Economic Impact Report
Conclusion
The impacts of the Coronet Bay Sporting Village are wide-ranging. In addition to the main economic impacts discussed in Chapter 2, the development will expand the rates base in Bass Coast Shire and is likely to confer a ‘premium’ on existing housing in Coronet Bay through the provision of these extensive sporting and recreational facilities in the township.
The concept of the sporting village, which co-locates residential and recreational land uses, will be a distinguishing feature of the development, and the only one of its kind in Victoria. This feature is likely to make it more marketable and more attractive to all buyers, and especially holiday home buyers, because of the range of recreational activities offered. The sporting facilities will be attractive year-round and is likely to increase the dispersal of visitation to Coronet Bay throughout the year, whereas at present visitation is concentrated in the peak holiday season.
Summary
| Impact Area | Nature of Impact |
|---|---|
| Investment | +275.6m |
| Permanent Population | +810 persons |
| Tourism/Visitors | +91,150 visitor nights |
| Spending | +$21.9m |
| Construction employment | +1,970 jobs direct |
| +5,420 jobs indirect | |
| Ongoing employment | +40 jobs direct |
| +52 jobs indirect | |
| Municipal Rates | +$911,000 |
| Property Values | +$24.3m |
Results
Vision: The proposed sporting village at Coronet bay, to be integrated with the existing township, is envisaged as a modern residential development featuring an extensive range of sporting and recreational facilities for the local community.
Tourism Sector: With the employment structure of Bass Coast Shire having shifted gradually from its traditional base in the primary and secondary industries to the service industry, tourism is a significant driver of growth of the Bass Coast and Gippsland economies.
Policy Context: The sporting village needs to be considered in the policy context of the Victorian Coastal Strategy and the Bass Coast Planning Scheme, and under the Victoria’s Tourism Industry Strategic plan and regional tourism plan because it will incorporate facilities which will serve tourists as well as permanent residents of this area.
Capital Investment: Based on costings provided to Essential Economics by Coastal Estates, it is estimated that the construction phase of the Coronet Bay Sporting Village will require initial capital investment of at least $275.6 million.
Permanent Resident Population: Using the dwelling occupancy rate and the average household size figures for Bass Coast Shire, it is estimated that the size of the village’s permanent population could number up to 810 persons. This estimate assumes that every residential lot, having been developed into housing, is either occupied as a primary residence or owned as a holiday home.
Visitor Nights: The number of village residences to be used as holiday homes is estimated to be 353 at full development, and these holiday home dwellings are expected to generate a total of 70,000 visitor nights. Rental accommodation is expected to generate 5,835 visitor nights, with a further 15,315 visitor nights generated by the visiting friend and relatives of permanent residents.
Resident Spending: The permanent resident population at the proposed development is estimated to generate household spending in order of $14.4m per annum, which comprises approximately $5.8m spending on retail goods and services and $8.6m on non-retail goods and services.
Visitor Spending: Visitors to the Coronet Bay Sporting Village, including holiday home owners, their friends and relatives and those staying at rental accommodation, are forecast to contribute approximately $7.5m per annum to the local, regional and wider economy through their spending flows.
Construction Employment – direct: It is estimated that approximately 1,970 jobs will be directly generated during the construction of the sporting village. This estimate is based on the application of the construction industry benchmark of the creation of one annual full-time equivalent (FTE) position per $140,000 capital expenditure.
Construction Employment – indirect: The employment multiplier will generate a further 5,420 jobs during the construction phase, based on the creation of an additional 740 jobs from non-residential construction expenditure, and an additional 4,680 jobs from residential construction expenditure.
Ongoing Employment: Coastal Estates has estimated that service requirements of this nature will create approximately 40 jobs, on a full-time and part-time basis, including administration staff, body corporate managers, ground staff for the golf course and marine areas, hospitality and entertainment staff at the clubhouse, and so on. An additional 52 jobs could be generated indirectly on an ongoing basis as a result of the operation of the sporting village.
Council Rates: It is estimated that a fully completed and occupied development has the potential to contribute up to an additional $911,000 per annum (rounded) to Bass Coast Shire through the expansion of the rates base, assuming an unchanged cents in the dollar rate.
Existing Housing Impacts: The potential impact of a development ‘premium’ on existing Coronet Bay house prices could be between $17,000 and $51,000 per property. The premium could raise the total value of existing properties between $12.2m and $36.5m, with the medium impact scenario premium being $24.3m.