Revealed: How much Walsh spends on Mona

THE man who revolutionised Tasmanian tourism, David Walsh, is $41 million out of pocket after running Mona and associated festivals over the past two years.

Dark Mofo and City of Hobart Winter Feast. Picture: Dark Mofo/Lusy Productions

THE man who revolutionised Tasmanian tourism, David Walsh, is $41 million out of pocket after running Mona and associated festivals over the past two years.

A first ever financial report of Moorilla Estate Pty Ltd lodged with the Australian Securities and Investments Commission reveals losses of $23 million in 2016-17 and $18 million in 2015-16.

Mr Walsh’s Museum of Old and New Art opened the eyes of the world to the peculiar delights of Tasmania and initiated a tourism boom that has resulted in more than 1.2 million visitors coming annually coming to the state.

The report reveals 381,052 visitors, an 8 per cent increase, visited the museum, including Mona’s largest exhibition On the Origins of Art during the year.

David Walsh. Picture: Matthew Newton/The Australian

The fifth Dark Mofo festival, which has triggered a change in the mindset of Tasmanians about winter, attracted 444,056 patrons.

Moorilla Estate Pty Ltd was founded in 2006 when Mr Walsh bought the winery at Claremont from the Alcorso family and set up the Moorilla Museum of Antiquities.

Last year the company had revenue of $31.9 million but expenses of $34 million and the $20 million cost of employing 400 employees resulted in the loss.

The company received grants of $3.3 million last year and $2.7 million the year before.

The balance sheet reveals the extraordinary cost of building and expanding Mona with total liabilities listed at $154 million and net liabilities of $124 million.

A number of Mr Walsh’s companies are creditors including Moo Brew, Family Art group, Mona NOLA Inc and Art Processors, owed liabilities totalling $11.3 million.

“The related party loans were largely provided to enable discretionary capital works and art acquisitions,” the report said.

Moorilla Estate Pty Ltd recently opened the $20 million Pharos building and is seeking approval for a hotel and high rollers casino.

The Commonwealth Bank has extended a loan and line of credit totalling $9.3 million while Mr Walsh’s Downward Spiral Enterprises (Tas) Pty Ltd is a $132 million lender — up from $83 million the year before.

Mr Walsh, 56, told the Sunday Tasmanian that the future of the operation was fine — while he was alive.

“If it wasn’t I’d close it. It isn’t compulsory. It’ll very likely be fine after I am dead,” he said.

“We are planning a hotel/function centre/bunch of other stuff including, possibly, a high roller casino — which probably won’t make money but will give art elite types and poker machine operators the s..ts.”

He said about 12 per cent of visitors were international and about 25 per cent Tasmanians.

Apart from Mona and the festivals, restaurant, bars and accommodation, the company runs a school garden project in New Orleans and supports some arts charities.

Crowd at the Dark Mofo Winter Feast. Picture: SAM ROSEWARNE.

“We consulted on Macquarie Point and submitted a vision which the Government has adopted. We sell our souls to journalists,” he said.

Tourism Industry Council Tasmania chief executive Luke Martin said Mr Walsh’s contribution was an extraordinary act of benevolence.

“The tourism industry has grown by more than $1 billion a year since Mona opened so an estimate of $100 million contribution would be conservative,” he said.

“The impact on Tasmania’s brand, visitation, and the inspiration to others to invest because of the confidence that Mona engenders is almost immeasurable.”

Company auditors pointed out the reliance on Mr Walsh in a note on going concern.

“The entity is economically dependent upon the continued financial support of Mr David Walsh and other related parties,” it said.

“These conditions indicate a material uncertainty that may cast significant doubt on the entity’s ability to continue as a going concern.

“Mr Walsh and other related parties have provided a letter of financial support stating that they will not call on the loans owing for a period of at least 12 months from the date of signing and that they will continue to provide financial support to ensure that the entity is able to meet its obligations as and when they fall due.”

In 2014, when Mr Walsh was attempting to sell a $16 million apartment in Sydney, it was reported that the running costs of Mona were $7 million a year.