Alice Springs
E c on o mic Pro file
Map of Central Australia
Central Australia
Alice Springs Local Government Area
Source: Department of Business, Economic and Regional Development
Ta b l e o f C o n t e n t s
Table of Contents
1. Executive Summary.................................................................................... 1
Introduction................................................................................................... 1
Approach....................................................................................................... 1
Economic Environment................................................................................. 2
The Economy................................................................................................ 2
Conclusion.................................................................................................... 3
2.
Introduction................................................................................................. 4
3.
Macro Economy.......................................................................................... 5
3.1.
Economic Performance...................................................................... 5
3.2.
Investment.......................................................................................... 7
3.3. Australian Government Payments...................................................... 7
3.4.
Export................................................................................................. 8
3.5.
Population.......................................................................................... 9
3.6.
Workforce......................................................................................... 10
3.8.
Home Ownership.............................................................................. 15
3.8. Inflation............................................................................................. 15
4. Industry Sectors........................................................................................ 16
4.1.
Industry Sector Business Count....................................................... 16
4.2.
Firm Structure................................................................................... 17
4.3. Regional and Territory Economy – Alice Springs Contribution......... 19
5.
Alice Springs Business Survey............................................................... 21
Survey Results............................................................................................ 21
Methodology................................................................................................ 21
Descriptive Results..................................................................................... 23
Previous Business Performance................................................................. 25
Expectations................................................................................................ 27
Opportunities for Growth ............................................................................ 29
Outline
1. Executive Summary
Introduction
The Alice Springs Economic Profile tells, for the first time, the story of the Alice Springs
economy. The Alice Springs Economic Development Committee and the Department
of Business, Economic and Regional Development (DBERD) partnered to produce
this profile to provide the starting point for discussions between the community and the
Government about the future development of Alice Springs.
The profile, a project recognised under the Northern Territory Government and Charles
Darwin University Partnership Agreement, has demanded rigorous economic research
and analysis. Six months of data collation and analysis, from November 2007 until April
2008, has been required to ensure that the profile provides the most complete picture of
the Alice Springs economy as possible.
There are challenges with a project of this scale, one of which is being able to access
all the required data. Where gaps have been identified other possible sources of
information have been sought.
It is important to recognise that the profile is, first and foremost, a snapshot in time. The
lasting image it creates is that of an underlying confidence in the Alice Springs economy
and the firm expectation that this is to continue.
Approach
The development of this profile was a three-stage process.
The first stage involved undertaking a desktop search of economic information relevant
to Alice Springs from reputable sources.
The second stage was a major survey of Alice Springs businesses to determine the key
characteristics of their business and business performance. This included identifying
their expectations for the approaching 2008 trading year.
The final stage was to construct a narrative that brought all of the information together to
form a cohesive description of the economy, which includes not only surveyed data but
also draws upon Australian Government and administrative data sets.
Alice Springs Economic Profile
1
Executive Summary
Economic Environment
As with all economies, geography is a critical factor to consider. This is no different for Alice
Springs.
Alice Springs is a remote economy servicing a vast area of inland Australia, including parts
of Western Australia and South Australia.
It is a stand-alone economy in many senses, but even so, it is impacted on by national and
global markets.
During the development of the profile, the Reserve Bank of Australia lifted Australian interest
rates three times. This was further compounded by the considerable uncertainty on equity
markets driven by financial crisis in some key international economies.
The Economy
Alice Springs is a broad based economy, supported by a significant diversity in its industry
sectors. The top seven industries contributed approximately 52 per cent of the regional
output to Alice Springs.
This industry structure is generally a recipe for economic stability and recent history in Alice
Springs confirms this.
There are more than 1800 businesses in the town, with the majority being micro and small
business.
Government is a significant player through both administration and Defence.
Over 58 per cent of businesses were affected by seasonality. The strongest trading occurred
between July and September, and weakest trading between January and March.
Business at all levels and in all sectors reported considerable confidence for the 2008 trading
year and sales and profits are expected to rise. Seventy-nine per cent of businesses were
extremely or fairly confident of strong business prospects in 2008. Sixty one per cent of
businesses surveyed expect an increase in profitability in 2008. Seventy four per cent are
expecting an increase in sales, while fifty seven per cent are expecting to increase their
workforce. Fifty three per cent are expecting an increased wages bill while forty one per
cent are expecting to increase their prices. Thirty five per cent will increase their capital
expenditure.
There are key economic challenges for Alice Springs. One challenge is the ability to build a
workforce in a community which has seen a decline in both the population generally and in
the workforce specifically. There is a low unemployment rate, high labour force participation,
and a significant number of vacant positions at any one time. Even given these challenges,
businesses expectations are still positive.
The profile suggests however, that average wages in Alice Springs have not kept pace
with the rate of wage increases either in the Northern Territory or nationally. This is not an
uncommon challenge for regional economies, like Alice Springs, which are strongly based on
micro and small enterprises.
The only sustainable way to increase wages into the longer term is to build the productivity
of the business sector. As a relatively stable economy, Alice Springs provides a good
foundation to build on that over time.
Investment is a key to growth, competitiveness, sustainability and increasing productivity.
There is no direct data on investment flows in Alice Springs and clearly this is an area where
more work needs to be done to determine the strength or otherwise of those flows over time.
Alice Springs Economic Profile
2
Executive Summary
Anecdotal evidence suggests that there has been considerable investment at the business
level in recent times.
There are a number of new projects in ‘the pipeline’ that will add to the capacity of the region.
Some of these include •
Owen Springs Power Station – estimated $57m
•
Solar Cities – estimated $37m
•
Solar Demonstration Facility – estimated $2.55m
Conclusion
This profile is an important source of information on the Alice Springs economy and will be a
good reference point for the discussion about its economic future.
The outlook for Alice Springs is positive, though it is expected that there might be some
tempering of the very strong confidence levels as a result of global uncertainty, particularly for
those industries exposed to the external sector.
The diversity of the structure of the economy is a strong positive that brings stability and is a
precondition for long term investment.
There are some concerns surrounding the competitiveness of the labour market and as a
consequence, the number of workers that will be available.
The Alice Springs Economic Committee and DBERD wish to thank all those that participated
in this project and particularly the 374 business people who gave up their time to participate in
the business survey.
You have provided an invaluable insight into the business perspective.
Finally, we would welcome input about this profile.
The economic profile of Alice Springs suggests that Alice Springs has a stable, young
population with low unemployment, and high workforce participation. Home ownership
is on the rise.
