Tourism Development Fund: Grant Approval to Ports of Jersey to support Jersey International Air Display

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A decision made 14 August 2015:

Decision Reference: MD-E-2015-0067
Decision Summary Title :	Tourism Development Fund – Approval of (up to) £189,500 grant to the Ports of Jersey to support the Jersey International Air Display		Date of Decision Summary:	07 August 2015
Decision Summary Author:	Assistant Director		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Tourism Development Fund – Approval of (up to) £189,500 grant to the Ports of Jersey to support the Jersey International Air Display		Date of Written Report:	07 August 2015
Written Report Author:	Assistant Director		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Tourism Development Fund – Approval of a grant of (up to) £189,500 to the Ports of Jersey to support the Jersey International Air Display.
Decision(s): The Minister approved the award of a grant, subject to contract and conditions, from the Tourism Development Fund of (up to) £189,500 to the Ports of Jersey to support the Jersey International Air Display.
Reason(s) for Decision: The Minister was approached by the Ports of Jersey with a request for possible support for the Jersey International Air Display after the Tourism Development Fund Advisory Board had concluded its Spring round of applications. Given the importance of the Jersey International Air Display to the Island’s calendar of events, the fact that Ports of Jersey will make every effort to minimise the level of grant required, and the outlined plan for self-sustainability, the Minister requested officers from the Department consider the merits of the application. Officers recommended that the award of the grant requested is offered.
Resource Implications: The grant would be made from the Tourism Development Fund, which has sufficient resources to cover the grant. There are no further manpower or resource implications.
Action required: The Minister instructs the Strategic Development Officer to issue the contract in accordance with Financial Direction 5.5 ‘Management of Grants’.
Signature: Senator L J Farnham		Position: Minister for Economic Development
Date Signed:		Date of Decision (If different from Date Signed):

Tourism Development Fund: Grant Approval to Ports of Jersey to support Jersey International Air Display

Tourism Development Fund

Grant Application

IMPORTANT:

Please carefully read the Guidelines for Grant Applicants before completing this Grant Applicaiton Form.
Applications must be accompanied by
- For applications over £5,000 a full Business Plan including supporting financial forecasts, and
- the most recent copy of the Organisation’s accounts.

Failure to provide this information could mean a delay or rejection of the Application by the TDF Advisory Panel.

In preparation of the Application it is recommended that free and confidential advice is obtained from Jersey Business who can be contacted on tel: 610300 or email: info@jerseybusiness.je
Please be very specific exactly what you require the Grant Funding for and what it will be spent on.
The deadline for Applications is TBC Autumn 2015. Please note that any applications after this deadline will not be considered by the Panel.
The TDF Advisory Panel will start to consider Applications in April and applicants will be notified thereafter as to the outcome
Applications will only be considered for projects that have sufficient time for the grant funding to make a difference. Requests for retrospective funding or those for projects with delivery dates close to when the Advisory Panel meet will not be considered
As part of the Application process you may be contacted by a member of the TDF Advisory Panel to discuss your project in more detail
The TDF will not generally underwrite projects
The TDF will typically not support ‘business as usual’ infrastructure projects that can not demonstrate an added value to the wider tourism offering.

1. Applicant Details
Organisation Name: Ports of Jersey
Contact Name: Paul Holley
Position: Group Commercial Manager
Address: Jersey Airport, St Peter, Jersey, JE1 1BY
Tel: 466114	Mobile:
Email:

2. Organisation Details
Annual Turnover:
Date commenced trading:
Status:	Sole Trader	Partnership	Limited Company	Charity	Other (please specify)

3. Project Overview
What is the Project Name: Support for Jersey International Air Display
When will the Project or Activity be happening:
Proposed Start date: 9 September 2015	Proposed Completion date: 11 September 2015
Please summaries below what you are trying to achieve:
The Ports of Jersey has developed a working relationship with the key figures that organise the Jersey International Air Display. In 2014 the process for the management and governance of the Economic Development public grant was passed to the Ports of Jersey and it is intended to continue with this process for 2015. The objective is to work in partnership with the Jersey International Air Display to develop the event, commercialise current activities and through the development of new initiatives and revenue streams ensure the event continues and enjoys a successful and sustainable future with an aspiration to become self-funding in future years through the growth of existing revenues streams and the creation of new ones.

