Agenda of Economic Development & Communications Committee Meeting

Item No. 6.1

Agenda (Open Portion)

Economic Development & Communications Committee Meeting

Page 18

30/7/2020

REPORT TITLE: Antarctic Cities Project - Hobart Specific Summary and Update

REPORT PROVIDED BY: Senior Advisor Economic Development

Manager Economic Development Engagement & Strategy

Director Community Life

1. Report Purpose and Community Benefit

1.1. The purpose of this report is to present a Hobart specific summary and update to the Council on the Antarctic Cities Project that received City of Hobart cash and in-kind funding for the financial years 2016-17, 2017-18 and 2018-19.

1.1.1. Given the limitations of physical distancing arising as a result of the current pandemic, this report replaces an update event planned in conjunction with the Australian Antarctic Festival and SCAR / COMNAP conferences that were to take place in Hobart in July and August 2020. It was anticipated that the Mayors of the five Antarctic Gateway Cities, as well as the five Antarctic Youth Ambassadors would have been in attendance.

1.1.2. A final report with results, findings and recommendations will be presented to the Council by the end of 2020. This final report will be focussed on all involved cities rather than just Hobart, which is the purpose of this interim report (Attachment A).

1.2. The benefit to the community is that they are informed of the Hobart specific outputs from the University of Tasmania (UTAS) and Western Sydney University led project, the aim of which was to:

“…inform decision makers and citizens on how their Antarctic gateway cities can best effect a cultural, political, ecological and economic transition towards becoming Antarctic custodial cities.”

2. Report Summary

2.1. The essence of this project is set out in Attachment A by the project team. It is to:

“…scope how five Antarctic gateway cities (Hobart, Christchurch, Punta Arenas, Ushuaia and Cape Town) can act collectively as global custodians of Antarctica, and explore the possibilities of a shift in urban practices and imaginaries from ‘gateway cities’ to ‘custodial cities’. The project proposes a systematic rethinking of both the engagement and outlook of five Antarctic gateway cities – not as five far flung ports, but as members of an interlined Southern Rim network that can learn from and benefit each other….”

2.2. The City of Hobart on 21 September 2015 resolved inter alia that:

The Council provide up to $40,000 total cash and in-kind funding, per annum, to the Antarctic Cities project for the financial years 2016-17, 2017-18 and 2018-19, to be funded in each year from the Economic Development Function, subject to the successful funding bid by the Antarctic Cities project to the Antarctic Research Council.

2.3. Funding by the Antarctic Research Council of $389,335 was confirmed which meant the project was able to go ahead.

2.4. The City has provided $20,000 cash and up to $20,000 in kind for the three year duration of this project.

2.5. It is difficult to place a financial value on the development of knowledge. Even without attributing a dollar value to this outcome of the project, the project is able to demonstrate an economic multiplier in the local economy from Council’s cash contributions. For the Council input of $60,000 cash, the project reinvested $205,000 in the local economy over three years.

2.6. The key outputs of the project are summarised as follows and discussed in more detail later in the report:

· An Urban Sustainability Profile (Attachment B)

· An Antarctic Connectivity Index

· Antarctic Cities Surveys

· Antarctic Futures Game

· The Antarctic Youth Coalition

· A Draft Charter of Principles for Antarctic Cities (Attachment C)

2.7. Outcomes to date from a City of Hobart perspective (also described in more detail in section 4.9) are:

· Heightened understanding of the City’s connectivity to Antarctica.

· Greater connection to the other Antarctic gateway cities.

· Connection with the Antarctic Youth Coalition.

· An understanding of the uses and application of the Antarctic Connectivity Index.

· An early draft of a charter as a starting point to instigate collaboration with other Antarctic gateway cities.

3. Recommendation

That the Hobart specific interim summary and update to the Committee on the progress of the Antarctic Cities Project be received and noted.

4. Background

4.1. There are five global gateway cities to Antarctica, these are Hobart (Australia), Punta Arenas (Chile), Ushuaia (Argentina), Christchurch (New Zealand) and Cape Town (South Africa).

4.2. This project examining the connections of the cities commenced in 2017.

4.3. Key project partners are:

· University of Tasmania

· Western Sydney University

· Institutes in Hobart, Christchurch and Punta Arenas including the University of Magallanes, Instituto Antarctico Chileno and Antarctic Tasmania (Tasmanian Government).

4.4. There were two levels of involvement in the project, Group 1 and Group 2 cities. Contributors from Group 1 cities (Hobart, Punta Arenas and Christchurch) worked closely with the project team to ensure that their goals were embedded in the project during the early stages. Group 2 cities (Ushuaia and Cape Town) did not contribute funding, with the research limited to working with a small group of experts and involving their young people in the project via an online game.

Key Contributors

4.5. The Lead Chief Investigator is Juan Francisco Salazar (Western Sydney University) who has worked extensively on Antarctic Research projects, including being sponsored by the Chilean Antarctic Institute to conduct three fieldwork seasons in the Antarctic Peninsula.

4.6. Chief Investigator Elizabeth Leane (IMAS / UTAS) has published three books about Antarctica and over 50 research publications. She has been awarded an ARC Future Fellowship "Integrating the Humanities into Antarctic Studies" (2012-16) and has been Lead Chief Investigator of two ARC Discovery Grants.

Project Aims

4.7. Initial aims of the project were to:

4.7.1. Identify possibilities and obstacles for reconceptualising the five Southern Rim urban centres as custodial Antarctic cities.

4.7.2. Evaluate best practices of how the Antarctic sector can engage communities, including tourists, both locally and globally.

4.7.3. Evaluate the opportunities and barriers for engaging youth in thinking about the future of Hobart and its relation to Antarctica.

4.7.4. Develop effective sustainability tools, guidelines and frameworks linking global commons, Antarctic values and urban planning.

COVID-19 Impact

4.8. An event and presentations on the project were planned for July / August 2020 to coincide with SCAR / COMNAP and other events taking place in Hobart. Given that the Tasmanian borders are still closed and that committees continue to be held virtually, Professor Juan Salazar and Professor Elizabeth Leane will both present to the Economic Development and Communications Committee. Ms. Chloe Power will also present. She is one of five Antarctic youth ambassadors from the five gateway cities who visited Antarctica as part of this project in February this year. Chloe is based in Hobart.

Outputs of the Project

4.9. As per Attachment A (Interim Final Report Summary), the six principal outputs of the project are:

4.9.1. An Urban Sustainability Profile

Using a pre-designed profile template, sustainability assessments were produced for Hobart, Christchurch and Punta Arenas using a nine point scale against a series of qualitative questions. Questions related to economics, ecology, politics and culture and were considered by key experts from each city.

One hundred and thirty-five experts took part in the Urban Profile and Index workshops across the cities, including 57 in Hobart over two workshops.

The profile for Hobart is as follows:

4.9.2. The profiles allow for identification of strengths and weaknesses in each city relating to their sustainability and connection to the Antarctic region.

It is apparent from the profile that Hobart’s strengths when it comes to connectivity predominantly lie in culture and politics. Ecology and economics are the weaker areas for the city, particularly when it comes to embodiment and sustenance and technology and infrastructure.

The accompanying report for the Hobart profile is included in this report as Attachment B. The report sets out in detail the responses to questions in each of the four categories (economics, ecology, culture and politics) that led to the profile above.

4.9.3. This kind of profiling is useful to stakeholders such as the State Government (Antarctic Tasmania) in setting their strategic direction. This is also useful to organisations such as the Tasmanian Polar Network and the City of Hobart as a member when lobbying the Federal government for support for particular Antarctic activities. Should the City of Hobart at any point seek to expand its support of the sector beyond the civic (i.e. staging the Antarctic Reception and broadening community awareness of Hobart’s status as an Antarctic gateway), this profile would assist the City in targeting its activities for the greatest benefit.

4.9.4. An Antarctic Connectivity Index

This is an innovative instrument developed through collaboration involving a number of Antarctic experts from universities, government agencies and the private sector. The index is a participatory tool that can be used to measure positive connectivity with Antarctica by city planners, businesses, cultural organisations, environmental NGOs and policy makers.

Details for calculating the index will be provided in the final end of year report.

4.9.5. Antarctic Cities Surveys

The project team identified a gap in all gateway cities when it came to hearing the voices of the community sharing their thoughts on Antarctic connectivity.

To address the gap, in 2018 the project surveyed residents’ concerns, attitudes and priorities in relation to Antarctica. Nine hundred and eighty interviews were conducted across three cities of which 300 were in Greater Hobart.

The surveys found that the Greater Hobart community displayed varying but generally strong connections to Antarctica. In the last year, one in ten participants had been directly involved in economic activities relating to Antarctica; almost a fifth had participated in Antarctic tourism activities and more than a third had visited an exhibition, festival or cultural activity focussed on Antarctica.

In July 2020 a new survey was conducted across all five gateway cities. The results from this will be included in the final report to be delivered by the end of 2020.

4.9.6. Antarctic Futures On-line Game

This bilingual game was developed in house through a process of co-design with young people from each city as a means of engagement. The game’s goal was to allow players to experiment first-hand with how different global policy responses to climate change would impact the world. The game was intended to entertain and encourage a reflection of serious matters.

Seven workshops were run of which three were in Hobart. One hundred and three young people in total took part (47 from Hobart).

The Antarctic Futures game is now a dynamic educational resource that can be used to raise issues such as climate change and environmental policy. An associated resource pack has been designed to help teachers and facilitators adapt the game to a variety of learning contexts.

The game is still in development so future updated versions are likely to be released.

4.9.7. The Antarctic Youth Coalition

During August and September 2019 one Antarctic youth ambassador from each of the gateway cities was selected to visit Antarctica to launch an Antarctic Youth Coalition. The mission of the coalition is:

“To build a network of young custodians across the five Antarctic gateway cities, advocating for Antarctica’s future by promoting sustainable communities and urban identities.”

The ambassador for Hobart is Ms. Chloe Power. Chloe holds a Master’s degree in Marine and Antarctic Science from UTAS. She works as an expedition guide and her passion is science communication. Chloe will be presenting some of her thoughts and experiences briefly to the committee.

It is anticipated that as part of its role as a promoter, supporter and advocate for Hobart’s connection with Antarctica, the City of Hobart will have an ongoing dialogue with the Antarctic Youth Coalition.

4.9.8. A Draft Charter of Principles for Antarctic Cities

The Charter of Principles for Antarctic Cities (Attachment C) was developed by the Antarctic Cities project team. This was an early draft to be further developed by the City of Hobart and used to inform a discussion with the Mayors of the other four gateway cities during their anticipated visit to Hobart in July / August 2020.

Outcomes of the Project

4.10. Outcomes from the project to date from a City of Hobart perspective are:

4.10.1. A heightened understanding of the City’s connectivity to Antarctica from a community and academic perspective.

The Urban Sustainability Profiles provide a clear pictorial snapshot based on local expertise of Hobart’s strengths and weaknesses when it comes to sustainability and connection to Antarctica. Attachment B also provides a detailed breakdown of how the scores in each of the areas of economics, ecology, culture and politics were arrived at.

This information is useful to the City in its continuous consideration of Hobart’s relationship with Antarctica and the City’s role in strengthening and supporting it. This is because it clearly sets out perceived strengths and weaknesses of those most engaged in the sector when it comes to Hobart’s connection to Antarctica.

4.10.2. Greater connection to the other four Antarctic gateway cities at an officer and Mayoral level.

The Antarctic Gateway Cites Project has provided an opportunity for the City to leverage relationships that have been formed in order to drive the project. This led to the Council supporting the invitation of the other Antarctic City Mayors to Hobart in August 2020 during SCAR / COMNAP to discuss collaboration opportunities which unfortunately had to be cancelled as a result of COVID-19.

