Agenda of Economic Development & Communications Committee Meeting

Item No. 6.1

Agenda (Open Portion)

Economic Development & Communications Committee Meeting

Page 21

29/4/2021

REPORT TITLE: COVID-19 Economic Response and Recovery Framework and Action Plan 2020-22 and General Economic Development Update

REPORT PROVIDED BY: Marketing and Business Engagement Officer

Senior Advisor Research and Policy

Manager Economic Development Engagement and Strategy

Acting 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 progress against the COVID-19 Economic Response and Recovery Framework and Action Plan 2020-22.

1.2. The report also provides an update of other work undertaken by the Economic Development, Engagement and Strategy Unit, in particular to do with international relations, the City’s Antarctic Sector programs and corporate sponsorships.

1.3. The benefit to the community is an increased understanding of the breadth of ways in which the City has supported economic development and recovery in recent months.

2. Report Summary

2.1. The City’s COVID-19 Economic Response and Recovery Action Plan 2020-22 has 29 projects.

2.1.1. A summary of the plan is provided at Attachment A to this report.

2.1.2. Seven projects have been completed, and 22 projects are currently underway.

2.1.3. Projects undertaken by the Economic Development, Engagement and Strategy Unit are:

· Project 1.2: Business consultative group

· Project 1.5: Business and community research and engagement

· Project 2.1: Business concierge

· Project 2.2: Business grants (in conjunction with Activation Programs and Tourism Unit)

· Project 2.3: Hello Hobart

· Project 3.6: Central Hobart precinct planning economic analysis

· Project 4.6: Economic development strategy

· Project 4.7: Investor prospectus

2.2. The City has a number of international relationships, including Sister City and Friendship City relationships. As a result of reduced travel arising from COVID-19, officers are communicating with their counterparts in the respective cities to work remotely to continue and build relationships.

2.2.1. A number of programs will be facilitated by officers locally, including the upcoming Children’s Day program in the Royal Tasmanian Botanical Gardens and a mini-Olympic games style challenge for schools both here in Hobart and in Sister City Yaizu, Japan.

2.3. As an Antarctic Gateway City, officers have been managing relationships with stakeholders in the Antarctic sector.

2.3.1. A number of projects are upcoming in 2021, including the arrival of the new icebreaker RSV Nuyina late in the year, an Antarctic display in the new Tasmanian Travel and Information Centre and the final report from the multi-year Antarctic Cities Project which the City provided both cash and in-kind support towards.

2.4. Due to COVID-19, the Council paused the corporate sponsorship program, largely as events were not operating and the existing budget was used as cost savings for the City.

2.4.1. The sole sponsorship undertaken in 2021 to-date is the in-kind support for the upcoming Dark Mofo festival. Officers are currently finalising the contract for this arrangement alongside providing event support to Dark Mofo for assets where the City is the owner.

2.4.2. Subject to Council approval of the 2021-22 budget estimates, the corporate sponsorship program will be reinstated in the 2021-22 financial year.

3. Recommendation

That the Committee receive and record the update, noting that the COVID-19 Economic Response and Recovery Action Plan 2020-22 is due to be updated in mid-2021.

4. Background

4.1. In relation to the City of Hobart COVID-19 Economic Response and Recovery Framework and Action Plan 2020-22, on 17 December 2020 the Council decided that:

1. The Council endorse the City of Hobart COVID-19 Economic Response and Recovery Framework and Action Plan 2020-22, marked as Attachment A to item 4.1 of the Special Economic Development and Communications Committee agenda of 17 December 2020.

2. The Council note the endorsement of the COVID-19 Economic Response and Recovery Framework and Action Plan 2020-22 by the Hobart Economic Recovery Business Consultative Group.

3. The action plan be updated in mid-2021 following internal and external engagement including with the Business Consultative Group in February 2021.

4.2. In relation to international relations, on 31 March 2021 the Council decided inter alia that:

3. Operational activities relating to existing international relationships to be recommenced online. Officers to undertake local community-based engagement throughout 2021, with minimal to no additional budgetary requirements other than officer time.

4.3. In relation to Antarctic Sector programs, on 21 May 2015 the Council decided 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 each year from the Economic Development Function, subject to the successful funding bid by the Antarctic Cities project to the Antarctic Research Council.

4.4. In relation to corporate sponsorships, on 8 July 2019, the Council decided inter alia that:

1. The Council approve the City of Hobart Policy: Inbound Requests for Sponsorships

and on 9 November 2020, the Council decided inter alia that the Council note that the [sponsorship] program will be suspended in 2020-21.

4.5. This report provides an update on this and related work being undertaken by the Economic Development, Engagement, and Strategy Unit.

COVID-19 ECONOMIC RESPONSE AND RECOVERY FRAMEWORK AND ACTION PLAN 2020-22

4.6. The first version of the recovery plan captures recovery work already underway at the time it was created, as well as new projects scheduled to come online in the months immediately following Council endorsement of the plan.

