Yaringa Marina Development Project

Prepared by
March 2009
Postal address: 19 Gyro Court Gisborne South VIC 3437
Tel: 0400 995 363 E-mail: [email protected]
matters more consulting pty ltd PAGE 1
Table of Contents
2.2 Central Coastal Board Boating Coastal Action Plan............................................................ 10
2.3 Victoria’s Tourism Industry Policies ..................................................................................... 10
2.4 Mornington Shire Economic Sustainability Strategy (draft) ................................................. 11
2.5 Mornington Peninsula Tourism Strategy ............................................................................. 12
2.6 Policy Context Summary ..................................................................................................... 13
3. Demand and Supply Analysis .......................................................................................... 14
3.1 Market Demand ................................................................................................................... 14
3.2 Market Supply ...................................................................................................................... 15
3.3 Market Conclusion ............................................................................................................... 16
4. Economic Impacts ............................................................................................................. 17
4.5 Visitor Expenditure Employment.......................................................................................... 19
INTRODUCTION
Matters More Consulting Pty Ltd has been commissioned by Connell Wagner, acting as planners for Yaringa Marina, to undertake a preliminary economic impact assessment of the proposal to develop additional marina and accommodation facilities at the existing marina on Western Port in Victoria.
The report presents the following:
- Description of the project including the existing marina and its current role, its location and the region in which it operates;
- Policy context, comprising a review of current relevant government policies at state and local level;
- Outline of the previously identified demand for marina berths and existing supply in the wider region;
- Assessment of the economic impacts of the proposed project; and
- Summary and conclusions of the analysis.
1. THE PROJECT
1.1 Introduction
This section provides a description of the existing Yaringa Marina and its history, the project proposal, and the region in which this proposed project is located.
1.2 Location
Yaringa Marina is located at the north-western point of Western Port, as shown in Figure 1. It is 6 kms east of Somerville and the north-south running Frankston – Flinders Road, while Western Port Highway (Dandenong - Hastings Road) is approximately 4 kms west from the marina.
The location benefits from being less than one hour by car from the Melbourne CBD and is easily accessible by a resident population catchment of some 4 million people. Travel time to the region has been significantly reduced by the completion of the EastLink, and the proposed Frankston Bypass will further reduce travel time to Yaringa Marina from Melbourne.
Figure 1: Map of Western Port; location of Yaringa Marina
Source: Natmap Digital Maps 2008, Geoscience Australia
1.3 Existing Marina
The first jetty at Yaringa was built in 1960, making Yaringa the oldest marina on Western Port. In early years, boats were berthed on the mud and the bay was only accessible at high tide. With regular tides in excess of 2 meters, this arrangement was not suitable in the long run. In 1986, an all-tide access marina was therefore established allowing boats to be berthed in wet berths or in the extensive on-land storage area of Yaringa Marina.
The all-tide marina has slowly developed over its 22 year existence, upgrading facilities at a measured pace as finances and demand has dictated. Today, it remains a low-key marina with a steadily growing base of loyal customers, accommodating a mix of boats, including small fishing vessels, motor boats and cruisers and yachts of various sizes and up to 15 meters in length. Approximately 600 boats are currently stored at Yaringa Marina, of which 150 are in wet berths and the remaining 450 are stored at the significantly large hard-standing land storage area with covered and uncovered storage.
Regular users of the marina include The Dolphin Research Institute, Tide Master Environmental Tours, universities for student research field trips, fishing clubs and boat clubs, and visiting yachts from Western Port, Port Phillip Bay, Tasmania and further afield. Likewise the marina is a popular destination for outings for groups from, for example, special needs schools, hospitals and aged care facilities, photography and art classes, and general tourists. The Yaringa Marina Restaurant is also a noted venue for functions and celebrations.
Increasingly, the marina is becoming an important marine service centre. Slipping services are provided by the marina’s Travel Lift with capacity to slip boats of up to 40 tonnes for inspection, cleaning, antifouling, or storage. This capacity is extensively used by visiting boats that utilise the clustered marine services provided by on-site operators, and travel lift usage now exceeds 500 lifts per annum. With approximately 18-20 businesses operating from Yaringa (refer Table 1 below) it effectively represents a cluster of marine services that is unparalleled in breadth in Victoria. In total, these businesses are estimated to have an annual turnover in excess of $10 million dollars according to estimates provided by the Yaringa Marina operator.
Table 1: Yaringa Marina Marine Business Directory
Business Name Service type Employment
Clow Marine Electronics Marine electronics 2
David Ryan Sails Sail-maker 2
GHD Studios Fibreglass manufacturing, repairs, repainting, re-fits 2
GHD Studios Painting and boat refurbishment 8
John Bakker Painting and boat refurbishment 2
Kojak’s Boatshed Boat detailing, tyres 3
Maintenance Engineering Solutions Metal fabrication, marine engineering 3
Peninsula Marine Covers Boat covers, upholstery & repairs 1
Superior Masts & Rigging Yacht masts aluminium/SS welding 2
Supreme Marine Outboard mechanic, outboard motors/stern drives/trailers 4
The Yacht Doctor Yacht maintenance and repairs 1
Yaringa Boat Harbour Marina Pens & Dry boat storage 8
Yaringa Boat Hire Boat hire, 7-day per week, fishing boats 1
Yaringa Boat Sales Used boat sales 1
Yaringa Boat Services Slipping and slipway services 2
Yaringa Chandlery Chandlery, gift shop, ice, bait, tackle 1
Yaringa Marina Restaurant Restaurant, fully serviced for lunch and dinner 7 days /week 9
Yaringa Waterside Kiosk and Takeaway Kiosk breakfast and lunch 7 days/week 2
Total 54
Four fishing charters also operate from the marina on a full or part time basis depending on weather and demand. These are:
- Reel Adventure operates with 2 – 3 people;
- The Bay Runner operates with 1 – 2 people;
- Top Gun operates with 1 – 2 people; and
- Christina (trailer-able boat) – operates with 1 person.
