Real cost of new Gold Coast tourism body as council gets rid of alliances
The Gold Coast City Council will need to spend an eye-watering amount of money to wind-up the city’s individual tourism bodies and replace them with a mega tourism organisation.
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THE council will need to spend almost $1 million to wind-up the Gold Coast individual tourism bodies and replace them with a mega tourism organisation.
Despite Major Events Gold Coast Ltd (MEGC) being promoted for its cost savings, the council will first need to spend money as it closes the door on Surfers Paradise Alliance, Broadbeach Alliance and Connecting Southern Gold Coast.
A report viewed and debated by councillors in closed session predicts “up to $1 million in economies of scales benefits”.
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But it also reveals transition costs “in the order of $850,000”, including $200,000 for office refurbishment and fit-out, and a further $450,000 to wind up the groups.
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“Funds to support this transition would need to be allocated in the 2019-20 Budget,” the report says.
Several risks are identified including the impact on staging key events like the Groundwater Music Festival and Viva Surfers Paradise during this year’s June-July “changeover” for the groups.
Council must also take responsibility for public safety and property at future events.
More than $13 million of the budget money will be allocated to MEGC, including almost $10 million available currently to the alliances.
The City Events Unit (CEU), the council’s inhouse promotional division, will oversee events such as the beachfront markets, busking and Christmas Carols while the MEGC focuses on Blues on Broadbeach, Cooly Rocks On, Groundwater, Surfers Paradise Live and Seafire.
The report details the potential reduction in staff numbers at each organisation but those numbers on “administrative gains” are redacted in the public copy.
A tourism insider said Surfers Paradise Alliance would be most impacted because it had the larger number of permanent staff.
“Every event in there performing will be kept, every event not performing will not be kept,” the tourism insider said.
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“If you spend more than $800,000 to close those alliances, the poorer performers (among the staff) will be cleared off. Decreasing the wastage off the ledger is very, very good.”
Asked how many staff could be retrenched, a City spokesman replied: “The council report anticipates the consolidation of staff from the three entities. How individual staff members are affected will be the subject of discussion with affected staff.”
Southport councillor Dawn Crichlow said the chambers above her office could be used for executive meetings and when Premier Annastacia Palaszczuk visits for major events.
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