4.6.1. A summary of the plan is provided at Attachment A.

4.7. The plan includes projects under four initiatives:

· Learning what people need

· Building business resilience

· Building community economic resilience

· Responsive local government.

4.8. The remainder of this report provides an update on the projects belonging to each of those initiatives. The update is in two parts:

4.8.1. A broad overview providing brief updates on all projects.

4.8.2. A more specific update on projects being undertaken by the Economic Development, Engagement and Strategy Unit.

Overview of progress on all economic recovery projects

Initiative 1: Learning what people need

	Project	Status	Notes
1.1	Social inclusion dashboards	Complete	Dashboards are available on the City’s website.
1.2	Business consultative group	Underway	Two meetings have been undertaken, with the next scheduled for May 2021. Meetings ongoing.
1.3	Safe public spaces	Underway	Trial for security guards at Brooke/Despard Street area concludes in mid-March. Continuation of this program is currently being considered. St John’s Ambulance Party Safe presence on Saturday nights has helped improve community safety outcomes.
1.4	Creative sector engagement	Underway	Major Cultural Organisations supported by removing requirement to re-apply for funding for 2020-21 financial year (allocation same as previous year). Creative Hobart grants are currently open for applications.
1.5	Business and community research and engagement	Underway	Community engagement and research are currently being undertaken through Project 1.2: Business consultative group, Project 3.6: Central Hobart precinct planning economic analysis (HillPDA report) and Project 4.6: Economic development strategy (intern research project).

Initiative 2: Building business resilience

	Project	Status	Notes
2.1	Business concierge	Underway	Research undertaken; preliminary internal report completed and with GM for consideration.
2.2	Business grants	Underway	Further grant round ($100,000 total funding) opened in March 2021. With work currently underway into the format of the 2021-2022 grants.
2.3	Hello Hobart	Underway	As presented in the report on this agenda, Passport to Hobart campaign has been completed. Officers are currently undertaking research to inform future campaigns.
2.4	Block parties	Complete	Held at Battery Point (530 visitors), Midtown (341), Brisbane St (622), South Hobart (759), Red Square (828). Of 24 businesses who responded to a survey, 62.5% saw an increase in visitation and 50% had increased turnover compared to an average weekend.
2.5	Salamanca Market online and Tasmania’s Own Market	Underway	Tasmania’s Own Market continues successfully. All stallholders can list six products on the online store (currently 446 product listings from 244 stallholders), providing sales opportunities for stallholders not trading at the interim market. A review was undertaken and recommended to retain the store for a further 12 months.
2.6	TTIC and Elizabeth Mall Info Hub	Underway	The TTIC is in the process of moving to the Council Centre customer service area.
2.7	Outdoor dining regulations	Complete	Applications for expanded outdoor dining areas can be made via CoH website.
2.8	Outdoor dining platforms	Installation complete, trial underway	Footpath extensions, built-in furniture, planters, bike racks and trial uphill bike lane have been installed in Elizabeth Street (Midtown). With grant funding from the Tasmanian Government’s Ready for Business initiative to support local hospitality businesses. Infrastructure in place for 12-month trial; outcomes may inform final design for future Midtown streetscape upgrade. Guideline document for parklets is also underway, drawing on the CoH Midtown Ready for Business trial, and COVID-19 response parklet evaluations from other cities.
2.9	Local preference procurement policy	Complete	Adopted into all tenders, EOIs and RFQs.

Initiative 3: Building community economic resilience

	Project	Status	Notes
3.1	Rates relief support package	Complete	Over 200 businesses were assisted. Future rates relief is planned to be applicable generally and not only for COVID-19 impacts.
3.2	Rental, fees and charges relief package	Underway	Fees for business registrations waived for six months. Renewals have been reissued.
3.3	Resilient Hobart grants	Complete	Awarded in 2020, with most activity June-December. 96 applications were received (total request $359,400). 61 were awarded (valued at $181,037.50, or 99.5% of the budgeted amount of $182,000). 55.7% of recipients have acquitted. Community, creative and events grants open for applications this month. It is expected the majority of grants will support recovery.
3.4	International student support partnership	Underway	The City is helping to administer the grants. Underway until May 2021.
3.5	Festive season charitable quick response grants	Complete	Open for one month and attracted five applications. Four grants were awarded, for projects highly aligned to the aims of the grant. The grant will be reviewed for 2021-22 to confirm if this structure will provide the best support to the community during the festive season.
3.6	Central Hobart precinct planning economic analysis	Underway	The economic assumptions in the existing HillPDA report commissioned as part of the Central Hobart Precincts Plan are being reviewed to consider COVID-19 impacts. HillPDA are engaged to undertake this work. A draft report has been completed, with a final report expected by the end of April 2021.
3.7	Mobility for city vibrancy	Underway	The 40kph speed limit in the central city has been implemented. Lenah Valley 40km speed limit approved and funding secured. Ongoing support for State Growth pedestrian green time initiative. Trial cycle lanes (on Campbell/Argyle between Brisbane/Davey) at final design stage; implementation subject to funding. Draft Primary Walking Network Plan completed.

