The Coordinator-General

Regional Major Projects Forum

Norths Leagues Club, Kallangur 7 June 2016

What I will cover today • What is an Integrated Resort Development

• Queen’s Wharf Brisbane and Integrated Resort Developments

• Why is the Government looking for investment in IRDs?

• What is the Government trying to achieve?

• Benefits and opportunities

Integrated Resort Developments (IRD)

IRDs are the products of maturing globalised tourism markets that have driven a demand for

world-class, iconic mega-resorts.

An IRD can uplift a city and a region through stimulation of tourism, economic development,

high quality urban design and public spaces and provision of a mix of complementary

entertainment, accommodation and business uses.

Integrated Resort Developments (IRD)

An IRD typically provides a diversity of uses encompassing any number of the following:

• 5-6 star globally recognised hotels

• Expansive master planned public realm

• Multi-modal connectivity to and through the precinct

• Convention facilities

• Entertainment spaces

• Gaming facilities

• Signature/celebrity food and beverage businesses

• High end boutique retail

Project genesis On 29 May 2012, the Government announced the Queen’s Wharf Brisbane (QWB) to reinvigorate the underutilised former Government administration precinct.

Queen's Wharf Brisbane will:

• create a unique and vibrant new world city development that attracts visitors and investment

• reconnect the activity of the Brisbane city centre to the river

• preserve and celebrate Brisbane's heritage and deliver high quality public spaces

Project Sponsors

• Queen’s Wharf Brisbane enjoys bi-partisan political support at the State level and strong support from SEQ local governments

• Dr Anthony Lynham, Minister for State Development has Ministerial responsibility for

the project • Projects Chief Executive, Department of State Development has overall State

Government responsibility for all aspects of the delivery of the project • Economic Development Queensland will lead the planning through the declaration of a

Priority Development Area (PDA)

Why is the Government doing this?

Economic need – Domestic tourism market

• Australian destination market now offers more choice than ever

• Queensland seen as a “short break” (not a weekend or a longer holiday) - “poor value for money” relative to overseas destinations

• Brisbane is viewed sceptically by interstate travellers:

- nothing unique and no real identity

- most likely to travel for sports and weather

- image drowned out by surf and sand

• Special events (Valentino exhibition, sporting events, etc) can drive significant visitation

Economic need – International tourism market

• Brisbane (and to a lesser extent – SEQ) very much a transit destination – relatively low expenditure per visitor

• Rapidly growing middle class in Asia presents a opportunity – but it needs to be grasped

Economic need – International tourism market

SOURCE: KPMG, 2014

Economic need – International tourism market

• Queensland and South East Queensland in particular tick all the boxes

• Yet we continue to under perform

• And we have little international recognition

Economic need – International tourism market

• Facts speak for themselves

SOURCE: KPMG, 2014

Economic need – International tourism market

Queen’s Wharf Brisbane will dovetail perfectly with:

• Brisbane Airport Corporation’s (BAC) New Parallel Runway planned

to open 2020. BAC estimates a rise from 22 million passengers

today to 26 million in 2020 to 48 million in 2034

• Toowoomba's Brisbane West Wellcamp Airport - first international

flight November 2015

• Sunshine Coast Airport Expansion Project – beginning before

Christmas 2016 adding $4.1 billion to the local economy

• Gold Coast Airport - a $200-million transformation to add extra space

for larger aircraft (currently 5.8 million passengers annually)

What is the Government trying to achieve?

Project objectives

The project seeks deliver the following objectives:

• attract and stimulate broad investment and economic development over the long-term in Brisbane and its surrounds

• deliver an internationally-recognised precinct with world class sustainable urban design and architecture that establishes a clear identity that is uniquely Brisbane and Queensland

• redefine public access and transport connections into, through and around the Brisbane city centre – from bridge to bridge and river to ridge

• transform and activate places and spaces that draw people to the historical origins of Brisbane as a city

• enhance the cultural and social experience through a broad range of urban activities from the city centre down to the river’s edge, and throughout the region

Integrated Resort Developments (IRD) – Singapore’s experience

Singapore’s annual foreign visitation rates were declining at a rate of 1.8% in 2008 and declining by 4.3% in 2009 When the two IRDs, Marina Bay Sands and Resort World Sentosa opened their doors in mid 2010: • visitation increased by 20.2% • $3.7 billion was injected into Singapore’s gross domestic product during the

first 9 months of operation • only $720 million was attributed to gaming taxation

Integrated Resort Developments (IRD) – Singapore’s experience

Importantly, the Marina Bay Sands IRD leverages a broader redevelopment

and regeneration strategy:

• reclamation of the Marina Bay precinct

• relocation of the container port

• new investment in infrastructure – pedestrian bridges, signature gardens

• art precincts and public realm

Marina Bay Sands Integrated Resort Development

Queen’s Wharf Brisbane Integrated Resort Development

© Destination Brisbane Consortium. All rights reserved. Artist’s impression. Subject to planning approvals.