In total, it is estimated that approximately 60 people are employed at the marina on a full time or part time basis.
Service and maintenance staff, including cleaners, casual labourers, and administration and accounting services are employed by these businesses on an as-required basis.
Additionally, limited visitor accommodation is available at the Western Port Harbour Caravan Park which is located adjacent to the marina. The caravan park comprises 55 sites, of which the majority are occupied on a permanent basis. Visitors can be accommodated in two park cabins, an on-site van, or at a limited number of tourist van sites.
1.4 The Proposal
Yaringa Marina is proposing to upgrade and extend its range of services. The development proposal aims to grow the number of boats and visitors that use the marina from the existing 600 boats to 1,000 boats by 2012. This upgrade and extension will improve the financial viability of the marine services cluster operating at the marina, allowing them to expand and would strengthen the role of Yaringa Marina as a one-stop location for boat servicing in Victoria.
The development comprises:
- Creation of a basin and lock connected to the existing marina with wet berth accommodation for 180 boats of up to 12 meters in length;
- Development of 180 accommodation units with on-site management to operate the accommodation unit leasing arrangements;
- Construction of an additional dry stack building and associated equipment;
- Construction of new factories and infrastructure at 3 Lumeah Road to replace rundown buildings and to accommodate expansion of marine services currently operating from the site;
- Construction of offices which will accommodate park rangers and water police (if required), the new boat sales business, and a Western Port museum. Offices will replace some existing run-down facilities which require modernisation; and
- Refurbishment of the existing harbour and upgrade of some of the existing wet berths to accommodate larger boats up to 20 meters.
A diagram of the proposed development is shown in Master Plan 04 on the following page.
YARINGA 2 & 4 LUMEAH ROAD SOMERVILLE VICTORIA 3912
MASTER PLAN
Copyright: ML Design (VIC) Pty Ltd Date: Monday, 1 September 2008 Drawn: KP Printed: Monday, 1 September 2008 File: O:\final\2007099\CAD\05 ArchiCAD\2007099 Project OPT 2.pln Project No. - Drawing No. - Revision No.:
2007099MP004
Level 2, 347 Flinders Lane, Melbourne VIC 3000
A.C.N. 100 387 326
T 61 3 8610 3700 F 61 3 8610 3777
[email protected] www.mldesign.biz
5. 14
5. 09
5. 38
5. 42
9
4.36
4.5 3
4.0 0
4.4 9
4.3 9
4.0 5
4.0 9
3.9 5
(2 49
.6 6)
0° 00
N O
R TH
10 CARSPACES
3
CARSPACES
7 CARSPACES BITUMEN CARPARK
TREATED PINE POST & HINGEJOINT TREATED PINE POST & CHAIN WIRE MESH
TR EA
TE D
PI NE
P O
SPIKE PLACED RL. 5.40
NAIL FOUND ON POST OF PONTOON RL. 4.10
SPIKE IN BITUMEN RL. 4.34
4.14 YARINGA BOAT HARBOUR FIELD WORK COMPLETED IN NOVEMBER 2003
51.23
45.64
1.5 The Region
Yaringa Marina is located in Mornington Peninsula Shire, which covers approximately 720km² of land and has an extensive coastline of some 190 kms. Mornington Peninsula has a scenic and often verdant landscape of rolling hills with water views from many high points on the Peninsula. The sandy and sheltered beaches on the north western shores of the Peninsula attract several million visitors each year, most of whom come from metropolitan Melbourne and many of whom have holiday homes on the Peninsula. The resident population in Mornington Peninsula Shire is estimated at 142,6801 (June 2007), with population growth of 1.42% from the previous year.
Western Port marinas, of which Yaringa is one of the largest, also serve the population of approximately 284,000 in the Casey-Cardinia growth area which is growing at 3.0% and 5.5% p.a.2 and forecast to increase by 136,000 – 169,000 people or approximately 68,000 – 85,000 new households by 20303. This area has one of the highest population growth areas in Australia and will result in a significant increase in demand for recreational facilities within the wider region.
Tourist visitation further augments the region’s resident population, particularly during summer and on weekends. The Peninsula Tourism Region which comprises Mornington Peninsula Shire and City of Frankston is the tourism region outside of Melbourne which receives the highest number of visitors with 4.4 million visitors in the year to September 2008. In comparison, the Yarra Valley and Dandenong Ranges received 3.4 million visitors, Phillip Island received 2.0 million and Daylesford and Macedon Ranges received 1.8 million visitors over the same period.
The economy of the region is diverse. Key industries4 in the Mornington Peninsula Shire with output valued at over $500 million per annum include:
- Manufacturing
- Construction
- Government Administration & Defence
Other significant industries with over $300 million and less than $500 million in output include:
- Mining (industry includes quarries)
- Accommodation, Cafés & Restaurants
Industries of employment in Mornington Peninsula Shire are not identical to the industries generating significant output due to the difference in input mix of labour, capital and skills/technology. The industries with the highest employment levels5 include:
- Retail Trade (15.7% of jobs in Mornington Peninsula)
- Health Care & Social Assistance (12.6% of jobs)
- Manufacturing (10.4% of jobs)
- Construction (9.5% of jobs)
1 ID Consulting, accessed through Mornington Peninsula Website http://www.id.com.au/profile/Default.aspx?id=118
2 ABS Cat 3218.0 Regional Population Growth Australia, 2005-06 3 Casey-Cardinia Growth Area Plan, Growth Areas Authority, DSE
4 Economic Sustainability Strategy, REMPLAN model data, draft September 2008
5 ABS 2006 Census data
Tourism is not included specifically in these figures as tourism is not measured as a separate industry. Instead, significant tourism generated employment is included in sub-level industries, such as accommodation (93.1%), cafés & restaurants (31.7%), clubs, pubs, taverns & bars (19.1%), and retail trade (8.1%)6.
