Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1694878583165.pdf (Australia)
DARWIN MAJOR BUSINESS GROUP Hon Warren Entsch MP Chair Joint Standing Committee on Northern Australia Parliament House CANBERRA NT 2600 SUBMISSION ON OPPORTUNITIES FOR STIMULATING TOURISM The Darwin Major Business Group is made up of Darwin based larger businesses which represent some 15% of Northern Territory Gross State Product.
All member businesses are long term investors in the Northern Australia economy, larger employers and their futures are tied to the Darwin, Top End and Northern Australia economies.

As a group of major businesses we have been giving collective thought to stimulation of our local economy and wish to focus the attention of the Joint Committee on two achievable policies and one easily achievable project.

These are outlined below.

1.


Development of Darwin into a Cruise Ship Home Port Darwin has traditionally received around 50 cruise ship visits per year with the numbers oscillating between 40 and 60.

These cruise ship visits are a mixture of the large international cruise ships and Australian based smaller expedition type cruise ships.
The smaller expedition type cruise ships (often less than 100 passengers) visit parts of Northern Australia which are inaccessible to the large international cruise ships.

The large international cruise ships with international crews operate in Australian waters through an exemption under the Coastal Trading Act 2012.

The exemption applies to cruise ships which are over 5,000 tonnes, carry more than 100 passengers and can achieve in excess of 15 knots speed.
Dramatic year on year growth has been experienced in large ship cruising in recent years because of the exemption and market conditions.

However, the smaller expedition type international cruise vessels are not covered by the exemption and the only expedition type cruise vessels calling at Darwin are Australian flagged.
Darwin, as the strategically located city in the middle of the Northern Australian coast, would make an ideal Home Port if the cruise ship industry could be encouraged to base themselves there for the whole or part of the year.

Being a regional city remote from the rest of Australia it is obvious that the most likely cruise ships to base themselves in Darwin are the expedition type vessels.
In terms of existing port facilities the international expedition cruise ships are the type of vessel which could easily home port in Darwin.

Additionally, Northern Australia is a natural market for these ships.

One tourism oriented policy change which would assist Darwin becoming a Home Port for cruise ships would be to allow the smaller expedition type international cruise vessels the same privileges as the large cruise vessels as long as they operated in Northern Australian waters.
There is precedent in the transport portfolio in the Bilateral Air Service Agreement system for more relaxed regulation in regional Australia.

In brief, the capacity for foreign carriers to operate to Inquiry into Opportunities and Methods for Stimulating the Tourism Industry in Northern AustraliaSubmission 11 Australia’s four largest airports is strictly regulated but there is effectively no restriction on the capacity of foreign airlines to operate to the smaller airports.
This relatively small policy change would facilitate an increase Northern Australian tourism and generate significant benefits for both the Darwin and wider Northern Australian economies.

In recognition that there needs to be a size limit on the international vessels a minimum size of 500 tonnes is proposed.
Recommendation: the current privileges enjoyed by large cruise ships under the Coastal Trading Act be extended to any international cruise ship of 500 gross registered tonnes (GRT) or more operating in Northern Australian waters.

2.

Passenger Movement Charge (Departure Tax) Australia’s departure tax will increase from a flat $55 to $60 on 1 July 2017.

Much has been written by the travel and aviation sectors on this tax and endless submissions have been made to successive Federal Governments.
However, a few dot points tell a powerful story:   introduced in the late 1980’s as a $10 Departure Tax to cover the cost of border agencies; from 1 July will be $60 which generates revenue which covers the cost of the border agencies more than four times;  at a flat rate it is the second highest in the developed world behind the United Kingdom long haul Air Passenger Duty rate.
Australia’s departure tax can be 30% - 40% of the cost of short haul international airfares (eg Darwin – Dili, Darwin – Bali, Sydney -Auckland); and it is a regressive and poorly designed tax in that it hits passengers on low cost carriers the hardest.

 In short it is a horrible tax for Australia in general and Northern Australia in particular.

The tax should be done away with or at least retreat to meeting the cost of the border agencies (around $15).
If that is unachievable because of budget repair necessity then at least the rate should be graduated to introduce a measure of equity.

One option to make Northern Australia more competitive for international tourism is not to apply the departure tax for passengers exiting Australia from the Northern Australian gateway airports.