Alice Springs contributes 11 per cent towards the Northern Territory Gross State
Product (GSP). The Central Australia region (minus Alice Springs) contribues an
additional six per cent to this total. The region’s economy is based on a broad base of
industries with high business confidence. Tax data suggests mean income levels are lower in Alice Springs than the Northern
Territory average. While businesses are expecting an increase in their profitability,
prices charged, work force and value of sales, they are not expecting to increase their
capital expenditure expenditure to the same degree.
To provide feedback about this
profile please contact:
Department of Business, Economic
and Regional Development
T: (08) 8951 8524
F: (08) 8951 8533
Alice Springs in this report relates to the
Australian Bureau of Statistics geography
of Alice Springs (T) Local Government
Area. Reference to the Central Australia
includes the central region minus Alice
Springs (T) Local Government Area.
Alice Springs Economic Profile
E: TBCAlice.DBERD@nt.gov.au
A: Peter Sitzler Building
67 North Stuart Highway
Alice Springs NT 0870
3
Introduction
2. Introduction
2.1
Nature of the Project
The Alice Springs Economic Profile (the profile) is a key project of the Alice Springs
Economic Development Committee and a component of the Stronger Regions
Schedule of the Northern Territory Government / Charles Darwin University
Partnership.
The profile has been developed in three stages:
•
Firstly, identification of all available economic data sources, i.e. Australian
Bureau of Statistics (ABS), Australian Tax Office (ATO) data, Centrelink and other
administrative data that is relevant for the region.
•
Secondly, a data collection phase was undertaken in November 2007 (Alice
Springs business survey) involving a survey of 374 Alice Springs businesses.
•
Finally, the profile is a combined analysis of various data sources (including the
business survey) to present the economic structure, economic performance,
economic drivers and flows and general economic activity in Alice Springs.
The purpose of the Alice Springs Economic Profile is to:
•
Provide economic base line data for future discussion
•
Provide a comprehensive picture of the uniqueness of the economy of the Alice
Springs region (Local Government Area)
•
Understand the features that interplay in Alice Springs
•
Engage the community for future planning
•
Drive development of regional economies
•
Develop policies based on evidence
•
Provide a brief understanding of the economic fundamentals
•
Identify the economic drivers
•
Investigate opportunities and choices for producing sustainable outcomes.
Alice Springs Economic Profile
4
The Macro Economy
3. The Macro Economy
This section comprises an economic profile of Alice Springs, with macro-economic
information followed by sector contributions and business performance/confidence.
The macro economic information presented here concentrates on the key parameters of
the Alice Springs economy. These parameters include: economic performance; investment;
exports; workforce; population; productivity; labour; home ownership and inflation.
3.1. Economic Performance
•
Northern Territory growth has averaged approximately 3.8 per cent over the past five
years and is expected to average 6.6 per cent in the next year (2008-09), driven by
strong investment in the resource sectors.
•
The Alice Springs economy is approximately 11 per cent of the Northern Territory economy,
and its gross regional product (GRP) increased by 35 per cent from 1996 to 2006.
•
Alice Springs contribution to the Northern Territory economy declined marginally from
12.5 per cent to 11 per cent over the 1996 – 2006 period; however, the size of the
Northern Territory gross state product (GSP) grew from $8 776 billion to $13 405 billion
during this period.
•
In the same period the contribution of Central Australia (excluding Alice Springs) to the
Northern Territory economy has remained steady however over the decade there has
been a decline of 2 per cent from 2001 to 2006.
Table 1- Gross State Product
GRP Alice Springs
GRP Central Australia
GSP Northern Territory
$M
$M
$M
1996
1098
522
8776
2001
1284
857
11 425
2006
1478
824
13 405
Year
Source – DBERD estimates and ABS cat 5206.0
Graph 1 - Contribution of the Northern Territory to the Australian Gross Domestic Product
(GDP) and the Alice Springs (T) and Central Australia to the Territory Gross State
Product (GSP).
14.0
NT GSP to GDP
GRP Cent AUst to GSP
12.0
GRP AS to GSP
Percentage
10.0
8.0
6.0
4.0
2.0
0.0
1996
2001
Years
2006
Source – DBERD
Northern Territory performance has grown, while the Alice Springs relative share of the Northern
Territory GSP has declined since 1996.
Alice Springs Economic Profile
5
The Macro Economy
•
The top seven industries contributed approximately 52 per cent of regional
product towards Alice Springs economy. The value of contribution by these top
seven industries is:
Table 2 - Top Seven Industries
Industry
Regional contribution
AS ( Value ($M))
No of businesses
M
Government administration
143.21
(a)
L
Property and business services
132.35
444
O
Health and community services
120.79
78
E
Construction
120.59
378
B
Mining
91.27
0
N
Education
85.72
24
C
Manufacturing
78.04
60
Top seven industries total
771.97
984
Source: ABS, cat 8165.0, June 2003-2007, DBERD estimates.
(a) The ABS does not collect data for the Government administration and Defence sector based on number of
businesses. 93 Industry classifications are applied for this data set.
•
The next ten industries (see Table 14) contributed 31 per cent towards the Alice
Springs GRP and 3.5 per cent towards the Northern Territory GSP.
Graph 2 – Gross Regional Contribution by Sector
Top 7
Next 10
$160
$140
$120
Millions
$100
$80
$60
$40
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Source: ABS, cat 5220.0 and 5206.0, DBERD derived methodology
The ABS does not collect data for the Government administration and Defence sectors.
Alice Springs Economic Profile
6
The Macro Economy
3.2. Investment
•
Investment is a major driver of any economy; though measures of investment
flows are not available for Alice Springs.
•
The broad base of the Alice Springs economy, however, provides the foundations
for regular flows of private investment, particularly when confidence is high.
•
The business survey used to develop this profile recorded very high confidence
levels, and while that is only one snapshot in time, businesses are anticipating
and have been preparing for a growth in sales and, importantly, a growth in
profits.
•
This suggests that private investment decisions will continue to drive the
economy. Some examples of private and public investment include:
xx
Olympia resources – Abrasives project near Harts Range 170 kilometres near
north east of Alice Springs
xx
Thor Mining – Molyhil Molybdenum / Tungsten project 220 kilometres north
east of Alice Springs
xx
Owen Springs Power Station
xx
Desert Knowledge Australia - construction of Desert People’s Centre.
