NORTHERN TERRITORY TOURISM INVESTMENT GUIDE 2014-2015
2 CONTENTS
Invitation to invest 4 Destination Northern Territory 6 Economic outlook 8 Tourism in the Northern Territory 10 Tourism accommodation in the Northern Territory 11 Darwin accommodation performance 12 Connecting the Northern Territory 14 Northern Territory development 16 Tourism investment opportunities 18 Luxury hotel development 20 Lee Point urban tourism 22 Darwin city accommodation 24 Finke Gorge nature based accommodation 26 Immersive tourist attractions in parks 28 Supporting investment in the Northern Territory 31 Tourism NT 2014-2015 Investment Guide 3
AN INVITATION TO INVEST IN THE NORTHERN TERRITORY TOURISM INDUSTRY Tourism is a major employer and a key contributor to the Northern Territory economy. We aim to grow the visitor economy to $2.2 billion by 2020 through collaborative efforts across industries and governments. Pivotal to success, however, is investment in new and enhanced experiences for our visitors. Investment opportunities exist across the Territory, particularly for accommodation, to meet current tourism demand and growing corporate interest on the back of numerous new resource, mining, construction and defence projects. With a high average room occupancy and continually increasing RevPAR, the accommodation sector is set for investment. Investment is also needed to develop new and enhanced immersive nature-based experiences, innovative visitor attractions and services to support growth from emerging markets. With its well established tourism industry, natural resources, cultural diversity, proximity to Asia and surging economy, the Territory is the place to invest. I encourage you to contact my team and allow us to assist you to take advantage of the opportunities on offer. TONY MAYELL Chief Executive Officer Tourism NT 4
Tourism NT 2014-2015 Investment Guide 5
Strategically positioned close to South East Asia, rich in natural resources and cultural diversity, the Northern Territory should be seriously considered by investors wanting to expand their tourism portfolio into growing Asian markets. The Northern Territory comprises a land area of 1 352 176 square kilometres. It is Australia s third largest jurisdiction after Western Australia and Queensland, yet has the lowest population density. The capital, Darwin, is located on the northern coast, 12 degrees below the equator; making it closer to Singapore and Manila than it is to Sydney and Melbourne Darwin city is the commercial and administrative centre of the Northern Territory. Alice Springs is the largest population centre outside Darwin and is a hub for significant tourism activities in Central Australia. Climate The Territory is so large that it has very distinct climate zones. The Top End, which includes Darwin, Katherine, Kakadu and Arnhem Land, has a tropical climate and two official seasons. The wet occurs between October and April and has high humidity and heavy monsoonal rainfall at times, while the dry season, with its warm sunny days and cool nights, runs from May to September. Central Australia, which includes Alice Springs, Tennant Creek, the Barkly Tablelands and Uluru/ Kata-Tjuta regions, has a semi-arid climate. It experiences four typical seasons: summer, autumn, winter and spring. Central Australia has hot summer days from December to February and surprisingly cold nights from June to August. Spring and autumn are warm throughout the day and cool at night. 6
LYTWELEPENTY / DAVENPORT RANGE NATIONAL PARK TJORITJA / WEST MACDONNELL NATIONAL PARK Tourism NT 2014-2015 Investment Guide 7
The Territory s economy is one of the most buoyant and vibrant in the country... We will maintain our open for business attitude and continue to build on our key sectors. The Hon. Adam Giles MLA, Northern Territory Chief Minister, February 2014 8
ECONOMIC OUTLOOK The structure of the Territory economy is markedly different to other Australian jurisdictions. The Territory has a large mining and energy sector reflecting an abundance of natural resources, a large public sector, a significant defence presence and a dynamic tourism industry. The outlook is positive with the economy expected to grow by an average of 4.9 per cent per annum through to 2017-18 1. Mining, which includes mineral and energy production, and construction are the largest industries in the Territory, contributing 19.8 per cent and 11.6 per cent of GSP respectively 2. The importance of the resources sector to the Northern Territory economy is growing and services that support this industry are critical to this growth. Tourism is also an important industry in the Territory, responsible for 10 per cent of total economic output. It has a broad impact upon many other industry sectors and generates a significant number of jobs in the Territory. Around one in eight employed Territorians has a job as a result of the tourism sector. Competitive Advantages The Northern Territory offers major competitive advantages to other tourism investment prospects, including: An abundance of natural resources; Enviable location as Australia s Asian gateway; Vast areas of land available for greenfield development; Containing two of the most highly recognised world heritage listed national parks in Uluru-Kata Tjuta and Kakadu national parks; A commitment from the Parks and Wildlife Commission of the NT to consider appropriate commercial developments in national parks and reserves; Centralised government planning processes; and absolute commitment by the NT Government to facilitate development, and; The lowest tax environment in Australia for small to medium business. 1 NT Treasury, Economic Brief, March Quarter 2014 2 NT Government, Budget 2013-14, Northern Territory Economy Tourism NT 2014-2015 Investment Guide 9
