Kingscote Airport Business Case Appendices - Kangaroo Island ...

Kangaroo Island Futures Authority Draft Economic Impact of Agriculture and Tourism1. INTRODUCTIONThe economy of Kangaroo Island is largely based on agriculture, tourism and, to a lesserextent, fishing. These key economic drivers are supported by a range of service industries,particularly in the areas of services to agriculture, accommodation and business services. Thefour main towns on the Island, Kingscote, Penneshaw, American River and Parndana, provideretail, commercial and community services for an estimated population of 4,675 (ABS 2012a).Regional population has grown slowly since the 1970s and continues to grow but at a rate ofless than 1 per cent per year. The labour force participation rate on Kangaroo Island, at around70 per cent (derived from ABS 2012b and DEEWR 2012), is well above the South Australian(SA) and rural SA averages and among the highest in the state. The unemployment rate for theSeptember Quarter 2012 was 3.8 per cent (DEEWR 2012), well below the state average (5.4per cent).The Island’s economic base is expanding with the potential for increased tourism beingrecognised and with new industries being targeted, including horticulture, aquaculture andsustainable development (e.g. renewable energy, wind farms).EconSearch was engaged by Kangaroo Island Futures Authority (KIFA) to consider economicimpact modelling and scenario implications for both tourism and agriculture on KangarooIsland. The impact analysis takes account of the implications of economic development forpopulation growth and the related effect on the health, education and other service sectors.The study of the impact of the tourism and agriculture industries on the Kangaroo Islandeconomy involves the development of various scenarios for analysis using the RegionalIndustry Structure and Employment (RISE) economic impact model. The method used toundertake the economic impact analysis is described in Section 2 of this report.Scenarios for tourism and agriculture were developed separately. It was considered importantto justify the scenarios and the targets for growth as ‘realistic’. Section 3 of this report containsa discussion in three parts:1. the objectives of the consultation process (Section 3.1);2. a review of policy, planning and program documents (Section 3.2); and3. growth limiters (Section 3.3).A desk top study of planning and policy documents provided an indication of the level ofalignment with key government and industry priorities, and targeted stakeholder consultationprovided insight into whether the growth targets were seen as realistic by stakeholders. It wasnoted that many of the strategic planning documents considered had themselves been thesubject of comprehensive community engagement. This was important as a measure of thepotential for community support for growth which is seen as an important factor in the successof future plans to meet the targets identified.The remainder of the report is dedicated to the economic impact analysis, including:• a profile of economic activity on Kangaroo Island (Section 4);e c o n s e a r c hPage| 1