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PORT PHILLIP ECONOMIC DEVELOPMENT STRATEGY 2012-2016

Port Phillip Economic Development Strategy

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This stratgey has been developed by Council's Economic Development Unit for the years 2012 -2016

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Page 1: Port Phillip Economic Development Strategy

port phillip ECoNoMiC DEVElopMENt StrAtEGY2012-2016

Page 2: Port Phillip Economic Development Strategy

1ECONOMIC DEVELOPMENT STRATEGY 2012-2016

CoNtENtSGLOSSARY OF TERMS 2

A MESSAGE FROM THE MAYOR 3

EXECUTIVE SUMMARY 4

Background 4

Economic Vision 4

Value of Economic Development in Port Phillip 4

Port Phillip Strategic Context 5

Strategic Policy Context 6

Economic Context 6

Strategic Directions 7

SECTION 1INTRODUCTION 10

Background 10

Vision 10

Economic Development Strategy Framework 11

SECTION 2ECONOMIC DEVELOPMENT AND THE ROLE OF THE CITY OF PORT PHILLIP 12

What Is Economic Development? 12

The Value Of Economic Development to the City Of Port Phillip 12

What Can Council Do to Influence Economic Development Within Port Phillip? 14

SECTION 3STRATEGIC CONTEXT 16

Strategic Location Context 16

Strategic Strengths 17

Strategic Weaknesses 17

Strategic Opportunities 18

Strategic Threats 18

SECTION 4STRATEGIC POLICY CONTEXT 20

Economic Development Policy and Direction 20

Centres of Industrial and Business Activity 21

Environmental Sustainability Policy and Direction 22

SECTION 5ECONOMIC CONTEXT 24

Key Findings 24

Population Trends 26

Demographic Profile 27

Social Disadvantage 28

Commuting Patterns 28

Economy 29

SECTION 6STRATEGY ACTION PLAN 40

Strategic Direction 1: An Integrated and Inclusive Local Community 42

Strategic Direction 2: Sound Environmental Leadership 48

Strategic Direction 3: A World-Class Tourism Destination Which Balances Visitation and Amenity 51

Strategic Direction 4: Flourishing Activity Centres 56

Strategic Direction 5: Strong Economic Clusters 58

Strategic Direction 6: The Creative City 63

SECTION 7MONITORING & EVALUATION 68

FIGURESFigure 1: Economic Development Strategy Framework 11

Figure 2: City Of Port Phillip 16

Figure 3: Port Phillip Age Profile, 2006 27

Figure 4: Spatial Distribution Of Professional Services & Property Businesses In Port Phillip 31

Figure 5: Map Of Manufacturing, Trade & Industry Businesses In Port Phillip 32

Figure 6: Map Of Activity Centres In Port Phillip 35

Figure 7: Concentration Of Creative Workers By Municipality 36

Figure 8: Spatial Distribution Of Creative Industries, Arts & Recreation Businesses In Port Phillip 37

Figure 9: Clustering Of Performing Arts Businesses In Port Phillip 37

TABLESTable 1: The Value of Economic Development to the City of Port Phillip 13

Table 2: Population Trends, 2001–2006 26

Table 3: Population Forecasts, 2006–2026 26

Table 4: SEIFA 2006 Analysis (Index of Relative Socio-Economic Advantage) 28

Table 5: Employment by LGA Location, 2006 28

Table 6: Industry Sector Performance 30

Table 7: Major Industry Categories 31

Table 8: Overnight Visitors to City of Port Phillip 34

Table 9: % Of Home Workers, 2006 39

AcknowledgementCity of Port Phillip acknowledges Urban Enterprise Pty Ltd in the development of the Port Phillip Economic Development Strategy 2012-2016.

DisclaimerParts of this document may contain estimates based on assumptions that may be subject to error. Although all care has been taken to verify such estimates readers must not alter their position or refrain from doing so in reliance on them. If you have any doubts about the accuracy of this document, we would advise that you find out from alternative sources.

Photos (opposite top and front cover, top-right): John Gollings

Page 3: Port Phillip Economic Development Strategy

A MESSAGE FroM thE MAYor

GloSSArY oF tErMS

The City of Port Phillip is a great place to do business.

Visitor numbers are up, our local

economy is strong and the first class

facilities we are famous for have

never looked so good.

The job of the Council and City

in helping local business is

an important one. Each year,

we produce an Action Plan

which supports our five-year

Economic Development Strategy.

The strategy has three objectives.

These are to:

• Enhancecompetitiveadvantage

for businesses in the municipality

• Increaseconnectionsbetween

the business, not-for-profit

sector, visitor and residential

communities

• Driveprosperityacrossthe

entire Port Phillip community.

Council’s role is as an enabler

of better business. Our job is to

facilitate and influence so that local

businesses are supported to grow

and prosper. In order to do this we

work with businesses and business

groups, we promote innovative

ways of doing business, we partner

with State and Federal Government

agencies, and we conduct activities,

programs and campaigns to

stimulate economic growth.

The City of Port Phillip is a great

place to live and it’s a terrific place

to work. Local businesses have an

exciting future ahead.

If you would like to download an

electronic copy of this document,

please visit our website at

www.portphillipbusiness.com.au,

or if you would like more

information on this Economic

Development Strategy, please

call ASSIST on +61 3 9209 6777.

Rachel Powning

Mayor

ABS Australian Bureau of Statistics

APBCC Albert Park Business & Community Committee

C Council

CBD Central Business District

CD Community Development

(City of Port Phillip Council Department)

CL Culture & Leisure (City of Port Phillip Council Department)

CLUE Census of Land Use & Employment

CRM Customer Relationship Management

CSR Corporate Social Responsibility

DIIRD Department of Innovation, Industry & Regional Development

DoT Department of Transport

EDU Economic Development Unit (City of Port Phillip Council Unit)

ESD Ecological Sustainable Development

FYC Families, Youth & Children

(City of Port Phillip Council Department)

IMAP Inner Melbourne Action Plan

LGA Local Government Area

LLEN Local Learning & Employment Networks

PCA Property Council of Australia

PS Property Services (City of Port Phillip Council Department)

SD Statistical Division

SEIFA Socio-economic Indexes for Areas

SKTA St Kilda Tourism Association

SMM South Melbourne Market

(City of Port Phillip Council Department)

SLA Statistical Local Areas

SP Strategic Planning Unit (City of Port Phillip Council Unit)

SUS Sustainability (City of Port Phillip Council Department)

SWOT Strengths, Weaknesses, Opportunities & Threats

VFR Visiting Friends & Relatives

VIC Visitor Information Centre

3ECONOMIC DEVELOPMENT STRATEGY 2012-2016

Page 4: Port Phillip Economic Development Strategy

Photo: St Kilda Road Parkview Hotel

5ECONOMIC DEVELOPMENT STRATEGY 2012-2016

EXECUtiVE SUMMArYBACKGROUNDThe City of Port Phillip Economic

Development Strategy 2012-2016

is a key strategic document that

will deliver Council’s vision by

presenting a coherent and actionable

plan for the next five years.

It has been informed by

consultation with the community

(residents, businesses and their key

representatives) and is underpinned

by the Local Government Act 1989,

the Council Plan and other strategic

documents including Municipal

Strategic Statement, Towards Zero

Sustainable Environment Strategy,

Health and Wellbeing Plan and the

Sustainable Transport Plan.

The purpose of the Economic

Development Strategy is to identify

timely, practical and evidence-based

strategies and actions that will:

• Enhancecompetitiveadvantage

for businesses in the municipality

• Increaseconnectionsbetween

the business, not-for-profit

sector, visitor and residential

communities

• Driveprosperityacrosstheentire

Port Phillip community

• Focuson‘green’business

through supporting sustainable

business operations and

promoting participation in

green business programs.

VALUE OF ECONOMIC DEVELOPMENT IN PORT PHILLIPEconomic development promotes

prosperity and improved quality of

life across the whole community by

supporting, serving and advocating

for local businesses. This is achieved

through a range of value-added

services which foster a sustainable,

vibrant business environment.

The value of economic development

to the Port Phillip community is

multi-faceted. It:

• Developsskills,knowledgeand

experience that can be celebrated

and utilised by the community

• Tacklesclimatechangeby

providing local businesses with

practical advice and measures

to reduce carbon emissions and

reduce operational costs, thereby

increasing the capacity of business

• Maximiseslocalmultiplier

effects (where an increase in one

economic activity starts a chain

reaction in others)

• Facilitatessocialinclusion

• Enhancesthevibrancy,

atmosphere, diversity and

liveability of the area

• Fosterseconomicgrowthand

business prosperity

• Encourageslocalaccessto

goods and services for the City

of Port Phillip community, which

supports local jobs and business

growth in the municipality.

The City of Port Phillip recognises

that, although it does not directly

deliver business outcomes, its

role is as an enabler. The Council’s

objective is to facilitate and promote

economic development within the

context of its wider environmental,

social and cultural sustainability

objectives. As such, Council’s role is

to influence appropriate investment

and business development in line

with Council goals and facilitate a

conducive business environment.

Achieving these outcomes requires

a partnership approach i.e. close co-

ordination between the Economic

Development Unit, other units

within Council and other levels

of Government and business

groups/representatives.

Council is an enabler of economic

development. Its role is to create

the environment where businesses

can grow and new opportunities

will be considered and explored.

PORT PHILLIP STRATEGIC CONTEXTThe City of Port Phillip enjoys a

drawcard location.

Strategically positioned between

the Melbourne CBD, the bay and

the port, the City of Port Phillip is a

landmark for a range of reasons. The

area has convenient transportation

access for freight and distribution

as well as excellent public

transportation links. The City of Port

Phillip has first class tourism assets

and infrastructure and is home

to some of Victoria’s best known

attractions. Renowned for its unique

atmosphere and diversity, the area

is an attractive destination for a wide

cross-section of residents, visitors

and businesses.

The City of Port Phillip is an

iconic Victorian location

with first class tourism assets,

sophisticated infrastructure and

celebrated diversity.

The City’s image is somewhat

threatened by perceptions that

there are safety/security issues

in some areas which may impact

on amenity. There are similar

concerns relating to the impact of

high rents on maintaining the City’s

unique diversity and vibrancy.

Stakeholder consultation conducted

in development of this strategy

revealed that some business people

felt that major and neighbourhood

activity centres within Port Phillip

were becoming increasingly

homogenised in their retail, food and

entertainment offer.

Finally, Council’s development of

this strategy aims to strengthen its

engagement with local business and

community members.

ECONOMIC VISION

Port Phillip will be a vibrant, inclusive, prosperous and sustainable local economy that meets the needs and aspirations of our community.

Page 5: Port Phillip Economic Development Strategy

7ECONOMIC DEVELOPMENT STRATEGY 2012-2016

STRATEGIC POLICY CONTEXTA review of the existing regional

and local policy context revealed

a number of policy directions

relating to creating a sustainable

economic future for Port Phillip.

These are outlined on page 20 of this

document and key points include:

• Theimportanceofseekingto

achieve social, environmental

and cultural sustainability aims,

not just economic growth at

whatever cost

• PortPhilliphasastrongcompetitive

advantage in professional services

and property quality and that

retaining these competitive

strengths should be a priority

• TheCityofPortPhilliphasa

vision for a vibrant well-managed

tourism industry and encourages

visitation (local, domestic and

international) which delivers

benefits to the local community

• Theimportanceofretaining

the significant role of Fishermans

Bend (Port Melbourne) as a

manufacturing, trade and

industry hub

• TheCityofPortPhillipsupportsa

diverse, creative city with safe and

affordable cultural events

• Thedevelopmentoflively,

viable, diverse and attractive

retail precincts

• Supportforgreenbusiness

and encouraging businesses

and organisations to be

environmentally sustainable

• Socialinclusion,healthand

wellbeing, and social justice are

underpinning principles in a

range of existing policies.

A sustainable business environment

in the City is underpinned by a

range of government and business-

based policies.

ECONOMIC CONTEXT• PortPhillip'spopulationisgrowing

fast and this is set to continue in the

short-medium term

• PortPhilliphasasignificant

proportion of working age

adults indicating a large resident

workforce. Evidence suggests that

people over 60 years of age are

moving to Port Phillip, while at the

other end of the scale, younger

people under 24 years of age are

moving out of the area

• PortPhillipisanareawherea

significant proportion of the

population earn above the

average Melbourne weekly

income, suggesting that it is a

relatively affluent area, however,

there are localised pockets of

social disadvantage within

the municipality

• Althoughtherearemorejobsthan

working residents in Port Phillip,

75 per cent of working residents

are employed outside the

municipality. This diminishes

local multiplier effects and impacts

on environmental sustainability

• Professionalservicesand

property, manufacturing, trade

and industry, tourism and retail

trade account for over 75 per cent

of jobs in the municipality

• Emergingsectorswithinthe

municipality include green

businesses and home–based

businesses.

The City of Port Phillip has a

strong economic foundation.

Further growth is predicted.

STRATEGIC DIRECTIONS The strategic directions are the

bridge between vision and strategy.

They reflect the areas of focus and

priorities for Council to achieve

its vision. Council has defined six

strategic directions, each of which

links back to the Council Plan. A

Strategy Action Plan is included in the

final section of this document which

outlines strategies and actions linked

to each of the strategic directions.

Council has developed six strategic

directions to set a course for the future.

STRATEGIC DIRECTION 1:

AN INTEGRATED AND INCLUSIVE

LOCAL COMMUNITY

The Port Phillip community will

be one where business people,

residents, visitors and community

organisations value and benefit from

each other’s strengths to contribute

to a greater sense of vitality, vibrancy,

sustainability and liveability.

Opportunities to meaningfully

participate in community life by way

of employment, recreation, education

and social and civic activities are

open to all community members.

Feature activities:

• Createpartnershipsbetween

business and the community

to promote diversity, support

community interaction and

create local employment

• DeliverthebiennialBusiness

Excellence Awards (to be held in

2012, 2014 and 2016) to reward

and recognise the success and

achievements of businesses in

the Port Phillip community

• Hostaseriesofnetworkingevents,

training and mentoring sessions

to strengthen the business

community, build capacity and

support growth of businesses

• EstablishanEconomic

Development Advisory Panel

to provide guidance to Council

in relation to economic issues

and to foster and encourage

the achievement of sustainable

economic development within

the municipality

• Ensuringaccesstoeducation,

training and learning

opportunities for personal,

professional and career

development that encourages

life-long learning.

STRATEGIC DIRECTION 2:

SOUND ENVIRONMENTAL

LEADERSHIP

Environmental sustainability

will be at the forefront of the Port

Phillip economy both in relation

to existing business practices and

development of innovative green

business clusters.

Feature activities:

• Encourageparticipationinthe

CitySwitch program by employing

a dedicated CitySwitch Officer

to recruit participants to

the program

• Collaboratewith(orpromote)

Council, State and Federal

Government climate change

programs to local businesses

in the City of Port Phillip

• Evaluatetheeffectivenessofthe

pilot Green Business Program and

develop a staged implementation

plan that progressively rolls out

the program to various activity

centres across the municipality

over the next three years.

STRATEGIC DIRECTION 3:

A FIRST CLASS TOURISM

DESTINATION WHICH BALANCES

VISITATION AND AMENITY

Port Phillip will encourage

sustainable tourism experiences

and respectful visitation which

does not compromise local amenity

or the natural environment.