Officers are confident that the relationships formed as a result of this project will go on to support any collaborations between the gateway cities for many years. The project team including Professor Salazar and Professor Leane are very well connected with the Antarctic cities and will continue to be a source of information for Council officers after this project is finalised.

4.10.3. Connection with the Antarctic Youth Coalition which is driven by young Antarctic ambassadors from each city.

The Antarctic Youth Coalition was launched in February 2020 and is still in its early stages of development. The Lord Mayor of Hobart is connecting with this group in late July and it is anticipated that the relationship between the City and the Coalition will progress from this point.

From a Council perspective, through the staging of the annual opening of the Antarctic season reception, connection with those working in the sector is strong. Connection with other groups such as the younger community members is harder to establish which adds to the potency of this coalition.

4.10.4. An understanding of how the Antarctic Connectivity Index can be used to measure Hobart’s connectivity to Antarctica in the future as a means of shaping policy.

Officers at the City of Hobart were involved in the development of the connectivity index which is intended to be a useful tool that can be used at any point in time to evaluate the connection between Hobart and Antarctica across four indicators (political, economic, ecological and cultural). This can be utilised as a means of appraising the City’s (and other stakeholders’) actions in supporting the connection with Antarctica.

4.10.5. An early draft of a charter was developed by the Antarctic Cities project team. This was intended as a starting point for the City of Hobart to develop a further document intended to focus the discussion of the Mayors of the Antarctic gateway cities visiting Hobart in 2020. Should the Council seek to re-engage with the Antarctic city mayors, this charter provides a sound starting point.

Economic Value

4.11. It is difficult to place a financial value on the development of knowledge. Even without attributing a dollar value to this outcome of the project, the project is able to demonstrate an economic multiplier in the local economy from Council’s cash contributions. For the Council input of $60,000 cash, the project reinvested $205,000 in the local economy over three years. This was via the following:

4.11.1. Three hundred people were surveyed in Hobart. This was conducted by a local business at a cost of approximately $15,000.

4.11.2. Much of the costs of the Antarctic expedition for the youth ambassadors was funded by private sponsors which in Hobart represented $5,000.

4.11.3. Eight casual jobs were created (seven researchers and one manager) over the three years. Four of these were in Hobart and represent a contribution to the local economy of approximately $125,000.

4.11.4. Significant media coverage was generated for Hobart as an Antarctic Gateway city which often generates many indirect outcomes such as increased visitation.

5. Proposal and Implementation

5.1. It is proposed that this report is received and noted by the Council.

5.2. A further final report will be presented to the Council by the end of 2020 to mark the end of the project.

6. Strategic Planning and Policy Considerations

6.1. Council support for this project is in line with the City of Hobart Capital City Strategic Plan 2019-29.

4.5.3 Acknowledge, celebrate and support Hobart’s position as a gateway to the Antarctic and Southern Ocean.

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. None. Financial contributions were made in 2016-17, 2017-18 and 2018-19.

7.2. Impact on Future Years’ Financial Result

7.2.1. None

7.3. Asset Related Implications

7.3.1. None

8. Legal, Risk and Legislative Considerations

8.1. The project was governed via a legal agreement between Western Sydney University and the City of Hobart setting out how the Council contributions would be spent.

9. Environmental Considerations

9.1. The significant engagement aspect of this project, particularly through surveys and the development and playing of the on-line game have encouraged the community to share their opinions or develop further thoughts relating to climate change and the vulnerability of Antarctica.

10. Social and Customer Considerations

10.1. As observed by the Antarctic Cities project team in their interim report (Attachment A):

“Across all five cities there is evidently a high level of political and economic investment in growing their Antarctic profiles. But the voices of city residents themselves can remain largely absent from this dialogue at both a regional and national level. To address this gap, in 2018 we undertook a survey of residents’ concerns, attitudes and priorities in relation to Antarctica in Hobart.”

Three hundred people in Greater Hobart were surveyed as part of this project which broadened the conversations beyond those who work in the sector.

Young people were also engaged. One hundred and thirteen young people in Hobart took part in the project as on-line game testers and entrants to the two competitions that took place.

11. Marketing and Media

11.1. This project has received significant media coverage in Tasmania, nationally and internationally. All coverage is listed in Attachment A.

11.2. The project was picked up by the media 110 times with coverage ranging from an ABC Radio Hobart interview, to an article published via the Conversation reaching 649,170 in Australia, 71,383 in the UK and 31,275 in the USA. All media coverage affirmed Hobart’s status as an Antarctic gateway city and the City of Hobart’s support for the project.

12. Community and Stakeholder Engagement

12.1. One of the dominant themes of this project was the connection of the Antarctic gateway cities to Antarctica and each other. Public engagement on this project included two workshops with 57 urban and Antarctic experts, two surveys of residents (300 from Greater Hobart), three youth scenario planning and game design workshop with 47 young people from Hobart (on the design and testing of an on-line game) and a competition for primary school students to articulate their connection to Antarctica (10 young people from Hobart took part by showing their photographs at the 2018 Australian Antarctic Festival).

The project also launched the Antarctic Youth Coalition during the sponsored trip to the Antarctic Peninsula in 2020 (The Antarctic Cities Youth Expedition) where one young leader from each city was selected through a competitive selection process, to visit international research stations. Close to 100 young people applied for the opportunity (56 of which were from Hobart).

13. Delegation

13.1. This matter is delegated to Committee.

As signatory to this report, I certify that, pursuant to Section 55(1) of the Local Government Act 1993, I hold no interest, as referred to in Section 49 of the Local Government Act 1993, in matters contained in this report.

Lucy Knott

Senior Advisor Economic Development

Luke Doyle

Manager Economic Development Engagement & Strategy

Tim Short

Director Community Life

Date: 23 July 2020

File Reference: F20/63511

Attachment a: Antarctic Cities Interim Report (Hobart) ⇩

Attachment b: Hobart Urban Sustainability Profile ⇩

Attachment c: Draft Charter of Principles for Antarctic Cities ⇩

Item No. 6.2

Agenda (Open Portion)

Economic Development & Communications Committee Meeting

Page 119

30/7/2020

REPORT TITLE: Business Events Tasmania Annual Funding Submission

REPORT PROVIDED BY: Senior Advisor Economic Development

Manager Economic Development Engagement & Strategy

Director Community Life

1. Report Purpose and Community Benefit

1.1. This report has two purposes:

· To present Business Events Tasmania’s performance during 2019-20 against priorities set out in the Memorandum of Understanding (MOU) 2017-20 (Attachment A to this report).

· To introduce Business Events Tasmania’s Funding Submission for the financial year 2020-21 (Attachment B), as presented by the CEO Marnie Craig.

1.2. The main goal of Business Events Tasmania (BET) is to attract business events to Tasmania, particularly during the shoulder and off-peak seasons. The community benefits are year round vibrancy in the city and boost to the local economy associated with conference attendees (the highest spending type of visitor).

2. Report Summary

2.1. The City of Hobart has supported BET financially since 2009.

2.2. This support is based on the continued achievements of BET in attracting business events to Hobart.

2.2.1. 2019-20 is no exception with BET exceeding the funding KPI of 74 bid wins, securing 80 bids to 30 June 2020 (noting that from March until June any decisions on future conferences were paused, in line with COVID-19 lock downs).

2.2.2. The 80 bids equating to 16,725 delegates (excluding partners) will create an estimated future economic worth of approximately $43.4 million.

2.3. BET’s activities provide far reaching community benefits:

· Boost to the local economy associated with conference attendees (the highest spending type of visitor).

· Economic activity beyond measurable metrics, underpinning knowledge creation and exchange, and future investment among other impacts.

· Ambassador Program increasing activity within valuable trade sectors, delivering economic benefits beyond visitation dollars.

· Added population and vibrancy in the city year round.

2.4. With the significant impacts of COVID-19 on the business events and tourism market, the work of BET in continuing to promote Hobart as a business events destination will be essential in supporting the City’s post COVID-19 recovery.

2.5. BET is seeking $53,728 in support from the City of Hobart for the financial year 2020-21. This is last year’s funding figure, plus CPI, reduced by 50 per cent. This is included in the economic development budget for 2020/21.

2.6. Whilst the industry largely remains “paused”, as a result of COVID-19, the Council’s funds will enable Business Events Tasmania to continue their work in promoting Hobart to the business events market, thus contributing to economic recovery. BET is also well positioned to optimise the opportunity to attract intra-state business events that due to border closures are looking for attractive domestic locations to replace overseas options.

3. Recommendation

That:

1. The Council notes Business Events Tasmania’s funding submission for the financial year 2020-21.

2. The Council resolves to provide funding of $ 53,728 to Business Events Tasmania which has been included in the Economic Development Budget Function of the 2020-21 Annual Plan.

4. Background

4.1. Business Events Tasmania (BET) is the peak organisation for the business events sector in Tasmania.

4.2. BET’s primary role is to market Tasmania’s business events credentials nationally and internationally and work with local industry and event planners to bring business events to Tasmania.

4.3. The City of Hobart has supported BET for a number of years:

Summary of financial support
2009-10	$60,000
2010-11	$65,000
2011-12	$80,000
2012-13	$90,000
2013-14	$90,000
2014-15	$92,500
2015-16	$93,300 plus $6,700 for feasibility study
2016-17	$100,000
2017-18	$102,300
2018-19	$104,,200
2019-20	$105,555
2020-21	$ 53,728 requested

4.4. The relationship between BET and the City of Hobart was most recently governed by a Memorandum of Understanding (MOU) 2017-20. This was the third MOU to date and it expired in June 2020.

4.5. The MOU acknowledged that business events bring significant revenue to Hobart and Tasmania each year and that Council and BET share common interests and benefits associated with this visitation.

4.6. The main performance indicator in the 2017-20 MOU is BET delivering against the bid win targets for Hobart (as in the table below). Note that the ‘number of BET wins (target)’ refers to the number of bids won in any given financial year, to be delivered in the future. Bid wins and the staging of the conference / event is rarely in the same year.

Financial Year	CoH Funding	Number of BET Bid Wins (target)
2017-18	$102,300	70
2019-19	$104,200	72
2019-20	$105,555	74

As at 30 June 2020, BET secured 80 bids against a target of 74.

4.7. The City of Hobart (CoH) and BET worked together to collaborate on MOU priorities in the financial year 2019-20. The following sets out achievements against the priorities.

4.7.1. Collaboration on bids where appropriate

BET continues to actively promote the City of Hobart as a conference destination in all activities including bids, site inspections, trade shows and in market activities.

Conversations between BET and CoH staff have been held, to discuss the types of business events that BET should be targeting in line with the CoH’s strategic plan, the City’s key sectors and International Relations Action Plan.

4.7.2. Jointly work to identify targeted business sectors that link to key areas of growth in Hobart and Tasmania

In the 2019-20 financial year, Hobart hosted 22 business events that link back to key strategic sectors for the City of Hobart, including Education, Science – medical, Science – maritime and Antarctic and Southern Ocean. These events attracted approx. 6,800 delegates and injected approx. $15.3M into the Tasmanian economy. (Attachment C to this report)

4.7.3. Building relationships (in addition to collaborative initiatives outlined above) – Elected Members and Council officer attendance at BET presentations, bids, seminars and member functions

Elected Members and Council officers attended the BET Ambassador annual event hosted by the Premier Will Hodgman and the BET AGM.

BET was represented on the CoH Events (Medium) Grant Assessment Panel.

