Townsville Enterprise 2021-2022 Annual Report

Building the region is everyone’s business.

As a member of Townsville Enterprise, your business will be supported by strategic activities that attract investment, create jobs and improve liveability in the Townsville North Queensland region.

NORTH QUEENSLAND

Townsville Enterprise is only as strong as our members and with your support we can continue to secure the future for Townsville North Queensland.

JOIN WITH US AT TOWNSVILLEENTERPRISE.COM.AU

BURDEKIN

CHARTERS TOWERS

HINCHINBROOK

PALM ISLAND

TOWNSVILLE

Palm Island

TOWNSVILLE

SUMMARY TOWNSVILLE ENTERPRISE

Townsville Enterprise is a not-for-profit, non-partisan, membership-based organisation that represents the local government areas of Townsville, Magnetic Island, Hinchinbrook, Burdekin, Charters Towers and Palm Island.

For over 30 years, Townsville Enterprise has played a critical role in leading the economic progress for the Townsville North Queensland region. As the peak economic development and destination marketing body, Townsville Enterprise has the remit of securing the future of North

Queensland. This is achieved through strong political advocacy, attracting major investment, promoting the region as a place to visit, invest and live, supporting our members and enhancing our destination through product and experience development.

Townsville

Our vision is to be the most influential and respected advocacy and economic development body in Australia. Our purpose is to secure the future of Townsville North Queensland.

OUR VALUES

Excellence Accept nothing less than quality in everything we do.

Partnerships

Work together, inspire each other and use external membership relationships to achieve strategic priorities.

Creative

Be innovative and imaginative in creating an exciting and vibrant future. Non-Partisan

Strive for what is best for the region – independent of politics. Be transparent, informative and data led.

Kevin Gill Chairman

Claudia Brumme-Smith Chief Executive Officer

CHAIR & CEO MESSAGE

Reflecting on the year that was, it is fair to say that whilst the worst of the pandemic was behind us, this was the year that the region, State and Nation had to come to grips with living with COVID-19. Whilst it was a year for recovery and rebuild, the realities of new strains, unforeseen snap lockdowns, social disruption and economic uncertainties were still prevalent.

No-one could have predicted the fallout from a global pandemic would lead to nation-wide labour shortages, supply-chain challenges and a housing crisis; all of which are real issues that Townsville North Queensland is not immune to. Despite this, throughout the 22FY the pandemic continued to demonstrate the economic stability of Townsville North Queensland, a resilience that is born from our strength in industry diversity.

This was a narrative that we continued to deliver to all levels of Government through our Advocacy Program. We have consistently said that Townsville North Queensland holds all the pieces of the puzzle to support the recovery and future prosperity of not only the state but Australia. Our message to “Unlock the North” to help the region realise its full potential rung strong in the corridors of State and Federal Parliament as we delivered a program of infrastructure, support measures and policy reform. Delegations were held throughout the year to 1 William Street ahead of the State budget and a virtual delegation was hosted with all sides of federal politics prior to the 2022 election.

The Federal Election saw the region secure commitments in excess of $325M across projects including Hydrogen Master planning, Lansdown Eco-Industrial Precinct, industrial land in Charters Towers and NQ SPARK. The election also confirmed committment to the, $10B Reinsurance pool and $2B NAIF upgrade. These projects will go on to deliver billions of dollars in gross

regional product and tens of thousands of new future-proven jobs over the coming decades.

We acknowledge our Principal Partner, Townsville City Council, for its support over the past 12 months and the united approach of the North Queensland Regional Organisations of Councils, our media partners, volunteer Board, and industry members in delivering our region’s strong advocacy program.

After three years of work, Townsville Enterprise delivered the final Business Case for Hells Gates Dam in May 2022. The detailed Business Case brought together detailed technical studies, market testing, economic feasibility, and cultural and social impacts. It demonstrated the project’s viability delivering a Benefit Cost Ratio of 1.05, a potential economic contribution of $6B and 3,300 new jobs. Securing additional large-scale water infrastructure will be one of the single biggest enablers for our region. Townsville Enterprise’s advocacy on the project saw the Morrison Federal Government announce a $5.4B funding package to build the nationally significant Hells Gates Dam Project, with commitment out past the current estimates. A change of Government

at the 2022 election has seen this financial commitment put on hold and advocacy to secure the required funding to progress to the next stages continues.

We are acutely aware of the opportunities in Townsville North Queensland when it comes to green energy production and are certain that this region will play a critical role in helping the State and Australia achieve Net Zero carbon targets. It has been widely acknowledged that Townsville North Queensland is home to the best renewable energy assets and has all the right ingredients, and ability, to secure the nation’s future in this sector. As such, Townsville Enterprise has led the establishment of the North Queensland Hydrogen consortium, to help build momentum and connections in the hydrogen industry. In November 2021, the cluster was granted NERA status, making the region one of only 18 across the nation and the only one in North Queensland. In April 2022, Townsville Enterprise hosted the region’s first Green Energy Forum, an event which will become a staple on the annual events calendar. In May 2022, NQH2 led by Townsville Enterprise secured $70M in funding support for enabling common user infrastructure and Hydrogen Master planning.

Rebuilding and growing the visitor economy remained a key priority for Townsville Enterprise as the region and country emerged from the pandemic. Our destination marketing campaigns continued to deliver strong results for industry, attracting over 11,000 new visitor bookings and generating in excess of $10M in visitor spending. PR coverage saw Townsville North Queensland in the spotlight across a multitude of publications including Australian Traveller, Queensland Weekender, TODAY Show, The Courier Mail and Caravanning Queensland.

Across the year aviation partners announced an additional 400,000 new seats into Townsville from key markets including Brisbane, Sydney and Melbourne, as well as new routes from Adelaide, Rockhampton and the Sunshine Coast. The commencement of this new capacity will roll out over several months; however, it has prompted an opportunity for Townsville North Queensland to cement its position as a holiday destination. As such, Townsville Enterprise commenced a rebrand process led by an industry steering committee and in partnership with global branding experts The Lab. In-depth consumer research took place over more than six months to help guide the rebrand which is planned for launch in Q1 2023. Across surveys, focus groups and more than 230,000 online conversations, the development of the Townsville North Queensland brand positioning will provide the framework for future marketing implementation.

Further to marketing activity, Townsville Enterprise played a strong role in industry development in the tourism sector, securing $130,000 from the State Government to undertake a Tourism Masterplan of Magnetic Island. The final Magnetic Island Tourism Masterplan is anticipated

to be released in Q1 of 2023 but commenced in FY22 with the appointment of a steering committee and a significant program of community and industry consultation. Existing tourism operators were also offered a series of industry development programs including the Transformational Experiences Program, Tourism Futures Forum and Best of Queensland training.

As previously noted, worker shortages have been a significant challenge across the breadth of industries which make up the Townsville North Queensland economy. Membership surveys and engagement with the local business community identified sourcing skilled and unskilled workers was their number one challenge in the immediate and medium term. Given the broad reach of this challenge across the nation, Townsville Enterprise led an advocacy campaign with the federal government to secure a Designated Area Migration Agreement (DAMA), a initiative which provides fast-tracked, tailored migration pathways for people to the region –providing streamlined pathways to permanent residency and providing age, language and skill concessions for high demand roles. In April 2022, Townsville Enterprise was pleased to be announced as the Designated Area Representative to process and endorse DAMA applications, applications accepted from 1 July. With almost 200 identified positions included within the DAMA and locations from Townsville through to Mount Isa covered, the Townsville and North Queensland DAMA is one of the largest in the country.

2021 saw the final year of our Townsville Enterprise Strategic Plan, with a revised Plan endorsed by the Townsville Enterprise Board in May 2022. The new Strategic Plan provides a vision for the organisation to be Australia’s most

respected and influential advocacy and economic development body, underpinned by four strategic pillars: Politically Powerful, Economic Leadership, Valued and Engaged Membership, and Capable and Accountable. The 2022 – 2027 Strategic Plan confirms Townsville Enterprise’s purpose is to secure the future of Townsville North Queensland and provides the pathway to achieving this vision.

Whilst Townsville Enterprise may be leading the charge in securing the future of North Queensland, we cannot operate alone and we are strengthened by our partners and members. In the 22FY we saw the organisation’s strongest profile of members in history, increasing by 24% and achieving the highest Net Promoter Score in more than five years. We acknowledge the ongoing loyalty and support of all our members and were privileged to be able to celebrate the organisation’s achievements alongside our partners and stakeholders at Townsville Enterprise’s 30th anniversary, held very fittingly at Queensland Country Bank Stadium – the venue that Townsville Enterprise and our partners secured after many years of advocacy.

Moving into the new financial year, Townsville Enterprise remains steadfast on delivering advocacy, investment attraction, projects, and destination marketing that will secure our region’s economic prosperity.

We look forward to continuing to work with our partners to drive an agenda that attracts large-scale investment, creates new jobs, improves livability, and increases visitor spending.

21|22 COMMITTEES

FINANCE AUDIT & RISK

Kathy Danaher, Chair

Ark Energy Corporation

Shawn Anderson

Queensland Country Bank

Peter Duffy wilson/ryan/grose lawyers

Luke Guazzo

Northern Australia Primary Health Ltd

OBSERVERS

Claudia Brumme-Smith Townsville Enterprise Limited

Tracey Holmes Townsville Enterprise Limited

ECONOMIC DEVELOPMENT STRATEGIC

ADVISORY

Ranee Crosby, Chair Port of Townsville Limited

Mark Bogiatzis Great Northern Laundry

Jaqueline Bohn Townsville City Council

Cr Mary Brown Hinchinbrook Shire Council

Brendan Cook Townsville Airport Limited

Stuart Cunningham Core Developments NQ

Colin Lea Carey Accountants Pty Ltd

Paul Taylor Glencore

Carl Valentine PVW Partners

Claudia Brumme-Smith Townsville Enterprise Limited

Tracey Holmes Townsville Enterprise Limited

OBSERVERS

Wayde Chiesa Regional Development Australia

Marie-Claude Brown NQROC

Paul Holden Department of State Development, Manufacturing, Infrastructure and Planning

Ross McLennan Townsville Chamber of Commerce

Catherine Robson MITEZ

TOURISM & EVENTS STRATEGIC ADVISORY

Michael Jones, Chair

The Ville Resort-Casino

Jaqueline Bohn Townsville City Council

Chris Briggs SeaLink Travel Group (resigned 05/2022)

Cr Mary Brown Hinchinbrook Shire Council

Amanda Byrne Queensland Airports Ltd

Angus Campbell Riverside Marine (resigned 20/10/2021)

Mark Evans Paronella Park

Jacqui James-Eggins

North Queensland Toyota Cowboys Norman Jenkin Tourism Magnetic Island (resigned 05/2022)

Associate Professor Laurie Murphy James Cook University

Madonna Simmons Get Branded (resigned 6/09/2021)

Claudia Brumme-Smith Townsville Enterprise Limited

Lisa Woolfe Townsville Enterprise Limited

OBSERVERS

Kevin Gill

Townsville Enterprise Limited Chair

Marie-Claude Brown NQROC

Jamie Fitzpatrick FGH Group

Ross McLennan Townsville Chamber of Commerce

INDUSTRY SNAPSHOT

Townsville Enterprise is only as strong as our membership, and like the diversity of our economy, our membership is representative of businesses of all sizes and industry sectors. The national recovery from COVID-19, global political tensions and the rising of inflation created challenging economic conditions for Australia, however, Townsville North Queensland’s diverse and stable industry base saw the region perform well across almost all industry sectors.

