ANNUAL REPORT - Tourism Western Australia Us/Documents... · 2010 – 2011 Annual Report Tourism Western Australia 1 Key visiTor sTATisTics for WesTern AusTrAliA Year ending March

ANNUAL REPORT 2010 – 2011

2010 – 2011 Annual Report Tourism Western Australia

1

Key visiTor sTATisTics for WesTern AusTrAliAYear ending March 2011

Source: Tourism research Australia’s national visitor survey and international visitor survey (visitors aged 15+ years).

Note: The National Visitor Survey (NVS) and the International Visitor Survey (IVS) have different methodologies. IVS is a face-to-face

survey with international visitors at airport departure lounges across Australia. NVS is a random telephone survey with residents across

Australia. Visitor numbers, nights and spend are estimates based on the survey results. Confidence intervals: Intrastate: Spend +/–

4.6%, Visitors +/– 7.0%, Nights +/– 11.0%; Interstate: Spend +/– 4.6%, Visitors +/– 13.0%, Nights +/– 14.2%; International: Spend

+/– 6.1%, Visitors +/– 5.7%, Nights +/– 9.1%

nights 46.1 million

spend$6 billion

(inc. day -trippers)

visitors 5.8 million(overnight only)

Intrastate Estimates

15.52 million nights

4.11 million overnight visitors and 12.2 million day-trips

$1,893 million spend (overnighters)or $3,070 million (inc day-trippers)

International Estimates

22.1 million nights

710,000 visitors

$1,919 million spend

Interstate Estimates

8.51 million nights

1.02 million visitors

$926 million spend

ToP 10 inTernATionAl MArKeTsYear ending March 2011

Visitor countryVisitorspend$ m

WA share ofspend

(% of national)

1. united Kingdom $264 16.5

2. singapore $228 24.8

3. Malaysia $220 25.8

4. usA $110 9.8

5. new Zealand $108 7.5

6. indonesia $93 19.2

7. china $77 3.1

8. Germany $70 14.3

9. Hong Kong $68 10.9

10. Japan $63 9.5

This table shows that international visitors from the UK, Singapore and Malaysia spend the most while visiting WA.

Furthermore, visitors from Singapore and Malaysia spend more in WA than in other states, followed by the visitors from Indonesia, UK and Germany.

source: Tourism research Australia’s international visitor survey (visitors aged 15+ years).


2

MessAGe To THe MinisTer

To The Honourable Dr Kim Hames, MBBs, JP, MlAMinister for Tourism

Dear Minister

in accordance with section 63 of the Financial Management Act 2006, it is my pleasure to submit for your information and presentation to Parliament the Annual report of the Western Australian Tourism commission (operating as Tourism Western Australia) for the financial year ended 30 June 2011.

The annual report has been prepared in accordance with the provisions of the Financial Management Act 2006.

Kate Lamont cHAirMAn WesTern AusTrAliAn TourisM coMMission

26 september 2011


3

Message to the Minister 2

1.0 Overview 4

1.1 executive summary 4

1.2 operational structure 7

1.3 Performance Management framework 13

2.0 Agency Performance – Report on Operations 14

2.1 report on operations 14

2.2 financial Targets 19

2.3 Key Performance indicators 20

3.0 Significant Issues Impacting the Agency 21

4.0 Disclosures and Legal Compliance 23

4.1 financial statements 23

4.2 Key Performance indicators 63

4.3 Ministerial Directives 70

4.4 other financial Disclosures 70

4.5 Governance Disclosures 71

4.6 other legal requirements 72

4.7 Government Policy requirements 75

conTenTs


4

1.0 overvieW

1.1 eXecuTive suMMAry

MessAGe froM THe cHAirMAn

We are now one year on from a significant organisational restructure which has positioned Tourism WA to help Western Australia’s tourism industry achieve strong growth.

While undergoing this refocus and restructure, the agency and its staff have remained focused on achieving our targeted outcomes, not least of which has been the landmark deal establishing direct flights between china and Perth commencing in november 2011.

Going forward, our focus remains on three core areas to increase visitor numbers:

• Marketing the state as a competitive tourist destination;

• Developing, attracting and marketing major events; and

• facilitating significant tourism infrastructure and development projects.

We are seeing the beginning of a ‘whole of government’ approach to promoting and developing tourism in Western Australia. since the restructure of Tourism WA, and aided by transitional funding provided by the agency, several government departments have undertaken initiatives to support the tourism industry. i would particularly like to acknowledge the small Business Development corporation and the regional Development commissions’ efforts in that regard.

looking forward to 2011-12, Tourism WA aims to build on recent successes through our significantly increased budget, which is at its highest level yet, $81.7 million. This includes a significant additional investment by the state Government of $60 million over four years from 2011-12 that will allow us to support events throughout WA. in addition, a portion of this $81.7 million will be directed at market development in china, which is Australia’s most valuable inbound tourism market.

A stretch goal of growth for the tourism industry in WA was established last year and plans to double the value of the visitor economy from $6 billion in 2010 to $12 billion by 2020. of critical importance in achieving this stretch

goal will be developing key aspects of our industry’s infrastructure – particularly aviation access, hotel accommodation and labour supply.

While much progress has been made in improving aviation access into and within the state, both hotel room supply and tourism industry workforce skill shortages present key challenges that need to be addressed by the federal Government, the state Government and industry.

The size and quality of the tourism workforce is an ongoing challenge, exacerbated by the continuing attraction of labour to the resources industry. labour and skills planning, skilled migration and training initiatives continue to be progressed at both a national and state level to assist in addressing this issue.

And most critically, a lack of hotel rooms in Perth is the single most significant barrier to achieving our industry’s growth. Hotels are critical infrastructure to support the development of the state’s economy, not just the tourism industry. There has been a severe shortage of hotel rooms in Perth since 2005, despite strong and sustained growth in occupancy rates and revenue. This shortage impacts upon WA’s ability to attract corporate and leisure visitors, run major conferences and events, attract new airline capacity and disperse travellers to the regions. The undersupply of hotel rooms in Perth alone has been forecast by Access economics to result in an annual loss of $660 million in visitor expenditure by the year 2020. We continue to address this with investors and Government as a critical issue.

All in all, it has been an exciting year for the tourism industry and for Tourism WA, and i would like to sincerely thank the Board, executive and employees of Tourism WA for their contribution. i look forward to a productive and collaborative year ahead with Western Australia’s tourism industry.

Kate Lamont cHAirMAn


5

MessAGe froM THe cHief eXecuTive officer

one year ago we undertook an important restructure of Tourism WA and i am proud to say the agency has accomplished significant achievements in that time.

underpinning the new structure is a cultural change of focus, concentrating on ‘big ticket’ projects that have the potential to deliver the greatest impacts for the industry. i would like to acknowledge the enormous contributions of the Tourism WA employees in making the transition to our new business model. i would also like to acknowledge the support of the industry and the Board during this time.

now one year on from the restructure, we can reflect on some of the significant outcomes achieved in 2010-11.

We are very proud to have negotiated a historic deal with china southern Airlines to establish direct flights between china and Perth. flights are expected to begin in november 2011. We are grateful to Westralia Airports corporation and Tourism Australia, which also contributed financially to this agreement.

The commencement of direct flights between china and Perth will be a significant achievement for the state. it will greatly enhance our cultural, commercial and educational ties to china – as well as tourism. The success of this initiative is reliant on a partnership between government and industry; with the government being instrumental in securing the deal and the industry taking the lead in getting china-ready.

We continue to fortify our brand position, experience extraordinary, and we are now extending this brand to the state, with extraordinary WA being used by other government departments and for the commonwealth Heads of Government Meeting. This will greatly reinforce the brand over time and across many more audiences than Tourism WA can reach alone.

We are also very excited to be working with the Department of regional Development and lands on the royalties for regions regional events Program. from 2011-12 we have $10 million per annum over four years to sponsor and promote many exciting events that have the potential to attract visitors to regional WA, helping to overcome some of the difficulties experienced by tourism operators in regional areas.

During 2010-11 our marketing strategy relied on three elements to generate visitors to WA; brand marketing

of the state as a holiday destination with extraordinary experiences; marketing to promote events and convert people who intend to visit ‘sometime’ to come ‘now’; and cooperative marketing with the tourism industry to provide specific product and price packages to generate bookings.

We undertook a $7.8 million domestic marketing campaign for WA in 2010-11 that performed extremely well. it involved 19 industry partners who invested $2.2 million in the campaign. The campaign return on investment was $23 for every $1 of Tourism WA funds invested. We also achieved $70 million worth of ‘estimated advertising value’ through public relations activities. This also included more than $18 million in the domestic market (a record high) due in part to the opportunities resulting from the filming of Masterchef Australia in WA, as seen on commercial Tv on channel 10.

eventscorp sponsored a total of 48 events across the state in 2010-11. We saw record crowds and media coverage of the tennis played at the Hyundai Hopman cup XXiii in January; 215,000 attendees at sculpture by the sea cottesloe in March; and the appearance of Kelly slater (10 times and current World champion of surfing) at the most watched Telstra Drug Aware Pro Margaret river in April 2011.

it has been a challenging and exciting year. i thank the tourism industry for continuing to partner with Tourism WA to promote Western Australia and i look forward to continuing this collaboration in the years to come. i also thank the hard working and loyal employees of Tourism WA for their ongoing commitment to the task at hand, in an ever-changing environment. Together we look forward with enthusiasm to the year ahead.

Stephanie Buckland cHief eXecuTive officer


6


7

1.2 oPerATionAl sTrucTure

enABlinG leGislATionThe Western Australian Tourism commission (operating as Tourism Western Australia) was established under the Western Australian Tourism Commission Act 1983 (‘The Act’).

The Act provides for the establishment of a governing board of up to 10 members appointed by the Governor, one of whom is appointed as chairman.

The Act provides the functions (section 13) of the commission and the necessary powers (section 14) to undertake and fulfil those functions.

resPonsiBle MinisTerThe Minister responsible for Tourism WA is the Hon Dr Kim Hames MlA, Deputy Premier; Minister for Health; Tourism.

our PurPoseTo develop, promote and protect Western Australia’s iconic tourism experiences.

chief executive officer

Board of commissioners

Marketinginfrastructure & investment

eventscorpcorporate & Business

services

• international marketing

• Domestic marketing

• industry partnerships

• Marketing services (including Pr, familiarisations & Digital marketing)

• Business events

• Attraction of capital investment

• Aviation development

• facilitate state tourism infrastructure development (including landbank & naturebank) in cooperation with the private sector and other government agencies

• securing major events

• event development and contract management

• regional event development and contract management

• event evaluation

• corporate governance & risk management

• Procurement and contracting

• Accounting & financial services

• Human resource management

• information & communication technology

• facilities management

orGAnisATion cHArT

executive services

• Ministerial liaison

• Board liaison & management

• strategic & corporate planning

• Policy & research

• cross government co-ordination

corporate communications

• Media liaison

• Ministerial communications

• internal and stakeholder communications


8

Administrative legislationTourism WA administers the Western Australian Tourism Commission Act 1983.

other key legislationKey legislation impacting on our operations includes:

• Financial Management Act 2006

• Public Sector Management Act 1994

• State Supply Commission Act 1991

BoArD of coMMissionersThe Board has overall responsibility for corporate governance. it sets the strategic direction of the agency and the goals of management. Day-to-day operations are delegated by the Board to the chief executive officer and the executive Management Team.

BoArD Profiles

Kate lamont (chairman) Kate lamont is a partner in the lamont family business which operates wine production and sales with restaurants in the swan valley, Margaret river, Perth and cottesloe. Ms lamont has more than two decades of experience in the food and wine industry. she joined the Board of Tourism Australia in July 2009 and was appointed Deputy chair in 2010. Ms lamont is a director of the chamber of commerce and industry Western Australia and committee for Perth. Her term at Tourism Western Australia commenced in May 2004 and she became chairman from september 2006.

David Mazitelli (Deputy chairman)David Mazitelli is the immediate past chairman of ec3 Global, the commercialisation subsidiary of the sustainable Tourism cooperative research centre, and Australian Tourism export council (ATec), the peak industry body that represents the interests of more than 1,150 tourism export companies throughout Australia. Mr Mazitelli served on the Board of the Australian Tourist commission (now Tourism Australia) for 10 years. He was a councillor on the Tourism forecasting council and a director on the boards of the sustainable Tourism cooperative research centre, Tourism Training Australia and see Australia limited. Mr Mazitelli is currently also a Director on the Board of the Perth convention Bureau. His term commenced in october 2006.

Howard cearnsHoward cearns is the founder and chairman of braincells creative Marketing, specialising in brand development and management. He is a founder of little creatures Brewing Pty ltd, which has since listed on the Australian stock exchange as little World Beverages, where he sits as a Director and consults as a member of the creative Development team. Additionally, Mr cearns has interests in the Margaret river wine region as a Director of swings & roundabouts Wines. further tourism experience was gained with two years at Budget rent-a-car, and considerable event and sponsorship strategy exposure with lion nathan as Marketing Director of the swan Brewery. Mr cearns’ term commenced in July 2006.

Alistair (Al) DonaldAl Donald is an experienced corporate lawyer specialising in negotiated acquisitions, joint ventures and private capital fundraising. He is a former head of freehills’ national mergers and acquisitions group and is a member of the freehills’ national Board. in Australia Mr Donald has worked exclusively for freehills in both the sydney and Perth offices, and has been a partner since 1991. He worked in new york from 1985 to 1988 with leading united states and international law firm skadden, Arps, slate, Meagher & flom, specialising in acquisitions and financing work. He was admitted to the new york Bar in 1986. Mr Donald is an honours graduate of The university of Western Australia. Mr Donald’s term commenced in february 2009.

Jane McKeonJane McKeon is currently Group executive Government relations for the virgin Australia Group of Airlines, responsible for government affairs, international relations and industry representation. Ms McKeon has a strong aviation background having previously worked for Ansett international and Qantas Airways, and extensive experience with the policy and political frameworks of government. Born in Perth, she has an economics background and broader tourism industry involvement as a former director of the Australian Tourism export council and current director of the Tourism and Transport forum advisory board. Ms McKeon’s term commenced in January 2011.

neville Poelinaneville Poelina continues to play a major role in the development of indigenous tourism in WA. Mr Poelina is a nyikina man from the Kimberley and current WA


9

indigenous Tourism operators council (WAiToc) chairperson. He has traditional ties throughout the Kimberley, and Aboriginal culture and society in his life. Mr Poelina has been involved in tourism since he was six, when he started selling bait and fishing tips to visitors to Broome. He has operated his own tour business, uptuyu Aboriginal Adventures, in the Kimberley since 2002. Mr Poelina is passionate about Aboriginal tourism and sees it as an integral part of WA’s tourism as a whole. He believes Aboriginal tourism offers two important benefits. firstly, by preserving country and culture, and allowing people to live on country sustainably; and secondly, it ensures visitors get an accurate understanding of Australia’s oldest culture and come away with a deeper knowledge and connection to it. Mr Poelina’s term commenced in January 2011.

Trish ridsdale Trish ridsdale is the chairman of Travellers choice, a leading Australian retail travel company, and also holds directorships in wine, medical research funding and consulting services companies. she is Managing Director of Board Business, a Perth-based consultancy firm that specialises in improving company performance through strategy development, better management of risk, corporate governance assessment and coaching of directors and executives. since 1997, Ms ridsdale has been a director educator for the Australian institute of company Directors and is a fellow of that organisation. Ms ridsdale’s term commenced in July 2007.

John WelbornJohn Welborn is a Perth based mining executive with a wide range of interests and pursuits originating from a background in corporate finance, professional sport and entrepreneurship. Mr Welborn is the Managing Director and ceo of equatorial resources limited, a listed exploration mining company focused on the development of iron ore projects in the republic of congo. Mr Welborn has previously served as the chairman of futurenow, the creative and leisure industries Training council, and in this role was a passionate supporter of workforce development in the tourism industry. A former investment banker, Mr Welborn is also well-known for his achievements on the rugby field - he is Western Australia’s first born and bred Wallaby having played six tests for Australia between 1996 and 1999. He was a founding player with the Western force in their inaugural season in 2006 and served as a Director of rugbyWA from 2006 to 2010. Mr Welborn’s term commenced in March 2010.

stephen Wicksstephen Wicks is the General Manager, Western Australia for corporate Travel Management, Australia’s leading travel-management company. Mr Wicks brings more than 14 years of high-level experience in regional WA, eastern states and international hotel operations and development to the Board. While born in WA, he has held management roles in leading five-star hotels in sydney, Brisbane, surfers Paradise, Hong Kong and vietnam. Mr Wicks’ experience includes involvement in the design, tender and management of contract negotiations for hotel projects in Perth, Mandurah and Port Hedland. He was part of the Mirvac team that established Quay West resort Bunker Bay in the state’s south-West as one of the premium five-star resort hotels in regional Australia. in addition to his current role, Mr Wicks also instructs in the MBA (exec) program for the Australian Graduate school of Management. Mr Wicks is an adjunct professor with the university of Queensland’s school of Tourism and a member of the Tourism committee of the chamber of commerce and industry of Western Australia. He also holds an MBA (exec) from unsW. Mr Wicks’ term commenced in May 2010.

Dixie MarshallDixie Marshall was a channel nine Perth senior newsreader during her term on the Board of Tourism WA. With a career spanning more than 25 years, Ms Marshall is widely regarded as one of Perth’s best journalists. she has worked for The Australian and The West Australian newspapers and a range of radio stations. Ms Marshall was the first woman in Australia to commentate Afl on television and co-hosted the national sportsworld program. she has won a host of awards for news and sports reporting. Ms Marshall’s term commenced in october 2008 and ended in May 2011.


10

corPorATe GovernAnce

Western Australian Tourism commission Board meetings and attendanceof the 10 Board meetings conducted this financial year, the attendance was as follows:

Meetings attended

Meetings eligible to

attendKate lamont 7 7

David Mazitelli 6 7

Trish ridsdale 7 7

Howard cearns 5 7

Dixie Marshall 6 6

Al Donald 7 7

John Welborn 3 7

stephen Wicks 7 7

Jane McKeon 2 3

neville Poelina 2 3

Declaration of interestsThe Board has a standing declaration of interest process, where Board agenda papers are not distributed to those members who have a declared or perceived interest in relation to any matter. in addition to this process, Board members declare other interests from time to time as matters arise.

independent external adviceindividual Board members have the right to seek independent professional advice on particular matters before the Board, subject to approval from the chairman, at Tourism WA’s expense.

committeesThe Board had four committees to assist it in the delivery of Tourism WA’s objectives including one committee to assist in its financial management and governance activities.