Overall, there is an estimated 38,000 jobs (full time, part time or casual) in the Mornington Peninsula Shire. With a resident labour force of 57,800, there is a jobs deficit in the local economy of some 19,800 jobs. Additionally, the population growth in the Casey-Cardinia corridor will result in a requirement for some 100,000 – 140,000 new jobs to 2030 of which a large share is encouraged to be provided locally to reduce the need to commute long distances to work as stated in the Casey-Cardinia Growth Area Plan7.
Regional area population growth and increasing demand for recreational opportunities and jobs within the regional area are the key drivers for expansion at Yaringa Marina.
6 TTF Australia Tourism Employment Atlas 2005
7 Refer footnote 3
2. POLICY CONTEXT
Understanding the policies which guide development of marine and accommodation infrastructure on the Mornington Peninsula is important to provide understanding of the context in which the proposal sits. This section summarises recent relevant policies and strategies relating to the development proposal.
2.1 Victorian Coastal Strategy 2008
The Victorian Coastal Strategy 2008 (VCS) provides the State Government’s policy framework for planning and sustainable long-term management of coastal, estuarine, and marine environments in Victoria.
There are four key principles in the Victorian Coastal Strategy 2008, in order of importance:
1. Provide for the protection of significant environmental and cultural values;
2. Provide clear direction for the future;
3. Ensure sustainable use of natural coastal resources; and
4. Sustainable development on the coast.
Primarily, the third and fourth principles are more applicable to the development project at Yaringa Marina. Section numbering below refers to the guiding key principle.
Section 3.1.2 Boating is of particular relevance for Yaringa: this section provides the background, policy and actions for boating under the VCS. The VCS notes that boating in an important recreational and social outlet in Victoria, and that boat registrations are increasing at a faster rate than population growth, leading to an increase in demand for facilities for boat retrieval and storage. The policy response is to plan for sustainable delivery of boating facilities to meet the increased demand, taking safety, conservation objectives and quality of experience for beach users into consideration. The policy also states that access (new or existing) should be reviewed according to the recreational boat facility hierarchy that is provided in VCS Figure 11. Stated actions comprise (Action a) the implementation of Coastal Action Plans across Victoria, and (Action b) the development of a long-term strategy to develop safe boating facilities and infrastructure across Victoria at strategic sites.
It is noted that Yaringa is not included in the Recreational Boat Facility Hierarchy 2030 (VCS Figure 11), which only identifies Hastings and Tooradin in the north-western part of Western Port. The policy therefore does not correspond completely with Action a, which is to implement the Coastal Action Plan for the area. The Coastal Action Plan identified Yaringa-Tooradin as an area for investment focus, as discussed further in section 2.2 of this document.
VCS section 3.3 Tourism reiterates the importance of tourism as a key economic driver for Victoria, and the challenges involved in balancing the demand for appropriate tourism development and the policy to protect non-urban areas between settlements from development. The VCS accepts the planning principles set out in the Coastal Spaces: Inception Report8
regarding development of high quality visitor/tourist accommodation of appropriate scale and intensity of use in the coastal hinterland, under provision that accommodation is designed to prevent conversion to permanent residential occurring.
VCS section 4.3.1 Local Ports recognises the important recreation and tourism function of local ports as well as their role in providing access to the coast. The main issue with local ports is that often many agencies and authorities are involved in their management and responsibilities are not always clear. The policy response focuses on effective and efficient management of local ports, that any development considers climate change, storm tides, etc and that the community’s experience is enhanced. The VCS action for local ports is to develop a local ports strategy.
8 Coastal Spaces Initiative, 2005, Department of Sustainability and Environment
Yaringa Marina and its development project is supported under the VCS, in that Yaringa is a facility which is being upgraded to meet the demand improved and new boating facilities, and this is occurring at an existing facility where incremental environmental impacts are likely to be lower than at a new facility. Yaringa is recognised as being a strategic location for this provision of boating facilities in the local area’s Coastal Action Plan – summarised below – Coastal Action Plans being the recognised vehicles for implementing the strategic plans under VCS.
2.2 Central Coastal Board Boating Coastal Action Plan
The Boating Coastal Action Plan (2006) provides “regional guidance across government for the planning, management and funding of the network of recreational boating facilities” in the Central Coastal district of Victoria including Port Phillip Bay and Western Port.
The Boating Coastal Action Plan (BCAP) provides the framework and principles to guide planning for and coordination of upgrade of existing and development of new facilities across various stakeholders. BCAP’s focus is on the short and medium term planning horizon and its implementation would result in the network of boating facilities in 2030 will provide “a level of service that reflects the needs of the community”.
Guiding principles are provided as region-wide themes, supplemented with local goals and priorities for each of the 11 boating areas defined within the Central Coastal Board region.
Yaringa is located in Area 8 – North-West Western Port Boating Area, which extends from West Head near Flinders through to Pelican Point east of Tooradin. The goal for Area 8 is “to increase opportunities and levels of service for recreational boating, whilst acknowledging potential increase in commercial shipping and the sensitive Western Port marine environment”.
Three local policies have been adopted for Area 8, in addition to the region-wide policies, two of which are relevant for Yaringa.
Policy A8.1 states that the strategic focus of investment to significantly upgrade facilities will be at Hastings and at the Yaringa-Tooradin area; and
Policy A8.2 states that any new boating facilities should be developed within the environs of appropriately located existing facilities.
