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8/10/2019 Business Case - Shark Bay Marina Feasibility Study Final
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BUSINESS CASE PROPOSAL
FOR
Shark Bay Marina Feasibil ity Study
Shire of Shark Bay
Requesting: $506,000
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TABLE OF CONTENTS
Glossary of terms ............................................................................................................................................... 1
1. EXECUTIVE SUMMARY ........................................................................................................................... 2
2. PROJECT SCOPE AND EVALUATION .................................................................................................... 3
2.1. PROJECT OUTCOME.............................................................................................................................. 3
2.2. PROJECT DESCRIPTION......................................................................................................................... 3
2.3. BACKGROUND...................................................................................................................................... 4
2.4. POLICY AND STRATEGIC FRAMEWORK................................................................................................... 5
2.5. KEY DELIVERABLES.............................................................................................................................. 9
2.6. STAKEHOLDER IDENTIFICATION.............................................................................................................. 92.7. CRITICALASSUMPTIONS...................................................................................................................... 10
2.8. ECONOMIC AND FINANCIALANALYSIS................................................................................................... 12
2.8.1. SOCIO ECONOMIC BENEFITS............................................................................................................... 12
2.9. ASSESSMENT OF OPTIONS.................................................................................................................. 13
2.10. PREFERRED OPTION........................................................................................................................... 14
2.11. FUNDING STRATEGY........................................................................................................................... 14
2.11.1.PROJECT BUDGET.............................................................................................................................. 14
2.11.2.ROYALTIES FOR REGIONS FUNDINGAMOUNT 2013/2014 ..................................................................... 15
2.12. PROJECT TIMEFRAME AND KEY MILESTONES....................................................................................... 15
2.13. RISKANALYSIS................................................................................................................................... 16
2.13.1.RISKASSESSMENT............................................................................................................................. 17
3. IMPLEMENTATION STRATEGY ............................................................................................................ 18
3.1. COMMUNICATION PLAN....................................................................................................................... 18
3.2. PROJECT MANAGEMENT AND GOVERNANCE......................................................................................... 19
3.2.1. RESPONSIBILITIES............................................................................................................................... 19
3.2.2. RESOURCING...................................................................................................................................... 20
3.2.3. LICENCES........................................................................................................................................... 203.3. PROCUREMENT STRATEGY.................................................................................................................. 21
3.4. SUPPORTING DOCUMENTS.................................................................................................................. 21
4. RECOMMENDATION OF PREFERRED OPTION ................................................................................. 21
4.1. SIGN-OFF........................................................................................................................................... 21
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Department of Regional Development
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Ar ticle I. Glossary of terms
In the context of this document:
Agencymeans a Western Australian State Government agency.
Appl icant means the organisation or Agency preparing a Business Case Proposal requestingRoyalties for Regions funding for a priority project.
Business Case Proposalmeans the information prepared by the Applicant in support of the
project.
Deliverables means the expected productivity benefits, outputs and outcomes from the
project.
Departmentmeans the Department of Regional Development.
Innovationis the implementation of a new or significantly improved product (good or service)
process, new marketing method or a new organisational method in business practices, orexternal relations1.
Leveraged Fundingis the additional cash funding obtained for the Project from other sources.
Optionmeans a feasible, alternative delivery mechanism to the Project which was considered
by the applicant when preparing the Business Case Proposal.
Organisationmeans an incorporated entity that is not an Agency. An organisation may be a
not-for-profit entity or government trading enterprise.
Projectmeans the works or services proposed in the Business Case Proposal.
Project Outcomemeans the intended impact that is expected as a result of undertaking the
Project.
Project Output means the tangible end product(s) of the Project. For example, an
infrastructure asset or the services delivered.
Royalties for Regions means the Western Australian State Governments Royalties for
Regions program.
Stakeholdermeans a party with an interest in or who is affected by the Project.
1Organisation for Economic Cooperation and Development and Development Statistical Office of the
European Communities (2005 Third Edition) Oslo Manual Guidelines for collecting and interpretinginnovation data, 3rdedition, OECD and European Commission, Paris
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1. EXECUTIVE SUMMARY
This Business Case refers to the project involving development of a comprehensive feasibility
study for a Shark Bay Marina. The study intends to address the community, economic and
environmental impacts a Marina may have on the town of Denham, with in-depth statistics,
research and consultation.
It is considered that there are only two options; do nothing or do a complete study. This
Business Case recommends undertaking the feasibility study to enable a clearer vision for the
proposed Marina. For any progression towards a Shark Bay Marina, it is critical to first
ascertain the full extent of how it would impact the local and regional communities and the
estimated costs of the proposed staged development.
Investigations into the development of a Shark Bay Marina are a priority for the Shire of Shark
Bay, the region and the state. The Gascoyne Development Commission name the project as a
flagship project and Tourism WA identify it as a high priority.
Throughout this Projects duration significant community and commercial consultation will occur
with local and regional residents, maritime industry stakeholders, visitors, tourism operators
and organisations, Indigenous groups, environmental groups and suppliers to the area.
A preliminary budget indicates that this Project will cost approximately $506,000 of which$506,000 is sought through the Royalties for Regions, Gascoyne Revitalisation Plan program.
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2. PROJECT SCOPE AND EVALUATION
2.1. Project OutcomeThis Projects outcome is to develop a comprehensive feasibility study for the development of a
Shark Bay Marina with a vision to produce positive long-term outcomes for the local communityand economies of the Gascoyne region and the state of Western Australia.
2.2. Project DescriptionThis Project involves engaging highly qualified contractors to undertake research into the
feasibility of developing a marina in the Shire of
Shark Bay.
Initial reports identify an opportunity to increase
the attraction of the Shire and the region,
increase economic prosperity and grow the
community through provision of a high quality
marina located in Denham, over 840 kilometres
north of Perth and 408 kilometres from the Coral Coasts regional centre, Geraldton.
The Shire of Shark Bay will commence this Project with the Shire appointing a highly qualified
Project Manager. The Shire and the Project Manager will work congruently to develop specific
tender documentation for the appointment of a Tourism/Economic/Commercial Advisor,
Planner/Urban Designer, Civil Engineer, Coastal Engineer, Environmental Scientist, Landscape
Architect and Surveyor (proposed Scope of Works can be found at Appendix E to Attachment A
of this Business Case).
Over the course of eight
months (commencing
February 2014), the
consultants will research,
assess and providerecommendations regarding
their respective professions of
the development of a Shark
Bay Marina.
Upon completion, the Shark
Bay Marina Feasibility Study
will be provided to the Shire of Shark Bay for consideration.
The anticipated cost of this Project is $506,000 without the need for multiple milestones/stages
Above: Shark Bay Locality
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however it is anticipated that funding will be sought in instalments as described in this Business
Case at item 2.11.2.
2.3. BackgroundMarine tourism and commercial and recreational boating along Australias Coral Coast isburgeoning. The nearest marinas along the coast at Exmouth, Carnarvon and Geraldton are
more than 330km, 365km and 479km respectively from Shark Bay.
A recent survey carried out amongst residents of and visitors to the town of Denham indicated
overwhelming support for improved boating facilities including moorings, boat pens, a refuelling
jetty and a boat ramp. The research is supported by anecdotal information from fishing and
boating weblogs that suggest existing marina locations are not adequate or useful for boat
operators in the Shark Bay area.
To alleviate this problem, the Shire of Shark Bay proposes investigating the development of a
commercial and recreational boating marina and associated facilities in the town of Denham
which will enhance the towns accessibility and attraction for fishermen, divers and other
commercial and recreational boat users.
The development of Shark Bay Maritime Facilities is a maritime flagship project identified in the
Gascoyne Development Commissions Gascoyne Regional Development Plan 2010-2010.
Additionally, Tourism WAs Tourism Development Priorities classify the development of a
marina in Denham as a high priority.