TOURISM IN THE NORTHERN TERRITORY The Northern Territory delivers a visitor experience that is a unique blend of the natural and cultural experiential offering. Nature is about setting; the varying and remarkable landscapes that inspire our visitors. Culture is about the people and their way of life; adding vibrancy and richness to the landscapes. The majority of visitors (80 per cent) to the Northern Territory are from the domestic market. International visitors are mainly from Europe, however, Tourism NT anticipates that international visitation from Asian markets will grow in the future as is the case around Australia. Visitors to the Northern Territory are from all stages of life including youth, families and older couples. Tourism NT identifies the Northern Territory s primary domestic and international target markets as aged 50+ years and a secondary market aged 18-30 years. What unifies visitors to the Territory is their interest in unique and compelling experiences that are interactive and are based around the core themes of nature and culture. 10
TOURISM ACCOMMODATION IN THE NORTHERN TERRITORY Visiting friends and relatives 17% Business 29% Demand for visitor accommodation in the Northern Territory has increased over the past five years, with the number of room nights occupied up from 1.65 million in 2008-09 to 1.77 million in 2012-13. Significant investment has recently occurred or is currently occurring in a number of accommodation projects in the Territory, including several new developments in Darwin which have increased the supply and quality of tourist accommodation in the Northern Territory. Holiday Visitors 49% Other 5% International 20% Current projects include : $35 million upgrade to Lasseters Hotel Casino in Alice Springs enhancing and expanding the existing property; $150 million development of a 300 room hotel in Darwin s CBD aimed at the leisure and business markets, and; $10 million development in Darwin CBD including 50 serviced apartments. Interstate 46% Germany 13% Japan 7% France 7% Intrastate 34% USA 13% UK 14% New Zealand 6% Other Europe 20% Other Countries 7% Other Asia 13% National Visitor Survey and International Visitor Survey, 2013-2014, Tourism Research Australia. Tourism NT 2014-2015 Investment Guide 11
Demand for visitor accommodation in Darwin continues to increase with average room occupancy at 80% in 2013, compared to 76% in 2010. During the same period RevPAR at Darwin hotels increased from $117 to $146. DARWIN ACCOMMODATION PERFORMANCE 12
Forecast Nights in Darwin 9 000 8 000 7 000 Visitor Nights (000s) 6 000 5 000 4 000 3 000 2 000 1 000 90% $180 85% 80% 75% 70% 65% 60% 76% $150 76% $153 80% $166 80% $178 $160 $140 $120 $100 $80 55% 50% $117 $120 $137 $146 $60 $40 45% $20 40% 2010 2011 2012 2013 $- Average of RevPAR Average of ADR Average of Occupancy Tourism NT 2014-2015 Investment Guide 13
The Territory s transport activity is estimated to increase substantially over the coming years due to passenger demand associated with the expansion of the mining, construction, manufacturing, tourism and education sectors. The Hon. Peter Styles MLA, Minister for Transport, April 2014 14
CONNECTING THE NORTHERN TERRITORY TO THE REST OF THE WORLD Getting to the Northern Territory is easy. The vibrant capital city of Darwin is closer to Asia than any other capital city in Australia and, in the centre, Alice Springs is only a 2-3 hour air journey from most Australian capital cities. Tourism NT 2014-2015 Investment Guide 15
NORTHERN TERRITORY DEVELOPMENT A PLATFORM FOR GROWTH The Northern Territory s economic outlook is very positive and more so than in many other parts of Australia. Darwin has become an important supply, maintenance and operations hub for the mining industry and the oil and gas sector in the Asia/Pacific region. Major developments currently underway or confirmed are: $34 billion Ichthys LNG project on Blaydin Point (more detail opposite) $5.4 billion Darwin liquefied natural gas project on Wickham Point $110 million marine supply base at East Arm Wharf, which will supply service oil and gas ships $55 million Darwin industry fuel terminal $50 million helium plant. 16
INPEX ICHTHYS PROJECT The Ichthys Project is a joint venture between INPEX (76%) and Total (24%). The project aims to produce over 8.4 million tonnes of LNG from the Ichthys field, located near Browse Basin off the coast of Western Australia. This project is the largest investment project in the Northern Territory, and the second biggest in Australia s history, providing an enormous economic boost the Northern Territory economy. 3,500 workers for this project are being housed in a newly constructed accommodation village, however increased demand for other short-term visitor accommodation is being experienced associated with this project. Key positive impacts on tourism: Increased short-term business travel in both the construction and operational phases of the project An overall increase in economic activity in the region and resultant greater demand for short-term accommodation. A dampening of the seasonal (dry/ wet) fluctuations in hotel occupancy rates in Darwin, as business travelers are typically less sensitive to the weather. Strong growth in occupancy rates and RevPAR. Tourism NT 2014-2015 Investment Guide 17