Over recent months, major Indigenous construction activity has included:
xx
Imparja building
xx
Yeperenye Centre Extensions
xx
CLC Building (under construction)
Table 3 - Value of Private and Public Investment in Alice Springs
Year
Est Value
Northern Territory
Government Investment
$M
Est Value
Private Investment
$M
Total Investment
$M
2007
45.7
17.1
62.8
2006
27.1
32.1
59.2
2005
52.2
26.9
79.1
2004
22.2
2.4
24.6
2003
5.7
2
7.7
Source – DBERD
3.3. Australian Government Payments
An important injection into the regional economy is payments by the Australian
Government. There is no publically available data on the value of those flows;
however as at March 2008 there were 14 101 Centrelink and Job Network clients
in the Alice Springs and Central Australia regions (5743 Job Network and 8438
Centrelink recipients).
Alice Springs Economic Profile
7
The Macro Economy
3.4. Export
•
The Northern Territory relies heavily on international exports, especially for its
resources (mining and petroleum) and cattle trade.
•
Unfortunately, point of origin data on exports is not available. Future profiles will
include work in this area but on this occasion the information is limited to key facts
about the Northern Territory.
•
Northern Territory exports accounted for $4.1 billion (Table 4).
•
The effect of the decline in oil production in early 2000 saw a decline in Northern
Territory exports on top of a downturn in international tourism in the Northern
Territory in the same period. More recently exports have rebounded strongly on
the back of mineral and gas exports which is off setting the decline in Northern
Territory oil production. In 2007-08, the value of mineral fuel exports is estimated
to decrease by 7 per cent to $1.7 billion, to which LNG contributes $1.4 billion.
•
The live cattle export trade and the sale of cattle in interstate markets dominates
agricultural production in the Northern Territory. There are approximately 1.8 million
cattle in the Northern Territory and the gross value of production in the cattle
industry was $192.6 million in 2006 to 2007. The number of live cattle exported in
2007 was 321 151, at a value of $204.4 million (source: NT at a Glance).
The live cattle export market and demand for cattle in interstate markets are
forecasted to remain steady.
•
The Alice Springs region is resource-rich, predominantly for gold, silver, uranium
and other non-metallic minerals (barite, crushed rock, gravel, and other resources).
International demand for the Territory’s resources is on the rise. The value of
Northern Territory ore exports increased by 26 per cent to an estimated $2.2 billion
in 2007-08.
•
The strong Australian dollar and competitive fares have also accelerated tourist
numbers from the Northern Territory and this sector has been growing in recent
years. Each year about 465 000 tourists visit Alice Springs, MacDonnell and
Petermann, worth over $313 million per year to the accommodation industry.
Table 4 - Exports for Northern Territory
Year
NT $M
NT % Yearly increases/
decreases
Five year growth rate
(%)
1996
1205
8.4
2001
3476
-16.7
188.5
2006
3617
56.4
4.1
March 2008
4105*
3.7
13.5#
Source: ABS Catalogue Number 5368.0
* Total NT exports value ($M) for the 12 months to March 2008
#
Growth since December 2007
Alice Springs Economic Profile
8
The Macro Economy
3.5. Population
•
Based on Census figures, the population of Alice Springs fell by 6.1 percent from
28 178 in 2001 to 26 472 in 2006. The preliminary 2007 population estimate for
Alice Springs (T) is 26 305. Forward estimates suggest there will be growth in
population from 2011 (Table 5).
•
There has been some growth in the Indigenous population but this has been
countered by a significant fall in the non-Indigenous population.
•
The population decline is also reflected in the unemployment figures (i.e.
unemployment has declined).
•
At the macro-economic level, a current and future challenge will be to maintain a
larger population to meet the workforce demand.
Table 5 – Time Series Population and Forward Estimates for Indigenous and NonIndigenous Population – Alice Springs and Central Australia.
Census years
Forward estimates
1996
2001
2006
2011
2016
2021
27 092
28 178
26 472
26 572
27 095
27 610
4103
4542
5158
5757
6442
7209
21 849
22 237
20 341
20 896
21 451
22 006
Overseas visitors
1140
1399
917
n/a
n/a
n/a
TOTAL (c)
Central Australia
14 052
14 705
14 320
14 631
15 834
17 025
Indigenous (b)
8516
9050
9300
9713
10 147
10 600
Non-Indigenous (b)
4194
4376
3596
3696
3796
3896
Overseas visitors
1343
1278
1429
n/a
n/a
n/a
TOTAL(a)
ALICE SPRINGS (T) LGA
Indigenous (b)
Non-Indigenous (b)
Source: 2006 Census of Population and Housing and ABS Cat no 3222.7 Series B, (a) Totals based on Census
counts and will not add up (Indigenous and non-Indigenous). (b) Treasury estimates (c) Central Statistical Sub
Division minus Alice Springs LGA equals Central Australia.
n/a Not available
Alice Springs Economic Profile
9
The Macro Economy
3.6. Workforce
3.6.1.Workforce – based on number of workers in Alice Springs
•
The number of workers in Alice Springs has fallen as would be expected with the
decline in population from 2001-2006; though the fall is only 3.4 per cent or just
under half of the shift in population – this suggests an increase in the participation
rate in the economy over this period
•
Alice Springs has one of the lowest official unemployment rates in Australia. At
only 2.7 per cent, there are considerable job vacancies and strategies need to be
implemented to bolster the number of workers available to industry and business.
Table 6 -Time Series Labour Force Data for Alice Springs and Northern Territory
Census figures
Central Australia
(excludes Alice
Springs)
Alice Springs
Northern Territory
1996
2001
2006
1996
2001
2006
1996
2001
2006
TOTAL LABOUR
FORCE
13 438
13 912
13 257
4389
4359
4230
89 603
96 148
98 401
Employed
12 771
13 342
12 897
4006
4132
3761
82 976
90 434
94 195
Unemployed
654
571
360
396
226
469
6627
5714
4206
Unemployment rate
4.9
4.1
2.7
9.02
5.18
11.09
7.4
5.9
4.3
Participation rate
69
67.9
66.7
46.8
44.0
43.6
63.4
62.6
60.6
Source: 2006 Census of Population and Housing (Alice Springs (T) LGA) - Time Series Profile. Enumerated data.
3.6.2.Workforce - Job vacancies
Job vacancies is one possible surrogate measure of workforce data.
•
Advertised job vacancies in Alice Springs grew by 32 per cent in 2005-06 (Table 7).
•
Advertised job vacancies for government jobs have increased to 5100 for the
Northern Territory and 1114 for Alice Springs in 2005-06. Vacancies for government
positions in previous years has been very low.
Table 7 - Job Vacancy data
Area
2004-05
2005-06
Growth (%)
Northern Territory
15 502
18 308
18
Alice Springs
2827
3737
32
Source: Information provided by the Department of Education, Employment and Training.
Alice Springs Economic Profile
10
The Macro Economy
3.6.3.Workforce – based on number of hours worked
The government sector is the most notable based on number of hours worked.