Feature activities:

• CollaboratewithCityof

Melbourne, City of Stonnington

and City of Yarra through the

IMAP Tourism Working Group to

strategically develop and position

Inner Melbourne as a vibrant and

welcoming destination

• Helpbuildthecapacityofthe

St Kilda Tourism Association

• PartnerwithDestination

Melbourne in the development

of tourism publications, which

will continue to grow all parts

of Port Phillip as an exceptional

visitor experience

• Promoteandsupportthe

Tourism Accreditation

Program, which enhances

industry professionalism and

improves standards.

EXECUTIVE SUMMARY

Page 6: Port Phillip Economic Development Strategy

9ECONOMIC DEVELOPMENT STRATEGY 2012-2016

STRATEGIC DIRECTION 4:

FLOURISHING ACTIVITY CENTRES

The Port Phillip community will be

supported by a number of strong,

vibrant, differentiated and accessible

major and neighbourhood activity

centres providing convenience and

a connection to the local community

for residents and visitors.

Feature activities:

• Continuetheongoing

administration and governance

of Special Rates Schemes, in

partnership with Business

Associations, to enable:

—> Business Associations to

develop individual business

planswhichmaintaina‘point

of difference’ and diversified

business mix

—> Local self-sufficiency in the

retail offering available to the

community

—> The facilitation of business

development and coordinated

marketing and promotion.

• Providegovernancetraining

and capacity building for board

members of Business Associations

• Facilitate‘BuildingConnections

– Business Associations

Network’ between the Business

Associations across the

municipality.

STRATEGIC DIRECTION 5:

STRONG ECONOMIC CLUSTERS

Port Phillip will continue to be home

to a number of industry clusters of

state-wide significance supported

by a variety of emerging industry

clusters that serve to make the

municipality a premium destination

for employers and employees alike.

Feature activities:

• Promotethestrongcompetitive

position of St Kilda Road as a core

commercial hub

• Establishadedicatedbusiness

forum for Fishermans Bend

Industrial Precinct

• Undertakeprimaryresearchon

Fishermans Bend to collect and

analyse key data and information

on businesses to support

economic development and

planning initiatives

• Explorethesignificanceof

Fishermans Bend to the state and

regional economy, and advocate

on behalf of Fishermans Bend with

other levels of Government

• ActivelypromoteFishermans

Bend to a range of stakeholders

using a variety of communication

strategies and media formats.

STRATEGIC DIRECTION 6:

THE CREATIVE CITY

The City of Port Phillip will be

renowned within Victoria and

nationallyasthe‘creativecity’,

respected for its high proportion of

creative businesses and workers,

creative events and leading arts and

cultural institutions.

The City of Port Phillip operates

and/or is involved with a number of

organisations, festivals, events and

attractions across the municipality.

This support and collaboration

contributes to the cultural

development, vibrancy and

ongoing success of Port Phillip

creative sector (refer page 63).

Feature activities:

• Undertakeaneconomicbenefit

analysis to understand the value

of the creative sector to Port

Phillip’s economy and identify

opportunities for future business

development and clustering

• WorkwithBusinessAssociations

in Albert Park and Elwood to

support community festivals

in non-levied neighbourhood

activity centres to provide

creative, community-based

activities that stimulate business

growth and development.

EXECUTIVE SUMMARY

Page 7: Port Phillip Economic Development Strategy

Figure 1 Economic Development

Strategy Framework

ConsultationExTERNAL: Business owners, Business Associations INTERNAL: City of Port Phillip stakeholders

Vision & Themes Strategie

Policy Context

SWOT Economic Situation

Analysis

Socio-Economic

Profile

Strategic DirectionsWhere Council should be going to achieve its Vision

StrategiesHow Council can get there

ActionsWhat Council can actually doSt

rate

gy

Act

ion

Pla

n

11ECONOMIC DEVELOPMENT STRATEGY 2012-2016

iNtroDUCtioNBACKGROUNDThe City of Port Phillip Economic

Development Strategy 2012-2016

is a key strategic document

that seeks to deliver Council’s

vision by presenting a coherent

and actionable plan for the next

five years. It is informed by

consultation with the community

(residents, businesses and their key

representatives) and is underpinned

by the Local Government Act 1989,

the Council Plan and other strategic

documents including the Municipal

Strategic Statement, Towards Zero

Sustainable Environment Strategy,

Health and Wellbeing Plan and the

Sustainable Transport Plan.

The purpose of this document is

to identify timely, practical and

evidence-based strategies that will

enhance competitive advantage

for businesses in the municipality,

increase connectivity between the

business, residential and visitor

communities, and drive prosperity

within the Port Phillip region.

The strategy is intended to

provide an achievable plan for

the future while responding to

the challenges and opportunities

presented by the local economic

context (actions that underpin the

strategy are outlined further in this

document, commencing on page 44).

In addition, Council is moving to

position economic development

in a much wider context of

environmental, social and cultural

sustainability, while being conscious

of the need to balance these aims

against the continued financial

viability of local businesses.

This strategy has been informed

by a detailed economic profile and

situation analysis, and consultation

with stakeholders across the Port

Phillip business community.

VISIONThe City of Port Phillip’s vision for

economic development is as follows:

Port Phillip will have a vibrant, inclusive, prosperous and sustainable local economy that meets the needs and aspirations of our community.‘Ourcommunity’refersto

the residents, businesses and

visitors who have a stake in the

Port Phillip economy.

ECONOMIC DEVELOPMENT STRATEGY FRAMEWORKFigure 1 shows how this economic

development strategy has been

developed. The key components of

the strategy are as follows:

• Consultationwithinternal

departments of Council

(e.g. Community Development,

Sustainability, Strategic Planning,

Communications and

Engagement) and external

stakeholders (e.g. community

groups, Business Associations

and local businesses) has

helped to shape the vision

and determine the strengths,

weaknesses, opportunities and

threats that apply to the City of

Port Phillip economic context

• Thestrategicdirectionsare

informed by the vision and

supported with background

research to define the directions

in which Council is heading with

regard to economic development

in the municipality

• StrategiesdefinehowCouncilwill

move towards achievement of its

strategic directions

• Actionsrelatetothespecific,

tangible and measurable activities

that Council undertakes to achieve

realisation of the strategies,

strategic directions and vision.

SECTION 1

Page 8: Port Phillip Economic Development Strategy

13ECONOMIC DEVELOPMENT STRATEGY 2012-2016SECTION 2

ECoNoMiC DEVElopMENt AND thE rolE oF thE CitY oF port phillipWHAT IS ECONOMIC DEVELOPMENT?Economic development is the

practice of stimulating, attracting

or maintaining business activity

and/or employment within a

defined geographic region. The

task of economic development is

usually undertaken by a responsible

governing authority but can also

be performed by community

organisations and/or other

independent agencies.

Successful economic development

is typically characterised by an

improvement to the economic

wellbeing of an area and is

commonly quantified via measures

such as an increase in the number

of jobs, higher incomes, greater

investment and/or higher tax

revenues to fund infrastructure

and services.

In the case of Port Phillip, the focus of

economic development is to achieve

sustainable economic growth

that delivers positive outcomes

for environmental, social and

cultural sustainability within the

municipality. As such, in addition

to traditional measures of job

growth and investment attraction,

indicators relating to social inclusion,

environmental business practices

and creativity will also be relevant.

THE VALUE OF ECONOMIC DEVELOPMENT TO THE CITY OF PORT PHILLIPEconomic development promotes

prosperity and improved quality

of life across the whole community

by supporting and serving the

needs of local business people.

This is achieved through a range

of value-adding services that

foster a sustainable, vibrant

business environment.

Investing in economic development

should not only deliver outcomes

for the local business community

but also create benefits for the wider

community. Table 1 shows the value

that economic development brings

to the entire Port Phillip community,

mapped against the Council

Directions in the Council Plan.

Achieving these outcomes

requires close co-ordination

and co-operation between the

Economic Development Unit and

other departments and units within

Council which influence economic

development directly or indirectly.

For example, Sustainability,

Strategic Planning, Events,

Community Development,

Communications and Engagement,

and South Melbourne Market.

COUNCIL DIRECTION THE VALUE OF ECONOMIC DEVELOPMENT

1. Engaging and Governing the City The business community in Port Phillip contains a wealth of skills, knowledge and

experience. Economic development facilitates sharing of these skills and knowledge with

the wider community through facilitation of corporate citizenship, leadership and/or

networking programs.

2. Taking Action on Climate Change Economic development can play a lead role in tackling climate change

by advocating emissions reduction strategies for businesses in areas such as:—> Retrofitting buildings—> Maximising renewable energy opportunities—> Reducing water use.

Economic development can help encourage green businesses to relocate to Port Phillip.

Economic development is effective in maximising local multiplier effects in terms of getting

more residents to work and shop locally, consequently minimising the need for car travel.

Economic development influences the take-up of more sustainable modes of

transportation and advocates for improvements to public transport infrastructure.

3. Strengthening our Diverse and Inclusive Community

Economic development can address social exclusion by increasing employment

opportunities amongst disadvantaged groups. For example, by developing partnerships

between industry and community organisations with the purpose of identifying jobs

and training opportunities for the less advantaged.

It also provides a mutual benefit for business and community organisations as

relationships are created, skills and expertise are shared and networks are extended.

Economic development leverages from the City’s existing creative economic base

to further enhance the vibrancy, atmosphere and cultural diversity of the area.

4. Enhancing Liveability Economic development, as its central aim, seeks to improve quality of life for all community

members through supporting local businesses, and strengthening the links between local

community and businesses.

Economic development broadens working opportunities available to residents by

providing support for home-based businesses and entrepreneurs.

Economic development enhances the overall appeal and attractiveness of the area

through well-managed tourism visitation and retail diversification, and access to a

range of goods and services.

Table 1 The Value of Economic Development

to the City of Port Phillip

Page 9: Port Phillip Economic Development Strategy

15ECONOMIC DEVELOPMENT STRATEGY 2012-2016SECTION 2

WHAT CAN COUNCIL DO TO INFLUENCE ECONOMIC DEVELOPMENT WITHIN PORT PHILLIP? Through its networks with local

businesses and knowledge of

industry, Council aims to strengthen

business within Port Phillip, facilitate

economic growth and reduce the

barriers that impede growth within

the municipality.

Within the City of Port Phillip,

Council aims to produce a range

of benefits for the business and

community by:

• Improving financial returns

for business through various

workshops and seminars

• Facilitating business and

community partnerships to

reduce unemployment and

underemployment

• Exhibiting community leadership

and building community relations

• Creating networking forums for

businesses to share knowledge,

ideas and issues

• Improving environmental

efficiency within business and

educating business on sound

environmental practises

• Increasing the level of visitation

within the municipality

while ensuring the impacts

to the residential community

are minimised

• Strengthening business capacity

and resilience in major and

neighbourhood activity centres

in Port Phillip through building

networks and promoting

individual precincts

• Increasing investment

and retention of business in

the municipality

• Empowering different industries

critical to Port Phillip’s economic

success through clustering

• Strengthening the creative

industry within Port Phillip,

building on our competitive

advantages to attract, retain

and integrate businesses

within this sector.

PARTNERSHIPS WITH

GOVERNMENT AND NON-

GOVERNMENT AGENCIES

In addition to delivering on its own

initiatives, Council also aims to

partner with the State and Federal

Government to successfully deliver

programs, services and information

to local businesses.

The State and Federal Governments

have a range of initiatives that target

all industry types within Victoria.

The City of Port Phillip is focused

on selecting and communicating

the initiatives that best suit the

business, industry and community

needs of the municipality, and which

also contribute to the overarching

Council Plan.

Accordingly, local knowledge and

understanding of local business and

community needs allows Port Phillip

to achieve maximum value and

effectiveness for these initiatives.

The State and Federal Governments

do not have the networks or the capacity

to engage business at a local level as

effectively as the City of Port Phillip.

Therefore, it is considered part of the

City of Port Phillip’s responsibility

to ensure local businesses are

made aware of the State and

Federal Government’s offerings,

disseminating information in a

consistent, targeted and

efficient manner.

Council has the local knowledge,

the networks and understanding

to interpret State and Federal

Government initiatives most

appropriate to local businesses.

In terms of partnership opportunities,

Council is focused on a number of

initiatives that meet local business

needs and contribute to the goals and

priorities of the City of Port Phillip. For

example, Council has developed,

and is currently developing,

partnerships with a number of

agencies including Tourism Victoria,

the Department of Business and

Innovation, Sustainability Victoria

and AusIndustry.

These partnerships will contribute to

a number of economic development

strategies, such as delivering

business mentoring, increasing

visitation in the municipality and

improving energy efficiency among

local businesses.

Council also works with a number

of local, non-government agencies

and organisations in order to

achieve economic development

for Port Phillip. For example,

Council is working closely with

Destination Melbourne and the

VictorianEmployers'Chamberof

Commerce and Industry (VECCI),

focusing on a number of partnership

opportunities in the areas of tourism

marketing and development, and

sustainability, specifically targeting

small business.

Council also collaborates with other

local government associations

around Victoria, working together to

improve the team’s service delivery

and exploring ideas to better address

key areas of economic development.

Additionally, Council also works

closely with Business Associations

across the municipality’s major

activity and neighbourhood centres

to promote their precincts in Port

Phillip and beyond, and to address

issues impacting their ability to

grow and prosper.

PARTNERSHIP WITH BUSINESSES

Council works with businesses

themselves. While it is impossible

for Council to engage with all of Port

Phillip’s estimated 16,500 businesses

individually, it is able to gain valuable

information and knowledge by

consulting with a large number of

businesses within the municipality

in a range of different industries.

Therefore, Council has an accurate

assessment of local needs, and

understands the key factors that not

only contribute to economic growth,

but the collective issues that impede

economic growth. Subsequently,

Council can use this knowledge

to create a favourable framework

to do business in Port Phillip by

harnessing existing strengths, and

reducing or removing barriers that

suppress economic growth.

The City of Port Phillip operates

and/or is involved with a number of

organisations, events and attractions

across the municipality. This support

and collaboration contributes to the

ongoing success and vibrancy of

Port Phillip. Council has involvement

with the following:

MARKETS:

• South Melbourne Market

Council operates the South

MelbourneMarket,Melbourne's

oldest continuing market, which

has achieved remarkable status

within the community as a

leading market in Melbourne

• St Kilda Esplanade Market

established in 1970 as an arts

incubator and opportunity for the

sale of arts and crafts produced by

the local artists’ community.

ART GALLERIES:

• The Gallery

located at the St Kilda Town Hall,

The Gallery presents exhibitions

which encourage an appreciation

for arts and culture, and are of

particular relevance to the area

and its community

• The Linden Gallery

has been devoted exclusively to

the exhibition of art produced by

living artists for over 20 years

• Gasworks Arts Park

owned by the City of Port Phillip,

this precinct is leased by Gasworks

Arts Inc, a community based

non-profit organisation which

presents an annual program

of festivals, events, exhibitions

and performances.

The City of Port Phillip works closely with local businesses and business representative groups to research, develop and promote initiatives which assist local businesses.