TOURISM INVESTMENT OPPORTUNITIES Based on the confidence in the Northern Territory economy and Tourism NT s continued efforts to promote our cultural and natural experiences, the tourism industry in the Northern Territory offers significant investment opportunities. A number of well-positioned, privately - owned sites in Darwin are available and suitable for developing visitor accommodation. The current zoning for these sites would facilitate hotel, serviced apartments or mixed-use developments, encompassing visitor accommodation and a combination of residential, retail and/ or office space. 18
Our plan is to grow the visitor economy to $2.2 billion by 2020 which will create more jobs and we can t do that without a competitive and world class tourism industry. The Hon. Matt Conlan MLA, Minister for Tourism, July 2014 Tourism NT 2014-2015 Investment Guide 19
LUXURY HOTEL 20
IN DARWIN The Northern Territory Government is seeking to facilitate the development of a luxury hotel and associated facilities, achieving standards not previously seen in Darwin. The Northern Territory Government is highly confident there is an unmet and growing demand for a much higher standard of accommodation and hospitality in Darwin due to increased business visitation brought to Darwin by business investment opportunities, and wealthy Australian and international tourists seeking an ultra high quality tourism experience. The viability of luxury hotels is strengthened by providing full service offerings including hospitality, retail and bespoke tourism services. These offerings need to be easily accessible, but not necessarily all part of the one business. It may be possible to have a range of partnerships with both local and international partners to source guests and offer the range of services desired. Depending upon location, a high quality inner city proposition may be attractive, or perhaps a high quality, tropical style resort. There are a number of privately owned freehold sites and some publicly owned land currently available that may suit individual proposals. For further information in regards to these opportunities please contact: Anne Tan General Manager Office of Major Infrastructure and Investment Department of the Chief Minister Phone: +61 8 8936 4206 Email: anne.tan@nt.gov.au Tourism NT 2014-2015 Investment Guide 21
LEE POINT URBAN TOURISM OPPORTUNITY A prime opportunity for one or more high quality 4 or 4.5 star tourism accommodation facilities along with hospitality, niche retail, recreation and services to the leisure and business traveler markets. Located on the northern edge of urban Darwin, adjacent to Casuarina Coastal Reserve, the Lee Point area is one of the most significant developable areas remaining along the coastline within close proximity to the Darwin urban area. A number of sites will become available for development of tourism accommodation and hospitality services in a main street format. Crown land is normally made available through a competitive process. Developers typically purchase a Crown lease, which is converted to freehold upon satisfying certain conditions. The site is highly accessible from Darwin Airport and located in proximity to nearby infrastructure including Charles Darwin University, Royal Darwin Hospital and Casuarina Shopping Centre. There are opportunities for view lines along the coast and to the sea. 22
A full-service offering including hospitality, retail and tourism services within close proximity or a mixed use development incorporating a mix of serviced apartments, retail and food hospitality may also be viable. Due to the size of the available land a mixture of standard and medium density residential developments with a component of holiday rental accommodation may also be a viable option. The site is located on the coast in Lee Point, approximately 14km north of Darwin CBD. The location boasts significant frontage to an arterial road and potential access to the coast. With a range of positive attributes as a location for tourist accommodation including coastal location, proximity to infrastructure, potentially attractive view lines and easily developable land, this site presents unique potential. For further information in regards to this opportunity please contact: Leah Clifford Executive Director, Land Development Department of Lands, Planning and the Environment Phone: +61 8 8924 7058 Email: leah.clifford@nt.gov.au Tourism NT 2014-2015 Investment Guide 23
DARWIN CITY ACCOMMODATION The Frances Bay, Myilly Point and Darwin Waterfront Precinct areas have potential to incorporate tourism facilities, including sites suitable for hotel development. These areas are at varying levels of preparation for investment. There are also a large number of privately held sites in and adjacent to the Darwin CBD suitable for hotel development. These sites offer a diversity of opportunities including 4 or 5 star hotels, Bali style resorts, serviced apartments and ancillary services. Opportunities also exist close to the Darwin International Airport. Crown land is normally made available through a competitive process. Developers typically purchase a Crown lease, which is converted to freehold upon satisfying certain conditions. There are multiple sites available within the Darwin central business district, coastal and waterfront areas. Some locations may have restrictions such as total building height, setback from site boundaries or number of car parks required to support the development. Some sites are available immediately, subject to negotiation with the existing site owners/managers. For further information in regards to this opportunities please contact: Leah Clifford Executive Director, Land Development Department of Lands, Planning and the Environment Phone: +61 8 8924 7058 Email: leah.clifford@nt.gov.au DARWIN WATERFRONT PRECINCT 24