•
Alice Springs had the highest percentage of people employed in
government/Defence (15.8 per cent) (based on numbers of hours worked) with
the majority working 40 hours per week.
•
The Northern Territory was also high in this sector (government/Defence), at
21.6 per cent with the majority working 35-39 hours. •
In comparison, the proportion of people Australia-wide engaged in this sector
was only 6.7 per cent, with the majority also working between 35-39 hours.
3.6.4.Workforce – Industry by employment
1996 Census
Persons
2001 Census
Persons
2006 Census
Persons
Public administration and safety
1343
1634
1975
Health care and social assistance
1630
1645
1638
Retail trade
1370
1454
1367
Education and training
1026
1208
1236
Accommodation and food services
1060
1178
1005
Professional, scientific and technical services
744
609
872
Construction
860
971
850
Transport, postal and warehousing
715
725
608
Other services
660
686
594
Manufacturing
445
521
549
Administrative and support services
411
481
397
Arts and recreation services
359
409
340
Wholesale trade
403
448
304
Inadequately described/Not stated
461
307
303
Rental, hiring and real estate services
215
234
220
Information media and telecommunications
456
286
211
Financial and insurance services
236
181
184
Agriculture, forestry and fishing
129
148
106
Electricity, gas, water and waste services
162
149
81
Mining
94
65
55
Source – Alice Springs (T) LGA 2006, Census of Population and Housing.
Domestic
Service
Export
Alice Springs Economic Profile
11
The Macro Economy
3.6.5.Wages and Salaries
•
Historically, average earnings in the Northern Territory have been above the
Australian average largely due to a combination of factors including the a high
percentage of employees in the public sector and mining sector as well as
employers compensating employees with higher wages and airfares for the
higher cost of living in the Northern Territory.
•
The impact of these factors has, however, diminished over time (based on
average weekly earnings data in Table 8), mainly due to the broadening of the
Northern Territory employment base, decreasing the difference between Northern
Territory and Australian wages (see Table 8).
•
Average weekly earnings data for Alice Springs is not available. A close measure
is mean taxable income which has been used below (see Table 9).
•
When comparing Northern Territory and Alice Springs average taxable incomes,
Northern Territory average taxable incomes are much higher ($45 816 per
annum) than in Alice Springs ($41 594 per annum) (Table 9).
Table 8 – Average Weekly Earnings
Average Weekly
Earnings original
(Nov 2007)
Full-time Employees
ordinary time earnings
$
Full time adult total
earnings
$
All employee total
earnings
$
Northern Territory
1068.20
1115.90
881.40
Australia
1108.50
1160.00
875.80
Source ABS 6302.0 Average weekly earnings (November 2007)
Table 9 – Mean Taxable Income
Non-taxable
individuals
Taxable
individuals
Taxable income
(excluding losses)
Mean taxable
income
0870
1800
9960
429 614 324
43 134
0872
2330
2195
75 959 205
34 606
Alice Springs Region
4130
12 155
505 573 529
41 594
18 395
81 395
3 729 176 712
45 816
Postcode1
NT Total
Source – Taxation statistics 2004-05 (ATO data)
Alice Springs Economic Profile
12
The Macro Economy
3.6.6.Unemployment levels
•
Alice Springs has one of the lowest official unemployment rates in Australia at 2.7
per cent (Table 6).
•
There has been a 32 per cent increase in job vacancies in Alice Springs,
indicating that there are considerable vacancies at any single point in time (see
Table 7).
•
This is not an unexpected result, but given the decline in population during the last
Census period, and the strength of the economy more broadly, strategies need
to be implemented to increase the number of workers available to industry and
business.
•
Even though the overall unemployment rate is low in Alice Springs compared
to the Northern Territory, when examining the Indigenous and non-Indigenous
population breakdown within Alice Springs, the unemployment rate is 8.4 per
cent (Table 10) higher in the Indigenous population than in the non-Indigenous
population. This statistic is based on 2006 Census figures (usual residents).
•
While the Indigenous population is growing at a faster rate than the nonIndigenous population, the socio-economic challenges faced by higher
proportions of Indigenous populations are highlighted below in Table 10.
Improving these outcomes will be a continued challenge while maintaining and
improving Alice Springs economic performance.
Alice Springs Economic Profile
13
The Macro Economy
Table 10 - Socio - Economic Breakdown
Alice Springs (T) (LGA) – 2006 Census
Central Australia
Indigenous
NonIndigenous
Total (a)
Indigenous
NonIndigenous
Total (a)
% Unemployment (b)
10.1
1.7
2.5
7.3
0.5
13.59
% Labour force
participation (c)
41.2
82.2
69.6
30.2
87.5
42.58
% Employment to
population (d)
37.1
80.8
67.8
22.9
87.1
36.79
Industry sector (e)
Government
390
2760
3169
683
258
941
Private
653
8362
9089
631
1196
1827
CDEP participants (f)
103
0
103
918
12
930
Self employed (g)
20
575
595
1
21
22
Median age
23
35
33
23
33
25
Median individual
incomes ($/weekly)
248
725
658
207
721
227
Median rent ($/weekly)
127
190
180
30
70
30
Average household size
3.4
2.5
2.6
6
2
4
Source 2006 Census data, place of usual residence
(a) Totals will not add up to Indigenous plus non-Indigenous
(b) The number of unemployed persons expressed as a percentage of total labour force
(c) The number of persons in labour force expressed as a percentage of persons aged 15 years and over
(d) The number of persons employed expressed as a percentage of persons aged 15 years and over
(e) Applicable to persons aged 15 years and over
(f) Community development employment projects (CDEP) participants are counted as employed persons. Data collected from ABS Census interview household forms used in discreet Indigenous communities
(g) Comprises owner managers of unincorporated enterprises with nil employees.
3.6.7.Productivity and Labour
•
Productivity is an important measure of an economy however no productivity data is
currently available at the Alice Springs level. More work needs to be undertaken in this
area to acquire regional information about productivity.
•
However, the survey of businesses (below) indicated the following results based on
future expectations.
•
xx
74 per cent expect an increase in value of sales
xx
57 per cent expect an increase in size of workforce
xx
53 per cent expect an increase in wages bill
xx
41 per cent expect an increase in prices charged
xx
61 per cent expect profit to increase
xx
35 per cent will increase their capital expenditure.
It is likely that if businesses were to increase capital investment that this may result in
smarter and more efficient business practices thus increasing productivity.
Alice Springs Economic Profile
14
The Macro Economy
3.7. Home Ownership
•
Home ownership is based on the number of dwellings fully owned and being
purchased. Census data indicates home ownership is on the rise.