Regional Development Australia Mid-West Gascoyne, the Shire of Shark Bay and the
Gascoyne Development Commission have combined to progress opportunities for the
development and operation of a new tourism development site in Stella Rowley Drive,
Denham. The Stella Rowley Drive site is part of the WA governments Tourism Landbank
initiative. The opportunity may include the construction of a marina and associated commercialand residential developments.
The original 6.1013 hectare development site occupies a prominent position overlooking the
ocean with views across to Dirk Hartog Island and the Shark Bay World Heritage Area. Within
Denham, the site is located on the coastal side of Stella Rowley Drive. The location and the
contours of the site provide outstanding views over Freycinet Reach to Dirk Hartog Island. The
site is within the area northwest of and adjacent to the Denham town site, which is located on
the southern side of Stella Rowley Drive The marina will be linked to the Denham town site by
the proposed foreshore redevelopment. The site is almost rectangular in shape and hascoastal frontage.
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The Department of Transport has indicated a strong preference for the proposed marina
location at Stella Rowley Drive rather than an alternative site near the existing jetties at
Denham.
The Shire of Shark Bay has contributed $50,000 to date on this Project for coastal engineering
design consultants (MP Rogers) to develop a Breakwater and Pen Design and for the
development of an economic and social impact report (Brighthouse Strategic Consultants).
The report developed by Brighthouse Strategic Consultants included a proposed concept
design, scope of works and high level cost estimates for the proposed marina (see Attachment
A Brighthouse Report) in August 2013. The report recommends that a comprehensive
feasibility study be undertaken to ascertain a clearer assessment of options relating to the
construction of the marina, as well as investigating the technical specifications, environmental
impacts and economic values.
2.4. Policy and Strategic FrameworkShark Bay was inscribed on the World Heritage List in 1991 and is one of the few World
Heritage places, included in the Australian National Heritage List.
This Project aligns with the following plans and strategies:
Shire of Shark Bay: Strategic Communi ty Plan
Economic Sustainable growth and progress.
To enhance the provision of adequate boating/recreational facilities that meets the
needs of the general community (visitors, locals, businesses).
Environment Protecting our precious natural environment and retaining our lifestyle values
and community spirit.
Increase the awareness of Shark Bay as an attractive place to live, work, visit andinvest.
To increase investment opportunities, improve attractiveness and the diversity of usesto add to the town centre vibrancy.
Future foreshore development is sympathetic to the natural environment and aids in thedevelopment of local economy.
Gascoyne Development Commission: Gascoyne Regional Development Plan 2010-2020
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Maritime Flagship Project Shark Bay Maritime Facilities: The future provision of maritime
infrastructure and the ultimate upgrade and expansion of existing jetty facilities at Denham
through a community consultation process.
Outcome 3: Balanced urban and coastal development.
Outcome 5: Improved Government services. Outcome 8: Improved regional infrastructure. Outcome 10: Enhanced fishing and aquaculture. Outcome 13: Continued expansion of the tourism industry. Outcome 14: Establishing new industry and resources. Outcome 17: Enhanced quality of regional lifestyles.
Tourism WA: Tourism Development Priorities
High Priority Facilitate the development of a Denham marina.
Department of Regional Development: Strategic Plan 2012
Grow regional communities
Support local government in planning and implementing key projects and activities tobuild their communities.
Improve community services
Invest in appropriate services suitable to the diverse needs of regional communities. Encourage communities to develop their own unique sense of place.
Foster local decision making
Encourage local decision making for transformational improvement of services. Build capacity in communities to plan and implement local projects.
Regional Development Australia Mid-West Gascoyne Regional Plan 2010-2015
Liveable Communities
Community amenity is well designed to enhance employment, lifestyle opportunitiesand community safety.
Department of Environment, Water, Heritage and the Arts Shark Bay World Heritage
Property Strategic Plan 2008-2020
Identification
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This Project meets the following Royalties for Regions objectives through:
Building capacity in regional communities
Undertaking research to attain local and regional community benefits. Ascertaining the opportunity for quality infrastructure, employment and growth.
Retaining benefits in regional communities
Discovering the feasibility of showcasing Shark Bays unique natural environmentthrough a marina.
Considering the Shire of Shark Bays attraction through development of high qualityinfrastructure drawing in new community members and visitors.
Improving services to regional communities
Exploring community expectations, visions and opinions. Investigating opportunities for new commercial space.
Attaining sustainabi li ty
Establishing mechanisms to enhance the attraction of the Shire of Shark Bay as a placeto work, live and visit.
Expanding opportunity
Investigating avenues for increasing employment opportunities for the community. Researching techniques to grow the Shire of Shark Bays infrastructure. Exploring community expectations, visions and opinions.
Growing prosperity
Investigating avenues for increasing employment potential for the community. Contributing to discovering methods of facilitating a liveable town and region.
This Project may have a positive impact on the Western Australian Regional Development
Trusts Investment in regional strategic corridorstheme by:
Facilitating economic growth in regional Western Australia. Facilitating opportunities for liveability in regional Western Australia. Facilitating increased infrastructure to meet community and visitor expectations in
regional Western Australia.
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2.5. Key Deliverables
Outcomes Performance Measures
1
Thorough and guided direction for thepotential construction of the Shark BayMarina for the benefit of all stakeholders.
Feasibility study developed andapproved by Project Sponsor andGovernance Committee by 30 June2014.
Outputs Performance Measures
1 Established Project Charter
Project framework developed and
approved by the Governance Committeewithin eight weeks of project initiation(inclusive of stakeholders, roles,responsibilities, financials, resourcesand deliverables).
2 Completed Scope of Works
Scope of Works developed by ProjectManager and approved by ProjectSponsor and Governance Committeewithin eight weeks of project initiation(including activities, tasks, timeframes,resources, assumptions, constraints).
3A comprehensive feasibility study for thedevelopment of a Shark Bay Marina iscompleted.
Feasibility study developed andapproved by Project Sponsor andGovernance Committee by 30 June2014.
2.6. Stakeholder Identification
Stakeholder Interests
Shire of Shark Bay Applicant
Shires of Northampton, Murchison, UpperGascoyne and Carnarvon
Adjoining LGAs. Contributors torevitalisation of the region.
Gascoyne Development Commission Enhanced Gascoyne region.
Regional Development Australia Mid-West
GascoyneEnhanced Mid-West Gascoyne region.
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Stakeholder Interests
Department of Transport Potential developer/operator of marina.
Department of Park and WildlifeProtection of the World Heritageenvironment.
Department of Environment, Water,Heritage and the Arts
Protection of the World Heritageenvironment.
Tourism WA Potential major tourism opportunity
Shark Bay community Consultation
Shark Bay visitors Consultation
Local businesses Consultation
2.7. Critical Assumptions
No. It is assumed that: Comments/Impact if not addressed.
1.Funding will be met byRoyalties for Regions.
This Project will not proceed as per thetimeframes outlined in this Business Case. Adelay in project commencement is likely tooccur.
2.The funding sought issufficient to complete thisProject.
Accurate cost estimates have been obtainedin August 2013.
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2.8. Economic and Financial Analysis
This Project will deliver socio economic benefits rather than direct financial benefits. This
Project will investigate and verify construction cost estimates, potential revenues from marina
operations and operational costs.
2.8.1. Socio Economic Benefits
The socio economic benefits of undertaking this Project to the Shire of Shark Bay and the
Gascoyne relate include:
Increased potential for community spirit, wellbeing and quality of life.
Increased potential for regional vitality and liveability.
Increased potential for community and recreation opportunities.
Increased potential for employment opportunities. Increased potential to attraction to visitors.
Increased potential for a healthy community.
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2.9. Assessment of Options
The Shire of Shark Bay has the following options to consider in relation to this Project:
Option Benefits Implications Cost
1. Do nothing. No additional financial
cost.