4. Summary of Project funding and cost
Estimated total cost of Project:	£280,000
Own resources:
Other public funds (specify):	£90,000 EDD Grant
Loans (specify source e.g. bank):
Other funds (specify):	See section 6.
Shortfall:	£189,500
Total Grant applied for:	£189,500

5. The Grant

Please detail exactly what the TDF Grant Funding will be spent on?

The Ports of Jersey is seeking support from the Tourism Development Fund in the form of a grant up to £189,500. The possible funding will only be called upon to bridge the time gap in delivering the items in section 6 as well as any that fall short of forecast or fail to materialise. Further, we will be using the 2015 event to position and grow these activities specifically for the 2016 display with an aim of achieving self sustainability of a larger event.

The delivery of the main items in section 6 require a strong representation of air display acts at the event. Without an attractive event the ability to deliver strong sponsorship and income is drastically reduced.

With approx. five weeks until the event, decisions will have to be made in the next two weeks over reserving / confirming aircraft for the event in order to achieve a 3-4 hour show. An added complication is reserving aircrew and support teams’ accommodation and the logistics of transportation; whereby the Air Display has hotel rooms, hire cars and minibuses for additional aircraft on hold but must release them shortly. Once released the chances of securing accommodation for aircraft teams adds cost as the available hotels decrease and rates increase.

We would expect to provide a snapshot of the event costs and income by the end of 2015, with a final call on the TDF grant in Q1 2016.

6. Alternative options

Please specify if other sources of funding have been investigated.

Current list of activities in development for 2015, with a view to build sustainable income and sponsorship for 2016 onwards :

New Sponsorship Deals

Securing 2015 corporate sponsorship deals. There are three in an advanced level of development with three locally companies, two are at early stages of development. Three of these sponsorship deals are Ports of Jersey led and have a total potential value of at £50k and two are Air Display led and have a potential value of £10k each.

Corporate Trade Show

Development of an exclusive Corporate Trade Show to be held on the 8 September 2015 in partnership with a local offshore finance company and several corporate aircraft manufacturers.

Annual Membership Club

The Ports of Jersey is working on a prestige annual membership programme, providing access to an exclusive collection of experiences and hospitality during the event as well as offering additional value throughout a 12 month period. One of the main purposes of this club is to minimise the risk of a single large sponsor. A few initial soundings with potential members is promising.

Airport Static Display Income

Whilst display teams like the Red Arrows will always draw crowds, a reduced static display of aircraft at the airport will likely result in lower volumes through the gate. The Ports of Jersey in conjunction with Air Display are investigating the development of different attractions to increase volumes.

Lower Park

Full management for the operational delivery of the Lower Park offering, including additional corporate hospitality, improved concessionaire offering, community and charity organisations. The Ports of Jersey has engaged the services of 3D Performance for this sub-project. 2014 was a building year, where it was a net cost to the event, with earlier planning leading to the lower park becoming a net contributor to the event.

Increased Programme Sales

Through early delivery of the Air Display 2015 programmes, we are working on increasing the revenue from sales through changes in distribution and engagement with local hotels, shops and attractions for new points of sale.

Text to Donate

As the event is free to the public, the Ports of Jersey is developing the concept of ‘Text to Donate’ in conjunction with the local telecommunication companies. This service is not currently available from the islands telecommunication operators and is envisaged to have a wider benefit once established by allowing other events, fund raising initiatives, organisations to utilise the service once established. With approx. 30,000 attendees at the event and with a predicted conversion rate of 5% in the first year, an average donation of £5 this could return £7,500 in donations. The amount delivered is dependent on set-up costs and any negotiated rates with operators for administration.

Ports of Jersey Sponsorship

The Ports are evaluating the value of sponsoring certain events that take place during the three days.

The total estimated value should all of the above be delivered in August 2015, ready for the event is £189.5k. With the Economic Development grant, this totals £279.5k. Cost saving measures and additional contributions are also being developed.

Please outline what will happen without TDF funding?

Under good governance practices the Ports of Jersey and the Air Display are committed to ensuring responsible expenditure matched to forecast income.