Page 10: Port Phillip Economic Development Strategy

N0 0.5 1

KILOMETERS

CITY OF PORT PHILLIP NEIGHBOURHOODS

ST KILDA

BALACLAVA

ELWOOD

PORT MELBOURNE

PORT OF MELBOURNE

SOUTH WHARF

SOUTH BANK

MELBOURNE CBD

CITY OF MELBOURNE

CITY OF STONNINGTON

ST KILDAROAD

CITY OF GLEN EIRA

CITY OF BAYSIDE

RIPPONLEA

WINDSOR

SOUTH MELBOURNE

ST KILDA WEST

ST KILDA EAST

MIDDLE PARK

ALBERT PARK

PORT PHILLIP BAY

17ECONOMIC DEVELOPMENT STRATEGY 2012-2016SECTION 3

StrAtEGiC CoNtEXtSTRATEGIC LOCATION CONTEXT The City of Port Phillip is an inner

city Local Government Area (LGA)

within metropolitan Melbourne. It is

bordered by the City of Melbourne

to the North and West, the City of

Stonnington to the North East, the

cities of Bayside and Glen Eira to

the South East and Port Phillip Bay

to the South and South West.

The City contains the suburbs of

South Melbourne, St Kilda, St Kilda

West, Elwood, Albert Park, Middle

Park, Ripponlea and Balaclava

and parts of St Kilda East, Windsor,

St Kilda Road (Melbourne) and

Port Melbourne.

STRATEGIC STRENGTHSThe City of Port Phillip enjoys a

drawcard location for residents,

visitors and workers alike. Port

Phillip’s strategic position between

the Melbourne CBD, the bay and

the port has allowed it to prosper

economically and socially.

The area has convenient

transportation access for freight

and distribution as well as

excellent public transportation

links to the CBD and elsewhere by

train, tram and bus.

The City of Port Phillip has first class

tourism assets and infrastructure

and is home to some of Victoria’s best

known attractions including Luna

Park, the St Kilda Foreshore, Station

Pier and the popular beaches along

Port Phillip Bay.

Port Phillip is renowned for its

unique atmosphere and cultural

diversity which makes the area an

attractive destination for a wide

cross-section of residents, visitors

and businesses.

STRATEGIC WEAKNESSESThe City of Port Phillip’s image is

somewhat impacted by perceptions

that there are safety/security issues

in some areas which effect amenity

for residents, visitors and businesses.

There are similar concerns relating

to the impact of high rents on

maintaining the City’s unique

diversity and vibrancy.

For example, there is anecdotal

evidenceofa‘creativitydrain’

whereby artists and arts businesses

are relocating to the inner North

because they cannot afford

Port Phillip rents.

Stakeholder consultation also

revealed that some business people

felt that major and neighbourhood

activity centres within Port Phillip

were becoming increasingly

homogenised in their retail, food and

entertainment offer.

Additionally, despite the abundance

of local job opportunities, the vast

majority of residents work elsewhere

which leads to poor job containment.

Figure 2 City of Port Phillip

Source: City of Port Phillip & Land Victoria data

September 2011

Page 11: Port Phillip Economic Development Strategy

19ECONOMIC DEVELOPMENT STRATEGY 2012-2016

STRATEGIC OPPORTUNITIESThe strategic opportunities for

the City of Port Phillip build on

the comparative advantages of

the municipality. Specifically,

opportunities exist to:

• Strengthenrelationshipsbetween

the business community and

local residents

• Facilitateemployment

partnerships to address social

disadvantage and take the lead

in creating a conducive business

environment to attract green and

creative businesses

• Increasethedegreeof

connectedness between

business and council and

enhancing knowledge capital

through research

• Continuetodevelopstrong

business networks with

industry partners

• DevelopFishermansBendto

maximise the area’s business

development potential

• MaximisetheCity’slocation

on Port Phillip Bay for tourism

development, including

leveraging from cruise ships

and St Kilda as a key tourism

destination for local, domestic

and international visitors

• Harnessthecreativecommunities

of Port Phillip to grow and

develop new business in the arts,

production and media industries

• Strengthenthecity’sunique

activity centres to meet the needs

of local residents and visitors

• Furtherattractandretain

professional business services in

St Kilda Road and South Melbourne.

STRATEGIC THREATSExternal threats are where Council

has little to no control. For example,

fluctuations in the Australian

dollar affect a number of industries,

particularly tourism.

A higher Australian dollar results

in more outbound international

travel and decreases the level of

inbound travel. Additionally, Council

programs can hinge on the policies

of the State and Federal Government,

such as the introduction of the price

on carbon, State Government related

planning decisions and changes in

interest rates. While Council has little

to no control over these external

factors, the key concern for Council

will be knowledge sharing with

industry and educating businesses

on these factors and how they will

be affected, including strategies that

can mitigate their impact.

SECTION 3

Page 12: Port Phillip Economic Development Strategy

21ECONOMIC DEVELOPMENT STRATEGY 2012-2016

StrAtEGiC poliCY CoNtEXt

A review of the existing policies

underpinning this Strategy revealed

a number of general policy

directions (as outlined below) that

relate to creating a sustainable

economic future for Port Phillip.

The City of Port Phillip Economic

Development Action Plan 2005-

2009 outlined a number of

strategic directions for economic

development in the municipality

including fine-tuning (not structural

change) of the local economy; a

greater Council role in economic

development leadership; marketing

and promotion of local businesses;

creation of vibrant, bustling

activity centres for neighbourhood

shopping; and development of a

business advisory board.

In addition, the City of Port Phillip

Tourism Strategy 2007-2010 sought

to manage visitation; encourage

visitor respectfulness; focus

on promoting existing tourism

strengths over building new product;

develop stronger networks with

industry partners; and provide

positive support to the local

tourism industry.

The strategy also encouraged active

participation by local residents in

what the community has to offer.

ECONOMIC DEVELOPMENT POLICY AND DIRECTION• The City of Port Phillip Council Plan

2009-2013 aimed to:

—> Facilitate economic

development which supports

a diverse and sustainable

community and underlines

the importance of seeking to

achieve social, environmental

and cultural sustainability aims,

not just economic growth at

whatever cost

—> Implement strategies to

encourage positive behaviour

from visitors

—> Promote the development of

safe and affordable cultural

events and the development

of integrated arts and learning

hubs whilst building a creative

community.

• The Fishermans Bend Planning

and Economic Development

Strategy 2010 provides a

number of initiatives that

identify directions for further

development into a high

technology industrial precinct.

This would deliver increased

opportunities for employment

and business development within

an environmental industry

business cluster, while redefining

the role of industrial land in South

Melbourne to accommodate a

shift in land use to better utilise

existing infrastructure

• ThePort Phillip Business

Confidence Survey 2011 identified

up-skilling in “advertising and

marketing” as the most popular

business development services

that Council can provide

for businesses, followed by

“networking” programs. These

findings are consistent with the

Port Phillip Business Confidence

Survey 2009 which found that

businesses regarded networking

and professional development

as key services that Council

can provide.

CENTRES OF INDUSTRIAL AND BUSINESS ACTIVITY Many of Port Phillip’s major activity

centres are viewed as rejuvenated

and powerful economic engines,

drawing in visitors and destination

shoppers from overseas, interstate

and country Victoria as well as

greater Melbourne. However, there

is a need to ensure that Port Phillip’s

activity centres serve the weekly

shopping and convenience needs of

the local population.

• The City of Port Phillip Activity

Centres Strategy 2006 provided

a holistic understanding of

the complex role and function

of activity centres. It further

provides an understanding of

the contribution activity centres

make to creating and supporting

sustainable communities

• The Municipal Strategic Statement

seeks to build on Port Phillip’s

competitive strengths to maximise

job opportunities in a changing

economy through:

—> Protecting the core industrial

hub of Fishermans Bend and its

association with the port

—> Maintaining the role of St Kilda

Road as the City’s premier

commercial strip

—> Facilitating the transition of key

business clusters to capitalise on

the proximity to the Melbourne

Central Business District, and

the emerging demand for

advanced business services and

knowledge based industries.

• The Fishermans Bend Planning

and Economic Development

Strategy 2010 laid out a number of

strategies for the Fishermans Bend

precinct including strengthening

existing business clusters, rolling

out skill building programs and

investigating the potential for

limited rezoning in the area to

attract different uses

• The South Melbourne Central

Structure Plan 2007 aimed to

establish South Melbourne Central

as the principal retail , business,

cultural and community centre

within the local area

• The South Melbourne Activity

Centre Business Plan 2007-12 vision

is to develop the South Melbourne

Business Precinct as the pre-

eminent shopping, business and

community centre in the City

of Port Phillip and as one of the

significant traditional activity

centres in Melbourne

• The Port Melbourne Activity Centre

Business Plan 2007-11 sought to

positiontheprecinctasthe‘heart’

of Port Melbourne, offering vibrant

street life, local convenience

shopping and a destination

for tourists

• The Fitzroy Street Strategic Business

Plan 2007-11 sought to create a

Fitzroy Street brand and diversify

the business mix to ensure the

future viability of the precinct

SECTION 4

Page 13: Port Phillip Economic Development Strategy

23ECONOMIC DEVELOPMENT STRATEGY 2012-2016

• The St Kilda Village (Acland Street)

Business Plan 2009-10 aspired to a

vision of St Kilda Village becoming

Melbourne’s most famous and

loved seaside village, with a

special vibe and atmosphere that

is unique to St Kilda

• The Carlisle Street Activity Centre

Structure Plan 2009 sought to

enhance Carlisle Street’s retail

offer and facilitate the evolution of

a multi-functional activity centre

• The Creative Futures Strategy

2008 aimed to promote Port

Phillip as a home-base for cultural

organisations, maximising

the economic and cultural

contribution of the arts industry

to the municipality.

ENVIRONMENTAL SUSTAINABILITY POLICY AND DIRECTION• The City of Port Phillip Council Plan

2009-2013 focuses on the role

of environmental sustainability

as a driver for development in

the municipality

• The City of Port Phillip Budget 2011-12

announced significant funding

for climate change programs

including environmental retrofits

of commercial buildings

• The Fishermans Bend Planning and

Economic Development Strategy 2010

addresses the impact of industrial

development on climate change,

and is focused on establishing

FishermansBendasthe‘premier’

environmental industry business

cluster in Victoria

• The City of Port Phillip’s 2007

Toward Zero, Sustainable Environment

Strategy set community emissions

reduction targets to reduce the

community’s greenhouse gas

emissions by 50 per cent by 2020

—> The City of Port Phillip’s Draft

2011 Greenhouse Plan further

outlines how Council intends

to work with the community

to reduce its greenhouse gas

emissions

—> The City of Port Phillip’s

Water Plan sets targets for the

community to reduce mains

water consumption by

50 per cent by 2020 and

outlines Council’s role in

building community

capacity to achieve this

—> The City of Port Phillip’s

Sustainable Transport Strategy

has a vision for Port Phillip to

be a connected and liveable

city where residents, visitors

and workers can live and

travel car-free by improving

the convenience, safety,

accessibility and range of

sustainable travel choices

across our City

—> The City of Port Phillip’s Walk

and Bike Plans set out proposed

strategies and actions to

improve walking and bicycle

riding in the City of Port Phillip

from 2011-2020. These plans will

help Council, together with the

community, to take action on

climate change by encouraging

the use of sustainable transport

modes that minimise energy use

—> The City of Port Phillip’s

Climate Change Adaptation Plan

recognises the need for climate

change adaptation in the future

design and development of the

municipality. To this end, the

City will work with all sectors

of the community, regional,

state and federal stakeholders

to deliver good planning

policy and urban design, and

ensure that development of

infrastructure and public spaces

are climate-adept

—> The Waste Management and

Resource Recovery Plan 2009 -

2014 sets a target to achieve a

75 per cent reduction in per capita

community waste to landfill

by 2020, in collaboration with

regional, state and federal partners.

• TheCityofPortPhillip’sPublic

Transport Advocacy Statement

outlines what upgrades to our

public transport infrastructure

are required to make the City

more liveable and accessible,

and to reduce our reliance on

vehicle use

• The Port Phillip Business Confidence

Survey 2011 found that 73 per cent

of businesses agree that there is a

role for Council in assisting local

business understand and respond

to issues arising from climate

change. The most commonly

identified was the need for Council

to assist local businesses respond

to climate change including

“awareness, information and

education” and “advice for/

communication with business”

• The Municipal Strategic Statement

encourages the operation of

commercial and industrial

buildings to be environmentally

sustainable.

Review and analysis of government,

economic and environmental

policies have been central to

development of this strategy.

SECTION 4

Page 14: Port Phillip Economic Development Strategy

25ECONOMIC DEVELOPMENT STRATEGY 2012-2016SECTION 5

ECoNoMiC CoNtEXtKEY FINDINGS• TheCityofPortPhillip’s

population is growing rapidly and

this is set to continue in the short to

medium term

• PortPhilliphasasignificant

proportion of working age

adults indicating a large resident

workforce. Evidence suggests that

people over 60 years of age are

moving to Port Phillip, while at the

other end of the scale, younger

people under 24 years of age are

moving out of the area, as outlined

in section 5

• PortPhillip,asawhole,isanarea

of significant social advantage.

However, there are localised

pockets of social disadvantage

within the municipality.

Opportunities exist to develop

partnerships between industry

and community organisations

with the purpose of identifying

employment, education and

training opportunities for the

socially disadvantaged and

under-employed

• Althoughtherearemore

jobs than working residents in

Port Phillip, 75 per cent of

working residents are employed

outside the municipality.

This diminishes local multiplier

effects and impacts on

environmental sustainability

• Professionalservicesand

property, manufacturing, trade

and industry, creativity and

knowledge, tourism and retail

trade account for over 80 per cent

of jobs in the municipality.

Opportunities exist to:

—> Leverage from Port Phillip’s

competitive advantage in

professional services and

property to develop the area’s

reputation as a hub for advanced

business services

—> Transition Fishermans Bend

towards the production and

distribution of higher valued

industrial products and services

—> Drive increased tourism yield

and dispersal, better leverage

from growth in the Australian

cruise sector and maximise

potential from events

—> Position Port Phillip as the

‘creativecity’anddevelop

key industry-attracting

clusters to promote economic

development within

the municipality

—> Brand and differentiate each

of the major retail precincts to

avoid homogenisation. There

is also the potential to build

on South Melbourne Central’s

existing core retail role and

transform it into a premier

retail destination for an

expanded catchment base.

• Emergingsectorswithinthe

municipality include green

businesses and home–based

businesses.

Opportunities exist to:

—> Develop an environmental

business cluster in

Fishermans Bend and

encourage existing businesses

to adopt environmentally

sustainable practices

—> Recognise and nurture the

home-based business sector

(acknowledging the important

role these businesses play) by

facilitating networking events and

providing a small business hub.

Page 15: Port Phillip Economic Development Strategy

0%

2%

4%

6%

8%

10%

12%

14%

16%

75+70-7465-6960-6455-5950-5445-4940-4435-3930-3425-2920-2415-1910-145-90-4

Melbourne (SD)Port Phillip (C)

SECTION 5 27ECONOMIC DEVELOPMENT STRATEGY 2012-2016

POPULATION TRENDSTable 2 shows the City of Port Phillip’s

resident population for 2001 and

2006. The population rose from

80,552 in 2001 to 90,458 in 2006,

representing an average annual

growth rate of 2.45 per cent which

is 0.88 per cent higher than the

growth rate for Melbourne Statistical

Division during the same period. The

significant growth in the Port Phillip

West SLA reflects the recent trend

towards high density brownfield

and infill redevelopment in the

Port Melbourne vicinity.