Initiative 4: Responsive local government

	Project	Status	Notes
4.1	24/7 Council	Underway	This project is under development, and an update on progress will be provided in due course.
4.2	Responsive planning and mobility services	Underway	Ongoing initiative through City Planning Division.
4.3	Capital works program	Underway	Works are underway.
4.4	Funding for City projects	Underway	A range of grant applications were submitted, including for Vulnerable Road User grants and mitigation against severe weather events. Several grants were subsequently awarded. Construction of these projects will be progressed in accordance with the terms of the grant agreements.
4.5	Resilient Hobart	Underway	As the City’s community emergency response program, Resilient Hobart is ongoing while the pandemic continues. Resilient Hobart information on the City’s website has been updated.
4.6	Economic development strategy	Underway	Scoping work has commenced. Two economics interns and one planning student from the University of Tasmania are providing research support.
4.7	Investor prospectus	Underway	A first draft has been compiled.
4.8	Community vision stewardship	Underway	All projects going through the Council reporting process must demonstrate strategic alignment. The Master of Planning intern from the University of Tasmania will work on the social and environmental possibilities for economic development work (see Project 4.6).

UPDATE ON ECONOMIC RECOVERY PROJECTS UNDERTAKEN BY THE ECONOMIC DEVELOPMENT, ENGAGEMENT AND STRATEGY UNIT

Project 1.2: Economic Recovery Business Consultative Group

4.9. The Council established the group to provide expert advice and industry feedback on the City’s economic recovery efforts from the impact of COVID-19.

4.10. The group includes business owners/operators from across different business sectors in Hobart along with industry representatives.

4.10.1. Officers have recently invited additional members to the group recognising that members cannot make every meeting and it requires a healthy number to facilitate good discussion.

4.11. The group has met twice already. The third meeting will be held on 5 May 2021.

4.11.1. The agenda for this meeting will include an update on the proposed new business grants and an update on the City’s Economic Recovery Action Plan.

4.12. It is anticipated that these meetings will be held quarterly.

Project 1.5: Business and community research and engagement

4.13. Community engagement and research are currently being undertaken through Project 1.2: Business consultative group, Project 3.6: Central Hobart precinct planning economic analysis (HillPDA report) and Project 4.6: Economic development strategy (intern research project).

4.14. The business consultative group meets every two months, and meetings involved both structured and open-ended conversations about business needs.

4.15. The HillPDA report has involved a limited number of interviews with stakeholders representing a range of sectors. Findings are being factored into the report.

4.16. The intern team is undertaking a small number of internal and external interviews to add to desktop research findings. It is envisaged developing the economic development strategy will include additional engagement.

Project 2.1: Business concierge

4.17. Officers have collated research about the potential opportunities and risks of the City providing a business concierge service. The proposal is currently awaiting the commencement of the new CEO for consideration. Given the significant resourcing required for this to operate effectively, it is likely this project will be placed on hold for the foreseeable future.

Project 2.2: Business grants 2021-2022

4.18. To support small businesses throughout COVID-19, the business grants program has run two rounds of the Business Adaptation and Assistance Grant (BAAG), the Professional Assistance Grant and the eCommerce Support Grant that has provided support in response to COVID-19.

4.19. Officers from the Economic Development and Grants teams met recently to identify how the City can best support the business community through the business grant stream in the 2021-22 financial year.

4.20. The annual funding allocation of $56,000 for business grants has been proposed for the 2021-22 financial year. The new grant that will be proposed is likely to be run as part of the Biannual Grant Round in August 2021 and February 2022. The maximum value of each grant is to still to be determined.

4.21. Importantly, feedback will be sought from the Economic Recovery Business Consultative Group at the next meeting. This will enable officers to test the appetite for the type of grant and determine if there are any noticeable issues business owners may have in applying.

4.22. A full report will be submitted to the Committee on 27 May 2021 seeking approval for the purpose and intended outcomes of the grant program.

Project 2.3: Hello Hobart

4.23. The City’s marketing program Hello Hobart continues to promote local businesses through regular promotion on social media and its website.

4.24. As presented in the report on this agenda, the Passport to Hobart summer marketing campaign has just finished up.

4.25. Officers are currently engaging a consultant to undertake research that will be measured against benchmarks set in previous research in both 2016 and 2017. This research will assist officers in determining what barriers to entry exist for shopping in the city along with what are the enticing qualities for people to shop in the city.

4.26. Hello Hobart has resumed sending out monthly email newsletters to businesses owners/operators. This email is an important mechanism for the City to disseminate information out to businesses regarding items such as the new business grants opening.

· For example, the latest edition assisted the State Government to inform business owners about the mandatory use of the Check in TAS app from 1 May 2021.

4.26.1. The team are currently looking at the validity and safety of reinstating the business networking events in the city.