Missed opportunity forincrease communityfacilities.
Lack of contribution toMid-West Gascoynerevitalisation.
Indicates a lack ofcommitment to thegrowth of the community.
Missed opportunity fortourism growth andemploymentopportunities.
Nil
2. UndertakecomprehensiveFeasibility Study
Indicates the Shire isdedicated toenhancing Shark Bay.
Meets Shirescommitment to itsStrategic Community
Plan Continues the desired
outcomes from theStrategic EconomicPlan.
Shows a commitmentto the growth of localand regionaleconomies.
Provides a detailedassessment of
options available tothe Shire and the bestavenue forprogression.
Provides conduit forlong-term strategicdevelopment of theregion
Marine safety.
Takes advantage ofWorld Heritage status
Provides Investorconfidence.
Confirms the ability ofthe Shire to manage
large infrastructureprojects.
Provides leverage forfuture development.
Follows the commitmentto the Community
Provides community,social and economicbenefits, includingtourism, businessincubation and
population growth.
Incubates a growth inmarine tourism as SharkBay will provide a safemarine haven on alargely unservicedcoastline.
Potential for cruise shipvisitation
$506,000
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2.10. Preferred Option
It is considered that Option 2 Feasibility Study is the preferred option for this Project.
This option is preferred as the Shire of Shark Bay considers there are considerable benefits to
undertaking a comprehensive feasibility study and exploring the opportunity to enhance
infrastructure and local and regional economies as well as determining financial, environmental
and community impacts.
2.11. Funding Strategy
The Shire of Shark Bay has contributed $50,000 to date on this Project for coastal engineering
design consultants (MP Rogers) to develop a Breakwater and Pen Design and for the
development of an economic and social impact report (Brighthouse Strategic Consultants).
This Project has been identified as a flagship project through the Gascoyne Regional
Development Plan developed by the Gascoyne Development Commission (GDC). An
application under the Royalties for Regions, Gascoyne Revitalisation Plan program seeks the
full amount of project costs as outlined in this Business Case.
2.11.1. Project Budget
Item of Expenditure Budget Source of Funds Has the Fundingbeen Secured?
Project Manager $80,000 Royalties for Regions No
Tourism/Economic/Commercial
Advisor$50,000 Royalties for Regions No
Planner/Urban Designer $80,000 Royalties for Regions No
Civil Engineer $50,000 Royalties for Regions No
Coastal Engineer $50,000 Royalties for Regions No
Environmental Scientist $70,000 Royalties for Regions No
Landscape Architect $60,000 Royalties for Regions No
Surveyor $20,000 Royalties for Regions No
Contingency (10%) $46,000 Royalties for Regions No
Total Budget $506,000*
*See Attachment A Brighthouse Report, Appendix E
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2.11.2. Royalt ies for Regions Funding Amount 2013/2014
Occurrence Grant Percentage Date Total
Upon commencement 30% 3 February 2014 $150,000
Interim report 30% 30 May 2014 $150,000
Upon completion and acceptanceof final report
40% 30 September 2014 $206,000
Total $506,000
2.12. Project Timeframe and Key Milestones
Project timeframe: February 2014 to September 2014
Activi tyFeb
2014Mar
2014Apr2014
May2014
Jun2014
Jul2014
Aug2014
Sept2014
Engage Project Manager
Develop detailed ProjectCharter
Tender for consultants
Undertake Shark BayMarina Feasibility Study
Audit and final reporting
It is anticipated that a detailed project plan including tasks, resources, relationships and activity
durations will be developed by the Project Manager and approved by the Project Sponsor,
immediately upon engagement of the Project Manager.
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2.13. Risk Analysis
The following risk matrix will be used as the basis for the assessment of risks:
C
O
N
S
E
Q
U
E
N
C
E
LIKELIHOOD
RARE UNLIKELY POSSIBLE LIKELYALMOST
CERTAIN
INSIGNIFICANT LOW LOW LOW LOW MEDIUM
MINOR LOW LOW MEDIUM MEDIUM MEDIUM
MODERATE LOWMEDIUM MEDIUM
HIGH HIGH
MAJOR LOW MEDIUM HIGH EXTREME EXTREME
CRITICAL MEDIUM MEDIUM HIGH EXTREME EXTREME
Prior to the commencement of the project, the Shire intends to engage the services of a
specialist risk management consultant, to conduct a workshop attended by key stakeholders.
The workshop will identify and prioritise risks and provide risk mitigation strategies. A KPI of
the Project Manager will be the production of a risk report, which will update the risks and
required actions on a monthly basis or as necessary.
The following table describes the high-level risks identified to date.
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2.13.1. Risk Assessment
# Risk Category OwnerLikeli-
hood
Conse-
quence
Risk Score Risk Mitigation Strategies
1.Injured contractor/s. Development Contractor Unlikely Moderate Medium Insurances of contractors to be checked prior to
commencement.
2.
Project not fully funded. ExternalShire of Shark
Bay
Unlikely Minor Low
The sum of $500,000 has been allocated to thisProject by GDC.
The Shire of Shark Bay has capacity to meet theshortfall should the allocated amount remainstrictly as $500,000.
3.Natural disaster or severe weather patterns. External
Shire of Shark
BayPossible Insignificant Low
As this Project involves little on-ground works,weather interruptions are not considered a largeconsequence to the delivery of this Project.
4.Milestones not met.
Project
Management
Shire of Shark
BayUnlikely Minor Low
A schedule of works is to be developed withproject team.
Regular meetings to be had to ensure project isprogressing on schedule.
5.Budget exceeded.
Project
Management
Shire of Shark
BayUnlikely Major Medium
Separate GL account to be created for projectwhich all income and expenditure is to becredited/debited.
Budget to be monitored at project team meetings.
6.
Delay in reporting and acquitting any
funding.
Project
Management
Shire of Shark
BayRare Moderate Low
CEO to monitor reporting dates, obtain relevantreport templates and ensure completion well priorto deadlines.
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3. IMPLEMENTATION STRATEGY
3.1. Communication Plan
The strategy for communicating this Project is as follows:
Target Market Method Comment
Shire of Shark Baycommunity and businessowners
Media, posters, web,consultation
Residents and business owners will benotified through the local publications,the Shires website and posters locatedat local facilities including the Shirebuilding, library and visitors centre.
Additionally, this Project will form anagenda item at the appropriate Council
meeting, which is available to thecommunity.
Extensive community consultation willbe undertaken, thereby communicatingthis Project to the community andbusiness owners as well as offering theopportunity to provide input.
Media will refer to RfR and it isunderstood that this mediaacknowledging the DRD will requireapproval by the Department.
Tourists/Visitors Media, posters, web
Visitors will be informed of this Projectand its progress through materials tobe displayed at the Denham/MonkeyMia Visitors Centre, accommodationvenues, restaurants and attractions.
Media will refer to RfR and it isunderstood that this mediaacknowledging the DRD will requireapproval by the Department.
Neighbouring LGAs(Carnarvon, UpperGascoyne, Murchison,Northampton)
Verbal, electronicThrough usual liaisons or via emailcorrespondence.
Gascoyne DevelopmentCommission
Reports Through grant reporting obligations.
Much of the communication for this Project will be undertaken verbally and online, therefore
keeping costs to a minimum. Media and printing expenses are expected to be nominal andallocated from the Shires operating budget.
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Any media releases will be prepared and forwarded in draft form to the relevant DRD
Communications Officer for approval, allowing for DRDs standard two working day minimum
requirement for approval It is acknowledged that any joint media statements are a consultative
process and all departments/agencies must be satisfied with the final drafts prior to submission to
respective media advisors.
The final feasibility study and any promotional materials/media will make reference to RfR funding
and include the following statement: this project is funded by the State Governments Royalties for
Regions program.
Any advertising or printed material (web, posters, leaflets, feasibility study) will display both the
RfR and DRD logo in accordance with DRD requirements.