•
Over the decade to 2006 home ownership has increased in Alice Springs by
28 per cent.
•
However it should be noted that there has been a significant drop in fully owned
dwellings which goes hand in hand with the decline in population of Alice Springs, but
the number of dwellings being purchased has increased by 43 per cent over this same
period. This indicates higher disposable incomes as a result of low unemployment and
high workforce participation.
•
Further, there has been a 19 per cent drop in the number of people renting properties
in Alice Springs, demonstrating that people with disposable incomes are seeking to
purchase dwellings rather than pay rent.
•
This suggests a degree of confidence in the strengthening of the housing sector. Table 11 – Median Housing Payments
Alice Springs
Northern Territory
1996
2001
2006
1996
2001
2006
Median housing loan payments (monthly)
867
953
1300
867
1000
1300
Median rent (weekly)
125
150
180
100
110
140
Source: 2006 Time Series Profile for Alice Springs and the Northern Territory
3.8. Inflation
•
The cost of a basket of goods in Alice Springs was $167.80 (December 2007),
representing an increase of 0.9 per cent over the year. This is $6.79 cheaper
than Mt Isa, a town similar in population size to Alice Springs, and $7.88 cheaper
(4.5 per cent) than Darwin.
•
Generally grocery prices are cheaper in Alice Springs than in Darwin, particularly for
perishables, reflecting the proximity to southern supply centres.
•
The data is based on the Grocery Price Survey (December 2007) undertaken by the
Northern Territory Treasury. ABS does not produce a consumer price index for Alice
Springs.
•
Prices for fruit/vegetables and meat/seafood together make up around one-third of
the cost of the basket. These commodities are also highly volatile, reflecting variations
in seasonal and other factors affecting supply. Such variations in prices in these
categories can have a substantial impact on the overall cost of the basket in any
survey period.
•
The composition of the basket of goods in Alice Springs is made up of 79.9 per cent
food and 20.1 per cent of household supplies and pet food.
•
The composition of the basket of goods in Darwin is 80.2 per cent food and
19.8 per cent of household supplies and pet food.
•
The cost of Alice Springs basket of goods has been lower than Darwin consistently for
the last few years. This trend is expected to continue.
Alice Springs Economic Profile
15
Alice Springs Industry Sectors
4. Alice Springs Industry Sectors
The following information features industry sectoral contributions to the Alice Springs
economy.
4.1. Industry Sector Business Count
•
This document has used the Australian and New Zealand Standard Industry
Classification (ANZSIC 1993 or 2006).
•
The data shows the Alice Springs economy has a relatively wide industry base.
The top seven industry sectors by business count are:
1.
2.
3.
4.
5.
6.
7.
Property and business services
Construction Retail trade
Transport and storage
Finance and insurance
Cultural and recreation services Health and community services 24%
21%
16%
7%
6%
5%
4%
Together these amount to some 83 per cent of businesses.
•
Alice Springs has a broad industry base, which is dominated by the infrastructure
and service industries. It contributes an estimated 11 per cent towards the
Northern Territory GSP. In addition Central Australia contributes six per cent,
bringing the regional contribution to Northern Territory GSP to 17 per cent.
•
Alice Springs’ economy is dominated by property and business services
(444) based on the number of businesses operating in this sector. This sector
contributes nine per cent of regional product into the Alice Springs economy.
•
This sector includes businesses engaged in renting and leasing assets as well as
units engaged in providing a wide variety of business services.
Alice Springs Economic Profile
16
Alice Springs Industry Sectors
Table 12 – Industry Sector by Business Numbers
*
L
E
G
I
K
P
O
H
A
C
F
Q
N
J
B
D
Industry Classification
Property and business
services
Construction
Retail trade
Transport and storage
Finance and insurance
Cultural and recreational
services
Health and community
services
Accommodation, cafes and
restaurants
Agriculture, forestry and fishing
Manufacturing
Wholesale trade
Personal and other services
Education
Communication services
Mining
Electricity, gas and water
supply
TOTAL
Number of
businesses by
industry
Percentage of Alice
Springs total
444
24%
378
294
129
105
21%
16%
7%
6%
96
5%
78
4%
66
4%
66
60
39
33
24
9
0
4%
3%
2%
2%
1%
0%
0%
0
0%
1821
100%
Source: ABS, Counts of Australian Businesses, including Entries and Exits, June 2003 to June 2007.
*93 industry classifications are applied for this data set. The ABS does not collect data for the Government
administration and Defence sector.
4.2. Firm Structure
The Alice Springs business sector is characterised by five firm structures. They are:
Non-employing
Micro
Small
Medium
Large
Sole trader/owner-operator
less than 5 employees
5 - 19 employees
20 to 200 employees
200 plus employees
The Alice Springs business landscape is dominated by non-employing, micro and small businesses.
Graph 6 – Alice Springs Business Structure
66 medium businesses, 4% of total
3 large businesses, 0% of total
267 small businesses,15% of total
414 micro businesses, 23% of total
1071 non-employing businesses, 58% of total
Alice Springs Economic Profile
17
Alice Springs Industry Sectors
Graph 7 – Firm Structure by Industry Breakdown for Alice Springs Businesses
100%
80%
60%
40%
20%
H
de
tra
ag
sa
le
or
st
W
ho
le
d
an
rt
Pr
ea
op
er
ty
Tr
a
ns
po
si
bu
d
an
e
de
ra
ai
lt
et
R
se
rv
ic
e
s
s
vi
ce
ne
he
ot
d
an
al
on
rs
Pe
ss
M
rs
er
ic
e
ity
un
m
m
co
d
lth
an
in
in
g
s
e
rv
se
su
in
d
an
e
nc
na
Fi
ty
ci
Small
tri
ec
El
ra
pp
su
er
at
w
d
an
s
ga
m
om
C
nc
ly
io
n
at
io
n
ct
C
on
Ed
uc
s
st
ru
rv
se
n
ic
un
s
fe
ca
io
at
d
an
M
n
io
at
od
m
Micro
Ac
co
m
ic
e
nt
ra
st
re
uf
an
au
rin
tu
ac
er
ls
na
tio
ea
cr
re
nd
la
ra
tu
ul
g
s
vi
ce
hi
ng
fis
d
an
ry
st
re
fo
re
tu
ul
ric
C
Ag
s
0%
Non employing
Medium
Large
Source: ABS, Counts of Australian Businesses, including Entries and Exits, June 2003 to June 2007. The ABS does not collect
data for the Government administration and Defence sectors.
