Budget 2013/14 Northern Territory Economy
Tabled paper 295
Tabled Papers for 12th Assembly 2012 - 2016; Tabled Papers; ParliamentNT
Tabled by David Tollner
Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.
Department of the Treasury and Finance
172 Tourism 2013-14 Budget the Territory in 2013 as people opt for shorter trips and cheaper holiday destinations within Australia. In 2013 there are expected to be a number of changes to aviation services in the Territory. On 9 April 2013, Tiger Airways reintroduced flights to AliceSprings from Melbourne and Sydney. This will provide travellers to and from AliceSprings with the option of a low cost carrier which is expected to better cater to all visitor segments visiting the region, forexample, leisure and business. Qantas Group has announced that from June 2013, Jetstar will operate flights from Sydney to Yulara replacing Qantas on that route. Also, Qantas has announced that it will cease providing flights from Darwin to Canberra from April 2013. This latter change reflects decreased travel demand by public sector employees between the two cities as both the Territory and Commonwealth governments pursue fiscal consolidation measures. In terms of international services, Philippine Airlines announced that it would be introducing full service flights from Darwin to Manila from June 2013. AirNorth has announced that it will increase the number of services between Darwin and Dili, East Timor, commencing in June 2013, while AirAsia has announced its return to the Darwin to Bali, Indonesia, route which is set to commence on 1 July 2013. Given the volatility of the aviation industry, it is difficult to predict the longterm outlook for aviation in the Territory. Increased capacity in the Territory may reflect an expectation by airlines that increasing economic activity in the Territory, particularly work in construction and mining, will increase passenger movements through Darwin International Airport. Darwin International Airport is in the process of expanding its terminal (see Chapter 11: Construction), which will increase the airports capacity and improve traveller facilities at the airport. With growing demand for Asia as a cruise destination, the outlook for further growth in cruise visitation to Darwin is positive with Tourism NT forecasting growth in passenger numbers of over 5percent per annum over the next two to three years. Tourism NT estimates that 45 cruise ships will stop in Darwin in 2013, twofewer than in 2012. According to the Darwin Port Corporation, 30cruise ships have booked for 2014, and as at March 2013 a further eight have been booked for 2015. Growth in the number and size of conventions in the Territory is likely to be constrained by continued pressure on costs in the public and private sectors limiting the funds available to hold conferences and send delegates. In these conditions, the Territory may be at a disadvantage with its higher costs due to travel and limited options for lowcost accommodation. Accommodation capacity is expected to increase in 2013 following the completion of works at Lasseters Hotel Casino in AliceSprings, which includes 66new rooms, as well as the opening of the new Cicada Lodge in Katherine in late March2013, which will have 18rooms available. Aviation Outlook Cruise Ship Market Outlook Conventions Outlook Accommodation Capacity