A final location for the marina has not yet been finalised and investigations will form part of thisProject, therefore it is not appropriate to install signage at a location referring to RfR funding.
Further discussions will be had with GDC regarding a suitable alternative.
3.2. Project Management and Governance
3.2.1. Responsibilities
The Shire of Shark Bay will be responsible for the project including the administrative, financial
obligations and implementation.
The Chief Executive Officer will be delegated the authority to act as the Project Sponsor under a
mandate from the Shire of Shark Bay. The Project Sponsor will define the project parameters,
oversee (but not manage) the project, make strategic decisions, direct the Project Manager in
regard to issues and problems with the project and review project status reports and present to the
Governance Committee.
The Project Sponsor is responsible for the dissemination of reports to funding agencies and other
relevant organisations.
A Governance Committee will be established prior to project initiation to receive project status
reports and guide the Project Sponsor. The key stakeholders to the project will appoint the
Governance committee members.
A Project Manager will be appointed by the Project Sponsor and will be responsible for
accomplishing the project objectives including:
Proactively managing the project day to day; Establishing clear and achievable objectives and timelines;
Balance the competing demands for quality, scope, time and cost;
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Adapt the project specifications to mitigate risks and issues; and
Deliver the project in accordance with the specification.
The Project Manager will establish the Project Team, following a transparent selection process. It
is envisaged that the Project Team will incorporate the Project Manager,Tourism/Economic/Commercial Advisor, Planner/Urban Designer, Civil Engineer (including
Geotechnical, Traffic and Electrical), Coastal Engineer, Environmental Scientist, Landscape
Architect and Surveyor. It is anticipated that the Project Team will liaise on a weekly, or higher
frequency basis, review all issues and risks and confirm the Projects progress against milestones.
3.2.2. Resourcing
Internal
The Shires Chief Executive Officer has extensive experience with managing and sponsoringprojects, including:
Monkey Mia Artesian Bore for Water Supply ($650,000)
Community Sport and Recreation Centre ($5.2 million)
Shark Bay Boat Ramps ($250,000)
The Shire have not received any penalties for missed reporting deadlines or been prohibited
funding from any source.
External
The Shire intends to engage suitably qualified contractors to undertake the necessary components
as detailed in the suggested scope of works at 2.2 Project Description of this Business Case.
Contractors will be required to submit applications upon opening of the tender process detailing
their experience, knowledge, qualifications and capabilities.
It is recognised that this Project is likely to attract contractors outside of the local and regional
community, typically from Perth.
3.2.3. Licences
There are no licences or permits required for the implementation of this Project.
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Appendix 1
Marina Social and Economic Impacts Report Brighthouse 2013
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DraftReportontheeconomicandsocial impactsofaproposedmarinafacility atStellaRowleyDrive,
SharkBay,WesternAustralia
Preparedfor theShireof Shark BayAugust2013
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Disclaimer
While every effort has been made to ensure the accuracy of this document and any attachments, the
uncertain nature of economic data, forecasting and analysis means that Brighthouse is unable to make any
warranties in relation to the information contained herein. Brighthouse, its employees and agents disclaim
liability for any loss or damage, which may arise as a consequence of any person relying on the information
contained in this document and any attachments.
Brighthouse Strategic Consultants
P O Box 1185, Mandurah, WA 6210 Tel.
9467 8620 Mob. 0418 915 532 Email.
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Project Background and Purpose of the Study
Coasts and estuaries form a dynamic transition zone between the land and the sea and help Australians
achieve many economic, social and environmental benefits. The Australian coastline extends for
approximately 34,000km (excluding all small offshore islands) and includes more than 1000 estuaries.
Approximately 50% of the Australian population resides within 7km of the coast and ports and other coastal
infrastructures are pivotal in supporting primary industries and tourism. 1
Marine tourism and commercial and recreational boating along the Coral Coast region of WA is burgeoning.
The nearest marinas along the Coral Coast at Exmouth, Carnarvon and Geraldton are more than 330km,
365km and 479km respectively from Shark Bay.
A recent survey carried out amongst residents of and visitors to the town of Denham indicated overwhelming
support for improved boating facilities including moorings, boat pens, a refuelling jetty and boat ramp. The
research is supported by anecdotal information from fishing and boating weblogs that suggest existing marina
locations are not adequate or useful for boat operators in the Shark Bay area.
Regional Development Australia Mid---West Gascoyne, the Shire of Shark Bay and the Gascoyne Development
Commission have combined to progress opportunities for the development and operation of a commercial and
recreational boating marina and associated facilities including retail, residential and short stay visitor
accommodation in Stella Rowley Drive, Denham. The Stella Rowley Drive site is part of the WA governments
Tourism Landbank initiative. The opportunity may include the construction of a marina and associated
commercial and residential developments.
The original 6.1013 ---hectare development site occupies a prominent position overlooking the ocean with views
across to Dirk Hartog Island and the Shark Bay World Heritage Area. Within Denham, the site is located on the
coastal side of Stella Rowley Drive. The location and the contours of the site provide outstanding views over
Freycinet Reach to Dirk Hartog Island.
The site is within the area northwest of and adjacent to the Denham town site in which the land is located on
the southern side of Stella Rowley Drive. It is almost rectangular in shape and has coastal frontage. TheDepartment of Transport has indicated a strong preference for the proposed marina location at Stella Rowley
Drive rather than an alternative site near the existing jetties at Denham.
The proposed Shark Bay marina is located adjacent to the town of Denham, on the Coral Coast of Western
Australia. The marina concept is still being developed but could comprise anything between 100 and 200
marina berths in a staged development and potential residential lots, tourist accommodation sites, mixed use
residential commercial development and a marine/boating services cluster, subsequent to the marina
construction. The Shark Bay marina project has the potential to significantly enhance the amenities, facilities
and residential appeal of the town of Denham and its surrounding areas.
To assist in the assessment and understanding of the marina proposal, a preliminary concept plan for the
potential marina development and high ---level construction cost estimates has been provided as attachments tothis report.
The recommendation to proceed with a full feasibility study is based on the findings of this report, that a
marina at Shark Bay would produce positive long ---term outcomes for the local community, the economy of the
Gascoyne region and the state of Western Australia.
Shark Bay a Social and Economic Profile
The Shire of Shark Bay is one of four local authorities that make up the Gascoyne region. The gross regional
product of the Gascoyne was $659.7 million in 2011, or 0.4% of Western Australias gross state product of
$186 billion.
1Geoscience Australia
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Denham is the main service centre for the Shire of Shark Bay and along with nearby Monkey Mia functions as a
key tourist destination in Western Australia.
The economies of Denham, Monkey Mia and the broader Shark Bay shire are reliant on tourism with retail
trade, transport, accommodation and food services accounting for 32% of employment in the area. The
tourism sector is highly seasonal, which means that many businesses operate at high levels during peak season
and then business falls during the low season. These fluctuations can make it difficult to provide for a
sustainable economy.
Marinas as an Industry --- Australia and WA
The Marina Industries Association estimates that there are 356 marinas with 20 or more boat storage spaces
across Australia. In Western Australia, as of 2011, there were 36 marinas. In Western Australia, marinas are
among the fastest growing sectors of the overall marine industry. Marina revenue in WA has been growing at
an annual rate of 35% in recent years and total marina revenue in 2011 was estimated to be $96 million. As
such, the mean gross marina revenue in WA is $2.67 million per marina per annum inclusive of an average of
$267,000 revenue from business tenants at each WA marina. Across Australia, marinas employ 12 staff on
average, although 6 of these are generally casual marina employees. The average size of a marina in WA is 174
pens, which is relatively large and only matched by Queensland.
