Third Quarter 2013
Lord Mayor’s Brisbane Economic
Snapshot
Latest Indicators
Brisbane achieves record international visitor and
expenditure numbers
The latest tourism snapshot reports that 985’000 international visitors came to Brisbane over the
12 months ending March 2013, an increase of 81’000 visitors over the previous year. The data
also reveals that international tourists are staying in Brisbane longer. The total number of nights
spent in Brisbane by international visitors grew by 15.6%, resulting in an increase in the average
length of stay to 20.4 nights.
It is estimated that international visitors spent around $1.58 billion in the local economy over the
last 12 months1. Key drivers of international visitation to Brisbane include holiday, training, and
employment related reasons.
Brisbane’s population growing faster than national average
The Australian Bureau of Statistics has released new regional population estimates, giving an
indication of Brisbane’s population growth. During 2011-12 financial year:
• the Brisbane Local Government Area increased by 19,900 persons
• Metropolitan Brisbane increased by 42,400 persons
• Metropolitan Brisbane recorded an annual growth rate of 2%, faster than the state and national
averages of 1.9% and 1.6% respectively.
Property market strengthening
New data on Brisbane’s property market supports the expectation of future economic growth.
Residential - Brisbane has experienced a 12.6% increase in house sales and an 18%
increase in apartment sales over 2012. The HIA-Commonwealth Bank Housing Affordability
Index now lists Brisbane as the most affordable mainland state capital for residential premises.
Office - Over 2013, Brisbane expects to see the largest increase in office supply of all
Australian Capitals (76,665m2), with 81% of new supply entering the market already pre-sold.
Retail - Brisbane saw a 5% increase in retail rents over the last year, in contrast to all other
Australian capitals which remained steady. This is indicative of a strong performing retail sector in
Brisbane.
Indicator
Annual data unless specified
Value of Brisbane’s Economy (June
2012)
1
Region
Brisbane LGA1
N/A
Tourism Queensland, Brisbane Regional Snapshot, 2013
Greater Brisbane2
$135 Billion*
Employment (July 2013)
798,300
1,074,800
Unemployment Rate (July 2013)
5.7%
5.7%
Population (July 2012)
1,109,664
2,126,986
1
Brisbane Local Government Area
2
Brisbane Statistical Division, made up of Brisbane, Ipswich, Logan, Moreton Bay, and Redlands
Local Government areas
* Source: Brisbane City Council Estimate. Source (ALL): Australian Bureau of Statistics
Transport and City Building
As the engine rooms of our national economy, cities drive productivity and investment by
concentrating economic activity. Industries located in Australia’s cities have been growing faster
than their regional and suburban counterparts. The concentration of employees, customers and
competitors drive productivity growth for city businesses.
Business growth in cities is facilitated through building the transport networks that ease
accessibility for workers and businesses. In Brisbane, the introduction of high frequency buses
moving along dedicated busways, green bridges, bikeway investments, and upgrades to the road
network are all contributing to productivity growth.
Legacy Way, the final link in Brisbane’s TransApex city ringroad, is due for completion by 2015.
This $1.5 billion project will ease congestion in Brisbane’s inner city and significantly reduce
travel times across the whole city.
Brisbane’s transport investments have ensured that 83% of residents are able to get to work
within 45 minutes2. This is an excellent result; research on world cities indicates that travel times
above 45 minutes, irrespective of travel mode, can adversely affect business investment and
growth.
While commuter demand is growing in line with population growth, Brisbane’s freight task is
growing even faster. With ongoing globalisation, freight volumes per person are increasing rapidly
and the cost of transporting goods is rising as a share of final prices paid by businesses and
consumers.
Freight transport is a major driver of urban transport demand and poses the next big challenge for
Australia’s cities3.
2
3
Brisbane City Council, Omnibus Survey, 2012.
Department of Infrastructure and Transport, State of Australian Cities¸2012.
New infrastructure projects - such as Legacy Way and the planned Kingsford Smith Drive
upgrade – will improve the efficiency of freight movement and ensure Brisbane keeps pace with
demand.
Transport in Brisbane
Over the decade to 2011, transport was the third largest contributor to Brisbane’s economic
growth4.
In 2011 the transport industry contributed over $68.5 billion to the Australian economy, with $9.45
billion of that output generated in Brisbane5. Figure 1 shows Brisbane’s relative share of national
transport output.