HEALTH

Townsville is home to the largest emergency department outside of South East Queensland, and as the largest employment industry in the region supporting more than 11,000 local jobs, it plays a critical role in our economy. In FY22 a $530M expansion for the Townsville University Hospital was announced, with new services launched including an interventional neuroradiologist and pediatric cardiology department. Mater Hospital also announced Townsville is now home to state-of-the-art surgical technology, one of a kind for North Queensland and they continue to invest in a 10-year masterplan.

EXPANSION $530M

TOURISM

Announced for the Townsville University Hospital Expansion

The first half of 2021-22 saw continued travel restrictions, border closures and lockdowns due to ongoing impacts of the pandemic and new COVID-19 variants emerging. Year Ending June 2022 Tourism Research Australia (TRA) data demonstrates the impacts that the pandemic had on our local tourism industry during the FY22 Financial Year with 1.2M overnight visitors and almost $850M in overnight visitor expenditure. Visitor numbers increased by 25% over the year but declined by 11.3% over the three year trend. In comparison, visitor expenditure only saw a 4% decline over the three year trend. Similar results are apparent for the accommodation sector with average occupancy sitting at 64.5%, down 12% in comparison to 2019.

1.2 M VISITORS in overnight visitor expenditure $850M

DEFENCE

Townsville is the largest garrison city in Australia, with the defence industry contributing more than $1.5B to the Gross Regional Product (GRP). During the FY22 year, Port of Townsville announced an expansion project which will provide an additional six berths able to accommodate all ADF Naval surface platforms including LHDs.

largest garrison city in Australia. is the Townsville Contributing more than $1.5B to the Gross Regional Product (GRP).

AGRICULTURE

The agricultural industry came off the back of FY22 with the fastest increase in produce pricing of the decade. Sugar pricing increased 25.63% and cattle prices rose by 6.73% over this period. This supported the increase of the agriculture share of GRP by 25.18% across the region and saw annual employment in the sector rise by almost 4%. With construction commencing at the Big Rocks Weir near Charters towers, up to 5,000 ha of irrigated agricultural land will become available to support further growth in this sector. Townsville Enterprise successfully delivered the Business Case for Hells Gates Dam in May 2022 which reports a positive BCR (Benefit Cost Ratio) and could provide more than 60,000ha of prime agricultural land, making North Queensland the largest contributor to Queensland’s irrigated crop output.

Construction commencing at the Big Rocks Weir up to 5,000 HA

Charters towers

of irrigated agricultural land will become available to support further growth in this sector

MINING & MANUFACTURING

The North and North west Queensland region holds amongst the world’s largest deposits of new economy minerals including Lead, Zinc, Copper, Gold, Phosphate, cobalt and vanadium. FY22 saw record high commodity prices with Copper reaching $13,900 per MT in February 2022, Zinc reached $5,900 per MT in April 2022 and Nickel reached $46,200 per MT. Copperstring 2.0 formed a key part of Townsville Enterprise’s advocacy throughout the Financial Year with the project offering the unprecedented potential to unlock up to 33 GW of clean, renewable energy and a potential $740B worth of untapped critical minerals which would support the Nations green industry revolution.

The project offering the unprecedented potential to unlock up to 33 GW of clean, renewable energy and cheaper and green mining in the Northwest Mineral Province.

ENERGY

Townsville North Queensland is widely acknowledged to have the best combined wind and solar outputs in eastern Australia. With the region on the doorstep of the green energy revolution and more than $50B worth of renewable energy projects identified for the next two decades in North Queensland, the energy sector is expected to grow considerably and Townsville North Queensland will be critical to the nations transition to net-zero. Across the FY22 year the sector experienced more than 13% increase in jobs and contributed $1.4B to the local economy. Along with our partners, Townsville Enterprise is leading the way in supporting the region’s green energy transition, with the region being recognised as a NERA Hydrogen Cluster in April 2022.

Copper String 2.0 formed a key part of Townsville Enterprise’s advocacy.

Townsville has the best combined wind and solar outputs in eastern Australia.

EDUCATION

Townsville North Queensland supports more than 10,000 jobs within the education sector, making it one of the largest employers in the region. Whilst the number of international students has declined as a result of COVID, James Cook University saw overall annual student demand increase by 3%. The University remains one of the best for graduate job success and continues to be ranked as the only Australian university to be ranked number one in the world for any subject – namely marine and freshwater biology.

The regions provide high quality education from early childcare through to tertiary education, offering more than 100 primary and secondary school options across the region. In FY22, stage one of an expansion for the trade training school TechNQ was completed offering an accommodation, hospitality & Health training centre as well as boarding facility.

EDUCATION SECTOR

One of the largest employers in the region.

Expansion for the trade training school TechNQ was completed offering an accommodation, hospitality and health training centre as well as boarding facility.

Townsville Enterprise is only as strong as our membership, and like the diversity of our economy, our membership is representative of businesses of all sizes and industry sectors.

Keep up to date with industry and regional economic performance on our Economic Dashboard.

We love working with Townsville Enterprise, because they are a great voice for the North. It’s a lot easier when we head to Canberra or Brisbane as a group and say we need your help with this project.

CR JENNY HILL, MAYOR OF TOWNSVILLE

ADVOCACY

Advocacy was at the forefront of activities for Townsville Enterprise throughout the 2020/21 Financial Year.

The May Federal Election and October budget were the centerpieces of this year’s political advocacy campaign. 2022 presented a number of new opportunities for Townsville Enterprise to continue the drive to unlock the north and secure the investments and policy positions that will deliver growth and prosperity for our region in years to come. Hydrogen, energy transmission, water security and the emerging green industrial sector have all featured heavily in our campaigning this year.

During the election campaign we secured commitments in excess of $325M for our region, which will go on to deliver billions of dollars in gross regional product and tens of thousands of new industry future proofed jobs over the coming decade.

HIGHLIGHTS

BRISBANE DELEGATION

Delegations in December and April accompanied the Unlock the North Budget submission ahead of the Treasurer’s State Budget and corresponding visit to Townsville in July. Skills, housing affordability, water resource management and the continuing development of the green hydrogen sector were key focusses of our State Government advocacy.

FEDERAL ELECTION ADVOCACY INCLUDING VIRTUAL DELEGATION

COVID restrictions prevented our traditional Canberra delegation going ahead, with a highly successful virtual delegation taking place instead. We met with senior Cabinet and Shadow Cabinet Ministers including the Prime Minister, the offices of the Treasurer, Ministers for Home Affairs, Trade and Tourism, Infrastructure, Energy and Defence.

The delegation presented the Unlock the North investment framework to help the Government and Opposition shape their election commitments to the needs of our region.

PROJECTS SECURED

This year we saw over $70M funding secured for the development of common user hydrogen infrastructure, additional funding from State ($26M) and Federal ($22M) Governments for the Lansdown Eco-Industrial Precinct, $32M committed to NQ Spark, and smaller parcels of funding supporting industrial land development in the Charters Towers Region and bio-fuels industry development in the Burdekin Shire.

ADVOCACY

CYCLONE AND RELATED FLOOD DAMAGE REINSURANCE POOL

In October 2021, Townsville Enterprise published a submission to the Federal Treasury on their draft Reinsurance Pool legislation. The submission identified that the legislation provided adequate coverage for homeowners, but strata buildings and commercial properties with a threshold over $5M had been excluded. Questions were also raised about the effectiveness in delivering savings to residents North Queensland due to the funding structure and nature of the pool. In February 2022, the Federal Government released the final design of the Reinsurance Pool which would come July 2022. The Reinsurance Pool will undertake a review in the 12 months following its implementation to assess if it has met its purpose in resolving the insurance crisis in Northern Australia.

QUEENSLAND RENEWABLE ENERGY ZONE

In this submission, Townsville Enterprise reviewed the Queensland Renewable Energy Zone Technical Discussion Paper and found that the Northern QREZ had underestimated the regions significant wind and energy resources that exceed the 500MW capacity that was outlined in the QREZ plan. The submission also advocated for North Queensland to be declared a hydrogen export hub, particularly as the North Queensland Hydrogen Consortium has been officially recognised as a NERA hydrogen cluster. The submission also highlighted the important role transmission plays in Queensland’s renewable energy transition, with projects like CopperString 2.0 allowing the renewable energy resources from Townsville to Mount Isa to be officially connected to the energy grid.

QUEENSLAND RESOURCES INDUSTRY DEVELOPMENT PLAN

In response to the Department of Resources Queensland Resources Industry Development Plan, Townsville Enterprise responded to some of the concerns with the plan such as the lifespan and ensuring that the plan remained relevant to this

dynamic industry. There were also concerns regarding the time frame for the actions included, as the plan lacked commitments to timeframes beyond the next two years, which also contributed to concerns about the plans longevity. The submission also sought greater support for communities in supporting the economic diversification of communities built around mining and to increase the community resilience postmine closure. The Resource Plan was heavily focussed on new economy minerals, therefore Townsville Enterprise advocated for the plan to support and develop existing mines and commodities that have supported the state for so long and will continue to do so into the future.

PUBLIC LIABILITY INSURANCE

In November 2021, Townsville Enterprise had the opportunity to respond to the Small Business and Family Enterprise Ombudsman’s Review of Public Liability Insurance for Tourism Operators. This submission addressed the challenges faced by local operators in both obtaining and affording public liability insurance. Adventure-based tourism experiences were identified as being the most at risk segment in relation to access and affordability of insurance, with potential for this trend to extend into more mainstream businesses like dive operators, construction industry, events and more. This issue has been exacerbated due to ‘no win, no fee’ litigation practises resulting in a major increase in claims and affecting how insurance companies measure risk and their appetite to insure perceived ‘high-risk’ activities.

The proposed solutions posed by Townsville Enterprise included establishing a DMF as a (Discretionary mutual Funds) interim solution, whilst also reviewing ‘no win, no fee’ litigation arrangements, the introduction of capped liability payouts, government intervention into State and Federal legislation for torts and associated liability payments, as well as government funded educational programs for tourism operators to support increased risk mitigation measure within their business.

HELLS GATES DAM

In May 2022, Townsville Enterprise delivered the final Detailed Business Case for Hells Gates Dam and Irrigation Scheme. This final milestone for the project was the culmination of three years of project work led by Townsville Enterprise and delivered in collaboration with SMEC and KPMG.

The Detailed Business Case was funded by the Federal Government through the North Queensland Water Infrastructure Authority and managed by the State Government through the Department of Regional Development, Manufacturing and Water. It brought together detailed technical studies, market testing, economic feasibility, and cultural and social impacts.