Project 3.6: Central Hobart precinct planning economic analysis (COVID-19 impacts)

4.27. This project is a joint effort across City Planning and Community Life Divisions.

4.28. HillPDA was engaged to create a report on the economic, demographic and employment impacts of the COVID-19 pandemic.

4.29. The work is an update of the original report written by HillPDA for the Central Hobart Precinct Plan but expanded to consider Hobart LGA overall. Findings can inform work across the organisation.

4.30. The final report is expected to be completed in May 2021.

Project 4.6: Economic development strategy

4.31. Work to create a new economic development strategy is underway.

4.32. A team of three interns from UTAS is working on background research, two final-year undergraduates from the Tasmanian School of Business and Economics and one Master’s student from the Master of Planning program.

4.33. The intern team has been undertaking applicable work to identify a range of local and global issues of significance to Hobart.

4.34. The team is investigating economics-specific topics, as well as issues that relate to and influence economic outcomes. Examples include ageing population, migration, housing affordability, environmental impacts, educational attainment and skills gaps, and issues affecting local businesses.

4.35. Their final output will be an issues paper covering major topics to consider in creating an economic development strategy, due to be completed by early June 2021.

Project 4.7: Investor prospectus

4.36. A first draft has been compiled.

4.37. Due to resource constraints, further edits of the document will be undertaken once further progress has been made on other key economic recovery and development initiatives.

INTERNATIONAL RELATIONSHIPS

4.38. The City has a number of existing international relationships including Sister City and Friendship City relationships. Officers are currently communicating with their counterparts in the respective cities on ways to engage remotely in 2021 and beyond.

4.39. Of particular note, the Hobart Yaizu Sister City relationship will be celebrating its 45^th year in 2022. Officers are currently planning for potential local celebrations to mark the occasion.

4.40. Officers also facilitate a six-weekly Hobart Yaizu Sister City Committee and attend bi-monthly meetings run by the local Italian Abruzzese Association.

4.41. To celebrate Japanese Children’s Day, the City in partnership with the Royal Tasmanian Botanical Gardens will display Japanese inspired decorations and written works created by students from 14 schools (over 1,000 students). This free public event will be open from
1 to 9 May 2021.

4.42. To mark the Tokyo Olympics, students in both Yaizu and Hobart will participate in a mini-Olympic games style challenge. This challenge is being facilitated by officers and will take place at the same time as the Olympics in late July.

4.43. Officers are providing our Friendship City of Fuzhou, China with cultural content to be included in its 2021 Fuzhou International Friendship Cities Cultural Festival being held in June 2021. The festival will also include a speech from Lord Mayor Anna Reynolds and City officers participating in an online multicultural dialogue event.

4.44. Department of Foreign Affairs and Trade commenced the Foreign Arrangements Scheme on 10 December 2020. Its purpose is to ensure that arrangements between state or territory governments (and their entities) and foreign entities do not adversely affect Australia's foreign relations and are consistent with Australia's foreign policy. Officers are complying with the new policy by registering details of our relationships through the online notification portal.

ANTARCTIC SECTOR PROGRAMS

4.45. The City maintains relationships with a number of stakeholders in the Antarctic space including the Australian Antarctic Division (AAD), Department of State Growth’s Antarctic Tasmania, Tasmanian Polar Network, Antarctic Cities Youth Coalition and others.

4.46. The Antarctic Cities Project, which the City provided cash and in-kind support, is currently awaiting the final report from the multi-year project. The project studied the relationships of the five gateway cities, which Hobart is one, to determine where the cities can act collectively as global custodians of Antarctica.

4.46.1. The report is being prepared by project lead Juan Francisco Salazar Sutil of Western Sydney University and expected in late April 2021.

4.46.2. Once the final report is received a meeting will be scheduled with key stakeholders, including officers from Economic Development Unit, to examine the achievement of the stated aims and consider steps for the implementation of the recommendations.

4.46.3. A further meeting will also be scheduled to discuss the next steps in progressing an Antarctic Gateway Cities Charter of Principles.

4.46.4. Officers will continue to support the Antarctic Cities Youth Coalition’s Hobart representative with their proposed Antarctic Gateway City sign post concept.

4.47. A dedicated webpage on the City’s website is currently being designed in consultation with other Antarctic stakeholders. This page will communicate information on Hobart as a premier Antarctic Gateway City, in addition to the City’s status as an original signatory and member-country of the Antarctic Treaty and promote Antarctica, the Southern Ocean and sector organisations.

4.48. In addition, an Antarctic display is currently been planned for the City’s new location of the Tasmanian Travel and Information Centre. The City is working in partnership with AAD in developing concept designs for a permanent display that may include a number of interactive and educational elements celebrating Hobart as a Gateway City to Antarctica.

4.49. It is anticipated that the new AAD icebreaker RSV Nuyina will be arriving in the last quarter of 2021. Officers have commenced conversations with AAD staff to determine the City’s engagement in events for the ship’s arrival, as well as ways to celebrate the 2021 opening of the Antarctic Season.