The Strategic Marketing Committee provided high level strategic advice on Tourism WA’s marketing activities in domestic and international markets and monitored the success of its activities.

The Infrastructure and Investment Committee made recommendations to the Board on matters affecting the implementation of significant tourism infrastructure developments and where resources should be directed.

The Events Committee guided the executive in the development and implementation of Tourism WA’s events strategy, working to deliver a world-class annual major events calendar for the state featuring both unique, home-grown events as well as international cultural, arts and sporting events.

The Audit and Risk Committee assists the Board in fulfilling its oversight responsibilities for the financial reporting process, the system of internal control, the audit process, and Tourism WA’s process for monitoring compliance with laws and regulations.


11

eXecuTive MAnAGeMenT TeAMThe chief executive officer, the four executive Directors, the Director of strategy and Policy and the Director of corporate communications are ongoing members of the executive Management Team.

stephanie Buckland, chief executive officerstephanie Buckland is the ceo of Tourism WA. she had been acting in that role from January 2010 to May 2011 before being officially appointed.

Ms Buckland was previously the executive Director Marketing at Tourism WA from March 2008, when her responsibilities included leading Tourism WA’s domestic and international marketing activities, including consumer and trade marketing, public relations and research. in that role, stephanie was instrumental in the development of the brand experience extraordinary, as well as the extraordinary Taxi ride campaign.

Prior to joining Tourism WA Ms Buckland was head of retail marketing for Bankwest, where she developed the marketing strategy for the bank’s successful expansion to the east coast of Australia. stephanie also worked for Pfizer consumer Healthcare for many years, marketing well-known consumer brands in the usA and Australia.

Ms Buckland has an undergraduate degree in Marketing from Pennsylvania state university, usA and a Masters in Business Administration from the university of virginia, usA.

David van ooran, executive Director eventscorpDavid van ooran is executive Director of eventscorp. He is responsible for attracting and developing major events for Western Australia, both in Perth and throughout the state’s regional areas.

eventscorp is making a significant contribution to the state’s economy, its national and international profile and community vibrancy, by investing in more than 76 sporting, arts and cultural events for 2011-12.

Mr van ooran joined eventscorp in 2006. Prior to this, he was a member of the executive Management Team at the WA Museum, responsible for commercial, marketing and visitor services across the museum’s seven sites, including the new WA Maritime Museum in fremantle. Prior to this he held a senior management position with the privately owned AQWA, The Aquarium of WA, and management positions at Perth Zoo and the Western Australian Tourism commission.

laura Dawson , Acting executive Director Marketinglaura Dawson is the Acting executive Director of Marketing at Tourism WA. she is responsible for positioning WA as the holiday destination of choice for the state’s target consumer groups.

Ms Dawson joined Tourism WA in 2008 as a strategic and corporate Planner. Prior to this she delivered strategy work for a number of organisations including the new Zealand Tax Department, the Ministry of Justice in new Zealand and the Department of the Attorney General in Western Australia. she has also worked for a number of years in singapore running the new Zealand – singapore chamber of commerce, undertaking marketing, event management and successfully increasing the membership of the organisation.

Ms Dawson is experienced in managing large teams and implementing change. she was closely involved in both the planning and implementation of significant reforms to the new Zealand taxation system, and undertook change management work for the Ministry of Justice in new Zealand.

James Hewitt, executive Director of infrastructure and investment James Hewitt is executive Director of infrastructure and investment at Tourism WA. He is responsible for investment attraction, land use and infrastructure planning, including implementing the landbank and naturebank programs, project development and aviation strategies. Mr Hewitt leads a team that encourages strategic tourism growth by providing valuable industry support and facilitating investment opportunities.

Mr Hewitt joined Tourism WA in 2004 with a background in land development, urban planning and economic development in Western Australia and the united Kingdom. He has qualifications in geography, urban and regional planning and applied finance and investment.

David lowe , executive Director of corporate and Business servicesDavid lowe is executive Director of corporate and Business services at Tourism WA. He is responsible for providing support to other divisions within Tourism WA as well as ensuring compliance with legislative and government policy requirements and recognised accounting and management standards. in particular he is responsible for asset management and contract services, accounting and financial services, human resources, information management support and risk and business continuity management.


12

Mr lowe has worked in the WA public sector for more than 25 years, including the past 10 years with Tourism WA. Prior to this he worked at the Water corporation, family and children’s services, MetroBus and the Public service commission.

Mr lowe holds a Masters in Business Administration, a Graduate Diploma in Management (occupational safety and Health) and a Diploma in Human resources.

neil Poh, Director of corporate communicationsneil Poh is Director of corporate communications at Tourism WA. He is responsible for promoting Tourism WA and eventscorp initiatives to industry stakeholders. He is also responsible for ministerial media liaison as well as internal communications.

Mr Poh joined Tourism WA in october 2010 after six years with WA Police, primarily as the Police commissioner’s Media Advisor.

Prior to that Mr Poh worked as a journalist at channel 7 Perth, channel 9 Perth and ABc radio in Perth, Kalgoorlie and Bunbury, after starting his career at the Geraldton Telegraph. Mr Poh also worked in london as a writer/producer for international news agency, WTn.

Derryn Belford, Acting Director of strategy and PolicyDerryn Belford is Acting Director of strategy and Policy at Tourism WA. she is responsible for managing the strategy, policy, corporate planning, research and ministerial/ board liaison functions within the agency.

Ms Belford joined Tourism WA in 2008 from a 20-year career in research and strategic planning in the private sector. Her industry experience encompasses banking, retail, education, telecoms and information technology, as well as opinion polling during two British general elections. she has held senior positions in consulting firms in london and Perth.

Ms Belford has a Bachelor of science degree in Psychology from The university of Western Australia, and a Masters in Business Administration (Marketing). she is a member and graduate of the Australian institute of company Directors and an active participant on working groups aligned with the national long-Term Tourism strategy.


13

1.3 PerforMAnce MAnAGeMenT frAMeWorK

1.3.1 ouTcoMe BAseD MAnAGeMenT frAMeWorK

Government Goal Desired Outcome Services

financial and economic responsibility:

responsibly managing the state’s finances through the efficient and effective delivery of services, encouraging economic activity and reducing regulatory burdens on the private sector.

increased competitiveness and viability of the Western Australia Tourism industry.

1. Destination Marketing

2. event Tourism

3. industry Development and visitor servicing

This alignment clearly articulates the relationship between the functions and responsibilities of Tourism WA and its strategic plan, as well as overall government goals.

The desired outcome recognises that the value of tourism is more than economic and that the agency is charged with ensuring that the WA tourism industry is competitive and sustainable over the long term.

1.3.2 cHAnGes To ouTcoMe BAseD MAnAGeMenT frAMeWorK

Tourism WA’s outcome-based management framework did not change for 2010-11.

During 2011, Tourism WA’s Key Performance indicators (KPis) for 2011-12 were revised to better align with the agency’s new strategic direction. These new indicators were published in the 2011-12 state Budget and will be reported in the 2011-12 Annual report.

1.3.3 sHAreD resPonsiBiliTies WiTH oTHer AGencies

Tourism WA does not share any statutory responsibilities with other agencies.

The agency participates in a range of significant state and commonwealth initiatives coordinated by other agencies, including the Perth Airport Advisory Board, Kimberley science and conservation strategy, commonwealth Heads of Government Meeting state steering committee, Perth Waterfront Taskforce, the national long-Term Tourism strategy, Kimberley regional Planning committee and Gascoyne regional Planning committee.

Tourism WA’s role in these and other cross-agency groups is to provide advice to maximise tourism outcomes and ensure that tourism is a major consideration in government policy, planning and development processes.

Tourism WA works closely with a range of commonwealth and state government agencies including the Department of resources, energy and Tourism (commonwealth), Tourism Australia (commonwealth), Department of the Premier and cabinet, Department of regional Development and lands, Department of environment and conservation, Department of Planning, landcorp, small Business Development corporation, regional Development commissions and others to achieve cross-government coordination of tourism initiatives.

Tourism WA also contributed to cross-agency initiatives such as managing future staffing needs, promoting and managing equity and diversity, promoting ethical conduct and participating in corporate services reform.


14

estimated $23 of visitor expenditure from each dollar invested by Tourism WA.

• undertook an events marketing campaign to raise awareness that there is always something on in our extraordinary state; developing www.westernaustralia.com/events and increasing the listing of events from 100 to more than 500 events.

• Worked in partnership with Tourism Australia on the ‘no leave no life’ campaign which included the channel 7 series ‘no leave no life’, showcasing WA’s south West region to a national audience of more than 750,000.

International marketing campaigns• Hosted 100 of Germany’s top selling travel agents

to visit various parts of WA, followed by a two-day training workshop in esperance.

• undertook a consumer campaign in new Zealand - ‘experience WA’s Top 5’ - with trade partner House of Travel and support from WA’s regional Tourism organisations. A competition run in conjunction with the campaign attracted more than 19,000 entries and more than 10,000 visitors to the WA pages of the House of Travel website.

• successfully undertook a wildflower campaign in Japan in partnership with Qantas and nine travel wholesalers. The campaign exceeded all booking targets, generating over 1,300 travellers and a return on investment of $97 into the WA economy for every $1 invested by Tourism WA. A media familiarisation visit conducted during the wildflower season generated more than $4 million in media coverage (estimated advertising value).

• implemented a highly successful integrated brand and tactical campaign in singapore. four of singapore’s leading travel agents partnered in the campaign, which used testimonials and pictures of the singaporean winners from the extraordinary Taxi ride in a series of advertisements through print, radio and online media over two campaign phases. The campaign generated over 1200 travellers and a return on investment of $17 into the WA economy for every $1 invested by Tourism WA.

• Partnered with singapore Airlines in the uK to activate a radio and online campaign. The campaign’s microsites received nearly 13,000 unique visitors and the radio campaign received a significant 1.1 million radio reach.

2.1 rePorT on oPerATions

DesTinATion MArKeTinG The Marketing Division’s strategic objective is to make Western Australia the holiday destination of choice for target consumer groups and to advance consumers from ‘awareness’ through ‘consideration’ to ‘purchase’.

This division strives to establish the experience extraordinary brand proposition with prospective visitors and focuses on domestic and short-haul markets, growth markets, and supporting existing aviation access and future growth in aviation routes.

Major destination marketing achievements 2009-2010in 2010-11 the Marketing Division has further established and extended the brand positioning of ‘experience extraordinary’ beyond tourism to the state, with ‘extraordinary Western Australia’ being used by other government departments and for the commonwealth Heads of Government Meeting.

Domestic marketing campaignsThe marketing strategy relies on three elements working together to generate visitors to Western Australia:

1. Brand marketing – showcasing WA as a holiday destination with extraordinary experiences that cannot be found anywhere else in Australia or the world, to inspire people to visit.

2. events marketing – promoting events to communicate that there is always something on in our extraordinary state, to convert people who ‘intend to visit sometime’ to visitors who want to come ‘now’.

3. cooperative marketing – working with the tourism industry to provide specific product and price packages, to generate bookings.

in the domestic market in 2010-11 Tourism WA:

• conducted a $7.8 million domestic marketing campaign which incorporated the personal experiences and stories of the passengers on the ‘extraordinary Taxi ride’ journey. it featured testimonials, film and image content generated during the extraordinary Taxi ride campaign. The return on investment from brand marketing was an estimated $15 of visitor expenditure from each dollar invested by Tourism WA. The return on investment from cooperative (partnership) marketing was an

2.0 AGency PerforMAnce


15

– 2012 society of Petroleum engineers international conference on Health, safety and environment in oil and Gas exploration and Production.

– energising south-east Asia 2012 conference.

– 2012 society of Petroleum engineers Asia-Pacific oil and Gas conference and exhibition.

– 2012 Australasian fire and emergency service Authorities council – Bushfire crc Annual conference.

– 2012 World federation of chiropractic education conference.

– iconn 2012 - international conference on nanoscience and nanotechnology.

• in 2010-11, PcB also attracted 66 corporate meetings and incentive travel groups, representing an estimated $11.9 million in direct delegate expenditure from an anticipated 5,271participants.

Public relations• Tourism WA achieved $70 million worth of

estimated advertising value through public relations activities worldwide during 2010-11, exceeding the target of $61 million. More than $18 million was achieved in the domestic market alone (a record high) aided by the success of the Masterchef Tv show opportunities.

• Western Australia hosted the filming of a very successful Malaysian television drama, ‘Awan Dania’, generating a record media exposure value of $4.38 million. WA was featured in seven of 26 episodes with a further three repeat broadcasts expected in 2011-12.

Digital marketing• launched the experience extraordinary Western

Australia facebook page, attracting a community of 21,000 customers and advocates in the first four months of operation.

• launched the experience extraordinary Western Australia youTube channel, generating 77,025 views of extraordinary trip films in the first four months of operation. social media activity has strengthened Tourism WA’s digital footprint and awareness of www.westernaustralia.com which received more than 2.1 million unique visitors in 2010-11.

Partnerships• secured a record $9.38 million in cooperative

partnership contributions from the tourism industry. This was more than double the $4.1 million achieved in 2009-10.

• established a successful cooperative partnership with the outback steakhouse family restaurant chain in Korea. WA became the backdrop for outback’s multi-million dollar advertising campaign in Korea, which provided extensive and valuable exposure for the state.

• Worked in partnership with other government departments to lead the development and common branding ‘extraordinary Western Australia’, which will be used for the upcoming commonwealth Heads of Government Meeting 2011 to be hosted in Perth.

• entered into a new marketing and services agreement with the Western Australian indigenous Tourism operators council (WAiToc) to promote Aboriginal tourism through marketing, advocacy, encouraging partnerships and networking. This is supported by funding from royalties for regions.

• completed and launched the Making a Difference: Aboriginal Tourism strategy for Western Australia 2011–2015, which is being implemented by a steering committee chaired by WAiToc, with support from Tourism WA, the small Business Development corporation and the Department of indigenous Affairs.

Convention and incentive travelThe Perth convention Bureau (PcB) is contracted by Tourism WA to accelerate the growth of conventions, corporate meetings, exhibitions and incentive travel groups (business events). in 2010-11 the PcB received $3.4 million in funding from Tourism WA. The PcB aims to position WA as a premium destination for large-scale business events with an increased focus on bidding for, and supporting the attraction of, national and international conventions.

• in 2010-11, PcB secured 89 international and national association business events worth an estimated $75.66 million in direct delegate expenditure from an anticipated 42,622 participants. These events include several large-scale business events of more than 900 people, such as:

– 2016 18th international conference and exhibition on liquefied natural Gas (lnG 18).

– 2015 Alzheimers Disease international conference.


16

• continued the ‘always on’ search marketing strategy, increasing referrals from search engines by 29 per cent to reach 2.3 million searches that resulted in a visit to www.westernaustralia.com.

• improved digital share of voice to 7.86 per cent; moving from fifth to fourth highest share of voice among all state Tourism organisations.

Transition arrangementsin line with migration to the agency’s new strategic direction, the Marketing Division managed the transition of the following projects:

• reviewed and restructured the WA familiarisations unit, establishing a panel of famil contractors to co-deliver Tourism WA’s media and trade famils program.

• Awarded six international marketing agency contracts to provide a range of integrated marketing services, strategic and creative expertise, and agency trade representation in the united Kingdom, Germany, singapore, Malaysia, new Zealand and south Korea.

evenT TourisMeventscorp makes a significant contribution to the state eventscorp makes a significant contribution to the state’s tourism industry by securing and developing major and regional events. its key functions are to:

• Build a diverse calendar of events across the state for future years, including major international events and Western Australian-owned events.

• Greatly expand the calendar of events and elevate current events across regional Western Australia through a regional events program.

• Develop corporate and strategic partnerships.

results of events Hosted in 2010/11• in 2010/11 eventscorp hosted a total of 48 major

events across the state. some of these included the v8 supercars Trading Post Perth challenge, Argyle Diamonds ord valley Muster, Telstra Drug Aware Pro Margaret river, Hyundai Hopman cup XXiii and sculpture by the sea cottesloe, lancelin ocean classic, Anaconda Adventure race Augusta, the Doctor surf ski World cup, the Avon Descent, the Busselton Jetty swim, ironman 70.3 Busselton, the revelation film festival and the youyi Games.

• outstanding results were achieved at a number of events, including a sell-out crowd at the WAcA for the Third Test of the Ashes series.

• The Hyundai Hopman cup XXiii was the most successful ever in terms of spectators and television viewers, with five Grand slam champions attracting more than 78,000 spectators and an estimated 3.65 million television viewers across Australia (increase of one million viewers on 2009/10).

• An estimated 215,000 people visited cottesloe to view the 76 sculptures on display at the 2011 sculpture by the sea cottesloe exhibition, an increase of 75,000 from the 2009/10 event.

• securing surfer Kelly slater (10 times and current World champion) for the 2011 Telstra Drug Aware Pro Margaret river was a highlight of the event calendar, attracting the largest ever number of spectators (approximately 21,500). in addition, live web-streaming viewership from around the world was a record for any World Qualifying surfing event.

• Assisted the Perth fashion festival organisers in securing world renowned photographer, russell James, to the seven-day festival which attracted an audience of more than 43,000 and was covered by fashion Tv on its global 24 hour/7 day Tv network.

• The Australian university Games attracted an estimated 4,900 visitors to the state and 35,000 visitor nights, generating more than $7 million in economic impact.

• similarly, the 2010 Anaconda Adventure race proved highly popular and sold out months in advance with more than 1,700 entrants participating.

• Worked with the WA sporting car club and v8 supercars Australia to deliver the return of the v8 supercars Trading Post Perth challenge to WA. This three-day event attracted more than 43,000 attendees.

• Among many other successful events supported across the state, eventscorp also sponsored the inaugural uci World cycling Tour series in 2010/11. The event was launched in Perth and staged through the city and Kings Park, with a time trial held on rottnest island. Perth was the first city to host this new annual concept developed by the sport’s governing body (union cycliste internationale). The organisers, together with eventscorp, are looking to build the event over the coming years to become a significant, mass participation tourism cycling event for Australia.


17

• unfortunately, the red Bull Air race was cancelled worldwide for 2011 while the organisers conduct a full scale review of the event.