As Yaringa is included in this local coastal action plan, the implication of BCAP framework is that investment in upgrades to the facilities provided at Yaringa Marina is supported under the VCS action under 3.1.2 (b) to support the implementation of local coastal action plans.
2.3 Victoria’s Tourism Industry Policies
10-Year Tourism and Events Industry Strategy
Victoria’s overall strategic direction for tourism is set out in the 10-Year Tourism and Events Industry Strategy (October 2006), prepared by Tourism Victoria. As part of this overall framework, several more detailed strategies and plans have been developed. These include the Regional Tourism Action Plan 2009-2012 and Victoria’s Nature-based Tourism Strategy 2008- 2012, both of which are particularly relevant for Yaringa Marina.
Regional Tourism Action Plan 2009-2012
Released in its final version in December 2008, the action plan contains general strategies for tourism management and marketing hierarchy and priorities across Victoria, as well as specific priorities for the various campaign regions.
Yaringa is located in the Mornington Peninsula Campaign Region. Priorities for Mornington Peninsula focus on enhancing its reputation as a golf, family destination and food and wine destination in proximity to Melbourne offering a diversity of product. The action plan states that:
“The major opportunity for tourism development on the Mornington Peninsula is realising investment and supporting infrastructure priorities that enhance water-based and food
and wine experiences and leverage the region’s enhanced commercial viability due to its proximity to Melbourne”.
Tourism Victoria states that it will work with State Government agencies, the Regional Tourism Board, Local Government, investors and industry to facilitate priority projects, including safe boat harbours and boating facilities, over the 2009 – 2012 timeframe9.
Victoria’s nature-based tourism strategy 2008-2012
Nature-based tourism is one of the fastest growing tourism sectors, and Victoria is well placed to capitalise on this growth due to its many natural attractions, including an extensive and accessible coastline. Approximately 37% of domestic visitors and 77% of international visitors undertake at least one nature-based tourism activity during their visit. Fishing and boating are considered nature-based tourism activities and research presented in the strategy shows that 13% of domestic overnight and 6% of domestic day trip and international nature-based visitors go fishing during their trip.
However, for Victoria to be more successful in nature-based tourism it needs address gaps in what the strategy calls the five As – attractions, access, activities, amenities and accommodation. The strategy is specific in the need to improve or simply the planning process to facilitate a greater level of private investment into infrastructure and facilities that will enhance the visitor experience and increase Victoria’s competitiveness as a nature-based tourism destination. Specific mention is made of the leasing terms for Crown land, and site specific legislation under the Victorian Planning Provisions for development on private land abutting and adjacent to protected areas.
The VCS references this nature-based tourism strategy and importantly incorporates four principles to achieve coastal planning objectives and increase regional tourism investment as a result of the demand for accommodation and other built facilities in the coastal environment.
2.4 Mornington Shire Economic Sustainability Strategy (draft)
The draft Economic Sustainability Strategy (ESS) for Mornington Peninsula Shire was exhibited from September to December, 2008 and is expected to be finalised in early 2009.
The 2008-2013 ESS aims to provide a clear policy framework to guide sustainable economic development in the municipality. The strategy comprises –
- a policy framework
- a series of projects and actions with implementation timeframe and resource requirements, and
- key performance indicators for each policy element.
Economic output for the municipality is modelled using the REMPLAN model and agriculture and related industries are recognised as being important culturally and economically to the Peninsula. Specifically, the need to pursue ongoing investment in further development of the aquaculture industry – both freshwater and marine – and access to water infrastructure is recognised in the draft strategy10.
Tourism is identified as providing 4.8% or 5,370 jobs in the Peninsula region which comprises Mornington Peninsula Shire and the City of Frankston and generates annual expenditure of $534 million.
Activities at Yaringa Marina contribute towards these totals through the proportion of spending by visitors to the marina on items such as boat hire, boat servicing, and food sales from the kiosk and at the restaurant, etc. Note that while many of these visitors are from metropolitan
9 Regional Tourism Action Plan, Part B: Supporting Tourism Growth in Victoria’s Regions, p33
10 Economic Sustainability Strategy, 2008, draft,p5.
Melbourne, they are defined as ‘visitors’ when residing 50kms or more from Yaringa (definitions provided in Figure 2).
Priorities for infrastructure development needs which will support economic development in the local economy are set out in Section 5.12 Infrastructure in the ESS. The identified requirement for improved infrastructure for the tourism industry is relevant for Yaringa, mainly because it identifies a need for improved access for recreational boating. The policies in the ESS are therefore supportive of infrastructure development at Yaringa Marina.
2.5 Mornington Peninsula Tourism Strategy
Since 2005, the Mornington Peninsula Sustainable Tourism Development Plan has provided the framework for tourism development actions and priorities on the Peninsula. It is a comprehensive document and covers all aspects of tourism, from organisational and structural matters to skills and product development, marketing and investment gaps and priorities.
In the Plan, Western Port is identified as “a hidden treasure ….. one of a very few cool climate mangrove eco-systems in Australia and … of national environmental significance.” The Plan goes on to state that “Western Port provides fabulous ecotourism experiences as it is a haven for migratory birdlife and home to the World’s most southerly crop of White Mangroves.”11
In total, the Plan contains 44 Strategies under which are found 94 actions. The strategies and associated actions which are relevant to the Yaringa Marina development proposal include:
Strategy 4: Improve access to the Mornington Peninsula to and from the Bays, and Action 16 – Establish an upgrade program for moorings, jetties and piers to improve water access, in conjunction with Council and Parks Victoria.
Strategy 8: Facilitate new investment to meet accommodation needs, and Action 20 – Undertake research into the supply and demand for accommodation to identify accommodation gaps, for example in large-scale accommodation, world-class accommodation, budget accommodation and family accommodation.
