Client: City of Sydney State: NSW AEC was engaged by the City of Sydney to assist with the preparation of the Local Strategic Planning Statement and the Local Housing Strategy. AEC provided three separate studies for the City of Sydney, (1) development capacity for land use controls, (2) feasibility of development in heritage conservation areas, and (3) development feasibility of mandated land use splits. For the first study, AEC reviewed development capacity data and historic supply, conducted an appraisal of residential markets, profiled factors that influence deliverability of development capacity, conducted spot-checking of the lot-level data and aggregated the estimated dwelling capacity by village area to cross check against historic supply. This led to an understanding of the feasibility of development capacity by village area under current planning controls and estimates of likely take-up in the future. For the second study, AEC reviewed development and market activity, reviewed existing uses and built form and estimate at an aggregate level, and used the estimate of existing property value (in aggregate) to identify the likely FSR controls needed for comprehensive redevelopment to occur following the removal of heritage conservation areas designation. For the third study, AEC reviewed development and market activity to understand the extent and type of non-residential floorspace feasible for mixed use, conducted iterative testing of the impact of increases non-residential GFA on development feasibility and analysed possible reasons for and drivers of differences in outcomes across centres. This led to an understanding of the viability of implementing non-residential floorspace requirements on new mixed-use development in the Study Area.

Is Paid Market Research Really Worth It? Can’t we rely on information from 5 years ago? Can’t we use the anecdotal evidence? Aren’t there secondary sources of information available? Which research methodology will provide the best information? These are the questions often asked by many clients. Clearly paid market research is imperative in some situations; if it were not, it would not exist and thrive as a business around the world. Following is a perfect example of why market research as well as the research methodology selected are critical to making commercially sound business decisions. AEC recently conducted quantitative online survey supported by qualitative focus group sessions for one of our clients. We gathered as much data as possible through existing information. The anecdotal evidence provided suggested customers were motivated by value and variety – no surprises there! Most of us are value driven – the bigger, the better, the cheaper. We formed some hypotheses based on the evidence gathered and tested these hypotheses via an online quantitative survey and qualitative focus group sessions to dive deeper and explore the multiple layers of consumer behaviour. However, as the customers began to discuss their motivations, perceptions, needs, and desires during the focus group sessions, it quickly became evident that the tangible and economic benefits of the product were only the ‘icing on the cake’ whilst the real pillars of customer motivation, satisfaction and loyalty were tied to the emotional benefits. What our client was offering was more than just the tangibles of great value, product or variety, they were offering emotional connection, bonding, self-identity and were serving a purpose in life. Our key recommendations based on strategic insights centred around communicating the emotional benefits supported by the tangible and economic benefits of the product. Without this research, the client may have developed strategies and marketing initiatives targeting customers’ needs of the tangibles and missing the core driver – the emotional benefits. It is equally important to highlight value of correct market research methodology. Is this case, the quantitative online survey (as a standalone method) may not have captured the key driving factor behind customer motivations, satisfaction and loyalty. In order to make informed decisions about the majority of your business operations or strategy, take the time and make the investment required to validate the evidence, the ideas and information with your current and prospective customer base – understand what your customers want today and know where they are heading in the future. Have up-to-date evidence-based information about your evolving customer base and their habits so you have your finger on the pulse today and are ahead of the game for tomorrow.

AEC Principal Consultant Simon Smith, in partnership with Tammy Marshall, Managing Director of B Hive, has been working with APEC and participating economies on the economic impact of cruise tourism on micro, small and medium enterprises (MSMEs) as well as communities. The Cruise ship sector is considered one of the most rapid growing segments in the tourism industry. Given the rise of the cruise industry activity in the APEC region, data to analyse the economics of cruise tourism is vital, especially data that focuses on communities as the recipients of economic benefits. The project will provide a study on cruise tourism’s effect on local communities, more specifically, MSMEs in local communities in APEC economies and how the income generated from the cruise sector leads to better standards of living for local people. Project outcomes and recommendations will be used to support further strategic sustainable development of cruise tourism and to identify opportunities to increase positive impacts and safeguard the livelihoods of local economies. Whilst the project is working closely with just five economies, the findings and recommendations will have benefits for all 21 APEC members. The workshop in Singapore was attended by representatives from Australia, Chile, Chinese Taipei, Mexico, Papua New Guinea, Peru, Philippines, Singapore and Vietnam as well as a number of expert speakers including: Cruise Line International Association, Royal Caribbean Cruise Lines, Cruise Broome and Genting Cruise Lines. For further information regarding developing the cruise sector please contact simon.smith@aecgroupltd.com

