Economic Development
Strategy
2014–2017
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City of Rockingham Economic Development Strategy 2014 – 2017
Contents
1.
Our Community’s Aspirations for the Future
4
2.
City of Rockingham Strategic Development Framework
6
3.
Executive Summary and Key Recommendations
8
4.
Purpose of this Specific Purpose Strategy
11
5.
Introduction/Background Information
12
6.
6.1
6.2
Situation Exploration
Understanding the Current Situation
Desired Future Situation
Key Elements
6.2.1
Foreshore Redevelopment
6.2.2
Investment Attraction
6.2.3
Small Business Leadership
6.2.4
Tourism and Events
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14
18
19
49
49
49
49
7.Implementation
50
8.References
51
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3
4
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City of Rockingham Economic Development Strategy 2014 – 2017
SPECIFIC PURPOSE STRATEGIES ARE AIMED AT ACHIEVING THE
ASPIRATIONS IN THE CITY OF ROCKINGHAM COMMUNITY PLAN
1.Our Community’s
Aspirations for the Future
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5
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City of Rockingham Economic Development Strategy 2014 – 2017
2.City of Rockingham
Strategic Development
Framework
The Specific Purpose Strategies are key to the achievement of the aspirations in the City of
Rockingham Community Plan, and drive the content of the Team Plans, Asset Management
Plan and Infrastructure Projects Plan.
All implementation actions identified in the Specific Purpose Strategies are to be
represented in a Team Plan. Year one of the Team Plan becomes that year’s budget.
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10 YEAR PLANS
CITY OF ROCKINGHAM
COMMUNITY PLAN
INFRASTRUCTURE PROJECTS PLAN
CITY REVENUE STRATEGY
Planning for new Council Buildings
and Recreational Facilities
10 year Planning for income from
Council Rates, loans, Investments,
Reserve Funds, Fees & Changes.
ASSET MANAGEMENT PLAN
Planning for Maintenance and Renewal
on Buildings, Roads, Pathways,
Drainage, Parks and Reserves
CORPORATE BUSINESS PLAN
Overall 10 year Financial Plan for the
City. Consolidating the Revenue
Strategy, Infrastructure Projects
Plan, Asset Management Plan
and Team Plans
SPECIFIC PURPOSE STRATEGIES
Strategies to deliver on the
community aspirations (i.e. Active
Ageing, Health and Wellbeing,
Local Planning Strategy)
TEAM PLANS
Planning for Operational Costs
associated with implementing the
Specific Purpose Plans and delivering
a service to the community
ANNUAL BUDGET
Annual Expenditure Plan
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City of Rockingham Economic Development Strategy 2014 – 2017
3. Executive Summary and
Key Recommendations
This strategy proposes a different pathway to the more traditional approach taken by
Local Governments when delivering economic development programs and initiatives.
Historically these programs and initiatives can duplicate the good
efforts of regional organisations, local business associations and
State and Federal Governments.
It is well known and acknowledged that Local Governments
throughout Australia struggle to generate sufficient revenues
to fund their year in year out service delivery obligations and
the maintenance and reinstatement of municipal assets. The
City of Rockingham is no different and indeed has even greater
challenges in providing the new community infrastructure
necessary to serve our rapidly growing population.
It follows that any resources that the City directs towards economic
development initiatives should be targeted at projects that can add
tangible and measureable value to the economic fabric of the local
area and not duplicate the efforts of other agencies.
This strategy proposes activities and initiatives that the City has
expertise and experience in and more importantly, have the
potential to generate more revenue and provide benefits to the
community as a whole.
Redevelopment of the Rockingham Beach foreshore area, the
attraction of a major hotel and a focus upon marketing and
promoting the significant development potential that exists
within the Waterfront Village and City Centre Precincts are the
cornerstones of this strategy.
The further development of productive and sustainable working
relationships with important economic development stakeholder
groups such as the Rockingham Kwinana Chamber of
Commerce, Business Foundations Inc. and Tourism Rockingham
is also discussed.
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THE KEY RECOMMENDATIONS OF THE STRATEGY ARE AS FOLLOWS.
Key Recommendation 1
The City’s major economic development focus and priority
resource allocation be directed towards projects and activities that:
• are unique and attractive to prospective investors
• come under the control, management and influence of the
Local Government
• call within the capabilities and expertise of the City as a
corporation to deliver successfully
• provide increased revenue streams for the City as a corporation
• benefit the community at large
• will facilitate measurable new investment realistically linked
to those projects and activities.
Key Recommendation 2
A detailed design and master planning exercise be undertaken
for the area comprising:
• Churchill and Bell Parks
• The Boardwalk between Churchill Park and Val Street Jetty
• Rockingham Beach Road between Wanliss Street and
Railway Parade
• Railway Parade between Kent Street and Rockingham
Beach Road
• The Esplanade and adjacent reserve between Palm Beach
Jetty and Val Street Jetty.
The Masterplan should deliver the following key outcomes:
• a contemporary design using world best practice civic
and public place design principles and materials that are
complementary to the planning objectives of the Foreshore
Precinct of the Waterfront Village area
• a design that is sympathetic to, and makes maximum use of,
the uniqueness of the north facing sheltered beach, and the
significant shaded areas within the two parks
• a design that is complementary to the functionality and
feasibility of existing and future apartment/hotel/food and
beverage/retail development
• a design that will be conducive to community events and
gatherings
• a design that incorporates latest technology public toilet
systems both portable and fixed
• a design that facilitates better linkage between Bell Park and
the Palm Beach Jetty
• the feasibility of the establishment of an “ocean pool” in the
study area and recommendations on form, scale and location
• streetscapes that facilitate pedestrian activation and alfresco
dining, maximising community interaction and enjoyment
• streetscapes that facilitate effective linkage between
shopfronts and adjacent reserves to complement existing
and future retail, food and beverage and tourism activities
• a reduction in vehicular traffic and the impact of vehicles and
parking on the amenity of the area generally and options for
appropriately relocated parking in the near vicinity
• development of a title/name for the general area under
design consideration that will be used for marketing and
promotional purposes in the future.
The Master planning process should include significant
community engagement and consultation with all relevant
stakeholders including local residents, businesses and community
associations.
The “Business Improvement District” concept should be
promoted with local traders to gauge interest.
After the Masterplan has been completed and adopted by
Council, develop an investment attraction prospectus that
highlights the features and benefits of the precinct and
implement a strategic marketing campaign that raises the media
profile of the area and targets relevant government and semigovernment departments and private developers.
Key Recommendation 3
Develop an investment attraction prospectus that highlights the
features and benefits of the Rockingham City Centre Precinct
and implement a strategic marketing campaign that raises the
media profile of the area and targets relevant government and
semi-government departments and private developers.
Key Recommendation 4
Develop an investment attraction prospectus that highlights the
features and benefits of the Dixon Road Precinct, focussing upon
the commercial opportunities that will flow from the significant
increase in vehicle movements generated by the new freeway
access road, and implement marketing campaign targeting
prospective developers.
Key Recommendation 5
Develop an investment attraction prospectus and undertake a
targeted marketing campaign that highlights the development
potential of the Secret Harbour, Port Kennedy and Waikiki
Foreshore Precincts that will attract tourism, food and beverage,
short stay residential and residential investment.
Ensure that master planning in these foreshore precincts
seamlessly conflates the design, form and function of
public space in the public and private estate, and that City
redevelopment and improvement of foreshore reserves aligns
with adjacent private sector development.
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City of Rockingham Economic Development Strategy 2014 – 2017
Key Recommendation 6
Key Recommendation 9
Review the Learning Cities Strategy to incorporate the objective
of facilitating and encouraging a partnership between Murdoch
University and the Department of Defence, and more specifically,
between the Sir Walter Murdoch School of Public Policy
and International Affairs and HMAS Stirling with a view to
establishing a range of professional Masters Degrees and other
Graduate programs in global strategic studies, international
economics, resource security, political economics and counterterrorism, at the Rockingham Campus.
Continue to grow and improve the New Year’s Eve and Australia
Day Events given their wide community support and acceptance.
Key Recommendation 7
Explore outsourcing opportunities with the Rockingham
Kwinana Chamber of Commerce and Business Foundations Inc.
based upon normal contractual commercial arrangements for
small business support, investment attraction events and other
appropriate economic development projects currently being
undertaken in-house.