Marina Berths --- Pricing and Leasing
The majority of 20+ pen marinas in WA are managed by the Department of Transport. The yearly pen lease at
WA public marinas for a 10 metre boat ranges from $2380 at the Carnarvon boat harbour to $5589 per annum
at the Fremantle Challenger boat harbour.
The recently developed Exmouth boat harbour serves as a useful benchmark for Shark Bay. The boat harbour
comprises 18 charter boat pens, 24 general purpose pens, 8 trawler pen moorings, a service wharf and two
boat ramps, as well as a fishing platform, fish cleaning table, oil disposal facility, toilets, showers and car park.
General purpose pens at the boat harbour are leased for $3,239 per annum for a 10 metre boat, while charter
boat pens for a 20 metre charter or tourist vessel could generate $13,000 per annum.
Demand Potential Assessment for Shark Bay Marina
Research conducted by Patterson's Research estimates that there are 270 boats in Denham. Of these, about
195 are trailable and another 40 are moored boats. A portion of those residents who own trailable boats may
decide to lease a pen at the new marina in addition to the majority of those who currently moor boats and
who could be expected to take a pen at the new marina.
For boat owners further afield, the location of the Shark Bay marina midway between Geraldton and
Carnarvon in proximity to desirable boating areas, the improved facilities and services the marina will bringand enhanced visual amenity will all positively impact the demand for pens at the Shark Bay marina. The
increased demand for berths across Western Australia is only likely to continue into the future.
As part of this report, a social and economic impact assessment of the construction phase of the Shark Bay
marina was undertaken to provide preliminary evaluation of the project. The economic impact utilised
preliminary cost inputs from a marina developer to gauge the direct and flow on economic benefits of the
project to the shire, the region and the state. This assessment should be seen as indicative and may change
considerably when full project costs are developed some time in the future.
At this early stage, the social and economic impact assessments focus solely on the construction phase of the
marina itself, not future commercial or residential developments associated with the marina.
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Social Impact Assessment
Labour Force Impacts
The proposed Shark Bay marina development is expected to impact on the labour market of the immediate
Shark Bay area, during both the construction and operational phases, in terms of labour and skill
requirements. There is considered to be a strong likelihood and opportunity for the continuity of a
construction workforce from other developments in other regions in the north west of the state, in particular
from the Pilbara where major construction projects are beginning to wind down.
It is estimated that the required construction workforce for the Shark Bay marina would be an additional
labour demand of approximately 49 Full Time Equivalent (FTE) workers on average, with a peak of 70 positions
in the last 6 months of the construction phase.
Current skill availability is expected to enable approximately 27% or 19 FTEs of the labour requirement to be
sourced from within the Shire of Shark Bay if available. ABS (2011) estimates the Shark Bay construction
workforce to be 30 workers which may make it difficult to recruit 19 FTEs from the shire. The largest labour
component of 20 truck drivers may be sourced in the Gascoyne or Geraldton areas, dependent on where the
limestone for the breakwater is sourced. Professional and managerial workers may need to be sourced from
Perth.
Community Values and Lifestyle
The proposed development has the potential to impact on elements of community values and the lifestyle of
the immediate area. This is primarily due to the size and scope of the proposed development in comparison to
the current characteristics of the Shark Bay community. Community consultations were undertaken to assess
the residents attitudes towards toward the marina. A large majority were in favour of the development.
A small number of residents were opposed to a marina development, citing reasons such as:
Perceptions that a marina will generate more seaweed, which is already a problem. Perceptions that it would ruin the feature of the waterfront;
However, the number in favour of the development and its various components such as public moorings and
an additional boat ramp was consistently about 80%.
Property Access and Relocation
The proportion of the construction workforce that is not currently residing in the region is anticipated to seek
rental accommodation where available, with relatively less expensive short stay accommodation such as
caravan parks and motels being a secondary option. The supply of rental properties in the immediate area will
likely be under pressure during construction causing rapid growth in the cost of accommodation and placing
an increasing financial burden on low---income families in the region.
Road Access, Mobility and Safety
The increase in traffic, particularly during the construction phase, has the potential to reduce access and
mobility through increased congestion, which will also impact travel times and safety risks on adjacent roads.
However the impacts are thought to be manageable.
Implications for Future Development in the Local Area
Outside the footprint of the site itself, it is not anticipated that the Shark Bay marina development will
constrain land use in the surrounding area. The development will provide opportunities for existing business
growth and expansion due to enhanced local access to the marina and its associated facilities, particularly forbusinesses in related marine services and tourism.
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expenditure will be retained within local (Shire of Shark Bay) and regional (Gascoyne and or Mid---West)
economies, dependent upon where the limestone is sourced from. Up to 86% ($52.5million) will be retained
within the state of Western Australia.
Each of the three jurisdictions is detailed below.
The economic impact of the Shark Bay marina construction on the local economy is through the direct
employment of Shark Bay workers on the project and the flow---on effect of expenditure by non---resident
workers in the local economy over the 18 months of the construction project. This flow ---on includes
accommodation sought by non ---resident workers at the project. The estimate of local employee numbers is
based on:
A portion of the truck drivers --- 6
Machinery operators ---2
General hands ---3 and
The parking team ---10 (car park workers will only be required for the final month of construction).
The additional anticipated economic impact of the marina construction phase on the local Shire of Shark Bay
economy is estimated to be:
Approximately $19.45 million of output to the economy of the Shire of Shark Bay ($8.45 million
directly and $11 million as flow ---on)
Approximately $7.6 million of value added ($4.5 million directly and $3.1 million as flow---on)
Approximately $6.9 million as income ($2.3 million directly and $4.6 million as flow---on) and
27 FTE positions (13 directly and 14 indirectly)
Economic Impact of the Marina Construction Phase on the Shire of Shark Bay
ImpactOutput
($M)
Gross Value
Add ($M)
Income
($M)
Employment
(FTE)
Shire of Shark Bay
Direct Impact $8.45 $4.5 $2.3 13
Indirect Impact $11.0 $3.1 $4.6 14
Total Impact $19.45 $7.6 $6.9 27
The additional anticipated economic impact of the (primary) marina construction phase on the regional
economy is estimated to be:
Approximately $40.7 million of output to the regional economy ($26.4 million directly and $14 million
as flow---on)
Approximately $14.6 million of value added ($8.5 million directly and $6.1 million as flow ---on)
Approximately $8.9 million as income ($4.6 million directly and $4.3 million as flow ---on) and
113 FTE positions (59 directly and 55 indirectly)
Economic Impact of the Marina Construction Phase on the Gascoyne and Mid ---West Regions
ImpactOutput
($M)
Gross Value
Add ($M)
Income
($M)
Employment
(FTE)
Gascoyne/Mid---West Region
Direct Impact $26.4 $8.5 $4.6 59
Indirect Impact $14.0 $6.1 $4.3 55
Total Impact $40.7 $14.6 $8.9 113
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It is anticipated that the impact on the state economy will include:
Approximately $113 million of output to the state economy ($56.1 million directly and $56.7 million
as flow---on)
Approximately $43.5 million of value added ($19 million directly and $24.5 million as flow ---on
Approximately $26.6 million as income ($11.7 million directly and $14.9 million as flow ---on) and
193 FTE positions (74 directly and 119 indirectly)
Economic Impact of the Marina Construction Phase on the WA State Economy
Output ($M) GVA ($M) Income ($M)Employment
(FTE)
Direct Impact $56.1 $19.0 $11.7 74
Indirect Impact $56.7 $24.5 $14.9 119
Total Impact $113.0 $43.5 $26.6 193
In summary, the quantitative component of the EIA indicates that the project would deliver substantial
economic benefits to the shire, to the region and to the state of Western Australia.
Qualitative Assessment of Economic Impact
In conjunction with the quantitative assessment of the EIA, it is necessary to consider qualitative factors that
are difficult to quantify but should be considered. These are discussed below.