The transport industry is the largest contributor to investment activity in Brisbane, with combined
public and private sector transport and storage projects accounting for $7.4 billion (53%) of total
project expenditure in the city6.
As Brisbane becomes further integrated into the global economy, transport and warehousing is
expected to grow in importance. Figure 2 shows that between 2001 and 2011 the transport sector
grew significantly faster than the rest of the economy.
4
Queensland Department of Treasury, Experimental GRP Estimates, 2013
Australian Bureau of Statistics, 2012
6 Deloitte Access Economics, Investment Monitor, June 2013
5
The resources boom played a major part in this growth, with 8.85 million tonnes of coal
transported by rail to the port of Brisbane in 2011-127. Though coal is primarily transported along
rail infrastructure, the majority of other freight (approximately 67% of Queensland’s total freight by
volume) uses the road network8.
The growth in international online shopping is also accelerating demand for transport and
warehousing. The Port of Brisbane has forecast that truck movements along Brisbane roads
could triple by 2031 alongside increases in container trade9. A further 17,600 employees will be
required for transport and distribution activities over the next 20 years10. Additionally the
application of innovative logistics will drive efficiency improvements in the sector.
There are significant economic benefits to the state economy from international trade and
globalisation, and Brisbane acts as the primary trade-city connecting Queensland to the rest of
the world. With the Port of Brisbane handling 13.6% of Australia’s container trade11, as well being
a major resources export hub, Brisbane’s Australia TradeCoast is one of the nation’s largest and
fastest growing trade districts.
AB Volvo Manufacturing
7
Port of Brisbane, 2012
Centre for Transport Energy and The Environment, 2011
9 Port of Brisbane, 2013
10 National Institute of Economic and Industry Research, 2009
11 Port of Brisbane, 2012
8
AB Volvo marked 40 years in Brisbane with the launch of its newest truck in Queen Street Mall in
May 2013. The Swedish Company began operations in 1972 and since then has produced more
than 47,000 trucks for the Australian transport industry.
The company’s Wacol factory employs 500 workers, including 60 engineers specifically employed
to design and test new components from scratch. In the last five years $25 million has been
invested into improving the plant, indicating a clear intention to continue production in Brisbane.
AB Volvo’s commitment to operating in Brisbane is a testament to the city’s capacity to support
world class manufacturing.
Australia Tradecoast
Port of Brisbane handles 50% of state international trade and 95% of all container cargo.
Brisbane Airport is the third busiest in Australia, averaging 5.4% annual passenger growth.
Business News
Asia Pacific Cities Summit 2013
‘Reshaping the Urbanomics of Cities’ will be the theme of the next Asia-Pacific Cities Summit,
to be held in Kaohsiung from 9-11 September.
Business matching activities present great opportunities for local businesses to connect with
potential customers and markets round the world.
For more information on the Summit, the business opportunities available, and how to register,
visit www.apcsummit.org or contact 133 BNE (263).
Lord Mayor’s Business Awards 2013
Now in their eighth year, the Lord Mayor’s Business Awards will be announced at the Annual
Gala Dinner on 11 October. These awards celebrate the enterprising and innovative business
leaders who have made a significant contribution to the growth of Brisbane’s economy.
For more information visit www.lmba.com.au or call 133 BNE (263).
Lord Mayor’s Business Forums
A series of free workshops held across Brisbane for businesses. Successful local business
entrepreneurs will provide valuable insights from their own experiences and offer practical tips to
help local businesses grow.
Brisbane City Council experts from a number of areas such as licensing, local laws, development
assessment, customer service and tendering for Council will also be available to discuss your
business needs.
For forum details visit www.brisbane.qld.gov.au/business or call 133 BNE (263).
Brisbane Recognised in [In]Sight Index
The Regional Australia Institute has launched a new index to identify the most competitive
regions in Australia across a broad range of indicators. Brisbane was recognised as the best local
government in Australia for supporting business, and also scored highly on economic
fundamentals and infrastructure.
For more information on the [In]Sight Index visit insightregionalaustralia.org.au
*The information in this newsletter provides general information on the Brisbane economy, and is
not intended to be relied upon for commercial decisions. While care is taken to ensure accuracy,
Council disclaims all liability for any expenses, losses, damages or costs you might incur as a
result of this content being inaccurate or incomplete.
** For more information, visit www.brisbane.qld.gov.au or email
economic_development@brisbane.qld.gov.au. To make a business-related enquiry, call Council’s
24 hour Brisbane Business Hotline on 133 BNE (133 263).