Development of future events• During 2010/11 eventscorp supported 39 regional

events which will take place in 2011/12. These events were supported through the regional events scheme with the assistance of funds obtained from the Department of regional Development and lands royalties for regions.

• Major events secured for future years in Perth include the international super series Hockey Tournament, a fixture of the Holden netball Test series (international), Perth Glory vs celtic, the clipper round the World yacht race, 1st World Junior Men’s and Women’s Water Polo, and 2012 Australian short course swimming championships.

• The agency is already making progress in securing new events for the state with the help of new funding approved in the 2011-12 state Budget, including the nutri-Grain ironman series / indian ocean classic, Top Gear live and BHP Aquatics super series.

infrAsTrucTure AnD invesTMenTThe infrastructure and investment Division facilitates strategic tourism infrastructure and development opportunities in key geographic areas and industry sectors. its focus is on achieving the greatest impact on the agency’s objective of doubling tourism visitor spending by 2020.

Key geographic regions of focus for the division are Perth, the Kimberley, ningaloo reef and the south West. focus is placed on aviation access, attracting inward investment and associated planning and policy settings, cruising, accommodation and caravan and camping infrastructure that deliver the needs of key target markets. Tourism development priorities across the state are facilitated between relevant government agencies and the private sector to bring them to fruition.

Key programs managed by the division include landbank and naturebank, which aim to release land for accommodation and undertake due diligence required to make sites ready for release. naturebank is a partnership with the Department of environment and conservation to release land in the conservation estate for low impact accommodation.

Major achievementsAviation• negotiated an agreement with china southern

Airlines in May 2011 resulting in direct flights between china and Perth from november 2011.

• established a Memorandum of understanding with Jetstar in August 2010 for the period of December 1, 2010 – June 30, 2013, collaborating and jointly developing and promoting interstate tourism to Western Australia on Jetstar services. Jetstar has since expanded existing key services to Perth from sydney and Melbourne, and added two new direct routes from the Gold coast and Brisbane. A $1 million cooperative marketing campaign was conducted in 2010-11 by Tourism WA and Jetstar in support of this expansion.

• signed a Memorandum of understanding with singapore Airlines (siA) in July 2010 for the period of July 1, 2010 – June 30, 2013, collaborating globally and jointly developing and promoting tourism to Western Australia on siA services. five campaigns have been run across three countries: Germany, singapore and china, at a cost of $260,000.

• represented Tourism WA on the steering committee for the Busselton regional Airport development project, which has received in-principle support from the WA Government to expand and upgrade the airport infrastructure to accommodate future interstate and international flights. Additional studies are underway and will determine eventual funding for this project.

• represented Tourism WA in the federal Tourism Access Working Group led by federal Department of resources, energy and Tourism, to progress Australia’s aviation access priorities.

Landbank• As a member of the Perth Waterfront Taskforce,

provided research and guidance on the inclusion of new hotel sites in the project area.

• investigated the potential for hotel conversion of a cBD Government owned property.

• Provided ongoing assistance and input into the rottnest island Authority on the longreach Bay hotel project.


18

• completed a feasibility study for the establishment of a new caravan park in Broome and progression of site assembly in partnership with the shire of Broome.

• commenced a feasibility study on a new caravan park site in lancelin in partnership with the Department of regional Development and lands.

• input into a revised structure plan to address investment viability issues resulting from an unsuccessful expressions of interest process for the Albany Waterfront.

Naturebankin conjunction with the Department of environment and conservation, the naturebank program further progressed eight naturebank sites through the stages of site identification, land assembly due diligence and site release. Key achievements in 2010-11 include:

• The announcement of the preferred proponent for the Kurrajong site within the Purnululu national Park and the expressions of interest release for the Mt Hart Wilderness lodge in the West Kimberley.

• substantial land assembly due diligence work was undertaken on the francois Peron national Park (shark Bay) and the ngamoowalem conservation Park (east Kimberley) sites.

• commenced land assembly processes on the cape le Grand (esperance) site.

Investment attraction• Conducted comprehensive assessment of current

hotel room supply shortages and preparation of policy responses for consideration by Government.

• conducted or facilitated five outbound missions to coincide with federal investment conferences (investment and regulatory reform Working Group and Tourism Task force).

• Hosted 16 inbound missions from singapore, Malaysia, Thailand, Dubai, china and india.

• Attended two major sponsored events - the MiPiM Asia Property Market in Hong Kong and the

Australia, new Zealand and Pacific Hotel industry conference in sydney - in partnership with three other government agencies.

• Partnered with the Department of state Development to develop initiatives for investment promotion at the commonwealth Heads of Government Meeting Business forum.

• Partnered with the Department of Planning and WA Planning commission to promote hotel development in the Perth Waterfront project, in both inbound and outbound investment initiatives.

• Promoted two naturebank sites (Purnululu and Mt Hart) to national and international markets and sought equity providers for one landbank project (rottnest island).

Tourism planning• Provided ongoing comment to the Department of

Planning on the drafting of the revised Planning Bulletin 83.

• Provided feedback on the Tourism and Transport forum’s national Tourism Planning Guide.

• represented tourism interests on the Kimberley and Gascoyne regional Planning committees, responsible for guiding land use planning and identifying priority regional infrastructure projects to facilitate economic and population growth in their regions.

Transition projects:in line with migration to the agency’s new strategic direction, the transition of the following projects was managed by the infrastructure and investment Division:

• Transition of the responsibility for Aboriginal tourism development and mainstream tourism business development advice to the small Business Development Corporation, with staff and project resources.

• Implementation of the $800,000 tourism capacity building fund, providing regional Development commissions with the opportunity to secure funds to progress tourism related initiatives.


19

2.2 finAnciAl TArGeTs2010-11

Target $’000

2010-11 Actual $’000

Variation $’000

Total cost of services 67,210 64,321 2,889

net cost of service (see statement of comprehensive income) 62,081 60,480 1,601

Total equity (see statement of financial Position) 4,859 5,771 -912

net increase/(Decrease) in cash Held (see statement of cash flows) 109 2,651 -2,542

full-Time equivalent (fTe) staff level 125 98 27

ToTAl cosT of services

Approved expense limit 67,210

Plus approved adjustments 24

v8 supercars 950

cHoGM Marketing & Promotion 200

Australian Tourism exchange 150

shared services roll-in 162

A Day in Pompeii -670

red Bull Air race -2,160

Adjusted Expense Limit 65,866

vAriAnce AnAlysissignificant variations between target and actual result are shown below. significant variations are considered to be those greater than $500,000.

ToTAl cosT of servicesThe variance between the Actual Total cost of services and the Adjusted expense limit ($1,545,000) is due to unexpended amounts relating to the agency transition to the new model ($550,000) and changes in the timing of isAf expenditure ($260,000).

neT cosT of servicesThe variance in net cost of services is the result of funding decisions by Government and the variances detailed under the Total cost of services.

ToTAl eQuiTyThe variance in equity is predominantly due to decreases in employee provisions as a result of the restructure.

neT increAse/(DecreAse) in cAsH HelD The variance in net increase/(decrease) in cash held is a result of delays in payments and reflected in the high Payables balance.

full TiMe eQuivAlenT (fTe) sTAff level The reduction in staff is attributed to attrition and redundancies taken up following the agency’s adoption of a new business model.


20

2.3 Key PerforMAnce inDicATorsin 2007, Tourism WA reviewed its strategic direction, delivering a new strategic Plan 2008 to 2013 – Building for the future. Key performance indicators (KPis) were developed and agreed by Government as part of this process. This is the third year of measurement of the KPis. More details on these can be found in section 4.2 of this report. The KPis provide an indication of whether Tourism WA has achieved its targeted outcomes. Below is a summary of Tourism WA’s performance against targets.

Key effecTiveness inDicATors

2010-11

Target2010-11

Actual

Outcome

Outcome sought: Increased competitiveness and viability of the Western Australian tourism industry

Percentage of visitors whose expectations were met or exceeded upon visiting Western Australia (competitiveness)

90% 96% Achieved

visitor expenditure in WA grows faster than the national average

WA growth in spend > national

average

+4.3% vs national average of -0.1%

Achieved

Visitor expenditure in WA grows faster than the total WA visitor numbers

WA growth in visitor expenditure

> growth in WA visitor numbers

+4.3% vs WA visitor number growth +3.9%

Achieved

Broader business community agree that tourism enhances the unique WA lifestyle

80% 92% Achieved

Broader business community agree that tourism supports the natural environment

80% 92% Achieved

Key efficiency inDicATors

2010-11

Target2010-11

Actual

Outcome

ratio of Tourism WA marketing spend to visitor spend $1 : $130.19 $1 : $165.58 Achieved

ratio of Tourism WA event spend to the value of direct expenditure and media impact generated by events (current year)

$1 : $3.36 $1 : $3.46 Achieved

Total cost of industry development as compared to percentage of visitor satisfaction

$95,511 per % of visitor satisfaction


Achieved


21

• Tourism is an industry that makes a substantial contribution to the Western Australian economy, particularly in regional areas. The most recent statistics indicate that the WA tourism industry generates more than 73,000 jobs and injects $5.4 billion (directly and indirectly) into the Western Australian economy.1 During year ending March 2011, all classes of visitors, including day-trippers, directly contributed around $6 billion to the state’s economy.2

• While outbound travel growth remains an ongoing challenge for tourism in WA, intrastate travel showed early signs of recovery in the first quarter of 2011. West Australians made 4.1 million intrastate overnight trips and 12.2 million day trips, spending $3.07 billion within the state ($1.89 billion from overnight visitors) for the year ending March 2011.

• international visitor spend grew by 9.5 per cent in year ending March 2011, equating to 706,600 visitors spending $1.9 billion.

• interstate travel to Western Australia has remained steady over the year ending March 2011; with over 1 million visitors and $926 million in expenditure2.

• The tourism environment is particularly challenging at the current time due to a number of factors, including increased competition not only from other tourism destinations, but also for the consumer’s general share of discretionary spending. The perception of the effort required for a WA holiday and what it offers in return is currently an uneven equation in the consumer’s mind. The agency continues to try and affect this perception, largely through brand positioning ‘experience extraordinary’ and other marketing activities, including working with the trade to present compelling travel offers for WA.

• The cluttered media environment is a key challenge and, with relatively small budgets in comparison to competitors and other consumer goods categories, the agency’s marketing efforts need to work even harder to stand out in both international and domestic markets.

• similarly, the escalating costs of securing major events is an issue. increased competition, particularly in developing countries but also victoria, nsW and Queensland, has pushed events fees and costs so high that desirable events (such as world championships for major sports) may no longer be feasible for WA to bid for. for this reason Tourism WA (evenscorp) is actively working on development events for the calendar that would be anchored in WA and would grow over time.

• A major issue in relation to the domestic market is the strong Australian dollar and the relative wealth of the West Australian market. This is leading to high amounts of outbound travel, particularly to Bali.

• renewed concern about the levels of public debt and high unemployment in europe and the usA is hitting consumer confidence in these source markets hard. Travel is either being cancelled or delayed, while consumers who are travelling are more likely to consider short haul destinations. conversely growth is occurring in developing economies, which should translate to continued travel from shorter haul Asian markets.

• international Air Transport Association forecasts indicate that by 2014 there will be 3.3 billion air travellers globally, up by 800 million from 2.5 billion in 2009. With 56 million outbound travellers in 2010, china will be the biggest contributor of new travellers. Tourism WA will significantly increase its investment in the china market via a strategy comprising five key elements - aviation development (direct flights); consumer marketing; trade development; working with the WA tourism industry; and partnerships with other government agencies and the private sector.

• Tourism WA is focused on three aviation areas - pursuing direct services from china; facilitating Broome international Airport as a gateway to Australia’s north West; and ensuring Busselton regional Airport becomes an interstate, and eventually international, route for travellers to visit the south West.

• Tourism WA will expand Western Australia’s events calendar with a significant increase in funding over the next four years. An additional $5 million each year will enable eventscorp to attract and develop new sporting, arts, cultural and uniquely WA events in Perth.

3.0 siGnificAnT issues iMPAcTinG THe AGency

1 Tourism satellite Account 2008-09

2 international and national visitor survey year ending March 2011


22

• events in regional Western Australia will receive a significant boost with an additional $10 million per year for four years through royalties for regions funding. new events will be developed and held in regional areas and the existing regional events scheme will be bolstered. A number of existing events will also be enhanced.

• A key focus of Tourism WA in 2011-12 will be to monitor, participate in and/or implement priority tourism development projects that will significantly enhance the experience and growth of sustainable tourism in the state.

• The Perth Waterfront project has progressed and Tourism WA will continue to advocate for the inclusion of a large high quality hotel(s). opportunities for new eco-accommodation in nature-based tourism continue to be progressed in partnership with the Department of environment and conservation through the naturebank program following the release of the first site at Kurrajong in 2010. new sites in the Kimberley and shark Bay regions will be progressed in 2011.

• Tourism WA will be actively involved in the

Kimberley science and conservation strategy to implement four dedicated tourism initiatives, including enhancement of Aboriginal tourism experiences, an aerial highway product and the development of tourism corridors and 4WD trails.

• indigenous tourism is an experience that visitors to Western Australia are seeking. Making a Difference: Aboriginal Tourism strategy for Western Australia 2011–2015 outlines a collaborative approach to the ongoing development of a sustainable Aboriginal tourism industry in Western Australia. Key actions include marketing, industry support and capacity building, development of quality product, and education and training initiatives. Tourism WA will oversee the implementation of this strategy, which requires input from state and commonwealth government agencies to achieve intended outcomes.

changes in written lawno changes in any written law directly affecting Tourism WA were recorded in 2010-11.


23

KATe lAMonTCHAIRMAN

12 september 2011

Al DonAlD COMMISSIONER

11 september 2011

leAnne folloWs CHIEF FINANCIAL OFFICER

12 september 2011

4.0 Disclosures AnD leGAl coMPliAnce

4.1 finAnciAl sTATeMenTs

certification of financial statements for the year ended 30 June 2011

The accompanying financial statements of the Western Australian Tourism commission (operating as Tourism WA) have been prepared in compliance with the provisions of the financial Management Act 2006 from proper accounts and records to present fairly the financial transactions for the financial year ended 30 June 2011 and the financial position as at 30 June 2011.

At the date of signing we are not aware of any circumstances which would render the particulars included in the financial statements misleading or inaccurate.


24

INDEPENDENT AUDIT OPINION

To the Parliament of Western Australia

WESTERN AUSTRALIAN TOURISM COMMISSION

Report on the Financial StatementsI have audited the accounts and financial statements of the Western Australian Tourism Commission.

The financial statements comprise the Statement of Financial Position as at 30 June 2011, the Statement of Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and Notes comprising a summary of significant accounting policies and other explanatory information.

Board’s Responsibility for the Financial StatementsThe Board is responsible for keeping proper accounts, and the preparation and fair presentation of the financial statements in accordance with Australian Accounting Standards and the Treasurer’s Instructions, and for such internal control as the Board determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s ResponsibilityAs required by the Auditor General Act 2006, my responsibility is to express an opinion on the financial statements based on my audit. The audit was conducted in accordance with Australian Auditing Standards. Those Standards require compliance with relevant ethical requirements relating to audit engagements and that the audit be planned and performed to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Commission’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by the Board, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion.

OpinionIn my opinion, the financial statements are based on proper accounts and present fairly, in all material respects, the financial position of the Western Australian Tourism Commission at 30 June 2011 and its financial performance and cash flows for the year then ended. They are in accordance with Australian Accounting Standards and the Treasurer’s Instructions.

4th Floor Dumas House 2 Havelock Street West Perth 6005 Western Australia Tel: 08 9222 7500 Fax: 08 9322 5664

Page 1 of 2


25

Report on ControlsI have audited the controls exercised by the Western Australian Tourism Commission. The Board is responsible for ensuring that adequate control is maintained over the receipt, expenditure and investment of money, the acquisition and disposal of public and other property, and the incurring of liabilities in accordance with the Financial Management Act 2006 and the Treasurer’s Instructions, and other relevant written law.

As required by the Auditor General Act 2006, my responsibility is to express an opinion on the controls exercised by the Board based on my audit conducted in accordance with Australian Auditing Standards.

OpinionIn my opinion, the controls exercised by the Western Australian Tourism Commission are sufficiently adequate to provide reasonable assurance that the receipt, expenditure and investment of money, the acquisition and disposal of property, and the incurring of liabilities have been in accordance with legislative provisions.

Report on the Key Performance IndicatorsI have audited the key performance indicators of the Western Australian Tourism Commission. The Board is responsible for the preparation and fair presentation of the key performance indicators in accordance with the Financial Management Act 2006 and the Treasurer’s Instructions.

As required by the Auditor General Act 2006, my responsibility is to express an opinion on the key performance indicators based on my audit conducted in accordance with Australian Auditing Standards.

OpinionIn my opinion, the key performance indicators of the Western Australian Tourism Commission are relevant and appropriate to assist users to assess the Commission’s performance and fairly represent indicated performance for the year ended 30 June 2011.

IndependenceIn conducting this audit, I have complied with the independence requirements of the Auditor General Act 2006 and the Australian Auditing Standards, and other relevant ethical requirements.

Colin Murphy AuDiTor GEnErAl 16 September 2011

Page 2 of 2


26

sTATeMenT of coMPreHensive incoMe for THe yeAr enDeD 30 June 2011

Note 2011 2010$’000 $’000

COST OF SERVICES

Expensesemployee benefits expense 6 12,298 16,170supplies and services 7 19,195 15,741Depreciation and amortisation expense 8 1,018 1,368Accommodation expenses 9 2,041 2,123Grants and subsidies 10 829 803event operations expenses 11 16,800 15,390Advertising and promotion expenses 12 11,511 11,562other expenses 13 629 355

Total cost of services 64,321 63,512IncomeRevenue

user charges and fees 14 204 264commonwealth grants and contributions 15 2,017 3,032interest revenue 16 344 357other revenue 17 1,276 1,641

Total Revenue 3,841 5,294

Total income other than income from State Government

3,841 5,294

NET COST OF SERVICES 60,480 58,218

Income from State Government 18service appropriation 59,572 58,062resources received free-of-charge 147 136royalties for regions fund 330 -

Total income from State Government 60,049 58,198

SURPLUS/(DEFICIT) FOR THE PERIOD (431) (20)

OTHER COMPREHENSIVE INCOMEchanges in asset revaluation surplus 29 - 87Gains/(losses) recognised directly in equity - -

Total other comprehensive income - 87

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD (431) 67

see also note 41 ‘schedule of income and expenses by service’.