Strategy 19: Use events to build off-peak visitation, and Action 54 – Identify off-peak events that could be established in traditional summer destinations (e.g. Portsea/Sorrento, Western Port) that will assist in changing visitor perceptions of these areas to being potential year-round destinations.
Strategy 20: Encourage greater repeat visitation from holiday home-owners and their visiting friends and relatives, particularly off-peak, and Action 56 – Establish specific marketing strategies to the holiday-home sector, focusing on promoting upcoming events and seasonal activities.
11 Mornington Peninsula Sustainable Tourism Development Plan, 2005, p39.
Figure 2: Definition of a Visitor
Day visitors are those who travel for a round trip distance of at least 50 kilometres, are away from home for at least 4 hours, and who do not spend a night away from home as part of their travel. Routine travel such as commuting between work/school and home is excluded.
Overnight trips are defined as trips involving a stay away from home for at least one night, at a place at least 40 kilometres from home.
Australian Tourism Research: Used in the National Visitor Survey for the purposes of identifying visitation trends.
2.6 Policy Context Summary
Expansion and upgrade of the facilities at Yaringa Marina appear well supported by a number of policies and strategies. In summary:
- Victorian Coastal Strategy – supports upgrade of facilities and development of sensitive tourist infrastructure including accommodation in coastal areas to enable visitors to enjoy these nature-based experiences;
- Boating Coastal Action Plan – identifies Yaringa as a ‘district’ level facility both at present and in the future, so Yaringa is a marina which will remain operational and development will be supported by the policy framework;
- Nature-based tourism strategy – highlights the importance of developing tourism infrastructure of high quality to enable visitors to enjoy Victoria’s nature-based assets and remain competitive at both the national and international level. Recognises the challenges faced by developers when proposing infrastructure development on or near Crown Land both due to the planning system and due to the short timeframe for lease of Crown Land on which a development may sit. Activities at Yaringa are defined as nature-based tourism and is a focus area for tourism development in the state;
- Regional Tourism Action Plan – prioritises opportunities on the Mornington Peninsula which enhance water-based and food and wine experiences targeting the Melbourne market;
- Mornington Shire Economic Sustainability Strategy – out in draft form, but it recognises the importance of tourism to the Mornington Peninsula economy and is supportive of infrastructure development which furthers tourism activities; and
- Mornington Peninsula Tourism Strategy – recognises Western Port as “a hidden treasure’ and highlights development of water-related infrastructure, and visitor accommodation, and initiatives which will encourage off-peak and repeat visitation, particularly to typical summer peak destinations.
3. DEMAND AND SUPPLY ANALYSIS
According to estimates by the marina operator, the additional wet berths are likely to be taken up within a 2-year period.
To underpin this estimate, this section provides a summary of analysis of market demand and supply that has been undertaken as background work for BCAP and for various marina development proposals in Victoria.
3.1 Market Demand
The Boating Industry Association of Victoria collects registration data from responsible authorities in Australia. Presented in Table 2, this data shows that recreational boating registrations have been on the rise across all states and territories over the 2003 to 2006 period.
Table 2: Recreational Boating Registrations – Australia 2003 - 2006
Location (State/Territory) June 2003 June 2004 June 2005 June 2006 Population
2006
New South Wales 190,000 196,234 203,393 217,844 6,817,182 1:31
Queensland 175,659 184,279 193,964 202,811 4,091,546 1:20
South Australia 50,000 51,844 55,100 56,400 1,568,204 1:28
West Australia 71,236 72,676 76,259 80,679 2,059,045 1:26
Tasmania 21,045 22,179 24,662 26,200 489,922 1:19
Northern Territory 25,000* 13,000 26,500 27,500 210,674 1:8
ACT 0 0 0 0 334,225 n.a.
679,931 689,763 733,662 770,021 20,701,488 1:27
Source: Boating Industry Association of Victoria, www.biavic.com.au accessed 13 January 2009, and ABS Estimated Resident Population Cat 3201.0
Victoria, with a total of almost 160,000 registrations, lags behind New South Wales and Queensland in number of registrations, and Victoria’s ratio of boat registrations to population is high, at one boat per 32 persons. Queensland and Tasmania, on the other hand, have relatively higher rates of boat ownership than Victoria, with one boat per 20 persons in Queensland and one boat per 19 persons in Tasmania. However, in Victoria the number of recreational boating registrations has increased by 2.6% per annum over the period from June 2003 to June 2006, while population growth over the same period was 1.4% p.a.12.
More than half of the registered boats are in the Central Coastal Board area13.
Further analysis of boat registrations in Victoria is provided in Bellarine Safe Harbour – Market and Demand Analysis by Strathcorp for Parks Victoria (2007). This report details the number of boats registered in various size categories for the year 2006. This data is relevant because boats over 8.6 meters in length are most likely to require a wet berth and are not trailerable. According to Strathcorp’s analysis, 3,902 boats or 2.46% of total registrations are over 8.6 meters in length and on average 144 additional boats per annum have been registered in this category in Victoria from 1996 to 2006. On average, cabin cruisers account for 70 new registrations p.a. while yachts account for approximately 50 new registrations p.a.
Volume 1 of the Boating Coastal Action Plan by the Central Coastal Board is a background report on boating facilities and trends. The background report contains analysis of demographic trends that are likely to lead to an increase in demand for boating facilities in Australia, boating trends in Victoria, and in demand by type of boat.
12 Estimated Resident Population ABS Cat 3218.0
13 Boating Coastal Action Plan, Central Coastal Board
According to the background report most boat owners own smaller boats, and on the Mornington Peninsula 40% of boat owners keep their boat at home14. The ownership data is supported by Boating Industry Association of Victoria data, which shows that 55% of boat owners have boats of between 4.1 and 5.5 meters in length as shown in Table 3. Importantly, the report indicates that as the population ages and the average house block decreases in size, it is likely that a greater proportion of these boats will be kept in dry storage near boat ramps instead of at home.