The City of Port Phillip resident

population is forecast to grow by

31.1 per cent to 118,616 in 2026

(refer Table 3). This represents

an average annual growth rate

of 1.46 per cent, outstripping the

expected annual growth rate for

Melbourne Statistical Division. The

greater opportunities for residential

development intensification that

exist in Port Phillip West (especially

around Port Melbourne, Queens

Road and St Kilda Road) are likely to

continue to drive growth in the north-

western areas of the municipality.

The City’s resident population is forecast to grow by 31.1 per cent to 118,616 in 2026.

DEMOGRAPHIC PROFILEFigure 3 shows that in 2006,

39 per cent of Port Phillip residents

were aged between 25 and 39 years

compared to only 23 per cent in

Melbourne Statistical Division.

Port Phillip is also significantly

under-represented in the 5-19 years

category (8 per cent compared to

19 per cent for Melbourne).

This data suggests that the primary

demographic for Port Phillip is

young couples, young families and

single adults under 40. The large

number of working age adults is

indicative of a significant resident

workforce within Port Phillip.

Between 2001 and 2006, there

was a significant decrease in the

5-24 years age cohort and very

low growth in the 65+ group

which may indicate forced

emigration of young people

and older residents from

Port Phillip due in part to housing

stock suitability, affordability

and gentrification pressures.

The highest proportion of

Port Phillip residents are aged

between 25 and 39 years.

The primary demographic for Port Phillip is young couples, young families and single adults under 40.

ESTIMATED RESIDENT POPULATION 2001 2006

AVERAGE GROWTH

AVERAGE ANNUAL GROWTH

Port Phillip (C) 80,552 90,458 12.29% 2.45%

St Kilda (SLA) 48,545 52,770 8.7% 1.74%

Port Phillip West (SLA)

32,007 37,688 15.07% 3.01%

Melbourne (SD) 3,471,625 3,744,373 7.86% 1.57%

Table 2 Population Trends 2001-2006

Source: ABS Census 2001, 2006

ESTIMATED RESIDENT POPULATION 2006 2010 2015 2020 2026

AVERAGE ANNUAL GROWTH

Port Phillip (C) 90,458 96,135 102,984 109,981 118,616 1.46%

St Kilda (SLA) 52,770 55,790 59,097 62,707 67,633 1.25%

Port Phillip West (SLA)

37,688 40,345 43,887 47,274 50,983 1.55%

Melbourne (SD) 3,471,625 4,018,336 4,334,338 4,644,070 5,000,048 1.36%

Table 3 Population Forecasts 2006-2026

Source: VIF 2008

Figure 3 Port Phillip Age Profile 2006

Source: ABS Census 2006

Page 16: Port Phillip Economic Development Strategy

SECTION 5 29ECONOMIC DEVELOPMENT STRATEGY 2012-2016

SOCIAL DISADVANTAGEAs Table 4 shows, Port Phillip is

an area of high socio-economic

advantage, ranking in the top

10 per cent of Local Government

Areas (LGAs) in Victoria and

significantly above the Melbourne

metropolitan average. However,

Port Phillip has several pockets

of significant disadvantage and

advantage which do not show

up in aggregate Socio-economic

Indexes for Areas (SEIFA) analysis.

In particular, some areas of St Kilda

rank as areas of moderate socio-

economic disadvantage.

COMMUTING PATTERNSTable 5 shows that 75 per cent

of residents work outside the

municipality and that more people

work in the City of Melbourne

(35 per cent) than in Port Phillip

(25 per cent). The data clearly

shows that the vast majority of Port

Phillip residents look outside the

area for work despite a high jobs-

to-worker ratio of 1.64 within the

municipality. This not only reduces

local multiplier effects but also has

implications for environmental

sustainability, especially given that

almost 25 per cent of residents travel

a distance greater than 10km to get

to work.

75percentofPortPhillip'sworking

residents are employed outside the

municipality.

ECONOMYREGIONAL ECONOMIC CONTExT

Although the City of Port Phillip

enjoys a strong economy of its own,

its unique geographic position

means that it is also significantly

influenced by its high profile

neighbours, namely, the Melbourne

CBD and the Port of Melbourne.

The Melbourne CBD is characterised

by a highly diversified economy

and plays a vital regional role in the

finance, IT, professional services and

tourism industries. Furthermore, the

city wields considerable influence on

the national economy as a whole and

is home to the headquarters of some

of Australia’s largest corporations

including Rio Tinto and BHP

(mining); NAB and ANZ (finance);

telecommunications (Telstra) and

automotive (Ford, Toyota, Holden).

Melbourne’s role as an important

national financial centre delivers

flow-on benefits to neighbouring

Port Phillip and has allowed for the

development of a financial precinct

along St Kilda Road.

According to the Port of Melbourne

Corporation’s own data collection

it is estimated that the Port

of Melbourne accounted for

approximately $80 billion of

movements in trade in the 2010-11

period, indicating the significant

economic impact the port has

on Victoria as a whole. At the

local level, the Port of Melbourne

exercises substantial influence

over Port Phillip through its

key port infrastructure and the

related industries that directly and

indirectly service the port. The Port

supports 248 jobs in Port Phillip,

largely through transport, logistics

and distribution companies.

The City of Port Phillip enjoys a strong economy, bolstered by those of neighbouring councils.

LOCAL GOVERNMENT AREA

2006 SEIFA SCORE

RANKING IN VICTORIA*

Port Phillip (C) 1065 73

Bayside (C) 1096 78

Glen Eira (C) 1071 75

Melbourne (C) 1049 68

Stonnington (C) 1088 77

Melbourne (SD) Average 1002 N/A

LOCAL GOVERNMENT AREA

TOTAL EMPLOYED

% EMPLOYED

MEAN TRAVEL DISTANCE*

Melbourne (C) 16,494 35% 6.3km

Port Phillip (C) 11,628 25% 0km

Stonnington (C) 2,551 5% 2.2km

Yarra (C) 2,301 5% 8.5km

Monash (C) 1,396 3% 22.3km

Boroondara (C) 1,255 3% 10.2km

Glen Eira (C) 1,254 3% 3.8km

Kingston (C) 1,041 2% 13.3km

Bayside (C) 905 2% 5.9km

Other/Not Stated 8,350 18%

Travel less than 10km 76%

Travel more than 10km 24%

Total 47,447 100%

1Economic Analysis of the Port of Melbourne (PriceWaterhouseCoopers, 2007)

•Rankingoutof80,80beingthehighest.

Table 4 SEIFA 2006 Analysis (Index of Relative Socio-Economic Advantage)

Source: ABS SEIFA, 2006

* Mean travel distance is calculated as the shortest distance given on Google Maps between the respective council offices for each LGA (for example St Kilda Town Hall to Prahran Town Hall gives a distance of 2.2km from Port Phillip to Stonnington).

Table 5 Employment by LGA Location 2006

Source: ABS Journey to Work, 2006; maps.google.com, 2010

Page 17: Port Phillip Economic Development Strategy

SECTION 5 31ECONOMIC DEVELOPMENT STRATEGY 2012-2016

ECONOMIC SECTOR OVERVIEW

Table 6 provides an assessment of

the economic contribution from

each industry sector in the City

of Port Phillip showing the total

number and percentage of jobs in

2006, the total number of businesses

in 2009 and the industry growth

from 2001 to 2006 as represented by

change in industry employment.

MAJOR INDUSTRY CATEGORIES

Based on Table 6, it is possible

to identify four major industry

categories which, together, account

for over 75 per cent of employment

in the municipality.

Each of the four specific industry

categories is described below and

unique opportunities for growth and

development are also identified.

PROFESSIONAL SERVICES

& PROPERTY

Professional services and property

is the most dominant sector of the

Port Phillip economy, accounting

for 37 per cent of jobs and almost

50 per cent of registered businesses

in the municipality. Furthermore,

several professional and property

industries are identified as key

growth sectors both globally and

nationally, for example, accounting,

financial planning and land

development (IBIS World, 2009).

Locally, between 2001 and 2006, the

Professional Services and Property

industry grew 6.1 per cent from 2001

to 2006 with Finance and Insurance

Services expanding by almost

20 per cent.

Spatial analysis reveals that

professional service businesses are

concentrated in the St Kilda Road

and South Melbourne areas of the

city (refer Figure 4).

Opportunities exist for Port Phillip to

further leverage from its competitive

advantage in the professional

services and property markets

to continue to develop the City’s

reputation as a hub for advanced

business services.

At the same time, Council needs to

be aware of the ongoing trend of

converting commercial properties

into residential use (especially in

St Kilda Road) and understand

what influence this may have on

the Port Phillip economy.

INDUSTRY SECTOR

TOTAL JOBS (2006)

% OF JOBS (2006)

NUMBER OF BUSINESSES (2009)

INDUSTRY GROWTH 2001-2006

Accommodation and

Food Services

5,644 7.2% 948 0.6%

Administrative and

Support Services

4,285 5.5% 948 -2.8%

Agriculture, Forestry

and Fishing

142 0.2% 194 2.6%

Arts and Recreation

Services

2,742 3.5% 598 9.8%

Construction 4,007 5.1% 1359 24.9%

Education and

Training

2,559 3.3% 352 8.0%

Electricity, Gas, Water

and Waste Services

695 0.9% 36 26.9%

Financial and

Insurance Services

7,260 9.3% 3200 19.4%

Information

Media and

Telecommunications

3,701 4.7% 623 -12.4%

Health Care and Social

Assistance

4,304 5.5% 792 15.5%

Manufacturing 4,432 5.7% 569 -9.5%

Mining 155 0.2% 82 -3.1%

Other Services 3,295 4.2% 957 11.2%

Professional, Scientific

and Technical

Services

15,863 20.2% 3913 5.8%

Public Administration

and Safety

2,851 3.6% 88 30.9%

Rental, Hiring and

Real Estate Services

2,291 2.9% 2257 6.4%

Retail Trade 5,538 7.1% 1124 9.4%

Transport, Postal

and Warehousing

2,991 3.8% 352 4.9%

Wholesale Trade 4,106 5.2% 982 10.7%

TOTAL 78,414 100.0% 19,374 8.8%

INDUSTRY GROUPINGS

INDUSTRY SECTORS

% OF JOBS

Professional Services

and Property

Financial and Insurance Services, Information Media

and Telecommunications, Professional, Scientific and

Technical Services, Rental, Hiring and Real Estate Services

37.1%

Manufacturing,

Trade and Industry

Construction, Electricity, Gas, Water and Waste

Services, Manufacturing, Transport, Postal and

Warehousing, Wholesale Trade

20.7%

Tourism Accommodation and Food Services, Arts and

Recreation Services

10.7%

Retail Trade Retail Trade 7.1%

Other industries 24.4%

TOTAL 100%

Table 6 Industry Sector Performance

Source: ABS Census, 2006, ABR 2010

Table 7 Major Industry Categories

Figure 4Spatial Distribution of Professional Services and

Property Businesses in Port Phillip

SOUTH WHARF MELBOURNE

SOUTH YARRA

ST KILDA

BALACLAVA

ELWOOD

WINDSOR

PORT MELBOURNESOUTH MELBOURNE

ST KILDA WEST

ST KILDA EAST

MIDDLE PARK

ALBERT PARK

PORT PHILLIP BAY

ELSTERNWICK

NUMBER OF PROFESSIONAL SERVICES & PROPERTY BUSINESSES BY SUBURB

2,930 to 2,950 (2) 400 to 700 (2) 1,750 to 2,930 (1) 60 to 400 (3) 700 to 1,750 (3)

Page 18: Port Phillip Economic Development Strategy

SECTION 5 33ECONOMIC DEVELOPMENT STRATEGY 2012-2016

Professional services and property

is the largest sector of the economy,

accounting for 37 per cent of jobs

and almost 50 per cent of registered

businesses.

MANUFACTURING, TRADE

AND INDUSTRY

Manufacturing, trade and industry

account for 21 per cent of all jobs in

the municipality. From 2001 to 2006,

Port Phillip saw significant growth

in the construction (24.9 per cent)

and wholesale trade (10.7 per cent)

industries while there was a decline

in manufacturing (-9.5 per cent), a

pattern which mirrors the national

trend of a restructuring of the

economy away from manufacturing

towards service-oriented industries.

Manufacturing, trade and industry

activity is clustered in the northern

parts of the municipality around

Port Melbourne, South Melbourne

and Melbourne (St Kilda Road).

Of particular importance is the

Fishermans Bend area which is

recognised as one of the most

significant industrial precincts

in the Melbourne metropolitan

region. Employment in Fishermans

Bend has contracted over the last

two decades with wholesale trade

picking up new jobs at the expense

of manufacturing, transport and

storage. As such, the City of Port

Phillip is taking action to protect

the area’s core function as a high

amenity industrial hub.

Figure 5Map of Manufacturing, Trade and Industry

Businesses in Port Phillip

NUMBER OF MANUFACTURING, TRADE & INDUSTRY BUSINESSES BY SUBURB

514 to 524 (2) 53 to 93 (2) 255 to 514 (2) 14 to 53 (3) 93 to 255 (2)

SOUTH WHARFMELBOURNE

SOUTH YARRA

ST KILDA

BALACLAVA

ELWOOD

WINDSOR

PORT MELBOURNESOUTH MELBOURNE

ST KILDA WEST

ST KILDA EAST

MIDDLE PARK

ALBERT PARK

PORT PHILLIP BAY

ELSTERNWICK

Page 19: Port Phillip Economic Development Strategy

SECTION 5 35ECONOMIC DEVELOPMENT STRATEGY 2012-2016

Port Phillip is home to numerous first class tourist attractions. During 2009, the City had some 1.4 million overnight visitors, 75 per cent of them in commercial accommodation.

RETAIL TRADE

Retail trade is a significant industry

in Port Phillip, accounting for

7 per cent of jobs and representing a

reputationasaretail‘hub’.

The municipality has five major

activity centres of regional

importance: Acland Street – St

Kilda Village; Fitzroy Street and

environs, St Kilda; Carlisle Street,

Balaclava; South Melbourne Central;

and Bay Street and surrounds,

Port Melbourne. There are also six

neighbourhood activity centres:

Victoria Avenue, Bridport Street

and Dundas Place – Albert Park;

Armstrong Street – Middle Park;

Elwood Village – Ormond Road

and Glenhuntly Road; Tennyson

Street – Elwood; Glen Eira Road

– Ripponlea; and Centre Avenue-

Garden City (refer Figure 6) . Retail

is well dispersed throughout the

city although there is a significant

concentration in the South Melbourne

area influenced by the presence of

the South Melbourne Market.

The retail precincts serve both the

needs of residents and visitors,

providing daily and weekly

convenience goods and services

as well as promoting a broad retail

offer that is attractive to tourists.