Top Industries
The top five non-employing businesses include:
‚‚
‚‚
‚‚
‚‚
‚‚
Personal and other services
Construction
Retail trade
Transport and storage
Finance and insurance
The top five small businesses include:
‚‚
‚‚
‚‚
‚‚
‚‚
‚‚
Retail trade
Construction
Property and business services
Accommodation, cafes and
restaurants
Manufacturing
Wholesale trade
The top five micro businesses include:
‚‚
‚‚
‚‚
‚‚
‚‚
Retail trade
Property and business services
Construction
Accommodation, cafes and restaurants
Health and community
The common top three non-employing,
micro and small businesses include:
‚‚ Retail trade
‚‚ Property and business services
‚‚ Construction
Alice Springs Economic Profile
18
Alice Springs Industry Sectors
4.3. Regional and Territory Economy – Alice Springs Contribution
•
The top seven industries contributed approximately 52 per cent of regional
product towards the Alice Springs economy. The value of contribution by these top
seven industries is:
Table 13 – Top Seven Industries
Industry
Regional contribution
AS ( Value ($M))
No of businesses
M
Government administration
143.21
(a)
L
Property and business services
132.35
444
O
Health and community services
120.79
78
E
Construction
120.59
378
B
Mining
91.27
0
N
Education
85.72
24
C
Manufacturing
78.04
60
Top seven industries total
771.97
984
Source: ABS Catalogue 8165.0 and DBERD derived estimates
(a) The ABS does not collect data for the Government administration and Defence sector based on number of businesses.
•
The value of contribution by these top seven industries is not reflective of the
contribution made by the top seven industry sectors by business count which
is: property and business services (444), construction (378), retail trade (294),
transport and storage (129), finance and insurance (105), cultural and recreation
services (96) and health and community services (78).
•
While retail trade is the third largest sector in terms of number of businesses and
levels of employment, it only contributes an estimated five per cent towards the
Alice Springs economy.
•
The next ten industries (see Table 12) contributed 31 per cent towards the Alice
Springs GRP and 3.5 per cent towards the Northern Territory GSP.
Alice Springs Economic Profile
19
Alice Springs Industry Sectors
Table 14 – Industry by Output (Contribution to Economy)
2007
Gross
Regional
Contribution
AS
Gross Regional
Contribution
Central
Australia
NT GSP
Value ($M)
%
Value ($M)
%
Value
($M)
%
M
Government
administration (a)
143.21
9.69
58
7.01
1039
8.17
L
Property and business
services
132.35
8.95
9
1.15
964
7.58
O
Health and community
services
120.79
8.17
34
4.14
706
5.55
E
Construction
120.59
8.16
17
2.12
985
7.74
B
Mining
91.27
6.12
461
55.96
3284
25.81
N
Education
85.72
5.8
17
2.11
541
4.25
C
Manufacturing
78.04
5.28
11
1.31
719
5.65
Top 7 industries
771.97
52.0
607
73.80
8238
64.75
I
Transport and storage
72.81
4.92
16
1.95
554
4.35
G
Retail trade
71.94
4.87
10
1.27
551
4.33
J
Communication services
68.25
4.62
8
0.98
273
2.15
H
Accommodation, cafes
and restaurants
66.03
4.47
33
3.99
329
2.59
Q
Personal and other
services
43
2.91
7
0.86
278
2.18
K
Finance and insurance
34.46
2.33
5
0.66
297
2.33
D
Electricity, gas and water
supply
31.28
2.11
7
0.89
167
1.31
F
Wholesale trade
29.83
2.02
2
0.26
265
2.08
P
Cultural and recreational
services
26.55
1.8
5
0.63
203
1.6
A
Agriculture, forestry and
fishing
12.3
0.83
29
3.55
301
2.37
Balance of other industries
456.45
30.88
122
15.0
3218
25.29
Ownership of dwellings
175.04
11.84
50
6.03
1268
9.97
All industries
1403.46
94.89
779
94.87
12724
100
Taxes less subsidies on
products
72
4.86
40
4.86
652
n/a
Statistical discrepancy
3.2
0.22
2
0.22
29
n/a
GSP (current dollar)(b)
1478.57
100
824
100
13405
n/a
Source: ABS CAT 5220.0 and 5206 as well as DBERD derived methodology
(a) The ABS does not collect data for the Government administration and Defence sector based on number of businesses.
(b) Rounding will impact totals.
Alice Springs Economic Profile
20
Alice Springs Business Survey
Alice Springs Business Survey
Survey Results
The Alice Springs Business Survey (the survey) was undertaken to determine the key
characteristics of business performance and business expectations in Alice Springs. A brief
overview of the survey is outlined below.
The results obtained from the survey are included in this section.
Methodology
The survey was conducted in November 2007. The survey covered four key areas:
• descriptive - such as industry, business turnover and number of employees
• business performance - confidence and opportunities
• business linkages - linkages by suppliers and market conditions by industry
• business assistance - what, if anything, is required from the Northern Territory
Government to assist businesses.
The survey was the first of its kind for the Alice Springs region. Data sourced from the ABS
was used to develop a survey sample (reference ABS electronic data related to ABS catalogue
8165.0 data available by postcode).
Prior to conducting the survey a sample survey was tested using the Alice Springs Economic
Development Committee. This provided the opportunity to test that the questions were easily
understood and that the survey could be completed within 30 minutes.
The survey did not require people to identify themselves or their business in anyway and as
such the anonymity of survey participants was ensured.
The preferred method of conducting the survey was face-to-face. Where this was not possible
people were asked to contact the Department and speak to a consultant or complete the form
and return it to the DBERD Alice Springs office. A total of 374 surveys were completed from
the 600 businesses that were visited.
Students from Charles Darwin University and Northern Territory Government staff conducted
the survey and were required to complete and adhere to confidentiality agreements.
The results of the survey have been categorised into micro, small, medium and large business
structures.
•
•
•
•
Micro - less than 5 employees. Small - 5 to 19 employees.
Medium - 20 to 200 employees
Large - 200 plus employees.
Alice Springs Economic Profile
21
The Macro Economy
Number of Businesses - Alice Springs Survey
Alice Springs Business Survey
Micro
Small
Medium
Large
Grand Total
Accommodation and food services
12
16
9
3
39
Administrative and support services
3
0
3
0
7
Arts and recreational services
4
5
5
0
14
Construction
0
12
7
0
20
Education and training
5
3
9
0
18
Electricity, gas, water and waste services
0
3
0
0
4
Finance and insurance services
6
7
0
0
14
Health care and social assistance
8
6
3
0
17
Information media and telecommunications
3
4
4
0
11
Manufacturing
9
4
0
0
14
Mining
0
0
0
0
1
Other services
6
6
3
0
15
Professional, scientific and technical services
10
7
4
0
21
Public administration and safety
0
0
3
0
4
Rental, hiring and real estate services
3
5
3
0
12
Retail trade
62
59
11
0
132
Transport, postal and warehousing
3
6
6
0
16
Wholesale trade
10
3
3
0
15
Grand Total
145
148
74
7
374
Source – DBERD Alice Springs Business Survey, November 2007.