Key Recommendation 8
Engage expert tourism/property development industry consultants
to undertake the development of a business case for the
establishment of a major hotel in the Waterfront Village Precinct
based upon the latent demand for business tourism visitation.
Encourage and promote the delivery of community events by
local not-for-profit organisations by way of funding through the
Community Grants Program and the City’s normal club support
and ongoing community capacity building initiatives.
Defer the allocation of resources for a major tourism “Eventscorp”
type of event until such time as the feasibility or otherwise of a
major hotel being located in Rockingham is better understood.
Key Recommendation 10
Review the current agreement between the City and Tourism
Rockingham Inc. with the objective of continuing the fee for
service relationship for the delivery of visitor information services.
Encourage Tourism Rockingham to explore joint revenue raising
activities and the conduct of community and tourism events with
Rockingham Kwinana Chamber of Commerce.
Request that the City amend representation on the Tourism
Rockingham Inc. Board from staff member and Councillor
to Councillor.
Should the business case demonstrate a potentially feasible
project then undertake a targeted investment attraction
campaign to relevant industry stakeholders.
The strategy will be implemented over the next four years.
Andrew Hammond
Chief Executive Officer
January 2014
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4. Purpose of this Specific
Purpose Strategy
The City of Rockingham Economic Development Strategy serves to guide decision making,
resource allocation and program delivery over the next four years.
The key purposes of the strategy are to:
• define the City’s role in local economic development
• attract investment to facilitate major development within the
Waterfront Village and City Centre Precincts
• identify and utilise the City’s key competencies in facilitating
local economic development
• identify the key areas of difference within the City that
can create a comparative advantage over competing Local
Governments also seeking to attract investment funds and
economic development.
• develop sustainable working relationships with key economic
development stakeholders.
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City of Rockingham Economic Development Strategy 2014 – 2017
5. Introduction/Background
Information
In September 2007 the City engaged SGS Economics and Planning Pty Ltd to undertake
the development of an Economic Development Strategy. A working party of elected
members and staff oversaw the project which culminated in the Strategy being adopted in
August 2008. The Strategy recommended the appointment of three new positions plus an
annual operating budget of $550,000 per annum overseen by an independent economic
development unit.
The key focus areas of the strategy were:
• build Organisational Capacity, Regional Leadership
and Collaborative Governance
• grow Existing Business and Attract New Investment
to Rockingham
• workforce Planning, Labour Market Engagement and
Skills Development
• facilitate Urban Development and Strategic Infrastructure
Provision for Economic Prosperity.
The Strategy was given further analysis to comply with the Local
Government Act 1995 and better align with the City’s financial
capacity, and in April 2009 Council adopted the Economic
Development Implementation Plan. The plan provided for four
key focus areas:
•
•
•
•
Regional Leadership
Marketing the City of Rockingham
Major Projects
Regional Opportunities.
In early 2008 an Economic Development Team was established
in the General Management Services Directorate led by the
newly created position of Manager of Economic Development
which replaced the existing Economic Development Officer
role. Overall, the newly created team comprised of three
existing positions and one new administration assistant role.
The appointment of three new staff and establishment of a
$550,000 annual operating budget did not proceed.
The team was charged with the responsibility of general
economic development activities as well as overseeing the City’s
corporate communications.
The last four years has seen significant progress made towards
achieving the objectives of the plan. Key outcomes were:
• the “Where the Coast Comes to Life” project revising the
City’s corporate brand and logos, and the implementation of
a new style guide
• delivery of the very popular Business Leadership Forums to
members of the Rockingham business community
• development of a range of investment attraction media
including promotional video, hotel site prospectus and
general investment attraction prospectus
• establishment of the Rockingham Economic Development
Advisory Committee comprising of eminent and influential
business and civic leaders
• the development and execution of a decentralised social
media strategy, which attracted some of the highest traffic
and community participation in Local Government in
Western Australia.
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The City also remained involved with the Rockingham Kwinana
Chamber of Commerce (RKCC), South Coast Business
Development Office (SCBDO), South West Group and Tourism
Rockingham by way of the Manager of Economic Development
sitting on their respective Boards.
Economic Development functions have taken a lower profile, not
because of the good efforts of the officers involved, but quite
simply because economic development, in its purest context
of employment creation and investment attraction, is normally
outside of a Local Government’s sphere of influence and control.
In 2010 the SCBDO dissolved as a result of ongoing funding and
governance issues. Fremantle based Business Foundations Inc.
subsequently assumed the role of SCBDO within the same City
owned premises. The City enjoys a close working relationship
with Business Foundations but does not have representation on
the Board.
Prevailing global, national and state economic environments
are the principal contributors to employment growth (or
decline), and major investment decisions by both the public
and private sector. It follows that there is little that an
individual Local Government can do to influence the economic
environment. However, the Local Government may be able to
capitalise on prevailing economic conditions by way of utilising
regional comparative advantages and its own organisational
core competencies.
The last four years has seen the Economic Development Team
define its role and legitimacy within the City’s organisational
structure. Corporate communication functions comprise the
majority of activities within the team. These activities include:
•
•
•
•
media liaison (newspaper, radio, television)
centralised quality control of publications and printing
Style Guide management
oversight and management of the City’s Facebook, Twitter
and YouTube presence
• centralised quality control of the City’s website.
This strategy will endeavour to take a realistic and focussed
approach as to what a Local Government can reasonably do to
capitalise upon prevailing economic conditions using the principles
of comparative advantage and organisational core competency.
The City’s corporate communication functions will not form part
of this strategy.
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City of Rockingham Economic Development Strategy 2014 – 2017
6.Situation Exploration
6.1 UNDERSTANDING THE CURRENT SITUATION
Population Growth
The City of Rockingham has experienced considerable and
sustained growth for some time, with the population expanding
from 32,845 to 104,105 in the 25 years between 1986 and 2011.
This represents an annual growth rate of approximately 2850
persons per year.
This growth has strengthened more recently with the population
growing by an average of 5% per annum over the last two years.
Projections from the Western Australian Planning Commission
(WAPC) forecast Rockingham’s population to increase to 171,300,
or a further 57.1% over the 15 years to 2026. The Estimated
Resident Population of the City was 120,859 as of 30 June 2013.
Estimated Resident Population (ERP)
City of Rockingham
+140,000
+120,000
+100,000
Number of people
+80,000
+60,000
+40,000
+20,000
20
13
20
12
20
11
20
10
20
09
20
08
20
07
20
06
20
05
20
04
0
20
03
14
Year
There is approximately 1600 hectares of undeveloped Urban
and Urban Deferred land in Rockingham (Western Australian
Planning Commission (WAPC) 2011, Urban Growth Monitor),
with the capacity to accommodate a further 19,000 dwellings
and an additional population close to 50,000.
The State Government is currently investigating options for
further urban growth in the City, primarily in the Baldivis areas
which, along with anticipated redevelopment in existing areas, is
likely to see the City’s population grow to well beyond 200,000
in the long term.
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Value Of Building Approvals
The local industry is heavily investing in the area. The value of building approvals in the City of Rockingham was $755 million in the
2013-2014 financial year. This represents a 73% increase in non-residential building applications. Rockingham is well positioned
to locate critical mass of jobs close to the Western Trade Coast, which includes the Rockingham Industrial Area, Kwinana Industrial
Area, Australian Maritime Complex and Lattitude 32 Industrial Zone.
Employment statistics for the City of Rockingham (as of 2011):
• there were 32,290 jobs in the City of Rockingham (growing
at 3.96% per annum), with Retail Trade the largest employer,
generating 6121 local jobs
• construction industry had the largest number of total
registered businesses comprising 28.8% of all businesses,
compared to 17% in WA
• the job to resident ratio for the City of Rockingham was
0.57, meaning there were fewer jobs than employed
residents. Education and Training has the highest ratio (0.92),
while the lowest ratio was found in Mining (0.05)
• 36.9% of the City of Rockingham’s working residents were
employed locally and this proportion has decreased since
2006 - this indicates the propensity of residents to seek
employment outside the City of Rockingham
• of the 24,222 people who work in the City of Rockingham,
17,805 or 73.5% also live in the area
• 23,956 or 49.8% of the City of Rockingham’s employed
residents travel outside of the area to work
• the total of tourism and hospitality sales in the City of
Rockingham was $158.6 million, the total value added was
$86 million
• 1759 people were employed in the tourism and hospitality
sector in the City of Rockingham, of this 33.5% worked full
time and 60.6% worked part time.