The Detailed Business Case demonstrates the projects viability, ultimately proposing a Benefit

21|22 HIGHLIGHTS

Milestone 8 (100% reference design) and Milestone 9 (Draft Business Case) delivered 31 January 2022

Cost Ratio of 1.05 and a potential economic injection of $6B to the region as well as 3,300 new jobs.

Market assessment was also undertaken with a direct market demand study conducted with existing landholders and twenty of Australia’s largest agricultural investment firms.

The research and engagement confirmed that there is sufficient demand for land and water offerings.

Milestone 10 (Final Detailed Business Case) delivered 6 May 2022 to State Government

The Morrison Federal Government announced a $5.4B funding package to build the nationally significant Hells Gates Dam Project on 23 March 2022 with commitment out past the current estimates

STATUS

• The business case is completed and is available on the Townsville Enterprise website.

• Advocacy continues for water security for North Queensland after the new government withdrew the commitment.

Working together with Townsville Enterprise and Tourism and Events Queensland on the Transformational Experiences Mentoring Program has provided us with a professional insight into improving the way we do business through a knowledgeable and experienced mentor. Through periodic consultation, our mentor made us accountable for highlighted changes which needed to be made in order to improve the client experience from booking to coming onboard with Wild Hinchinbrook Adventures.

The connections I made with fellow mentees in the program has also allowed me to make changes to my business that better suit my lifestyle and ultimately make the booking journey easier for future customers. It was a great learning opportunity and we will continue working with TEL to promote our business and the Townsville North Queensland Region.

BEN WESTON WILD HINCHINBROOK ADVENTURES

TOURISM INDUSTRY DEVELOPMENT

Townsville Enterprise continued to focus on delivering a strong program of industry development and capacity building programs for the Tourism and Events Sector. These activities were centered on supporting businesses, increasing exposure and enhancing the visitor experience. Over the year, more than 25 tourism businesses engaged in individualised industry development opportunities.

21|22 HIGHLIGHTS

THE 2022 TOURISM FUTURES FORUM

More than 80 attendees were welcomed from across the tourism, hospitality, accommodation and events sector and heard from speakers on a range of topics including global trends, the Best of Queensland program, working with influencers, empowering staff and more.

TRANSFORMATIONAL EXPERIENCES MENTORING PROGRAM (TEMP) PROGRAM

Townsville Enterprise partnered with Tourism and Events Queensland to deliver a Transformational Experiences Mentoring Program which is aimed at supporting operators to design and deliver exceptional transformational experiences for their guests and keeping with the Queensland brand direction. In May 2022, seven operators from across the region completed the eight week program which included one on one mentoring sessions to identify barriers and create solutions for improving their customer’s journey.

BEST OF QUEENSLAND

townsvillenorthqueensland.com.au. Working with operators during the 21/22 FY we saw an additional 12 operators bookable and able to be packaged through Townsville Enterprise channels. More than 60% of operators received bookings through our distribution channel.

MAGNETIC ISLAND TOURISM MASTERPLAN

YEAR OF INDIGENOUS TOURISM PROGRAM

At that start of 2022 and with funding through Tourism and Events Queensland, three local Indigenous operators completed a six month mentoring program with Savannah Guides owner, Russell Boswell, to build their capacity in providing indigenous tours and products within the Townsville North Queensland region. Mungalla Aboriginal Tours, Gudjuda Rangers and Sayla V have finished the Program with clear plans to implement new tours and make improvements to existing tours for the 2023 tourist season.

“Thank you for the opportunity to assist these operators and the Townsville region to move closer to offering some exciting new cultural experiences.”

RUSSELL BOSWELL

The Best of Queensland Experiences Program (BOQEP) is an innovative program that guides the Queensland tourism industry to offer best practice experiences. The program is based on an independent set of criteria that incorporates online customer review sentiment, accreditation, social media engagement and online bookability. Working one-on-one with a number of operators and building awareness of the program saw the number of Townsville North Queensland operators part of this program grow from 56 to 63 in the 21/22 FY.

INCREASE IN BOOKABLE OPERATORS

To support regional tourism operators and provide another distribution avenue, Townsville Enterprise continued to develop and sell holiday packages both from within the Visitor Information Centre (VIC) and on

In December 2021, Townsville Enterprise received funding from the Queensland Government to commence a Magnetic Island 2030 Tourism Masterplan. A project steering committee was established to have oversight on the process and was formed to include all key stakeholders, community and industry. A significant program of community, industry and investor engagements were undertaken through the 21/22 FY to help inform the final Tourism Masterplan anticipated for release in early 2023

AUSTRALIAN TOURISM EXCHANGE

Townsville Enterprise along with key local tourism operators attended the Australian Tourism Exchange in Sydney to meet with domestic and international trade and wholesale partners. This event was a key opportunity to promote and build awareness of the destinations trade-ready products.

DESTINATION MARKETING

While the profound effects of the pandemic had passed, Townsville Enterprise remained focused on recovery and growth of the visitor economy by maximising our domestic share of voice. Townsville Enterprise achieved this through collaborative campaigns with Tourism and Events Queensland, and standalone marketing activity which achieved significant results for tourism and hospitality operators right across the region.

21|22 HIGHLIGHTS

ALWAYS-ON MARKETING

To increase our ‘always-on’ presence in the digital marketing landscape, Townsville Enterprise delivered a targeted strategy aimed at search and content advertising.

A Search Engine Marketing (SEM) strategy delivered over 53,300 clicks to the website and achieved over 661,000 impressions. Efficiencies for search optimisation targeted owned and competitor key words, which saw a gradual increase in click-through rate by 40% over the course of the campaign.

Complimenting this, an always-on paid content strategy delivered video posts to target audiences by interest segments to continually build retargeting audiences for conversion (sales) messaging. This approach reached over 2.4M people and delivered over 16.5M impressions.

20 DAYS OF HOLIDAYS LIKE THIS

Led by Tourism and Events Queensland, the ‘Days Like This’ campaign was the first phase of a long-term evolution on Queensland’s tourism marketing direction. To stimulate intrastate visitation while borders were closed, the campaign delivered a tactical deals campaign over 20 days which featured offers and competitions for products across the State. Townsville North Queensland received one tourism deal as part of this campaign. Aquascene Charters – Discovery Tour, which Townsville Enterprise managed on behalf of the operator.

Key outcomes:

• 100 x Magnetic Island Discovery Tours for $1 sold out in under three minutes

• Achieved over 26,000 requests/hits to the website in under six minutes

• Statewide, the ‘20 Days of Holidays Like This’ campaign generated $1.65M in media value and $640,000 in publicity value (ASR)

THE GREAT QLD GETAWAY

After months of discussions with the State Government following the local impacts of the COVID lockdowns, Townsville Enterprise’s call for industry support was answered. Tourism and Events Queensland announced a state-wide subsidised holiday discount and flight incentive campaign. Led by Tourism and Events Queensland and heavily supported by Townsville Enterprise, the ‘Great Queensland Getaway’ campaign was the first of its kind, offering discounted experiences, flights and holiday packages to intrastate visitors. Designed to stimulate the tourism economy after lengthy periods of ‘lockouts’, the campaign engaged operators and promoted deal offers via queensland.com.au sending direct leads to operator websites for bookings.

Townsville Enterprise acted as the agent for operators who weren’t resourced to manage the operator portal, and to extend access to operators who may not have been eligible as a single product type (some tour operators, and accommodation partners packaged with experiences).

Key outcomes:

• 10 operators participated in the campaign; 100% facilitated through the Townsville North Queensland booking platform.

• Generated $40,000 worth of bookings in 10 days

BRAND DEVELOPMENT

Throughout most of 2021/2022, Townsville Enterprise has been leading a destination brand review, aimed at developing a strong consumer-led brand to drive visitation, and provide distinction in what is an increasingly competitive domestic landscape.

The region itself has been growing and evolving throughout the pandemic period – having weathered many of the challenges felt by other domestic tourism destinations. This makes a review of the brand more critical than ever to ensure the destination can capitalise on the new products and experiences, optimise our status as an emergent tourism destination and meet the demands of the post-COVID consumer.

Process to date:

• Formation of a steering committee from industry leaders

• Digital intelligence review analysing over 230,000 conversations

• Local stakeholder consultation survey to garner insight and perspective from residents and operators

• Qualitative survey of over 161 domestic travellers

• Co-creation focus groups from key markets

• New brand is anticipated to launch in Q1 2023

PR COVERAGE

In addition to our paid campaign activity, Townsville Enterprise leveraged existing media partnerships, and collaborations with Tourism and Events Queensland, to secure earned media features in major State, national and global travel publications, including:

• Australia Your Way

• Australian Traveller

• Broadsheet (Adelaide)

• Caravanning Queensland

• Courier Mail

• Drift Travel

• Escape.com

• Global Travel Media

DRIVE NORTH QUEENSLAND

• Nomadasaurus

• Queensland Weekender

• The Australian

• The Guardian

• TODAY Show

• Vacations & Travel

As part of a broader regional partnership with Tropical North Queensland, Outback, Whitsundays and Mackay, the Drive North Queensland collaboration continues to promote driving holidays to audiences in South East Queensland, NSW and Victoria.

The purpose of the collaboration was to encourage increased length of stay, and connectivity between the regions.

Key outcomes:

• Social media assets (Townsville North Queensland) reached 172,562 people (accounting for 38.2% of all campaign reach)

• Campaign assets (Townsville North Queensland) were seen 765,024 times

• Generated over 5,182 clicks to Townsville North Queensland content on drivenorthqueensland.com.au

A content partnership was also delivered by Drive North Queensland which brought social media influencers @overlandtravellers to Townsville North Queensland. Achievements for content captured in our region included:

• Social media posts reached a total of 28,285 people

• Social media story content reached a total of 66,479

• Two YouTube vlogs have achieved a combined watch time of 875.1 hours

CASE STUDY: EARNED COVERAGE THROUGH RUGBY CHAMPIONSHIPS

In September 2021, Townsville hosted the Rugby World Championships cementing our position as the capital of sporting events in Northern Australia. The event welcomed international teams for a double-header at Queensland Country Bank Stadium. A close-to-sell-out crowd of over 23,000 tickets saw a $4M injection into the local economy, with close to 60% of event goers being visitors to the region.

Leveraging the opportunity to showcase the destination in the national and global broadcast, Townsville Enterprise, in partnership with Nine, delivered a two-minute destination feature story; securing major sporting personalities such as Lote Tuqiri, Johnathan Thurston, Lauren Nicolson and the late Andrew Symonds.

The global broadcast, distributed via Nine and Stan, reached a potential audience of over 45 million people and showcased experiences on the reef, Magnetic Island and within Townsville. Additionally, Townsville Enterprise worked with the Wallabies (reaching 693,482 followers) to develop bespoke social media and local media opportunities.

CARAVAN AND CAMPING EXPOS

In conjunction with Drive North Queensland, Townsville Enterprise participated in three Caravan and Camping Expos in Melbourne, Sydney and Brisbane. Volunteers from the Visitor Information Centre attended two of the shows to promote Townsville North Queensland to the expo attendees. Over 130,000 people attended the three shows in 2022 and Townsville remained a popular location for the Caravan and Camping market.

