NATIONAL ARBORETUM CANBERRA
PRICING POLICY
2 May 2016
Includes 3yr annual increases in schedule
1. Introduction
The National Arboretum Canberra (Arboretum) offers a variety of products and visitor experiences. For the purposes of this pricing policy they are categorised into three types according to the revenues they attract:
o free experiences that visitors can engage with;
o affordable venue hire and services that contribute to operational costs; and
o premium products and experiences engaged in for the purposes of making a profit.
2. Principles
Fees and charges will only be levied if specifically included in this policy or negotiated in accordance with the framework established by this policy.
The operational costs for the Arboretum are funded through a combination of government appropriation, lease and hire revenues (including venue hire fees and the Arboretum’s share of catering and retail turnover) and fee for service (including parking fees and ticketed events and tours). Generally fee for service prices are set at rates sufficient to meet all direct costs and to provide an additional contribution towards the maintenance and development of the Arboretum. This ‘no loss’ principle applies to overall product and service pricing to ensure that government funding does not cross-subsidise commercial activities and maintains compliance with competitive neutrality principles.
Revenue generation is of critical importance to the Arboretum and as a result, discounting and waiving of fees is only undertaken in certain circumstances. Some flexibility is required to allow for negotiation of prices based on the nature of the event and any quid pro quo or promotional opportunities being offered to the benefit of the Arboretum. In addition, flexibility is required to enable non-commercial and charitable uses of the Arboretum to take place. Section 4 provides guidance for discounting of fees.
Catering and food sale prices will be set by the Arboretum caterer within the broad guidelines in the service agreement with the Arboretum but will generally be at the premium end of the market. Retail prices set by the operator of the retail space will be similarly determined. Discounts on food and retail offerings are at the discretion of the contracted operators, however discounts do not apply to Arboretum staff.
The Arboretum is the venue owner and has first option for venue use. Ginger Catering is the Arboretum’s booking agent and receives a share of venue hire in return for booking services. Both the Arboretum and Ginger Catering have a shared interest in maximising the use of venues, the generation of revenue and the promotion of the Arboretum.
Where the Arboretum books a venue for its purposes but does not require any booking or set up services from Ginger Catering, no venue hire fee is payable. This includes venue hire required for the Arboretum to meet its contractual obligations such as those outlined in sponsorship agreements.
The Arboretum will seek to maximise revenue and will make every endeavour to avoid booking a venue when a paid function is in the offing. Where the Arboretum agrees that there is a direct and demonstrable loss of a paid function booking as a result of the Arboretum’s use of a venue, within a reasonable timeframe, the Arboretum will consider paying the share of venue hire that would otherwise have been payable to Ginger Catering if the paid booking had proceeded.
3. Pricing structure
The Arboretum’s pricing structure for visitor services, products and fees and charges is at Schedule 1, Tables 1-3.
Prices have been determined following comparison against prices at similar institutions in the ACT and around Australia, comparison with the fees that apply to visitor experiences and for the hire of spaces in Canberra’s public facilities, parks and places and consultation with the Arboretum’s booking agent and catering provider, Ginger Catering.The pricing structure makes provision for pricing to be calculated on an annual, calendar year basis and determined in advance on a rolling three year review program. The rolling review prices adjust fees and charges at an indexed rate (currently 5%) to cover bookings that are made at today’s prices but not utilised until a future date.
The rolling three year review program will minimise revenue losses at the Arboretum that would otherwise result from bookings made in advance.
In the event that the indexed rate proposed proves to be sufficiently far from the actual situation that eventuates in the future, adjustments will be made to the pricing to reflect market conditions. In cases where the rate is required to be lowered, both new and existing bookings would be charged at the lower rate. In cases where the rate is required to be increased, new bookings would be charged at the higher rate but pre-existing bookings would honour the original quotation.
Schedule 1 shows pricing to the end of 2018. The next scheduled review in late 2016 will take effect on 1 January 2017 and provide pricing to the end of 2019.
Core visitor services – selected guided talks and short walking tours by trained volunteer guides, downloadable apps, maps, walking trails and interpretive displays are provided free of charge to visitors to enhance community engagement and ensure a quality core visitor experience.
Premium visitor services and products – such as facilitated educational programs for schools groups, and tertiary students, specialist and other group bus and walking tours which are set at market rates, after comparison with similar premium services and products.
Venue hire – prices are set at market rates after comparison with similar premium products and venues in the ACT market. Any agreement to discount venue prices must be approved in advance by the Deputy Director-General, Arts, Business, Events, Sport and Tourism in accordance with the discount policy below.
Outsourced services – prices for outsourced services such as the retail shop, the cafe, restaurant and food and beverage service are set in accordance with service agreements established with each provider. Service agreements will require commercial operators to charge reasonable prices and provide a range of affordable options to ensure the reputation of the Arboretum is protected whilst at the same time providing sufficient flexibility to encourage innovation, quality of service and financial viability.