Table 3: Melbourne Boat Show Survey 2006
4.0 meters or
Source: Boating Industry Association of Victoria, www.biavic.com.au accessed 13 January 2009
In terms of supply of marina capacity, the report puts the number of marina berths in Port Phillip at over 3,000 and references work that “suggests that there is a general shortage of berths, even considering a number of proposals in various stages”. The report goes on to suggest that the relationship between demand and supply is not straightforward, but that lack of marina berths and the price of wet berths may have shifted demand towards smaller boats and that the ownership pattern may change if more wet berths are made available in more accessible locations and at a lower price. Conversely, ownership patterns may change towards a greater number of ‘time share’ boats if the costs associated with boat ownership increase further. These costs are estimated to be approximately $10,000 per year (in 2004) and covered wet berth rental, use of power and water, security, hull cleaning and general boat maintenance15.
Overall, the conclusion in the report is that “it is difficult to predict future boating demand as that demand is intricately linked to supply of facilities, services and destinations”16. It also states that many existing marinas are at capacity and have a high level demand for berths, and that there is demand for casual berthing infrastructure and regimes in key locations and destinations across the region. The report does not provide a quantitative estimate of the future demand for boating facilities; instead it provides a framework for response as demand arises building on the concept of a regionally based network of boating facilities.
3.2 Market Supply
In Port Phillip Bay, the existing marina berth capacity is estimated in the BCAP background report at “over 3,000 berths”. Furthermore, the number of berths is detailed in the Bellarine Safe Harbour study 17 which shows the location and number of existing berths at 3,749 at the following locations: Port Melbourne, St Kilda, Brighton, Sandringham, Mordialloc, Patterson Lakes, Mornington, Blairgowrie, Queenscliff, St Leonards, Port Arlington, Geelong and Williamstown. In Port Phillip Bay, there were additional planned berths at Docklands (600), Patterson Lakes (151), Frankston (300), Mt Martha (600), Portarlington (66), and Werribee South (1,000). This indicates that there is approximately 2,417 additional marina berths planned. Of these, construction has commenced at Mt Martha and Docklands.
In North West Western Port there are also a number of facilities, with ‘district’ rated facilities at Flinders, Stormy Point, Yaringa, Warneet, and ‘regional’ rated facilities at Hastings and Tooradin. Supply of wet berths in Western Port is not detailed.
14 This survey was undertaken as part of a study that considered boat ramp facilities so there is a risk of self-selection (boat ramp users) in responses to the survey. 15 BCAP: Volume 1, p34.
16 BCAP: Volume 1, p31.
17 Bellarine Safe Harbour – Market and Demand Analysis by Strathcorp for Parks Victoria, 2007
3.3 Market Conclusion
As is stated in the BCAP background report, the relationship between berth supply and boating demand is complex, and there are indications that increasing the supply of marinas (destinations) and wet berths (capacity) will induce demand – a factor that is not fully analysed. There are several marina developments in the planning stages at present, but these are located on Port Phillip Bay and do not take advantage of the boating opportunities and access to good quality fishing grounds that Western Port offers. At present, Yaringa Marina and Western Port Marina are at capacity and have waiting lists for wet berths. Yaringa Marina is seeking to offer a lower- priced marina product, and it is likely that there will be sustained demand for this type of product in the recreational boating market.
4. ECONOMIC IMPACTS
The term ‘economic impact’ refers to the effects of an economic activity on an economic system, for example, on the Peninsula region’s economy. These effects are measured in monetary terms (output and income) and number of jobs generated (employment). The total effects exceed the initial impact as there are flow-on effects to other sectors of the economy due to purchases by businesses and households. Multipliers for flow-on effects measured in terms of employment generated are generally in the order of one to three, understood as when one additional job is created in the repairs industry for example, another 1.7 jobs are created in the wider economy.
This section identifies the key direct and indirect economic impacts associated with the proposed development at Yaringa Marina.
Likely economic impacts include:
- short term construction activity and employment, and associated flow-on employment through expenditure by businesses and the construction workers;
- short term activity as a result of purchase of new or replacement boats;
- on-going local expenditure by visitors and holiday unit owners staying in the accommodation units and flow-on benefits from this expenditure;
- on-going expenditure by additional boat-owners at Yaringa as a result of the increased number of wet berths and dry storage; and
- on-going rate revenue for Mornington Peninsula Shire on the value of new accommodation units and to cover increased provision of services, including garbage services, wear and tear on local roads, etc.
4.1 Investment
Total investment in the project is estimated by the developer at approximately $95 million. This investment is comprised of:
- Construction of 180 accommodation units $54 million
- Development of basin, locks, roads and services $18 million
- Construction of dry stack building and equipment $5 million
- Construction of factories and associated infrastructure at 3 Lumeah Road $6 million
- Refurbishment of existing harbour $12 million
4.2 Construction-related Employment
Site works and building construction will require inputs from a number of industries and result in positive flow-on effects to other economic activities. These activities will generate short term employment in the construction industry and in the wider economy.
Australian National Accounts provide a detailed analysis of the construction industry’s inputs and outputs, the linkages with other industries and multipliers that indicate the initial effects, production induced effects and the consumptions induced effects of initial expenditure on construction. A detailed analysis of the construction industry’s linkages is provided in the ABS Year Book Australia 2002, Cat. 1301.0
In the construction industry, $1million of extra output generates 9 direct Full Time Equivalent (FTE) jobs, or approximately one job per $111,000 in construction costs.
Approximately 860 direct FTE positions (rounded from 856 jobs) are estimated to be generated as a result of the development project. As construction is forecast to be completed within a twelve-month period, these jobs will have duration of 12 months.