4.7.4. Collaboration on social media opportunities

During the 2019-20 financial year, BET’s Marketing and Communications Manager worked with CoH representatives to source imagery and collateral to form part of a social media campaign to promote the Council’s venues through Facebook, LinkedIn and Instagram. This included Town Hall, City Hall, The Tasmanian Travel and Information Centre, Waterside Pavilion and the City’s creative spaces. The campaign was initially set to run between 6 April and 20 May 2020 (a key decision-making time for clients in the lead up to end of financial year) but due to COVID-19 will be rescheduled for later in the 2020 calendar year.

Throughout the 2019-20 financial year, BET has included social media posts promoting the City and conferences that align to the City’s key areas of growth (Attachment D to this report). Across our platforms, BET have posted about Hobart 85 times. This includes promotion of members in the Hobart region as well as posting about specific conference activity in Hobart and southern Tasmania.

4.7.5. Digital presence of TTIC and the City venues on the BET website and presence in the Planners Guide

4.7.6. City of Hobart provided content to form part of BET’s major piece of promotional collateral; The BET Planners Guide. This featured the City, Town Hall, City Hall, Waterside Pavilion at Mawson Place, Conference Room and the TTIC (Attachment E to this report). The publication is promoted through targeted electronic direct mail to BET’s database of over 3,500 business event organisers.

The City (as a destination) as well as Council properties have a presence on the BET website.

4.7.7. Ongoing promotion of the Council’s meeting venues / facilities through site inspections, familiarisations and bids

City Hall remains the most in demand of the City of Hobart venues amongst clients. In the 2019-20 financial year, nine clients were taken to City Hall for a site inspection, 12 requests for proposals were sent to City Hall and the venue was recommended, and contact details shared to another 11 clients.

4.7.8. A member of the BET team to work with appropriate City of Hobart representative to assist in the creation of appropriate marketing collateral for city owned venues

BET staff have been working closely with Council officers to ensure the latest imagery and branding is included in BET’s new website to be launched mid-July 2020.

Other Achievements

4.8. Achievements not explicitly listed in the MOU but noteworthy are:

4.8.1. Strategic Bids

A key strategic imperative in BET’s strategic plan 2019-22 (Attachment F) is to position BET for long term sustainable growth through increased awareness of the benefits of the knowledge economy.

The business events sector augments economic activity well beyond measurable metrics, underpinning knowledge creation and exchange, and investment among other impacts. These business events are referred to as the knowledge economy.

The following events have been secured in the knowledge economy:

Event Name	Delegates	Value	Market Segment
2021
Australian Group on Severe Communication Impairment Conference 2021	300	$855,600.00	Science
Australian Geography Teachers' Association National Conference 2021	150	$310,200.00	Education
Australasian Plant Pathology Society Biennial Conference 2021	300	$855,600.00	Science
Australasian Cytometry Society Conference 2021	150	$427,800.00	Science
Australian Dairy Conference 2021	450	$962,550.00	Food and Agribusiness
Australasian Association of Philosophy National Conference 2021	200	$713,000.00	Education
International Temperate Reefs Symposium 2021	250	$713,000.00	Science
2023
International Towing Tank Conference 2023	300	$1,587,600.00	Science

4.8.2. Tasmanian Ambassador Program:

BET is committed to build on the success of the Ambassador Program. Underpinning the program are 12 influential ambassadors who are leaders in their key industry sectors including the Antarctic and Southern Ocean and communication and technology. The ambassadors assist in promoting Tasmania on an international stage as a top class business event location.

4.8.3. Marketing

In 2019-20 national trade shows continued to provide a platform for BET to showcase Tasmania as a business event destination to key markets. BET attended the following trade shows; Professional Conference Organiser (PCOA), Dreamtime and Asia-Pacific Incentives and Meetings Expo (AIME).

4.9. Although the latest MOU expired as of 30 June 2020, given the uncertainty and extent of the significant impacts of COVID-19, particularly on the tourism and events sector, it is felt that this year is not the time to develop a new MOU.

4.9.1. Given the successful ten year relationship, officers are confident that MOU coverage is not required for the 2020-21 period. The plan instead is to re-convene in February - March 2021 to develop a three year MOU for 2021-22, 2022-23 and 2023-24.

4.9.2. Aims for the 2020-21 year will be based on those of the preceding year and are set out in section 4.18.

4.10. It is the intention that by the Council providing ongoing funding, BET will focus on economic recovery and what is needed to support member partners and maximise new business event opportunities for Hobart, now and into the future.

4.10.1. BET has seen early signs of recovery with increased requests for new sales proposals in recent weeks (17 bids) for business events taking place in the 2021 and 2022 calendar year. This however would be significantly impacted by further spikes in COVID-19 cases.

4.10.2. The table below includes business events that have been directly secured for Hobart by Business Events Tasmania for future financial years. Please note that eight conferences in the 2020-21 table (1,910 delegates) relate to activity still booked for 2020. It would be reasonable to expect that these conferences are likely to cancel, postpone or adopt a hybrid model.

Business Events Secured by BET
2020-21	Conferences	Delegates	Room Nights	Estimated Economic Impact
Confirmed	25	7,675	23,665	$ 21,826,885.00
Pending	28	7,882	21,204	$ 21,619,723.00
Cancelled	11	2,451	13,692	$ 7,109,376.00
2021-22	Conferences	Delegates	Room Nights	Estimated Economic Impact
Confirmed	40	11,560	33,954	$ 29,618,090.00
Pending	10	3,800	10,810	$ 11,125,650.00
2022-23	Conferences	Delegates	Room Nights	Estimated Economic Impact
Confirmed	9	2,450	6,640	$ 6,701,460.00
Pending	15	6,960	20,550	$ 18,387,200.00
Cancelled	1	1,000	4,500	$ 3,670,000.00

4.11. In addition to the above, the following sales activities are in progress:

· Leads - 433 - Estimated Economic Impact $356,662,234

· Under Development - 263 - Estimated Economic Impact $209,354,381

· Pending - 59 - Estimated Economic Impact $58,487,973

4.12. BET is well positioned to pursue new opportunities in the intra-state market, given companies that would usually host business events ‘overseas’ will be turning their attention to desirable domestic locations.

4.13. Research conducted in 2019 for BET by Enterprise Marketing and Research Services (EMRS) found the average daily spend per delegate whilst attending a conference in Tasmania to be $672. These visitors also stay longer (6.1 nights on average) and 55 per cent of them intend to return to Tasmania for leisure in the next three years.

Impact of COVID19

4.14. The figures below break down the number of business events that have postponed or cancelled in Tasmania in 2020 due to COVID-19, as well as the number still scheduled to occur in late 2020.

· 8 (10%) business events are still due to take place in 2020

· 49 (65%) business events have postponed

· 18 (24%) of business events have cancelled

Key factors that will impact a return to ‘business as usual’ for the business events industry include:

· Domestic and international borders re-opening

· Airlines – what the domestic aviation situation looks like

· Restrictions on group gatherings

· Market confidence

4.15. The immediate and unknown future impacts of COVID-19 will undoubtedly affect BET’s bid wins during the 2020-21 year, highlighted in section 4.18.

Annual Funding Submission 2020-21

4.16. BET has provided its Annual Funding Submission for the 2020-21 financial year (Attachment B). This document outlines BET’s:

· Performance to date for the 2019-20 financial year.

· Strategy and targets for the 2020-21 financial year.

· Events secured and in the pipeline for 2021 and beyond.

4.17. BET is requesting funding for the financial year 2020-21 of $ 53,728, which is last year’s funding + CPI reduced by 50 per cent.

4.18. Given the potential impact on BET’s business of factors outside of their control such as restrictions on mass gatherings, border control and market confidence) etc. it is felt reasonable that BET does not set a KPI of bid target wins secured in 2020-21. BET will continue to work with the City of Hobart to deliver against collaboration activities delivered against in 2019-20:

· Collaboration on bids where appropriate.

· Building relationships between BET and CoH officers / elected members.

· Collaboration on social media opportunities.

· Ongoing promotion of the Council’s meeting venues.

· Working together to assist in the creation of appropriate marketing collateral for City owned venues.

4.19. Additionally, BET will work to:

· Ensure that the 25 events won for Hobart in 2020/21 remain in Hobart.

· Proactively influence conference organisers to adopt sustainability themes within their Tasmanian conference.

· Collaborate with the City of Hobart to identify and bid on business events that align with areas of key focus in the Economic Development Unit’s forward planning i.e. green and renewable economy, health care and social assistance, information and technology and science.

5. Proposal and Implementation

5.1. Should the Council support the recommendations in this report, arrangements will be made to provide the allocated funding for the financial year 2020-21 from the Economic Development Function.

6. Strategic Planning and Policy Considerations

6.1. The Council endorsed ‘Community vision for our island capital’ sets out what our community want Hobart to be in the future. Continuing support for BET is in line with the following elements of the vision:

2.2.9 We welcome visitors, and we strike a balance between meeting the needs of tourists and the needs of our communities.

4.1.1 We are a city of thriving, diverse sectors that foster a culture of welcome and value unique and transferable skills.

4.1.2 We excel in niche industries and expertise and quality work.

4.4.1 We enable clever and resourceful people to find each other and collaborate.

4.3.8 We promote Hobart as a perfect environment for remote workers, sole traders and niche small business.

6.2. Continued financial support for BET meets a number of Strategic Directions, as outlined in the City of Hobart Capital City Strategic Plan 2019-29.

1.1 Partnerships with Government, the education sector and business create city growth.

1.2 Strong national and international relationships.

1.3 An enriched visitor experience.

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. BET is seeking funding of $ 53,728 for the financial year 2020-21. This has been budgeted for in the 2020/21 economic development budget. This is last year’s funding figure, plus CPI reduced by 50 per cent.

7.2. Impact on Future Years’ Financial Result

7.2.1. None

7.3. Asset Related Implications

7.3.1. None

8. Legal, Risk and Legislative Considerations

8.1. The nature of the relationship between the City of Hobart and BET is one of mutual understanding and collaboration based on a successful relationship that has spanned the last decade.

8.2. There is a risk that this year the relationship is not governed by an MOU. Although there is no MOU in place, there are a number of agreed areas for collaboration between the City of Hobart and Business Events Tasmania. Given the relationship to date, Council officers are confident that the risk of these collaborative activities not taking place is minimal.

9. Environmental Considerations

9.1. BET runs a fully digitalised marketing and PR collateral and activities. This includes a more interactive online version of BET’s Planners’ Guide.

9.2. BET no longer has delegate satchels available for conference organisers and recommend organisers move to more sustainable practices.

9.3. Utilising strong lines of communications and relationships with event organisers and accommodation providers, BET actively encourage sustainability practices with marked success, including information provided by staff in the City of Hobart’s Parks and City Amenity Unit on practical things that can be done to achieve more sustainable outcomes.

10. Community and Stakeholder Engagement

10.1. Marnie Craig, Chief Executive Officer, Business Events Tasmania.

11. Delegation

11.1. This matter is delegated to the Council.

Lucy Knott

Senior Advisor Economic Development

Luke Doyle

Manager Economic Development Engagement & Strategy

tims short

Tim Short

Director Community Life

Date: 24 July 2020

File Reference: F20/74981; 17/62

Attachment a: City of Hobart and Business Events Tasmania MOU 2017-2020 ⇩

Attachment b: Business Events Tasmania's Funding Submission 2020_2021 ⇩

Attachment c: Business Events Tasmania - Strategic Conferences held 2019-2020 ⇩

Attachment d: Business Events Tasmania's Social Media Posts ⇩

Attachment e: Business Events Tasmania Planners Guide ⇩

Attachment f: Business Events Tasmania Strategic Plan - 2019/22 ⇩

Item No. 6.3

Agenda (Open Portion)

Economic Development & Communications Committee Meeting

Page 191

30/7/2020

REPORT TITLE: COVID-19 Economic Response and Recovery

REPORT PROVIDED BY: Manager Economic Development Engagement & Strategy

Director Community Life

1. Report Purpose and Community Benefit

1.1. The purpose of this report is to provide elected members with an update on the economic impacts of the COVID-19 pandemic on Hobart, and the City’s economic response initiatives to date.