Rental and leasing opportunities – will be established through a procurement process.
Commissionable products – offering negotiated rates for Arboretum products and programs to tour operators or other commercial providers, including products developed in partnership with those providers. These rates may reference the approved fees and charges but will generally be set through service agreements.
Parking Fees – have been set at a rate that will generate a positive revenue stream to the Arboretum whilst not discouraging visitors. The hourly and all day parking rate has been set by comparison with parking fees applied across the ACT.
As other services become available and prices are determined, this pricing policy will be updated.
4. Booking and Cancellations Policy
Deposits are required and are set at 50% of the estimated venue hire/function/event price with catering and 100% where there is no catering, and are payable upon signing a venue hire agreement. To provide certainty of pricing to customers the event price will be based on prices applicable in the year in which the event is to be held as shown in Schedule 1. The deposit will be deducted from the final event price at settlement, which will be no later than seven days prior to the event.
All cancellations must be made in writing. The following cancellation policy applies to all venue hire bookings:
Notice provided / Cancellation fee /Greater than 90 days / 10% of quoted venue hire fee
30 – 89 days / 25% of quoted venue hire fee
7 – 29 days / 50% of quoted venue hire fee + 25% of food and beverage costs
Less than 6 days / 100% of quoted venue hire fee + 50% of food and beverage costs
Less than 48 hours / 100% of total function costs
The cancellation policy above does not apply to small events involving fewer than 10 people or where an event is postponed and rescheduled by the hirer. However, the deposit or full event payment price will only be applied to a rescheduled venue event where a minimum of thirty (30) days notice is given. Rescheduling is subject to venue availability. The rescheduling conditions apply to a venue hire/event being rescheduled for one time only within a three (3) month period.
Subject to conditions outlined in the Booking Policy, if the event is cancelled by the Arboretum, at no fault of the hirer, the deposit or full venue price will be refunded.
The following cancellation policy applies for guided tours and other activities provided by the Arboretum (as shown in Table 4 of Schedule 1).
Notice provided / Cancellation fee /Greater than 30 days / No fees apply
7 - 29 days / 25% of quoted fee
6 days - 48hrs / 50% of quoted fee
Less than 48hrs / 100% of quoted fee
To protect assets, monetary bonds may be sought for some events. The monetary value of the bond will be determined in accordance with a risk analysis for that event.
5. Discounting of Fees
Private or public use of a venue for which entry/participation fees are charged will normally be subject to the full fee as per Schedule 1. Waiving or discounting of fees may occur in the following circumstances, by negotiation with the proponent:
a. The proponent is providing a public event free of charge to participants or, if fees are charged to participants, they are used for a charitable purpose and the event is actively supported and promoted by the Arboretum as part of its public events program. This includes free performances, demonstrations, workshops and other activities such as charity trail rides.
b. The proponent is the Friends of the Arboretum, Bonsai Collection Advisory Committee, the Southern Tablelands Ecosystem Park, Ginger Catering or the Curatoreum and the purpose of the venue hire is either a staff/volunteer meeting or training session or a public event that is either free or, if ticketed, 100% of revenue is returned to the Arboretum. This includes the Friends Speaker series and other public events, Friends training sessions, Friends celebration and routine staff meetings.
In all cases where venue hire or other relevant fees are waived or discounted, the Arboretum may nonetheless charge the approved Event Supervision, Facilitation and Planning fee where appropriate to meet some or all costs incurred.
Requests for fee discounts or waivers not allowed for in the above circumstances will be considered on a case by case basis upon written application to the Deputy Director-General, Arts, Business, Events, Sport and Tourism. Such applications require a minimum of 8 weeks notice. Unless otherwise agreed by the Deputy Director-General and Ginger Catering, the revenue foregone from a fee waiver will be shared pro-rata between Ginger Catering and the Arboretum according to the agreed split of revenue provided for in contractual arrangements.
Fee waivers may be exercised in special circumstances with Deputy Director-General approval where a hirer has not received adequate or reasonable service from the venue, as agreed. Such waivers will be exercised in consultation with Ginger Catering.
6. GST
The fees in this pricing policy are GST inclusive unless specifically identified as GST exclusive.
7. Review
The next scheduled review will take place in late 2016 for implementation on 1 January 2017. Thereafter, reviews will take place on an annual basis. However, pricing may be reviewed more regularly in response to market testing and cost recovery considerations. Arboretum fees and charges and associated processes and policies will only be valid if incorporated into this pricing policy and approved by the Director-General prior to implementation.
Director-General Approval
I approve this pricing policy for the period 2 May 2016 – 30 June 2018.
Jeff House
Deputy Director-General
Chief Minister, Treasury and Economic Development Directorate
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