4.3 Boat Purchase-related Employment
Upon completion, the development will have increased the capacity at the marina by 180 wet berths and 200 additional boat storage spaces under cover, which presents an expansion and upgrade of boat storage capacity. The operator estimates that it will take approximately two years from completion until the additional berths and dry storage area are fully occupied.
According to the operator at Yaringa, the new berths are likely to be filled by a mix (one-third each) of:
- new boats purchased by people who do not currently own a boat;
- upgrades to larger boat sizes from trailer-able boats by existing boat owners who already keep their boat at Yaringa; and
- boats that are currently kept elsewhere.
It is expected that new boats at Yaringa will be an average of 12 meters in length.
New and upgraded dry storage areas are also likely to be taken up by some newly purchased boats (trailer-able) and by boats that are stored elsewhere. According to Yaringa’s operator, the past pattern has been that 50% of spaces are filled by newly purchased boats and 50% are filled by boats that have been stored elsewhere.
Boat purchases or investment is detailed in Table 4 below.
Table 4: Estimated Boat Purchases
Category Additional Boat Investment Units Estimated Boating
Investment
Newly purchased boats by people not currently boat owners
$300,000 - $400,000 per boat (average market price for new boats of 12meters)
60 $21.0m
$150,000 - $200,000 per boat (average additional estimated expenditure on upgrade)
60 $10.5m
Boats moved to Yaringa from elsewhere
Vacant berths in other locations will be filled with a mix of boats – assume average expenditure of $200,000 per boat (some upgrades, some new, etc)
60 $12.0m
Trailer-able boats in dry storage $20,000 - $60,000 per boat 100 $4.0m
Total $47.5m
Source: Matters More Consulting and Yaringa Marina operators
National Accounts Input-Output tables produced by ABS show that every $1m output from the boat building industry requires input of 1.8 FTE (or output valued at $554,800 is produced per full time equivalent employed person). On average, the estimated boating investment of $47.5 million is therefore likely to generate employment of 86 FTE, spread over the two year period that this investment will occur.
4.4 Boating Expenditure Employment
Additionally, on-going annual expenditure by boat owners will generate employment at Yaringa Marina and in the region. Annual expenditure by boat owners is detailed in Table 5.
Table 5: Estimated Annual Expenditure per Boat (12 meter average)
Item Annual Estimated Cost
Chandlery and equipment expenditure $10,000
Fuel $2,500
Boat maintenance at Marina Service Centre $4,000 - $5,000
Major works allowance ($50,000 - $100,000 every 10 years or so) $7,500
Total – range $29,500 - $31,500
Source: Yaringa Marina operators
Annual expenditure by owners of trailer-able boats is lower than by owners of boats in wet berths. According to the marina operator, annual expenditure associated with a trailer-able boat is in the order of $10,000 - $15,000 per year (assume an average of $12,500 per annum). A proportion of the trailer-able boats are kept in dry storage, costs like insurance, fuel, equipment and boat maintenance are still applicable, but many owners in this category are likely to do a greater share of the work themselves at a lower expense.
Estimated increase in annual total boating expenditure at Yaringa Marina is shown in Table 6.
Table 6: Estimated Total Annual Boating Expenditure
Item Estimated Additional Boating Expenditure per
annum Units Estimated Total
Boating Expenditure per annum
$30,500 60 $1.83m
Upgrade of boats at Yaringa $18,000 60 $1.08m
Boats moved to Yaringa wet berths from elsewhere
Yaringa has lower costs compared to marinas on Port Phillip Bay, so additional expenditure is likely to be relatively low. Assume $15,000 on average.
60 $0.9m
$12,500 100 $1.25m
Source: Matters More Consulting
Additional annual expenditure at Yaringa, estimated at $5.0m, is estimated to generate employment for 78 FTE. This employment is based on the output and employment coefficients of the repair industry used as a proxy for the variety of industries covered under boating expenditure. The repair industry generates one job per $64,000 expenditure on repairs.
The increase in the number of boats at Yaringa Marina will have a significant impact on local employment as boat maintenance work, berthing fees and fuel sales will generate jobs at the marina. Many of these businesses will now be able to increase part time employment to full time employment and will be able to take on additional staff to grow the business.
4.5 Visitor Expenditure Employment
As the accommodation units proposed at Yaringa will be managed as ‘serviced apartments’ it is most likely that these units will be purchased as holiday units and leased to visitors when not used by the owners.
The holiday house market is known to account for approximately 75% of all overnight visitors to the Mornington Peninsula, including visiting owners and visitors staying in holiday houses. It is
estimated that there is in the order of 22,700 holiday homes18 on the Peninsula which is approximately 30% of dwellings19.
Usage of the accommodation units is estimated to be similar or higher than usage of holiday houses on the Peninsula. On average, a holiday house owner would spend 78 nights a year in their holiday house, and rent it to visitors for another 48 nights per year20. Owners typically travel in smaller parties of 3.2 persons per travel party, whereas visitors tend to be larger groups, on average 5.6 persons per travel party.
Visitation outcomes are shown in Table 7 below.
Table 7: Visitation Outcomes – Accommodation Units
Unit owners Visitors Total
77.6 occupied nights per unit 48.4 occupied nights per unit 126 occupied nights per unit p.a.
3.2 persons per travel party 5.6 persons per travel party Average travel party of 4.1 persons
248.3 persons per unit p.a. (owners) 271.0 visiting persons per unit p.a. 519.3 persons per unit p.a.
248.3 x 180 units =
44,694 unit owners’ nights p.a. 271 x 180 units = 48,780 visitor nights p.a.