1.2. The report then discusses projections about future economic impacts and opportunities.

1.3. Rather than providing a specific recovery plan, which will be the task of a subsequent report, this report intends to introduce a set of guiding principles to enable a focused yet flexible response to recovery as it continues to evolve. A flexible response is crucial for adapting recovery measures to uncertain and quickly-changing circumstances.

1.4. The community benefit of this report is that it provides information about how the City is contributing to economic recovery in Hobart, as well as key issues that will affect future recovery activities.

2. Report Summary

2.1. Pre-COVID-19, the Hobart economy was displaying steady growth (Hobart’s Gross Regional Product was estimated at $7.722 million in 2019, a rise of 6.4 per cent from the previous year) and 13.8 per cent from 2016, compared to Tasmania’s rise in Gross State Product of 8.8 per cent over the same three year period.

2.2. The World Health Organisation declared that COVID-19 was a global pandemic on 11 March 2020.

2.3. The economic and social effects of this pandemic – throughout the world, and from international to local levels – have been unprecedented.

2.3.1. It is estimated that as a result of the pandemic, 5,149 (8.3 per cent) of jobs in the city have been lost. This figure is 13.9 per cent (8,599 jobs) if those currently protected by JobKeeper are included in estimations. These figures are for June quarter 2020 as compared with the quarter average from the year before.

2.3.2. Decreases in payroll jobs at the national level between the week ending 14 March and the week ending 27 June 2020 were reported to be down 5.7 per cent.

2.3.3. Socially, in the City of Hobart local government area (LGA), a survey of 277 residents found 72 per cent of respondents reported an increase in social isolation; 48.5 per cent of respondents were working from home; while 36 per cent of respondents reported impacts on their mental health.

2.4. Economic commentators have referred to the ‘never normal’ being the new normal. The spread and resurgence of COVID-19, let alone the impacts, are practically impossible to predict given this virus has never before been encountered.

2.5. This unpredictability makes responding to the impacts of the pandemic challenging for all levels of government.

2.5.1. Businesses are obviously facing the same situation and Council officers found, through various means of engagement, that many local businesses were themselves responding rapidly and flexibly to their changing circumstances and continue to do so in order to secure their survival.

2.6. The City of Hobart’s response to date has been to complement the efforts of businesses and other support agencies. This has meant that business support has needed to be rapid and based on available data.

2.6.1. The Council has displayed courage and decisiveness in making swift decisions and supporting quick actions. Within three weeks of the pandemic being declared, the first quick response grant was launched. Many additional forms of assistance followed.

2.7. This report introduces a set of guiding principles to enable a focused yet flexible response to business support as the COVID-19 situation continues to evolve. These principles are:

· Economic recovery is focused on need and adding value.

· Economic recovery supports resilience.

· Economic recovery builds economic confidence and participation.

· Economic recovery is evidence-based.

· Economic recovery is flexible and adaptable.

2.8. The guiding principles are expected to inform actions within the following categories, with additional categories to be defined by the results of engagement and research:

2.8.1. Internal engagement: to ensure a coordinated and efficient economic recovery effort.

2.8.2. Business consultative group: a group formed by the City to test recovery planning and actions.

2.8.3. Wider business, community and stakeholder engagement: listening to those affected and those providing assistance about what is needed and lessons learned.

2.8.4. Grants: providing funding to businesses and/or individuals to help them recover, adapt and flourish.

2.8.5. Marketing: promoting Hobart businesses and supporting community members to consume locally.

Both the principles and broad areas of activity are intended to feed into the City’s Economic Recovery Framework and Action Plan that will be presented to the Council at a future meeting.

3. Recommendation

That:

1. The Council endorse the following guiding principles for economic recovery which will inform future Council activities in this area:

i) Economic recovery is focused on need and adding value.

ii) Economic recovery supports resilience.

iii) Economic recovery builds economic confidence and participation.

iv) Economic recovery is evidence-based.

v) Economic recovery is flexible and adaptable.

2. The Council endorse the creation of a flexible COVID-19 economic recovery framework and action plan, including associated community engagement.

3. The Council endorse the creation of a COVID-19 economic recovery business consultative group, as a temporary means of seeking feedback on recovery efforts.

(i) The General Manager is delegated responsibility for finalising the group’s membership and terms of reference.

4. The Lord Mayor and Chair of the Economic Development and Communications Committee seek to coordinate a meeting with relevant Australian and/or Tasmanian Government representatives to inform economic recovery planning.

4. Background

4.1. On 23 March 2020, the Council resolved inter alia that:

6. Council endorse the initiatives outlined in this report to support local businesses and creative industries utilising funding allocated to this year’s Dark Mofo event ($190k in cash assistance).

11. The Council agree to the establishment of a City of Hobart Business Continuity and Resilience Committee, at the appropriate time,

a) The Committee be responsible for the following:

(i) Serving as the business interface to the Council on all matters relating to the economic survival and resurgence of Hobart businesses, as circumstances permit;

(ii) To be an early listening post for the needs of business;

(iii) To be an early sounding board for possible decisions of the Council which will have an impact on business in our municipal area;

(iv) To provide advice and information on Council activities which may or will impact businesses positively or negatively;

(v) To provide advice wherever possible and relevant to assist business recovery;

(vi) Over time, to provide the Council with positive strategies for business resilience, recovery and adaption.

b) Membership to be determined by the Committee, but to include representatives of all associations representing business in the City.

c) Arrangements around convening and attendance at meetings be further developed.

4.2. On 27 April 2020, the Council resolved inter alia that:

4. The Council note actions taken in response to the Council resolution of 23 March 2020 as outlined in this report and specifically reaffirm its approach to deal with financial hardship in the community in the period through until 30 June 2020, as resolved at that meeting.

5. The Council authorise the General Manager to offer a COVID-19 focused community grants program at the appropriate time in the remainder of this financial year utilising a proportion of unallocated February 2020 community grants round funding.

6. The allocation for the Council grants program in the 2020/21 Budget Estimates be retained at the same amount as presently in the 2019/20 Budget Estimates, namely $1.167M, subject to:

(i) In determining the guidelines for any business and community grants, the General Manager seek advice from an arts advisory group and a business advisory group; and

(ii) The General Manager undertake a review of the allocation for the Taste of Tasmania and Dark Mofo and report back to the Council in May 2020.

7. The General Manager consider streamlining and simplifying the grants system to make it more accessible for applicants.

9. The Council approve the City of Hobart Financial Hardship Assistance Policy marked as Attachment F to item 10 of the Open Council agenda of 27 April 2020.

13. The Council approve the following elements of a Community Support package to commence on 1 July 2020 to be used by officers as the basis for preparation of the draft estimates:

· A zero per cent increase to the general and service rates excluding fixed service charges including waste management, green waste (including FOGO) and landfill rehabilitation, which will be considered on the basis of service cost.

· A policy of zero per cent increase on other Council fees and charges.

In light of this policy, given they will be the same as for 2019/20, Council delegate, pursuant to section 22 of the Local Government Act, to the General Manager the authority to set the Council’s fees and charges for 2020/21.

· Rates relief support package including waiving penalties and interest, negotiated payment plans, formal postponements and remissions on application and determined on a case by case basis in accordance with the City’s Financial Hardship policy (above).

· To this end, the Council delegate, pursuant to section 22 of the Local Government Act, to the General Manager the power to approve rates remissions up to a limit of $4,000 with remissions above that limit being approved by absolute majority of the Council, noting that all rate remissions are reported six monthly to the Council and are recorded as a grant / benefit in the Council’s Annual Report.

· Rent relief support package for the City’s tenants with payment plans developed on application and in accordance with the principles of the Financial Hardship policy and future commercial tenancy legislation

· A one-off COVID-19 creative, community and business grants program utilising the funding that would have ordinarily been made available through the various community grants streams of the City

· Development and enactment of long term social and economic recovery plans, including specifically establishment of the business continuity and resilience committee as approved by the Council on 23 March 2020 at the appropriate time.

14. The Council continue to authorise the General Manager to take all further actions necessary to address the COVID-19 pandemic.

4.3. This report is a response to the above resolution and has been summarised in a one-page document at Attachment A.

The Hobart economy pre-COVID-19

4.4. An awareness of the Hobart economy pre-COVID-19 helps with understanding the economic impacts of the pandemic.

4.4.1. The Australian Bureau of Statistics (ABS) census provides the most holistic and comprehensive data about indicators such as employment levels. However, it is only done every five years (most recently in 2016) and does not capture all economic data for Hobart. It is thus helpful to consult other sources to gain a broader and timelier understanding of economic conditions.

4.4.2. The National Institute of Economic and Industry Research (NIEIR) and other agencies use census data to provide estimates outside census years.

4.4.3. ABS business data is derived from the goods and service tax (GST) register held by the Australian Tax Office (ATO) and is for businesses with an Australian Business Number (ABN) that has been used during the previous two financial years.

4.4.4. The City of Hobart at times commissions reports to obtain more location- or topic-specific information. The most recent report for the Greater Hobart region was published in November 2019.

4.5. The following data are derived from these sources and pertain to the Hobart LGA unless stated otherwise.

4.6. The city’s gross regional product (GRP) is the value of the local economy generated by the workers who work here, after taxes and dividends have left the area.

4.6.1. For 2019, Hobart’s GRP was estimated at $7.722 million in 2019, a rise of 6.4 per cent from the previous year and 13.8 per cent from 2016 (Tasmania’s growth was 8.8 per cent over the same three-year period).

4.6.2. In 2019, Hobart generated 46 per cent of the GRP for Southern Tasmania and 24 per cent of the state’s GRP.

4.7. Public Administration and Safety is the largest employing sector, with an estimated 10,171 full time jobs, or 16.4 per cent, of Hobart jobs (compared to 8.0 per cent of all jobs in Tasmania) as at 2018/19.

4.7.1. Health Care and Social Assistance is the next largest employing sector, with 10,132 jobs.

4.7.2. All employing sectors can be seen in the following graph:

4.8. In 2019, there were an estimated 6,566 registered businesses in Hobart.

4.8.1. Professional, Scientific and Technical Services, which includes services ranging from law to computer system design, is the largest sector, with an estimated 1,065 businesses (16.2 per cent of all registered businesses).

4.8.2. Health Care and Social Assistance is the next largest and likely to have seen further growth since 2019, due to Tasmania’s ageing population and the current global health crisis.

4.8.3. All employing industries are displayed in the following graph:

4.9. The City of Hobart, Glenorchy City Council, City of Clarence, Kingborough Council and Brighton Council jointly commissioned research examining the potential economic opportunities for each LGA and the region overall.

4.9.1. The reports were released pre-COVID-19 in November 2019 and are available on the business pages of the City of Hobart website.