AVIATION CAMPAIGNS

Leveraging awareness in market derived from previous campaigns, Townsville Enterprise and Queensland Airports partnered to deliver several tactical campaigns with Virgin Australia, Jetstar, and through online travel agency Webjet.

Overall, these airline campaigns secured 9,386 pax inbound bookings.

Townsville

During a year of uncertainty and recovery, leaning on our relationships and collaborations within industry was crucial for Aquascene. Our region was “re-discovered” post covid, so it was about navigating our way forward whilst we were “holding onto our hats.” Marketing our region was front of mind for us all but finding the time to do so was challenging when we were so busy in the day to day running of our business.

Aquascene was privileged to be selected for the TEQ $1 Deal “Days Like This” state-wide campaign. We reached out to the team at Townsville Enterprise to guide and assist us through the setup process with this campaign. From the outset, they created, designed and handled everything for us, thank goodness because the 100 x $1 tour tickets sold out in under three minutes! My website and my phone would never have coped, alongside trying to answer the calls and a possible crashed website. It was a proud moment for us all, showing how great things happen when we all work together. Townsville Enterprise have been instrumental in the ongoing growth, success and resilience of our business, always a guiding light and unwavering support. Thank you team TEL, each and every one of you, passionate, committed and vibrant, tourism in our region would be lost without you.

STEPH HINKS AQUASCENE CHARTERS

MEMBERSHIP & EVENTS

Townsville Enterprise delivered a strong calendar of business events including Townsville Bulletin Business Breakfasts, Townsville North Queensland Tourism Futures Forum, North Queensland Mining and Resources Industry Forum, Townsville Enterprise Annual General Meeting and the inaugural Green Energy Futures Forum.

Townsville Enterprise also celebrated its 30-year anniversary with a member event and new office relocation with a Member Mixer. Across the year, the organisation held 14 events which saw 1,450 attendees across our events program.

21|22 HIGHLIGHTS

24%

Heightened engagement with members saw the lowest membership cancellation rate and highest number of new members in more than five years. 33 new members were welcomed in the 21/22 FY.

NORTH QUEENSLAND TOURISM AND EVENTS AWARDS

INAUGURAL GREEN ENERGY FUTURES FORUM

In April 2022, Townsville Enterprise held its inaugural Green Energy Futures Forum. This saw over 80 attendees come together to discuss how our region is developing into Northern Australia’s green energy powerhouse.

In September 2021, Townsville Enterprise hosted the North Queensland Tourism and Events Awards with a room of 200 operators and members of the business community. This event provided the opportunity to celebrate and showcase the importance of this industry to North Queensland.

Membership satisfaction at an all-time high, with the highest Net Promoter Score in more than five years!

Shoutout to Townsville Enterprise for an outstanding inaugural Green Energy Futures Forum. Collaboration with fellow industry associations will unlock synergies early for hydrogen industry development. A captivating line up in a remarkable location. Thank you for your warm welcome.

HEIDI BREEN H2Q

GET CONNECTED

Townsville Enterprise events aim to maximise our member’s potential through engagement, exclusive content, access to the latest opportunities, and high-level networking. By creating a platform where industry professionals can meet and connect with one another, we enable businesses to establish long-term strategic relationships.

As a member, you have access to free and/ or discounted event tickets as well as an opportunity to co-host or sponsor an event with Townsville Enterprise.

30-Year Anniversary Event

In August 2021, Townsville Enterprise celebrated its 30th anniversary at the Queensland Country Bank Stadium with almost 200 members, partners, key stakeholders and the broader North Queensland business community.

Townsville

CLAUDIA BRUMME-SMITH CEO TOWNSVILLE ENTERPRISE

REGIONAL DEVELOPMENT

ECONOMIC SNAPSHOT

In November 2021, Townsville Enterprise released the Townsville North Queensland Economic Snapshot which provided a regional economic outlook and commentary with key quarterly statistics including unemployment, business confidence, building approvals and tourism performance

ECONOMIC DASHBOARD

Townsville Enterprise unveiled its first Economic Snapshot dashboard to members. The new dashboards adapted the topics of the previous quarter’s Economic Snapshot report and integrated this data and analysis into interactive and visually engaging dashboards. The dashboards allow members to interact with the data captured through Townsville Enterprise to understand how Townsville’s economy is performing in relation to trade, property, tourism, commodity prices and more.

DAMA

Following advocacy and a business case delivered by Townsville Enterprise on 1 April 2022, the Federal Government announced that Townsville North Queensland would be granted a Designated Area

Migration Agreement (DAMA). The DAMA enables fasttracked and tailored migration agreements to support the region’s response to the skilled and unskilled labour crisis.

OPPORTUNITY TOWNSVILLE NORTH QUEENSLAND

In December 2021 Townsville Enterprise released its fifth edition of Opportunity Townsville North Queensland (OTNQ), the annual economic development and investment publication. The publication provided insight into the developing industries, informative overviews of projects recently delivered, under construction, or in various stages of development.

NORTH WEST ROAD TRIP

In September 2021, Townsville Enterprise embarked on a 1,000 kilometer road trip to Mount Isa highlighting to our extensive national stakeholder base the importance of the North West to the future of Queensland and Australia. Across the week we promoted the depth of our region’s mining, resources, and agricultural industries and the opportunities and challenges these sectors face.

The legacy of COVID-19 and other global conflicts has resulted in an increased importance on securing supply chains and building on local manufacturing capabilities. With international borders now open, the regions unlocked potential for renewable energy generation, critical minerals processing and global exports has gained traction amongst international investors.

Townsville is known as the ‘capital of northern Australia’ for a reason. It has a desirable mix of climate, infrastructure and green energy projects that have propelled the area onto the world renewable energy stage.

Not only does Townsville have an abundance of world-class resources like sun and wind, it also has deposits of new economy minerals like vanadium. It’s enviably positioned with the deep-water Port of Townsville already considered to be one of Australia’s most important trading ports for the Asia-Pacific.

DEPARTMENT OF STATE DEVELOPMENT, INFRASTRUCTURE, LOCAL GOVERNMENT AND PLANNING, MISSION 2050: HOW TOWNSVILLE IS BECOMING A GLOBAL RENEWABLE ENERGY HUB.

NQH2 NORTH QUEENSLAND HYDROGEN CONSORTIUM

Townsville North Queensland has all the desired ingredients to lead the nation’s green energy and hydrogen revolution. Identified by Townsville Enterprise as an emerging industry, a collaborative hydrogen industry ecosystem will generate more jobs, advanced manufacturing, and could be a catalyst for the growth of small business capability and skills in the renewables sector and other flow on industries.

In November 2021, Townsville Enterprise NQH2 Consortium was established to help provide the momentum and connections that are required to enable a productive and successful end to end supply chain hydrogen ecosystem.

The NQH2 Consortium brought together hydrogen producers and enablers of major infrastructure under the leadership of Townsville Enterprise. Members of NQH2 include:

• Townsville City Council

• Townsville Enterprise Limited

• Ark Energy Corporation (subsidiary of Korea Zinc)

• Origin Energy Future Fuels Pty Ltd (collaborating with Kawasaki Heavy industries and other international partners)

HIGHLIGHTS

• Edify Energy Pty Ltd

• Port of Townsville Limited

• CuString Pty Ltd

• Rockfield Technologies Australia

• LiXia Pty Ltd

• Department of State Development, Infrastructure, Local Government and Planning (observers)

In November 2021, NERA (National Energy Resources Australia) Cluster status granted to NQH2, making Townsville North Queensland one of only 18 across the country.

MOU between TAFE Queensland and Ark Energy (NQH2 member) to deliver industry training for hydrogen in Townsville.

NQH2 showcased at the inaugural Green Energy Forum in Townsville (April 2022).

Federal Government budget commitment of $70M to kickstart NQH2 hydrogen hub.

Townsville

Producing clean hydrogen in one location and shipping it to another will be a big part of the solution to these imbalances. Northern Queensland is the standout performer, capturing between $4B and $6.5B of renewables investment per year up to 2050.

The staff and volunteers at the Visitor Information Centre are unbelievably helpful. Nothing was too much trouble and no question was left unanswered. Originally, we had planned to stay one night but after visiting the VIC and speaking with the volunteers we extended our stay for a full week. They even helped us book the Ferry and a Bus Tour on Magnetic Island.

JANET - NSW

VISITOR INFORMATION CENTRE

The Visitor Information Centre has continued to grow and expand its offerings to the visitors of Townsville throughout 21/22. During the latter half of the year, the building in Flinders Street received a makeover with all new signage and imagery installed to create a brighter and more vibrant welcoming for our tourists. The volunteers have continued to provide an outstanding service with their dedication and passion to the tourism industry unwavering after COVID. Our volunteers are the smiling faces representing our region and make visitors feel welcome.

HIGHLIGHTS

The volunteer program remains strong with over 40 volunteers giving 2500+ hours each year through the Visitor Information Centre and Welcome Events.

Over 7,100 visitors received assistance through the Visitor Information Centre in the 21/22 period with June 2022 recording the highest number of visitors since 2018. A 50% increase from the same period last year.

During National Volunteers Week 2022, Townsville Enterprise played host to 50+ volunteers from across the region for the Annual Visitor Information Centre Volunteers Conference. Attendees from Ayr, Charters Towers, Home Hill, Ingham and Townsville enjoyed two days learning about the new and exciting developments in Townsville and across the VIC industry.

The Townsville North Queensland Booking system recorded $209,000 in bookings for local tourism accommodation properties and tour operators in21/22. 45% of these sales were made in the Visitor Information Centre.

CONVENTION BUREAU

ASIA PACIFIC INCENTIVES AND MEETINGS EXPO

In March 2022, the Townsville Enterprise Convention Bureau, The Ville Resort-Casino and Mercure Townsville represented the region at the nation’s largest trade expo for securing business events and incentive programs - the Asia Pacific Incentives and Meetings Expo (AIME).

The team met with over 30 conference organisers from corporations and associations across the country, showcasing our region’s meeting venues, pre and post touring attractions and our strategic industry linkages.

BID FUND EVENTS

Three Townsville Enterprise Bid Fund Events took place during the 2021/22 Financial Year – AFL Schools Cup North Queensland Championships, 13-15 year old boys and girls State Basketball Championships, and the Shimano Grand Prix, with an estimated economic impact of $2.14M

SHOWCASE FAMILS

Townsville Enterprise Convention Bureau hosted a series of famils to showcase Townsville North Queensland as a potential business events destination including the Property Council of Australia.

If you have attended a business event that you believe would benefit from being held in the region, please contact the Convention Bureau.

Townsville Enterprise Convention Bureau continued a focused effort on the attraction of business events to the Townsville North Queensland region. The Convention Bureau works with its members to coordinate bids to secure the hosting rights of events with strong local industry links.

Townsville

The Property Council of Australia famil, organised by the Townsville Convention Bureau was a great way to showcase the Townsville North Queensland region and venues such as ours as a potential destination for the Property Congress. The Townsville Convention Bureau has provided plenty of opportunities for us to showcase our venue to Professional Conference Organisers and Associations throughout the year.