The statement of comprehensive income should be read in conjunction with the accompanying notes.


27

sTATeMenT of finAnciAl PosiTionfor THe yeAr enDeD 30 June 2011

Note 2011 2010 $’000 $’000

ASSETSCurrent Assetscash and cash equivalents 30 6,883 4,232receivables 19 1,004 1,097Prepayments 20 470 1,269Amounts receivable for services 21 475 475other current assets 22 - 264Total Current Assets 8,832 7,337

Non-Current AssetsAmounts receivable for services 21 5,071 4,704Property, plant and equipment 23 1,088 1,401intangible assets 24 552 876other non-current assets 22 170 172Total Non-Current Assets 6,881 7,153ToTAl AsseTs 15,713 14,490

liABiliTiesCurrent LiabilitiesPayables 26 6,459 3,044Provisions 27 2,124 2,541other current liabilities 28 530 1,601Total Current Liabilities 9,113 7,186

Non-Current LiabilitiesProvisions 27 566 682other non-current liabilities 28 263 420Total Non-Current Liabilities 829 1,102

ToTAl liABiliTies 9,942 8,288NET ASSETS 5,771 6,202

EQUITY 29contributed equity 6,779 6,779Reserves 2,010 2,010Accumulated surplus/(deficit) (3,018) (2,587)TOTAL EQUITY 5,771 6,202

The statement of financial Position should be read in conjunction with the accompanying notes.


28

sTATeMenT of cHAnGes in eQuiTy for THe yeAr enDeD 30 June 2011

Note Contributed Equity

Reserves Accumulated Surplus/(Deficit)

Total Equity

$’000 $’000 $’000 $’000Balance at 1 July 2009 29 6,807 1,923 (2,567) 6,163

changes in accounting policy or correction of prior period errors

- - - -

Restated balance at 1 July 2009

6,807 1,923 (2,567) 6,163

Total comprehensive income for the year

- 87 (20) 67

Transactions with owners in their capacity as owners:

capital appropriations 272 - - 272other contributions by owners - - - - Distributions to owners (300) - - (300)

Total (28) - - (28) Balance at 30 June 2010 6,779 2,010 (2,587) 6,202

Balance at 1 July 2010 6,779 2,010 (2,587) 6,202Total comprehensive income for the year

- - (431) (431)

Transactions with owners in their capacity as owners:

- - - -

capital appropriations - - - -other contributions by owners - - - -Distribution to owners - - - -

Total - - (431) (431)Balance at 30 June 2011 6,779 2,010 (3,018) 5, 771

The statement of changes in equity should be read in conjunction with the accompanying notes.


29

sTATeMenT of cAsH floWs for THe yeAr enDeD 30 June 2011

Note 2011 2010 $’000 $’000

CASH FLOWS FROM STATE GOVERNMENTservice appropriation 58,730 56,748capital appropriation - 272Holding account drawdowns 475 475royalties for regions fund 330 -Net cash provided by State Government 59,535 57,495

utilised as follows:

CASH FLOWS FROM OPERATING ACTIVITIESPaymentsemployee benefits (13,801) (15,650)supplies and services (16,682) (16,232)Accommodation (2,126) (2,182)Grants and subsidies (486) (944)GsT payments on purchases (4,611) (4,264)GsT payments to taxation authority (267) (263)event operations payments (17,381) (14,818)Advertising and promotion payments (9,762) (11,329)other payments (795) (324)

Receiptsuser charges and fees 172 131commonwealth grants and contributions 2,017 3,030interest received 365 330GsT receipts on sales 620 143GsT receipts from taxation authority 4,613 3,737other receipts 1,376 1,618Net cash provided by/(used in) operating activities 30 (56,748) (57,017)

CASH FLOWS FROM INVESTING ACTIVITIESPayments

Purchase of non-current physical assets (139) (197)Receipts

Proceeds from sale of non-current physical assets 3 1Net cash provided by/(used in) investing activities (136) (196)

Net increase/(decrease) in cash and cash equivalents 2,651 282Cash and cash equivalents at the beginning of period 4,232 3,950

CASH AND CASH EQUIVALENTS AT THE END OF PERIOD 30 6,883 4,232

The statement of cash flows should be read in conjunction with the accompanying notes.


30

financial statements and take precedence over Australian Accounting standards, the framework, statements of Accounting concepts and other authoritative pronouncements of the Australian Accounting standards Board.

Where modification is required and has had a material or significant financial effect upon the reported results, details of that modification and the resulting financial effect are disclosed in the notes to the financial statements

(b) Basis of Preparation

The financial statements have been prepared on the accrual basis of accounting using the historical cost convention, except for land, buildings and infrastructure which have been measured at fair value.

The accounting policies adopted in the preparation of the financial statements have been consistently applied throughout all periods presented unless otherwise stated.

The financial statements are presented in Australian dollars and all values are rounded to the nearest thousand dollars ($’000).

note 3 ‘Judgements made by management in applying accounting policies’ discloses judgements that have been made in the process of applying the WATc’s accounting policies resulting in the most significant effect on amounts recognised in the financial statements.

note 4 ‘Key sources of estimation uncertainty’ discloses key assumptions made concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

(c) Reporting Entity

The reporting entity comprises the WATc referred to as Tourism WA. There are no related Bodies. see note 37 ‘related Bodies’.

noTes To THe finAnciAl sTATeMenTs for THe yeAr enDeD 30 June 2011

noTe 1. AusTrAliAn AccounTinG sTAnDArDs

GenerAlThe Western Australian Tourism commission’s (WATc) financial statements for the year ended 30 June 2011 have been prepared in accordance with Australian Accounting standards. The term ‘Australian Accounting standards’ includes standards and interpretations issued by the Australian Accounting standards Board (AAsB).

The WATc has adopted any applicable new and revised Australian Accounting standards from their operative dates.

eArly ADoPTion of sTAnDArDsThe WATc cannot early adopt an Australian Accounting standard unless specifically permitted by Treasurer’s instruction (Ti) 1101 Application of Australian Accounting Standards and Other Pronouncements. no Australian Accounting standards that have been issued or amended but not operative have been early adopted by the WATc for the annual reporting period ended 30 June 2011.

noTe 2. suMMAry of siGnificAnT AccounTinG Policies (a) General Statement

The financial statements constitute general purpose financial statements that have been prepared in accordance with Australian Accounting standards, the framework, statements of Accounting concepts and other authoritative pronouncements of the Australian Accounting standards Board as applied by the Treasurer’s instructions. several of these are modified by the Treasurer’s instructions to vary application, disclosure, format and wording.

The Financial Management Act 2006 and the Treasurer’s instructions are legislative provisions governing the preparation of


31

(d) Contributed equity

AAsB interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities requires transfers in the nature of equity contributions, other than as a result of a restructure of administrative arrangements, to be designated by the Government (the owner) as contributions by owners (at the time of, or prior to, transfer) before such transfers can be recognised as equity contributions. capital appropriations have been designated as contributions by owners by Ti 955 Contributions by Owners made to Wholly Owned Public Sector Entities and have been credited directly to contributed equity.

The transfer of net assets to/from other agencies, other than as a result of a restructure of administrative arrangements, are designated as contributions by owners where the transfers are non-discretionary and non-reciprocal.

(e) Income

Revenue recognition revenue is recognised and measured at the fair value of consideration received or receivable. The following specific recognition criteria must also be met before revenue is recognised for the major business activities as follows:

Sale of goods

revenue is recognised from the sale of goods and disposal of other assets when the significant risks and rewards of ownership transfer to the purchaser and can be measured reliably.

Provision of services

revenue is recognised on delivery of the service to the client or by reference to the stage of completion of the transaction.

Interest

revenue is recognised as the interest accrues.

Service Appropriations service Appropriations are recognised as revenues at fair value in the period in which the WATc gains control of the appropriated funds. The WATc gains control of appropriated funds at the time those funds are deposited to the bank account or credited to the ‘Amounts

receivable for services’ (holding account) held at Treasury.

Grants, donations, gifts and other non-reciprocal contributions revenue is recognised at fair value when the WATc obtains control over the assets comprising the contributions, usually when cash is received.

other non-reciprocal contributions that are not contributions by owners are recognised at their fair value. contributions of services are only recognised when a fair value can be reliably determined and the services would be purchased if not donated.

royalties for regions funds are recognised as revenue at fair value in the period in which the WATc obtains control over the funds. The WATc obtains control of the funds at the time the funds are deposited into the WATc’s bank account.

Gains realised and unrealised gains are usually recognised on a net basis. These include gains arising on the disposal of non current assets and some revaluations of non current assets.

(f) Property, Plant and Equipment

Capitalisation/Expensing of assetsitems of property, plant and equipment and infrastructure costing $5,000 or more are recognised as assets and the cost of utilising assets is expensed (depreciated) over their useful lives. items of property, plant and equipment and infrastructure costing less than $5,000 are immediately expensed direct to the statement of comprehensive income (other than where they form part of a group of similar items which are significant in total).

Initial recognition and measurement Property, plant and equipment and infrastructure are initially recognised at cost.

for items of property, plant and equipment and infrastructure acquired at no cost or for nominal cost, the cost is the fair value at the date of acquisition.


32

‘Property, plant and equipment’ and valued at market value. independent valuations are obtained every 3 to 5 years.

When infrastructure is revalued, the accumulated depreciation is restated proportionately with the change in the gross carrying amount of the asset so that the carrying amount of the asset after revaluation equals its revalued amount.

The most significant assumptions in estimating fair value are made in assessing whether to apply the existing use basis to assets and in determining estimated useful life. Professional judgement by the valuer is required where the evidence does not provide a clear distinction between market-type assets and existing-use assets.

Derecognitionupon disposal or derecognition of an item of property, plant and equipment and infrastructure, any revaluation surplus relating to that asset is retained in the asset revaluation surplus.

Asset Revaluation Reserve

The asset revaluation surplus is used to record increments and decrements on the revaluation of non-current assets as described in note 23 ‘Property, plant and equipment’.

Depreciation

All non-current assets having a limited useful life are systematically depreciated over their estimated useful lives in a manner that reflects the consumption of their future economic benefits.

land is not depreciated. Depreciation on other assets is calculated using the straight-line method, using rates which are reviewed annually. estimated useful lives for each class of depreciable asset are:

furniture, fittings and equipment 5–10 years computer equipment 3–5 years leasehold improvements Term of lease

(g) Intangible Assets

Capitalisation/Expensing of assetsAcquisitions of intangible assets costing

noTes To THe finAnciAl sTATeMenTsfor THe yeAr enDeD 30 June 2011 Subsequent measurement

subsequent to initial recognition as an asset, the revaluation model is used for the measurement of land, buildings and infrastructure and historical cost for all other property, plant and equipment. land, buildings and infrastructure are carried at fair value less accumulated depreciation (buildings and infrastructure only) and accumulated impairment losses. All other items of property, plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses.

Where market-based evidence is available, the fair value of land and buildings is determined on the basis of current market buying values determined by reference to recent market transactions. When buildings are revalued by reference to recent market transactions, the accumulated depreciation is eliminated against the gross carrying amount of the asset and the net amount restated to the revalued amount.

in the absence of market-based evidence, fair value of land and buildings is determined on the basis of existing use. This normally applies where buildings are specialised or where land use is restricted. fair value for existing-use assets is determined by reference to the cost of replacing the remaining future economic benefits embodied in the asset, i.e. the depreciated replacement cost. Where the fair value of buildings is determined on the depreciated replacement cost basis, the gross carrying amount and the accumulated depreciation are restated proportionately.

land and buildings are independently valued annually by the Western Australian land information Authority (valuation services) and recognised annually to ensure that the carrying amount does not differ materially from the asset’s fair value at the end of the reporting period.

fair value of infrastructure has been determined by reference to the depreciated replacement cost (existing-use basis) as the assets are specialised and no market-based evidence of value is available. land under infrastructure is included in land reported under note 23


33

$5,000 or more and internally generated intangible assets costing $50,000 or more are capitalised. The cost of utilising the assets is expensed (amortised) over their useful life. costs incurred below these thresholds are immediately expensed directly to the statement of comprehensive income.

All acquired and internally developed intangible assets are initially recognised at cost. for assets acquired at no cost or for nominal cost, the cost is their fair value at the date of acquisition.

The cost model is applied for subsequent measurement requiring the asset to be carried at cost less any accumulated amortisation and accumulated impairment losses.

Amortisation for intangible assets with finite useful lives is calculated for the period of the expected benefit (estimated useful life which is reviewed annually) on the straight-line basis. All intangible assets controlled by the WATc have a finite useful life and zero residual value.

The expected useful lives for each class of intangible asset are:

Develoment costs 3–5 yearssoftware (a) 3–5 years Website costs 3–5 years

(a) software which is not integral to the operation of any

related hardware.

Development costs research costs are expensed as incurred. Development costs incurred for an individual project are carried forward when the future recoverability can reasonably be regarded as assured and the total project costs are likely to exceed $50,000. other development costs are expensed as incurred.

Computer Software software that is an integral part of the related hardware is recognised as property, plant and equipment. software that is not an integral part of the related hardware is recognised as an intangible asset. software costing less than $5,000 is expensed in the year of acquisition.

Website costs Website costs are charged as expenses when they are incurred unless they relate to the

acquisition or development of an asset when they may be capitalised and amortised. Generally, costs in relation to feasibility studies during the planning phase of a website, and ongoing costs of maintenance during the operating phase are expensed. costs incurred in building or enhancing a website, to the extent that they represent probable future economic benefits that can be reliably measured, are capitalised.

(h) Impairment of Assets

Property, plant and equipment, infrastructure and intangible assets are tested for any indication of impairment at the end of each reporting period. Where there is an indication of impairment, the recoverable amount is estimated. Where the recoverable amount is less than the carrying amount, the asset is considered impaired and is written down to the recoverable amount and an impairment loss is recognised. As the WATc is a not-for-profit entity, unless an asset has been identified as a surplus asset, the recoverable amount is the higher of an asset’s fair value less costs to sell and depreciated replacement cost.

The risk of impairment is generally limited to circumstances where an asset’s depreciation is materially understated, where the replacement cost is falling or where there is a significant change in useful life. each relevant class of assets is reviewed annually to verify that the accumulated depreciation/amortisation reflects the level of consumption or expiration of an asset’s future economic benefits and to evaluate any impairment risk from falling replacement costs.

intangible assets with an indefinite useful life and intangible assets not yet available for use are tested for impairment at the end of each reporting period irrespective of whether there is any indication of impairment.

The recoverable amount of assets identified as surplus assets is the higher of fair value less costs to sell and the present value of future cash flows expected to be derived from the asset. surplus assets carried at fair value have no risk of material impairment where fair value is determined by reference to market-based


34

equates to the transaction cost or the face value. subsequent measurement is at amortised cost using the effective interest method.

The fair value of short-term receivables and payables is the transaction cost or the face value because there is no interest rate applicable and subsequent measurement is not required as the effect of discounting is not material.

(k) Cash and Cash Equivalents

for the purpose of the statement of cash flows, cash and cash equivalent (and restricted cash and cash equivalent) assets comprise cash on hand and short-term deposits with original maturities of three months or less that are readily convertible to a known amount of cash and which are subject to insignificant risk of changes in value, and bank overdrafts.

(l) Accrued Salaries

Accrued salaries (see note 26 ‘Payables’) represent the amount due to staff but unpaid at the end of the financial year. Accrued salaries are settled within a fortnight of the financial year end. WATc considers the carrying amount of accrued salaries to be equivalent to its net fair value.

(m) Amounts Receivable for Services (holding account)

The WATc receives income from the state Government partly in cash and partly as an asset (holding account receivable). The accrued amount appropriated is accessible on the emergence of the cash funding requirement to cover leave entitlements and asset replacement.

(n) Receivables

receivables are recognised at original invoice amount less an allowance for any uncollectible amounts (i.e. impairment). The collectability of receivables is reviewed on an ongoing basis and any receivables identified as uncollectible are written off against the allowance account. The allowance for uncollectible amounts (doubtful debts) is raised when there is objective evidence that the WATc will not be able to collect the debts. The carrying amount is equivalent to fair value as it is due for settlement within 30 days.

noTes To THe finAnciAl sTATeMenTsfor THe yeAr enDeD 30 June 2011

evidence. Where fair value is determined by reference to depreciated replacement cost, surplus assets are at risk of impairment and the recoverable amount is measured. surplus assets at cost are tested for indications of impairment at the end of each reporting period.

(i) Leases

finance lease rights and obligations are initially recognised, at the commencement of the lease term, as assets and liabilities equal in amount to the fair value of the leased item or, if lower, the present value of the minimum lease payments, determined at the inception of the lease. The assets are disclosed as plant, equipment and vehicles under lease, and are depreciated over the period during which the WATc is expected to benefit from their use. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability, according to the interest rate implicit in the lease.

The WATc holds operating leases for head office buildings. lease payments are expensed on a straight-line basis over the lease term as this represents the pattern of benefits derived from the leased properties.

(j) Financial Instruments

in addition to cash, the WATc has two categories of financial instrument:

• Loans and Receivables; and

• Financial liabilities measured at amortised cost.

financial instruments have been disaggregated into the following classes:

financial Assets

• Cash and cash equivalents

• Receivables

• Amounts receivable for services

• Available for sale asset

financial liabilities

•Payables

initial recognition and measurement of financial instruments is at fair value which normally


35

(o) Payables

Payables are recognised when the WATc becomes obliged to make future payments as a result of a purchase of assets or services at fair value, as they are generally settled within 30 days.

(p) Provisions

Provisions are liabilities of uncertain timing or amount and are recognised where there is a present legal or constructive obligation as a result of a past event and when the outflow of resources embodying economic benefits is probable and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at the end of each reporting period.

(i) Provisions – employee Benefits

All annual leave and long service leave provisions are in respect of employees’ services up to the end of the reporting period.

Annual leave

The liability for annual leave expected to be settled within 12 months after the reporting period is recognised and measured at the undiscounted amounts expected to be paid when the liability is settled.

Annual leave not expected to be settled within 12 months after the reporting period is recognised and measured at the present value of amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.