4.9.2. Sectors of opportunity identified for the Hobart LGA were:

Arts and recreation services	Potential areas of opportunity for arts and recreation include creative industries, artisans and recreation activities.
Education and training	Whilst education provision is not a core function of the City’s role, councils can play an advocacy role in ensuring the connection of youths with key education institutions and local businesses. Councils can also, through their usual interactions with local businesses, monitor skills shortages in the region.
Green and Renewable Economy	Opportunities for the green economy could include educating residents to reduce their consumption practices, or attracting businesses operating within the circular economy.
Health care and social assistance	Opportunities for health care and social assistance may include advocacy for increased service provision in terms of aged care or general health care provision. It is essential that provision of services meets the needs of the growing population.
Information technology	There are opportunities for the attraction of small-scale IT businesses to Greater Hobart.
Professional, Scientific and Technical Services, Finance and Insurance Services	Potential areas of opportunity for professional, scientific and technical services in Hobart include expansion of the finance and insurance sector, as well as increased diversification into professional, scientific and technical services. The attraction of these businesses can be small in scale, and based around population attraction. Councils can also play an advocacy role in skills development for these sectors.
Tourism and accommodation	As a tourism destination in its own right, opportunities for tourism for Greater Hobart are likely to focus on increasing visitor stay, expenditure or dispersal. An increase in tourism would lead to an increase in demand for accommodation services.

4.9.3. Some of these industries have been amongst the most severely affected by COVID-19 (e.g. tourism). Others have grown (e.g. health care – refer point 4.12).

The Economic Impacts of the COVID-19 Pandemic and Suppression Measures

4.10. Data from a range of sources shows that the impact of the pandemic on the Hobart economy has been profound.

4.10.1. This report focuses on impact data from profile.id (an online platform that aggregates and models ABS, NIEIR and other data sources) and the ABS. Both have released specific modelled data sets about the effects of COVID-19.

4.10.2. The data pertain to the Hobart LGA unless stated otherwise.

4.11. The gross regional product for June quarter 2020 (compared to the 2018/19 four-quarter average) is estimated to be down by 11.5 per cent.

4.12. Health Care and Social Assistance was the only industry to show a positive change in employment growth and output (defined as the total value of production of goods / services over a time period and measured in dollar value). It is estimated that 600 jobs were created in the city in this sector in the June 2020 quarter compared with the 2018/19 average.

4.13. The graphs below show the estimated number of job losses suffered by the most-affected sectors (as at the June 2020 quarter).

4.13.1. Employment levels are measured in terms of:

a) the number of jobs based in Hobart; and

b) the number of jobs held by people who live in Hobart.

4.13.2. When reading the graphs, it is important to note that these two metrics overlap, i.e. that a job can be both based in Hobart LGA and held by a resident of Hobart LGA. This overlap means some jobs can be double counted, so it is important to read these numbers separately, as two different ways of considering job losses in Hobart, both of which affect the city’s economic health.

4.13.3. The jobs have been split into those that are supported by JobKeeper and those that are not (refer graphs over).

JobKeeper is a temporary subsidy for businesses significantly affected by COVID-19.

Under the initial stage of the scheme, eligible employers, sole traders and other entities can apply to receive $1500 per eligible employee per fortnight.

From 28 September 2020, the subsidy will be reduced to $1200 per fortnight for full-time workers and $750 per fortnight for part-time workers working 20 hours per week or less. These subsidies will be reduce to $1000 and $650 respectively from 4 January 2021.

The scheme has been extended until 28 March 2021. Businesses must demonstrate a minimum decline in turnover to maintain eligibility (based on turnover).

Those jobs supported by JobKeeper are likely to be vulnerable when Federal assistance ends, and the decrease in payment amounts will likewise affect household incomes and thus spending patterns.

4.13.4. JobSeeker, which replaced Newstart, will also see its Coronavirus supplement reduced, from $550 to $250 per fortnight, meaning recipients will receive about $800 per fortnight.

4.13.5. It is anticipated that the City of Hobart’s economic recovery actions will primarily focus on jobs based in Hobart, which have the greatest likelihood of benefitting from City interventions.

4.13.6. Overall, an estimated 5149, or 8.3 per cent, of Hobart-based jobs have been lost. An estimated 8,599, or 13.9 per cent, of jobs have been lost if those covered by JobKeeper are taken into account. The number of employed residents is down by 9.7 per cent (16.4 per cent if including JobKeeper recipients), as shown in the table below.

4.14. These numbers in some ways reflect broader national job-loss trends, but there are particularly severe impacts for some sectors in Hobart.

4.14.1. profile.id has estimated job losses in Tasmania and Hobart LGA for June 2020 quarter compared to the 2018/19 four-quarter average), based on NIEIR data.

· The table over shows the estimated numbers of jobs lost in the June 2020 quarter compared with the 2018/19 quarter average. These figures include full-time, part-time and casual jobs. It is important to note that a single person can hold more than one job.

· Hobart’s share of estimated job losses in these sectors, as a proportion of the total for Tasmania, is around 30 per cent. This is for all sectors but Retail Trade, where the proportion is 20 per cent.

· The table also shows the importance of JobKeeper for supporting a significant number of jobs across most of the hardest-hit sectors.

· Accommodation and Food Services and Arts and Recreation are two sectors that are particularly hard-hit in terms of both percentage change and number of jobs lost.

Sector	Per cent change – jobs supported by JobKeeper	Number change – jobs supported by JobKeeper	Per cent change – jobs not supported by JobKeeper	Number change jobs not supported by JobKeeper	Per cent change – total supported and not supported by JobKeeper	Number change – total supported and not supported by JobKeeper
Accommodation and food services	- 30.28	- 1565	- 25.53	- 1320	- 55.81	- 2885
Arts and recreation services	- 39.15	- 694	- 24.60	- 436	- 63.75	- 1130
Professional, scientific and technical services	- 3.36	- 199	- 19.15	- 1132	- 22.51	- 1331
Other services	- 24.13	- 501	- 17.83	- 370	- 41.96	- 871
Retail trade	- 3.79	- 218	- 9.90	- 569	- 13.69	- 787

4.14.2. The ABS, through its ‘Weekly Payroll and Jobs’ data, reports on actual job losses by sector, for each state and territory, and Australia overall.

· This report cites the 15 July 2020 update, reporting on the timeframe of 14 March to 17 June, representing change since the 100th case of COVID-19.

· The hardest-hit sectors for Australia overall, in terms of the percentage change in jobs, are Accommodation and Food Services (-21.2 per cent); Arts and Recreation Services (-18.1 per cent); Rental, Hiring and Leasing Services (-17.7 per cent); Professional, Scientific and Technical Services (-3.9 per cent); and Agriculture, Forestry and Fishing (-6.0 per cent).

· Tasmanian job losses were on par with Australia’s overall, with the exception of Agriculture, Forestry and Fishing, which is down by 11.6 per cent.

4.14.3. There have been some faint signals of recovery for Tasmania overall, with ABS data showing an increase of 0.6 per cent in payroll jobs between 20 and 27 June 2020 – the only state or territory to show a positive change so far.

4.15. The ABS Business Impacts of COVID-19 Survey (June 2020) found that 66 per cent of Australian businesses were experiencing decreased revenue compared to the same time last year. The most affected industries (Australia-wide) were as follows, based on the proportion of businesses in that sector reporting a reduction in revenue:

· Education and training (87 per cent);

· Accommodation and food services (84 per cent);

· Information media and telecommunications (80 per cent);

· Arts and recreation services (78 per cent);

· Administrative and support services (78 per cent).

Of these, Accommodation and Food Services (63 per cent), Arts and Recreation Services (60 per cent) and Information Media and Telecommunications (53 per cent) reported that revenue had reduced by 50 per cent or more compared to the same time last year.

Impacts on Tourism

4.16. It is important to note that ‘tourism’ does not constitute a sector in terms of ABS statistics.

4.16.1. However, we can see from the impacts on other sectors that service the tourism / visitor economy (accommodation and food services, arts and recreation services) that the impacts of travel restrictions have been severe for Tasmania, given its position as a tourist destination, and for Hobart, as a key gateway city.

4.16.2. Much media attention has centred on the statement that Tasmania is losing 51 tourism jobs per day and that the tourism industry is facing daily revenue losses of $4 million.

4.16.3. These numbers were compiled by Lucid Economics and were cited in an Australian Tourism Industry Council media release. The media release did not provide details of how they were generated, making their reliability difficult to assess.

4.16.4. Regardless, the data show that a large number of tourism‑related jobs have been lost or are reliant on JobKeeper, making them vulnerable when the scheme ends.

4.16.5. From a social recovery perspective, it is important to note that many tourism and hospitality-related jobs are held by young people.

Social impacts related to economic activity

4.17. The volume and depth of data available on the economic impact of COVID-19 outweighs data on the social impact.

4.18. At a national level, the ABS has conducted a telephone survey of approximately 1,000 households every two weeks since the start of April.

4.18.1. The range of survey questions has changed over the weeks as the situation has evolved. Most recently the survey has captured data on personal and household stressors, emotional and mental wellbeing, health service use, moving house, and job status.

4.18.2. Relevant findings include:

· 94 per cent expect their households to be able to pay bills received in the next three months;

· 64.2 per cent of respondents had a job in late June compared with 66.2 per cent in early March;

· One in four Australians (25 per cent) felt nervous at least some of the time in June 2020, compared with 35 per cent in April 2020.

4.19. Information at the Tasmanian or Hobart LGA level is more limited. The ‘Tasmania Project’, run by the University of Tasmania’s (UTAS) Institute for the Study of Social Change, has been the most comprehensive survey of Tasmanian community experiences during COVID-19.

4.19.1. The City’s economic and social recovery teams have engaged with the Tasmania Project team to share information about community impacts. The UTAS team has generously shared Hobart LGA-specific data to help inform the City’s work.

4.19.2. Two general surveys captured personal, social and financial experiences related to the pandemic, as well as perceptions about the future.

· The first general survey had 1140 participants. Of those, 299 participants, or 26.2 per cent, resided in Hobart LGA.

· The second general survey had 1128 participants. Of those, 230 participants, or 18.3 per cent, resided in Hobart LGA.

4.19.3. The surveys yielded a range of fascinating results. This report focuses on a sample of those related to household finances and the economy. Results pertain to Hobart LGA unless stated otherwise.

4.19.4. A preliminary report on findings from the first survey was released on 25 May. Insights specific to Hobart LGA include:

· 54.3 per cent felt well-supported by their employer, where 31.5 per cent felt neutral and 14.2 per cent did not feel supported.

· 82.4 per cent felt concerned or very concerned about Australia and the world going into an economic depression; 71.8 per cent felt concerned or very concerned about how long it would take for things to go back to normal.

· 45 per cent felt concerned or very concerned about not being productive at work.

· 53.2 per cent felt meaningful job opportunities were one of the most important things for Tasmania’s future.

· 55.4 per cent were not confident that the Tasmanian economy will fully recover; 20.7 per cent felt that it would.

· Respondents were split on whether life will be better for most Tasmanians after this, with 23.7 per cent agreeing, 34.2 per cent neutral and 42.1 per cent disagreeing.

· Of the 59.5 per cent of respondents working from home (solely or in combination with working at work), 19.9 per cent found it easier, 49.3 per cent found it more difficult, and 30.8 per cent about the same.

· Compared with prior to the COVID-19 pandemic, one in five (20 per cent) employed people in Tasmania have done more paid work. In the Hobart LGA, this is 10 per cent.

· 13 per cent of Tasmanians reported having to cut spending on essentials (food, electricity) to pay for housing. 10 per cent of respondents in the Hobart LGA reported the same.

4.19.5. A report on findings from the second survey was released on 22 June. Some questions were repeated across both surveys. Insights specific to Hobart LGA include:

· 40.6 per cent were not confident that the Tasmanian economy will fully recover; 36.7 per cent felt that it would. This was a significant increase from the first survey.