Client: Maranoa Regional Council State: QLD AEC worked with Maranoa Regional Council to guide Council’s actions towards achieving sustainable economic outcomes, through the development of a Business and Industry Development Plan and Implementation Plan. AEC undertook a socio-economic analysis of the region, built on existing Council documents to form a vision and strategic initiatives, and developed actions and target measures for implementation of the strategy. Opportunities identified for Maranoa’s industries include horticulture utilising coal seam gas water, productivity enhancement through innovation and technology, industry linked tourism experiences, coal seam gas and coal mining, alternative power, electrical storage, game meat processing, re-emergence of sheep production, targeted tourism and expanded use of Roma airport and linking services. Key outcomes targeted were the attraction of new business, support of existing business, attraction of people, leveraging of assets, development of skills and building of community partnerships.

Client: Maranoa Regional Council State: QLD Like many regional and remote areas of Australia, one of the key issues facing the Maranoa (in Queensland) is that of population attraction and retention. With the regions resident population expected to decline outwards to 2041, AEC were engaged by Maranoa Regional Council to develop a Liveability Study and Implementation Strategy. The project aimed to assist council in identifying opportunities designed to facilitate the creation of jobs and investment to support population growth, as well as the existing local business community. The strategy also aimed to address the financial implications associated with population decline, with reductions in rate revenue creating challenges for funding provision and maintenance of critical infrastructure, utilities, recreational and social infrastructure, and other services that enhances liveability.

It is with great sadness that we farewell Dr Peter Crossman. Peter had a significant influence on the founding directors of AEC. He was honours supervisor to Carey and employed both Carey and then Simon on the Queensland State Modelling (QSM) Project at the Centre for Applied Economics and Research (CAERA) at James Cook University. Simon then relocated with Peter to Queensland Treasury in Brisbane in 1991 before starting the Brisbane office of Australian Economic Consultants (AEC) in 1995. In more recent years Peter worked with AEC on various model development and client projects that required innovative yet intellectually grounded solutions. Carey said, ”I was privileged with the time and patience Peter invested into me and was fortunate to learn from the best and Peter was without doubt one of the best economists I have ever met. I am sure Peter will be up there with a coffee in one hand and a red marker in the other solving problems and making statistics perform magic.” Simon kept in regular touch with Peter after leaving Treasury visiting the Crossman family on several of their overseas excursions at Cambridge University, UK and in Abu Dhabi. After Peter semi-retired Simon invited him to assist AEC on many challenging product development projects and tricky client problems. Simon commented “Aside from being a great economist, Peter was a damn fine fellow. Aside from economics, our discussions would vary widely including diverse topics such as WWI, technology, cricket and rugby. I also always came away with an economics angle to think about.”