SPONSORSHIPS

4.50. Since 2019, the City of Hobart has undertaken a formal corporate sponsorship program. The program offered support to eligible events, festival and activities by way of financial and in-kind sponsorship in exchange for mutually beneficial outcomes.

4.51. As a result of COVID-19, the sponsorship program was paused largely as events were no longer operating and the budget was used as part of the City’s cost savings.

4.52. The sole sponsorship that the City has undertaken throughout 2021 to-date is the commitment to in-kind support for the upcoming Dark Mofo Winter Feast as a result of a formal request made by event organiser Dark Lab. On 31 March 2021, the Council resolved inter alia that:

1. The Council support the 2021 Dark Mofo request through in-kind funding for equipment for the Winter Feast, to the value of $196,326.56 to be allocated as a one-off grant, noting that Dark Mofo will need to meet all costs of installation and transportation of this equipment.

4.53. Economic Development officers will once again be assisting Dark Lab to ensure that the components of the sponsorship are met. In addition, officers will again liaise with Dark Lab event organisers to ensure that where the City’s assets for the festival are used, a single project officer will be managing the relationship. This ensures that any additional requests are captured and that there is a holistic management of the festival on behalf of the City.

4.54. Subject to final Council approval, the corporate sponsorship budget will be reinstated for the 2021-22 financial year given that events are beginning to commence.

4.54.1. It is intended that the sponsorship round will formally open in late 2021 for events occurring in 2022.

5. Proposal and Implementation

5.1. This report has provided an update on progress towards the economic recovery plan, as well as more detailed updates on those recovery projects sitting within the Economic Development, Engagement and Strategy Unit.

5.2. It has also provided updates on economic development, international relationships, Antarctic sector programs and sponsorships.

5.3. It is proposed that the Committee receive and record the update, noting that the COVID-19 Economic Response and Recovery Action Plan 2020-22 is due to be updated in mid-2021.

6. Strategic Planning and Policy Considerations

6.1. The City’s COVID-19 economic response and recovery work aims to work across the whole of the community vision and strategic plan, in the sense of encouraging initiatives that support a range of areas of city life, for example the creative sector and learning from data.

6.2. It aligns primarily with the following outcome in the Capital City Strategic Plan 2019-29:

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

6.3. The City’s COVID-19 economic response and recovery work specifically advances the following strategies in the Capital City Strategic Plan 2019-29:

2.4.6 Deliver and support initiatives, activities and programs that build community resilience, wellbeing and safety.

4.5.1 Understand and respond to the strategic context of the Hobart economy at regional, state, national and international levels.

6.4. Ongoing engagement in international relations is aligned with Hobart: A community vision for our island capital and outcomes outlined in the Capital City Strategic Plan 2019-29, particularly:

4.3.7 Support the city’s existing international relationships and respond to new opportunities, in line with the community vision

4.3.8 Develop greater community involvement in international relations programs

6.5. Recognising, celebrating, supporting and promoting Hobart’s relationship with Antarctica and the Southern Ocean is in line with the Hobart: A community vision for our island capital:

4.1.4 We embrace industries and professions that thrive in Hobart’s unique environment, from Antarctic science and tourism to creative arts and technology.

6.6. The City’s sponsorship program specifically aligns with the following outcomes in the Capital City Strategic Plan 2019-29, namely:

3.1.5 Support and deliver events, festivals and markets.

4.3.1 Develop and maintain relationships with key institutions and stakeholders in the Hobart economy.

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. Individual projects have financial implications in their respective areas coming out of existing budgets for the 2020-21 financial year.

7.2. Impact on Future Years’ Financial Result

7.2.1. Projects for the 2021-22 year will have been budgeted and are included in the budget estimates for the Community Life Division.

7.3. Asset Related Implications

7.3.1. Not applicable.

8. Legal, Risk and Legislative Considerations

8.1. The proposal supports the City’s ability to manage risk, through providing updated information on progress against key projects.

8.2. Some projects included in economic recovery planning have legal and legislative considerations (e.g. outdoor dining regulations). However, this report provides a general update; thus such considerations do not arise from this report.

9. Environmental Considerations

9.1. All projects undertaken by the Economic Development, Strategy and Engagement recognise the strong commitment Towards Zero Waste that the City has.

9.1.1. For example, a key consideration for the use of a digital application as the operating mechanism in the recent summer marketing campaign for Project 2.3 Hello Hobart was to limit waste for the promotion.

10. Social and Customer Considerations

10.1. Each area of work outlined in this report (economic recovery, economic development, international relationships, Antarctic sector programs and international relationships) has a social and customer impact, by serving the community through economic recovery and development initiatives.

11. Marketing and Media

11.1. All projects captured under the Economic Development, Strategy and Engagement team have significant marketing and media opportunities.

11.1.1. Individual projects have their own opportunities to communicate the outcomes. For example project 2.3 Hello Hobart, has its own social media accounts and websites.

11.1.2. Areas such as corporate sponsorship and the City’s International Relationships all have a dedicated page on the City’s own website.