This is a small percentage of Australia’s departing passengers and would not significantly impact total revenue.
Recommendation: the Passenger Movement Charge not be levied on passengers departing from Northern Australian gateway airports.

3.

Redevelopment of Old Darwin Navy Tank Farm Darwin’s old Navy tank farm was progressively constructed from the 1920’s and sustained heavy bomb damage during WW2.

The tanks are ageing and the 4 hectare tank farm site is heavily contaminated after almost 100 years use.
The navy tank farm site is 500 metres from Parliament House, 130 metres from the Darwin Convention Centre, 120 metres from the public wave pool, 100 metres from high rise apartments and 80 metres from a hotel.

Page 2 of 11 Inquiry into Opportunities and Methods for Stimulating the Tourism Industry in Northern AustraliaSubmission 11 It is no longer required by the Royal Australian Navy as refuelling operations at the nearby Fort Hill Wharf have been compromised for some time by residential development.
The tanks also were almost beyond economic repair.

The site of the tank farm and close proximity to other elements of the Darwin CBD and waterfront development is illustrated below.

It is identified as a major development site to incorporate new tourism product including a possible water park, amphitheatre and major expansion of the Darwin City Waterfront to connect with future Francis Bay wharf developments.
The Department of Defence has been talking to the Northern Territory Government about abandoning the site and leaving it to the Northern Territory Government to demolish the tanks and rehabilitate the 4 hectare site.

This is unconscionable!

Nowhere else in Australia would you have a long standing heavily contaminated site within half a kilometre of Parliament House that the Commonwealth is contemplating walking away from.
Given the location next to the CBD and Darwin city waterfront development, the need for this land for the further development of the waterfront precinct, the more than $200M the Northern Territory Government has spent on community and Convention Centre facilities in the waterfront, the place of Page 3 of 11 Inquiry into Opportunities and Methods for Stimulating the Tourism Industry in Northern AustraliaSubmission 11 Darwin in the historic defence of Australia and the place of Darwin in the defence of Australia today, the Department of Defence should rehabilitate the site without delay and hand it to the Northern Territory Government at no cost.
This is the only sensible course of action for Defence.

Recommendation: Department of Defence rehabilitate the old Darwin Navy tank farm site without delay and hand it to the Northern Territory Government at no cost.

The Darwin Major Business Group will be happy to speak to the recommendations at the Joint Committee hearings.
Yours sincerely IAN KEW Chairman Darwin Major Business Group Members Name Company Name Company Steve Margetic Margetic and Sitzler James Paspaley Paspaley Group Janet Hamilton Convention Centre David Christian SkyCity Darwin Michael Sitzler Sitzler Constructions Mardi Askine GPT Casuarina Michael Bridge Corestaff Shane Dignan Halikos Group Natasha Jensen Genessee & Wyoming Mick Burns Mick Burns Group Foxy Robinson Trepang Services Michael Hannon Hannon Group Daniel Bowden Air North Michael Hughes Landbridge Group Michael Bridge Corestaff James Paspaley Paspaley Group Ian Kew Darwin Intl.
Airport Page 4 of 11 Inquiry into Opportunities and Methods for Stimulating the Tourism Industry in Northern AustraliaSubmission 11 Page 5 of 11 Inquiry into Opportunities and Methods for Stimulating the Tourism Industry in Northern AustraliaSubmission 11 Page 6 of 11 Inquiry into Opportunities and Methods for Stimulating the Tourism Industry in Northern AustraliaSubmission 11 Page 7 of 11 Inquiry into Opportunities and Methods for Stimulating the Tourism Industry in Northern AustraliaSubmission 11 Page 8 of 11 Inquiry into Opportunities and Methods for Stimulating the Tourism Industry in Northern AustraliaSubmission 11 Page 9 of 11 Inquiry into Opportunities and Methods for Stimulating the Tourism Industry in Northern AustraliaSubmission 11 Page 10 of 11 Inquiry into Opportunities and Methods for Stimulating the Tourism Industry in Northern AustraliaSubmission 11 Page 11 of 11 Inquiry into Opportunities and Methods for Stimulating the Tourism Industry in Northern AustraliaSubmission 11