· 74.8 per cent did not think Tasmania’s economic future has been unnecessarily damaged.

· For Tasmania’s recovery, respondents thought the following sectors should be prioritised: Education and Training (70 per cent), Health Care and Social Assistance (68.4 per cent), Tourism and Hospitality (60.9 per cent), Cultural and Creative Industries (58.3 per cent) and Science Research (42 per cent).

· 67 per cent thought affordable housing should be prioritised to improve life in Tasmania.

· 73.8 per cent said that, despite restrictions easing, they were not going out as much as before.

· 55.8 per cent said they would prefer a combination of working at home and at work in the future.

· 10 respondents had set up a business as a result of COVID-19.

· 4 per cent of Tasmanians had been unable to pay electricity, phone, water and gas bills compared to 7 per cent of Hobartians.

· 7 per cent of Tasmanians made early withdrawals from their superannuation compared with 4 per cent of Hobartians.

4.20. As part of the ‘Hobart Together’ campaign, the City of Hobart conducted a community survey during April and May 2020 to better understand the needs and issues facing the Hobart community. The survey captured the thoughts of 377 respondents. Insights include:

· 70 per cent of survey respondents were aged 51 years and over.

· 72 per cent of respondents reported an increase in social isolation; 48.5 per cent of respondents were working from home; while 36 per cent of respondents reported impacts on their mental health.

· Many respondents commented that the City of Hobart could support the community by keeping parks and reserves open (or having access to kunanyi / Mount Wellington). Providing timely information about COVID-19 was also a key theme.

4.21. TasCOSS has maintained a register of COVID-19-related issues raised by the community sector, for example, about support for older and younger people.

4.22. The Economic Development, Engagement and Strategy Unit is coordinating with the City’s social recovery team to create efficiencies and identify areas of mutual support.

The City of Hobart’s Economic Response to the Impacts of COVID-19

4.23. The City’s response to economic hardship in the community has been based on responding to the data cited in this report and to national and global understandings of best practice.

4.24. This section focuses on work undertaken through the Economic Development, Engagement and Strategy Unit, with acknowledgement of the large amount of work undertaken across the City of Hobart.

4.25. COVID-19 Business Grants

4.25.1. The eCommerce Support Grant was created within three weeks of the World Health Organisation declaring a pandemic.

The grant helped businesses cover fees associated with selling goods online (eCommerce). In particular, it provided a cash contribution for approximately six months of fees for an eCommerce site (for example, Shopify).

It was designed to:

· help retailers who did not have an online presence transition to eCommerce;

· provide financial relief for those that already had eCommerce.

The total funding pool was $30,000, with 100 grants available at a value of $300 (excluding GST) per business.

Officers encouraged all applicants to seek assistance from the State Government through Business Tasmania and Digital Ready programs.

In total, 152 applications were received.

Recipients are required to complete acquittals within six months.

4.25.2. The Professional Assistance Grant was created five weeks after the eCommerce Support Grant.

It provided businesses with up to $700 (excluding GST) to help them pay for professional services they needed to respond to the COVID-19 context, for example, accounting, marketing, IT or legal advice.

The Department of State Growth (Tasmanian Government) was contacted about their ‘Business Continuity Grant’ which offered funding for business of up to $750 for similar purposes. This assistance was instrumental in developing the City of Hobart grants program, as State Growth provided valuable advice based on program learnings.

In total, the program funded 133 businesses to the value of $88,357.06. The total value of the projects awarded were $142,926.90, meaning that every dollar invested created a return of $1.62 to the economy.

A total of 172 applications were received, with a mixture of retail, hospitality and service businesses receiving support. Most of the applications were for funding to use local consultants, which was highly encouraged.

Recipients are required to provide acquittals within three months.

4.25.3. From the acquittals returned to date for both grant streams, recipients have stated that without the funding provided by the City of Hobart, they would have had to cancel their project, put it on hold or deliver a smaller project as a result.

For example:

“No doubt the council is going through financial hardship and have experienced a huge downturn in income. To then offer grants to businesses in various positions of financial hardship is an amazing gesture of good will”.

4.25.4. More information about grant impacts will be provided to Elected Members once acquittals have been received and analysed.

4.25.5. A Business Grant Advisory Panel has been drawn from the business community and other institutions such as UTAS. This panel has provided preliminary feedback to the City on initial grant ideas for the 2020/21 financial year. This panel will continue to be used in an advisory capacity as the COVID-19 situation evolves.

4.26. COVID-19 Business Survey

4.26.1. The Economic Development, Engagement and Strategy Unit implemented a local business support initiative where Council officers contacted Hobart businesses at the peak of the pandemic to see how they were faring.

4.26.2. Contact was made via phone so that businesses could receive one-on-one, empathetic support.

4.26.3. Via data from the Australian Business Register, the unit identified a pool of 656 Hobart businesses belonging to the most-affected industries. Between 27 April and 19 June 2020, the team was able to complete surveys with 200 of those businesses.

4.26.4. The survey covered a range of sectors, with a focus on those most affected by the pandemic, including Accommodation and Food Services, Professional Scientific and Technical Services and Arts and Recreation Services.

4.26.5. In depth conversations with businesses yielded insights into their immediate business needs and the pressures they faced. The conversations provided an outlet for business owners to voice their concerns during a stressful time.

4.26.6. What became quickly apparent was that many local businesses were themselves responding rapidly and flexibly to changing circumstances and continue to do so in order to secure their survival.

4.26.7. The initiative showed that sustained, open dialogue with local businesses is important for informing the City’s work in providing support and information for businesses. This data helped the City understand the immediate support needs of local businesses.

4.26.8. Key results from the survey are outlined below. Further information is provided at Attachment B (Business Support Survey Engagement Summary Report).

· Nearly one in three businesses were temporarily unable to operate at the time calls were made.

· 40 per cent of businesses estimated their turnover was reduced by 75 to 100 per cent at the time we spoke to them.

· 67 per cent of businesses reported that they had accessed government assistance including grants, loans and JobKeeper since the start of the pandemic.

· A range of business grants ideas were proposed to businesses, with the most popular grant stream being ‘business adaptation’. This was described as funding to help with changing business model or direction in light of COVID-19 and/or assist with changes such as new equipment, marketing, packaging or deliveries. Of those surveyed, 46 per cent of businesses were interested in this initiative.

· 106 businesses from all sectors provided their email address for ongoing communication from the City of Hobart.

· 40 per cent of business owners surveyed were interested in a webinar for local businesses, 20 per cent were unsure and 40 per cent were not interested.

· 49 per cent of businesses surveyed thought a group to represent small and large businesses would be beneficial; 31 per cent did not support the idea and 20 per cent were unsure.

4.27. Hello Hobart

4.27.1. Hello Hobart is a marketing campaign for the Hobart city centre that has been operating since late 2016. The campaign was launched in response to the Icon Complex flooding, as a means for the City of Hobart to communicate that the CBD was still open for business.

4.27.2. Since then, Hello Hobart has developed into an ongoing campaign for promoting city centre businesses and connecting those businesses with consumers.

4.27.3. Hello Hobart continues to establish and maintain relationships with businesses, providing free promotional support.

4.27.4. Hello Hobart has its own website (upgraded in 2019) and a social media presence on Facebook and Instagram (@hellohobarttasmania).

· Managed daily, Hello Hobart’s social media accounts have a combined audience of 13,670, as at 13 July 2020.

4.27.5. Hello Hobart has two main components:

· Public-facing, customer focus: Editorial-style web and social media posts showcase Hobart as a diverse and interesting destination. Focusing on its food and beverage, and service and retail offerings, the posts serve as a reliable source of information and recommendations about new offerings and old favourites.

· Business support: Among other initiatives, a monthly email is distributed to over 600 retailers, with an average open rate of 44 per cent. According to software company Campaign Monitor, the benchmark open rate is 17.92 per cent, so we can infer that the emails are valuable to retailers.

4.27.6. The editorial-style interviews that inform web and social media posts about individual businesses are key to Hello Hobart’s success. Reactions to promotional social media posts are generally positive, with followers tagging friends and making comments such as ‘next lunch spot’ and ‘can’t wait to try this’. The interviews help Hello Hobart build one‑on-one rapport with the business on the City’s behalf.

4.27.7. Hello Hobart’s reputation as a trusted source of recommendations and marketing support has meant businesses often make contact seeking promotion.

4.27.8. Beers and Ideas, a retailer networking event, ran quarterly in 2019. The location for the event alternated to promote a different business each time. The events had mixed success in 2019, and new formats are being considered.

Hello Hobart COVID-19 Response: Online directories and promotions

4.27.9. Hello Hobart was one of the unit’s most nimble support tools, able to respond immediately when the pandemic first began affecting businesses.

4.27.10. In March 2020, when brick-and-mortar stores began to close, businesses suddenly became wholly reliant on their online stores.

· The Hello Hobart team, through their contacts, were aware that many businesses were limited in resources to promote their online offerings.

· The team responded immediately by editing the Hello Hobart web page and adapting the social media strategy to support businesses with this need.

4.27.11. An online directory was created as soon as brick‑and‑mortar stores began to close in March, promoting 59 local stores offering online shopping (refer Attachment C).

· Hello Hobart created an additional online directory of open restaurants and cafes offering a low-contact service, such as delivery and take-away, promoting 80 businesses.

4.27.12. Social media channels were refocused to promote the new online directories with great success. The example provided at Attachment D reached 22,200 people and received 1,132 reactions (loves, likes).

· Between February and March, traffic to the Hello Hobart website increased by 142 per cent.

4.27.13. Early feedback from businesses shows increased sales from the promotions.

4.27.14. To help more Hobart businesses respond to the pandemic context, Hello Hobart’s boundaries expanded to include the entire LGA. (Previously, it focused only on the city centre as per the Department of State Growth’s definition of ‘Hobart’.)

· The intention is to maintain this new boundary into the post-COVID-19 recovery stage, as all businesses will continue to be impacted by the pandemic and suppression measures.

4.27.15. Hello Hobart also established the ‘Support Local’ campaign.

· The goal of the campaign was to foster a sense of collective responsibility within the community, that everyone has a role in supporting each other through this tough time. It used graphic elements to convey this message.

· The intention is to continue using these elements for future campaigns, including utilising other Council tools such as civic banners.

4.28. Salamanca Market COVID-19 Response

4.28.1. Salamanca Market is the most visited tourist attraction in Tasmania, with interstate and overseas visitor numbers of between 908,000 and 985,000 annually.

4.28.2. SGS Economics and Planning calculated the market’s economic contribution to be between $64 and $69 million in 2015; $38 to $41 million spent within Salamanca Market and $26 to $28 million spent in neighbouring businesses, such as cafes, restaurants and local retail.

4.28.3. The decision to close the market was announced on 18 March 2020, with the last weekly market held on 14 March 2020. 383 stallholders were financially impacted and without a regular weekly income.

4.28.4. A stallholder survey to assess the impact of COVID-19 was completed on 20 May 2020, with 227 responses (74 per cent of licensed stallholders and 67 per cent of casual stallholders).

· Nearly half had effectively placed their business into hibernation.

· 89 per cent had their income negatively affected, with 69 per cent reporting significant impacts.

· 49 per cent were successful in applying for either JobSeeker or JobKeeper support, and 63 per cent had been successful in applying for the State Government $2,000 Small Business Emergency Grant.