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City of Rockingham Economic Development Strategy 2014 – 2017
RECENT MAJOR DEVELOPMENT APPROVALS
In 2012-2014, Planning Approvals were granted to eight major developments with a
combined total of $292.4 million.
City Centre Activity Centre
2012Seven Storey Short Stay Accommodation (Quest) (48)
Apartments approved (Flinders Ln) - $8 million
- under construction
2013 Four Storey Mixed Use Development (69) Apartments
(Chalgrove Ave) - $14 million - under construction
2013 Six Storey Multiple Unit Development (Capri) (76)
Apartments - $12.4 million - construction starts Oct 2014
2014 Four Storey Mixed Use Development (54) Hotel Rooms
(24) Apartments (Market St) - $10 million
2014 Seven Storey Mixed Use Development (99) Apartments
(Council Ave) - $16 million
The ultimate success of this economic development strategy
should be measured by a demonstrated net benefit to the
City’s financial position or “bottom line”, and the attraction,
development or improvement of facilities and services that
will benefit the community at large, not just the immediate
stakeholders of the investment outcome.
This will require the identification of unique, attractive and
realisable opportunities that will facilitate investment, attract new
services and facilities and create new revenue streams for the City.
Economic Development and Local Government
Warnbro Activity Centre
2013 Expansion of the Centro Warnbro District Shopping Centre - $21 million
Over the past five years the City has undertaken intensive
analysis of its financial situation and developed an integrated
strategic planning framework, underpinned by a comprehensive
and robust long term financial plan.
Baldivis Activity Centre
2013Major Additions and Alterations to Baldivis Shopping Centre Approved - $90 million
2013Freeway Service Centres (Kwinana Freeway – Baldivis)
- $40 million
2013 Baldivis Secondary College - $36 million
Councillors and senior staff can now confidently develop and
execute strategy and make major strategic decisions with accurate
and reliable financial data. This was not the case in 2008/2009,
and decisions as to the City’s role in economic development were
based more upon a legitimate need for action in the absence of
any long term financial planning information.
Other
2012Four Storey Mixed Use Development (Waikiki Hotel site) 38 Multiple Dwellings - $10.5 million 1st stage under way
2013 New Wave Energy Project (SW of Garden Island)
- $24.5 million
2014 Singleton Village Neighbourhood Centre Stage 1
- $10 million
It is now timely indeed to set the direction on the City’s role in
economic development cognisant of the very significant financial
pressures facing the City as a result of high population
growth, demand for services, and a large asset management/
infrastructure backlog.
Rockingham is the largest urban centre in the sub-region and
remains the focal point for investment in commercial sector
construction projects within the City Centre, Warnbro Activity
Centre and Baldivis Activity Centre. In the past 10 years,
commercial and industrial development valued at approximately
$500 million has been undertaken in the City of Rockingham.
In broader economic terms, developments like Baldivis bring
people to the City. However, they also create a need for new
community infrastructure, municipal services and employment.
There is an economic benefit particularly to the City as a
corporation and financial entity, to infrastructure provision,
maintenance and reinstatement.
Such challenges are experienced by all high-growth outer
metropolitan Local Governments, but perhaps exacerbated,
in the City’s circumstances, as a result of a relatively small and
mostly undeveloped industrial estate, notwithstanding that this
is offset in the short to medium term by net revenues from the
Millar Road Landfill facility.
It is therefore essential that any expenditure on economic
development is targeted and the benefits are measurable and
effective.In setting the direction and philosophy for the City’s
involvement in economic development, it is helpful to draw
upon recent academic research that has been undertaken in
Australia on the subject.
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Some key themes emerge which are useful and instructive:
• Local Governments tend to make satisficing decisions on
economic development that is, doing the minimum amount
possible to achieve an objective that is not fully understood
• Local Government economic development policies are
unlikely to be based upon sound cost benefit analysis
• Local Government economic development policies may
become institutionalised and emphasise policy convenience
and political benefit, as opposed to measurable benefit
• Economic Development policies are often politically
expedient and assume a symbolic rather than a practical or
achievable value, in other words, being seen to be doing
something as opposed to making a real difference
• contested understandings of localism and regionalism, and
a focus upon regional economic development, requires
a collaboration of neighbouring Local Governments and
higher tiers of government to deliver effective economic
development outcomes. The City’s membership of the South
West Group supports this contention.
This research doesn’t necessarily mean that Local Governments
that invest in economic development waste money. It does,
however, point to economic development in this context being
quite an amorphous activity, the performance of which is difficult to
objectively measure.
The City’s Community Grants Program has an “Economic
Development” component and on average over the last three
years has funded $81,000 per annum. Some typical examples of
funding include:
•
•
•
•
•
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Musselfest
Rockingham Community Fair
National Soccer Championships
Business Incubation
Asian Oceania Water-ski and Barefoot Championships
Autumn Harvest.
The City of Rockingham is a foundation member of the South
West Group, a collective of southern metropolitan Local
Governments focussed upon regional economic development
initiatives. It is not proposed to review or change the City’s
involvement with this organisation.
Investment attraction remains a very legitimate economic
development function for the City, particularly given the need
to promote the Waterfront Village and Rockingham City Centre
Precincts. Some examples of the work undertaken in this area
are included in the appendix.
The business leadership forums have been an outstanding success
and assisted in developing positive relationships with the local
business community. Examples of speakers at the forum include:
• Captain Brett Dowsing, Commander HMAS Stirling on
‘Leadership’
• Brian Giesen, Ogilvy PR on ‘Social Media’
• David De Garis, NAB Senior Economist on ‘Economic Phase
for WA’
• Tom O’Toole, Beechworth Bakery VIC on ‘Small Business’.
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City of Rockingham Economic Development Strategy 2014 – 2017
6.2 DESIRED FUTURE SITUATION
The Concepts of Competitive Advantage and
Core Competence
In his defining work on creating and sustaining superior
performance in corporations, Harvard University Professor of
Economics, Michael Porter, identified two fundamental types of
competitive advantage.
Cost advantage: Having products that deliver the same benefits
at lower cost than your competitors.
All Local Governments compete for investment. Investment
creates employment and bolsters the economic fabric of the City.
Some investment happens without targeted attraction effort.
In the City’s case, the population explosion in Baldivis and
appurtenant millions of dollars in commercial development
creating the Stockland Shopping Centre, Masters Hardware,
Baldivis Medical Centre etc. is a good, but not unique example.
Porter also created the “resource based view”, which suggests
that in order for an organisation to develop and sustain its
competitive advantage, it must have resources and capabilities
that are superior to its opposition.
Notwithstanding the very sound urban and regional planning
effort that underpins development in Baldivis, this rapid
development is happening and will happen whether the City
likes it or not. Perth is expanding at a rapid rate and the City
is one of a number of outer metropolitan Local Governments
accommodating this growth as part of the State Governments
higher level strategic planning, as espoused in “Directions 2031
and Beyond – Planning Beyond the Horizon”
In their benchmark publication entitled, The Core Competence
of the Corporation, C.K. Prahalad and Gary Hamel coined
the term core competencies, or the collective learning and
coordination skills behind the firm’s product lines. They made
the case that core competencies are the source of competitive
advantage and enable the firm to introduce an array of new
products and services.
In broader economic terms, developments like Baldivis bring
people to the City; they also however, create a need for new
community infrastructure, municipal services and employment.
The net economic benefit therefore, particularly to the City as
a corporation and financial entity, may be at times negative,
particularly if one takes a “life cost” approach to infrastructure
provision, maintenance and reinstatement.
According to Prahalad and Hamel, core competencies lead to
the development of core products. Core products are not directly
sold to end users; rather, they are used to build a larger number
of end-user products. In other words, the skills contained within
the core business of the corporation are the ones that can add
the most value to new initiatives.
The ultimate success of this Economic Development Strategy
should be measured by a demonstrated net benefit to the
City’s financial position or “bottom line” and the attraction,
development or improvement of facilities and services that
will benefit the community at large, not just the immediate
stakeholders of the investment outcome.