11.1.3. Officers work closely with the Communications Unit to ensure that projects are disseminated out to the community where appropriate.

12. Community and Stakeholder Engagement

12.1. Project 1.2 Business Consultative Group enables officers to engage with the business community. These meetings help inform future actions.

12.2. Project 3.6: Central Hobart precinct planning economic analysis (HillPDA report) and Project 4.6: Economic development strategy (intern research project) likewise include limited engagement components (i.e. brief interviews with stakeholders).

12.3. Regular communication with the business community is maintained through Hello Hobart’s monthly email newsletter.

12.4. Officers also regularly consult with other City of Hobart officers who are managing other projects identified in the Recovery Framework and Action Plan.

13. Delegation

13.1. This matter is one for 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.

Samantha Skillern

Marketing and Business Engagement Officer

Marisa McArthur

Senior Advisor Research and Policy

Luke Doyle

Manager Economic Development Engagement and Strategy

Iris Goetzki

Acting Director Community Life

Date: 22 April 2021

File Reference: F21/32014

Attachment a: Summary of the COVID-19 economic recovery framework and action plan 2020-22 ⇩

Item No. 6.2

Agenda (Open Portion)

Economic Development & Communications Committee Meeting

Page 34

29/4/2021

REPORT TITLE: Summer Marketing Campaign Update

REPORT PROVIDED BY: Marketing and Business Engagement Officer

Manager Economic Development Engagement and Strategy

Acting Director Community Life

1. Report Purpose and Community Benefit

1.1. The purpose of this report is to provide an update to Elected Members on the summer marketing campaign to support Hobart food and beverage venues titled Passport to Hobart.

1.2. The campaign results indicate that this program had a community benefit, particularly for food and beverage operators in the Hobart area, many of whom were negatively impacted by COVID-19 restrictions.

1.2.1. The campaign also extended the community benefit to those customers who dined at participating venues using the vouchers and who benefitted financially from a reduction in their dining bill.

2. Report Summary

2.1. Under the City’s marketing program Hello Hobart, a summer marketing campaign titled Passport to Hobart was undertaken from 7 January 2021 until 28 February 2021.

2.2. The campaign was designed to assist food and beverage venues throughout the Hobart area. Consumers were rewarded for their loyalty by way of a $20 Reward Voucher once they had collected five stamps. In order to receive a stamp, a customer needed to spend a minimum amount of $20 at a participating venue.

2.2.1. There were 1750 x $20 Reward Vouchers available.

2.3. To encourage participation in the program, the first 3500 participants also received a $10 Reward Voucher with the key requirement that a minimum amount of $20 had to be spent in order to redeem the voucher.

2.4. The community was encouraged to download a ‘digital passport’ through the phone application Stamp Me to start their journey. The use of the application was in keeping with COVID-19 restrictions as customers could scan a QR code to receive the stamps contact-less.

2.5. Hello Hobart created a dedicated webpage to showcase the 59 participating venues including a visual map. These venues were a mix of restaurants, bars and cafes from across the Hobart municipal area.

2.6. Promotion of the campaign occurred through a number of traditional and digital channels. Of note, the social media tiles provided to participating venues worked particularly well as it allowed those venues to highlight their participation to their existing followers.

2.7. At the completion of the campaign, the community had spent a minimum amount of $89,740 in venues.

· Nearly all of the $10 Welcome Vouchers were allocated with 38 per cent of these then spent in the venues.

· 2300 stamps were collected.

· A total of 333 x $20 Reward Vouchers were allocated with 93 per cent redeemed.

2.8. The total cost of the campaign to the City was $38,797 which included a full reimbursement to businesses for any vouchers redeemed in their venues.

2.8.1. Meaning that for every $1 invested, a minimum amount of $2.31 was invested back into participating businesses.

2.9. Upon completion of the campaign, venues were provided with a survey to provide feedback. In general, the feedback has been positive with 81 per cent stating they would like to do it again if run in the future.

2.10. There were a number of learnings from running this campaign which included extension of the campaign period to enable a wider word-of-mouth promotion and more time to collect rewards.

2.11. If the campaign were to be run in the future, it could be extended to include retail and services.

2.12. As part of developing the Economic Development Strategy, the Economic Development team is in the process of building a broader marketing strategy for the city which will provide context for future campaigns.

3. Recommendation

That the report is received and the results and outcomes of the summer marketing campaign, Passport to Hobart, is noted.

4. Background

4.1. The campaign, titled Passport to Hobart, was a nod to the fact that the community could not travel overseas due to COVID-19, but could explore what our own city has to offer. As a result, patrons were encouraged to download a ‘digital passport’ and collect five (5) stamps to then be rewarded with a $20 Reward Voucher.

4.1.1. In order to receive a stamp, a patron had to spend a minimum of $20 in a participating venue.

4.1.2. The digital application used was a phone application called Stamp Me, a Melbourne-based organisation. This application was available to download for free through both iOS and Android systems.