4.28.5. To help stallholders during this difficult time, the Salamanca Market transitioned to online sales. The new site ‘Salamanca Market Store’ was launched on 26 March 2020. The site allows customers to browse over 400 Salamanca Market products and purchase directly from the stallholder. The store is a free service to stallholderS, and the City of Hobart does not take commission from any sales.

· Since commencement of the online store, the site has had 16,330 unique users and over 147,993 unique page views. Visits to the store are being tracked weekly through Google Analytics.

4.28.6. A series of online competitions have been run on the Salamanca Market Facebook page to encourage visitors to the online store.

· A Mother’s Day competition was run on 28 April 2020, encouraging people to explore the new online store by solving clues and locating bunches of flowers hidden on product pages.

· The competition resulted in a spike in visitation, with over 1,100 new visitors to the site and nearly 15,000 page visits.

4.28.7. 20 per cent of respondents from the May survey indicated that online visitation to their own business website or email enquiries had increased due to the Salamanca Market online store.

· Although this number is lower than was anticipated, many stallholders have commented on the initiative and thanked the Salamanca Market team for their support during the crisis.

4.28.8. As of writing, a smaller, interim market is planned to commence from 8 August 2020.

4.29. Responses from other divisions at the City of Hobart

4.29.1. Teams across the City of Hobart have worked to provide economic support to Hobart communities and businesses. The following provides a selection of five key initiatives.

4.29.2. Rates assistance

As per Council’s Financial Hardship Assistance Policy 70 rates remission requests have been approved (as of 8 July 2020). 47 are from commercial properties, 22 from residential properties (10 of which are used for commercial accommodation) and 1 from an industrial property. $87, 998.50 of rates remissions have been granted in total for the first instalment of 2020/21. 3 applications for remissions are in excess of $4,000 and are therefore subject to Council approval.

4.29.3. Rent relief

As per Council’s resolution on April 27 (cited on page 5 of this report) rent relief has been granted to 19 tenants of the City of Hobart. The total sum of this relief was $128,698.

4.29.4. Parking

Free parking in the Argyle Street carpark was provided to members of COVID response teams (as identified by the State Government) for over two months.

Reduced rate parking in the Argyle Street carpark was offered to nursing staff for over two months.

Payment for one hour of on-street parking enabled patrons to park for two hours. Payment for two hours enabled parking for four hours. This was also for a period in excess of two months.

4.29.5. Extension of outdoor dining

The Council supported businesses in their compliance with physical distancing requirements by waiving permit fees associated with extended their outdoor dining areas until 30 June.

4.29.6. Grants applications

The City Amenity Division has applied for in excess of $76 million in Federal COVID-19 economic stimulus infrastructure grants and are awaiting feedback.

Local Government Economic Responses to COVID-19

4.30. The initiatives in the preceding sections demonstrate the City’s immediate response to the economic impacts of the pandemic. They were designed to help businesses during the initial ‘survival’ phase.

4.31. Now that some time has passed and many restrictions have lifted in Tasmania, attention has turned to recovery, albeit with caution.

4.31.1. Much uncertainty remains about the longer-term economic impacts of suppression measures, possibilities of subsequent waves (as currently seen in Victoria and New South Wales), and inconsistencies in global experiences of and responses to the pandemic.

4.32. To guide the City’s recovery response in light of this uncertainty, research was undertaken into how other cities around the world are responding.

4.32.1. The aims were to get a sense of emerging best practice, identify particularly innovative actions and benchmark City of Hobart activities.

4.32.2. With the pandemic still developing, all levels of government in countries around the world are in early stages of recovery. Some, for example, in the United States and Brazil, are facing increasing case numbers and are still in survival mode.

4.32.3. Despite recent developments in Victoria and New South Wales, Australia remains ‘ahead of the game’ in its pandemic response, and Tasmania more so. This status means global best practice has yet to emerge and there are limited longer-term recovery initiatives to look to for guidance and inspiration.

4.32.4. Even so, there is much that can be learned, as discussed through the remainder of this section and in Attachment E.

4.33. Research into local government responses identified a range of particularly active councils in Australia.

4.33.1. 18 of these cities are profiled in Attachment E.

· New South Wales: City of Sydney, City of Newcastle, Central Coast Council, City of Wagga Wagga

· Queensland: Noosa Council

· South Australia: City of Adelaide, City of Charles Sturt

· Tasmania: City of Launceston, Devonport City Council, Meander Valley Council

· Victoria: City of Melbourne, City of Darebin, City of Yarra, Wyndham City, City of Ballarat

· Western Australia: City of Perth, Town of Victoria Park, City of Vincent

4.33.2. Research into additional examples, such as the ACT Government (Canberra), City of Brisbane and Warrnambool City Council, has likewise informed this report.

4.33.3. A weekly Zoom meeting was also held with Economic Development Units at Clarence, Kingborough, Glenorchy and Brighton Councils. Through this forum, officers were able to share:

· Insights from the business community;

· Useful data sources;

· Details and lessons learned from early interventions.

4.33.4. Common response and recovery initiatives from Councils around Australia included:

· Flexible parking and approach to infringements;

· Mentoring and advisory support;

· Grants programs;

· Rates, rental and fees relief;

· Marketing campaigns to encourage local shopping.

4.33.5. Findings made it apparent that Hobart was performing well in terms of its COVID-19 response in comparison to other councils with a similar rate base and budget. The City’s immediate recovery initiatives are in line with what is being done elsewhere in Australia.

4.34. Research yielded a large number of peak body and private sector recommendations.

4.34.1. Given the early stage of recovery, tried and tested examples are still developing. However, many organisations have issued recommendations to help guide local governments in responding.

4.34.2. Recommendations have been published, among others, by:

· KPMG;

· McKinsey and Company;

· World Economic Forum;

· World Bank;

· SGS Economics (often via the Local Government Information Unit);

· Harvard Business Review;

· Australian Local Government Association;

· Regional Development Tasmania.

4.34.3. Organisations like the International Monetary Fund, Oxford University, and C40 Cities have published policy trackers and analyses that outline how countries and cities around the world are responding to the public health and economic crises they face.

4.34.4. Individual experts, such as Saul Eslake, have also published analyses and recommendations.

4.34.5. There are strong recommendation themes running across these sources, including:

· Link recovery planning to existing long-term visions and strategies;

· Analyse local economic impacts and create a local definition of the ‘new normal’;

· Review organisational priorities and re-design approaches and resource allocations to reflect the new context;

· Undertake organisation-wide risk assessments to ascertain potential impacts of pandemic-related scenarios, such as subsequent waves of infections and recurring waves of suppression measures;

· Clearly identify essential services;

· Consider and reprioritise longer term technology requirements, including planning for ongoing digital customer services and potential accelerated digital transformation. Use technology to augment people;

· Model how relief packages can be funded in the long‑term;

· Adjust regulations to help businesses reopen and grow in the context of physical distancing and travel restrictions;

· Use the crisis as an opportunity to target stimulus toward tackling other 21^st century opportunities and challenges;

· Prepare for changes to the rating system to recoup some of the recent outlay and rebalance the books in the medium-term;

· Dedicate executive time to exploring how to meet the long-term vision and how the organisation can meet new and evolving community demands;

· Line up strategic projects for when funding opportunities arise;

· Support local suppliers and focus on the local consumption economy.

4.34.6. These examples are just a few of many recommendations. The Economic Development, Engagement and Strategy teams will continue to monitor trends and recommendations for application to recovery planning as it develops.

4.35. This report also considers the Premier’s Economic and Social Recovery Advisory Council’s (PESRAC) first round of recommendations, published in their 20 July 2020 interim report.

4.35.1. The interim report provides a comprehensive overview of the impacts of the pandemic and suppression measures to date, with a strong focus on current and potential social impacts, which stem from economic impacts.

4.35.2. The report states, ‘We see wellbeing for Tasmanians as a key measure of our recovery. A wellbeing focus balances the importance of the things that make a good life in Tasmania’.

4.35.3. Two strategic priorities guide their recommendations:

· Rebuilding local demand: building confidence and capacity, increasing local demand and keeping the pipeline flowing, supporting enterprise recovery.

· Addressing structural issues: tackling immediate structural impacts, addressing social issues, encouraging government to delivery differently.

4.35.4. PESRAC’s recommendations provide a significant number and range of opportunities for the City’s recovery planning to support State Government recovery work.

4.35.5. Several recommendations, in particular regarding statutory planning and regional collaboration, directly involve local government.

4.35.6. The Economic Development, Engagement and Strategy teams will consider PESRAC’s recommendations in forming the City’s initial recovery plan, with a view to monitoring how the State Government chooses to apply them and identifying opportunities for the City to contribute.

Projected Economic Impacts of the Ongoing COVID-19 Pandemic

4.36. In order to guide future decision-making, research was undertaken seeking economic commentators’ projections about the future.

4.36.1. Upon reading and listening to this commentary, it became clear the extraordinary situation has led to diverse predictions, something reinforced by leading global consultancy Accenture.

4.36.2. Accenture describes the current economic climate that businesses are facing as ‘overwhelming, [with] competing challenges and unchartered waters’. Businesses are prioritising the ‘now’ but as they start to look to the ‘next’ it is becoming apparent that the ‘never normal’ could become the new world, characterised by ‘unpredictable and possibly muted economic recovery with new competitive threats and opportunities…..a new era defined by fast changing shifts in cultural norms, societal values and behaviours…’

4.36.3. Given the wide variety of economic recovery predictions and models – including, to name but a few, w-shaped, u-shaped, v-shaped, l-shaped and swoosh-shaped recoveries – it seems the only certainty is uncertainty.

4.36.4. Underpinning this uncertainty are the limitations of modelling the spread of COVID-19.

· Lester Caudill, Professor of Mathematics at the University of Richmond (USA) discusses these limitations in an article for ‘The Conversation’. He describes how the more trustworthy infectious disease models are based on the way prior outbreaks of the same infection have been transmitted.

· The current limitation is that, as SARS-CoV-2 is a novel Coronavirus there is no historic data.

4.36.5. The Conversation polled 22 leading economists from 16 universities across Australia, including Tasmania’s Saul Eslake, who provided their four-year predictions on a range of national economic indicators, including economic growth, unemployment, spending, share prices, house prices, business investment and government finances. Some of the highlights are as follows. These highlights also demonstrate the large variation in predictions:

· The panel of experts predict Australian economic growth for 2020 to be -4.6 per cent. This is the average figure from the panel with the range of prediction being -8 per cent to +0.5 per cent.

· The average prediction of unemployment is 8.8 per cent for 2020 with the range being 6.8 per cent to 11 per cent.

· Household spending is predicted to drop by an average of 4.3 per cent in 2020 with the most optimistic panel member predicting a 1 per cent increase and the most pessimistic a 20 per cent drop.

4.37. Given the range of predictions on the impacts of COVID-19 in Australia and globally, committing to a prescriptive plan for the next phase of the pandemic would be unwise.

4.38. The Bank of America Merrill Lynch observes that ‘Historic crises like wars, revolutions, pandemic etc. often feel like they put history on fast‑forward. Processes that normally take decades or longer to play out unfold in a couple of weeks.’

4.39. As advocated by McKinsey consultancy, the Economic Development, Engagement and Strategy teams, with the support of elected members, are seeking to speed up decision making as took place in the early stages of the pandemic. Taking a more ‘agile’ approach will allow the City be more responsive to the business community and emerging best practice.

4.39.1. Being more nimble does not remove the need for planning but more flexibility within a broader framework is advocated.

Next steps for City of Hobart Economic Recovery Work

4.40. In order to allow for flexibility, the Economic Development, Engagement and Strategy teams advocate the use of:

a) a framework, oriented around guiding principles, to structure future decision making; and

b) a more flexible action plan, to adjust real-world projects to the rapidly changing context.

