Adelaide Economic Development Agency
Greg Ratsch, General Manager
AEDA 2024/25 Business
Plan and Budget
This workshop seeks Council Members’
feedback on the AEDA 2024/25 draft
Business Plan and Budget.
• The draft AEDA 2024/25 BP&B has been prepared in consideration of the CoA
Strategic Plan and Long-Term Financial Plan
• The BP&B is underpinned by the objects and purposes of the Agency and
feedback received through consultation
• This draft Budget has been approved by the AEDA Board.
AEDA 2024/25 BP&B
Key Messages
AEDA 2024/25 BP&B | 19 March 2024
Do Council Members
have any feedback on
the draft 2024/25
AEDA Business Plan
and Budget?
KEY QUESTION
AEDA 2024/25 BP&B
Key Questions
AEDA 2024/25 BP&B | 19 March 2024
Adelaide Economic
Development Agency
Draft 2024/25 Business
Plan and Budget
Adelaide Economic Development Agency | Slide 6
Overview
The annual Business Plan and Budget (BP&B) of the Agency fits
in with the Council’s strategies and documents as follows:
City of Adelaide Economic Development Strategy
City of Adelaide Strategic Plan 2024-2028
AEDA Strategic Plan
AEDA Business Plan & Budget
AEDA Charter
slide 5
CoA Strategic Plan Alignment
The CoA Strategic Plan is a key overarching document to the AEDA BP&B, particularly whilst the Economic Development Strategy
is being developed with its potential impact on the AEDA Strategic Plan.
CoA’s Strategic Plan contains an action to “continue the support for the Adelaide Economic Development Agency (AEDA)
Subsidiary and the delivery of the AEDA Charter and Business Plans” with an associated indicator of success being “support the
delivery of the key actions of the AEDA Strategic Plan to support investors, emerging sectors, entrepreneurs and business owners
to be successful, innovative and responsive to a changing business environment.”
Specific actions of particular relevance to AEDA in CoA’s Strategic Plan include:
Provide services and
information that
contribute towards a
high
productivity economy
Create partnerships to grow and
develop current and emerging
sectors such as medical,
technology, creative and
professional services sectors
Work with partners,
universities and
businesses to attract
investment and improve
employment
opportunities
Partner with the State Government,
universities, associations, community
and advocacy groups to activate and
upgrade precincts to stimulate
investment, visitation and maximise
opportunities
Reinforce the position of Adelaide
as the State’s central business
district and amplify Adelaide’s
reputation as a place to learn, work
and start a business
Refresh the way in
which information is
provided to visitors to
the city
Support increased
residential growth and
housing affordability through
partnerships and advocacy
Elevate the City’s reputation for
exceptional and unique arts and
cultural experiences by encouraging
and providing arts, culture and
events partnerships, grants and
sponsorship opportunities
Objects & Purposes of AEDA
The AEDA Charter outlines the objects and purposes of the Agency, which are:
To accelerate economic growth in the
City of Adelaide by attracting
investment and supporting
businesses, festivals and events, as
well as visitor, student and residential
growth
.
To promote the City of Adelaide as a
destination and ‘magnet city’ and
increase its visitation and use by
residents, workers, visitors and the
community in general
,
.
To position the Rundle Mall as the
State’s premier retail and commercial
shopping precinct in order to sustain
retail, business and economic viability
.
To ensure that the Agency operates
within the terms of this Charter and
the Council’s Strategic Plan
.
Context
The 2024/25 AEDA draft BP&B has been informed by:
• Engagement with the AEDA Board
• Engagement with the AEDA Advisory Committee
• Review of the CoA Strategic Plan Feedback
• AEDA Strategic Plan Consultation with AEDA Board, Advisory
Committee & Staff
Strategies & Actions
Business, Investment & Residential Growth
City Indicators that will be impacted Key Result Area Measures
•
Commenced international student
numbers maintained at 2023 levels
(29,143 as of October)
•
2+% increase in the number of city
workers above 2022/23 levels (157,000)
to 160,647
•
2+% increase in the number of city
businesses above 2022/23 levels
(12,558) to 12,809
•
50 inward investment proposals/local expansions supported, with at least 1,500 jobs created
•
750 Welcome to Adelaide employee introduction packs distributed
•
Increase of bookable tourism experiences in the city
•
30+ vacant shopfronts/premises activated
•
Deliver 3 industry briefing events
•
Outcomes from collaborative partnerships with MTPConnect; SouthStart and University of Adelaide/Thinclab to
support small businesses to grow and scale
•
5 projects/market interventions to support emerging industries in the city
•
Supported/ facilitated 6 networking/knowledge transfer events for businesses
An environment that attracts investment, supports new businesses to start, existing businesses to grow and increases the city’s population.