CARA EWINGTON, THE VILLE RESORT-CASINO

TIER 1 PLATINUM

LIFE MEMBERS

Alison Ferry

Emeritus Professor Edward Scott AM

Geoffrey Plante

Graham Jackson OAM

Greg Peel

John Bearne

Laurence Lancini

Tony Mooney

PRINCIPAL PARTNER

Townsville City Council

MAJOR PARTNER

Townsville Airport Pty Ltd

PLATINUM TIER 1

News Corp Australia

PLATINUM

Bravus Mining & Resources

News Corp Australia

Paradise Outdoor Advertising Southern Cross Austereo

Transbulk Logistics

GOLD

AEC Group Pty Ltd

Glencore Copper

JCU - James Cook University

Port of Townsville Limited

Sun Metals Corporation

SILVER

Burdekin Shire Council

Charters Towers Regional Council Colonial Leisure Group - The Ville ResortCasino Energy Queensland Limited Hinchinbrook Shire Council Grant Broadcasters

COPPER

ANZ Banking Corporation

CuString Pty Ltd - CopperString 2.0 Davco Farming

Edify Energy Pty Ltd GHD Pty Ltd Hurst Constructions MMG Limited

Pacific Marine Group Pty Ltd SMEC Australia Pty Ltd

Townsville Hospital and Health Service Wilson Ryan Grose Lawyers

BRONZE

Australian Institute of Marine Science BMD Construction

Cubic Defence Australia Pty Ltd

ESS Asia Pacific Pty Ltd

FGH Group

Gabrielli Constructions Pty Ltd Gallagher Insurance Brokers

Honeycombes Property Group Hutchinson Builders

Iberdrola Australia Limited

Incitec Pivot Limited

Kernow Charters Towers Lendlease

Mater Hospital and Health Service Origin Energy

Pacific Biotechnologies (Australia) Pty Ltd

Queensland Country Bank

Ravenswood Gold Pty Ltd

RGM Maintenance SeaLink Queensland Pty Ltd South 32

Stadiums Queensland Watpac Construction Pty Ltd Windlab Development Australia Pty Ltd

LEVEL 4

CPB Contractors Pty Ltd Findex

St Hilliers Contracting Pty Ltd TAFE Queensland Wilmar Sugar Australia Limited

LEVEL 3

ARC - The Australian Reinforcing Company Carey Group

Colliers International Townsville Pty Ltd

Cowboys Leagues Club Ltd

Cowboys Rugby League Football Limited

Delta Office Solutions

Gleeson Properties Pty Ltd

IPAR REHABILITATION

Keir Steele Waldon Lawyers

KPMG Australia

Lancini Property and Development

North Queensland Gas Pipeline Pty Ltd Ozwide Freight

Peel Valentine Whitehead Pty Ltd (PVW Partners)

Post Office Brewing Pty Ltd

TP Human Capital

LEVEL 2

A Touch of Salt

AECOM Australia Pty Ltd

Aligned Corporate Residences Townsville

ALLROADS Pty Ltd

Alluvium Consulting

Amaroo on Mandalay

AON Risk Services

Aramex (Townsville)

ARUP Pty Ltd

Australian Professional Galvanizing Base Backpackers Magnetic Island

Biodiversity Australia Pty Ltd

Brothers Leagues Club Townsville P/L

Burdekin Theatre

Castletown Shopping World

Cate’s Chemist

CES Civil NQ Pty Ltd

Charters Towers Chamber of Commerce and Mines

Colonial Leisure Group - Nautilus Aviation

Colonial Leisure Group - Orpheus Island Lodge Resort

Commonwealth Bank Regional and Agribusiness Banking - North Queensland

Community Information Centre Townsville Inc.

Connolly Suthers Lawyers

Copiers Excellence (Townsville)

Coral Coast Tourist Park

Core Developments NQ PTY LTD

Coutts Redington Pty Ltd

Cox Architecture

CQ University Discovery Parks Pty Ltd

Ede Events

GM Media Hotel Grand Chancellor

James Cook University

James Cook University Vet Pty Ltd

Joyce Mayne

Knight Frank Townsville

Lamont Sign Solutions

Lower Burdekin Water

Ulendo Pty Ltd

Magnetic Island Ferries

Maidment Development Group Pty Ltd

Mariners North Holiday Apartments

Markwell Group

Marsh Advantage Insurance

Martin Locke Homes Pty Ltd

McDonald’s Parcorp Group

Mercure Townsville

Metal Manufactures Limited

Milford Planning Consultants

Minelec Pty Ltd

NBN Northern Conquest Charters Pty Ltd

NPS Corporate

NQ Heli-worx Pty Ltd

ORegan & Partners

Ornatas Pty Ltd

Otto’s Fresh Food Market - Peclasa Pty Ltd

Outer Limits Adventure Fitness

Pacific Islands International (Sonwave Pty Ltd)

Pandanus Catering

Paronella Park

Pen To Paper Pty Limited Peppers Blue on Blue Resort - Magnetic Island

Perc Tucker Regional Gallery Pinnacles Gallery Premise

PricewaterhouseCoopers Partnership

Quayside Terminal

Queensland Museum Queensland Pacific Metals Ltd

Quest Townsville on Eyre Reef and Rainforest Research Centre Limited

Reef HQ Great Barrier Reef Aquarium

Rider Levett Bucknall Qld Pty Ltd

RMS Engineering & Construction

Rockfield Technologies Australia Pty Ltd Rydges Southbank Townsville Shamrock Civil Engineering Pty Ltd

Simon George & Sons Skytrans Sunbus Townsville The Digimen

The Palmer Collective Townsville Catholic Education Townsville Rotary Markets Townsville RSL Stadium

Triple M

TYTO Wetlands Information Centre Umwelt Environmental And Social Consultants

V8 Supercars Australia Pty Ltd Wagners Holding Company Limited Worley Power Services Pty Ltd Yellow Cabs Australia Pty Ltd

LEVEL 1

AAA+ Financial Solutions

AB & SJ Hinks T/A Aquascene Charters Adrenalin Snorkel and Dive

Aquarius on the Beach

Australian Festival Of Chamber Music

Balgal Beach Units

Big Mama Sailing Billabong Sanctuary Boz Oz

Brazier Motti Holdings Pty Ltd Breakwater Marina Bridgewater Restaurant

Budd Photography

Bungalow Bay Koala Village

C Bar Holdings Pty Ltd

Cactus Jacks Restaurant

Campaign Edge Townsville

Campbell Scientific Australia

Charters Towers Tourist Park City Oasis Inn

Cleveland Bay Chemical Company

Coconut Glen Van Park

CRC for Developing Northern Australia Ltd Dancenorth Australia

Detour Coaches

Epic Environmental Pty Ltd Extrastaff

Flinders Shire Council

Frosty Mango FTEC Electrical Pty Ltd Get Branded Gold Tower Grand Hotel Townsville Great Northern Laundry Grey and Grey GWG Valves & Poly Fittings

Herveys Range Heritage Tea Rooms Hidden Valley Cabins and Tours JAM

Jetski Hire Magnetic Island Jewellery By Design JKs Deli Kordamentha Lidiar Group

Lotsa Print and Signage Magnetic Island Sea Kayaks Milupa Pty Ltd

Mungalla Aboriginal Corporation Murdering Point Winery NLW Group Pty Ltd

Northern Realty Pty Ltd Pilgrim Sailing Pty Ltd Pro Dive Magnetic Island Raven Tours

Regional Economic Advisory Rowes Bay Beachfront Holiday Park

Ruswin Locksmith & Security Solar Citizens Tan Lines Distilling PTY LTD

Texas Longhorn Wagon Tours & Safaris TICS - Testing Inspection and Calibration Services

Townsville Gateway Holiday Park Townsville Helicopters

Townsville Motor Boat and Yacht Club Ltd Travel Associates Trekk Advisory Tropical Palms Resort & 4WD hire

MEMBERSHIP

Wambiana Station

Woollam Constructions

Yongala Dive

ASSOCIATE

Be Limited

Cathedral School of St James & St Anne

Colin Harkness

Commerce North West Inc

Cootharinga North Queensland Darryl Henderson

Dolan Hayes Drive It NQ Pty Ltd Michael Spearman

National Trust of Australia (Qld) Ltd Pickerings Auto Group

Q.I.T.E

Queensland Resources Council Queensland Trucking Association Saari Consulting Scott Stewart MP Scott Verrall selectability Tec-NQ Umbrella Studio Workways Australia Ltd

YWAM Medical Ships - Australia Ltd

NOMINATE YOUR MATE PROGRAM MEMBERS

Ergon Energy Queensland Pty Ltd External IT

Frontier Voice & Data

Gudjuda Reference Group

Magnetic Island Sea Kayaks NAC Ceilings & Partitions Pty Ltd Pandanus Catering

Pickerings Auto Group

Priceline Pharmacy Fairfield Central Pro Dive Magnetic Island Skyreach Pty Ltd

Sublime Experiences

Townsville Illegal Dumping Yobos Cleanup Tropical Palms Resort & 4WD hire Tyremax Pty Ltd

RECOVERY AND RESILIENCE SUPPORT PROGRAM MEMBERS

Alliance Airlines Ampcontrol Pty Ltd

ANZ Banking Group Limited

ARC - The Australian Reinforcing Company Arcadia Village Motel

B&G Law

Bakehouse On Eyre Be Limited

Bernice Hookey Consultancy

Bluewater Caravan Park

Bungalow Bay Koala Village

Cathedral School of St Anne & St James Coconut Glen Van Park Detour Coaches

Donna Bionda Dy-Mark (Aust) Pty Ltd Elite Executive Pty Ltd Event Cinemas Expedia Group

Grace Worldwide Australia Hastings Printers

Huddy Moore Architects

Ingham Travel Agency Pty Ltd iSeek Pty Ltd

Kristal Electronics

Landmark Projects Pty Ltd

Learning Partnerships

Life Giving Psychology & Coaching

Lotsa Print and Signage

Magnetic Island Night Vision Tours

Magnetic Jeep Tours Mendi Constructions

NEM Group Pty Ltd

Oaks Gateway Suites Oaks Metropole

Oasis Lifestyle Village Pty Ltd

Pleasure Divers Magnetic Island

Primary Health North Queensland (PHN Northern Queensland)

Rapid Global Software Resource Co-ordination Partnership Pty Ltd RMS Engineering & Construction Tec-NQ

The Pier Restaurant Ticketmaster Tour Townsville Townsville Road Runners Tropical Topless Car Rentals

RECIPROCAL

Ayr Chamber of Commerce

Gulf Savannah Development Hinchinbrook Chamber of Commerce Industry & Tourism Inc Home Hill Chamber of Commerce

Housing Industry Association North Queensland

Mount Isa to Townsville Economic Development Zone Inc (MITEZ) North Queensland Club

Regional Development Australia Townsville & North West Qld Inc Townsville Chamber of Commerce

EVENT, PROGRAM & PROJECT PARTNERS

AEC

Besix Watpac

Bravus Mining & Resources

Burdekin Shire Council

Business Council of Australia

Carey Group

Charters Towers Regional Council

Cleveland Bay Chemical Co.