MYILLY POINT FRANCES BAY Tourism NT 2014-2015 Investment Guide 25
FINKE GORGE NATURE BASED ACCOMMODATION The Northern Territory offers a diverse range of nature-based tourism experiences. There is a strong demand for highend luxury accommodation located in inspiring locations across the NT. The NT Government has instigated a preapproval process designed to significantly shorten the length of time required for a nature-based tourism accommodation development to be approved. Hydrology reports and sacred sites approvals have been sourced and negotiations are advanced with Traditional Owners. Extensive planning has occurred and is ongoing for a location bordering Finke Gorge National Park in Central Australia, 140 kilometres west of Alice Springs. The proposed site is close to the settlement of Hermannsburg. A key location has been identified with 270 degree views of the surrounding valleys. The site is ideally suited to an immersive nature based lodge up to forty rooms. There may be opportunities for the investor to plan and establish individual facilities, before selling or leasing the management rights to another company/ operator. An expression of interest process for the Finke Gorge site is expected to be released in 2015. For further information in regards to this opportunity please contact: Valerie Smith Director Policy and Planning Tourism NT Phone: +61 8 8999 3939 Email: valerie.smith@nt.gov.au 26
A key location has been identified with 270 degree views of the surrounding valleys. The site is ideally suited to an immersive nature based lodge up to forty rooms. There may be opportunities for the investor to plan and establish individual facilities, before selling or leasing the management rights to another company/ operator. Tourism NT 2014-2015 Investment Guide 27
IMMERSIVE TOURIST ATTRACTIONS IN PARKS Over 1.3 million overnight trips are taken in the Northern Territory every year, with visitors experiencing the adventure of wilderness and unforgettable natural beauty against a backdrop of the world s oldest living culture. Providing immersive tourist attractions to complement this extraordinary tourism experience will unlock the full visitor potential in these areas, while contributing to the conservation of our natural environment. National parks and reserves are already a major drawcard for visitors, annually hosting in excess of 2.8 million visits from Territory residents, and interstate and international visitors. Investment that creates new opportunities for tourists could attract many more visitors. 28
DARWIN JABIRU NHULUNBUY KATHERINE TENNANT CREEK ALICE SPRINGS The NT Government is open to commercial proposals that seek to deliver benefits across a broad range of stakeholders, including the proponent, Parks and Wildlife Commission of the NT, traditional owners (where applicable), the tourism sector, residents of the Northern Territory and visitors to the parks and reserves. There are 87 parks and reserves under the management of the Parks and Wildlife Commission of the Northern Territory (PWCNT), some of which are managed in partnership with Aboriginal traditional owners. While the priority of the PWCNT and its partners is to protect these landscapes for future generations, there is opportunity to bring tourism-based commercial project ideas to fruition with the full support of the NT Government. Some sites are available immediately, subject to negotiation with PWCNT management. For further information in regards to these opportunities please contact: Jill Catchlove Assistant Director, Tourism and Visitor Engagement Parks and Wildlife Commission of the NT Phone: +61 8 8951 8241 Email: jill.catchlove@nt.gov.au Tourism NT 2014-2015 Investment Guide 29
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SUPPORTING INVESTMENT INTO THE NORTHERN TERRITORY The Northern Territory Government has a dedicated team of staff to provide new and existing investors with support and information regarding tourism investment opportunities in the Northern Territory. If you are considering investing in the Northern Territory, we are ready to: assist in identifying opportunities and facilitating introductions with relevant parties; provide research data and market insights to assist with feasibility studies and business case development; organise introductions with relevant agencies across the Northern Territory Government to aid the approval processes for your project, and; provide feedback on development proposals with regard to their alignment with the strategic direction of tourism in the Northern Territory. The Northern Territory offers some of Australia s most exciting tourism prospects, and the opportunity to invest in this dynamic and progressive industry is awaiting you! Tourism NT 2014-2015 Investment Guide 31
For further information contact: Cheng Teoh Director - Investment Services Department of the Chief Minister Ph: +61 8 8999 5091 Email: cheng.taoh@nt.gov.au www.investnt.com.au Valerie Smith Director Policy and Planning Tourism NT Phone: +61 8 8999 3939 Email: valerie.smith@nt.gov.au