Opportunities exist to apply unique

branding to clearly differentiate

each of the major retail precincts

to avoid homogenisation and

maximise local multiplier effects

by encouraging more residents to

shop locally.

Figure 6Map of Activity Centres in Port Phillip

Source: Adaptation from City of Port Phillip & Land Victoria data September 2011

Opportunities exist to expand the

role of Fishermans Bend to provide

a high amenity, well-serviced

environment for manufacturing,

trade and industrial businesses and

to potentially develop new industry

clusters to augment the existing

economic landscape.

Construction and Wholesale Trade industries are growing.

TOURISM

Port Phillip is host to numerous

natural and man-made tourist

attractions of state-wide and

national significance including

St Kilda Beach and foreshore,

Luna Park and Station Pier.

The City also enjoys a reputation

as a thriving arts and entertainment

hub boasting theatres, galleries,

cinemas and several arts-based

events and festivals. A significant

number of visitors are attracted

to the range of attractions and

activities on offer, the diversity

and atmosphere of the area and

the quality of the experience.

Research and consultation

have highlighted the need for

improvements in visitor experience

and increased dispersal throughout

the municipality to relieve pressure

on the St Kilda region. Port Phillip is

part of the Inner Melbourne region,

the second largest tourism market

in Australia. The City attracted an

estimated 1.4 million overnight

visitors in the calendar year 2009.

Visitors staying in commercial

accommodation accounted for over

1 million of total overnight visitors,

whilst visitors staying with friends

and relatives accounted for an

additional 341,000 visitors.

The typical visitor to the City of

Port Phillip is somebody who lives

within the Melbourne metropolitan

area. They are aged between 25-34

years old and visit alone or with

their partner. Opportunities exist in

Port Phillip to drive increased yield

and dispersal, better leverage from

the growth in the Australian cruise

sector and investigate the potential

for new community-oriented events.

Table 8Overnight Visitors to City of Port Phillip

Source: PAVE model, Urban Enterprise

CLASSIFICATION VISITOR NIGHTS VISITORSNumber of Visitors

Staying in Commercial

Accommodation

2,009,011 1,057,374

Number of Visitors Staying

with Friends and Relatives

647,765 340,929

TOTAL 2,656,776 1,398,303

ST KILDA ROAD

ST KILDA

BALACLAVA

RIPPONLEAELWOOD

PORT MELBOURNE

SOUTH MELBOURNE

ST KILDA WEST

ST KILDA EAST

MIDDLE PARK

ALBERT PARK

PORT PHILLIP BAY

SOUTH WHARFMELBOURNE

SOUTH YARRA

WINDSOR

ELSTERNWICK

CENTREAVENUE

SOUTH MELBOURNE CENTRAL

CARLISLE STREET

GLEN EIRAROAD

TENNYSONSTREET

ELWOODVILLAGE

ST KILDAVILLAGE

FITZROY STREET& ENVIRONS

BAY STREET& SUROUNDS ALBERT PARK

VILLAGE

ARMSTRONGSTREET

Major Activity Centres Neighbourhood Activity Centres

Page 20: Port Phillip Economic Development Strategy

SECTION 5 37ECONOMIC DEVELOPMENT STRATEGY 2012-2016

At the same time, Council needs

to ensure that local business

associations are empowered to

deliver positive outcomes, and is

proactive in its efforts to build

the capacity and resilience of

these associations.

The major and neighbourhood retail–based activity centres are vital to the City’s profile and economy.CREATIVE INDUSTRIES

Since the 2002 publication of

Richard Florida’s seminal book

‘TheRiseoftheCreativeClass’,many

urban governments have sought

waystoattracttheso-called‘creative

class’ in the belief that the presence

of people with creative jobs and

talents helps to build a strong local

community, contributes to an overall

sense of identity and enhances the

city’s economic competitiveness.

The City of Port Phillip can justifiably

belabelledas‘Victoria’screative

city’ given that it has the highest

proportion of creative workers

(15 per cent of total employees)

of any municipality in the state

(refer Figure 7). These workers

are employed across a wide span

of creative industries including

computer systems design;

advertising and communications;

architecture; motion picture

production; audio/video production

and the performing arts.

There are two dominant locations

for creative industries in Port Phillip:

South Melbourne and St Kilda

(refer Figure 8). South Melbourne

is characterised by Advertising

and Marketing, Film, TV and

Radio, Music and Sound Recording

and Architectural services while

the St Kilda cluster is centred on

Performing Arts, Entertainers and

Photography (refer Figure 9).

Opportunities exist for Port Phillip

tocementits‘creativecity’status

and further develop key industry-

attracting clusters to promote

economic development within

the municipality. In particular,

Port Phillip can leverage from

projected global and/or national

growth in industries such as online

information services, social media

and video games.

CARDINIA

MORELANDBRIMBANK

WYNDHAM

MELTON

HUME

WHITTLESEA

NILLUMBIK

BANYULE

BAYSIDE

BOROONDARA

CASEY

FRANKSTON

GLEN EIRA

GREATER DANDENONG

HOBSONS BAY

KNOX

MANNINGHAMMARIBYRNONG

MAROONDAHMELBOURNE

MONASH

PORT PHILLIP

Figure 7Concentration of Creative Workers by Municipality

Source: ABS Census 2006 Note: the orange scale (dark to light) shows areas with the highest

concentration of creative workers

Figure 8Spatial Distribution of Creative Industries, Arts and Recreation Businesses in Port Phillip

Figure 9Clustering of Performing Arts Businesses in Port Phillip

Source: Australian Business Register 2010

NUMBER OF CREATIVE ARTS & RECREATION BUSINESSES BY SUBURB

266 to 312 (2) 42 to 96 (2) 165 to 266 (2) 9 to 42 (2) 96 to 165 (2)

SOUTH WHARFMELBOURNE

SOUTH YARRA

ST KILDA

BALACLAVA

ELWOOD

WINDSOR

PORT MELBOURNESOUTH MELBOURNE

ST KILDA WEST

ST KILDA EAST

MIDDLE PARK

ALBERT PARK

PORT PHILLIP BAY

ELSTERNWICK

SOUTH WHARF MELBOURNE

SOUTH YARRA

ST KILDA

BALACLAVA

ELWOOD

WINDSOR

PORT MELBOURNESOUTH MELBOURNE

ST KILDA WEST

ST KILDA EAST

MIDDLE PARK

ALBERT PARK

PORT PHILLIP BAY

ELSTERNWICK

SOUTH WHARFMELBOURNE

SOUTH YARRA

ST KILDA

BALACLAVA

ELWOOD

WINDSOR

PORT MELBOURNESOUTH MELBOURNE

ST KILDA WEST

ST KILDA EAST

MIDDLE PARK

ALBERT PARK

PORT PHILLIP BAY

ELSTERNWICK

SOUTH WHARF MELBOURNE

SOUTH YARRA

ST KILDA

BALACLAVA

ELWOOD

WINDSOR

PORT MELBOURNESOUTH MELBOURNE

ST KILDA WEST

ST KILDA EAST

MIDDLE PARK

ALBERT PARK

PORT PHILLIP BAY

ELSTERNWICK

PERFORMING ARTS OPERATION BUSINESSES BY SUBURB

31 to 34 (1) 5 to 10 (3) 11 to 30 (3) 0 to 5 (3)

Page 21: Port Phillip Economic Development Strategy

Table 9Percentage of Home Workers, 2006

Source: ABS Census 2006

LOCAL GOVERNMENT AREA

% OF RESIDENTS WORKING AT HOME (2006)

Port Phillip (C) 4.5%

Bayside (C) 6.4%

Glen Eira (C) 4.4%

Melbourne (C) 3.9%

Stonnington (C) 5.3%

Yarra (C) 4.4%

Melbourne (SD) 3.7%

SECTION 5 39ECONOMIC DEVELOPMENT STRATEGY 2012-2016

The City has a higher proportion of ‘creative workers’ than any municipality in Victoria.

EMERGING INDUSTRY SECTORS

Two types of enterprise are growing and have significant potential for further growth: green businesses and home-based businesses. The City is well positioned to capitalise.

GREEN BUSINESSES

Green businesses are defined as

companies that operate in the

manufacturing, research and

development, administrative

and related service industries

that contribute substantially

to preserving or restoring

environmental quality.

The green business sector is

anticipated to be a growth industry

over the coming decades with

environmental consulting identified

as a key global growth sector

(IBIS World, 2009). Port Phillip is

well positioned to capitalise on this

potential. The municipality boasts

a high amenity, well- serviced

business and industry environment

in Fishermans Bend which could be

suitable to develop environmental

technology, renewable energy and

related industries. In addition,

there are opportunities for Council

to encourage existing businesses

to adopt environmentally

sustainable practices.

Page 22: Port Phillip Economic Development Strategy

41ECONOMIC DEVELOPMENT STRATEGY 2012-2016SECTION 6

StrAtEGY ACtioN plAN

Based on the Strategic Context,

Strategic Policy Context and

Economic Context, and informed

by in-depth consultation with

stakeholders, Council has defined

six strategic directions to steer

economic development within the

City of Port Phillip over the next

five years. The strategic directions

are the bridge between vision

and strategy. They relate to where

Council needs to go and what it

needs to achieve in order to realise

its vision.

The six strategic directions are

intended to be pragmatic in that

they can be addressed by specific

strategies and actions as outlined in

the Strategy Action Plan.

1. An integrated and inclusive local community

2. Sound environmental leadership

3. A first class tourism destination which balances visitation and amenity

4. Flourishing activity centres

5. Strong economic clusters

6. The Creative City

Six strategic directions will

steer economic development in

Port Phillip. They are:

The Strategy Action Plan

includes a number of actions

intended to achieve the desired

strategic directions.

The core business activities (labelled

as ongoing) and projects funded in

the 2011/12 period are also captured

in the tables on the following pages,

supported by proposed initiatives

for the 2013 to 2016 period, subject

to future funding submissions

and ongoing assessment of the

business/economic environment.

Page 23: Port Phillip Economic Development Strategy

43ECONOMIC DEVELOPMENT STRATEGY 2012-2016SECTION 6

Section 5 identifies that there are

pockets of social disadvantage

within the municipality. Economic

development can help to address

this issue by fostering greater social

inclusion through increasing the

employability (skills, training,

volunteering, and job opportunities)

of local socially disadvantaged

residents.

The retail and tourism sectors in

Port Phillip (refer section 5) presents

an excellent opportunity to develop

partnership programs that can

train and up-skill unemployed

and/or underemployed residents,

while providing an expanded local

worker pool for local businesses and

increasing job containment within

the municipality.

COUNCIL PLAN ALIGNMENT

Strategic Direction 1 correlates with

the following Council Plan Direction

and Strategies:

DIRECTION 1:

ENGAGING AND GOVERNING

THE CITY

1.1.2 Strengthen relationships

with those who impact the

Port Phillip community.

1.1.3 Continue to develop and

encourage community

leadership.

1.2.6 Provide seamless and

consistent information to

the community.

1.3.2 Review services to ensure

they meet community needs.

DIRECTION 3:

STRENGTHENING OUR DIVERSE

AND INCLUSIVE COMMUNITY

3.1.3 Build on local strengths to

develop active, connected

communities.

3.1.7 Provide opportunities for

positive youth activity and

engagement.

3.1.8 Continue to strengthen our

relationship with Aboriginal

and Torres Strait Islanders

and actively support

reconciliation.

DIRECTION 4:

ENHANCING LIVEABILITY

4.2.4 Facilitate economic

development that strengthens

and supports a diverse and

sustainable community.

The Port Phillip community will be one where business people, the not-for-profit sector, residents and visitors value and benefit from each others’ strengths to contribute to a greater sense of vitality, vibrancy, sustainability and liveability in the area.

Opportunities to meaningfully

participate in community life by

way of employment, recreation and

social and civic activities are open to

all community members.

RATIONALE

As noted in section 3, there is

opportunity to foster engagement

in Port Phillip between the local

business community, residents

and Council. In particular, the City

of Port Phillip aims to highlight the

contribution and value that the

business community brings to

the municipality.

Strengthening these connections

can help to build a more integrated

community. This can be achieved

through improved information

sharing, celebrating the contribution

of local businesses and business

people, as well as improved

communication and facilitation of

networking and similar events to

bring stakeholders together.

At the same time, Council should

work with the business sector

to deliver benefits to the wider

community through corporate

social responsibility initiatives.

Port Phillip has a significant

proportion of working age adults

and a fast growing population

(refer section 5).

Increasing the number of residents

working locally can contribute

to a stronger, more integrated

community as well as helping to

achieve sustainability objectives

relating to reduced car use for

commuting (as per section 5,

75 per cent of Port Phillip working

residents are employed outside

the municipality).

Council also recognises that the

home-based and small business

sectors make a vital contribution

to theCity of Port Phillip economy

(refer section 5) and that better

integrating these businesses into

the community and wider economy

should be encouraged.

STRATEGIC DIRECTION 1: AN INTEGRATED AND INCLUSIVE LOCAL COMMUNITY

Page 24: Port Phillip Economic Development Strategy

45ECONOMIC DEVELOPMENT STRATEGY 2012-2016SECTION 6

STRATEGY 3: CONNECT THE BUSINESS COMMUNITY WITH THE CITY OF PORT PHILLIPACTION OUTCOMES PARTNER TIMELINE1.3.1 Develop business newsletters,

distributed to local businesses,

electronically and via direct mail.

—> Highlights business excellence within the City of Port Phillip

—> Promotes the Council’s programs, events and campaigns

to the business community

—> Increases the level of engagement and networking

between the business community, not-for-profit sector,

residents and Council.

Local Business Ongoing

1.3.2 Build and design a new City of

Port Phillip business website

and upgrade online marketing

communications tools.

—> Provides opportunity for greater engagement with the

business community

—> Assists business to better navigate Council’s services

and processes.

Information

Systems

Department,

Comms and

Engagement

Unit, Local

Business

End 2011

1.3.3 Maintain the new City of Port

Phillip business website,

communicate electronically to

website subscribers and distribute

quarterly business newsletters

per year.

—> Provides essential information to businesses in Port

Phillip, such as up-to-date information on legislative

changes, grants and funding opportunities,

achievements and events

—> Provides an inexpensive and effective means for

communication.

City of

Port Phillip

Business

Website

Subscribers

Ongoing

1.3.4 Facilitate online networks to

connect local businesses with

each other and with the City of

Port Phillip through the Business

Website, including videos, blogs

and forums.

—> Creates a networked business sector to foster

information sharing, advice, ideas and resources

—> Increases capacity and resilience of business

—> Strengthens the local economy through maximising the

“local multiplier effect”.

Information

Systems

Department

Ongoing

1.3.5 Develop a customer management

and communications system

within the Business Website to

track business stakeholders,

event attendance and workshop

participation.

—> Increases Council’s knowledge of local business issues

and needs

—> Enhances the ability for Council to work more closely

with the Port Phillip business community.

Information

Systems

Department

Mid 2012

1.3.6 Establish an Economic Development

Advisory Panel, with an ability to

establish sub-committees to assist

in the delivery of programs such as

the Business Excellence Awards.

—> Advises and increases the knowledge of Council in

relation to economic and business issues

—> Creates new perspectives and ideas from the Port

Phillip business community to guide Council in the

implementation of the Economic Development Strategy

—> Improves communication between Council and the local

business community.