Colliers

Copperstring 2.0

Cubic

Discovery Holiday Parks

Edify Energy

Flinders Lane

Gallagher

Genex Power Glencore

Hinchinbrook Shire Council

James Cook University

Markwell Group

Mater Private Hospital Townsville

METs Ignited

Minerals Council of Australia

North Queensland Gas Pipeline

Port of Townsville

Queensland Resources Council

SMEC

TAFE Queensland

The Ville Resort-Casino

Townsville Airport

Townsville Bulletin

Townsville City Council

Townsville Logistics

Trade and Investment Queensland TropiQ

Townsville Enterprise Annual Report 2021 | 2022

This page has been intentionally left blank Townsville

TOWNSVILLE ENTERPRISE LIMITED

FINANCIAL REPORT 2021 | 2022

DIRECTORS REPORT

The Directors of Townsville Enterprise Limited present their report together with the financial statements of the entity, for the year ended 30 June 2022 and the Independent Audit Report thereon.

Director Details

The following persons were Directors of Townsville Enterprise Limited during the whole of the financial year and up to the date of this report unless otherwise stated.

Kevin Gill Appointed 26/05/2008

Jenny Hill Appointed 25/05/2012

Simon Biggs Appointed 23/05/2022

Joe Carey Appointed 11/02/2011

Ranee Crosby Appointed 15/05/2014

Kathy Danaher Appointed 28/05/2019

Jamie Fitzpatrick Appointed 19/02/2020

Sandra Harding AO Appointed 20/02/2013

(Resigned 11/02/2022)

Michael Jones Appointed 20/06/2018

Moya Steele Appointed 21/10/2015

Peter Wheeler Appointed 10/04/2021

Principle Activities

The Company’s principle continuing activities during the year consisted of the promotion of tourism and economic development in North Queensland.

Review of Operations

The financial statements are the first general purpose financial statements prepared in accordance with the Australian Accounting Standards – Simplified Disclosures. In the prior year, the financial statements were general purpose financial statements prepared in accordance with the Australian Accounting Standards –Reduced Disclosure Requirements.

Comments on the operations and the results of those operations are set out below:

• Operating revenue for the year ended 30 June 2022 $12,938,984 (2021: $11,509,882)

• Operating surplus/(deficit) for the year ended 30 June 2022 $261,477 (2021: $1,394,308)

Developments and expected results of operations

This financial year has seen a marked recovery from the COVID-19 pandemic which has impacted economies across the globe. This recovery has led to other shortages in staffing and housing which have impacted regional economies and businesses alike.

Townsville Enterprise has returned a positive financial result, largely due to diversification of revenue generation and the completion of the Hells Gates Dam Detailed Business Case.

Advocacy

Advocacy was again a key activity for the organisation in FY22 year as we prepared for March Federal Election budget and the May Federal Election. While travel to Canberra was not possible due to COVID restrictions, we hosted a successful virtual delegation that connected Townsville Enterprise and the NQROC Mayors with senior Cabinet and Shadow Cabinet Ministers, including the Prime Minister. We also travelled to Brisbane to see key State and Federal Ministers in December and April. Our delegations presented the investment framework required to ‘Unlock the North and to continue delivering economic returns to State and national treasuries, as we have throughout the COVID-19 pandemic.

North Queensland has begun to transform into a future green industry powerhouse, and we will continue to work with our stakeholders to secure the support for the critical enabling infrastructure we need to realise our immense potential in this space. Futureproof water security and power transmission capacity are central to our campaign, as are enduring and sustainable solutions to labour force challenges and affordable housing shortages.

During the election campaign we secured $130M in commitments from the new Government for projects including NQ Spark, Lansdown Eco-Industrial Precinct, the continuing development of our green hydrogen industry and the establishment of a bio-fuels industry in the Burdekin. As we work with Government to see these commitments delivered to the region, we will continue to develop understanding and build relationships with the new Cabinet to ensure the success of our future advocacy campaigning.

Regional Economic Development

Townsville Enterprise has led the establishment of the NQH2 consortium, to help build momentum and connections in the hydrogen industry. In November 2021, the cluster was granted NERA status, making the region one of only 18 across the nation and the only one in North Queensland. In April 2022, Townsville Enterprise hosted the region’s first Green Energy Forum, an event which will become a staple on the annual events calendar. In May, NQH2 led by Townsville Enterprise secured $70M in funding support for enabling common user infrastructure and Hydrogen Master planning.

Townsville Enterprise unveiled its first Economic Snapshot dashboard to members. The new dashboards adapted the topics of the previous quarter’s Economic Snapshot report and integrated this data and analysis into interactive and visually engaging dashboards. The dashboards allow members to interact with the data captured by Townsville Enterprise to understand how Townsville’s economy is performing in relation to trade,

property, tourism, commodity prices and more.

Following advocacy and a business case delivered by Townsville Enterprise on 1 April 2022, The Federal Government announced that Townsville North Queensland would be granted a Designated Area Migration Agreement (DAMA).

The DAMA enables fast-tracked and tailored migration agreements to help the region’s response to the skilled and unskilled labour crisis.

Tourism and Events

For the Tourism and Events industry COVID-19 closures, vaccination mandates and staffing shortages continued to challenge the sector, particularly in the first and second quarter. Despite this, FY22 was focused on rebuild and recovery as borders reopened and international travel recommenced. For the Townsville North Queensland region, our strengths in domestic travel continued to prove positive with aviation capacity nearing 100% of pre-pandemic by June, hotel occupancy averaging at 64.5% for the financial year and holiday travel seeing 8.3% growth for YE March in comparison to 2019.

The start of FY22 saw Townsville experience its own COVID-19 three-day lockdown. Following industry feedback on the extent of the impacts and expected longer term challenges, Townsville Enterprise led an advocacy campaign to secure flight incentives to help immediately reboot the industry. This resulted in a State-wide Tourism and Events Queensland led campaign “The Great Queensland Getaway” offering discounted experiences, flights, and holiday packages to intra-state visitors.

The rebuild of the visitor economy, in particular the growth in holiday travellers, was supported by a dedicated ‘always on marketing’ program delivered by Townsville Enterprise in partnership with our members and media partners. Overall Townsville Enterprise led marketing campaigns which delivered more than 11,000 new visitors to the region, contributing approximately $10M in visitor spend. Airline partnerships supported more than 5,000 pax bookings and marketing assets were viewed more than 29.7 million times. Online and visitor information bookings grew by 54.8% and the visitation to the website grew by over 15.7%. The conversion results of campaign activity were supported by a strong PR strategy which saw coverage across publications such as Australian Traveller, Today Show, Traveller, The Australian, The Guardian, Escape and more.

Townsville Enterprise would like to acknowledge our media partners, our regional Councils, Townsville Airport and Tourism and Events Queensland in supporting all our marketing and campaign activities. It is through these partnerships Townsville Enterprise was able to further extend our marketing reach.

As well and providing direct benefit to our industry through campaign activity, Townsville Enterprise commenced a number of key strategic projects including Phase 1 of a destination brand redevelopment, the Magnetic Island Tourism Masterplan and the five-year Aviation Strategy. These projects provide a solid foundation to feed into a new five-year tourism strategy, which will be undertaken during FY23.

Townsville Enterprise continued to support the region’s events calendar in the FY22 year, providing marketing and logistical assistance to a number of events including major events such as the Rugby Championships in September 2021, which reached a global audience of over 45 million.

FY22 saw a continued and strengthened partnership with neighbouring RTOs in Whitsundays, Mackay, Cairns and the Outback to deliver the Drive North Queensland campaign. Social media assets were seen almost 250,000 times and generated 13,980 clicks to the Drive North Queensland website. This partnership also saw trade show appearances in Brisbane, Sydney and Melbourne, and partnered with content creators to deliver tailored drive- focused imagery and video assets.

Townsville North Queensland had a strong presence at a number of industry events this year including the Australian Tourism Exchange, Trav Media Conference, Caravan and Camping Expos and DestinationQ.

Industry Development remained an area of focus for Townsville Enterprise throughout the year, with a particular emphasis on building capacity within our operators in the areas of trade and experience development. This saw Townsville Enterprise support and facilitate both the Transformational Experiences Mentoring Program and the Year of Indigenous Tourism Mentoring Program. Combined, these programs engaged with 11 operators and achieved significant industry development opportunities.

Despite a challenging start to the Financial Year, the Tourism and Events sector is experiencing strong growth. With a new destination brand on the horizon, increased aviation capacity (as a result of strong demand), and the Magnetic Island Tourism Masterplan under development – the future for the sector looks promising.

Membership, Events and Business Development

Membership has been front and centre of all activities conducted by Townsville Enterprise throughout the FY21 - 22 year. The Membership Survey returned our first positive Net Promoter Score (+11) in five years and outlined key areas of improvement for future years.

A membership strategy was developed for heightened engagement with our members and this focus on membership has been evident with the lowest

cancellations in five years, over $130,000 in new member revenue and the highest year in membership revenue ($908,500).

Whilst Townsville Enterprise secured additional revenue streams through the FY21-22 year, the stability of Townsville Enterprise’s membership remains critical to our funding model and our ability to represent a consolidated business community to all levels of government.

Townsville Enterprise delivered a strong calendar of business events including Townsville Bulletin Business Breakfasts, Townsville North Queensland Tourism Futures Forum, North Queensland Mining and Resources Industry Forum, Townsville Enterprise Annual General Meeting and the inaugural Green Energy Futures Forum. Townsville Enterprise also celebrated its 30-year anniversary with a member event and our new office relocation with a Member Mixer. Across the year, the organisation held 14 events which saw 1,450 attendees across our events program.

Hells Gates Dam Business Case

After three years of work, Townsville Enterprise delivered the Final Business Case for Hells Gates Dam in May 2022. The Detailed Business Case brought together detailed technical studies, market testing, economic feasibility, and cultural and social impacts. It demonstrated the project’s viability delivering a Benefit Cost Ratio of 1.05, a potential economic contribution of $6 billion and 3,300 new jobs. Securing additional large-scale water infrastructure will be one of the single biggest enablers for our region.

The $24M Big Rocks Weir and Hells Gates Dam Business Case is being managed by Townsville Enterprise and was a centrepiece of a very important year.

Townsville Enterprise submitted the final Hells Gates Dam and Irrigation Scheme Business Case on 6 May 2022, on time and on budget.

DIRECTORS REPORT

The Directors of Townsville Enterprise Limited present their report together with the financial statements of the entity, for the year ended 30 June 2022 and the Independent Audit Report thereon.

