sector funding (both in cash and in kind) is a tangible
and critical demonstration, both to the tourism business sector and to
the ratepayer, of the fact that the role, contribution and partnership of
Tourism Bay of Plenty is valued.
The private/public sector co-funding model demonstrates to the
community and to central government the existence of a partnership
which is able to achieve sound economic outcomes.
The private/public sector co-funding model is essential to maximise the
potential for leveraging central government funding in the Western Bay
of Plenty sub-region.
9. Significant Decisions
TBoP will not undertake any activity of a nature of scope not provided for
in this SOI without prior approval of the Councils. In particular prior
approval would be required for TBoP to:
o Form any subsidiary entity
o Purchase shares in any other entity
o Dispose of any significant assets eg: land or buildings
o Purchase any significant assets eg: land or buildings
10. Compensation from Local Authority
TCC and WBOP DC intends to purchase services from Tourism BOP
over the long term and agrees to the level of funding on a rolling three
year basis aligned to the three year Business Plan of Tourism BOP.
The services for the next three years will be funded as per the table
below.
Funder 2014/15 2015/2016 2016/17
TCC $825,613 $825,613* $825,613*
WBOP DC $185,326 $185,326* $185,326*
Total $1,010,939 $1,010,939* $1,010,939*
*plus inflation adjusted
The payments will be made quarterly in advance on receipt of a GST
invoice, with payments one and two each being 30% of the annual sum,
and payments three and four each being 20% of the annual sum.
Note: Tourism Bay Of Plenty has a separate contract for the delivery of i-
SITE services with Tauranga City Council.
16I-site financials
Funder 2014/15 2015/2016 2016/17
TCC $291,107 $291,107* $291,107*
*plus inflation adjusted
2014/15 figures are the same as 2013/14 with no increase for inflation.
11. Termination
If any party wishes to terminate this three year rolling arrangement due
to non-performance or other substantive reason within the control of
either of the parties:
(a) the party may give written notice to the other party specifying the
issue and if possible requiring remedy within twenty-eight (28) days,
and/or
(b) mediation is set to investigate any remedy of the issue,and/or
(c) if the issue is unable to be remedied to the party’s satisfaction, the
party must give written notice of intention to terminate this
arrangement from a date being not less than one year commencing
the forthcoming 1 July. (That is, the party must have at least one
full financial year notice commencing on 1 July and ending on 30
June.
Signed by
………………………………………. ………………………………..
Chair of Tourism BOP General Manager Tourism BOP
………………………………………. ……………………….….
Mayor Tauranga City Council Chief Executive
Tauranga City Council
………………………………………. ……………………….….
Mayor Chief Executive
Western Bay of Plenty District Council Western Bay of Plenty District
Council
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