When assessing expected future payments consideration is given to expected future wage and salary levels including non salary components such as employer superannuation contributions, as well as the experience of employee departures and periods of service. The expected future payments are discounted using market yields at the end of the reporting period on national government bonds with terms to maturity that match, as closely as possible, the estimated future cash outflows.

The provision for annual leave is classified as a current liability as WATc does not have an unconditional right to the defer settlement of the liability for at least 12 months after the reporting period.

Long Service Leave The liability for long service leave expected to be settled within 12 months after the reporting period is recognised and measured at the undiscounted amounts expected to be paid when the liability is settled.

Long service leave not expected to be settled within 12 months after the reporting period is recognised and measured at the present value of amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.

When assessing expected future payments consideration is given to expected future wage and salary levels including non salary components such as employer superannuation contributions, as well as the experience of employee departures and periods of service. The expected future payments are discounted using market yields at the end of the reporting period on national government bonds with terms to maturity that match, as closely as possible, the estimated future cashoutflows.

Unconditional long service leave provisionsareclassifiedascurrentliabilities as the WATC does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Conditional long serviceleaveprovisionsareclassifiedasnon-current liabilities because the WATC has an unconditional right to defer the settlement of the liability until the employee has completed the requisite years of service.

Deferred leave

The provision for deferred leave relates to Public Service employees who have entered into an agreement to self-fund


36

are funded by concurrent contributions made by WATC to the GESB. The concurrently funded part of the GSS is adefinedcontributionschemeasthesecontributions extinguish all liabilities in respect of the concurrently funded GSS obligations.

Employees commencing employment prior to 16 April 2007 who were not members of either the Pension or the GSS became non contributory members of the West State Superannuation Scheme (WSS). Employees commencing employment on or after 16 April 2007 became members of the GESB Super Scheme (GESBS). Both of these schemes are accumulation schemes. The Authority makes concurrent contributions to GESB on behalf of employees in compliance with the Commonwealth Government’s Superannuation Guarantee (Administration) Act 1992. These contributions extinguish the liability for superannuation charges in respect of the WSS and GESBS.

TheGESBmakesallbenefitpaymentsinrespect of the Pension Scheme and GSS, and is recouped from the Treasurer for the employer’s share.

(ii) Provisions – other

employment on-costs

employment on-costs, including workers’ compensation insurance, are not employee benefits and are recognised separately as liabilities and expenses when the employment to which they relate has occurred. employment on-costs are included as part of ‘other expenses’ and are not included as part of the WATc’s ‘employee benefits expense’. The related liability is included in ‘employment on-costs provision’.

(q) Superannuation Expense

The superannuation expense in the statement of comprehensive income comprises employer contributions paid to the Gss (concurrent contributions), Wss, and the GesBs.


an additional twelve months leave in the fifthyearoftheagreement.Theprovisionrecognises the value of salary set aside foremployeestobeusedinthefifthyear.This liability is measured on the same basis as annual leave. Deferred leave is reported as a non-current provision until thefifthyear.

Purchased Leave The provision for purchased leave relates to Public Service employees who have entered into an agreement to self-fund up to an additional ten weeks leave per calendar year. The provision recognises the value of salary set aside for employees and is measured at the nominal amounts expected to be paid when the liabilities are settled. This liability is measured on the same basis as annual leave.

Superannuation The Government Employees Superannuation Board (GESB) administers public sector superannuation arrangements in Western Australia in accordance with legislative requirements.

Eligible employees contribute to the PensionScheme,adefinedbenefitpension scheme closed to new members since 1987, or the Gold State SuperannuationScheme(GSS),adefinedbenefitlumpsumschemeclosedtonewmembers since 1995.

TheGSSisadefinedbenefitschemeforthe purposes of employees and whole of government reporting. However, itisadefinedcontributionplanforagency purposes because the concurrent contributions(definedcontributions)made by WATC to GESB extinguishes the agency’s obligations to the related superannuation liability.

The WATC has no liabilities under the Pension Scheme or the GSS. The liabilities for the unfunded Pension Scheme and theunfundedGSStransferbenefitsattributable to members who transferred from the Pension Scheme, are assumed by the Treasurer. All other GSS obligations


37

(r) Resources Received Free-of-Charge or for Nominal Cost

resources received free-of-charge or for nominal cost that can be reliably measured are recognised as income at fair value. Where the resource received represents a service that the authority would otherwise pay for, a corresponding expense is recognised. receipts of assets are recognised in the statement of financial Position.

Assets or services received from other state Government agencies are separately disclosed under income from state Government in the statement of comprehensive income.

(s) Foreign Currency Translation

Transactions in foreign currencies are initially recorded by applying the exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. foreign currency differences arising on retranslation are recognised in profit or loss.

The WATc performs international marketing in countries such as uK, Germany, singapore, china, usA and Japan and has exposure to movements in foreign currency exchange rates on some contracts which are denominated in foreign currencies. in 2010-11, the WATc policy to minimise the risks associated with foreign currency fluctuations required that in all cases where the total contracted or committed amount exceeded Au$100,000, at least 80% of the foreign exchange exposure arising from international contracts be covered by forward purchase arrangements of the required foreign currency through the WA Treasury corporation.

forward foreign exchange contracts are entered into as hedges to avoid or minimise possible adverse financial effects of movements in exchange rates. such derivative financial instruments are initially recognised at fair value and subsequently re-measured to fair value. At balance date, the carried asset and liability is the fair value of the derivative, i.e. the forward exchange contract.

for the purpose of hedge accounting, hedges are classified as fair value hedges or as cash flow hedges. A hedge of the foreign currency risk of a firm commitment is accounted for as a fair value hedge.

Hedges that meet the criteria for hedge accounting are accounted for as follows:

Fair value hedges

fair value hedges are hedges of exposure to changes in fair value of a recognised asset or liability that is attributable to foreign currency risk and could affect profit or loss. At balance date, the carrying amount of the hedged item is adjusted for gains or losses attributable to the risk hedged, and the hedging instrument is re-measured to fair value and the gains and losses of both are taken to profit or loss.

When an unrecognised firm commitment is designated as a hedged item, the subsequent cumulative change in the fair value of the firm commitment attributable to the hedged risk is recognised as an asset or liability with a corresponding gain or loss recognised in profit or loss. The changes in the fair value of the hedging instrument are also recognised in profit or loss.


38

noTes To THe finAnciAl sTATeMenTsfor THe yeAr enDeD 30 June 2011 (t) Comparative Figures

comparative figures are, where appropriate, reclassified to be comparable with the figures presented in the current financial year.

on 9 December 2010, the WATc rolled into the office of shared services as part of the ‘Whole of Government’ initiative for centralised finance and payroll functions. As a result, the existing chart of Accounts were mapped into a more generic, whole-of-government model. This has altered account classifications across major categories in the statement of comprehensive income, statement of financial Position and statement of cash flows and adjustments have been made to comparative results to ensure that consistency across the financial statements is maintained.

Adjustments to major categories are detailed in the table below:

Financial Statement Major Category Annual Report 2010 $’000

Adjustment$’000

2010 Adjusted Results$’000

statement of comprehensive income

employee benefits expense 15,180 990 16,170


supplies and services 14,759 982 15,741


Accommodation expenses 1,912 211 2,123


Advertising and promotion expenses

10,953 609 11,562


loss on disposal of non- current assets

27 -27 -


other expenses 3,138 -2,783 355


other revenue 1,659 -18 1,641

statement of financial Position receivables 1,040 57 1,097

statement of financial Position other current assets 321 -57 264

statement of financial Position Payables 463 2,581 3,044

statement of financial Position Provisions – current 3,603 -1,061 2,541

statement of financial Position other current liabilities 3,058 -1,457 1,601

statement of financial Position other non-current liabilities 481 -61 420

statement of cash flows employee benefits (14,752) -898 (15,650)

statement of cash flows supplies and services (14,987) -1,245 (16,232)

statement of cash flows Accommodation (1,983) -199 (2,182)

statement of cash flows Grants and subsidies (379) -565 (944)

statement of cash flows other payments (3,780) 3,456 (324)

statement of cash flows event operations payments (15,312) 494 (14,818)

statement of cash flows Advertising and promotion payments

(10,399) -930 (11,329)

statement of cash flows other receipts 1,731 -113 1,618


39

noTe 3. JuDGeMenTs MADe By MAnAGeMenT in APPlyinG AccounTinG PoliciesThe preparation of financial statements requires management to make judgements about the application of accounting policies that have a significant effect on the amounts recognised in the financial statements. The WATc evaluates these judgements regularly.

OPERATING LEASE COMMITMENTS The WATc has entered into a number of leases for buildings for branch office accommodation. some of these leases relate to buildings of a temporary nature and it has been determined that the lessor retains substantially all the risks and rewards incidental to ownership. Accordingly, these leases have been classified as operating leases.

noTe 4. Key sources of esTiMATion uncerTAinTyKey estimates and assumptions concerning the future are based on historical experience and various other factors that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year.

LONG SERVICE LEAVEseveral estimations and assumptions used in calculating the WATc’s long service leave provision include expected future salary rates, discount rates, employee retention rates and expected future payments. changes in these estimations and assumptions may impact on the carrying amount of the long service leave provision.

noTe 5. Disclosure of cHAnGes in AccounTinG Policy AnD esTiMATesINITIAL APPLICATION OF AN AUSTRALIAN ACCOUNTING STANDARDThe WATc has applied the following Australian Accounting standards effective for annual reporting periods beginning on or after 1 July 2010 that impacted on the WATc.

2009-5 further Amendments to Australian Accounting standards arising from the Annual improvements Project [AAsB 5, 8, 101, 107, 117, 118, 136 & 139]

under amendments to AAsB 117, the classification of land elements of all existing leases has been reassessed to determine whether they are in the nature of operating or finance leases. As leases of land and buildings recognised in the financial statements have not been found to significantly expose the WATc to the risks/rewards attributable to control of land, no changes to accounting estimates have been included in the financial statements and notes to the financial statements.

under amendments to AAsB 107, only expenditures that result in a recognised asset are eligible for classification as investing activities in the statement of cash flows. All investing cashflows recognised in the WATc’s statement of cash flows relate to increases in recognised assets.


40

noTes To THe finAnciAl sTATeMenTsfor THe yeAr enDeD 30 June 2011FUTURE IMPACT OF AUSTRALIAN ACCOUNTING STANDARDS NOT YET OPERATIVEThe WATc cannot early adopt an Australian Accounting standard unless specifically permitted by Ti 1101 Application of Australian Accounting standards and other Pronouncements. consequently, the WATc has not applied early any of the following Australian Accounting standards that have been issued that may impact on the WATc. Where applicable, the WATc plans to apply these Australian Accounting standards from their application date.

Title Operative for reporting periods

beginning on/after

AASB 2009-11 Amendments to Australian Accounting standards arising from AAsB 9 [AAsB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 & 1038 and interpretations 10 & 12]

The amendment to AAsB 7 financial instruments: Disclosures requires modification to the disclosure of categories of financial assets. The WATc does not expect any financial impact when the standard is first applied. The disclosure of categories of financial assets in the notes will change.

1 Jan 2013

AASB 2009-12 Amendments to Australian Accounting standards [AAsB 5, 8, 108, 110, 112, 119, 133, 137, 139, 1023 & 1031 and interpretations 2, 4, 16, 1039 & 1052]

This standard introduces a number of terminology changes. There is no financial impact resulting from the application of this revised standard.

1 Jan 2011

AASB 1053 Application of Tiers of Australian Accounting standards

This standard establishes a differential financial reporting framework consisting of two tiers of reporting requirements for preparing general purpose financial statements.

The standard does not have any financial impact on the WATc. However it may affect disclosures in the financial statements of the WATc if the reduced disclosure requirements apply. The Department of Treasury and finance has not yet determined the application or the potential impact of the new standard for agencies.

1 July 2013

AASB 2010-2 Amendments to Australian Accounting standards arising from reduced Disclosure requirements

This standard makes amendments to many Australian Accounting standards, including interpretations, to introduce reduced disclosure requirements into these pronouncements for application by certain types of entities.

The standard is not expected to have any financial impact on the WATc. However this standard may reduce some note disclosures in the financial statements of the WATc. The Department of Treasury and finance has not yet determined the application or the potential impact of the amendments to this standard for agencies.

1 July 2013

AASB 2011-2 Amendments to Australian Accounting standards arising from the Trans-Tasman convergence Project – reduced Disclosure requirements [AAsB 101 & 1054]

This Amending standard removes disclosure requirements from other standards and incorporates them in a single standard to achieve convergence between Australian and new Zealand Accounting standards for reduced disclosure reporting. DTf has not yet determined the application or the potential impact of the amendments to these standards for agencies.

1 July 2011


41

Title Operative for reporting periods

beginning on/after

AASB 2010-5 Amendments to Australian Accounting standards [AAsB 1, 3, 4, 5, 101, 107, 112, 118, 119, 121, 132, 133, 134, 137, 139, 140, 1023 & 1038 and interpretations 112, 115, 127, 132 & 1042] (october 2010)

This standard introduces a number of terminology changes as well as minor presentation changes to the notes to the financial statements. There is no financial impact resulting from the application of this revised standard.

1 Jan 2011

AASB 2010-6 Amendments to Australian Accounting standards – Disclosures on Transfers of financial Assets [AAsB 1 & 7]

This standard makes amendments to Australian Accounting standards, introducing additional presentation and disclosure requirements for financial Assets.

The standard is not expected to have any financial impact on the WATc. The Department of Treasury and finance has not yet determined the application or the potential impact of the amendments to the standard for agencies.

1 July 2011

AASB 9 financial instruments

This standard supersedes AAsB 139 financial instruments: recognition and Measurement, introducing a number of changes to accounting treatments.

The standard was reissued on 6 December 2010 and the WATc is currently determining the impact of the standard. The Department of Treasury and finance has not yet determined the application or the potential impact of the standard for agencies.

1 Jan 2013

AASB 2010-7 Amendments to Australian Accounting standards arising from AAsB 9 (December 2010) [AAsB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and interpretations 2, 5, 10, 12, 19 & 127]

This Amending standard makes consequential adjustments to other standards as a result of issuing AAsB 9 financial instruments in December 2010. The Department of Treasury and finance has not yet determined the application or the potential impact of the standard for agencies.

1 Jan 2013

AASB 1054 Australian Additional Disclosures

This standard, in conjunction with AAsB 2011 1 Amendments to Australian Accounting standards arising from the Trans-Tasman convergence Project, removes disclosure requirements from other standards and incorporates them in a single standard to achieve convergence between Australian and new Zealand Accounting standards.

1 July 2011

AASB 2011-1 Amendments to Australian Accounting standards arising from the Trans Tasman convergence Project [AAsB 1, 5, 101, 107, 108, 121, 128, 132 & 134 and interpretations 2, 112 & 113]

This Amending standard, in conjunction with AAsB 1054 Australian Additional Disclosures, removes disclosure requirements from other standards and incorporates them in a single standard to achieve convergence between Australian and new Zealand Accounting standards.

1 July 2011


42

noTes To THe finAnciAl sTATeMenTsfor THe yeAr enDeD 30 June 2011 2011 2010

$’000 $’000

noTe 6. eMPloyee BenefiTs eXPenseWages and salaries(a) 11,401 15,035superannuation – defined contribution plans (b) 897 1,135

12,298 16,170

(a) includes the value of the fringe benefit to the employee plus the fringe benefits tax component, leave entitlements including superannuation contribution component.

(b) Defined contribution plans include West state, Gold state and GesB super scheme (contribution paid).

employment on-costs expenses, such as workers’ compensation insurance, are included at note 13 ‘other expenses’.

employment on costs liability is included at note 27 ‘Provisions’.

noTe 7. suPPlies AnD servicescommissioner’s fees and charges 173 160communications expenses 241 334computer expenses 1,432 1,597contract for service 7,881 6,378General administration expenses 2,562 1,826insurance 74 177operating lease, rental and hire costs 489 273Printing and stationery 71 102Marketing services 2,721 1,220Professional services (a) 1,528 1,448research 1,010 947Travel 689 840vehicles 324 439

19,195 15,741

(a) includes audit fees, see also note 35 ‘remuneration of Auditor’.

noTe 8. DePreciATion AnD AMorTisATion eXPenseDepreciationcomputer equipment 149 223furniture and fittings 273 290leasehold improvements 4 9Total depreciation 426 522

Amortisationintangible assets 5 -Development costs 587 846Total amortisation 592 846Total depreciation and amortisation 1,018 1,368


43

2011 2010$’000 $’000

noTe 9. AccoMMoDATion eXPensescleaning 48 48lease rentals 1,431 1,479rates and taxes - 1repairs and maintenance 562 595

2,041 2,123

noTe 10. GrAnTs AnD suBsiDies

recurrenTvisitor centres 194 150other grants 635 653

829 803

noTe 11. evenT oPerATions eXPensesevents sponsorship 16,800 15,390

16,800 15,390

noTe 12. ADverTisinG AnD ProMoTion eXPensesPromotions and co-operative campaigns 10,028 9,633collateral – production and distribution 316 518familiarisation visits 1,098 1,114Donations and sponsorship - 108Multimedia and audiovisual 69 189

11,511 11,562

noTe 13. oTHer eXPensesemployment on-costs 51 65loss on disposal of non-current assets 8 9loss of foreign exchange 390 264Miscellaneous expenses 180 15Doubtful debt expense - 2

629 355

noTe 14. user cHArGes AnD feesnetwork memberships 204 264

204 264


44

noTes To THe finAnciAl sTATeMenTsfor THe yeAr enDeD 30 June 2011 2011 2010

$’000 $’000

noTe 15. coMMonWeAlTH GrAnTs & conTriBuTionsindigenous cadetship 10 32isAf sailing World championships (a) 2,000 3,000other 7 -

2,017 3,032

(a) commonwealth contribution to assist with the preparation and conducting of the isAf sailing World championships that are scheduled to be conducted in november 2011. The total commonwealth contribution is $8.0 million over three years 2009-10 to 2011-12.

noTe 16. inTeresT revenueinterest revenue – general bank account 344 357

344 357

noTe 17. oTHer revenueindustry contributions and sponsorship (a) 830 802Travel agents’ commissions 25 45sundry 421 794

1,276 1,641

(a) The amount shown for industry contributions is the value that the tourist industry contributes to participate in the WATc’s co-operative marketing activities and event sponsorship.

noTe 18. incoMe froM sTATe GovernMenTAppropriation received during the year:service appropriation (a) 59,572 58,062

59,572 58,062

resources received free-of-charge (b) Determined on the basis of estimates provided by agencies:Department of Treasury and finance 147 136

147 136

royalties for regions fund:regional community services Account (c) 330 -

60,049 58,198

(a) service appropriations fund the net cost of services delivered. Appropriation revenue comprises a cash component and a receivable (asset). The receivable (holding account) comprises the depreciation and amortisation expense for the year and any agreed increase in leave liability during the year.