4.1.3. Once customers had made an eligible purchase, they were to scan a QR code available on the back of the venues EFTPOS machines. This process meant that there was no need to physically touch campaign materials in keeping with minimising the risk of COVID-19.

4.1.4. Officers completed due diligence on this software to ensure that it was the most appropriate and safe for use in this program.

4.2. By way of background, at its meeting on 29 October 2020, the Economic Development and Communications Committee deferred the initial report titled Summer Marketing Campaign 2020-21, determining that:

The item be deferred to a special meeting prior to the Council meeting on the 9 November 2020 to allow consultation to take place with relevant industry bodies and options to be explored for those who do not have access to a device to download the required application.

4.3. A further report was then provided to the Economic Development and Communications Committee on 9 November 2020, where officers presented solutions and alternatives to the smart phone application. In doing so, officers also presented the potential issues with the use of a paper version.

4.3.1. A key consideration was that a paper version was a considerable risk to participants, potentially an older cohort who are generally considered more at risk of COVID-19.

4.3.2. This report also detailed the consultation with industry bodies and their subsequent support to the program.

4.4. The Council, at its meeting of 9 November 2020 determined, inter alia that:

The Council endorse the proposed summer marketing campaign, estimated at $90,000 subject to the General Manager being satisfied that due diligence on the application is made.

4.5. All food and beverage businesses in the City of Hobart area were invited to participate.

4.5.1. This invitation to businesses went out through a number of channels, including the City’s email newsletter to businesses, Facebook promotion, a paid Mercury advertisement and through the City’s wide business networks including the Tasmanian Hospitality Association.

4.5.2. In total, 59 businesses participated in the program. These businesses were a great mix of cafes, restaurants and bars.

4.6. The campaign launched at 10 am on Thursday 7 January 2021 and was originally set to conclude midnight Sunday 7 February 2021. Throughout the campaign, the Economic Development team sought feedback from venue operators who suggested that the campaign be extended if possible as customers were collecting stamps but were often just shy of the five required.

4.6.1. As a result, the General Manager approved the campaign to be extended until midnight 28 February 2021, or the end of summer.

4.6.2. There were no additional costs to extend the campaign.

4.7. To encourage initial use of the program, the first 3500 downloads of the digital passport were entitled to a $10 Welcome Voucher.

4.7.1. To use this voucher, a patron would simply need to spend $20 or more.

4.8. Terms and conditions were developed to ensure that misuse of the program was minimised and that participants and venues were aware of their expectations.

4.9. The Hello Hobart website was updated with a dedicated landing page for the Passport to Hobart program which included a directory of all participating businesses and a visual map.

4.10. The approved budget allocation for this program was $90,000 which included an allocation of $20,000 for promotional material and the application use. Whilst the remaining $70,000 was to be allocated to the vouchers comprising of 3500 x $10 Welcome Voucher and 1750 x $20 Reward Vouchers.

4.11. The objectives of the campaign were:

· incentivise the community to dine (either via takeaway or eat-in) at participating venues

· encourage repeat visitation to venues from the community

· assist food and beverage operators across the City of Hobart.

4.12. The Economic Development team marketed the campaign through a number of different channels to ensure broad reach.

4.12.1. Of particular note, the team distributed social media toolkits to retailers which were successful. The team were impressed with the number of venues who choose to utilise the branded social media overlays, allowing the venues to pair the Passport to Hobart branding alongside their own venue photography.

4.12.2. Social media on the Hello Hobart Facebook page reached over 119,000 people in the campaign period. Whilst we had another 103,315 impressions from the digital Mercury advertising undertaken.

Results

4.13. In total, nearly all of the 3500 x $10 Welcome Vouchers were allocated (3493). Most of these vouchers were allocated in the first few weeks of the program which was as expected.

4.14. Of those $10 Welcome Vouchers allocated, 38 per cent of the vouchers were then used in participating venues.

4.15. A total of 2300 stamps were collected throughout the campaign period, equating to a minimum amount of $56,000 worth of investment in venues when customers were using the program to collect stamps.

4.16. In total, 333 x $20 Reward Vouchers were allocated with 93 per cent of these were then redeemed in participating venues.

4.17. During the campaign, the community spent at least $89,740 in participating venues when collecting stamps and redeeming vouchers.

4.18. The City spent a total of $38,797 on the campaign which included a full reimbursement to the venues, marketing and costs for the use of the application.

4.19. That means that for every $1 spent, a minimum of $2.31 was invested back into participating businesses.

4.20. The Economic Development team recognises that there is an immeasurable value in connecting with the businesses in this campaign, many of whom had not been connected with.

4.21. A survey was sent out to participating venues to ascertain feedback from them, see Attachment A to this report. Of note, the below responses are a summary:

· Over 75 per cent of respondents rated the program as good or better.

· Most businesses were not sure of the traffic that the campaign specifically created for their business with 50 per cent stating it had up to a 10 per cent increase in traffic or higher.

· No venues found the Stamp Me application difficult to use.