CoA Strategic Plan
Alignment
•
Activate and upgrade precincts to stimulate investment, visitation and maximise opportunities
•
Provide services and information that contribute to a high productivity economy
•
Work with partners, universities and businesses to attract investment and improve employment opportunities
•
Grow and develop sectors such as medical, technology, create and professional services
•
Deliver economic data and insights to our business community
•
Support increased residential growth
Outcomes
•
The position of the State’s Central Business District is reinforced
and its strengths and opportunities are known nationally and globally
•
Existing businesses grow and new firms including retailers, medical, technology, creative and professional services choose the city
•
Knowledge based industries grow and innovation networks develop further
•
Investment and business decision makers in the city have access to reliable data
•
Enhanced partnerships with the state government, private investors and industry groups to stimulate residential and commercial
investment
Visitor Growth
City Indicators that will be impacted Key Result Area Measures
• City hotel occupancy above 70%
• Jobs filled & businesses data (AEDA refining and sourcing target)
• TiCSA Tourism Barometer Report
o industry confidence & forward booking sentiment
o workforce sentiment
o Adelaide operators compared to total sentiment
(AEDA refining and
sourcing target)
• Delivery of the new Experience Adelaide Visitor Centre
• 20 new bookable city tourism products/experiences
• Visitor & community sentiment index (to be developed)
Visitors have an enjoyable, vibrant and dynamic city experience so that they are encouraged to return again and become ambassadors for the Adelaide as a
destination of choice
CoA Strategic Plan
Alignment
•
Increase the number of people who visit the city through local, interstate and international visitation
•
Refresh the way in which information is provided to visitors to the city
Outcomes
•
Adelaide is a world class events city hosting a diverse range of festivals and events, including business events, spread
across the city over the year
•
Strengthened partnerships and programs to increase awareness of the city, leading to increased bookings from regional,
national and international visitors
•
Visitors are highly satisfied with their experience and can easily find information about planning their trip before they arrive
and during their visit
•
A sustainable tourism sector, that continues to grow by diversifying and expanding product offerings, job growth, and
attraction of new operators
Rundle Mall
City Indicators that will be impacted Key Result Area Measures
•
Increased spend in the city
•
Reduced retail vacancy rates from 15.3%
•
Increased market share in hospitality categories
•
Demonstrate uplift in market share and foot traffic across 3 core campaigns
•
5 new brands commit to Rundle Mall
•
2 public realm infrastructure projects completed.
•
A minimum of $20m new capital investment delivered or committed in the Rundle Mall
precinct.
•
Completed concept plans for Twin Street upgrades.
•
10 Business or industry media stories relating to Rundle Mall.
•
Uplift in Rundle Mall small business sentiment index over FY24/25
Rundle Mall, the State’s premier retail and commercial shopping precinct, energises city life and enriches the Adelaide experience
CoA Strategic Plan
Alignment
Activate and upgrade precincts to stimulate investment, visitation and maximise opportunities
Reinforce the position of Adelaide as the State’s central business district to amplify Adelaide’s reputation as a place to le
work and start a business
Deliver quality street and laneway upgrades, Mainstreet’s, precincts and neighbourhood revitalisation and improvements
that make Adelaide well-designed, safe and unique.
Outcomes
Rundle Mall evolves and regenerates with new capital investment
Rundle Mall develops a reputation as a food, wine and hospitality precinct
A vibrant and multi-
activations, and installations.
else
Through shading, greening and other initiatives, Rundle Mall remains an attractive place to visit as climate variations
become more extreme
Brand and Marketing
The voice of the city to consumers through Experience Adelaide and to businesses as the Adelaide Economic Development Agency
City Indicators that will be impacted Key Result Area Measures
• Increased awareness of AEDA among target audience(s)
• Increased foot traffic in key precincts and areas
• Total city expenditure above $4.45b
•
10% increase to $2.2m on 2023/24 in media mentions (advertising space rate) with reference
to AEDA
• Maintain a variance of 85% – 95% neutral and/or positive sentiment of media mentions
• Increase awareness of AEDA amongst target audience by X% (metrics to be determined by
research scheduled for completion in May)
• Brand health metric for “city” and Adelaide” as a destination to visit (metrics to be determined
by May)
CoA Strategic Plan
Alignment
•
Reinforce the position of Adelaide as the State’s central business district and amplify Adelaide’s reputation as a place to lear
n,
work and start a business
•
Provide services and information that contribute to a highly productive economy
•
Partner with State Government, universities, associations and community to activate and upgrade precincts to stimulate
investment, visitation and maximise opportunities
•
Refresh the way in which information is provides to visitors to the city
Outcomes
•
Unified key messaging and branding of the city to intrastate, interstate and international audiences
•
More workers, residents, students, and visitors in the city
•
Increased spend in the city
•
AEDA is a partner of choice for businesses and other organisations with a mutual interest in enhancing the city’s economy
•
Adelaide is considered a destination of choice for leisure travellers
Draft Budget
Program Plan
Overview
Program Plan
Budget
Program Plan
Budget
Program Plan
Budget
Budget
The AEDA Budget has been prepared consistent with the 2024/25 City of Adelaide
BP&B process, built on the basis of budget repair and consistent with Council’s
Strategic Plan and Long-Term Financial Plan. It has been prepared with a view to
efficient delivery of the actions outlined in the draft business plan and received
AEDA Board approval on 12 March 2024 for submission to Council as a draft
budget for consultation purposes.
• $13.5m annual budget including Rundle Mall levy and strategic projects
equating to 5.9% of the City of Adelaide’s annual budget
• $9.1m CoA appropriation which is approximately 4.0% of City of Adelaide’s
total budget
• AEDA has 33.6 FTE budgeted (including vacancies), equating to 4.3% of the
City of Adelaide’s total FTE count.
Rundle Mall Fees & Charges
The AEDA Board considered proposed changes to the Rundle Mall Levy and Casual Mall Lease
rates at their 13 February 2024 Board meeting and endorsed the following:
Rundle Mall Levy
• Increase the Levy by 2.8% in line with the standard indexation being applied by Council for
the upcoming budget, and with Long-Term Financial Plan parameters and principles
• This table outlines the implications of the proposed increase on forecast Rundle Mall income:
Casual Mall Leases
• An increase of 2.8% for the Casual Mall Lease (CML) rates in 2024/25. An approximate 2.8%
increase is applied to individual fee amounts as opposed to an exact 2.8% to ensure the
fees consist of practical denominations.
2023/24 2024/25 % Increase
Gross Rates 3,937,808 4,048,067 2.8%
Rebates (17,802) (18,301) 2.8%
Objections (30,000) (30,000) -
Net 3,890,006 3,999,766 2.8%
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Thank You