The Ports of Jersey working with the Air Display will continue to hold an event in 2015, yet on a much reduced scale, with participating aircraft from the British Military and aircraft from the Scandinavian Historic Flight.

Should the Ports of Jersey be unable to secure TDF funding the likelihood of delivering a high profile, high impact event comparable with past years is at risk. A likely outcome is that Air Display on Thursday 10 September will be a short show, estimated to be approx. 2 hours which is half of the expected timeframe and that of which has been delivered in the past.

Should the event begin to slip into decline the reputation of the island as ‘one of the best airshows in Europe’ and its ability to attract visitors and aircraft enthusiasts would be called into question for future years and feasibly without intervention and support is the beginning of the end.

With new income lines under development, plans to stimulate growth in existing lines and limited time in which to deliver before the event, the additional aircraft required to operate a full 4 hour show would need to be secured as soon as possible (next two weeks).

7. Project Outcomes
Increasing visitor numbers: Please outline how many visitors your Project would attract over and above those that are coming already
	Now	After TDF funding
Visitors	Total local and visitors to the event are believed to be in excess of 30,000. However should a reduced show be publicised it is expected for this number to drop as visitor and local interest in a reduced event declines. Evidence of past years indicate hotels are full during this event, identifying this event as a key driver.	TDF funding which would allow for a delivery of a full airshow, would secure a strong turnout of visitors and locals and strengthen attendance for future years.
Locals	See above	See above
Sustainable returns: Please outline how the Project will bring sustainable returns and how once established. How it will be viable without further TDF funding.
The majority of the sources of income in section 6 / alternative options are leading into longer term income streams. Preparation for future years and early engagement with new to 2015 sponsors it is the aim of the Air Display to become self-sustaining over time through its relationship with the Ports of Jersey. By staggering and developing new relationships as well as approaching the delivery of the annual event in a commercial entrepreneurial fashion the expectation is not to become reliant on TDF funding in future years.
Alignment with Tourism strategy: Please specify how your project will contribute towards one or more of the following: a) Developing Jersey into a year round tourism destination b) Increasing the value generated from visitors c) Increasing the number of locals employed in the Tourism sector d) Maximising the investment made in tourism
The event is a well-established free to watch public display of military and civil aircraft. The event is well known in the industry for delivering a first class public display in the natural amphitheatre of St Aubins bay. The event is well recognised internationally and markets Jersey as a destination. The event receives good levels of exposure through the UKs main air show season of May to September. For visitors who come to view the display there are strong possibilities of long stays and repeat visits. With new strategy in development from Visit Jersey, this is the opportune time to reshape the event and ensure greater alignment with those new ambitions.

8. Previous TDF Support
Please specify if your organisation has received previous TDF or States of Jersey funding detailing the project, when it was awarded, and the amount of the grant paid out. Please also include a copy of any post project evaluation reports relating to previous TDF grants awarded with this application.
Project	Date awarded	Amount awarded (£)
Air Display 2014	2014	£110,000 (States of Jersey)
Air Display 2013	2013	£90,000 (States of Jersey)
Air Display 2012	2012	£90,000 (States of Jersey)

9. Employment
	Now	After TDF funding
Residentially qualified:
Seasonal:
J-Category:
Full-time:
Part-time:
Note: The Air Display does not employ anyone for the delivery of the event, but critically relies upon volunteers from on island and off island.

10. Consents obtained
	Yes	No	N/A
Planning outline:
Planning detailed:
Business Licence: Control of Housing & Work Law
Housing:
Immigration:

11. Conflicts of interest

Are there any potential conflicts of interest arising with this application?

None identified.

12. Declaration
We certify the accuracy of the above information to the best of our belief. We understand, subject to any changes submitted to the Advisory Panel in writing, that the information given above may be considered part of any Application made. We understand that should we be invited to make a full Application that any costs incurred will be at our own risk and the Advisory Panel will not be liable for any such costs should the application be unsuccessful. We understand that commencement of Project work before approval of the Minister may render the Application ineligible.
Signature:	Date:
Status

The deadline for applications is TBC (Autumn 2015).

Please return the completed Application Form and Business Plan to: Chris Knight – email: c.knight@gov.je Tel: 01534 448151

TDF application form Page 1 of 8 7 jan 2015