519.3 x 180 units =
Expenditure by visitors and visiting unit owners is derived from information collected by Tourism Research Australia through the National Visitor Survey. Data for 2007 is used; expenditure by visiting unit owners is approximated by the ‘visiting friends & relatives’ group, and expenditure by visitors is approximated by the ‘holiday & leisure’ group. State level data is used, as data by these subgroups is not published at local government level.
Expenditure by unit owners and visitors:
- 44,694 unit owners nights x $80 per night = $3.58 million per annum
- 48,780 visitor nights x $151 per night = $7.37 million per annum
- Total overnight visitor expenditure = $10.95 million per annum
According to past surveys of home owners and visitors, spending by unit owners and visitors alike will be widespread on grocery and deli items, restaurants and eating out, and on bakery items. Visitors also tend to buy alcohol and shop at the local butcher, chemist and at clothing outlets. Unit owners, on the other hand, are twice as likely as visitors to buy homewares locally.
Employment generated by this expenditure is estimated at 110 jobs per annum (rounded). This estimate is based on the tourism employment of 5,370 jobs from tourism spending of $534 million or one job per $99,440 in expenditure, rounded to $100,000 expenditure per job21.
This estimate does not include the increase in day trip visitors to the marina, and spending at its restaurant, kiosk, etc as a result of Yaringa Marina becoming a better known destination on Western Port. Therefore the $10.95 in visitor expenditure as a result of increased visitation is a conservatively low estimate of the economic impact as a result of visitor and unit owner expenditure during visits to the proposed development.
18 Mornington Peninsula Study – Home Owners & Visitors, April 2006, Quantum Market Research
19 Dwellings data, 2006 Census, ABS 20 Refer footnote 17
21 Percentage tourism employment in the Peninsula Region from TTF Australia Victorian Tourism Employment Atlas 2005, and updated with 2006 Census data on employment in the region.
4.6 Rates Revenue
Unit owners will be paying for maintenance and management of the units as an on-going arrangement. A share of this expenditure will be rates paid to the local Council as a contribution to general provision of Council services, including local government administration, local facilities and roads provision, and garbage and landfill services.
Rates are calculated on the Capital Improved Value of a property based on valuations undertaken every second year. Assuming that units will have a capital improved value of $400,000 each.
Total rates payment to Council, based on 2008/09 rates is estimated at $156,700 per annum as shown in Table 8.
Table 8: Estimated Rates Payable to Council
Rate Component Value (2008/09) Rate in $ per unit X180 accommodation units
Council rate X 0.0018430 $737.20 $132,696
Municipal charge $130 $130.00 $23,400
Total $867.20 $156,696
Council expenditure of $156,700 generates 1.3 FTE jobs based one job in Government administration per $123,000 in expenditure22.
4.7 Flow-On Employment
Flow-on effects in the wider economy include the initial effect, the production effect, and the consumption induced effect23, describes as follows:
- The initial effect measures the results of an initial $1 of extra output of the industry and the related employment in the industry to produce that output;
- The production effect measures the amount of output and employment from industries that supply goods and services to the industry to produce the initial $1m of extra output plus the extra effort and employment in other industries to support the supplying industries; and
- A consumption-induced effect is generated due to increased wages and spending by the wages and salary earners receiving compensation for their part in producing the above effects.
An industry specific multiplier is used to estimate the total flow-on effects. The flow-on employment estimates for the proposed development at Yaringa are shown in Table 9.
Table 9: Estimated Flow-on Employment – Short Term
Duration Activity
(indirect effect) Total employment
One year Construction 856 jobs 2.3 1,970 jobs 2,826 (rounded to 2,830)
Two years Boat investment (43 jobs p.a.) 86 jobs 1.7 146 jobs 232 (rounded to 230)
Source: Matters More Consulting.
Short term activities, i.e., construction and investment in boats and boat upgrades, are estimated to generate a total of 2,120 additional FTE jobs.
22 ABS Input Output Tables - Cat. 5209.0
23 ABS Year Book Australia, 2002, Cat 1301.0
Table 10: Estimated Flow-on Employment – On-going
Duration Activity
(indirect effect) Total employment
On-going Overnight visitation expenditure 110 jobs p.a. 2.0 280 jobs 420 jobs p.a.
Council rates 1 job p.a. 2.2 2 jobs 3 jobs p.a.
Marine Services 78 jobs p.a. 1.3¹ 101 jobs 179 jobs p.a.
Total ongoing jobs 199 jobs p.a. 383 jobs 602 jobs p.a.
Source: Matters More Consulting. Note (1): Multiplier for repairs industry used for Marine Services
On-going expenditure by visitors and visiting unit owners, expenditure on rates, and on boating related activities is estimated to generate 380 jobs in on-going flow-on employment.
4.8 Summary and Conclusions
In summary, the proposed development of Yaringa Marina appears well supported by current policies and strategies, including the Boating Coastal Action Plan, the Victorian Coastal Strategy, tourism strategies by Tourism Victoria and local economic development and tourism policies by Mornington Peninsula Shire.
There appears to be increasing demand for marina infrastructure although the exact relationship between supply and induced demand is not fully analysed or modelled. Several marina developments are currently progressing through the planning stages or have received a development permit, however these developments are located on Port Phillip Bay and do not take advantage of the good fishing and recreation opportunities offered by Western Port.
The proposed development will have significant economic benefits, bringing more boaters and other visitors to Yaringa Marina and Western Port.
In summary, the likely economic impacts will include:
- Investment of $95 million in infrastructure upgrades and construction at Yaringa;
- Construction employment of 860 FTE (rounded), and flow-on employment of 1,970 FTE;
- Expenditure on purchases of new boats or trade-in/upgrade of currently owned boats of $47.5 million, representing direct employment of 86 FTE in the boat building industry and generating 146 FTE flow-on jobs in the wider economy.

Documents

Yaringa Marina Development Project