4.40.1. The use of a framework with guiding principles will allow flexibility as the impacts of COVID-19 and the responses of other agencies become more apparent. The guiding principles will also ensure that the City of Hobart’s response remains aligned with the approach advocated by Elected Members.

4.40.2. This report and the earlier workshop on the City’s response to the economic impact of COVID-19 seek endorsement for a set of guiding principles. The inspiration for the draft principles below have been taken from the City’s overarching guiding document, Hobart: A community vision for our island capital, the Economic Development Guiding Principles endorsed by the Council on 21 June 2018, and research findings about COVID-19 economic recovery priorities.

Draft Economic Recovery Guiding Principles

· Economic recovery is focused on need and adding value. Recognising the limited resources of the City and other partners providing assistance to Tasmanian businesses, recovery activity will be directed to those with most need. These businesses may be the worst-affected or those overlooked by the assistance efforts of others. The City will focus its efforts where it has a clear role and can add value, without duplicating the work of others.

· Economic recovery supports resilience. The City will work with government, businesses and the community on capacity‑building activities that enable Hobart to better respond to future shocks, which may overlap with recovery efforts as time goes on.

· Economic recovery builds economic confidence and participation. The City will support local businesses using its purchasing power, its marketing and networking capabilities and in its role as events facilitator and curator of the city. The City will contribute to creating an environment where people can spend, invest and participate with confidence.

· Economic recovery is evidence-based. The City will draw on the wide range of qualitative and quantitative data sources available to guide and inform recovery efforts.

· Economic recovery is flexible and adaptable. The City will structure recovery planning and implementation so it can respond to a situation changing quickly and frequently, to make sure limited resources can be applied where they can have the greatest impact.

4.41. Should the guiding principles of economic recovery be adopted, they will also form the basis of the City’s COVID-19 Economic Recovery Framework and Action Plan, which is in development.

4.42. The guiding principles will inform actions that are expected to fall within the following categories, with additional categories to be defined by the results of engagement and research:

4.42.1. Internal engagement: working with Elected Members and units across the City of Hobart to ensure a coordinated and efficient economic recovery effort.

4.42.2. Business consultative group: forming a group of business and economic leaders to test recovery planning and actions, in consideration of the previously cited Council resolution.

4.42.3. Wider business, community and stakeholder engagement: Listening to those affected and those providing assistance about what is needed and lessons learned.

4.42.4. Grants: providing funding to businesses and/or individuals to help them recover, adapt and flourish.

4.42.5. Marketing: promoting Hobart businesses and supporting community members to consume locally.

4.43. Future work would involve monitoring the timing and nature of Australian and Tasmanian Government initiatives to ensure the City’s actions complement them. See, for example, 4.35.6, about monitoring the State Government response to the PESRAC interim report.

5. Proposal and Implementation

5.1. The Council receives and notes the update.

5.2. The Council endorses the following guiding principles for economic recovery which will inform future Council activities in this area:

· Economic recovery is focused on need and adding value.

· Economic recovery supports resilience.

· Economic recovery builds economic confidence and participation.

· Economic recovery is evidence-based.

· Economic recovery is flexible and adaptable.

5.3. The Council endorse the creation of a flexible COVID-19 economic recovery framework and action plan, including associated community engagement.

5.4. The Council endorse the creation of a COVID-19 economic recovery business consultative group, as a temporary means of seeking feedback on recovery efforts.

(i) The General Manager is delegated responsibility for finalising the membership and terms of the group.

5.5. The Lord Mayor and Chair of the Economic Development and Communications Committee seek to coordinate a meeting with relevant Australian and/or Tasmanian Government representatives to inform economic recovery planning.

6. Strategic Planning and Policy Considerations

6.1. The proposal strongly aligns with the City’s current strategic direction as set out in Hobart: A community vision for our island capital and the City of Hobart Strategic Plan 2019-2029.

6.1.1. Both documents discuss the importance of Hobart’s closely connected communities and inventive spirit to the local economy.

6.1.2. The processes to create the vision and strategic plan highlighted that community members (including businesses) and the City (including Elected Members and employees) anticipated the need to be resilient to fluctuations in economic conditions.

6.1.3. This broad community understanding of economic cycles, memories of past downturns and long-standing values about resilience make Hobart well-placed to deal with the potential economic crisis brought about by COVID-19 and suppression measures.

6.2. The following references provide examples of the most prominent ways that adopting the proposal will reinforce the vision and strategic plan:

6.3. Hobart: A community vision for our island capital

6.3.1. Pillar 2.6: We keep our city safe, help each other and flourish in adversity

· 2.6.1: Hobart’s isolation and scale have required resilience. We know that future challenges will require us to work hard and work together. But we are our best selves in times of adversity and vulnerability. We are caring, helpful and supportive of people at all times but especially when things get tough.

· 2.6.2: We are confident and capable when dealing with natural and human-caused threats and emergencies.

6.3.2. Pillar 4.4: We build on our connections

· 4.4.1 Our connections are one of our biggest assets, and we encourage each other to build strong networks between people, businesses, education and government. We connect industry sectors with job-seekers. We enable clever and resourceful people to find each other and collaborate.

6.3.3. Pillar 4.6: Our economies are diversified

· 4.6.1 We learn from our history of relying on single institutions and industries. While we celebrate our successes, we also grow from our failures. Diversity in our industries supports resilience in our economy overall.

6.4. Capital City Strategic Plan 2019-29

6.4.1. Outcome 4.1: Hobart’s economy reflects its unique environment, culture and identity.

· Strategy 4.1.6: Support businesses and enterprises working to find innovative solutions to significant challenges.

6.4.2. Outcome 4.3: Diverse connections help Hobart’s economy, businesses and workers thrive.

· Strategy 4.3.2: Actively support and engage with local area businesses, business groups and other business networks.

· Strategy 4.3.3: Support local businesses and retailers through the promotion of retail and other services in the city centre and retail precincts.

6.4.3. Outcome 4.5: Hobart’s economy is strong, diverse and resilient.

· Strategy 4.5.1: Respond to the strategic context of the Hobart economy at regional, state, national and international levels.

· Strategy 4.5.5: Prepare for the impacts of long-term trends, such as climate change, transport modes, and tourism and housing demand cycles, on the Hobart economy.

6.5. In addition, external sources (for example, the Harvard Business Review and SGS Economics) have highlighted the importance of using already-established visions and strategies to guide recovery work.

6.6. Economic recovery planning will be a major policy initiative for the City. It is a chance to help communities recover from this once-in-a-century event in a way that makes Hobart better than it was before – and closer to the vision set out by the community.

6.7. The draft guiding principles proposed in this report were framed to reinforce the strategic guidance already established in the vision and strategic plan.

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. Initiatives for stimulating recovery will initially come from the 2020-21 budget.

7.1.2. $200,000 has been allocated from the Economic Development Budget Function 2020-21 for grants to assist local businesses.

7.1.3. The focus will be on where the City can add value: targeted initiatives that fill gaps and meet critical community and business needs.

7.1.4. Additional focus will be on identifying low-cost initiatives, including those that draw on existing City assets and knowledge / expertise.

7.2. Impact on Future Years’ Financial Result

7.2.1. It is projected that the economic impacts of COVID-19 and associated suppression measures will last for years.

7.2.2. Impacts of recovery planning on future years’ financial results will be determined as the framework and action plan develop.

7.3. Asset Related Implications

7.3.1. None arise from this report.

8. Legal, Risk and Legislative Considerations

8.1. This report presents an opportunity to mitigate risk, in particular reputational and financial.

8.1.1. Helping Council communicate about its response so far so people can understand what we’ve done.

8.1.2. Helping to build a more diversified and resilient economy post-pandemic, which aligns with the vision/strategic plan

8.1.3. We are so far in a good position – comparable to others in Australia in terms of the maturity of our recovery program but we’ll need to stay on top of monitoring the situation.

9. Environmental Considerations

9.1. There is an opportunity to structure some elements of the recovery program to have a net-positive impact on the environment.

9.1.1. A wide range of sources, including reporting in Forbes and The Economist, cite the importance of ensuring recovery initiatives support improved environmental performance.

9.1.2. The framework and action plan will seek win-wins for the Hobart economy and the environment. Not embracing low‑emission recovery opportunities could mean an increase in environmental impacts.

10. Social and Customer Considerations

10.1. This report has detailed community involvement in response and recovery efforts to date, and it advocates the future inclusion of the community during the many stages of the Council’s approach to economic recovery.

10.1.1. In addition to the wider community, it will be important to include the following subsets of the community in the process of economic recovery planning. Engagement with them has and will ensure that they are given the opportunity to help shape the City’s thinking about recovery:

· Business community via phone surveys;

· Business Consultative Group;

· Business Grants Advisory Panel;

· City of Hobart employees.

10.2. The Economic Development, Engagement and Strategy Unit continues to work with the Council’s social recovery team to ensure that an awareness is maintained of those in need of assistance to re-engage in economic participation.

11. Marketing and Media

11.1. The recent survey conducted with 200 business owners in the community was a positive marketing exercise for the Council. The vast majority of calls were well received and many businesses expressed their gratitude for being contacted at that time.

11.2. There will be opportunities for marketing of the recovery planning process as a means of encouraging community participation. This may be through the Council’s Resilient Hobart (business) webpages, Council’s Facebook page or through more traditional media such as The Mercury newspaper.

11.3. Good news stories particularly around grant dispersal and testimonials will provide the Council with an opportunity to create positive brand impact.

12. Community and Stakeholder Engagement

12.1. Internal

12.1.1. Elected Member workshop;

12.1.2. Coordination with Council’s social recovery team;

12.1.3. Plans for engagement across the Council during the recovery planning process.

12.2. External

12.2.1. As discussed in Sections 4 and 10, engagement has already taken place through:

· Business engagement survey;

· The Business Grants Advisory Panel;

· The Tasmania Project;

· Business Tasmania;

· Economic Development Officers in Southern Tasmania;

· Economic Development Officers in Tasmania as supported by Regional Development Australia (Tasmania).

12.2.2. Ongoing engagement is planned with those above, as well as the Council coordinated Business Consultative Group.

12.2.3. Additionally, business engagement is being considered more broadly within the Economic Development and Strategy team, whether through Hello Hobart or other means.

12.2.4. The Premier’s Economic and Social Recovery Advisory Council also provides an opportunity for engagement with a group of industry leaders who have been tasked with providing advice to the Tasmanian Government on strategies and initiatives to support the recovery from the COVID-19 pandemic.

13. Delegation

13.1. This matter is one for the Council.

Luke Doyle

Manager Economic Development Engagement & Strategy

Tim Short

Director Community Life

Date: 23 July 2020

File Reference: F20/69916

Attachment a: COVID-19 Economic Recovery Roadmap ⇩

Attachment b: Business Support Survey Engagement Summary Report ⇩

Attachment c: Hello Hobart's Online Directory ⇩

Attachment d: Hello Hobart's Social Media ⇩

Attachment e: Local Government Responses to COVID-19 ⇩

People	We care about people – our community, our customers and colleagues.
Teamwork	We collaborate both within the organisation and with external stakeholders drawing on skills and expertise for the benefit of our community.
Focus and Direction	We have clear goals and plans to achieve sustainable social, environmental and economic outcomes for the Hobart community.
Creativity and Innovation	We embrace new approaches and continuously improve to achieve better outcomes for our community.
Accountability	We are transparent, work to high ethical and professional standards and are accountable for delivering outcomes for our community.