(b) Assets or services received free of charge or for nominal cost are recognised as revenue at fair value of the assets and/or services that can be reliably measured and which would have been purchased if they were not donated. contributions of assets or services in the nature of contributions by owners are recognised direct to equity.

(c) This is a sub-fund within the over-arching ‘royalties for regions fund’. The recurrent funds are committed to projects and programs in WA regional areas.


45

2011 2010$’000 $’000

noTe 19. receivABlesCurrentreceivables 231 210Allowance for impairment of receivables - -Accrued income 28 57Hopman cup (a) 232 7GsT receivable 513 823

1,004 1,097

Hopman Cup (a)Distribution due at start of period 7 144

less adjustment (22) -Plus share of profits for the current event 247 7

232 151less distribution received - (144)Balance due at end of period 232 7

Total receivables 1,004 1,097

The WATc does not hold any collateral or other credit enhancements as security for receivables.

(a) receivable – Hopman cup

The Hopman cup is an international tennis event. since february 2001, the organisation of the event is undertaken by the international Tennis federation. under contract, the WATc is entitled to 25% of the profits of the venture. under an agreement with Hopman cup Pty ltd, the WATc is required to meet the first $2,000,000 of any loss or deficit that may arise from the event.

noTe 20. PrePAyMenTs

Prepayments 470 1,269470 1,269

noTe 21. AMounTs receivABle for services (HolDinG AccounT)

current 475 475non-current 5,071 4,704

5,546 5,179

represents the non-cash component of service appropriations. it is restricted in that it can only be used for asset replacement or payment of leave liability.


46


2011 2010$’000 $’000

noTe 22. oTHer AsseTsCurrentforeign exchange contract – firm commitment (a) - 264Total current - 264

Non-current investments (b) 170 172Total non-current 170 172

(a) The WATc has exposure to movements in foreign currency exchange rates on contracts which are denominated in foreign currencies. Details of the outstanding foreign exchange derivative contracts used by WATc are given in note 33 (c) ‘financial instrument disclosures’.

These contracts have been determined to be firm commitments and for the purpose of the hedge accounting are classified as fair value hedges.

As a fair value hedge, only the fair value movements at the end of the reporting period are carried as an asset and a corresponding liability (note 28 (b) ‘other liabilities’). it should be noted that at 30 June 2011, WATc had no outstanding forward exchange contracts.

(b) The WATc holds an 11.94% (2010: 11.94%) interest in Australian Tourism Data Warehouse Pty ltd (ATDW), which is classified as an available-for-sale asset in accordance with AAsB139. its principal activity is the development of a database for Australian tourism products. since there is no active market, the fair value is its liquidation value being working capital plus property, plant and equipment.

noTe 23. ProPerTy, PlAnT AnD eQuiPMenT

leasehold improvements – at cost 53 26less accumulated depreciation (18) (14)

35 12

furniture, fittings and equipment – at cost 2,846 2,883less accumulated depreciation (1,902) (1,738)

944 1,145

computer equipment – at cost 1,197 1,319less accumulated depreciation (1,088) (1,075)

109 244

Total 1,088 1,401


47

reconciliations of the carrying amounts of property, plant and equipment at the beginning and end of the reporting period are set out in the table below.

Leasehold improvement

Furniture, fittings and equipment

Computer equipment Total

2011 $’000 $’000 $’000 $’000carrying amount at start of year

12 1,145 244 1,401

Additions 27 92 14 133

Transfers - - - -

other disposals - (20) - (20)

classified as held for sale - - - -

revaluation increments - - - -Impairment losses(a) - - - -

Impairment losses reversed(a)

- - - -

Depreciation (4) (273) (149) (426)

Carrying amount at end of year

35 944 109 1,088

Land and buildings

Leasehold improvement

Furniture, fittings and equipment

Computer equipment Total

2010 $’000 $’000 $’000 $’000 $’000carrying amount at start of year

213 1,120 102 375 1,810

reclassifications - (1,099) 1,175 82 158

Transfers (300) - - - (300)

Additions - - 186 11 197

other disposals - - (28) - (28)

Classified as held for sale - - - - -Revaluation increments 87 - - - 87Impairment losses(a) - - - - -Impairment losses reversed(a)

- - - - -

Depreciation - (9) (290) (224) (523)Carrying amount at end of year

- 12 1,145 244 1,401

(a) recogniosed in the statement of comprehensive income. Where an asset measured at cost is written-down to recoverable amount, an impairment loss is recignised in the statement of comprehensive income. Where an asset measured at fair value is written-down to recoverable amount, the loss is recognised as a revaluation decrement in the statement of changes in equity.


48


2011 2010$’000 $’000

noTe 24. inTAnGiBle AsseTsSoftware and website developmentAt cost 108 459Accumulated amortisation (104) (451)

4 8

Development costsAt cost 3,508 2,888Accumulated amortisation (2,960) (2,020)

548 868

reconciliATionsSoftware and website developmentcarrying amount at start of year 876 1,890Additions 268 -Adjustments - (167)revaluation increments - -impairment losses recognised in statement of comprehensive income - -impairment losses reversed in statement of comprehensive income - -Amortisation expense (592) (847)carrying amount at end of year 552 876

noTe 25. iMPAirMenT of AsseTsThere were no indications of impairment to property, plant and equipment, infrastructure or intangible assets at 30 June 2011.

The WATc held no goodwill or intangible assets with an indefinite useful life during the reporting period. At the end of the reporting period there were no intangible assets not yet available for use.

All surplus assets at 30 June 2011 have either been classified as assets held for sale or written off.

noTe 26. PAyABlesCurrentTrade payables 915 244other payables 43 -Accrued salaries 279 219Accrued expenses 5,222 2,581Total current 6,459 3,044


49

2011 2010$’000 $’000

noTe 27. ProvisionsCurrent:Employee benefits provision

Annual leave (a) 798 1,053long service leave (b) 941 1,057

1,739 2,110

Other Provisions employment on-costs (d) 385 431

385 431

2,124 2,541

Non-current:Employee benefits provision

long service leave (b) 456 579Deferred salary scheme (c) 42 29

498 608

Other Provisionsemployment on-costs (d) 68 74

68 74566 682

(a) Annual leave liabilities have been classified as current as there is no unconditional right to defer settlement for at least 12 months after the reporting period. Assessments indicate that actual settlement of the liabilities will occur as follows:

Within 12 months of the end of the reporting period 492 640More than 12 months after the reporting period 306 413

798 1,053

(b) long service leave liabilities have been classified as current where there is no unconditional right to defer settlement for at least 12 months after the reporting period. Assessments indicate that actual settlement of the liabilities will occur as follows:

Within 12 months of the end of the reporting period 364 592More than 12 months after the reporting period 1,033 1,044

1,397 1,636


50


2011 2010$’000 $’000

(c) Deferred salary scheme liabilities have been classified as current where there is no unconditional right to defer settlement for at least 12 months after the reporting period. Actual settlement of the liabilities will occur as follows:

Within 12 months of the end of the reporting period - -More than 12 months after the reporting period 42 29

42 29

(d) The settlement of annual and long service leave liabilities gives rise to the payment of employment on-costs including workers’ compensation insurance. The provision is the present value of expected future payments.

The associated expense, apart from the unwinding of the discount (finance cost), is disclosed in note 13 ‘other expenses’.

MoveMenT in oTHer ProvisionsMovements in each class of provisions during the financial year, other than employee benefits, are set out below.

Employment On-Costs Provisioncarrying amount at start of year 504 564Additional provisions recognised 922 761Payments/other sacrifices of economic benefits (973) (818)unwinding of the discount - (3)carrying amount at end of year 453 504

noTe 28. oTHer liABiliTiesCurrentredundancy - 1,062unearned income 316 55lease incentive liability (a) 158 158unclaimed monies 25 61Derivatives (b) - 265lease payout liability 31 -Total current 530 1,601

Non-currentlease incentive liability (a) 263 420Total non-current 263 420

(a) The amounts shown against lease incentive liabilities represent the inducement offered by the WATc’s lessor to enter into a non-cancellable operating lease and re-locate to the lessor’s building. The incentive comprises a rent-free period and the assumption by the lessee of certain fit-out costs. The liability will be reduced on a straight-line basis over the term of the lease.

(b) The WATc enters into forward purchase contracts via the WA Treasury corporation for event contracts which are denominated in foreign currencies. Details of the foreign exchange derivative contracts used by the WATc are given in note 33 (c) ‘financial instrument disclosures’.

As a fair value hedge, only the fair value movements at the end of the reporting period are carried as a liability (derivative) and corresponding asset in note 22(a) ‘other assets’. it should be noted that at 30 June 2011, WATc had no outstanding forward exchange contracts.


51

2011 2010

$’000 $’000

noTe 29. eQuiTyThe Government holds the equity interest in the WATc on behalf of the community. equity represents the residual interest in the net assets of the WATc. The asset revaluation surplus represents that portion of equity resulting from the revaluation of non-current assets.

Contributed equity Balance at start of year 6,779 6,807Contributions by owners capital contributions (a) - 272Total contributions by owners - 272

Distributions to ownersTransfer of net assets to other agencies (b) Department of regional Development and lands - (300)Total Distributions to owners - (300)

Balance at end of year 6,779 6,779

ReservesAsset revaluation reserveBalance at start of year 2,010 1,923

Net revaluation increments land - 87Balance at end of year 2,010 2,010

Accumulated surplusBalance at start of year (2,587) (2,567)result for the period (431) (20)income and expense recognised directly in equity - -Balance at end of year (3,018) (2,587)

(a) capital contributions (appropriations) have been designated as contributions by owners in Treasurer’s instruction 955 ‘contributions by owners made to Wholly owned Public sector entities’ and are credited directly to equity.

(b) AAsB interpretation 1038 ‘contributions by owners Made to Wholly-owned Public sector entities’ requires that where the transferee accounts for a transfer as contribution by owner, the transferor must account for the transfer as a distribution to owners. consequently, non-discretionary (non-reciprocal) transfers of net assets to other state Government agencies are distributions to owners and are debited directly to equity.


52


2011 2010$’000 $’000

noTe 30. noTes To THe cAsH floW sTATeMenT

reconciliATion of cAsHcash at the end of the financial year as shown in the statement of cash flows is reconciled to the related items in the statement of financial Position as follows:

cash and cash equivalents 6,883 4,232

6,883 4,232

reconciliATion of neT cosT of services To neT cAsH floWs ProviDeD By/(useD in) oPerATinG AcTiviTiesNet cost of services (60,480) (58,218)

Non-cash itemsDepreciation and amortisation expense (Note 8 ‘Depreciation and amortisation expense’)

1,018 1,368

Doubtful debt expense (Note 13 ‘Other Expenses’) - 2resources received free-of-charge (Note 18 ‘Income from State Government’) 147 136net (gain)/loss on sale of property, plant and equipment 20 27

(Increase)/decrease in assetscurrent receivables(a) (216) 280other current assets 1,063 (279)

Increase/(decrease) in liabilitiescurrent payables(a) 3,414 276current provisions (416) 854other current liabilities (1,070) (587)non-current provisions (116) (80)other non-current liabilities (157) (166)net GsT receipts/(payments)(b) 355 (647)change in GsT in receivables/payables(c) (310) 17Net cash provided by/(used in) operating activities (56,748) (57,017)

(a) note that the Australian Taxation office (ATo) receivable/payable in respect of GsT and the receivable/payable in respect of the sale/purchase of non-current assets are not included in these items as they do not form part of the reconciling items.

(b) This is the net GsT paid/received, i.e. cash transactions.(c) This reverses out the GsT in receivables and payables.

2011 2010$’000 $’000


53

noTe 31. coMMiTMenTs

The commitments detailed below are inclusive of GsT.

leAse coMMiTMenTscommitments in relation to leases contracted for at the end of the reporting period but not recognised in the financial statements are payable as follows:

Within one year 1,872 1,795later than one year and not later than five years 4,773 3,218

6,645 5,013

representing:non-cancellable operating leases 6,645 5,013

6,645 5,013

The WATc leases its motor vehicle fleet from statefleet, a division of the Department of Treasury and finance. Property is rented under lease to the Honourable Minister for Housing and Works. The property leases are non-cancellable leases with terms of up to ten years; and rent is payable monthly in advance.

contingent rent provisions within the lease agreements require that minimum lease payments shall be increased by the lower of cPi or a nominated percentage per annum. options exist to renew some of the leases at the end of their terms for additional periods.

OTHER ExPENDITURE COMMITMENTSother expenditure commitments in relation to sponsoring sporting events within Western Australia and the funding of regional Tourism organisations for intrastate marketing that were contracted for at the end of the reporting period but not recognised as liabilities, are payable as follows:

Within one year 29,701 23,549later than one year and not later than five years 41,428 20,464

71,129 44,013

noTe 32. eXPlAnATory sTATeMenTThis statement provides details of any significant variations between estimates and actual results for 2011 and between the actual results for 2010 and 2011. significant variations are considered to be those greater than 10% or $5 million.

siGnificAnT vAriATions BeTWeen esTiMATeD AnD AcTuAl resulT for 2011

Classification

Estimate 2011 $’000

Actual 2011 $’000

Variance $’000

Expenditureemployee benefits expense 14,232 12,298 1,934Depreciation 842 1,018 (176)Grants and subsidies - 829 (829)

Incomeother revenue 2,459 1,824 635


54

noTes To THe finAnciAl sTATeMenTsfor THe yeAr enDeD 30 June 2011eMPloyee BenefiTs eXPenseemployee benefits were less than estimated due to early termination payments for transitional staff ($1.3 million). The variance is also due to the use of temporary staff while positions were being filled and a significant decrease in long service and annual leave entitlements due to the reduction in staff numbers.

DePreciATionBudget depreciation was based on capital expenditure for a fit-out which was deferred to 2011-12. Assets with a higher depreciation rate were purchased instead.

GrAnTs AnD suBsiDiesGrants and subsidies were greater than budgeted due to transferring functions to regional Development commissions as part of the recently restructured agency service model.

oTHer revenueThe restructure of the agency to a different service model resulted in less than budgeted industry contributions for collaborative projects. Tourism WA had higher than expected interest revenue due to an increase in the interest rate and cash on deposit ($179,000).

siGnificAnT vAriAnces BeTWeen AcTuAl resulTs for 2010 AnD 2009

CLASS

ACTUAL 2011 $’000

ACTUAL 2010 $’000

VARIANCE $’000

Incomecommonwealth Grants 2,017 3,032 (1,015)user charges and fees 204 264 (60)other revenue 1,276 1,641 (365)

Expensesemployee benefits expense 12,298 16,170 (3,872)supplies and services 19,195 15,741 3,454Depreciation 1,018 1,368 (350)other expenses 629 355 274

coMMonWeAlTH GrAnTsThe decrease is due to a reduction in commonwealth Grants for the isAf sailing World championships.

user cHArGes AnD feesThere was a minor reduction in network memberships with the move to only allowed accredited members to join.

oTHer revenueThe restructure of the agency to a different model has resulted in decreasing industry contributions for collaborative projects compared to 2009-10.

eMPloyee BenefiTs eXPenseThe decrease is due to reduced fTe numbers associated with the Tourism WA restructured agency service model.


55

suPPlies AnD servicesThe increase is due to a move to out-sourcing non-core activities following the restructure of Tourism WA, the transition to shared services for Hr and finance functions and increases in contracted payments to regional Tourism operators and the Perth convention Bureau.

DePreciATionTourism e’Marketplace development ceased in 2009-10 resulting in decreased amortisation charges in 2010-11.

oTHer eXPensesother expenses have increased due to the recognition of a foreign exchange loss associated with the cancellation of the red Bull Air race by the organisers. in accordance with the Tourism WA foreign exchange strategy for risk management, a forward purchase contract was put in place to cover the 2011 committed expenditure and provide budget protection. The contract was unwound upon the unexpected cancellation of the event. There was an increase in miscellaneous expenses due to the move to a ‘whole-of-government’ chart of accounts which provides less specific classifications than under the previous system.

noTe 33. finAnciAl insTruMenTs(a) Financial risk management objectives and policies

financial instruments held by the WATc are cash and cash equivalents, restricted cash and cash equivalents, borrowings, finance leases, Treasurer’s advances, loans and receivables, and payables. WATc has limited exposure to financial risks. The WATc’s overall risk management program focuses on managing the risks identified below.

credit risk

credit risk arises when there is the possibility of the WATc’s receivables defaulting on their contractual obligations resulting in financial loss to the WATc.

The maximum exposure to credit risk at end of the reporting period in relation to each class of recognized financial assets is the gross carrying amount of those assets inclusive of any provisions for impairment as shown in the table at note 33(c) ‘financial instruments disclosures’ and note 19 ‘receivables’.

credit risk associated with the WATc’s financial assets is minimal because the main receivable is the amounts receivable for services (holding account). for receivables other than Government, the WATc seeks to trade only with recognised, creditworthy third parties. The WATc has policies in place to ensure that sales of products and services are made to customers with an appropriate credit history. in addition, receivable balances are monitored on an ongoing basis with the result that the WATc’s exposure to bad debts is minimal. At the end of the reporting period there were no significant concentrations of credit risk.

liquidity risk

liquidity risk arises when the WATc is unable to meet its financial obligations as they fall due.

The WATc is exposed to liquidity risk through its trading in the normal course of business.

The WATc has appropriate procedures to manage cash flows including drawdowns of appropriations by monitoring forecast cash flows to ensure that sufficient funds are available to meet its commitments.

Market risk

Market risk is the risk that changes in market prices such as foreign exchange rates and interest rates will affect the WATc’s income or the value of its holdings of financial instruments. The WATc’s activities expose it to a variety of financial risks/market risk, including currency risks. The WATc’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the WATc. The WATc uses derivative financial instruments such as foreign exchange contracts to hedge certain exposures.

The WATc’s exposure to market risk for changes in interest rates relates primarily to cash and cash equivalents as detailed in the interest rate sensitivity analysis table at note 33(c) ‘financial instrument disclosures’. The WATc has no borrowings outstanding at reporting date.