KJ Gill

B Com, CA, GAICD

Chairman 10 years 3 months

Director 14 years 1 month

Member – CopperString Reference Group

Special Responsibilities

Member – Finance Audit and Risk Committee

JL Hill

BSc MPHTM, MAICD

Deputy Chairman 10 years 1 month Mayor – Townsville City Council

Member – Australian Institute of Company Directors

Member – Australian Local Government Women’s Association

Board Member and Policy Executive Committee Member – Local Government Association of Queensland

Member – North Queensland Regional Organisation of Councils

Deputy Chair – Regional Queensland Council of Mayors

Member – Smart Precinct NQ Limited

Deputy Chair – TCC/Townsville Entertainment & Convention Centre Joint Venture Board

Chairman – Townsville Local Disaster Management Group

SR Biggs

FREng FTSE

Director 1 month

Director – Advance Cairns

Council Member – Australian Institute of Marine Science Vice-Chancellor and President – James Cook University

Council Member – James Cook University

Director/Chairman – James Cook University Singapore

Committee Member – Citizens of the Great Barrier Reef

Advisory Board Member – ARC Centre of excellence for Enabling Eco-Efficient Beneficiation of Minerals

Director – Smart Precinct NQ Limited

JW Carey

B. Com, CPA, Dip FP, GAICD

Director 11 years 4 months

Director – Bohle Developments Pty Ltd

Director – Carey Accountants Pty Ltd

Director – Carey Financial Pty Ltd

Director/ Chairman – Carey Group of Companies

Director - Carey Group Properties Pty Ltd

Director – Carey Group Pty Ltd

Director – Carey Holdings (QLD) Pty Ltd

Director – Carey Property Group No 2 Pty Ltd

Director – Carey Property Group Pty Ltd

Director – Carey Thomson Consulting Pty Ltd

Director – Carsenish Nominees Pty Ltd

Director/ Secretary – CGP Holdings Pty Ltd

Director/ Secretary – CitiLink Precinct 1 Pty Ltd

Director/ Secretary – CitiLink Precinct 2 Pty Ltd

Director/ Secretary – Coorparoo Debenture Pty Ltd

Director/ Deputy Chairman – Cowboys Leagues Club Limited

Director/ Deputy Chairman – Cowboys Rugby League Football Club Limited

Director – Dexat Holdings Pty Ltd

Director – Endure Wealth Pty Ltd

Director – Hinchinbrook Nominees Pty Ltd Director – Strategic SMSF Pty Ltd

Director – The Boardroom CFO Pty Ltd

Director/ Secretary – Wabbitz Pty Ltd Director – Yomstar Holdings (Aust) Pty Ltd Director – Yomstar IP Pty Ltd

Special Responsibilities

Chairman – Big Rocks Weir | Hells Gates Dam Project Leadership Group Director – Hells Gates Dam Irrigation Scheme Pty Ltd

RL Crosby

LLB, GAICD

Director 8 years 1 month Member – Minister’s Advisory Council on Defence Industry and Jobs Chief Executive Officer – Port of Townsville Limited Member – Queensland Ministerial Freight Council Chair – Queensland Ports Association Director – Ports Australia

Special Responsibilities

Chair – Economic Development Strategic Advisory Committee

KT Danaher

B.Sci (Hons. Marine Biology, B.Bus (Accounting) Certified Practicing Accountant - CPA Director 3 years 1 month

Vice Chairwoman/ Director/ Company Secretary/ Public Officer – Ark Energy Corporation

Director – Ark Energy H2 Pty Ltd

Director/ Company Secretary/ Public Officer – Ark Energy MacIntyre Pty Ltd Director/ Company Secretary – Epuron Holdings Pty Ltd Director/ Company Secretary – Epuron Pty Ltd

Director/ Company Secretary – Epuron Projects Pty Ltd

Director/ Company Secretary – Epuron Solar Pty Ltd Director/ Company Secretary – Bowmans Creek Wind Farm Pty Ltd Director/ Company Secretary – Rye Park Wind Farm Pty Ltd Director – Fulcrum3D Pty Ltd

Director/ Company Secretary – Bounder Creek Wind Farm Pty Ltd Director/ Company Secretary – Yulara Solar Pty Ltd Director/ Company Secretary – Katherine Solar Pty Ltd Director/ Company Secretary – Uterne Power Plant Pty Ltd

Director/ Company Secretary – TKLN Solar Pty Ltd

Director/ Company Secretary – Lotus Creek Wind Farm Pty Ltd Director/ Company Secretary – Specimen Hill Wind Farm Pty Ltd Director/ Company Secretary – Burrendong Wind Farm Pty Ltd Director/ Company Secretary – Chalumbin Wind Farm Pty Ltd

Director/ Company Secretary – Glue Factory Investments Pty Ltd ATF The Glue Factory Super Fund

Special Responsibilities

Chairman – Finance Audit & Risk Committee

J Fitzpatrick

GAICD

Director 2 year 6 months

Director/ Secretary – Espyard Pty Ltd

Director/ Secretary – FG Hospitality Pty Ltd

Director/ Secretary – Fitzpatrick Strand Property Pty Ltd

Director/ Secretary – JFNF Pty Ltd

Director/ Secretary – Kelaidan Pty Ltd

Director/ Secretary – Rockpool Hospitality Pty Ltd

Director/ Secretary – Rockpool Property Holdings Pty Ltd

Director/ Secretary – Strand Property Holdings Pty Ltd

Director/ Secretary – Strand Stays Pty Ltd

Director/ Secretary – Wahoo Hospitality Pty Ltd

MA Steele

BA.LLB, MAICD

Director 6 years 8 months

Director – Steele Projects and Advisory Pty Ltd

Director – MA Steele Pty Ltd

Director – MAASK Investments Pty Ltd

Consultant – Keir Steele Waldon Lawyers Pty Ltd

Special Responsibilities

Member – Big Rocks Weir | Hells Gates Dam Project Leadership Group

MD Jones

Director 4 years 1 month

Chair – AFL Queensland – Townsville Advisory Board

Director – Breakwater Island Limited

Director – Centralian Car Wash Pty

Director – Centralian Property Pty Ltd

Sole Director/ Secretary – Jonesy Pty Ltd, Acting for the Jones Family Trust Director – Ronald McDonald House Charity – North Australia Charter

Special Responsibilities

Chairman – Tourism and Events Strategic Advisory Committee

P Wheeler

Director 1 year 2 months

Director – Colliers International (Townsville) Pty Ltd

Director – Welben Investments Pty Ltd

Director – Benwel Pty Ltd, ATF The Peter Wheeler Family Trust Director – Caldwool Pty Ltd, ATF The Caldwool Unit Trust Director – Stufrletch Pty Ltd, ATF The Sturfletch Unit Trust Director – 13 Martinez Avenue Pty Ltd, ATF 13 Martinez Unit Trust Group Chair – Salvation Army Red Shield Appeal | Townsville Region Committee Member – Australian Property Council | Townsville Committee Committee Member – Townsville Advisory Group | Salvation Army

SL Harding

AO, BSc (Hons) ANU, MPub.Admin UQ, PhD NCSU Hon Doc JIU, FACE, FQA, GAICD

Director 9 years (resigned 11/02/2022) Director – Advance Cairns Council Member – Australian Institute of Marine Science Director – Citizens of the Great Barrier Reef Director – Cowboys Rugby League Football Club Limited Director – Education Australia Limited Deputy Chair – Foundation of Australian Literary Studies Vice-Chancellor and President – James Cook University Chair – Queensland Vice Chancellor’s Committee

MEETINGS OF DIRECTORS

The number of meetings the Company’s Board of Directors (the Board) and of each Board Committee held during the year ended 30 June 2022, and the number of meetings attended by each Director were:

Full Meetings of Directors

Kevin Gill

Jenny Hill

Simon Biggs

Joe Carey

Ranee Crosby

Kathy Danaher

Jamie Fitzpatrick

Sandra Harding

Michael Jones

Moya Steele

Peter Wheeler

A = Number of meetings attended.

Meetings of Finance Audit & Risk Committee

A B A B

B = Number of meetings held during the time the Director held office or was a member of the Committee during the year.

Directors Benefits

Since the end of the previous financial year, no Directors have received or become entitled to receive benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivable by Directors), by reason of a contract made by the Company, or a related corporation with the Director or with a firm they are a member of, or a company in which they have a substantial financial interest to the financial statements.

Insurance of Officers

During the financial year, Townsville Enterprise Limited paid a premium to insure the Directors and Secretaries of the Company. Under the arrangement the premium is unable to be disclosed.

The Company has not otherwise, during or since the end of the financial year, except to the extent permitted by law, indemnified or agreed to indemnify any officer or auditor of the Company or any related body corporate against a liability incurred as an officer or auditor.

Contributions on Winding Up

The Company is incorporated under the Corporations Act 2001 and is a Company limited by guarantee. If the Company is wound up, the constitution states that each member is required to contribute a maximum of $20 each towards meeting any outstanding obligations of the entity.

Environmental Regulations

No significant environmental regulations apply to the Company.

Auditor’s Independence Declaration

A copy of the auditor’s independence declaration, as required under section 307c of the Corporations Act 2001, is set out below.

The Directors’ report is signed in accordance with a resolution of the Board of Directors, pursuant to section 298(2) (a) of the Corporations Act 2001.

On behalf of the Directors

Kevin Gill | Director Townsville - 18/10/2022

AUDITORS INDEPENDENCE DECLARATION TO THE DIRECTORS OF TOWNSVILLE ENTERPRISE LIMITED

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit for Townsville Enterprise Limited, I declare that, to the best of my knowledge and belief, during the year ended 30 June 2022, there have been:

1. No contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and

2. No contraventions of any applicable code of professional conduct in relation to the audit.

Crowe Audit Australia

Tracey Mayhew | Associate Partner

Townsville, 18/10/2022.

DIRECTORS’ DECLARATION

In the opinion of the Directors of Townsville Enterprise Limited:

a) The financial statements and notes of Townsville Enterprise Limited are in accordance with the Corporations Act 2001, including:

I. Giving a true and fair view of its financial position as at 30 June 2022 and of its performance for the financial year ended on that date; and

II. Complying with Australian Accounting Simplified Disclosure Requirements (including the Australian Accounting Interpretations) and the Corporations Regulations 2001; and

b) There are reasonable grounds to believe that Townsville Enterprise Limited will be able to pay its debts as and when they become due and payable.

Kevin Gill | Director Townsville - 18/10/2022

Signed in accordance with a resolution of the Directors

NOTES TO THE FINANCIAL STATEMENTS

1. GENERAL INFORMATION

1.1 Basis of Preparation

These general purpose financial statements have been prepared in accordance with the Corporations Act 2001 and other authoritative pronouncements issued by the Australian Accounting Standards Board (AASB) and comply with other requirements of law.

The financial statements comprise the financial statements of Townsville Enterprise Limited (the Company). For the purposes of preparing the financial statements, the Company is a not-for-profit entity.

Historical cost convention

The financial statements have been prepared under the historical cost convention.

Critical accounting estimates

The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in the relevant accounting policies within Note 1 and are based on historical experience and on the various factors, including expectations of future events management believes to be reasonable under the circumstances.

1.2 Statement of Compliance

The Company does not have ‘public accountability’ as defined by AASB 1053 Application of Tiers of Australian Accounting Standards and is therefore eligible to apply Tier 2 reporting framework under the Australian Accounting Standards.