Applying Competitive Advantage to Local
Economic Development
This will require the identification of unique, attractive and
realisable opportunities that will facilitate investment, attract
new services and facilities and create new revenue streams for
the City.
Differentiation Advantage: Having a product that is unique and
valuable to buyers.
While this may seem to be stating the obvious, these basic
principles of competitive advantage and organisational
competency may be influential in targeting scarce resources
towards investment attraction initiatives.
In simple terms, the City should promote, develop and capitalise
on initiatives that:
• are unique and attractive to prospective investors
• come under the control, management and influence of the
Local Government
• fall within the capabilities and expertise of the organisation
to deliver and succeed; and
• will facilitate measurable new investment realistically linked
to that initiative.
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Key Recommendation 1
The City’s major economic development focus and priority resource allocation should be directed towards projects and activities that:
• are unique and attractive to prospective investors
• come under the control, management and influence of the
Local Government
• fall within the capabilities and expertise of the City as a
corporation to deliver and succeed
• provide increased revenue streams for the City as a corporation
• benefit the community at large
• will facilitate measurable new investment realistically linked
to those projects and activities.
Key Opportunities
HMAS Stirling
Since its commissioning on 28 July 1978, HMAS Stirling (the
base) has expanded significantly.
It is today the largest base in the Royal Australian Navy (RAN)
and is home to more than 2,400 service personnel, 600 Defence
civilians and 500 long-term contractors.
Twelve fleet units including Anzac Class frigates and Collins
Class submarines are stationed at the base, along with 70 other
units including the Submarine Training and Systems Centre and
the Defence Communications Station Perth.
HMAS Stirling’s primary purpose is to provide operational and
logistics support to the RAN ships, submarines and aircraft
based in WA.
Garden Island
The base is a critical economic development contributor to the
City. The RAN and its contractors and support services provide
career based employment opportunities for many City residents.
They also procure products and services from small and medium
businesses in the area.
Prospects for future growth at the base are good.
The following excerpts from the Australian Defence Force
Posture Review March 2012 and the Australian Defence
White Paper 2013 demonstrate the national strategic defence
importance of the base and the willingness of the Australian
Government to invest in the further development of its
facilities and capability. Most importantly, no suggestion exists
whatsoever throughout either document, that operations and
activities of the base might be downscaled.
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City of Rockingham Economic Development Strategy 2014 – 2017
Australian Defence Force Posture Review March 2012
Fleet Base West (Page 32 – 33)
6.22 Fleet Base West at HMAS Stirling is well-located for maritime
operations in Australia’s Western and Northern approaches,
and has excellent access to industry support and a maritime
exercise area. HMAS Stirling will continue to be a highly effective
homeport for submarines and frigates. It would be strategically
advantageous to develop the capacity for AWDs to be forward
deployed from Fleet Base West, given its Indian Ocean location
and proximity to Southeast Asia. These regions are where AWD
capabilities are more likely to be deployed in a contingency
requiring advanced maritime air defence capabilities.
6.23 Expansion of Fleet Base West’s wharf capacity and support
facilities will, however, be necessary for it to meet the increased
demands of Force 2030 involving new submarines and frigates,
and as a forward deployment base for the AWD. Developing
missile loading and guided ordnance maintenance facilities
at Fleet Base West would be advantageous for sustaining
operations and supporting training activities.
Defence should monitor developments in consultation with the
WA Government.
6.26 Fleet Base West could also support an enhanced US naval
force posture in the Indian Ocean. Fremantle has previously been
used by the US Navy as a location for ‘sea swap’ crew rotations
for its destroyers.
(Recommendation 16 - Page 35)
Defence should develop options to expand wharf capacity and
support facilities at Fleet Base West to:
a. support major surface combatant capability and operations by:
6.24 Expanded wharf capacity and support facilities could also
support US Navy vessels.
6.25 At present, transit by submarines and surface ships from
Fleet Base West is limited to a single channel. Commercial
dredging and sand mining may present an opportunity to open
a second shipping channel into Cockburn Sound. A second
channel would provide greater operational flexibility for the ADF
and visiting allied vessels as well as commercial shipping.
I.providing adequate infrastructure and facilities, including
missile loading and maintenance facilities, to homeport
the Future Frigate class and forward deploy at least one
Air Warfare Destroyer; and
II.ensuring such facilities are also able to be used for
deployments and operations in Southeast Asia and the
Indian Ocean by US Navy major surface combatants and
aircraft carriers;
b. support submarine capability and operations by:
I. enabling Fleet Base West to continue as the primary
submarine homeport when the expanded Future
Submarine fleet enters service; and
II.ensuring such facilities are also able to be used by US
Navy Submarines.
Australian Defence White Paper 2013
2.25 (Page 10) At the Australia-US Ministerial Meeting (AUSMIN)
2012 in Perth, Australia and the United States agreed to
undertake a cooperative study to explore opportunities in the
long-term for enhanced cooperation with the US Navy at a range
of locations in Australia, including Australia’s Indian Ocean naval
base, HMAS Stirling. Decisions on future options for increased
US naval cooperation in Australia require further consideration
by both Governments
5.37 (Page 49) In accordance with the Review’s
recommendations, the Government will continue plans to
develop Fleet Base East as the home port for the Landing
Helicopter Dock ships and Air Warfare Destroyers and enhance
Fleet Base West to support major surface combatant and
submarine capability and operations. Infrastructure requirements
for new capabilities such as the Future Frigate, Future Submarine
and Armidale Class patrol boat replacement will be progressed
through routine inclusion of associated facilities requirements in
the scope of those projects in the DCP
6.16 (Page 57) In recognition of the importance of the Indian
Ocean and our combined focus on the global strategic
significance of the region, Australia and the United States
also agreed to continue exploring cooperation on Indian
Ocean matters, reflecting our combined focus on the global
strategic significance of the region. This will include potential
opportunities for additional naval cooperation at a range of
locations, including HMAS Stirling, Australia’s Indian Ocean naval
base.
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The City enjoys a cooperative and productive working relationship with HMAS Stirling.
Base commander Captain Angela Bond RAN sits on the Rockingham Economic
Development Advisory Committee, and senior staff from both organisations liaise and
collaborate on a range of issues, both operational and strategic.
Given the scale and complexity of operations at the base,
a very large amount of short term visitation takes place from
ADF personnel, politicians, public servants, visiting
dignitaries, providores, service providers, contractors and
specialist consultants.
The potential economic yield from this “business tourism”
activity is essentially being lost to the City as a result of a lack
of a modern, large scale and suitably branded hotel being
located in the area.
Base personnel have been most helpful in providing
information on visitation rates to assist in strengthening
investment business cases however, despite planning
approvals being granted by the City for significant “branded”
establishments in recent years, no evidence of either project go
ahead or construction activity has emerged.
The attraction of a major hotel to the area is a significant
opportunity that will be explored as a specific component of
this strategy.
Opportunities also exist to improve the long term sustainability
of the Murdoch University Rockingham Campus, by identifying
graduate and post-graduate curricula that are aligned with
defence based activities.
The Sir Walter Murdoch School of Public Policy and
International Affairs offers a range of professional Masters
degrees and other graduate programs in global strategic
studies, international economics, resource security, political
economics and counter-terrorism. The School has a strong
academic and research focus on the Asia-Pacific region which is
entirely congruent with the issues raised in the Defence White
Paper and Force Posture Review.
The Pro-Vice Chancellor of Murdoch University, Professor
Richard Higgott, has confirmed to the City his strong desire
to explore opportunities for the further development of the
campus and in particular, opportunities that would align with
the growth and expansion of the base.
The City’s Leaning City Strategy should be reviewed and
amended to more specifically identify and facilitate the
development of the relationship between the Base and the
Campus. The extension of the Sir Walter Murdoch School of
Public Policy and International Affairs to Rockingham is an
opportunity that should be fully explored.
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City of Rockingham Economic Development Strategy 2014 – 2017
THE CITY CENTRE AND WATERFRONT VILLAGE
The City Centre and Waterfront Village are two pivotal Precincts within the Rockingham
Strategic Regional Centre Plan. Both areas remain substantially undeveloped and will
require significant investment to reach their potential and satisfy the desired outcomes
identified within the Rockingham Strategic Regional Centre Planning Framework.
The Waterfront Village
Of significant importance in the context of “uniqueness” is the Foreshore Precinct of the Waterfront Village policy area, bounded by
Cockburn Sound, Railway Parade and Wanliss and Kent Streets.