Client: Northern Territory Department of Tourism, Sports and Culture State: NT AEC was engaged by the Northern Territory Government to develop a Cruise Tourism Strategy 2020 - 2025. The purpose of the Strategy was to provide a framework for the ongoing development of the cruise sector in the Northern Territory. It outlined a series of actions to: Expand cruise tourism in the Northern Territory to grow the visitor economy Provide commercial opportunities to Territorians engaging with the cruise sector Promote Darwin as the preferred cruise gateway in Northern Australia Promote other Northern Territory cruise tourism destinations thereby distributing the economic benefits of cruise tourism more widely, maximising the economic impact of cruise tourism for the benefit of all Territorians. The number of passenger days spent in the Northern Territory has almost tripled over the last 10 years, from 22,873 in 2008-09 to 60,205 in 2018-19. To continue to capitalise on this growth, the Northern Territory needs to maintain our proactive approach in developing the appropriate infrastructure, facilities, and services to support cruise tourism. Further, the Northern Territory needs to adopt a targeted approach to capture specific market segments which provide the greatest opportunity to Darwin and other Northern Territory destinations. Cruise tourism can provide important economic contributions right across the Northern Territory from Arnhem Land to Central Australia, providing local business owners with an opportunity to benefit from visitor spend. Additionally, cruise tourism offers a great opportunity to showcase natural assets, and Aboriginal culture. Cruise tourism is a great platform to display what the Northern Territory has to offer and entice visitors to return for longer stays.

Client: Bundaberg Regional Council State: QLD Bundaberg Regional Council (Council) has an aspiration to invest in and create a revitalised Bundaberg City CBD, improving its functionality and diversifying its tenants. As part of this revitalisation, Council is investigating options for developing a health and education precinct in the CBD, including a level 5 tertiary hospital. Other potential locations for a health and education precinct are also being investigated by the Queensland State Government, outside the CBD. AEC were engaged to undertake a qualitative assessment of the socio-economic impacts to Bundaberg of having the proposed health and university precinct located in the CBD, rather than outside the CBD. In undertaking this assessment, a likelihood-consequence style assessment was used. The findings of this report were used to inform a broader study being undertaken by AECOM regarding the implications of developing a health and university precinct in the Bundaberg CBD.

Client: Gympie Regional Council State: QLD This project involved an independent review of the appropriateness of the business structure adopted for the Rattler Railway Company, a controlled entity of Gympie Regional Council, in addition to the financial arrangements between the entity and Council. The objective of the assessment was to provide the entity and Council with a series of recommendations regarding the future relationship between the two organisations, following an indepth review of all agreements and financial performance outcomes, in addition to consultation findings.

Client: Liverpool City Council State: NSW In 2018 AEC updated Liverpool City Council’s updated Economic Development Strategy, Investment Profile and Economic Profile documentation. Since the release of these documents, State government strategies identified two additional industry sectors (Agribusiness and Defence) which are opportunities for New South Wales as a whole. Council engaged AEC to expand Council’s industry profiling to include these industries. AEC focused on providing an understanding of the existing industry within the Liverpool LGA as well as potential businesses in these industries’ supply chains. The industry profiles included: Discussion of the potential implications for the local region of these two sectors. Estimation of employment and Gross Vale Add in these sectors. Identification of local businesses who are able support the future development of these sectors. Comparison of the local industry to that of South West subregion, Western Sydney, Sydney SD and New South Wales. Summarise the outcomes for the project in a document which is appropriate for dissemination to media.

Client: Rural City of Wangaratta State: VIC Under the National Competition Policy, local government owned significant businesses must ensure that they do not enjoy any competitive advantage simply because they are publicly owned. Significant businesses are ones that are large in comparison to the market in which they operate or have the ability to influence or competitively impact the market. Examples can include Livestock Exchanges, Child Care Centres, Aquatic and Leisure Centres in fact any business activity that charges a fee for use. If a business activity is deemed to be a significant business, full cost pricing principles must be applied. Complaints about unfair pricing are common and can be made against local government owned businesses, potentially resulting in action being taken by State Governments. A review of the Wangaratta Livestock Exchange identified that while the activity is a business activity for the purposes of competitive neutrality legislation, it was not a significant business due to its share of the market and its inability to influence and impact that market. The findings of the review were reviewed by Better Regulation Victoria and found to be logical based on the evidence gathered.

Client: Honeycombes Property Group State: QLD AEC was engaged by Honeycombes to undertake an update of the economic impact assessment previously conducted by AEC. The project will replace the current Breakwater Terminal to facilitate an integrated tourism experience for North Queensland. It will include expanded ferry capacity, retail and commercial premises, education office accommodation, a four and a half star hotel, expanded car parking, a new long haul and local bus hub and public spaces.