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Kingscote Airport Business Case - Kangaroo Island Council - SA ...

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<strong>Kangaroo</strong> <strong>Island</strong> <strong>Airport</strong> Upgrade <strong>Business</strong> <strong>Case</strong><br />

<strong>Island</strong> economy<br />

It is estimated that there were approximately 2,400 jobs (around 2,330 full time<br />

equivalent jobs) on <strong>Kangaroo</strong> <strong>Island</strong> in 2011/12. The top five contributors to total jobs<br />

were:<br />

• Agriculture, forestry and fishing (26 per cent);<br />

• Accommodation and food services (12 per cent);<br />

• Retail trade (11 per cent);<br />

• Health care and social assistance (9 per cent);<br />

and<br />

• Education and training (6 per cent). 3<br />

Gross Regional Product (GRP) on <strong>Kangaroo</strong> <strong>Island</strong> in 2011/12 was estimated to be<br />

$217 million. The top five direct contributors to GRP were:<br />

• Agriculture, forestry and fishing (18 per cent);<br />

• Accommodation and food services (9 per cent);<br />

• Transport postal and warehousing (8 per cent);<br />

• Health care and social assistance (6 per cent);<br />

and<br />

• Public administration and safety (6 per cent). 4<br />

<strong>Kangaroo</strong> <strong>Island</strong> Abolone farm – the largest Abalone<br />

farm in the Southern Hemisphere<br />

<strong>Kangaroo</strong> beach lodges can only be accessed by<br />

private road through De Mole River Farm, an 8000-<br />

acre property with 7 kilometres of stunning sea<br />

frontage.<br />

Analysis of the main contributors to employment and GRP on <strong>Kangaroo</strong> <strong>Island</strong> reveals<br />

that the <strong>Island</strong> is dependent of two main economic sectors: tourism and agriculture. It<br />

has been estimated that together, tourism and agriculture generate over 52% of<br />

<strong>Kangaroo</strong> <strong>Island</strong>’s GRP on a direct and indirect basis. 5<br />

What is more, tourism and agriculture will continue to be the main economic<br />

contributors on <strong>Kangaroo</strong> <strong>Island</strong> into the future. In June 2011, the South Australian<br />

Economic Development Board set goals within a five year plan to double farm-gate<br />

income and tourism numbers on the <strong>Island</strong> by 2021. To achieve this, the <strong>SA</strong>EDB<br />

established the <strong>Kangaroo</strong> <strong>Island</strong> Futures Authority (KIFA) to coordinate the South<br />

Australian Government’s response to the <strong>Island</strong> with a view to maximising the outputs<br />

from the programs that the government might initiate to reach these targets.<br />

Tourism<br />

<strong>Kangaroo</strong> <strong>Island</strong> has become a popular tourism destination with 21 national and<br />

conservation parks covering more than 30% of the <strong>Island</strong>, accessible wildlife, and<br />

dramatic scenery ranging from the Little Sahara to huge sculptured granite boulders,<br />

which are truly 'Remarkable Rocks'. The <strong>Island</strong> is one of Australia’s top four tourism<br />

3 Econsearch, 2013, Impact of agriculture and tourism industries on the <strong>Kangaroo</strong> <strong>Island</strong> economy.<br />

4 ibid<br />

5 Public Briefing Paper, 2010, <strong>Kangaroo</strong> <strong>Island</strong> Watergap Project, p1. Accessed at<br />

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