Impact on Existing Businesses
The Shark Bay marina development provides opportunities for local businesses to grow and expand their
business and improve their links with other businesses in the local area. The marina will enable increased
tourism visitation to the region, resulting in increased tourism expenditure captured by existing local
businesses and providing opportunities for increasing hospitality and tourism related services in the region.
Additionally, the marina and associated land---based aspects of the development provides opportunities for
investment in the region, with the potential for flow---on expenditure and wealth generation. There could be
concerns about the impact of the construction phase and the increase in marine traffic in the Shark Bay area
but these can be managed through appropriate mitigation strategies.
Distributional Effects of the Shark Bay Marina Development
Distributional effects refer to the way in which the economic impact of the development is expected to accrue
to individuals and groups. The construction phase will generate a demand for construction workers and
materials as well as other construction support services such as plant and equipment supplies. This demand is
expected to be greatest in the region with any additional needs being met by the state economy, althoughsome specialist services (for example, design and architectural services) may need to be brought in from
outside the region.
During the operational phase of the development, the distributional effects are likely to be determined by the
ability of local businesses to meet the needs of the additional visitors to the area, which would appear to be
strong given that the prevailing economic driver in the region is tourism. Where local businesses are able to
meet the needs of visitor demand, this will increase revenue for business owners and create additional local
employment opportunities across a range of sectors including:
Land and marine based tourism operators
Maritime support industries
Marine supply companies Land sales
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Short stay accommodation and
Cafs, shops, restaurants and bars
Beyond the benefits to businesses directly involved in either the construction or retail/commercial sectors, the
additional activity associated with the construction and operation of the Shark Bay marina development is also
likely to have a flow---on economic impact across other sectors of the regional economy.
Impact on Property Prices
It is anticipated that any potential impact on property values during construction would be short ---term and that
there would be a net increase in property values following the completion of the development. Additional
services, including those directly associated with the development, such as the marina, retail and commercial
developments would be expected to add to the value of property prices in the surrounding area.
Implications for Future Developments in the Local Area
The Shark Bay marina development and associated land based developments have the potential to encourage
future economic development in Shark Bay, largely related to expansion of commercial and retail businesses
and the marine services industry. The upgrade would be expected to improve facilities and increase the sizeand number of vessels that could be accommodated.
Mitigation Measures
Mitigation measures should be developed to minimise any potentially negative impact of the Shark Bay marina
development on the social and economic environments and facilitate the potentially positive impact.
Mitigation could deliver the following outcomes:
Source as much labour as possible from the local labour pool
Reduce the potential impact on access to water for recreational boating
Integrate the values of the existing community and their lifestyle in the proposed development
Enhance recreational, leisure and employment options in the longer term
Facilitate local community access to recreational facilities provided by the project
Reduce the potential impact on the availability of short stay accommodation, rental prices and the
accessibility to traditional low---cost housing options
Ensure equitable access within the marina and its associated facilities for all persons
Retain as much construction expenditure as possible within the regional economy
Retain as much visitor expenditure as possible within the regional economy
Facilitate benefits to and opportunities for local business and
Reduce the potential impact on the availability of short stay accommodation for tourists during
construction
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Table of Contents
1. Executive Summary ........................................................................................................................ 2
2. Introduction .................................................................................................................................. 11
Report Structure ........................................................................................................................... 11
3. Shark Bay Marina An Overview ................................................................................................. 12
Shark Bay: Population & Demographics ....................................................................................... 13
Employment & Business Activity .................................................................................................. 20
Tourism At Shark Bay .................................................................................................................... 23
Residential & Commercial Property ............................................................................................. 26
4. Marinas in Australia and Western Australia: An Industry Audit ................................................... 29
Economic Value of Marinas in Australia and Western Australia .................................................. 33
Employment In Australian And Western Australian Marinas ....................................................... 36
5. Demand for Marina Berths in Western Australia ......................................................................... 37
6. Shark Bay Marina --- Development Assessment ............................................................................. 38
7. Commercial Development Potential ............................................................................................ 40
Target Markets for the Shark Bay Marina .................................................................................... 40
8. Residential and Tourist Villa Potential .......................................................................................... 42
9. Social Impact Assessment ............................................................................................................. 44
10. Economic Impact Assessment ...................................................................................................... 48
Appendix A: Input---Output Methodology ...................................................................................... 62
Appendix B: Marina Concept Plan, 3D Aerial Image and Project Concept Summary ................... 64
Appendix C: Water Based Construction Cost Estimates ............................................................... 68
Appendix D: Land Component, Infrastructure High Level Construction Cost Estimates ........... 69
Appendix E: Potential Scope of Work and Breakdown of High Level Estimated Costs of Marina
Feasibility Study ............................................................................................................................ 70
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2. Introduction
Project Background
The Shire of Shark Bay is investigating, with input from the Department of Transport, the feasibility of
developing a marina in the town of Denham. If the project proceeds to construction, the Shark Baymarina will be located adjacent to the town of Denham, on the Coral Coast of Western Australia.
While the nature of the development is in the early planning stages, the marina may comprise marina
berths, a marine/boating services cluster, residential/tourist villas, a small commercial centre and
residential and commercial lots.
Purpose of the Study
This study, prepared by Brighthouse, seeks to develop a business case for or against the next stage of
development, a full feasibility study. In preparing this report, a preliminary market and social and
economic impact assessment for the development of the Shark Bay marina has been
undertaken.
Specifically, the study investigates the following specific issues:
Socio---economic profile and future outlook for the town and region
Marina berths pricing and leasing
Residential/tourist villa pricing and leasing
Land sales
Commercial centre scale, tenancy mix and rents and
Marine services scale, tenancy mix and rents
The study provides the necessary information for the Shire of Denham to move forward with the next
stage of a full feasibility study for the development of the marina.
Report Structure
Chapter 3: Shark Bay Marina: An Overview Description of Shark Bays characteristics, the planned
development and the planning context.
Chapter 4: Shark Bay: Socio ---Economic Audit & Forecast Overview of the population, demographic,
industry (including tourism and economic characteristics of Shark Bay) now and into the future.
Chapter 5: Marinas in Western Australia Summary of marinas in Western Australia and a
comparative analysis of the facilities and services at selected marinas.
Chapter 6: Shark Bay Marina Analysis of sales and leasing prices for marina berths across Western
Australia and suggestions for potential revenue from sales and leasing at the marina.
Chapter 7: Commercial Development Potential Assessment of the potential development options
for retail and commercial services at the marina.
Chapter 8: Residential Development PotentialAnalysis of residential sales and tourism rental prices
and suggestions for the development of residential lots and/or residential dwellings on adjacent land.
Chapter 9: Shark Bay Marina, Social Impact Assessment Assessment of the potential social,
community and cultural impacts on the local community as a result of the project and recommended
mitigation measures to alleviate negative impacts.
Chapter 10: Shark Bay Marina, Economic Impact Assessment Assessment of the potential economic
benefits and flow---on from the project to the Shire of Shark Bay, Gascoyne region and the state of WA.
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3. Shark Bay Marina An Overview
The Shark Bay shire council is investigating the feasibility of constructing a marina in the town of
Denham. A preliminary concept plan attached to this report as Appendix B describes the potential
uses of the marina zone. Coastal engineering design consultants, M P Rogers & Associates, provided
the preliminary marina concept engineering design to which Brighthouse has added the land---basedpotential uses.
High---level construction cost estimates for the marina breakwater, pens and jetty construction and
associated marine infrastructure has been supplied by M P Rogers and included as Appendix C.
High---level construction cost estimates for the forward works associated with the land development
have been included in the table attached as Appendix D. These estimates were sourced from research
of similar projects and with the assistance of Benchmark Projects, which was engaged as Project
Manager for the Mandurah ocean marina and the Albany marina.
A suggested scope of works for the feasibility study and high level cost estimates are attached as
Appendix E.