Local Business,

business

associations

End 2012

STRATEGY 1: CONTINUE TO FACILITATE CAPACITY BUILDING FOR LOCAL BUSINESSESACTION OUTCOMES PARTNER TIMELINE1.1.1 Develop and administer the

biennial Business Excellence

Awards through promotion,

nomination process and ongoing

enhancement of the program.

—> Rewards and recognises the success and achievements of

business in the Port Phillip community

—> Encourages business development and innovation

towards whole of community benefit

—> Shapes and influences the direction of business in Port Phillip

—> Attracts strong partnerships with external stakeholders.

Local Business Ongoing

1.1.2 Host a range of networking

events, business development

workshops and business

mentoring programs.

—> Assists business people to improve their skills and

strengthen their networks

—> Increases capacity and resilience of business.

Small Business

Victoria, Local

Business

Ongoing

1.1.3 Collaborate with the City of Obu

in Japan, Port Phillip’s Sister City,

to exchange skills and products of

various industries by:

•Supportingmutualvisitsby

industrial bodies between

Port Phillip and Obu

•Conductingproductexhibitions.

—> Enables an inclusive, welcoming community that values

and celebrates diversity

—> Promotes the development of commerce, trade and

tourism between City of Port Phillip and City of Obu

—> Encourages meaningful links and friendships between

the residents of Port Phillip and Obu.

City of Obu,

Comms and

Engagement

Unit

Ongoing

1.1.4 Develop exchanges of skills and

products of various industries

to promote the development of

commerce, trade and tourism,

under Port Phillip’s Friendship

Agreement with Hindmarsh Shire.

—> Facilitates the development of friendship and achieves a

connection and understanding between the respective

inner urban and rural communities

—> Promotes and exhibits tourist sites and products.

Hindmarsh

Shire Council,

Comms and

Engagement

Unit

Ongoing

STRATEGY 2: PROMOTE THE BENEFITS OF ECONOMIC DEVELOPMENT AND A STRONG BUSINESS SECTOR TO THE LOCAL PORT PHILLIP COMMUNITY

ACTION OUTCOMES PARTNER TIMELINE1.2.1 Develop an iPhone App to

provide a social media platform for

Port Phillip and its businesses, in

particular, retail precincts.

—> Provides an opportunity for businesses to connect with

residents of the local communities which make up their

primary consumer base

—> Inspires residents to shop locally, attracts new visitors

to Port Phillip and provides a one-stop shop virtual guide

for the community

—> Allows businesses listed on the App to add social

media-styled news stories to their profile.

Comms and

Engagement

Unit

End 2011

1.2.2 Promote‘localheroes’:businesses

and business people who have

served the community well and

contributed to its diversity and

vibrancy by producing a suite of

vignettes to tell their stories.

—> A suite of videos available on the City of Port Phillip

Business Website that rewards and recognises the

success and achievements of individuals and businesses

in the Port Phillip community.

Local Business End 2011

1.2.3 Undertake economic research to

producean‘economicprofile’for

the City of Port Phillip available to

the community via the internet.

—> Provides an easy accessible source of economic data for

Port Phillip businesses and potential investors on the

economic position of the municipality, and opportunities

for future growth

—> Tracks the growth of Port Phillip in terms of industry

development and employment trends.

Local business,

State & Federal

agencies

End 2011

Page 25: Port Phillip Economic Development Strategy

47ECONOMIC DEVELOPMENT STRATEGY 2012-2016

STRATEGY 6: PROMOTE AND FACILITATE A GREATER PERCENTAGE OF JOB CONTAINMENT IN THE MUNICIPALITY

ACTION OUTCOMES PARTNER TIMELINE1.6.1 Organise and run a series of

job matching events by industry

sectors to bring together local

businesses looking for staff

and local residents interested in

career opportunities.

—> Provides a forum which connects business and the

community by matching jobs with residents, thereby

increasing the proportion of residents working locally.

Local Business Mid 2013

1.6.2 Undertake research to investigate

opportunities for greater job

containment within the City.

The research should include:

•Assessmentoflabourand

skills shortages

•Reviewofsuccessfuljobmatching

schemes from other LGAs

•UtilisationoftheInnerMelbourne

ActionPlan‘WorkIntegrated

Learning’ program.

—> Identifies opportunities for job containment within

the municipality

—> Allows businesses and Council to target specific skills

and industries to better match individuals with jobs

—> Capitalises on the opportunity to place students

within various Council Departments.

—> Enables local access to learning opportunities

for professional and personal development.

Inner

Melbourne

Action Plan,

Other LGAs,

Local Business

Mid 2013

1.6.3 Investigate and actively pursue

opportunities to attract new

business and industry to the

City of PortPhillip

—> Ensures the City of Port Phillip openly supports

new business intenders and enquiries.—> The City of Port Phillip is willing to work with all

stakeholders to attract and establish new business

and industry opportunities.

Business

Associations,

Local Industry

Groups, State

& Federal

agencies

Ongoing

STRATEGY 4: MAXIMISE OPPORTUNITIES FOR CORPORATE SOCIAL RESPONSIBILITY WITHIN LOCAL BUSINESSES

ACTION OUTCOMES PARTNER TIMELINE1.4.1 Work in partnership with Community

Development to encourage local

businesses to invest and support local

charities and community-based,

not-for-profit organisations.

—> Supports the needs of community through business

sponsorship and partnership with community-based,

not-for-profit organisations.

Community

Development

Department,

Local Business,

Not-for-profit

sector

Ongoing

1.4.2 Develop partnerships between

industry and community organisations

in the arts, recreation, retail trade

and accommodation and food sector

with the purpose of identifying jobs

and training opportunities for the

socially disadvantaged.

—> Improves the employment prospects for the socially

disadvantaged within the City of Port Phillip

—> Reduces unemployment levels within the municipality

and improves quality of life for residents

—> Raises awareness amongst a broad audience about

issues contributing to disadvantage.

Local Business,

local industry

groups,

community

organisations,

St Kilda

Inclusion

Project

End 2012

STRATEGY 5: INCREASE THE EMPLOYABILITY OF DISADVANTAGED, UNEMPLOYED AND UNDEREMPLOYED RESIDENTS

ACTION OUTCOMES PARTNER TIMELINE1.5.1 Partner with Community

Development to build capacity

of the local Aboriginal and Torres

Strait Islander Community’s

employment and business

development potential by:

•SponsoringtheYulkuumJerrang

Economic Development Conference

•Assistingintheimplementation

of the Aboriginal Employment

Strategy.

—> Continues to strengthen our relationship with

Aboriginal and Torres Strait Islanders and actively

support reconciliation

—> Builds on local strengths to develop active,

connected communities.

Community

Development

Department,

Koori Business

Network

End 2011

1.5.2 Reinvigorate Council

partnerships with education

and training providers and

institutions and networks

including the Local Learning and

Employment Network (LLEN)

and youth and community

organisations to increase skills

coaching, work experience

and education and training

opportunities for the

unemployed, underemployed

and disadvantaged, enhance

career development and

encourage life-long learning.

—> Provides opportunities for positive youth activity

and engagement.

—> Provides those who are underemployed and those

disengaged from the workforce with opportunities

to improve their skills and experience, thereby

increasing job prospects and improving quality of life.

—> Connects community groups and disadvantaged,

providing support and a sense of belonging.

Local

Learning and

Employment

Networks,

Youth and

Community

organisations,

Family, Youth

and Children

Department

End 2012

SECTION 6

Page 26: Port Phillip Economic Development Strategy

49ECONOMIC DEVELOPMENT STRATEGY 2012-2016

STRATEGY 7: PROMOTE ENVIRONMENTALLY FRIENDLY BUSINESS PRACTICESACTION OUTCOMES PARTNER TIMELINE

2.7.1 Collaborate with (or promote)

Council, State & Federal

Government climate change

programs to local businesses in Port

Phillip.

—> Assists local businesses in becoming more

environmentally sustainable

—> Increases in the number of local businesses using

Council climate change programs.

State & Federal

Government

Agencies,

Sustainability

Department,

Local Business

Ongoing

2.7.2 Evaluate the effectiveness of the

pilot Green Business Program.

Apply key learnings to develop a

staged implementation plan that

progressively rolls out the program

to various activity centres across

the municipality over the next

three years.

—> Provides local business owners with a tailored range

of options to improve the efficiency and reduce the

environmental impact of their business.

Sustainability

Department,

Local Business

Mid 2012

2.7.3 Participate in the CitySwitch

program by employing a dedicated

CitySwitch Officer to recruit

signatories to the program.

—> Provides local business owners with a tailored range

of options to improve the efficiency and reduce the

environmental impact of their business.

Sustainability

Victoria, City of

Melbourne, City

of Yarra, Local

Business

Mid 2012

2.7.4 Promote the use of Ecologically

Sustainable Development (ESD)

initiatives such as solar panels,

‘greenroofs’,windgeneration

and water collection on all new or

retrofitted commercial buildings.

—> Manages the impact of climate change on the City’s

assets and infrastructure.

Strategic

Planning Unit,

Sustainability

Department,

Local Business

Mid 2013

Environmental sustainability will be at the forefront of the Port Phillip economy both in relation to existing business

practices and development of green

business clusters.

RATIONALE

Economic development helps to

drive environmentally sustainable

business practices. As per section 4,

there are a range of strategies and

plans that Council has adopted that

are targeted to the business sector in

relation to improving the knowledge

and application of environmentally

sustainable practices. Council

should promote these strategies and

investigate new opportunities and

initiatives to bolster Port Phillip’s

green credentials.

Section 5 identifies an emerging

opportunity in green businesses.

There is an excellent opportunity

for the City of Port Phillip to

leverage from projected national

growth in the green sector to

attract environmental businesses

to establish or relocate in the

municipality. In particular,

Fishermans Bend should be

investigated to examine its

potential as a high-amenity

green business precinct.

In terms of the total annual

greenhouse gas emissions for

the Port Phillip Community, the

commercial sector accounts for

52.3 per cent of total emissions.

The residential sector and industrial

sector account for 35.5 per cent and

12.2 per cent respectively.

These numbers reflect Port Phillip’s

economic makeup in terms of

Port Phillip businesses operating

primarily in the commercial space.

Action taken at a commercial level

is the most effective path for Port

Phillip to reduce carbon emissions

for the community. Most energy

efficiency actions will pay for

themselves within a short time

(in some cases, instantly) and are

often a solution with little to no

cost to implement.

COUNCIL PLAN ALIGNMENT

Strategic Direction 2 correlates with

the following Council Plan Strategies:

DIRECTION 2:

TAKING ACTION

ON CLIMATE CHANGE

2.1.3 Facilitate community action

in reducing potable water and

non-renewable energy use.

2.3.1 Improve community

understanding and build

resilience in responding to the

impacts of climate change.

2.3.2 Investigate and manage

the impact of climate

change on the City’s assets

and infrastructure.

DIRECTION 4:

ENHANCING LIVEABILITY

4.2.4 Facilitate economic

development that strengthens

and supports a diverse and

sustainable community.

4.3.3 Promote increased

community action in

caring for our environment.

SECTION 6

Photo: John Gollings

STRATEGIC DIRECTION 2: SOUND ENVIRONMENTAL LEADERSHIP

Page 27: Port Phillip Economic Development Strategy

51ECONOMIC DEVELOPMENT STRATEGY 2012-2016

Port Phillip will encourage sustainable tourism experiences and respectful visitation which does not compromise local amenity or the natural environment.

RATIONALE

Port Phillip boasts excellent tourism

infrastructure, a drawcard location,

an iconic atmosphere and a wide

range of natural and man-made

assets. The municipality currently

enjoys very high levels of visitation

and, not surprisingly, tourism

is a pillar of the local economy

(refer section 5).

Research and consultation indicates

that Council’s priorities for tourism

development should be focused

on the overall visitor experience,

increasing visitor dispersal

throughout the municipality to

relieve the burden on tourism

‘hotspots’suchasStKildaforeshore,

leveraging off the growing cruise

sector and encouraging higher

yielding product development.

Achieving these outcomes can

be facilitated through strategic

partnerships with local tourism

associations (for example, the

St Kilda Tourism Association and

regional and state organisations

including the Inner Melbourne

Action Plan, Tourism Victoria and

Tourism Alliance Victoria).

COUNCIL PLAN ALIGNMENT

Strategic Direction 3 correlates with

the following Council Plan Strategies:

DIRECTION 1:

ENGAGING AND GOVERNING

THE CITY

1.1.3 Continue to develop

and encourage

community leadership.

DIRECTION 2:

TAKING ACTION ON

CLIMATE CHANGE

2.2.1 Promote transport modes that

minimise energy use.

2.4.1 Maximise partnerships and

resource sharing in mitigating

the impacts of climate

change on the community.

DIRECTION 3:

STRENGTHENING OUR DIVERSE

AND INCLUSIVE COMMUNITY

3.1.3 Build on local strengths

to develop active,

connected communities.

DIRECTION 4:

ENHANCING LIVEABILITY

4.1.4 Improve the interface

between residential and

visitor impact.

4.2.4 Facilitate economic

development that strengthens

and supports a diverse and

sustainable community.

STRATEGY 8: PROVIDE A BUSINESS ENVIRONMENT IN PORT PHILLIP THAT IS ATTRACTIVE TO GREEN BUSINESSES

ACTION OUTCOMES PARTNER TIMELINE2.8.1 Undertake research to inform

Council on green business

opportunities and investment

attraction. Research includes:

•Auditingexistinggreenbusinesses

•Surveyingexistinggreen

businesses to understand what

attracted them to Port Phillip and

what creates a good environment

for the green sector

•Nationalandinternational

research on green jobs

•EngagementwithState&

Federal government agencies

to understand emerging green

business trends and opportunities.

—> Provides an understanding of green business potential

within Port Phillip

—> Identifies the strengths and opportunities within the

green sector, and the key factors that can attract and

retain businesses within the municipality

—> Creates opportunity for Council to partner with State &

Federal government agencies, aligning the Council’s

goals and strategies for green businesses accordingly.

Local business,

Sustainability

Department,

State & Federal

agencies

Mid 2013

2.8.2 Prepare a business plan for the

growth of the environmental

industry, including businesses

to be targeted, employment

and training opportunities, and

sources of support funding.

This could focus on the

Fishermans Bend precinct.

—> Continues the growth of the environmental business

sector in Port Phillip, supporting development in the

Fishermans Bend precinct through targeted investment

and employment

—> Provides key strategies and actions to foster economic

growth and support jobs in the municipality

—> Advocates for the future use of Fishermans Bend.

Local business,

State & Federal

agencies

Mid 2013

SECTION 6

STRATEGIC DIRECTION 3: A FIRST CLASS TOURISM DESTINATION WHICH BALANCES VISITATION AND AMENITY

Page 28: Port Phillip Economic Development Strategy

53ECONOMIC DEVELOPMENT STRATEGY 2012-2016

STRATEGY 9: MAXIMISE TOURISM YIELD FROM EXISTING ASSETS AND INCREASE VISITATION DISPERSAL THROUGHOUT THE MUNICIPALITY (CONTINUED)

ACTION OUTCOMES PARTNER TIMELINE3.9.6 Work in partnership with the

newly-formed St Kilda Tourism

Association to build its capacity

and assist the achievement of its

strategic objectives.