· Overwhelmingly, the communication levels from the Economic Development team were ‘appropriate’.

· If we were to run a similar campaign again, 81 per cent would like to participate again.

Learnings from the campaign

4.22. There was a small number of customer complaints with various issues including that staff were unaware of the program in participating venues and errors in not reducing the bill despite using a valid voucher.

4.22.1. The Hello Hobart and Stamp Me teams dealt with these complaints by responding to the customers, often reinstating vouchers as required and contacting the venue operators so future issues could be awarded.

4.23. If the City was to run a similar campaign, it is recommended that the campaign period be significantly longer to allow consumers more time to collect their rewards, but also to enable greater word-of-mouth promotion.

4.24. Those venues that had the most vouchers redeemed were actively promoting the program. If the campaign was to be run in the future, it is recommended that an incentive be offered to those venues that get the most redeems to encourage this positive behaviour.

4.25. The program was very popular within the first few weeks of the campaign, but as expected with all loyalty programs, plateaued after the initial drive. It did, however, maintain a loyal following.

4.25.1. If a similar campaign was to be run again that went for a longer timeframe, it is recommended that the marketing be spread out to various times throughout the campaign.

4.26. This campaign was targeted to food and beverage venues due to the recognised effect these businesses suffered throughout COVID-19. If this campaign was to operate in the future, officers would look to extend the program to also include retail and services.

4.26.1. This would be to ensure equal promotion of different businesses within the municipal area.

4.26.2. Officers have since discovered a similar project undertaken by the City of Darwin that rewarded patrons of all customer facing stores, regardless of if they traded retail, hospitality or services. It is possible that officers could adopt a similar style to any future campaigns.

5. Proposal and Implementation

5.1. In conclusion, the Passport to Hobart program was a successful mechanism for the City to engage with businesses and consumers at a time when tourism was limited and business confidence was variable.

5.2. The Hello Hobart team is now looking forward to future campaigns as part of a broader marketing strategy for the city. In keeping with Hello Hobart’s objective of “promoting Hobart as a unique and interesting retail and lifestyle destination”, future campaigns would be targeted to meet this.

5.3. The Economic Development team is currently planning for the next financial year and would report back to the Council to update on larger campaigns. Hello Hobart will continue to have a presence on its website and social media channels promoting local businesses.

5.4. Officers will continue to seek the advice of the Economic Recovery Consultative Group prior to launching larger campaigns.

6. Strategic Planning and Policy Considerations

6.1. The summer marketing campaign responds to Pillar 4 of the Capital City Strategic Plan 2019-29, specifically:

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

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

4.4 Hobart is a place where entrepreneurs and businesses can grow and flourish.

4.5 Hobart’s economic is strong, diverse and resilient.

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. The total amount of $38,797 will come from the existing 2020-21 budget allocated to Hello Hobart for the purpose of this campaign.

7.2. Impact on Future Years’ Financial Result

7.2.1. There is a provision in the 2021-22 budget for Hello Hobart, subject to the Council’s approval, for $68,000. This is to be allocated for future campaigns and general Hello Hobart marketing.

7.3. Asset Related Implications

7.3.1. Not applicable.

8. Legal, Risk and Legislative Considerations

8.1. Terms and conditions were established and published online alongside a link on the Stamp Me application to ensure that participants and venues knew of their expectations in participating.

8.2. Contracts were signed between participating venues and the City of Hobart prior to commencing the program. This contract was developed in conjunction with the City’s legal officers.

9. Environmental Considerations

9.1. In keeping with the Council’s commitment to zero waste to landfill by 2030, this campaign used minimal materials. This was the first time that a City marketing campaign used a digital application to this extent, and given the commitment to minimising waste, it was a good option to be considered for future campaigns.

10. Social and Customer Considerations

10.1. Prior to commencing this campaign, various industry groups were consulted including the Tasmanian Hospitality Association, the Tasmanian Chamber of Commerce and Industry and other hospitality venues who operate in the municipal area.

10.2. Future large campaigns will be brought to Economic Recovery Consultative Group to seek feedback prior to launching. This group is a cross-section of business representatives from a number of industries operating in Hobart.

11. Marketing and Media

11.1. The campaign was marketed via a number of different channels including traditional media, social media promotion (Hello Hobart Facebook and Instagram along with a social media toolkit for retailers), digital signage in City-owned assets and through the various other connections that the City’s marketing team have, including Eat it Tassie and Destination Southern Tasmania.

12. Community and Stakeholder Engagement

12.1. After the completion of the campaign, the venue operators were encouraged to provide feedback via a survey. The results can be found in Attachment A. This will help to guide future campaigns.

12.2. Officers consulted internally throughout this campaign include Principal Advisor Media and Corporate Communications, Manager Rates, Procurement and Finance Operations, Manager Legal and Governance, Manager City Innovation, Principal Advisor Risk and Audit, Principal Advisor Spatial, Integration and Data Management, Legal Officer and Senior Advisor City Marketing and Sponsorship.