Artist Impression looking North West along Patterson Road, with Village Green to the North
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The following are excerpts from the Rockingham Strategic Regional Centre Planning
Framework which serve to outline the desired future character, preferred land uses and
relevant planning elements of this important area.
10.2 Sector 2 – Waterfront Village (Page 90)
Location
The area generally bounded by the coast, Wanliss Street,
Cessnock Way, Read Street, Greene Street, Ryan Street, Houston
Street, Langley Street and Florence Street.
Desired Future Character
Port Rockingham was once the busiest port in the State by
tonnage of goods shipped through the jetties at the end of
Railway Terrace. The associated beachfront and town site was
subsequently transformed into one the States favourite family
holiday and day trip destinations. With the shifting south of
many of its commercial and civic functions to the new Regional
Centre in the early 1970’s, the historic ‘main street’ centre
retained a compact townscape character well suited to the
demands of a contemporary urban waterfront lifestyle.
The emerging Waterfront Village will continue with its
transformation into a regionally significant beachfront hub
with further redevelopment of under–utilised public and
private properties. An attractive mix of medium to high density
residential and short–stay apartments, hospitality–focussed
retail, offices and urban waterfront recreation uses will combine
to make this a priority destination on the Rockingham coastline.
Preferred Uses
• Appropriate Transit Oriented Development (TOD) uses lining
the Transit Route
• Mixed use, urban–scaled development
• Residential (medium to high density)
• Serviced apartments
• Entertainment/hospitality
• Possible Contemporary Arts Centre
• Restaurants, small bars and cafes
• Local convenience retailing
• Public car parks
• Passive Parkland.
Elements
• Continue with the transformation of the historic beachfront
centre into a contemporary waterfront residential,
commercial and recreational activity node servicing local
residents and regional visitors
• Prepare an updated sector Development Plan with relevant
changes to residential codings to guide the progressive
urban consolidation and transformation of the area
consistent with its TOD context
• Respond to the rare combination of a northerly coastal
aspect, sheltered beach and shady parkland with
appropriate land uses, in detailed urban design and with
site responsive architecture
• Consolidate development within the walkable catchment of
the transit system
• Facilitate continued infill of residential and short–stay
apartments along central section of Rockingham Beach Road
and along south western side of Railway Terrace through to
Read Street intersection
• Retain and enhance activated commercial frontages to
Rockingham Beach Road, central Kent Street, Flinders Lane
(north of Kent Street) and Railway Terrace (north of Kent Street)
• Update and expand the application of the existing
building height policy consistent with an adopted sector
improvement plan.
Artist Impression looking north along Railway Terrace
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City of Rockingham Economic Development Strategy 2014 – 2017
This area contains three intrinsically linked elements that together
form a very unique and attractive promotional opportunity:
• a north facing beach sheltered from both the prevailing
summer south westerly winds and ocean swells
• 3.2 hectares of shaded grassed parkland with toilets,
barbecues and visitor facilities (Churchill and Bell parks)
• a developing area of small bars, restaurants and tourist shops
underpinned by contemporary apartment developments.
The area is an iconic and very popular gathering place for locals
and visitors alike.
Rockingham Foreshore
The parklands are somewhat “tired” in terms of their design
and infrastructure, and the pedestrian linkages for patrons of
Rockingham Beach Road food and beverage enterprises moving
to and from the parklands can be problematic at busy times
particularly when traffic is congested and parking is at a premium.
There is approximately 8.7 hectares of prime north facing land
either vacant or not developed to its maximum and best use
situated on Rockingham Beach Road immediately adjacent to
the beach and parklands.
Development along Rockingham Beach Road has been
significantly hindered by a lack of investment confidence, a
flow on from the 2008 Global Financial Crisis and subsequent
tightening of financing sources for the commercial property
development industry.
Potential exists for significantly more developments of the type
and scale of the existing multi-storey apartment developments.
The location of a major “branded” hotel in this location would
obviously raise investment interest in the area. Rate revenues,
pedestrian activation and commercial and retail sales would all
benefit from increased development in the area.
Major portions of land along Rockingham Beach Road and in the
immediate vicinity are either vacant or not developed anywhere
near their commercial potential. Only five apartment towers of
contemporary design with ground floor retail space have been
constructed over the last decade.
Opportunities also exist to better utilise the very wide Railway
Terrace road reserve, currently predominated by parking bays,
for alfresco dining and community market facilities. The “Corso”
in Manly NSW and the Acland Street Precinct in St Kilda Victoria
are good examples of this type of public space utilisation.
Notwithstanding these shortcomings, the fact remains that this
precinct is absolutely unique in the context of the entire Perth
Metropolitan coastline.
Acland Street Precinct, St Kilda, Victoria
The Corso, Manley Beach Sydney NSW
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Public transport efficacy would also improve with increased
patronage and corresponding economic feasibility. A “CAT” bus
type service, as provided in the City of Perth, could become a
reality if the area experienced a significant increase in population
and commercial activity. The current free shuttle bus that
connects the Rockingham Railway Station, City Centre and the
Waterfront Village provides an important service however, the
provision of smaller buses on a more frequent timetable would
be more advantageous and facilitate better patronage. The use
of a specified area rate to subsidise a joint venture with the State
Government in this regard could be explored.
Cars and car parking, particularly along Rockingham Beach
Road, have a negative impact upon pedestrian amenity
and alfresco activity. Traffic creates a major barrier between
commercial enterprise, park and beach. The road reserve area
currently utilised for parking is significant.
Opportunities exist to explore the viability of the construction
of an “ocean pool”. The contemporary debate on shark
numbers, as a result of recent fatalities, has prompted some
quite interesting responses from our political leaders. Whilst it
certainly is not the purpose of this exercise to get involved in the
“shark debate”, one major party pre-election commitment was
for the establishment of ocean pools at Cottesloe, “a northern
suburbs beach” and Albany. North facing Rockingham Beach
has a significant advantage over all other metropolitan beaches,
including Cottesloe beach which are subjected to the sand
blasting effects of the south westerly summer sea breeze.
The investment and visitor attraction potential of the “only
beach in the Perth Metropolitan area that can provide a
guaranteed sea-breeze and shark-free experience on a hot
summers day “ presents an enormous opportunity for the
City. Linking this experience to a world class foreshore park
seamlessly integrated with food, beverage, retail and short
stay accommodation presents an absolutely unique selling
proposition anywhere in this State and perhaps even nationally.
It is acknowledged that an ocean pool will come at a significant
capital cost and year in year out maintenance responsibilities
both minor and major. Any decision to proceed with the concept
should only come after detailed financial modelling and a clear
demonstration that the City has the long term financial capacity
to meet its obligations in both a capital and operational context.
Notwithstanding these inevitable financial hurdles, the master
planning exercise should explore the opportunity. If nothing
comes of it, so be it.
In order to maximise the social and commercial potential
of the area, it is now timely to commence planning for the
establishment of a multi-level parking station within reasonable
and practical walking distance. Preliminary planning has already
been undertaken that would provide more bays in the parking
area behind the Garry Holland Centre. Should capacious parking
facilities be established on this site, then a far more pedestrian
friendly public space could be developed within the Rockingham
Beach Road reserve.
The “branding” of the area would provide a strategic focus for
marketing and promoting investment attraction initiatives. In the
medium to long term when more development has eventuated
and the public space redeveloped, it would be extremely
beneficial if the general area was the beneficiary of ongoing
marketing campaigns that promoted food and beverage,
accommodation, retail and recreation facilities and services
within the precinct.
Given the precinct’s uniqueness, discrete location and common
commercial theme, the concept of local traders and landowners
coming together to collectively deliver their own branded
marketing campaigns is a key opportunity. The “Business
Improvement District” (BID) concept, very popular in the USA,
Canada and the UK might be an appropriate vehicle on which to
develop a local marketing entity.
The concept entails a precinct of businesses forming an
incorporated association that undertakes collective activities
for the benefit of their members . Such activities could include
marketing, events, special promotions, streetscaping, cleaning,
security etc. A helpful analogy would be the collective programs
and promotional activities that major shopping centres deliver to
attract patronage to their tenants. Put simply, the BID Association
takes the place of the shopping centre owner manager.