The financial statements comply with the recognition and measurement requirements of Australian Accounting Standards, the presentation requirements in those standards as modified by AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-For-Profit Tier 2 entities and the disclosure requirements in AASB 1060. Accordingly, the financial statements comply with Australian Accounting Standards – Simplified Disclosures.

1.3 Information about the Company

Townsville Enterprise Limited is a not-for-profit company limited by guarantee, incorporated under the Corporations Act 2001.

The registered office and principal place of business is as follows: 151 Sturt Street Townsville QLD 4810 Tel (07) 4726 2728

2. JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

2.1

Revenue

Revenue is recognised at an amount that reflects the consideration to which the Company is expected to be entitled in exchange for transferring goods or services to a customer.

Membership and Partnership Revenue

Membership and Partnership revenue is recognised in the Statement of Profit or Loss and Other Comprehensive Income in respect to the period in which it relates.

Grants

Grant revenue is recognised in the Statement of Profit or Loss and Other Comprehensive Income when the Company satisfies the performance obligations stated within the funding agreements or Grant Deeds. If conditions are attached to the grant which must be satisfied before the Company is eligible to retain the contribution, the grant will be recognised in the Statement of Financial Position as a liability until these conditions are satisfied.

Income recognition from grants received by Townsville Enterprise Limited has been appropriately accounted for under AASB 1058 or AASB 15 based on the assessment performed.

Service Revenue

Revenue arising from the rendering of a service is recognised upon the delivery of the service to the clients.

Other Revenue

Other revenue (which includes campaign, event and project income) is recognised when it is received or when the right to receive the payment is established.

All revenue is stated net of the amount of goods and services tax (GST).

2.2 Lease

The Company has a lease for the main office of Townsville Enterprise Limited at 151 Sturt Street. This lease is reflected on the balance sheet as a right of use and a lease liability in accordance with AASB 16. The following table describes the nature of this lease as recognised on the balance sheet:

Right of use asset

Term of lease

Extension options term

Office premises 7 years 5 years

Lease commencement date Lease incentive

1/10/2021 2 months rental

At lease commencement date the Company recognises a right-of-use assets and a lease liability. The right- of-use asset is measured at cost and depreciated on a straight-line basis from the lease commencement date to the end of the lease term (including option period). The lease liability is measured at the present value. Subsequent to the initial measurement the liability will be reduced for payments made and increased for interest.

2.3 Income Tax

The Company is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.

2.4 Current and non-current classifications

Assets and liabilities are presented in the Statement of Financial Position based on current and non-current classification.

An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalents unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.

A liability is classified as current when: it is either expected to be settled in normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current.

2.5 Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits held at call with financial institutions and other short term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value. Deposits with maturity dates greater than three months are considered investments.

On initial recognition investments are measured at fair value plus transaction costs and subsequently measured at amortised cost in accordance with AASB 9 Financial Instruments.

2.6 Trade and other receivables

Trade and other receivables are measured at amortised cost, less any allowance for expected credit losses in accordance with AASB 9 Financial Instruments. Trade receivables are generally due for settlement within 30 days.

2.7 Property, plant and equipment

Plant and equipment is stated at historical cost less accumulated depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the asset/s.

Depreciation is calculated on a straight line or diminishing value basis to write off the net cost of each item of property, plant or equipment over their expected useful lives as follows:

Leasehold Improvements 10-50%

Plant and Equipment 5-20%

Motor Vehicles 20-25%

The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.

Leasehold Improvements are depreciated over the unexpired period of the lease or the estimated useful life of the assets, whichever is shorter.

An item of property, plant or equipment is derecognised upon disposal, or when there is no future economic benefit to the Company. Gains and losses between the carrying amount and the disposal amount are distributed to the Statement of Profit or Loss. Any revaluation surplus reserve relating to the item disposed of is transferred directly to retained profits.

2.8 Intangible Assets and Software

Intangible assets are initially recognised at cost. The gains or losses recognised in profit or loss arising from the derecognition of intangible assets are measured as the difference between net disposal proceeds and the carrying amount of the intangible assets. The method and useful lives of finite life intangible assets are reviewed annually. Changes in the expected pattern of consumption of useful life are accounted for prospectively by changing the amortisation method or period.

Significant costs associated with configuration and customisation of software are deferred and amortised on a straight line basis over the period of their expected benefit, being their finite life of three to five years.

2.9 Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of the financial year and which are unpaid. Due to their short term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.

2.10 Employee Benefits

Short term employee benefits

Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12 months of the reporting date or where no right to defer settlement exists, are recognised in current liabilities in respect of employees’ services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled.

Long term employee benefits

The liability for long service leave not expected to be settled within 12 months of the reporting date is recognised in non current liabilities, provided there is an unconditional right to defer settlement of the liability. The liability is measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are recognised at the expected cash outflow when the liability is settled. Long term benefits are accounted for employees who have achieved seven years of service with the Company.

Long-term employee benefits

The liability for long service leave not expected to be settled within 12 months of the reporting date is recognised in non-current liabilities, provided there is an unconditional right to defer settlement of the liability. The liability is measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are recognised at the expected cash outflow when the liability is settled. Long term benefits are accounted for employees who have achieved seven years of service with the Company.

2.11 Goods and Services Tax (GST) and other similar taxes

Revenues, expenses and assets are recognised net of the amount of associated GST, unless GST incurred is not recoverable from the Australian Tax Office (ATO). In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense.

2.11 Goods and Services Tax (GST) and other similar taxes

Revenues, expenses and assets are recognised net of the amount of associated GST, unless GST incurred is not recoverable from the Australian Tax Office (ATO). In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included in other receivables or other payables in the Statement of Financial Position.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included in other receivables or other payables in the Statement of Financial Position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from or payable to the ATO are presented as operating cash flows.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from or payable to the ATO are presented as operating cash flows.

3. REVENUE

3. REVENUE

2022 2021 $ $ Revenue

Campaign & Event Income 126,314 112,032

Partnership Income 792,547 896,392

Membership Income 909,986 767,840

Contra Membership 221,413 298,856

Government Grants 911,448 836,733

Sponsorship Income 36,773 75,382

Project Management Income 9,766,667 7,990,334 12,765,147 10,977,568

Other income

Interest 1,455 3,458

Misc Staff Income 2,457

Gain on Disposal 91

Marketing Packages 10,365 1,748

Project Income 102,032 49,847

JobKeeper ATO Reimbursement 342,450

Other Income 57,437 134,812 173,837 532,314 12,938,984 11,509,882

4. OTHER EXPENSES

4. OTHER EXPENSES

2022 2021 $ $

Audit and accounting expenses 14,030 15,053

Consultants and contractors 9,171,205 6,746,997

Facility expenses 208,299 246,413

Web development and maintenance expenses 5,873 3,427

Design printing and reproduction 14,347 30,965

Trade and exhibition 117,161 104,132

Sponsorship and membership expenses 88,854 91,863

Vehicle expenses 4,587 4,025

Advertising expenses 674,860 729,852

Employee related expenses 43,650 50,844

Entertainment expenses 7,460 17,743

Information technology expenses 134,148 82,502

Other expenses 5,892 1,167 10,490,365 8,124,981

5. CASH AND CASH EQUIVALENTS

5. CASH AND CASH EQUIVALENTS

2022 2021 $ $

Cash at bank and on hand 254,362 721,219

Term Deposit QCCU 398,680 397,386

Cash at bank Hells Gates 2,055,905 889,410

Credit Cards Balance Owed (7,060) (4,768)

Total Cash and cash equivalents 2,701,887 2,003,248

6. TRADE AND OTHER RECEIVABLES

6. TRADE AND OTHER RECEIVABLES

Current

2022 2021 $ $

Trade receivables 3,639,036 332,049

Contract Asset 3,793,334

Total current trade and other receivables 3,639,036 4,125,382

7. PROPERTY, PLANT AND EQUIPMENT

7. PROPERTY, PLANT AND EQUIPMENT

Leasehold Improvements Motor Vehicles Plant & Equipment Total $ $ $ $

Assets at cost 69,508 212,569 282,077

Accumulated Depreciation 69,508 146,906 216,414

Balance 30 June 2021 65,663 65,663

Assets at cost 257,618 69,508 289,984 617,110

Accumulated Depreciation (5,674) (69,508) (177,783) (252,964)

Balance 30 June 2022 251,945 - 112,202 364,146

14. AUDITOR REMUNERATION

Fees paid to Townsville Enterprise’s contracted auditors for the period are as follows:

Company

Crowe Audit Australia

Crowe Audit Australia

Description of Service $

Interim Audit for year ended 30 June 2022 5,380

Final Fee in relation to Audit year ended 30 June 2021 7,800

The audit fees quoted by Crowe Audit Australia relating to the 2021-2022 financial statements are $14,740 (2021: $14,300)

15. POST REPORTING DATE EVENTS

No matters or circumstances have arisen since 30 June 2022 that has significantly affected, or may significantly affect, the Company’s operations, the results of those operations, or the Company’s state of affairs in future financial years.

16. ECONOMIC DEPENDENCE

Townsville Enterprise Limited is dependent upon the ongoing receipt of Local and State Government grants to ensure the ongoing continuance of its programs. At the date of this report, management has no reason to believe that this financial support will not continue.

DIRECTORS’ DECLARATION

In the opinion of the Directors of Townsville Enterprise Limited:

a) The financial statements and notes of Townsville Enterprise Limited are in accordance with the Corporations Act 2001, including:

i. Giving a true and fair view of its financial position as at 30 June 2022 and of its performance for the financial year ended on that date; and

ii. Complying with Australian Accounting Standards Reduced Disclosure Requirements (including the Australian Accounting Interpretations) and the Corporations Regulations 2001; and

b) There are reasonable grounds to believe that Townsville Enterprise Limited will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the Directors

Kevin Gill | Director Townsville, 18/10/2022.

INDEPENDENT AUDITOR’S REPORT

To the Members of Townsville Enterprise Limited Opinion

We have audited the financial report of Townsville Enterprise Limited (the Company), which comprises the statement of financial position as at 30 June 2022, the statement of comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors’ declaration.

In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001, including:

a) giving a true and fair view of the Company’s financial position as at 30 June 2022 and of its financial performance for the year then ended; and

b) complying with Australian Accounting Standards – Reduced Disclosure Requirements to the extent described in Note 1 and the Corporations Regulations 2001.

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion

Responsibilities of the Directors for the Financial Report

The directors of the Company are responsible for the preparation of the financial report and have determined that the basis of preparation described in Note 1 to the financial report is appropriate to meet the needs of the members and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the directors are responsible for assessing the ability of the Company to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by those charged with governance.

• Conclude on the appropriateness of those charged with governance’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of the auditor’s report. However, future events or conditions may cause the entity to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during the audit.

Crowe Audit Australia

Tracey Mayhew | Associate Partner Townsville, 18/10/2022.

TOWNSVILLE ENTERPRISE

ABN: 58 053 020 536 151 Sturt Street PO Box 1043 Townsville Queensland, 4810 Australia

Phone: +61 7 4726 2728 Email: tel@tel.com.au townsvilleenterprise.com.au