—> Generates high yield visitation, including visiting friends

and family

—> Empowers community group and helps build capacity

of the St Kilda Tourism Association to deliver positive

visitation outcomes

—> Assists with the dispersal of visitors and through

increased awareness and direction to key attractions

—> Enhances visitor experience by linking with regional

initiatives (e.g. Visit Victoria)

—> Promotes active local participation and a strong sense

of community pride.

Tourism

Victoria,

Destination

Melbourne,

St Kilda

Tourism

Association,

St Kilda Village

Business

Association,

Fitzroy St

Business

Association

June 2012

3.9.7 Conduct research to understand

visitor and resident perceptions

of local tourism products, review

current industry trends and assess

potential new tourism markets

(e.g. Asia) to inform future tourism

strategic directions for tourism.

—> Assists Port Phillip Council in understanding visitor

trends, perceptions and preferences

—> Creates opportunity to explore new tourism markets

and open new visitor channels, either as an individual

Council or with Council’s Tourism Partners.

Tourism

Victoria

Destination

Melbourne, St

Kilda Tourism

Association,

Industry

partners

End 2012

3.9.8 Undertake an audit of existing

tourism product and identify

where product is under-utilised

and/or has capacity for increased

visitation and dispersal.

—> Improves the allocation of visitor resources within

the municipality

—> Assists in the identification of gaps in existing

tourism products.

St Kilda

Tourism

Association,

Destination

Melbourne

End 2012

STRATEGY 9: MAXIMISE TOURISM YIELD FROM EXISTING ASSETS AND INCREASE VISITATION DISPERSAL THROUGHOUT THE MUNICIPALITY

ACTION OUTCOMES PARTNER TIMELINE3.9.1 Support the Tourism Accreditation

Program, which is a development

tool designed to establish and

continually enhance industry

professionalism and improve

standards.

—> Assists tourism operators to meet the ever increasing

domestic and international visitors’ expectations of

receiving quality professional products and services

leading to a positive visitor experience

—> Provides both consumers and industry with an

assurance that the accredited tourism business

is committed to quality business practises and

professionalism

—> Ensures consistent standards of product and service

delivery meet and, where possible, exceed the visitors’

expectations.

Australian

Tourism

Accreditation

Program,

Tourism

Operators,

Melbourne

Visitor

Information

Centre

Ongoing

3.9.2 Collaborate with City of Melbourne,

City of Stonnington and City of Yarra

to strategically develop and position

Inner Melbourne as a vibrant and

welcoming destination by:

•Showcasingthepersonalityof

Inner Melbourne to maximise

the benefits to local community

and economy

•Identifyingandinfluencing

ways to make it easy for visitors

to explore Inner Melbourne.

—> Supports businesses in Port Phillip through

increased visitation

—> Increases international and domestic visitor dispersal

to Port Phillip with clearly articulated gateways to enter

the municipality

—> Enables Port Phillip to capitalise on the international

and domestic visitors who may only visit the City of

Melbourne, ensuring flow-on benefits for Port Phillip

—> Positions the City of Port Phillip as an integral inner

Melbourne destination.

Inner

Melbourne

Action Plan,

Tourism

Working Group

Ongoing

3.9.3 Participate in Destination

Melbourne partnership campaigns,

which include:

•MelbourneOfficialVisitors’Guide

•VisitingFriendsandRelatives’

Program

•Insider’sGuidetoMelbourne

•AccommodationGuide

•CruiseArrivalGuide

•RepresentationatIndustryExpos.

—> Positions the City of Port Phillip as an integral Inner

Melbourne destination

—> Develops integrated and co-operative marketing

opportunities between City of Port Phillip and

Destination Melbourne to encourage greater demand,

yield and visitor dispersal

—> Promotes City of Port Phillip to a wider audience,

and through a number of communication channels,

increasing the volume of visitors to the municipality.

Destination

Melbourne,

Other LGAs,

St Kilda

Tourism

Association

Ongoing

3.9.4 Produce and distribute City of Port

Phillip visitor maps with embedded

walking and cycling messages to

drive visitor dispersal and encourage

sustainable transport modes.

—> Promotes transport modes that minimise energy use

—> Improves the interface between residential and

visitor impact

—> Reduces car parking demand

—> Creates opportunities for reallocating road space,

thus reinforcing sustainable travel choices within

key visitor destinations.

Sustainability

Department,

Local Tourism

Businesses

Ongoing

3.9.5 Investigate opportunities to build

share of visitation from cruise

shipping at Port Melbourne.

—> Captures flow-on benefits from cruise shipping across

the municipality

—> Generates a greater volume of visitors through activity

centres and business precincts in Port Phillip.

Local Tourism

Operators, Port

Melbourne

Inc., Port of

Melbourne

Corporation

Ongoing

SECTION 6

Page 29: Port Phillip Economic Development Strategy

SECTION 6 55ECONOMIC DEVELOPMENT STRATEGY 2012-2016

STRATEGY 10: EDUCATE LOCAL TOURISM OPERATORS ON THE NEED TO BALANCE VISITATION AGAINST AMENITY AND ENVIRONMENTAL IMPACTS

ACTION OUTCOMES PARTNER TIMELINE3.10.1 Continue to develop and support

tourism networks and partnerships

both internally (between local

operators) and externally (with

industry/regional tourism

associations and significant

tourism attractions or product).

—> Facilitates information and resource sharing within the

tourism network, increasing the capacity and resilience

of tourism businesses.

St Kilda

Tourism

Association,

Local Tourism

Businesses,

Melbourne

Visitor

Information

Centre

Ongoing

3.10.2 Host Tourism Excellence

Workshops facilitated by industry

experts on tourism excellence to

assist business people to improve

their skills.

—> Provides tourism operators with information and

guidance on best-practise

—> Increases capacity and resilience of tourism businesses.

Australian

Tourism

Accreditation

Program,

St Kilda

Tourism

Association,

Destination

Melbourne,

Local Tourism

Operators

Ongoing

3.10.3 Host the preparatory workshop

designed for all entrants of the

Victorian Tourism Awards.

—> Provides a valuable step-by-step guide for tourism

businesses to complete the award submission,

including templates, helpful tips and important dates.

Victoria

Tourism

Industry

Council,

Tourism

Victoria,

St Kilda

Tourism

Association

Annually (May)

3.10.4 Undertake a Green Tourism

program to promote

environmentally sustainable

practices to local tourism

operators.

—> Contributes to the impact reduction of climate change on

the community

—> Improves the awareness and adoption of green

principles by business operating in the tourism industry.

Tourism

operators

End 2012

3.10.5 Partner with Community

Development to educate and

inform local tourism operators

with respect to harm minimisation,

safety and amenity programs. For

example, the Port Phillip Accord

program, which encourages and

promotes best practice in licensed

premises in the City of Port Phillip.

—> Promotes respectful behaviour and minimises negative

impacts on the residential community

—> Improves the interface between residential and

visitor impact

—> Increases the attractiveness of Port Phillip as a

tourist destination.

Community

Development

Department,

Local Business

Mid 2013

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57ECONOMIC DEVELOPMENT STRATEGY 2012-2016

STRATEGY 11: OPTIMISE THE BRANDING AND DIFFERENTIATION OF ACTIVITY CENTRES TO BE BASED ON UNIqUE PRODUCT STRENGTHS

ACTION OUTCOMES PARTNER TIMELINE4.11.1 Continue the ongoing

administration and governance

of Special Rates Schemes, in

partnership with Business

Associations, to enable:

•BusinessAssociationstodevelop

individual business plans which

maintaina‘pointofdifference’

and diversified business mix

•Localself-sufficiencyinthe

retail offering available to the

community

•Thefacilitationofbusiness

development and coordinated

marketing and promotion.

—> Maintains and builds upon the unique character of the

city’s neighbourhoods

—> Ensures the community is able shop locally to support

economic and environmental sustainability objectives

—> Enhances business promotion through the special

rate scheme

—> Maintains and strengthens Council’s collaborative and

informative relationship with the Business Associations

to facilitate flourishing activity centres.

Major Activity

Centres,

Business

Associations,

Local Business,

Finance

Department

Ongoing

4.11.2 Evaluate the potential of

establishing a special rate

scheme or charge for non-levy

neighbourhood activity centres.

—> Increases collaboration between businesses within

activity centres, potentially leading to increased

investment, employment and quality of life

—> Enhances the viability of businesses in neighbourhood

activity centres and creates opportunities for

employment growth

—> Increases connection between business and

residential community.

Neighbourhood

Activity Centres,

Business

Associations

June 2012

STRATEGY 12: CONTINUE TO STRENGTHEN THE ROLE AND CAPACITY OF BUSINESS ASSOCIATIONS

ACTION OUTCOMES PARTNER TIMELINE4.12.1 Provide governance training

for board members of Business

Associations within the City of

Port Phillip.

—> Promotes a culture of good governance within the

Business Associations

—> Enhances board member’s skills and knowledge,

improving the operational effectiveness of the

Business Associations.

Business

Associations

Ongoing

4.12.2 Conductquarterly‘Building

Connections’ networking events

for the Business Associations

within the City of Port Phillip.

—> Establishes strong networks and alliances between

Business Associations, providing support, advice

and direction on a number of common issues and

opportunities.

Business

Associations

Ongoing

4.12.3 Conduct the biennial Port Phillip

Business Confidence Survey.

—> Provides insight into the overall local business

environment and performance including business

confidence

—> Monitors changes in the characteristics of the local

business community.

Local Business Ongoing

The Port Phillip community will be supported by a number of strong, vibrant, differentiated and accessible major, neighbourhood and local activity centres providing convenience to the local community.

RATIONALE

Retail is a significant industry in

Port Phillip (refer section 5) and acts

as a major attraction for visitors.

However, as per section 3, there

are concerns that Port Phillip’s

retail precincts are becoming

increasingly homogenised in their

retail, food and entertainment

offer. To maintain both local and

regional competitiveness, major and

neighbourhood activity centres and

other shopping precincts should be

developed so that they:

• Reinforcethe‘pointofdifference’

in their retail offer

• Promotelocalcontainmentof

retail and personal services to

ensure activity centres meet

the weekly shopping and

convenience needs of the

local population

• Provideresidentsandvisitors

with a connection to the local

community hub.

Council will empower Business

Associations to provide capacity

and leadership, which will

strengthen their capability to

empower individual traders within

their respective precincts.

COUNCIL PLAN ALIGNMENT

Strategic Direction 4 correlates with

the following Council Plan Strategies:

DIRECTION 1:

ENGAGING AND GOVERNING

THE CITY

1.1.3 Continue to develop and

encourage community

leadership.

1.2.1 Promote a culture of good

governance.

1.2.6 Provide seamless and

consistent information to

the community.

1.3.2 Review services to ensure

they meet community needs.

DIRECTION 3:

STRENGTHENING OUR DIVERSE

AND INCLUSIVE COMMUNITY

3.1.3 Build on local strengths to

develop active, connected

communities.

DIRECTION 4:

ENHANCING LIVEABILITY

4.1.1 Maintain and build upon the

unique character of the City’s

neighbourhoods.

4.2.4 Facilitate economic

development that strengthens

and supports a diverse and

sustainable community.

SECTION 6

STRATEGIC DIRECTION 4: FLOURISHING ACTIVITY CENTRES

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59ECONOMIC DEVELOPMENT STRATEGY 2012-2016

Port Phillip will continue to be home to a number of industry clusters of state-wide significance.Clusters are geographic

concentrations of inter-connected

companies and institutions in a

particular field. Clusters encompass

an array of linked industries

and other entities important to

competition.

They include, for example,

suppliers of specialised products

and services such as components,

machinery, and their support,

and providers of specialised

infrastructure.

Businesses located in a cluster

generally have a stronger growth

and survival rate than those located

outside it. This is partly because the

physical proximity of the companies

facilitates exchanges of information

and talent among the competing

firms, and encourages businesses

to be more innovative, competitive

and productive.

A cluster-based approach has

become an integral part of economic

development and includes a number

of aspects that contribute to the

strengthening of industry.

For example, a cluster helps:

• Addresscompetitivenessand

innovation

• Businesseswithretentionand

expansion

• Assistexportdevelopment

• Createjobs,andfosterskillsand

training

• Engagedisadvantaged

communities

• ConductR&Dandtechnology

transfer.

Using data derived from the

Australian Business Register,

geographic clustering analysis

was undertaken to map different

industry and business types within

the City of Port Phillip to identify

regions of competitive advantage

that can be further developed.

The key findings were:

• SouthMelbourneisthedominant

business cluster in Port Phillip

• Therearefoursignificant

economic clusters in the area:

Finance & Insurance (St Kilda

Road and South Melbourne),

Transport, Postal & Storage (Port

Melbourne), IT & Telecoms (South

Melbourne) and Arts & Recreation

(St Kilda)

• Therearetwodominantlocations

for creative industries in Port

Phillip: South Melbourne and

St Kilda. South Melbourne is

characterised by Advertising

& Marketing, Film, TV & Radio,

Music & Sound Recording and

Architectural services; the

St Kilda cluster is centred on

Performing Arts, Entertainers and

Photography.

Fishermans Bend will play a

significant role as an industrial

location that will continue to

evolve in response to global

industrial trends. Characterised by

the attraction of a new generation

of intensive, high value adding

industrial activities, Fishermans

Bend will deliver business

development and employment

opportunities for residents and other

key stakeholders in Port Phillip.

SECTION 6

RATIONALE

As per section 5, the Port Phillip

economic landscape is characterised

by several significant industry clusters

most notably the professional services

and property cluster centred on St Kilda

Road and the manufacturing, trade

and industry cluster in Port Melbourne/

South Melbourne. Port Phillip

also has the greatest proportion of

creative workers within Victoria,

which is evidenced by the high

proportion of creative industries

within the municipality. Due to the

significance of the creative sector

in Port Phillip, Strategic Direction 6

(refer page 62) has been developed

to cultivate this industry.

In addition, Port Phillip enjoys a

privileged position surrounded

by nationally prominent economic

clusters in the neighbouring

Melbourne CBD and Port of

Melbourne (refer section 5).

By leveraging from this existing

base, Council can actively promote

the further development of existing

business clusters and target the

establishment of new clusters, such

as green technology (refer section 5).

This will include measures to

develop the Fishermans Bend

precinct into a high-amenity

industrial hub for the future. As

services functions become an

increasingly important part

of industrial related activities,

Fishermans Bend will also

attract a new generation of

industrial businesses.

Similarly, as the Melbourne

CBD continues to grow,

there will be an increasing

requirement for industrial

related services for properties,

businesses and residents.

COUNCIL PLAN ALIGNMENT

Strategic Direction 5 correlates with

the following Council Plan Strategies:

DIRECTION 1:

ENGAGING AND GOVERNING

THE CITY

1.1.3 Continue to develop and

encourage community

leadership.

DIRECTION 3:

STRENGTHENING OUR DIVERSE

AND INCLUSIVE COMMUNITY

3.1.3 Build on local strengths to

develop active, connected

communities.

DIRECTION 4:

ENHANCING LIVEABILITY

4.2.4 Facilitate economic development

that strengthens and supports

a diverse and sustainable

community.