Facilities and Services
The Shark Bay marina may be built in two stages where the first stage would include the breakwater
construction and a number of boat pens (100 may be a first stage target) and could comprise the
following facilities and services:
Commercial Centre:
Take---away foods
Restaurant
Marina office --- to manage marina berths: rents, sales and ownership
Tourist booking office
Marine services:
Chandlery
Marine engine sales and repairs
Upholstery and boat trimmers
Marine electronics
Boat repairs
Painting and antifouling
Trailer boat storage
Fuel
Land Sales and Tourist and Residential Accommodation
The development site area of 6.1 hectares does not include the additional reclaimed land from the
marina development. In addition to the potential uses listed above, there is sufficient land to provide
for tourist accommodation in the form of short---stay apartments (over the retail/commercial
development indicated at the marina boardwalk on the concept plan), residential and commercial
lots, residential townhouses and a holiday chalet village.
The sale/leasing of the land ---based components will improve the viability of the marina project.
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Shark Bay: Population & Demographics
The Shire of Shark Bay is one of four LGAs in the Gascoyne region in the north west of Western Australia. With a
population of 857, the Shire of Shark Bay is considerably smaller than the shires of Carnarvon or Exmouth,
but more populous than Upper Gascoyne. The shire boundaries and population of each of the four Gascoyne
shires is shown below.
Gascoyne LGAs Population and Location
Population Trends
Denham is the main community and service centre in the Shire of Shark Bay. Denhams population has
demonstrated relatively slow growth over the last decade, averaging 0.7% growth per year compared to 2.3%
at the State level.
Denham, the Shire of Shark Bay and the Gascoyne region have grown at a slower pace than WA in the last
decade.
Population Trends
Population
Region 2001
2006
2011
2001---
2006
2006---
2011
Town of Denham 589 607 636 0.60% 0.94%
Shire of Shark Bay 796 823 857 0.65% 0.81%
Gascoyne 8,476
8,888
9,291
0.76%
0.89%
Western Australia 1,851,252
1,986,249
2,239,170
2.24%
2.43%
Source: ABS, 3218.0
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The population of Shark Bay is expected to continue to grow slowly at a pace of just over 1% over the coming
years to reach 1,053 in 2026.
Population growth rates in the four Gascoyne shires is projected to remain slower than state averages.
Population Projections
Local Government
Area/Region
2011
Population2016 2021 2026
Carnarvon 5,787
5,974
6,312
6,500
Exmouth 2,393 2,831 3,000 3,100
SharkBay 857
912
967
1,053
UpperGascoyne 334
390
420
470
Source: ABS 2011
The forecast population growth is shown for each year in the figure below.
Population growth rates in the Shire of Shark Bay is projected to remain slower than state averages.
Population Projections
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After a one year spike in population growth of 3.8% in the year 2011 ---2012 the projected growth of the Shark
Bay population will return to a long run average of 1% per annum until 2025.
Shark Bay's projected rate of growth will be above the Gascoyne region, which will shrink.
Population Projections
Demographic Trends
Shark Bay records an older age profile overall. The average of Shark Bays residents in 2011 was 46.7 years,
compared with the Western Australia average of 36.0 years. Shark Bay recorded 17.8% of its population was
aged 65 years and over in 2011, considerably higher than the Western Australia average of 12.4%. There were
also a significantly higher proportion of people aged 55---64 years, at 18.1%. On the other hand, Shark Bay
recorded significantly lower proportions of children and younger persons relative to Western Australia
averages.
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The population of the Shire of Shark Bay is older than the WA average, less likely to have children l iving at
home and have a significantly lower household income.
Demographic Characteristics, 2011 Census
Indicator Shark Bay Western Australia
Population
Total population 857 2,239,570
Indigenous population (% of total) 10.2% 3.1%
Age Distribution
0---14 years 13.0% 21.3%
15---24 years 7.4% 13.8%
25---34 years 12.7% 14.2%
35---44 years 12% 14.9%
45---54 years 24.2%
13.7%
55---64 years 14.1% 9.7%
65+ years 17% 12.4%
Average age (years) 46.7 36.0
Family Type
Couple family with children 27.0% 44.7%
Couple family without children 60.6% 37.4%
One parent family 11.7% 16.0%
Other families 0.6% 1.8%
Persons per household 1.8 2.6
Housing
% of households fully owning home 30.7% 36.6%
% of households purchasing home 16.1% 25.2%
% of households renting 52.7% 30.1%
Finances
Average weekly household income $542 $885
Source: ABS 2011 Census
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Education and Skills
The Shire of Shark Bay has a lower proportion of the population who have completed year 12 (41.4%) than the
Gascoyne region or WA overall. Shark Bay had a higher proportion of residents that left school after
completing years 11 or 10 (35.3%) than the Western Australian average (24.7%), indicating a higher proportion
of residents leaving school early to pursue careers in various trades and services.
Shark Bay has a high proportion of residents, having left school between years 10 12, to pursue work
opportunities.
Highest Year of Schooling Achieved (persons aged 15 years and over) 2011
Highest Year of Schooling Achieved Shark Bay Gascoyne Western Australia
Year 12 or equivalent 41.4% 43.8% 54.3%
Year 11 or equivalent 17.4% 14.1% 11.1%
Year 10 or equivalent 35.3% 27.4% 24.7%
Year 9 or equivalent 5.1% 7.3% 4.8%
Year 8 or below 4.0% 7.0% 4.5%
Source: ABS (2012a)
Education/qualifications, by usual place of residence, Shark Bay versus Gascoyne region and Western
Australia, 2011.
This education profile is reflected in occupations of the Shark Bay LGA. The region had a significantly lower
proportion of white collar workers and a higher proportion of blue collar workers in 2010---2011 compared to
Perth SD and WA. This is illustrated in the figure below.
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Accordingly, the shire has a higher proportion of blue---collar workers than the state average.
Employment by Occupation, 2011 ---2012
Income
Regional centres commonly have below average income levels. A review of Australian Tax Office (ATO) data for
2011/12 appears to validate this view, with Shark Bay LGA residents having considerably lower personal, family
and household incomes than other Gascoyne communities and Western Australia overall.
With the exception of Upper Gascoyne, incomes in the Shire of Shark Bay are relatively low.
Income, by Usual Place of Residence, by Income Group, Shark Bay versus Gascoyne region and Western
Australia, 2011
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Indigenous Population
Over 10% of Shark Bays population is indigenous which, despite being significantly higher than the average
indigenous population across Western Australia, is a smaller proportion than the average across other north
west regions of WA, the Pilbara and Kimberley region. It should be noted that indigenous population statistics,
within regional and remote Australia, are subject to a range of data quality concerns due to the small
population size, dispersion of the Indigenous population, the manner in which Indigenous persons are
identified in statistical collections and cultural considerations. Therefore, the proportion of the indigenous
population in Shark Bay could be larger than what is reported. The indigenous population in regional areas
often lives outside the major settlements in small, remote and regional areas and therefore are not reported.
Employment & Business Activity
ABS Census (2011) data on employment by industry indicates there were 425 workers in the Shire of Shark
Bay. Of this total, the accommodation and food service sector is the largest employer with 80 workers.
Another 35 people are employed in the retail sector, which also serves the tourism industry. In total, 115
workers fully or partly service the tourism industry.
Mining is the second largest sector in Shark Bay LGA, employing 67 people. Other important sectors in terms of
employment within the LGA include state government administration, education and training and transport.
This industry structure suggests that Denham and Monkey Mia have a robust tourism sector and that Denham
in particular is already functioning as a regional service centre in the Shark Bay region.
Denham has a well---diversified industrial and employment landscape, which should shield the community in
economic downturns with mining, tourism and administration as key employers.
Employment by Industry, Shire of Shark Bay (2011/12)
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With close to 80 employees, the accommodation and food services sector is easily the largest employer in
the Shire of Shark Bay.