Note – small numbers have been rounded to zero or three, but included in totals.
Alice Springs Economic Profile
22
Alice Springs Business Survey
Descriptive Results
Small businesses
Small businesses made up 40 per cent of all business
surveyed. Together with micro businesses they
contributed to 79 per cent of all businesses surveyed.
• The majority of these businesses were operated by
managers (58 per cent) with 38 per cent identifying
themselves as owners
• A large proportion of small businesses were also
locally owned (70 per cent)
• 65 per cent of the small businesses have been
operating more than 10 years
Overall
• The majority have an annual turnover of between
• The composition of Alice Springs businesses is as
follows -
‚‚
‚‚
‚‚
‚‚
•
•
•
•
• 1 per cent were in the $20 million category
• 5 per cent of these businesses indicated they were
39 per cent micro business
Indigenous.
40 per cent small business
20 per cent medium business
Medium businesses
2 per cent large business
55 per cent of survey respondents were managers
43 per cent of survey respondents were owners
69 per cent of businesses were locally owned
7 per cent of businesses surveyed were
Indigenous
• 60 per cent of businesses have been operating for
more than 10 years
• 40 per cent of businesses employed between
5 – 19 staff
• Two main categories of turn-over were identified –
‚‚ 24 per cent of business turnover was between
$1 000 and $250 000
‚‚ 24 per cent was between $2 million and $20
million.
Micro businesses
Micro businesses predominantly operate in the
retail trade sector (43 per cent). The following
characteristics were identified in the survey -
• 42 per cent have been in business for more than
10 years
• 63 per cent were owner-operator
• 86 per cent were locally owned
• The majority of micro businesses have an annual
turnover bracket of up to $250 000 a year
• 85 per cent employ between two and four
employees.
$501 000 and $2.5 million
Medium businesses made up 20 per cent of businesses
in the survey.
• They are scattered over retail trade, education and
training and accommodation and food services
sectors
• The majority of the people surveyed identified
themselves as managers in the business (81 per
cent) as compared with only 16 per cent owners
• 42 per cent of businesses were part of a national
organisation whereas 39 per cent were locally owned
• 85 per cent of these businesses have been
operating for more than 10 years (85 per cent)
followed by 12 per cent in the 5-10 year bracket
• 88 per cent employ between 20 and 99 employees,
while only 12 per cent employ 100 -100 employees
• Nearly 80 per cent of business surveyed had a
turnover of over $2 million, and of these 62 per cent
were between the $2 - $20 million ranges. Only
4 per cent of business surveyed reported their
turnover between $100 000 to $1 million.
Large businesses
Large businesses who participated in the survey were
all represented by managers.
• The organisations were predominantly part of a
national organisation
• They had mainly been operating for more than ten
years
• 86 per cent of these large businesses had a
turnover of more than $20 million.
Alice Springs Economic Profile
23
Alice Springs Business Survey
The survey found that in Alice Springs, business
confidence is high. This is further supported by
Sensis© Business Index, February 2008, which
indicated that Northern Territory recorded the highest
business confidence of all states and territories.
• While global uncertainty is volatile, the confidence
of Alice Springs businesses still suggests a healthy
outlook for the region.
• Three key aspects which influence business
expectations are:
‚‚ previous business performance
‚‚ future expectations
‚‚ business confidence.
Business Confidence over the next
twelve months
• Overall 79 per cent of businesses surveyed
indicated they were extremely or fairly confident of
business prospects over the next twelve months.
• Micro - 73 per cent of businesses identified they
were confident of business prospects over the next
twelve months.
• Over the next twelve months, 81 per cent of the
small businesses surveyed are confident of their
overall business prospects.
• Close to 90 per cent of the medium businesses
are confident of their future business prospects
• 85 percent of the large businesses are extremely
or fairly confident of their future business
prospects.
Main industries captured by the survey were:
‚‚
‚‚
‚‚
‚‚
retail trade
accommodation and food services
professional, scientific and technical services
construction, education and training, and health
care and social assistance.
This is in line with ABS and ATO published data.
Seasonality
• Overall 58 per cent of business surveyed said
they were affected by seasonality. The strongest
trading occurs during July to September and
weakest trading during January to March.
• 57 per cent of micro business surveyed were
affected by seasonality. Their weakest trading
period being January to March and strongest
being July to September.
• 59 per cent of small businesses surveyed were
affected by seasonality. Their weakest trading
period being January to March and strongest
being July to September.
• Seasonality affected 58 per cent of medium
businesses. While July to September was the
strongest trading months, January to March was
weakest.
• 71 per cent of large businesses is affected by
seasonality. Their major trading months were April
to September and worst were January to March.
Main Industries
• Micro businesses - retail trade sector (43 per cent)
• Small businesses - retail trade (40 per cent),
accommodation and food services (11 per cent), and
construction (8 per cent)
• Medium businesses - are scattered over retail trade
(15 per cent), education and training (12 per cent)
and accommodation and food services (12 per cent)
• Large businesses were engaged in:
‚‚ accommodation and food services (29 per cent)
‚‚ administrative and support services (14 per cent)
‚‚ education and training (14 per cent)
‚‚ public administration and safety (14 per cent)
‚‚ rental, hiring and real estate services (14 per cent)
‚‚ transport, postal and warehousing sectors
(14 per cent).
Alice Springs Economic Profile
24
Alice Springs Business Survey
Survey respondants were asked to discuss the
performance of their business in the previous year. The
results are outlined below.
Previous Business Performance
(November 2006 – November 2007)
Overall
61 per cent of businesses identified an increase in
value of sales and an increase in the size of their
workforce in the past year. This is supported by the
decline in unemployment rate and high participation
rate
• 50 per cent increased their wages bill and prices
charged
• 44 per cent increased their profitability
• 37 per cent identified an increase in their capital
expenditure.
Increased value of sales
Sales
• 57 per cent of micro businesses increased their
value of sales
• 61 per cent of small businesses increased their
value of sales
• 64 per cent of medium businesses increased their
value of sales
• 100 per cent of large businesses increased their
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
micro
small
medium
large
value of sales.