The activities are funded by a specified area rate levied by the
City, the proceeds of which are passed on to the association for
the delivery of their programs. BID’s do not obviate the need for
Local Governments to deliver the normal facilities and services, the
programs are activities “over and above” what a Local Government
would provide in the course of their normal operations.
BID’s require strong initial and ongoing support and involvement
from local traders. The concept should not be even entertained
if this support is not clearly evident.
Successful Australian based BIDs include Fremantle in WA and
Gosford in NSW.
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City of Rockingham Economic Development Strategy 2014 – 2017
Key Recommendation 1 City’s major economic development focus and priority resource
allocation should be directed towards projects and activities that:
• are unique and attractive to prospective investors
• come under the control, management and influence of the
Local Government
• fall within the capabilities and expertise of the City as a
corporation to deliver and succeed
• provide increased revenue streams for the City as a
corporation
• benefit the community at large
• will facilitate measurable new investment realistically linked
to those projects and activities.
A major redesign and improvement of the parks and
streetscapes in this precinct certainly meets these criteria.
The shaded parklands, north facing beach and adjoining
commercial enterprise provide the City with an enormous
opportunity to create a very special visitor experience, for both
locals and tourists.
In order to improve the area and make it more attractive to
investment, it is considered absolutely critical that Bell and
Churchill Parks, the Rockingham Beach Road streetscape, and
the general interconnectedness between beach, parkland,
streetscape and the street level commercial enterprises are
significantly improved by way of the development of a detailed
master plan and subsequent redevelopment.
Opportunities also exist to improve pedestrian activation by way
of better linkage between the Palm Beach and Val Street Jetties.
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Key Recommendation 2
A detailed design and master planning exercise be undertaken
for the area comprising:
• Churchill and Bell Parks
• The Boardwalk between Churchill Park and Val Street Jetty
• Rockingham Beach Road between Wanliss Street and
Railway parade
• Railway Parade between Kent Street and Rockingham
Beach Road
• The Esplanade and adjacent reserve between Palm Beach
Jetty and Val Street Jetty.
The Masterplan should deliver the following key outcomes:
• a contemporary design using world best practice civic
and public place design principles and materials that are
complementary to the planning objectives of the Foreshore
Precinct of the Waterfront Village area
• a design that is sympathetic to, and makes maximum use of
the uniqueness of the north facing sheltered beach and the
significant shaded areas within the two parks
• a design that that is complementary to the functionality and
feasibility of existing and future apartment/hotel/food and
beverage/retail development
• a design that will be conducive to community events
and gatherings
• a design that incorporates latest technology public toilet
systems both portable and fixed
• a design that facilitates better linkage between Bell Park and
the Palm Beach Jetty
• the feasibility of the establishment of an “ocean pool” in the
study area and recommendations on form, scale and location
• streetscapes that facilitate pedestrian activation and alfresco
dining, maximising community interaction and enjoyment
• streetscapes that facilitate effective linkage between
shopfronts and adjacent reserves to complement existing
and future retail, food and beverage and tourism activities
• a reduction in vehicular traffic and the impact of vehicles and
parking on the amenity of the area generally and options for
appropriately relocated parking in the near vicinity
• development of a title/name for the general area under
design consideration that will be used for marketing and
promotional purposes in the future.
The master planning process should include significant
community engagement and consultation with all relevant
stakeholders including local residents, businesses and community
associations.
The “Business Improvement District” concept should be
promoted with local traders to gauge interest.
After the Masterplan has been completed and adopted by
Council, develop an investment attraction prospectus that
highlights the features and benefits of the precinct, and
implement a strategic marketing campaign that raises the
media profile of the area and targets relevant government and
semi-government departments and private developers.
The focus for the upgrade of Churchill and Bell Parks is to improve their interface with the shoreline landscape and Rockingham
Beach Road commercial enterprises by creating pedestrian friendly environments using contemporary design principles and utilising a
number of innovative material choices.
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City of Rockingham Economic Development Strategy 2014 – 2017
THE CITY CENTRE
Up until the late 1960s the centre of civic and commercial centre of Rockingham was what
is essentially now the Waterfront Village, centred around commercial activity in Kent
Street, Rockingham Beach Road and Railway Terrace. With a population of 4,383 and a
reputation as a family friendly beachside holiday location, the area served its purpose well.
Changes were inevitable however, due to the rapid increase
in Rockingham’s population, combined with a contemporary
desire for large volume regional shopping centres with drive up
car parking availability and major department stores as anchor
tenants. Chadstone, Victoria was the site of the first of these
types of developments in 1960. Early examples in the Perth
metropolitan area were developed in Cannington, Booragoon
and Karrinyup.
As a result privately owned land, two kilometres south of the
waterfront area, was identified as a City Centre that would
provide a full spectrum of commercial, civic, cultural and
employment functions.
The following are excerpts from the Rockingham Strategic
Regional Centre Planning Framework which serve to outline
the desired future character, preferred land uses and relevant
planning elements of this important area.
10.1 Sector 1 – City Centre (Page 88)
Location
The area generally bounded by Council Avenue, Read Street,
Leghorn Street, Success Drive, Marks Place, Louise Street and its
extension through to Council Avenue.
Desired Future Character
The City Centre will continue to be the tertiary economic and
employment focus of the Rockingham Strategic Regional Centre
with the retail anchor of an expanded shopping centre merging
with Main Street mixed use development, civic buildings and
major public spaces including the City Square and the proposed
Central Promenade Piazza.
Preferred Uses
• Appropriate TOD uses lining the Transit Route
• Retail at ground level in a “Main Street” configuration
• Street front mixed uses including offices and apartments
• Restaurants, small bars and cafes
• Civic and cultural uses, possible Contemporary Arts Centre
• Medium to high density residential
• Serviced apartments
• Public car parks
• Passive parkland.
Provision will be made for higher density offices and residential
apartments over street level retail and commercial tenancies.
The focus for the area of Palm Beach is to improve the connectivity between the newly constructed Palm Beach Jetty and the Major Rockingham
Foreshore Development.
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Rockingham City Shopping Centre
Elements
• Facilitate the development of an attractive CBD with a
wide range of mixed uses arranged and oriented around a
contemporary Main Street development model
• Integrate existing internal shopping centre with external
retail, commercial, residential, recreation and civic
components of a Main Street centre
• Implement a legible and well-connected arrangement of
streets, laneways and public spaces framed with generally
contiguous, urban scaled buildings of high architectural quality
• Facilitate a distinct and appealing townscape with high levels
of amenity and interest for pedestrians
Significant strategic planning has been undertaken on the
subject land and few constraints, apart from government policy
and commercial investment decisions, stand in the way of
development of the area to its highest and best use.
The Rockingham Shopping Centre underwent significant
renovations in 2007 increasing retail floor space from 46,068 m2
to 52,880 m2. Other significant civic and commercial buildings
have been constructed since that time including the City
Administration Centre, Courthouse, Police Station and several
major commercial office developments accommodating both
private and public sector activities.
The precinct currently contains 22.8389 hectares of suitably
zoned and serviced vacant land suitable for multi-storey mixed
use developments including residential, professional office,
government office, retail and commercial. Ownership of this land
vests with a range of private and government entities.
Whilst decisions on the development of this land will always be
dependent upon prevailing market forces, general economic
• Arrange built form with a gradation of height to visually
define the activity core of the CBD and relevant sections of
the transit route
• Incorporate medium to high density mixed use development
(including residential and offices) within walking distance of
transit on land north of Central Promenade and east of the
Transit Street
• Modify current intersection treatment at western and eastern
ends of Central Promenade to re-establish direct connection
with Simpson Avenue.
conditions and latent demand, no real coordinated effort has
been made to promote or market the area to prospective
investors either at a state or national level.
The development of a specific prospectus that highlights the
features and benefits of the land and a marketing campaign
targeting prospective investors/media/development industry will,
at the very least, raise awareness of the opportunities that exist.
The relocation of a State Government department, similar to the
Department of Fire and Emergency Services’ move to Cockburn
Gateway, presents a good opportunity as does the development
of housing for defence personnel through Defence Housing
Australia programs.
Development of this land for its intended purpose will bring
significant benefits to the City including increased rate revenues,
improved public transport viability and a significant economic
stimulus for local business.