Industry of employed people 2011
Source: ABS 2011
The occupations well represented in the Shire of Shark Bay include technicians, trade workers. machine operators and
drivers. The strong presence of these occupation types suggests local labour could be secured for some of the positions
required in the marina construction.
Shark Bay has a relatively high proportion of tradesmen, machine operators and drivers.
Occupation of employed people 2011
Occupation Shark Bay Gascoyne Western Australia
Managers 10.6%
11.3%
13.9%
Professionals 10.3% 16.2% 18.9%
Technicians and Trades Workers 15.1%
13.9% 16.7%
Community and Personal Service Workers 9.9% 11.9% 8.9%
Clerical and Administrative Workers 12.1%
11.5%
9.9%
Sales Workers 8.1%
6.2% 9.6%
Machinery Operators and Drivers 9.4%
6.8%
4.9%
Labourers 16.4%
20.1%
12.7%
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2007 2008 2009 2010 2011
COUNTS OF BUSINESSES, INCLUDING ENTRIES AND EXITS
NUMBER OF BUSINESSES ---at 30 June
Number of non---employing businesses 43 43 45 45 43
Number of employing businesses: 1---4 employees 21 20 18 19 18
Number of employing businesses: 5 or more employees 18 18 19 19 19
Total number of businesses 82
81
82
83
80
Number of non employing business entries --- 10 11 8 7
Number of employing business entries: 1 ---4 employees --- 4 3 4 3
Number of employing business entries: 5 or more employees --- 0 0 0 0
Total number of business entries --- 14 14 12 10
Number of non employing business exits --- 12 9 8 10
Number of employing business exits: 1 ---4 employees --- 3 0 3 0
Number of employing business exits: 5 or more employees --- 3 3 3 3
Total number of business exits --- 18 12 14 13
Of the shire's 80 businesses, a little over half are sole proprietorships.
Business Counts
A count of businesses in the 2011 census found some 80 businesses in operation during this time. The majority
of these were non employing (43) followed by small businesses employing more than 5 staff (19) and
businesses employing between 1 and 4 staff (18).
Business counts have remained fairly steady, but of concern is the decline of businesses employing 1---4 staff
and the decline in new businesses starting up over the same period.
Business Counts
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Tourism at Shark Bay
Shark Bays tourism product is based on the natural environment and focuses on the pristine state of local
beaches, reefs and the beauty of the region. Unique experiences such as seeing the dolphins at Monkey Mia,
the Stromatolites at Hamelin Pool, camel rides at Monkey Mia, fishing and yacht charters and other aspects of
interacting with the natural environment abound.
Average Annual % Visitors to Shark Bay, 2011
Estimated Visitors
Domestic
61,700
65%
International
33,500
35%
Total
95,200
100%
Estimated Visitor Nights
Domestic
275,700
N/A
International
N/A
N/A
Total
N/A
N/A
Average Length of Stay (Estimated Nights)
Domestic
4.5 ---
International
N/A ---
Total
N/A ---
Source ---TRA 2011
Purpose of Visit
Estimated Domestic Visitors
Holiday or Leisure 48,700 79%
Business 4,700
8%
Visiting Friends and Relatives 1,700 3%
Other 6,700 11%
Estimated International Visitors
Holiday or Leisure 33,100 99%
Visiting Friends and Relatives 200 1%
Business 100 0%
Other 200 1%
Source ---TRA 2011
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Estimated Domestic Visitors
Hotel, Resort, Motel or Motor Inn
23,000
37%
Caravan Park
14,300
23%
Rented House, Apartment, Flat or Unit
7,000
11%
Estimated International Visitors
Caravan
14,000
42%
Hotel, Resort, Motel or Motor Inn 9,600
29%
Backpacker/Hostel
8,600
26%
The tourism market is highly seasonal with significant swings in visitor numbers throughout the year. The peak
season is in the June and September quarters. As a result, there is considerable volatility in the
accommodation sector with the peak season delivering occupancy rates of 60---65% and the low season of 30---
40%. This type of seasonality can provide some difficulty in delivering a sustainable and profitableaccommodation sector. Other small businesses in the Shire of Shark Bay that rely on the tourism sector are
also impacted.
Generally, seasonality of demand for visitor accommodation in Shark Bay can be broken down into four
segments of the calendar year:
1. January to March: Low Demand
2. April to May: Low---Medium Demand
3. June to August: High Demand
4. September to December: Medium---High Demand
A relatively stable supply of highly seasonal visitation translates into a highly volatile occupancy rate for
accommodation establishments in Shark Bay. As illustrated in the chart below, site occupancy rates for Shark
Bay caravan parks have ranged from a high of 89.9% in the September quarter in 2006 to a low of 17.3% in the
March quarter in 2010. And while annual occupancy rates are less volatile, they have exhibited a clear
downward trend from 47.9% in the year to June, 2006 to 43.0% in the year to June, 2010. This puts the
average quarterly occupancy rate at only 44.5% for caravan parks in Shark Bay over the period.
Similarly, as shown in the chart below; room occupancy rates for hotels, motels and serviced apartments at
Shark Bay are also very volatile, fluctuating between 91.0% in the September quarter, 2006 and 35.4% in the
March quarter, 2010. However, this translates into an average quarterly occupancy rate of 52.6% for hotels,
motels and serviced apartments in Shark Bay over the period, which is higher than the 44.5% average for
caravan parks.
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%
ShareofTotalVisitorNights
Shire of Shark Bay ---Room Occupancy Rate Comparison, March 2005 to September 2011
100
90
80
70
60
50
40
30
20
10
0
Roomoccupancyrate Roomoccupancyrate(annual) Siteoccupancyrate Siteoccupancyrate(annual) MissingData
Source: ABS 2011
Note: Hotel, motel and serviced apartment occupancy rates apply to establishments with 15 or more rooms pre---
September, 2010.
As is the case with most north west tourism destinations, caravans and camping make up a largeproportion of visitor accommodation while in Shark Bay.
Caravan Share of Total Visitor Nights, Shark Bay, March 1999 to December 2011
80%
70%
60%
50%
40%
30%
20%
10%
0%
Source: TRA 2011 A Reason for Visiting, Shark Bay LGA---2000 2010
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Residential & Commercial Property
The Denham residential property market is a relatively small one, with data from the Real Estate Institute of
WA (REIWA) and from consultations with Ray White Denham indicating only around 20---30 properties sold in
the immediate area each year. Of these, 20% would be land sales with the remaining 80% being house and
land, or 16---24 properties.
Median house prices in Denham nearly tripled between the March quarter, 2002 ($145,000) and the
December quarter, 2009 ($395,500). Over the same period, the median house prices in other Gascoyne
centres also rose at a similar rate.
However, in 2010, the median house price in Denham dropped 25% to $290,000. Since that time the market
has stabilised with low demand, little price growth and significant product being offloaded presently. This is
confirmed by discussions with local real estate agents, and online searches of properties for sale and rent
indicate there is significant local product on the market in the Denham area at the moment.
The property hotspot of the Gascoyne region is clearly Exmouth where the median house price rose steadily
from being on par with Denham in 2002 to peak and then stabilise at $500,000 from 2008 through to 2012.
Exmouth serves as a useful case study for Denham with a large marina and waterfront residential and
commercial property precinct developed over a number of years. A selection of Exmouth properties will be
discussed later in this section.
Median house prices in Denham dropped considerably in 2010 though this is likely due to a small number of
sales, where a couple of very low prices drag down the mean.
Median House Prices, Various Gascoyne Region Towns versus Perth Metropolitan, 2002---2012
As can be seen in the chart below, the Shire of Shark Bay has experienced steep spikes in non---residential
building value over the past decade. This is to be expected when large commercial projects such as tourism
accommodation projects are infrequent but large value investments. It should also be noted that non---
resident