STRATEGIC DIRECTION 5: STRONG ECONOMIC CLUSTERS

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61ECONOMIC DEVELOPMENT STRATEGY 2012-2016SECTION 6

STRATEGY 13: INVESTIGATE OPPORTUNITIES TO STRENGTHEN EXISTING ECONOMIC CLUSTERS AND/OR ESTABLISH NEW CLUSTERS IN PORT PHILLIP

ACTION OUTCOMES PARTNER TIMELINE5.13.1 Collaborate with the City of

Melbourne, St Kilda Road Precinct

and Promotions Committee

and Club 3004 to enhance the

competitive positon of St Kilda

Road by:

•Strengtheningtheexisting

professional, property and hotel

business clusters within Port

Phillip

•Promotingtheareaasa

high amenity, well serviced,

commercial hub.

—> Maximises the effectiveness of industry clusters through

the partnership between the City of Port Phillip and the

City of Melbourne

—> Integrates businesses that are, despite their close

proximity, across the two different municipalities

—> Highlights St Kilda Road as an attractive location

for investment

—> Contributes to the retention of existing businesses on

St Kilda Road.

Strategic

Planning Unit,

City of

Melbourne,

Property

Developers

and Owners

Mid 2012

5.13.2 Undertake research to assess

existing clusters and identify new

cluster opportunities. The research

should include a:

•Labourforceanalysisand

examination of barriers to

employment that may prevent

the successful development or

establishment of industry clusters

•Reviewofothersuccessfulcluster-

building initiatives nationally

and from the Melbourne region

to understand how Council can

facilitate the development of

new clusters e.g. Dandenong

bridal cluster, Hume-Whittlesea

food cluster.

—> Facilitates the strengthening existing, organically-

formed clusters within Port Phillip

—> Supports the development of new clusters in

Port Phillip, further solidifying the collaboration and

cross-fertilisation of businesses within specific industries

—> Enhances the local economy through shared resources,

greater investment, improved efficiency, export

growth and the identification of synergies to overcome

common barriers.

Austrade,

AusIndustry,

Local Business

Mid 2013

5.13.3 Based on the results of action

5.13.2, develop an action plan to

strengthen existing clusters within

Port Phillip, focusing on providing

support activities in areas such as:

•Knowledgeandtechnology

transfer through networking

•Establishingforumsfor

information exchange

•Creatingnew,highvaluejobs.

—> Strengthens existing industry clusters in Port Phillip,

which supports competition, the cross-fertilisation

of knowledge and technology, and enhances local

comparative advantage

—> Builds a culture of co-operation and collaboration

between firms.

Local Business Mid 2014

STRATEGY 14: REPOSITION FISHERMANS BEND AS A CORE INDUSTRIAL HUB AND PROMOTE THE AREA AS A HIGH AMENITY, WELL SERVICED BUSINESS ENVIRONMENT

ACTION OUTCOMES PARTNER TIMELINE5.14.1 Undertake primary research on

Fishermans Bend to:

•Collectandanalysekeydataand

information on businesses to

support economic development

and planning initiatives using

Census of Land Use and

Employment

•Explorethesignificanceof

Fishermans Bend to the state and

regional economy, and advocate

on behalf of Fishermans Bend

with other levels of government.

—> Develops the necessary business intelligence to support

Council’s strategic planning and economic development

initiatives in Fishermans Bend

—> Assists Council in understanding the changes to

Fishermans Bend, such as movement of businesses

into and out of the area, the factors influencing these

relocations and the characteristics of the facilities

occupied by businesses.

City of

Melbourne,

Strategic

Planning Unit,

Local Business

Mid 2011

5.14.2 Establish a dedicated business

forum for Fishermans Bend

Industrial Precinct by:

•Focusingonnetworkingbetween

high-tech businesses with

common interest in operating in

Fishermans Bend

•Provideinputintopromotion

and marketing of precinct,

advocacy on strategic land

use, transport, industry and

business development

•Organisebriefingsessions

and presentations specifically

targeting industrial issues of

relevance to members.

—> Promotes opportunities for networking between

businesses to encourage collaboration and obtain

business input on strategic issues shaping the future

development of Fishermans Bend

—> Fosters relationships between local businesses and

between the business sector and Council to promote the

cross fertilisation of ideas on a range of local issues.

City of

Melbourne,

Department

of Innovation,

Industry and

Regional

Development,

Strategic

Planning Unit,

Local Business

Mid 2012

5.14.3 Actively promote Fishermans

Bend to a range of stakeholders

using a variety of communication

strategies and media formats.

—> Attracts new business to Fishermans Bend whose

activities and profile are consistent with the vision of

the Fishermans Bend Planning and Economic

Development Strategy.

City of

Melbourne,

Local Business

Ongoing

5.14.4 Establish partnerships with

external organisations offering

expertise in industry training

relevant to businesses in

Fishermans Bend and the

City of Port Phillip

—> Promotes skills development through ensuring the

local provision of training programs specifically

targeting the needs of industry in Fishermans Bend and

the City of Port Phillip.

Business

Skills Victoria,

TAFEs,

Training

Providers,

Local Business

Mid 2012

5.14.5 Facilitate the development

of an environmental

technology industry sector in

Fishermans Bend.

—>EstablishesFishermansBendasthe‘premier’

environmental industry business cluster in Victoria

—> Provides greater opportunity for employment and

business development within the environmental industry

—> Establishes Fishermans Bend as an attractive location for

investment in the environmental technology industry.

Local Business,

Department

of Innovation,

Industry and

Regional

Development,

Green Building

Council of

Australia, City

of Melbourne,

Sustainability

Department

End 2013

Page 33: Port Phillip Economic Development Strategy

63ECONOMIC DEVELOPMENT STRATEGY 2012-2016SECTION 6

The City of Port Phillip will be renowned within Victoria and nationally as the ‘creative city’respected for its high proportion of

creative businesses and workers,

creative events and leading arts and

cultural institutions.

A detailed clustering analysis of

creative industries in Port Phillip

identified the geographic dispersion

of creative industry categories

across different suburbs and

highlighted the distribution of the

ten most abundant creative business

types in the municipality.

The key findings were as follows:

• Threemajorcreativeclustersexist

in Port Phillip:

—> Music and Performing Arts

cluster in St Kilda

—> Advertising and Marketing

cluster in South Melbourne

—> Writing, Publishing and

Print Media cluster, also in

South Melbourne.

• Othersignificantsmallerclusters

in South Melbourne and St Kilda

include:

—> Film, Television and Radio

in St Kilda

—> Architecture, Design and

Visual Arts in South Melbourne

—> Music and Sound Recording in

South Melbourne

—> Software Development and

Interactive Content in

South Melbourne

—> Performing Arts Operation

in St Kilda

—> Music and Entertainers

in St Kilda

—> Architectural Services in

South Melbourne

—> Photography services

in St Kilda.

• Intermsoftheproportionof

creative jobs compared to total

jobs within Port Phillip suburbs,

the greatest representation can

be found in:

—> St Kilda West (21.2 per cent)

—> Elwood (20.5 per cent)

—> Ripponlea (19.1 per cent)

—> St Kilda (17.1 per cent).

STRATEGIC DIRECTION 6: THE CREATIVE CITY

Page 34: Port Phillip Economic Development Strategy

65ECONOMIC DEVELOPMENT STRATEGY 2012-2016SECTION 6

The City of Port Phillip operates

and/or is involved with a number of

organisations, festivals, events and

attractions across the municipality.

This support and collaboration

contributes to the cultural

development and vibrancy of

Port Phillip’s creative sector.

The City of Port Phillip contributes

to the local economy by:

• Operatingandproducingthe

St Kilda Festival, which is one

of Australia’s best known and

Melbourne’s most loved events.

The festival attracts crowds of

more than 300,000 people each

year and injects in excess of $15

million into the local economy

• Presentingandproducingthe

St Kilda Film Festival (celebrating

its 30th year in 2013), which

screens Australian short films

in all genres including drama,

comedy, documentary, animation

and digital media

Celebrating the spectacular

triumphs of our local film industry

with a cavalcade of pictures, the

festival has gained worldwide

recognition for featuring the

cream of the crop of Australian

short films, giving local filmmakers

the opportunity to have their work

screened on a grand scale

• OperatingTheGallery,located

at the St Kilda Town Hall, which

presents exhibitions that

encourage an appreciation for

arts and culture, and are of

particular relevance to the area

and its community

• LeasingtheGasworksArtsPark

(owned by the City of Port Phillip)

to Gasworks Arts Inc. This

community-based, non-for-profit

organisation presents an annual

program of festivals, events,

exhibitions and performances

• SubsidisingtheLindenCentre

for Contemporary Arts, which

is a unique, not-for-profit

contemporary art gallery housed

in a significant historical building,

and devoted to the creation and

presentation of contemporary art.

RATIONALE

As per section 5, the City of Port

Phillip can justifiably be labelled

asVictoria’s'creativecity’given

that it has the highest proportion of

creative workers (15 per cent of total

employees) of any municipality in

the state and is home to a number of

significant creative clusters.

Council should leverage from these

existing strengths to understand

what it is that attracts creative

businesses to Port Phillip in the first

place and what can be done to attract

similar businesses in the future and

encourage existing ones to expand.

Council may also need to address

the issue of rental pressure to ensure

that creative businesses and workers

are not priced out of the area. Finally,

Council can contribute to creative

and cultural diversity by working

with local businesses to organise

events and festivals.

COUNCIL PLAN ALIGNMENT

Strategic Direction 6 correlates with

the following Council Plan Strategies:

DIRECTION 3:

STRENGTHENING OUR DIVERSE

AND INCLUSIVE COMMUNITY

3.1.3 Build on local strengths to

develop active, connected

communities.

3.2.1 Build an active and

creative community.

DIRECTION 4:

ENHANCING LIVEABILITY

4.2.4 Facilitate economic

development that strengthens

and supports a diverse and

sustainable community.

Page 35: Port Phillip Economic Development Strategy

67ECONOMIC DEVELOPMENT STRATEGY 2012-2016SECTION 6

STRATEGY 15: STRENGTHEN PORT PHILLIP’S POSITION AS THE ‘CREATIVE CITY’ACTION OUTCOMES PARTNER TIMELINE6.15.1 Undertake an economic benefit

analysis to understand the

value of the creative sector to

Port Phillip’s economy and

identify opportunities for future

business development. The study

should include:

•Quantificationofcreativejobs,

businesses and clusters

•Identificationofcurrentand

projected trends

•Consultationwithcreative

business owners

•SWOTanalysis

•Identificationofinvestment

attraction strategies.

—> Strengthens Council’s understanding of why the creative

cluster has formed and what benefit the creative cluster

brings to the local community

—> Identifies strategies and actions to implement, which

will further solidify Port Phillip’s status as Victoria’s

‘creativecity’.

Local business,

State & Federal

agencies

Mid 2012

6.15.2 Based on the results of 6.15.1,

establish 2-3 creative clusters

(e.g. film production in South

Melbourne) to:

•Increasetheproductivityofthe

companies in the cluster

•Driveinnovationinthefield

•Stimulatenewbusinessesinthe

creative industry.

—> Enhances the local economy through shared resources,

greater investment, improved efficiency, export

growth and the identification of synergies to overcome

common barriers

—> Fosters both competition and collaboration

between businesses.

Local business End 2012

6.15.3 Produce a creative prospectus

focusing on the newly-formed 2-3

key creative clusters.

—> Supports further growth of creative businesses in the

City of Port Phillip

—> Promotes Port Phillip as an attractive investment

location for businesses in the creative industry

—>SolidifiesPortPhillip’sreputationasthe‘creativecity’.

Local business Mid 2013

STRATEGY 16: SUPPORT EVENTS WHICH CELEBRATE CREATIVITY AND SUSTAINABILITYACTION OUTCOMES PARTNER TIMELINE6.16.1 Work with Business Associations

in the non-levy neighbourhood

activity ventres of Albert Park and

Elwood to support community

festivals to provide creative,

community-based activities

that stimulate business growth

and development.

—> Builds an active and creative community

—> Develops and strengthens the reputation of Port Phillip’s

creative economy

—> Connects local residents and visitors to Port Phillip with

businesses in the creative industry

—> Creates a sense of place and provide a showcase for

local creativity.

Business

Associations,

local

community,

Comms and

Engagement

Unit

Ongoing

Page 36: Port Phillip Economic Development Strategy

69ECONOMIC DEVELOPMENT STRATEGY 2012-2016SECTION 7 69

Monitoring and evaluation of this plan will continually test its effectiveness. It will also provide updated intelligence and data which the Council uses to guide, promote and reinforce the sustainability and growth of the local economy in the City of Port Phillip.

MoNitoriNG & EVAlUAtioN

The success of this Economic

Development Strategy can only

be determined by measuring

its performance over time.

It is recommended that the

implementation of the strategy

is regularly monitored by the

City of Port Phillip’s Economic

Development Unit.

The team will conduct regular

reviews on the success of the

strategy and the status of actions

by assessing outcomes against

key economic indicators, historic

data, and other quantitative and

qualitative measures.

This includes measuring:

• Thelevelofengagementwith

local businesses and their

representatives

• IndustrygrowthandGross

Regional Product

• Changesinthenumberof

business establishments in

the municipality

• Changesinthelevelof

employment

• Theretention/turnoverof

businesses in Activity Centres

• Thelevelofsatisfactionand

achievements within the business

associations

• Thelevelsofretentionoflarge

existing businesses in the

municipality

• Increasesinthelevelofvisitation

and visitation expenditure in

the municipality

• ParticipationinthebiennialCity

of Port Phillip Business Excellence

Awards

• Attendancelevelsandsatisfaction

of Port Phillip events, networking

sessions and workshops.

These key economic indicators will

be measured through:

• InformedDecisions,which

contains key economic and

community specific data to which

City of Port Phillip has subscribed

• Surveydata,suchas‘Business

Confidence’and‘VisitorProfile

and Satisfaction’

• CensusofLandUseand

Employment data

• Changesinthe‘IndexofRelative

Socio-Economic Disadvantage’

for Port Phillip, where the higher

the index, the less disadvantaged

that area is compared with other

municipalities in Victoria.

To ensure the Economic

Development Strategy remains

relevant to the current economic

climate, the Council will review

the economic data underpinning

the strategy in 2012 based on the

information available from the

2011 Census. It is important for

Council to understand that the

structure of the local economic

landscape is fundamental to shaping

economic development within the

municipality. In light of this, it may

be necessary to update some of the

strategies and actions based on the

new data.

The Council will also continue to

consult with local business people

to determine their issues and

priorities so that the City of Port

Phillip may continue to support

and assist them through proactive

economic development.

Page 37: Port Phillip Economic Development Strategy

CONTACT INFORMATION:To download an electronic copy of

this Economic Development Strategy

please visit our website at

www.portphillipbusiness.com.au or

for more information, suggestions or

assistance, please telephone ASSIST

on +61 3 9209 6777.

This document is printed on Australian made, 100% recycled paper.

Designed and printed locally in Port Melbourne by Stokes Street Studio and

Kosdown Printing – Winner 2008 CitiPower Port Phillip Business Excellence

Environmental Sustainability Award.