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Arial image of vacant lots
Area Ref
Area (m2)
Area Ref
Area (m2)
1
3,550.36
9
12,220.78
2
5,810.71
10
7,193.37
3
56,295.56
11
51,574.82
4
2,443.57
12
2,198.75
5
1,250.20
13
3,319.32
6
13,102.75
14
2,485.32
7
14,012.13
15
2,435.60
8
4,024
16
28,117.84
Total Area: 210,034.76 m2
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Old style “Factory Unit Development” Dixon Road
Contemporary development Dixon Road
Key Recommendation 3
Develop an investment attraction prospectus that highlights the features and benefits of
the Rockingham City Centre Precinct, and then implement a strategic marketing campaign
that raises the media profile of the area and targets relevant government and
semi-government departments and private developers.
Dixon Road
Commercial properties both fronting and in the vicinity of Dixon
Road, are about to experience a significant increase in traffic
activity as a result of the construction of the Mundijong Road
Extension, recently named Kulija Road as part of the City’s
commitment to the Reconciliation Action Plan. The City will, for
the first time, enjoy a principal access point from the Kwinana
Freeway. It is anticipated that the Thomas, Anketell and Safety Bay
Road exits will be far less used as ingress and egress points to the
City Centre and therefore much more activity can be anticipated.
Vehicle movements along Dixon Road are being closely
monitored so as the inevitable increase in traffic, after the
commissioning of the new access, can be quantified and used
to inform prospective investors and developers of heightened
opportunities for new mixed business enterprise.
Signposting changes along Kwinana Freeway, ie the removal
of the Rockingham sign at the Thomas Road intersection along
with community information campaigns should see significant
changes to driver behaviour.
This increase in traffic will facilitate more commercial
opportunity and the potential for significant redevelopment
of some of the older more dilapidated premises into larger
contemporary structures. The development of The Challenger
Institute Building Technology Centre and the continuing
presence and potential development of Challenger Institute
and Murdoch University Rockingham Campus have already
added significant value to the precinct.
The commercial investment opportunities that will be generated
by this increase in traffic and enhanced site visibility should be
promoted in order to raise awareness across all sectors of the
property development and service industry/commercial sector.
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City of Rockingham Economic Development Strategy 2014 – 2017
Recommendation 4
Develop an investment attraction prospectus that highlights the features and benefits of the
Dixon Road Precinct, focussing upon the commercial opportunities that will flow from the
significant increase in vehicle movements generated by the new freeway access road.
Other Foreshore Precincts with Tourism
and Recreation Potential
Notwithstanding the uniqueness and potential of the
Rockingham Beach foreshore area, the City contains several
other attractive and underutilised coastal foreshore precincts of
a smaller scale that possess significant potential for higher level
usage and increased investment in both private development
and public open space.
Waikiki, Port Kennedy and Secret Harbour are popular beachside
destinations with strategically located vacant and underutilised
developable land, suitably zoned to accommodate a mix of
residential, commercial and tourism related land uses.
The development of the Port Kennedy and Secret Harbour
foreshore precincts is constrained by the control or potential
public open space vesting in the developers, either by way of
management order or in fee simple.
The Port Kennedy development is currently being reassessed in the
light of revisions to the WA Planning Commission State Planning
Policy 2.6 - Coastal Planning, which has reduced the developable
footprint of land as a result of sea level rise predictions.
The Secret Harbour foreshore has significant potential as a
tourism destination and investment catalyst given its increasing
popularity as one of the Perth metropolitan area’s premier
surfing beaches, and the impending construction of the new
Secret Harbour Surf Lifesaving Club facility.
The owners of the developable parcels of land within this foreshore
precinct will no doubt be driven by economic considerations when
making a decision when to commence development. Accordingly
the land reserved as public recreation under the management
control of the developer and the commitment toward construction
of any proposed landscape treatment is still to be determined. The
enhancement of public open space and pedestrian areas within
the foreshore precinct will be a shared responsibility, guided by a
Masterplan approved by Council.
Proposed Secret Harbour Surf Life Saving Club
The potential of the Waikiki Beach precinct centres on the
redevelopment of the old Waikiki Hotel site and adjoining parcel
of lands. The City has invested significantly in the improvement
and renovation of adjacent foreshore reserves and the area
experiences high levels of visitation, particularly during the
summer months.
1.5 kilometres to the northwest of the development site the
“Tern Island Pond”, created by the natural accretion of sand
adjacent to the Bent Street Boat ramp, has created a world class
kite and wind surfing area and experiences strong patronage in
summer afternoons where the prevailing summer south westerly
see breeze typically exceeds 15 to 20 knots in strength.
In December 2013 developers received approval to construct
a four storey mixed use development fronting Malibu Road
that contains 42 residential units, some suitable for short
stay residential, and ground floor commercial/shop/office/
restaurant tenancies.
Major tourism and residential development potential lies within
the remainder of the undeveloped site fronting Safety Bay
Road overlooking Warnbro Sound. Given the primacy of the
site and the dearth of this type of beachfront developable land
in the metropolitan area, it is important that a “signature”
development outcome is delivered that provides a range of
quality commercial and food and beverage outlets on the lower
floors, with functional pedestrian linkage to the foreshore
reserve and beach. Solutions such as an underpass or pedestrian
bridge, not dissimilar to the Scarborough Beach “Observation
City” example, should be explored.
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Proposed Secret Harbour Surf Life Saving Club
Alfresco dining and other appropriate commercial activities on the
foreshore reserve should also be investigated. City planning staff
anticipate an iconic eight storey development of contemporary
design with adjoining piazzas and pedestrian boulevards.
Existing structures and land-uses on adjacent sites may become
attractive to redevelopment in the medium to long term,
however, decisions to redevelop will be driven by economic
considerations and the desire of land owners.
Whilst prevailing market conditions will dictate the timing and
scale of development within these foreshore precincts, the City
should ensure that the master planning for these public spaces is
of a best practice contemporary design and is complementary to
tourism and commercial investment.
Proposed Mixed Use Development Waikiki
In all cases, the City should ensure that funds are made
available at the time of development to redevelop and improve
adjacent foreshore reserves to facilitate alignment with private
developments in terms of design, utility and the provision
of functional and contemporary infrastructure and facilities.
Master planning in these precincts should include overlays that
seamlessly conflate the public and private estate.
The City should also actively market and promote the potential
of these precincts to the development industry in order to raise
their profile and provide linkage between investors and property
developers with a desire to purchase the land parcels, and
possibly accelerate the time frames for project delivery.
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City of Rockingham Economic Development Strategy 2014 – 2017
Key Recommendation 5
Develop an investment attraction prospectus and undertake a targeted marketing
campaign that highlights the development potential of the Secret Harbour, Port Kennedy
and Waikiki Foreshore Precincts that will attract tourism, food and beverage, short stay
residential and residential investment. Ensure that master planning in these foreshore
precincts seamlessly conflates the design, form and function of public space in the public
and private estate, and that City redevelopment and improvement of foreshore reserves
aligns with adjacent private sector development.
Murdoch University
The Rockingham Campus of Murdoch University opened to
students in 1996. It was created as a niche focused regional
campus, designed to provide alternative programs, such
as Engineering, General Arts, Tourism, History, Sociology,
Community Development and Commerce.
The campus offers a range of entry pathways into university, a
suite of courses in teacher education, arts and tourism, along
with a range of electives for many other Murdoch University
courses. The last 10 years has seen a decline in enrolments at
the campus from approximately 900 persons in 2005 down to
around 500 enrolments at the end May 2013.
The City partners Murdoch University in the Chair of Education
and contributes $190,000 per year to the program. The City
remains a strong partner with and supporter of Murdoch
University. The critical contribution Murdoch’s presence in
Rockingham makes to the social and economic fabric of the City
is acknowledged.
The City will work closely with the University towards our
common goal of returning enrolment to over 800 persons by
2018 and making the campus sustainable in its own right. The
Learning City Strategy, adopted by Council in June 2013, will
guide the development of the campus and foster the strong
relationship between the City and the University.
As has been previously highlighted, opportunities for curricula
development in collaboration with the Department of Defence,
particularly in the area of international strategic studies, should
be explored via the City’s Learning City Strategy.
