Business Case - Shark Bay Marina Feasibility Study Final

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

Business Case - Shark Bay Marina Feasibility Study Final Page 1 of 19

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.

[email protected]
mailto:[email protected]:[email protected]


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3

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


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


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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9

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.



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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.


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 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

Documents

Business Case - Shark Bay Marina Feasibility Study Final