Queen’s Wharf Brisbane Integrated Resort Development

© Destination Brisbane Consortium. All rights reserved. Artist’s impression. Subject to planning approvals.

Queen’s Wharf Brisbane Integrated Resort Development

© Destination Brisbane Consortium. All rights reserved. Artist’s impression. Subject to planning approvals.

South East Queensland’s IRDs Queen’s Wharf Brisbane and Gold Coast

• They have to be unique

• They have to be authentic

• They have to represent the region – subtropical, laid back, friendly, outdoor lifestyle

• They have to be continually refreshed and renewed

• They have to attract international and interstate visitors and be embraced by the locals

Community Consultation and Engagement • Consultation with industry and the community shaped the QWB offer to market and

identified the project benefits to be sought

• DBC listened and worked collaboratively with the State’s project team

• As a result of this engagement, trust has been developed and we are in a true partnership with DBC and key stakeholders – Brisbane City Council, National Trust of Queensland, the Royal Historical Society of Queensland and the tourism sector

Benefits of Queen’s Wharf Brisbane

The key benefits that can be achieved as a result of the project are:

• Tourism: Increased attraction of Brisbane and SEQ as tourist destinations,

increasing incremental interstate and international tourism spend

• Construction: Significant capital investment stimulating the Queensland construction

sector over an extended period (2017 to 2025)

• Business opportunities and regional development: Long term supply chain

opportunities

• Public amenity: Urban renewal within the precinct, increasing the public’s use,

access and appreciation of the area, improving amenity and reducing commuting and

travel time

• Financial return: Increased direct and indirect economic returns to the State

Contractual close • A $3 billion development with more than $1 billion to state coffers • First instalment of the $272 million has been paid to the State • Guaranteed $880 million will follow from casino taxes over the first 10 years of

operations from 2022 • Development approvals, legislative changes, vacant possession of precinct buildings

and the associated casino licence changes being progressed • $1.69 billion annual increase in tourism spend • 1.39 million additional tourists per annum • The Star Entertainment Group relocating its head office to Queensland

Opportunities for Queensland Businesses

China tourists attracted to Tasmanian beauty Financial Review 2 June 2016 http://www.afr.com/business/tourism/china-tourists-attracted-to-tasmanian-beauty-20160601-gp8w6a#ixzz4AOogCWug

"Over the years we've refined the product and delivery to match nationalities. We now have

Chinese translations in our signage and website.“

Robert Raven’s lavender farm, Bridestowe Estate, has become a hit since Chinese celebrities posted

photos of social media with Bobbie the Bear – a lilac coloured soft toy filled with lavender.

“We’ve probably sold about a quarter of a million of the bears since the post four years ago. We’ve had

to introduce a one-bear policy,” he said.

Chinese President Xi Jinping and his wife Peng Liyuan

Major Projects Series – Regional showcase proposed dates

Event Date

Brisbane Launch Event Tuesday 12 July 2016

Major Projects Series – Toowoomba Friday 29 July 2016

Major Projects Series – Sunshine Coast Tuesday 16 August 2016

Major Projects Series – Mackay Thursday 26 August 2016

Regional Major Projects – Rockhampton Wednesday 7 September 2016

Regional Economic Development Growth Forum – Maryborough

Thursday 6 October 2016

Major Projects Series – Springfield Lakes Thursday 20 October 2016

Major Projects Series – Gold Coast Thursday 27 October 2016

Major Projects Forum – Cairns Thursday 24 November 2016

Townsville Industry Breakfast Tuesday 6 December 2016

Southbank 1950’s

World Expo 88

Image courtesy of the State Library of Queensland

CA 1911

© Destination Brisbane Consortium. All rights reserved. Artist’s impression. Subject to planning approvals.