Part 1 - Shire of Ashburton

Shire of Ashburton Tourism Strategy
January 2011
More than 55% of all those residents earning an income in Ashburton were receiving $1000 gross or more a week.
The large proportion of high income earners contributed to Ashburton having the highest median income of all
local government authorities in the Pilbara region. The median income was $1058 per week, surpassing
the nearest Pilbara LGA by over $150 per week.
Between 2001 and 2006, household incomes in the upper
echelons ($1200 ‐ $1999 and $2000 per week) increased
dramatically. In particular, the number of households
earning over $2000 a week rose from 104 to 699. Notably
the population has not changed much over the same
period for Ashburton.
This would indicate local Ashburton residents have a
relatively high level of discretionary income. High levels of
leisure travel typically also strongly correlate with high discretionary income levels and so there is potential for
local tourism operators to target “short break” intra‐Shire/Pilbara region holiday and leisure travel. For example,
Onslow tourism operators specifically targeting Paraburdoo and Tom Price residents and inland based tourism
operators encouraging coastal residents to visit.
2.2 General Economic growth
The visitor industry is directly affected by general economic conditions of the Australian economy and a review of
general economic indicators such as growth, interest rates and exchange rates is detailed below.
Economic conditions are generally considered favourable and more specifically regions relying upon mining
resource activities are predicted to fare better than the Australian average. The Reserve Bank of Australia expects
an improvement in economic growth over the next two years as domestic demand increases, business investment
‐ particularly in the resources sector ‐ remains high and home building picks up (source: February 2010 RBA
Statement on Monetary Policy).
In its monetary policy statement, the RBA outlined its central forecast for the economy to grow at around 3.25 per
cent and 3.50 per cent in 2010 and 2011, which would be much stronger than 2009.
In addition to the RBA, most industry economists are tipping a return to Australia's long‐term average economic
growth rate of between 3% and 4% in 2010 – a positive outlook considering the position of other global
economies. The strong economic growth from China is also forecast to continue for another 15 to 20 years which
will benefit the Australian economy, in particular regions and their residents such as the Pilbara. China is
Australia's largest export market and RBA assistant governor of economics Philip Lowe recently stated that “the
continuing urbanisation in China and its subsequent investment in infrastructure will be a boon for the Australian
economy”.
The downside of a recovering economy is rising interest rates. After slashing the cash rate by 4.25% to 3% in late
2008 and early 2009, the RBA has acted quickly to bring rates back towards what it calls a more "normal" setting.
Consecutive 25‐basis point rises in October, November and December have the cash rate sitting at 3.75%. Higher
interest rates translates into less discretionary income for domestic households and therefore less money for
holidays and leisure travel.
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