56


currency risk

in 2010-11, the WATc policy to minimise the risks associated with foreign currency fluctuations required that in all cases where the total contracted or committed amount exceeded Au$100,000, at least 80% of the foreign exchange exposure arising from international contracts be covered by forward purchase arrangements of the required foreign currency through the WA Treasury corporation.

(b) Categories of Financial Instruments

in addition to cash and bank overdraft, the carrying amounts of each of the following categories of financial assets and financial liabilities at the end of the reporting period are:

2011 2010$’000 $’000

Financial Assetscash and cash equivalents 6,883 4,232receivables (a) 463 482Amounts receivable for services 5,546 5,179Available for sale asset 170 172

Financial Liabilitiesfinancial liabilities measured at amortised cost 6,459 3,308

(a) The amount of loans and receivables excludes GST recoverable from the ATO (statutory receivable).

(c) Financial instrument disclosures

credit risk and interest rate exposures

The following table discloses the WATc’s maximum exposure to credit risk, interest rate exposures and the ageing analysis of financial assets. The WATc’s maximum exposure to credit risk at the end of the reporting period is the carrying amount of financial assets as shown below. The table discloses the ageing of financial assets that are past due but not impaired and impaired financial assets. The table is based on information provided to senior management of the WATc.

The WATc does not hold any collateral as security or other credit enhancement relating to the financial assets it holds.

The WATc does not hold any financial assets that had to have their terms renegotiated that would have otherwise resulted in them being past due or impaired.


57

inTeresT rATe eXPosures AnD AGeinG AnAlysis of finAnciAl AsseTs

Weighted average

effective interest

rate

Carrying amount

Fixed interest

rate

Variable interest

rate

Non-interest Bearing

Up to 3

mths

3-12 mths

1-2 yrs 2-5 yrs

More than 5

years

Impaired financial

assets

2011 % $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Financial Assets

cash and cash equivalents

4.65 6,883 - 6,784 99 - - - - -

receivables (a) - 463 - - 463 463 - - - -

Amounts receivable for services

- 5,546 - - 5,546 - - - - -

Available for sale asset

- 170 - - 170 - - - - -

13,062 - 6,784 6,278 463 - - - -

2010

cash and cash equivalents

4.25 4,232 - 4,162 70 - - - - -

receivables (a) - 482 - - 482 218 264 - - -

Amounts receivable for services

- 5,179 - - 5,179 - - - - -

Available for sale asset

- 172 - - 172 - - - - -

10,065 - 4,162 5,903 218 264 - - -

(a) The amount of receivables excludes the GsT recoverable from the ATo (statutory receivable).

Past due but not impairedInterest rate exposure


58

noTes To THe finAnciAl sTATeMenTsfor THe yeAr enDeD 30 June 2011Liquidity Risk

The following table details the contractual maturity analysis for financial liabilities. The table includes interest and principal cash flows. An adjustment has been made where material.

inTeresT rATe eXPosure AnD MATuriTy AnAlysis of finAnciAl liABiliTies

INTEREST RATE ExPOSURE MATURITY DATE

Weighted average effective interest

rate

Carrying amount

Fixed interest

rate

Variable interest

rate

Non-interest bearing

Adjustment for

discounting

Total nominal amount

Up to 3

mths

3-12 mths

1-2 yrs

2-5 yrs

More than 5 yrs

2011 % $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Financial Liabilities

Payables - 6,459 - - 6,459 - - 6,459 - - - -

6,459 - - 6,459 - - 6,459 - - - -

2010

Payables - 3,308 - - 3,308 - - 3,044 264 - - -

- 3,308 - - 3,308 - - 3,044 264 - - -

(a) The amounts disclosed are the contractual undiscounted cash flows of each class of financial liabilities at the end of the reporting period.

Interest rate sensitivity analysis

The following table represents a summary of the interest rate sensitivity of the WATc’s financial assets and liabilities at the end of the reporting period on the surplus for the period and equity for a 1% change in interest rates. it is assumed that the change in interest rates is held constant throughout the reporting period.

-100 basis points +100 basis pointsCarrying amount Surplus Equity Surplus Equity

2011 $’000 $’000 $’000 $’000 $’000Financial Assetscash and cash equivalents 6,784 (68) (68) 68 68Financial Liabilities - - - - -Total Increase/(Decrease) (68) (68) 68 68

-100 basis points +100 basis pointsCarrying amount Surplus Equity Surplus Equity

2010 $’000 $’000 $’000 $’000 $’000Financial Assetscash and cash equivalents 4,162 (41) (41) 41 41Financial Liabilities - - - - -Total Increase/(Decrease) (41) (41) 41 41


59

Fair values

All financial assets and liabilities recognised in the statement of financial Position, whether they are carried at cost or fair value, are recognised at amounts that represent a reasonable approximation of fair value unless otherwise stated in the applicable notes.

noTe 34. reMunerATion of MeMBers of THe AccounTABle AuTHoriTy AnD senior officers

reMunerATion of MeMBers of THe AccounTABle AuTHoriTyThe number of members of the accountable authority, whose total of fees, salaries, superannuation, non monetary benefits and other benefits for the financial year, fall within the following bands are:

2011 2010$1 - $10,000 1 2

$10,001 - $20,000 7 6$50,001 - $60,000 1 1

2011 2010$’000 $’000

The total remuneration of the members of the Accountable Authority is: 187 184

The total remuneration includes the superannuation expense incurred by WATc in respect of members of the accountable authority.

no members of the Accountable Authority are members of the Pension scheme.

reMunerATion of senior officersThe number of senior officers, other than senior officers reported as members of the accountable authority, whose total fees, salaries, superannuation, non monetary benefits and other benefits for the financial year fall within the following bands are:

2011 2010 $70,001 - $ 80,000 - 1

$130,001 - $140,000 - 1$140,001 - $150,000 - 1$150,001 - $160,000 - 1$160,001 - $170,000 3 -$180,001 - $190,000 1 -$190,001 - $200,000 - 1$220,001 - $230,000 - 1$270,001 - $280,000 1 -

2011 2010$’000 $’000

The total remuneration of senior officers is: 956 1,280

The total remuneration includes the superannuation expense incurred by the WATc in respect of senior officers other than senior officers reported as members of the accountable authority. senior officers are defined as those officers who sat on the corporate executive for part or all of the financial year.

no senior officers are members of the Pension scheme.


60

noTe 35. reMunerATion of AuDiTorremuneration paid or payable to the Auditor General in respect of the audit for the current financial year is as follows:

2011 2010$’000 $’000

Auditing the accounts, financial statements and performance indicators 89 89

noTe 36. conTinGenT liABiliTies AnD conTinGenT AsseTsThe WATc has no contingent assets or liabilities at reporting date.

noTe 37. relATeD BoDiesThere are no related bodies.

noTe 38. AffiliATeD BoDiesPerTH convenTion BureAuon 1 october 1998, the WATc entered into a contract for service with the Perth convention Bureau inc. (PcB) for the provision of the convention and incentive Travel output previously undertaken by a division of the WATc.

The WATc controls the activities of the PcB to the extent that it provides the majority of the PcB’s funding and that the PcB has contracted to submit its annual operation plan and budget for approval by the WATc prior to implementation. The PcB is not subject to operational control by the WATc.

Payments inclusive of GsT made to the PcB in 2010-11 totalled $3,745,170. By comparison, payments totalling $3,638,470 were made in 2009-10.



61

reGionAl TourisM orGAnisATionson 1 July 2010, the WATc entered into 5 year Marketing and services Agreements with each of the five regional Tourism organisations (rTos) in Western Australia to promote and market the region. The rTos include experience Perth, Australia’s coral coast, Australia’s Golden outback, Australia’s south West, and Australia’s north West.

The rTos are not subject to operational control by the WATc, but are required to submit their annual business plan for approval prior to implementation. All five rTos received more than 50% of their total funding from the WATc in 2010-11.

Payments inclusive of GsT made to each rTo in 2010-11 were $691,800.

noTe 39. suPPleMenTAry finAnciAl inforMATion

2011 2010$’000 $’000

(a) Write-offs

Public property written off by the executive council during the financial year - 25

(b) Losses through theft, defaults and other causes

losses of public moneys and public and other property through theft or default - -

noTe 40. evenTs occurrinG AfTer THe enD of THe rePorTinG PerioDThe statement of comprehensive income and the statement of financial Position have been prepared on the basis of conditions existing at reporting date. There is no additional evidence of events or conditions occurring after balance date that may have an impact on the financial statements.


62

noTe 41. scHeDule of incoMe AnD eXPenses By service

Marketing Event Tourism Investment & Infrastructure

TOTAL

2011 $’000

2010 $’000

2011 $’000

2010 $’000

2011 $’000

2010 $’000

2011 $’000

2010 $’000

COST OF SERVICESExpensesemployee benefits expense

6,665 7,376 2,421 2,131 3,212 6,663 12,298 16,170

supplies and services 15,019 8,359 1,847 4,333 2,329 3,049 19,195 15,741Depreciation and amortisation expense

530 658 213 185 275 525 1,018 1,368

Accommodation expenses

1,178 818 379 204 484 1,101 2,041 2,123

Grants and subsidies 484 - 143 490 202 313 829 803event operations expense

13 13 16,767 15,367 20 10 16,800 15,390

Advertising and promotion expense

10,616 10,403 649 686 246 473 11,511 11,562

other expenses 198 130 390 207 41 18 629 355Total cost of services 34,703 27,767 22,809 23,603 6,809 12,152 64,321 63,512

Incomerevenueuser charges and fees 204 65 - 9 - 190 204 264commonwealth grants and contributions

9 - 2,003 3,000 5 32 2,017 3,032

other revenue from operating activities

566 867 637 54 73 720 1,276 1,641

interest revenue 179 174 69 49 96 134 344 357958 1,106 2,709 3,112 174 1,076 3,841 5,294

Total income other than income from State Government

958 1,106 2,709 3,112 174 1,075 3,841 5,294

NET COST OF SERVICES

33,745 26,649 20,100 20,492 6,635 11,077 60,480 58,218

Income from State Governmentservice appropriation 33,639 26,528 17,874 19,812 8,059 11,722 59,572 58,062resources received free of charge

76 67 30 18 41 51 147 136

royalties for regions 330 - - - - - 330 -Total income from State Government

34,045 26,595 17,904 19,830 8,100 11,773 60,049 58,198

Surplus/(deficit) for the period

300 (54) (2,196) (662) 1,465 696 (431) (20)

The schedule of income and expenses by service should be read in conjunction with the accompanying notes.


63

4.2 Key PerforMAnce inDicATors

cerTificATion of Key PerforMAnce inDicATorsWe hereby certify that the performance indicators are based on proper records, are relevant and appropriate for assisting users to assess the Western Australian Tourism commission’s performance, and fairly represent the performance of the Western Australian Tourism commission for the financial year ending 30 June 2011.

Kate Lamont cHAirMAn WesTern AusTrAliAn TourisM coMMission

12 september 2010

AL DONALD coMMissioner WesTern AusTrAliAn TourisM coMMission

11 september 2010


64

Key PerforMAnce inDicATorsin 2007 the Western Australian Tourism commission (trading as Tourism WA) reviewed its strategic direction, delivering a new strategic Plan 2008 to 2013 – Building for the future. Key performance indicators were developed and agreed by Government as part of this process. This is the third year of measurement for the KPis (2010-2011).

The government goal that is supported by Tourism WA is “financial and economic responsibility: responsibly managing the state’s finances through the efficient and effective delivery of services, encouraging economic activity and reducing regulatory burdens on the private sector.”

The desired outcome that supports this is: increased competitiveness and viability of the Western Australian Tourism industry. ‘competitiveness’ reflects the fact that Western Australia faces real product competition with other interstate and overseas destinations. Tourism industry ‘viability’ is secured when it is characterised by profitability and new investment whilst being sensitive to community views and environmental concerns.

The key performance indicators (KPis) provide an indication of whether Tourism WA has achieved these outcomes.

Key effecTiveness inDicATorsKey effectiveness indicators assist with the assessment of agency performance in the achievement of government desired outcomes.

1. Percentage of visitors whose expectations were met or exceeded upon visiting Western Australiain order to build a strong market base, WA as a destination must at least meet visitor expectations if not exceed them. This KPi measures the effectiveness of strategies being employed to improve existing and develop new tourism products and services.

This KPI has been achieved

Results

2010-2011Target

2010-2011Actual

2009-2010Actual

2008-2009Actual

90% 96.0% 95.1% 94.7%

notes:

i. visitor expectations are measured through the visitor expectation and experience research.

ii. This is conducted through a face-to-face survey of intrastate, interstate and international visitors conducted in key hubs over the five tourism regions in WA.

iii. interviewing takes place across the full year to address seasonality issues. Data is analysed and reported annually.

iv. The KPi measure is based on a sample size of 401 visitors for 2010-2011.

v. This was made up of 131 intrastate, 125 interstate and 145 international visitors.

vi. The response rate for 2010-2011 was 80%.

vii. The confidence interval for the sample of 401 interviews is +/-5%.


65

2a. visitor expenditure in Western Australia (international, interstate and intrastate markets):

Grows faster than the national averageother things being equal, if WA is successfully promoted as an attractive destination and the tourism products and experiences match visitor expectations, then visitor expenditure will increase. This will occur due to an increase in the amount of money spent per visitor as well as sheer number of visitors. This KPi measures the result of successful promotion of WA as an attractive destination to high yielding markets.


Results

2010-2011Target

2010-2011Actual

2009-2010Actual

2008-2009 Actual

WA growth in spend > growth in national average

WA spend +4.3% versus national average of -0.1%

WA spend -3.7% versus national average of +0.9%

WA spend -7.1% versus national average of -1.0%

notes:

i. The results of the national visitor survey (nvs) and the international visitor survey (ivs) are released by Tourism research Australia (TrA) each quarter and figures are reported for the latest 12 month period (i.e. year ending (ye) March 2011 in this instance). ye March information is used as survey information for ye June is not available until mid september.

ii. The nvs figures are based on a large scale telephone survey of Australians at home, while the ivs figures are based on interviews with international tourists at airport departure lounges across Australia.

iii. overnight Domestic visitors Definition: Australian residents aged 15 years and over who spent at least one night away from home in Western Australia.

iv. overnight international visitors Definition: international visitors aged 15 years and over who spent at least one night in WA.

v. visitors include those travelling for leisure, business, visiting friends and relatives and education.

visitorsvi. sample size for Western Australia visitors domestic is 4,308 and international is 6,570.

vii. sample size for Australia visitors domestic is 34,675 and international is 39,723.

viii. confidence intervals for Western Australia visitors domestic is +/-1.5%, and international is +/-1.2%.

ix. confidence intervals for Australia visitors domestic is +/-0.5% and international is +/-0.5%. confidence intervals are provided by Tourism research Australia with their visitor estimates.

x. The response rate for the international visitor survey is 75% and the national visitor survey is 46%.

spend

xi. spend information is sourced from the Tourism expenditure research Program, provided by Tourism research Australia. The expenditure figures are based on responses from the national and international visitor surveys for the visitor’s entire trip (see notes below relating to visitor numbers KPi for sample size and confidence intervals for the international and national visitor surveys). The regional expenditure model allocates visitor expenditure to specific tourism regions to determine spend estimates for each of Australia’s states.

xii. sample size for Western Australia domestic is 3,979 and international 5,478.

xiii. sample size for Australia domestic is 34,675 and international 39,723.

xiv. confidence intervals for Western Australia domestic is +/-4.6% and international +/-6.1%. (These confidence intervals are provided by Tourism research Australia with their regional estimates)

xv. confidence intervals for Australia domestic is +/-0.5% and international +/-0.5%. (These confidence intervals are not provided by Tourism research Australia, and are instead calculated by Tourism WA based on total sample sizes)


66

2b. visitor expenditure in Western Australia (international, interstate and intrastate markets):

Grows faster than total Western Australia visitor numbersThis indicator encourages managed visitation - to protect our natural environment it is important to grow visitor expenditure faster than visitor numbers.


Results

2010-2011Target

2010-2011Actual

2009-2010Actual

2008-2009 Actual

Growth in WA visitor expenditure > growth in

WA visitor numbers

Growth in WA visitor expenditure +4.3% versus

growth in WA visitor numbers +3.9%.

Growth in WA visitor expenditure -3.7% versus

growth in WA visitor numbers -10.1%

Growth in WA visitor expenditure -7.1% versus

growth in WA visitor numbers -10.8%

notes:

i. The results of the national visitor survey (nvs) and the international visitor survey (ivs) are released by Tourism research Australia (TrA) each quarter and figures are reported for the latest 12 month period (i.e. year ending (ye) March 2011 in this instance). ye March information is used as survey information for ye June is not available until mid september.


iii. overnight Domestic visitors Definition: Australian residents aged 15 years and over who spent at least one night away from home in Western Australia.

iv. overnight international visitors Definition: international visitors aged 15 years and over who spent at least one night in WA.

v. visitors include those travelling for leisure, business, visiting friends and relatives and education.

visitorsvi. sample size for Western Australia visitors domestic is 4,308 and international is 6,570.

vii. sample size for Australia visitors domestic is 34,675 and international is 39,723.

viii. confidence intervals for Western Australia visitors domestic is +/-1.5%, and international is +/-1.2%.

ix. confidence intervals for Australia visitors domestic is +/-0.5% and international is +/-0.5%. confidence intervals are provided by Tourism research Australia with their visitor estimates.

x. The response rate for the international visitor survey is 75% and the national visitor survey is 46%.

spendxi. spend information is sourced from the Tourism expenditure research Program, provided by Tourism research Australia.

The expenditure figures are based on responses from the national and international visitor surveys for the visitor’s entire trip (see notes below relating to visitor numbers KPi for sample size and confidence intervals for the international and national visitor surveys). The regional expenditure model allocates visitor expenditure to specific tourism regions to determine spend estimates for each of Australia’s states.

xii. sample size for Western Australia domestic is 3,979 and international 5,478.

xiii. sample size for Australia domestic is 34,675 and international 39,723.

xiv. confidence intervals for Western Australia domestic is +/-4.6% and international +/-6.1%. (These confidence intervals are provided by Tourism research Australia with their regional estimates)

xv. confidence intervals for Australia domestic is +/-0.5% and international +/-0.5%. (These confidence intervals are not provided by Tourism research Australia, and are instead calculated by Tourism WA based on total sample sizes)


67

3. Broader business community assessment of the value of tourism

communicating a well developed message regarding the value of tourism both socially and environmentally for Western Australia will greatly assist in building strong partnerships and alignment with both the public and private sector. This will then enable successful delivery of tourism development projects and events.