Employed more people
Workforce
• 43 per cent of micro businesses increased their
workforce
• 69 per cent of small businesses increased their
workforce
• 77 per cent of medium businesses increased their
workforce
• 86 per cent of large businesses increased their
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
micro
small
medium
large
workforce.
Increased wages
Wages
• 40 per cent of micro business increased their wages
• 53 per cent of small businesses increased their
wages bill
60%
50%
40%
• 64 per cent of medium businesses increased their
wages bill
30%
20%
• 57 per cent of larger businesses increased their
wages bill.
70%
10%
0%
micro
Alice Springs Economic Profile
small
medium
large
25
Alice Springs Business Survey
Increased prices in the last year
Prices
70%
• 41 per cent of micro business increased
60%
prices charged
50%
• 51 per cent of small business increased
40%
prices charged
30%
• 66 per cent of medium businesses increased
20%
prices charged
10%
0%
micro
small
medium
large
• 57 per cent of larger businesses increased
prices charged.
Increased profitability in the last year
80%
Profitability
70%
• 41 per cent of micro businesses increased
60%
profitability
50%
• 44 per cent of small businesses increased
40%
profitability
30%
20%
• 46 per cent of medium businesses reported
10%
0%
micro
small
medium
large
an increase in their profitability over the last
12 months
• 71 per cent of large businesses increased
profitability.
Increased investment in the last year
70%
Investment
60%
• 17 per cent of micro increased capital
50%
expenditure
40%
• 43 per cent of small business increased
30%
capital expenditure
20%
• 61 per cent of medium business increased
10%
capital expenditure
0%
micro
small
medium
large
• 57 per cent of large businesses increased
capital expenditure
Alice Springs Economic Profile
26
Alice Springs Business Survey
Expectations for 2008
Overall
The survey found that:
• 74 per cent expect an increase in the value
of sales
• 57 per cent expect an increase in the size of their
workforce
•
•
•
•
53 per cent expect an increase in wages bill
41 per cent in prices charged
61 per cent expect profitability to increase
35 per cent will increase their capital expenditure.
Increase in value of sales
Sales
• 70 per cent of micro businesses expected to
increase the value of sales
• 77 per cent of small businesses expect to
increase in the value of sales
• 76 per cent of medium businesses to expect
increase in the value of sales
• 100 per cent of large businesses expect increase
in the value of sales.
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
micro
Workforce
small
large
Increase in size of workforce
• 46 per cent of micro businesses expect to
increase their workforce
• 60 per cent of small businesses expected to
increase their workforce
80%
70%
60%
50%
• 72 per cent of medium businesses expected to
increase their workforce
• 57 per cent of large businesses expected to
increase their workforce.
40%
30%
20%
10%
0%
micro
Wages
small
medium
large
Increase in wages bill
• 43 per cent of micro businesses expected to
increase their wages
• 55 per cent of small businesses expected to
increase their wages
• 66 per cent of medium businesses expect
increase in their wages
70%
60%
50%
40%
30%
20%
• 57 per cent of large businesses expected to
increase their wages.
medium
10%
0%
micro
Alice Springs Economic Profile
small
medium
large
27
Alice Springs Business Survey
Increase in prices
Prices
60%
• 32 per cent of micro businesses expect to
50%
increase prices
40%
• 49 per cent of small businesses expect to
30%
increase prices
20%
• 45 per cent of medium businesses expect to
10%
increase prices
0%
micro
small
medium
large
• 43 per cent of large businesses expect to
increase prices.
Increase in profitability
Profitability
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
• 58 per cent of micro businesses expect to
increase profitability
• 63 per cent of small businesses expect to
increase profitability
• 64 per cent of medium businesses expect to
increase profitability
micro
small
medium
large
Increase in capital expenditure
• 86 per cent of large businesses expect to
increase profitability.
Investment
60%
•
50%
28 per cent of micro businesses expect to
increase their capital expenditure
• 35 per cent of small businesses expect to
40%
increase their capital expenditure
30%
• 47 per cent of medium businesses expect to
20%
increase their capital expenditure
10%
• 57 per cent of large businesses expect to
0%
micro
small
medium
large
increase their capital expenditure.
Alice Springs Economic Profile
28
Alice Springs Business Survey
Opportunities for Growth
• The respondents identified a number of
economic opportunities that would improve
business prospects in Alice Springs including:
‚‚
‚‚
‚‚
‚‚
‚‚
more tourists
more airlines
more skilled staff
more contracts
more land releases.
While micro and small business indicated new
mining developments as a larger economic
opportunity, medium and large businesses identified
the airport upgrade as a large economic opportunity.
Business adaptability to varying sectoral
opportunities is an indicator of robustness of the
economy to adjust to its economic environment.
Micro business identified residential/non-residential
construction, new development opportunities,
other tourism opportunities, the airport upgrade
and defence support as the top five economic
opportunities for them over the next 12 months.
The top four business opportunities identified by
small businesses were:
• new mining developments (84 per cent)
• residential and non – residential construction
(81 per cent)
• airport upgrade and other tourism opportunities
Business Input Source
Overall
In varying degrees
• 80 per cent of businesses source some of their
material from Alice Springs
• 45 per cent source some of their material from other
parts of the Northern Territory
• 80 per cent source some of their material from interstate
• 25 per cent source some of their material from overseas
• Wholesale trade and retail trade were identified as the
major suppliers for business inputs by most businesses.
(70 per cent each)
• Desert Knowledge Precinct (64 per cent).
New mining development (81 per cent), residential
and non residential construction (78 per cent), other
tourism opportunities were identified by medium
businesses as opportunities over the next 12
months.
The top economic opportunities for growth identified
by large businesses, were:
•
•
•
•
•
•
Overall
When respondents were asked to nominate their
customers’ locations the responses were:
• 97 per cent of respondents had a customer base in
Alice Springs.
• 61 per cent of respondents had a customer base in
other parts of the Northern Territory.
airport upgrade (86 per cent)
Desert Knowledge Precinct (86 per cent)
defence support (86 per cent)
new mining developments (86 per cent)
Tanami road upgrade (85 per cent)
Red Centre Way (85 per cent).
Customer Base
• 41 per cent of respondents had an interstate customer
base.
• 16 per cent had an international customer base.
Each respondent nominated a different percentage for each
location (from zero to 100 per cent). The sum of customers
per location added to 100 per cent for each business.
Alice Springs Economic Profile
29
For more information contact:
Department of Business, Economic and Regional Development
T: (08) 8951 8524
F: (08) 8951 8533
E: TBCAlice.DBERD@nt.gov.au
A:
Peter Sitzler Building
67 North Stuart Highway
Alice Springs NT 0870