This KPi measures the broader business community’s assessment of the value of tourism to Western Australia. The KPi has 2 targets; one relating to tourism enhancing the unique WA lifestyle and one relating to tourism supporting the natural environment.


Results

2010-2011Target

2010-2011Actual

2009-2010Actual

2008-2009 Actual

80% of the broader business community agree that tourism enhances the

unique WA lifestyle.

80% of the broader business community agree that tourism supports the

natural environment.

92%

92%

87%

88%

This KPi indicator was approved for first reporting

in 2009-2010.

notes:

i. Measured through the Business sentiment research.ii. conducted through a telephone survey of senior business people in government, tourism and other industries across

Western Australia.iii. interviewing was conducted in May 2011.iv. The KPi measure is based on a sample size of 400 business people.v. response rate for the survey was 43%.vi. The confidence interval is +/- 5%


68

Key efficiency indicatorsKey efficiency indicators assist with the assessment of agency service delivery. They monitor the relationship between the service delivered and the resources used to produce the service.

4. ratio of Tourism WA’s marketing spend to visitor spend This KPi measures the efficiency with which Tourism WA uses its destination marketing funds to market Western Australia and deliver increased visitor spending into the state’s economy.


Results

2010-2011Target

2010-2011Actual

2009-2010Actual

2008-2009 Actual

$1 : $130.19 $1 : $165.58 $1 : $163.63 $1 : $183

notes:

visitor spend

i. The results of the national visitor survey (nvs) and the international visitor survey (ivs) are released by Tourism research Australia (TrA) each quarter and figures are reported for the latest 12 month period (i.e. year ending (ye) March 2011 in this instance).


iii. spend information is sourced from the Tourism expenditure research Program, provided by Tourism research Australia. The expenditure figures are based on responses from the national and international visitor surveys for the visitor’s entire trip. The regional expenditure model allocates visitor expenditure to specific tourism regions to determine spend estimates for each of Australia’s states.

iv. ye March information is used as survey information for ye June is not available until mid september.

v. sample size for Western Australia domestic is 3,979 and international 5,478.

vi. sample size for Australia domestic is 34,675 and international 39,723.

vii. confidence intervals for Western Australia domestic is +/-4.6% and international +/-6.1%. (These confidence intervals are provided by Tourism research Australia with their regional estimates)

viii. confidence intervals for Australia domestic is +/-0.5% and international +/-0.5%. (These confidence intervals are not provided by Tourism research Australia, and are instead calculated by Tourism WA based on total sample sizes)

ix. The response rate for the international visitor survey is 75% and the national visitor survey is 46%.

x. visitor spend comes from leisure, business, visiting friends and relatives and education.

Marketing spend

xi. Marketing spend for 2010-2011 includes income and overhead costs.

xii. As in 2009-2010, the Perth convention Bureau funding of $3.3 million has been removed from the budget/marketing spend figure.

xiii. Marketing spend excludes all transition funding except the $1.0 million provided for the WA visitor centre.

5. event Tourismratio of Tourism WA event spend to the value of direct expenditure and media impact generated by events (current year)

This KPi measures the efficiency with which Tourism WA uses its funds to sponsor events that generate direct expenditure (revenue) into the state’s economy and generate valuable media impact to encourage future visitation.


69


Results

2010-2011Target

2010-2011Actual

2009-2010Actual

2008-2009 Actual

$1: $3.36 $1 : $3.46 $1: $3.72 $1: $5.35

notes:

i. economic impact is defined as the amount of new money that enters the WA economy as a direct result of an event (i.e. the money would not enter the economy if the event was not held).

ii. Media impact is defined as the dollar value of Western Australian tourism imagery and branding (including video postcards of WA tourism destinations, on-screen graphics and signage) integrated into television production related to the events. it is measured by an independent media evaluation company.

iii. Media impact is only measured where exposure is secured in one or more of Tourism WA’s active or active emerging markets. The majority of television product secures significant exposure in a broad-range of markets outside of Tourism WA’s identified priorities.

iv. event spend for 2010-2011 includes income and overhead costs.

v. event spend excludes all transition funding that was provided to restructure the agency in 2010/11.

6. Total cost in industry Development* as compared to percentage of visitor satisfaction.This KPi measures the efficiency with which Tourism WA uses its industry Development* funds to improve the state’s product and service offering in a competitive environment. if the tourism industry, infrastructure and product base are improved, then visitors will have a higher quality experience. This will result in great visitor satisfaction levels and in turn more return visitation.


Results

2010-2011Target

2010-2011Actual

2009-2010Actual

2008-2009 Actual





notes:

i. visitor expectations are measured through the visitor expectation and experience research.

ii. This is conducted through a face-to-face survey of intrastate, interstate and international visitors conducted in key hubs over the five tourism regions in WA.

iii. interviewing takes place across the full year to address seasonality issues. Data is analysed and reported annually.

iv. The KPi measure is based on a sample size of 401 visitors for 2010-2011.

v. This was made up of 131 intrastate, 125 interstate and 145 international visitors.

vi. The response rate for 2010-2011 was 80%.

vii. The confidence interval for the sample of 401 interviews is +/-5%.

viii. industry Development* spend for 2010-2011 includes income and overhead costs.

ix. industry Development* spend excludes all transition funding that was provided to restructure the agency in 2010/11.

*in the 2010/11 restructure of Tourism WA, industry Development was disbanded and replaced by the operating division infrastructure and investment. from 2011/12 the KPis will speak of investment and infrastructure spend.


70

4.3 MINISTERIAL DIRECTIVESSection 16 (2) of the Western Australian Tourism Commission Act 1983 requires that the text of any written directions from the Minister are to be included in the Annual Report. There were no such directions received during 2010-11.

4.4 OTHER FINANCIAL DISCLOSURES4.4.1 PRICING POLICIES OF SERVICES PROVIDEDTourism WA is part of a collaborative platform between the Australian Tourism Data Warehouse (ATDW), Tourism Australia, and the State Tourism Organisations for the collection, quality assurance and storage of electronic data and images about Australian tourism-related businesses for national distribution to Australia.com, State and private enterprise websites for consumer use.

ATDW holds 6,196 WA listings across accommodation, tours, hire, transport, attractions, events, towns, and places of interest. It is the most comprehensive listing of WA tourism-related businesses and information available. These listings are made up of free and paid product listings. There are 5,548 free listings which comprise events, towns, places of interest, and destination content.

The remaining 648 products form part of the WA Tourism Network (WATN), which is a paid membership model operated by Tourism WA. In 2010-11 membership costs for the WATN were: core membership $373 (inclusive of GST) and non-core membership $128 (inclusive of GST). Core membership refers to accredited accommodation, tour, hire, attraction and transport businesses. Non-core membership covers non-accredited listings such attractions who are exempt from accreditation, retailers and restaurants. All WATN members are provided with a comprehensive listing in the Australian Tourism Data Warehouse which enables their product information to be listed on a variety of tourism websites, including westernaustralia.com.

4.4.2 CAPITAL WORKS

Asset Replacement ProgramTourism WA continued its asset replacement program during 2010-11. This consisted of a replacement telephone system and the development of a mobile phone application.

4.4.3 EMPLOYMENT AND INDUSTRIAL RELATIONS

Staff profile2010 2011

ClassificationFull Time

EquivalentsFull Time

EquivalentsMales % Females %

Level 9 & above 5 5 60 40Level 8 11 12.9 54 46Level 7 11.9 12.8 31 69Level 6 25.1 21.9 46 54Level 5 20.4 18.7 37 63Level 4 16.4 9.6 20 80Level 3 8.3 8.8 11 89Level 2 7.2 6.2 100 0Level 1 3 0 0 0Overseas 5 2 100 0Total 113.3 97.9 37 63

Notes: As at June 30, 2011. Data excludes casuals, employees seconded-out not paid by Tourism WA, employees

on unpaid parental leave and leave without pay and seconded-in personnel not paid by Tourism WA. Data includes

seconded-in personnel paid by Tourism WA.


71

Staffing developmentThe Human Resources branch regularly reviews corporate policies and procedures, including recruitment and selection practices.

This year Tourism WA supported employee development by:

• Conducting the Accountable and Ethical Decision-Making Program for all Tourism WA staff. This training was developed to raise levels of awareness on issues relating to accountable and ethical decision-making in the Western Australian public sector. The program provides participants with information about accountability requirements to better equip them to deal with situations/issues that they may encounter.

• Funding memberships to professional associations for staff, including becoming a corporate member of the Young Australian Tourism Association.

• Supported secondments to other WA public sector agencies, providing employees with the opportunity to gain on-the-job knowledge and experience in a different working environment and often in a more senior role.

• Individual training and development as identified by manager and employee within local work units.

The promotion of employment and work experience opportunities continued with student placements during the year to help individuals considering a career in the tourism industry.

As part of the Department of Treasury and Finance’s Shared Services corporate reform program, Tourism WA’s transactional corporate services were rolled into the external Shared Services Centre in December 2009.

Workers’ compensationTourism WA continues a practical claims management approach of focusing on injury management and rehabilitation. To June 30, 2011, no workers’ compensation claim was lodged and there was no lost time.

Information on how to lodge a workers’ compensation claim is provided by the Human Resources branch on a proactive basis following the reporting of any occupational safety and health incidents.

4.5 GOVERNANCE DISCLOSURES

SHARES IN SUBSIDIARY BODYTourism WA has shares in the Australian Tourism Data Warehouse Pty Ltd. More details are provided in the Investment section of the Financial Statements.

SENIOR OFFICER INTERESTDuring the year, Tourism WA entered into transactions with an entity in which a senior officer is also a Director, Partner or member of the Executive. All transactions occurred within normal supplier relationships on terms and conditions no more favourable than those that would be adopted if dealing at arm’s length.

Senior Officer Position Held Supplier Total Amount

Howard Cearns Commissioner Little Creatures Brewing Pty Ltd $2,590.00

Alistair Donald Commissioner Freehills $9,295.49

Neville Poelina Commissioner Uptuyu Adventures $5,387.82

Jane McKeon Commissioner Virgin Blue Airlines Pty Ltd $62,373.73


72

4.6 OTHER LEGAL REQUIREMENTS

ADVERTISINGExpenditure on advertising, market research, polling and direct mail

In accordance with Section 175ZE of the Electoral Act 1907, Tourism WA incurred the following expenditure in advertising, market research, polling and direct mail.

2010 - 11 $’000

(a) Advertising agencies 2,961 (b) Market research organisations 1,118 (c) Polling organisations - (d) Direct mail organisations - (e) Media advertising organisations 4,833

8,912

(a) Advertising agenciesHost Consult Pty Ltd 2,955 Digital Dialogue Media Pty Ltd 1 Micromedia Advertising Design 5

2,961

(b) Market research organisationsAEC Group Ltd 59 Department of Resources, Energy and Tourism 365 Metrix Consulting 164 Repucom Pty Ltd 134 Research Panel Pty Ltd 13 Synovate Pty Ltd 340 Taylor Nelson Sofres Australia Pty Ltd 5 West Coast Field Services Pty Ltd 38

1,118

(e) Media advertising organisationsAdcorp Australia Limited 30 Deal Group Media Pty Ltd 476 Deal Group Media Asia-Pacific Pty Ltd 29 Mitchell and Partners Australia Pty Ltd 4,174 Omd (M) Sdn Bhd 41 Omd Singapore Pty Ltd 83

4,833


73

RECORD KEEPING PLANThe State Records Act 2000 requires Tourism WA to have a Record Keeping Plan and to comment in the Annual Report on compliance with the plan.

Tourism WA’s Record Keeping Plan was endorsed by the Executive Management Team and then approved by the State Records Advisory Committee, along with the Record Retention and Disposal Authority and Record Keeping policies. A compliance audit program is in place to audit Tourism WA against the Record Keeping Plan every two years. Tourism WA continues to promote effective record keeping practices internally and provided numerous training sessions depending on user requirements.

Under Section 28 of the State Records Act 2000, no more than five years must elapse between the Record Keeping Plan and its review. With this in mind, Tourism WA is currently reviewing the Record Keeping Plan for 2012–16.

COMPLIANCE WITH PUBLIC SECTOR STANDARDS AND ETHICAL CODESIn accordance with section 31(1) of the Public Sector Management Act 1994, Tourism WA is required to comment on the extent to which public sector standards, the WA Code of Ethics and any relevant Code of Conduct have been complied with.

The management of Tourism WA employees is undertaken in accordance with public sector standards in human resource management and approved public sector policies and procedures.

Compliance area Compliance issues Significant action taken to monitor and ensure compliance

Public sector standards 0 breach claims Human resource recruitment consultants continue to be used for all long-term and permanent selection processes and the subsequent reports are reviewed by the internal human resource work unit before consideration by senior line management.

WA Code of Ethics 0 reports of non-compliance

WA Code of Ethics is part of employees’ induction materials and is also accessible from Tourism WA’s intranet.

Agency Code of Conduct

0 reports of non-compliance

Tourism WA’s Code of Conduct, reviewed and updated in 2009-10, is part of employees’ induction materials and is also accessible from Tourism WA’s intranet.

DISABILITY ACCESS AND INCLUSION PLAN OUTCOMESTourism WA’s Disability Access and Inclusion Plan (DAIP) was developed in accordance with the legislative framework. The six desired outcomes are supported with strategies to address the gaps identified in meeting the legislative requirements which are also informed by the review and consultation undertaken in preparation of the plan.

During 2010-11, the following activities were progressed:

Outcome 1People with disabilities have the same opportunities as other people to access the services of, and any events organised by, a public authority.

Tourism WA is proud of its world-class events and the appeal these events have to national and international


74

visitors. All events sponsored by Tourism WA require the event holder to become aware of the Tourism WA DAIP. The sponsorship agreements state the event holder must “do all things reasonable to ensure there are sufficient facilities at the event venue for persons with disabilities to encourage their attendance at, and maximise their enjoyment of, the event.”

Outcome 2 People with disabilities have the same opportunities as other people to access the buildings and facilities of a public authority.

Tourism WA is currently refitting automatic doors to two of its floors of the 2 Mill Street Perth office to facilitate ease of access to all people. Additionally, building management upgraded the lifts within the building to better support disabled access.

Outcome 3 People with disabilities receive information from the public authority in a format that will enable them to access the information as readily as other people are able to access it.

Tourism WA is currently upgrading its websites to facilitate stronger alignment with W3C online standards. All new online information and functionality implemented by Tourism WA this year has been developed in line with best practice for people with disabilities wherever possible.

The ‘You’re Welcome WA Access Initiative’ is endorsed by Tourism WA, which encourages operators to provide details of their facilities for people with disabilities on their website listings on www.westernaustralia.com. Tourism WA also encourages people to contact the agency if they require information in alternative formats. This message is repeated on both the corporate and consumer websites.

Outcome 4 People with disabilities receive the same level and quality of service from the staff of the public authority as other people receive from the authority.

Staff members of Tourism WA who interact with the public receive awareness training to enable them to assist visitors with a disability.

Outcome 5 People with disabilities have the same opportunities as other people to make complaints to Tourism WA.

Tourism WA’s website provides a variety of feedback mechanisms for people with disabilities to lodge grievances and comment on tourism-related matters. In addition, existing complaint mechanisms were reviewed to ensure they meet the needs of people with disabilities.

Outcome 6 People with disabilities have the same opportunities as other people to participate in any public consultation by Tourism Western Australia.

Tourism WA does not seek public consultation directly, rather through survey organisations and other research bodies. Tourism WA does however remind these organisations of the requirement under the DAIP, including the ability to provide the same opportunities for people with disabilities to be involved in any public consultation.


75

4.7 GOVERNMENT POLICY REQUIREMENTS

OCCUPATIONAL SAFETY, HEALTH AND INJURY MANAGEMENTTourism WA is committed to providing a safe and healthy work environment for all its employees, contractors and visitors. Tourism WA has a safety management framework in place to ensure a continued high priority and level of accountability for maintaining a safe and healthy working environment.

The Occupational Safety and Health Committee, including the employee representatives, form the key to occupational safety and health consultation within Tourism WA. The members are accessible and effectively utilised by both management and employees in the discussion and resolution of occupational safety and health issues.

An Occupational Safety and Health Self-Audit 2010, using the WorkSafe Plan audit tool, was undertaken in 2010. Recommendations for 2010–2012 focus on management commitment, planning, consultation, hazard management and training.

To assist staff in developing knowledge of their injury management and occupational safety and health responsibilities, Tourism WA provided a one-day Occupational Safety and Health course for its managers and supervisors.

The Critical Incident Management Plan, including the establishment of the Critical Incident Management Team, was developed to guide the response required in the event of a major critical incident to manage any business impact to Tourism WA.

Tourism WA has in place an Injury Management Policy and Guidelines in accordance with the requirements of the Workers’ Compensation and Injury Management Act 1981. The guidelines identify that return-to-work programs are developed in accordance with the Act. The policy and guidelines are available to staff on the intranet.

Tourism WA provides access to a free and confidential employee assistance program, designed to support employees and their immediate family members on work or personal issues impacting them.

PERFORMANCE INDICATORS FOR 2010–2011Target Actual

Number of fatalities 0 0

Lost-time injury/diseases (LTI/D) incidence rate 0 0

Lost-time injury severity rate 0 0

Percentage of injured workers returned to work within 28 weeks. 100% 100%

Percentage of managers trained in occupational safety, health and injury management responsibilities.

50% 63%


76


77

PUBLICATIONSTourism WA produces a wide range of publications which are available to download from www.westernaustralia.com and www.tourism.wa.gov.au or by contacting Tourism WA.

HOW TO CONTACT USTourism Western AustraliaLevel 9 2 Mill Street PERTH WA 6000

GPO Box x2261 PERTH WA 6847

Telephone: 08 9262 1700 Fax: 08 9262 1702

Email: [email protected] Consumer website: westernaustralia.com Corporate website: tourism.wa.gov.au


78

THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY

Tourism Western AustraliaLevel 9 2 Mill StreetPERTH WA 6000GPO Box X2261PERTH WA 6847

Tel: 08 9262 1700Fax: 08 9262 1702

[email protected]

westernaustralia.com tourism.wa.gov.au

ISSN 1834-2418