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Key Recommendation 6
Review the Learning City Strategy to incorporate the objective of facilitating and encouraging
a partnership between Murdoch University and the Department of Defence and more
specifically between the Sir Walter Murdoch School of Public Policy and International Affairs
and HMAS Stirling, with a view to establishing a range of professional Masters degrees and
other graduate programs in global strategic studies, international economics, resource security,
political economics and counter terrorism, at the Rockingham Campus.
The Rockingham National Centre of Excellence
in Desalination
The National Centre of Excellence in Desalination Australia
boasts a world-class desalination pilot-scale testing facility that
allows researchers and industry to performance test novel and
improved desalination technologies and processes at pilot scale
and allows industry to validate commercial products, integrate
currently deployed technology and evaluate potential technology
options. It is flexible, modular in design for testing multiple
novel technologies, and is highly instrumented for researcher
efficiency, scalability and reliability of results.
Through the resources and capabilities built in the pilot-scale
testing and research facility, the NCEDA provides commercial
testing and research services to water utilities, the desalination
industry, government, engineering consultants and industrial
desalination users. Unique pilot scale research facilities, 15
adjacent laboratories and offices are available to industry for
product development and testing.
The Centre is a nationally recognised and uniquely important
research establishment. Its location in Rockingham bolsters the
presence of Murdoch University and presents some opportunity
for the development of business tourism through academic
conferences and conventions and visiting scientists, researchers,
expert technicians and service providers.
Western Trade Coast
The Western Trade Coast is an identifying term for Western
Australia’s most important and strategically located industrial
land precinct comprising of the Kwinana Heavy Industrial
Area, Latitude 32, Australian Maritime Complex and the East
Rockingham Industrial Area.
The East Rockingham Industrial Area comprises of 650 hectares
of land of which only 182 is developed. Development of the
land will depend upon prevailing economic conditions and
matters generally outside of the influence of the City. The land
is appropriately zoned and serviced and its development over
time will make a significant and critically important contribution
to the City’s rate base given the relatively small rateable area
of industrial land in the City and the inevitable reduction in
revenues from the Millar Road Landfill Facility.
The State Government has established an advisory committee
known as the Western Trade Coast Industry Committee for the
purposes of:
• coordinating and prioritising across Government planning
and action within the Western Trade Coast Area
• refining and driving the delivery of the Western Trade Coast
(WTC) Action Plan
• providing advice and recommendations to the Government
regarding the development of the Western Trade Coast Area.
The City is represented on this committee by the Director of
Planning and Development Services.
Consultants SKM undertook an integrated assessment of the
Western Trade Coast area in 2013 and the findings demonstrate
its importance to the economic fabric of the State.
Key findings were:
• it is a significant contributor to the WA economy with direct
sales of $14.7 billion per annum
• it employs 11,362 people directly of which 64% live locally
within Rockingham, Kwinana and Cockburn
• it has indirect inter-industry flow on effects amounting to an
estimated $10.3 billion in output and 18,274 jobs
• it contributes to the local community by providing
employment, training and development.
The development of the Western Trade Coast area over time
will add significant value to the City of Rockingham by way of
increased workforce opportunities and general economic stimulus.
Whilst the City will foster development in this area now and into
the future, a key economic development opportunity existing at this
time is the utilisation of interstate and overseas business visitation
data to assist in the attraction of a major hotel to Rockingham. This
opportunity will be discussed as a specific part of the strategy.
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City of Rockingham Economic Development Strategy 2014 – 2017
Mangles Bay Marina
In September 2009 the State Government announced that it
would progress planning and development of the Mangles Bay
Marina concept and subsequently appointed Cedar Woods
Properties Ltd and Landcorp as joint venture partners to progress
the proposal through the statutory approval process.
The proposal is for a tourist based inland marina development
comprising a single entry marina comprising of up to 500 pens
and moorings, and a surrounding land development comprising
tourism accommodation, commercial, public open space and
residential land uses.
In June 2012 Council resolved to support the concept of the
Marina subject to:
• State and Federal environmental approvals
• Metropolitan Region Scheme Amendment, Town Planning
Scheme Amendment and Local Structure Plan approvals
• The Cruising Yacht Club of WA Inc. and the Mangles Bay
Fishing Club Inc. being satisfactorily accommodated within
the confines of the project
• traffic management issues being resolved.
Should the project come to fruition, it will attract significant
investment and provide far safer and more convenient mooring
facilities for both local and visiting boat owners. Along with
residential development, the proposal also provides for a range
of commercial and food and beverage outlets, along with short
stay residential options. The food and beverage and short stay
residential activities will certainly make the area an attractive
leisure tourism destination.
In order to maximise the economic yield from the leisure tourism
outcomes of this proposal, it is important to ensure that the
Marina and appurtenant commercial, retail and short stay
residential uses become the primary focus and stimulus of the
development. Residential development will be an important
contributor to the financial viability of the project however,
should remain as an ancillary or contributing land use.
Investment and funding decisions by the State Government and
its joint venture partner as to whether the project will go ahead
or not are yet to be made.
These decisions along with the outcomes of the statutory approval
processes will be known over the course of the next two years.
Port Rockingham (Wanliss Street) Marina
The concept of a jetty development extending from Wanliss
Street originated 25 years ago.
The Port Rockingham Marina concept consists of an open
pier extending from the end of the Wanliss Street carpark for
approximately 200 m into Mangles Bay and a 770 m breakwater
into Mangles Bay, approximately 500 boat pens, commercial and
temporary boat mooring facilities, 4000 sqm of retail floorspace,
refuelling, sullage and water supply facilities for both commercial
and private vessels and 600 car bays.
The Western Australian Planning Commission granted
conditional Planning Approval for the Port Rockingham
Marina on 31 January 2012, subject to the development being
substantially commenced by 18 February 2015.
The project would add significantly to the vibrancy and
activation of the Waterfront Village area and provide a
“bookend” with the proposed Mangles Bay Marina in terms of
commercial and leisure activities along the Rockingham Beach/
Palm Beach foreshores.
Progress with the concept is unknown however, the City
and State Government should ensure that any prospective
developer has the financial capacity to effectively complete and
commission the project within a reasonable time. A stalled,
incomplete development of this scale resulting from the
financial incapacity of the proponent would have a potentially
catastrophic effect on the image and amenity of the surrounding
beach and waterfront village areas.
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Business Leadership
The City of Rockingham has taken an active and visible
approach to economic development for many years. Strong
and productive relationships exist with all major property
development corporations doing business in the State and the
reputation of the City as a “make it happen” organisation is
well known.
Strong working relationships also exist with the State and
Federal Governments at both a political and bureaucratic level.
When major developments are proposed, concepts explored,
good (or bad) news delivered from the Government or private
sector, the City is generally involved in such discussions and used
both as a communication conduit and information resource.
The Rockingham Economic Development Advisory Committee
(REDAC) was formed as part of the Economic Development
Implementation Plan and has met on two or three occasions a
year since its inception. Chaired by Dr John Yovich, former Vice
Chancellor of Murdoch University, REDAC has undertaken an
oversight role of economic development in the City.
Given that this strategy proposes a more targeted “corebusiness” approach to economic development, the terms of
reference of the committee will not align with the objectives of
this strategy. In the circumstances, it is proposed to disband the
committee and deal with issues directly through the Corporate
and Community Development Standing Committee.
The City enjoys the presence of two important economic
development stakeholders, the Rockingham Kwinana Chamber
of Commerce Inc. (RKCC) and the Rockingham branch office of
Business Foundations Inc.
The Rockingham Kwinana Chamber of
Commerce Inc.
The Rockingham Kwinana Chamber of Commerce (RKCC) has
existed for many years - sometimes along with other specific
interest business groups such as the Rockingham Trade Centre
Association Inc. and as is the case currently, alone.
A strong, financially viable and strategic thinking local chamber
of business owners is an important and relevant contributor to
local and regional economic development.
Their website provides their mission as:
“The RKCC is the peak industry body
representing the interests of the business
community in the South-West Metropolitan
corridor. We adopt a significant role in the
economic development of the Rockingham,
Kwinana and surrounding regions, using
extensive local knowledge, resources and
networking capabilities. The RKCC has a
strong lobbying voice within Local, State and
Federal governments advocating the benefits
of utilizing member expertise, capabilities and
resources to positively contribute to regional
growth, development and employment.”
The City benefits by having a strong and unified voice on
business matters on which it can engage with, particularly
when undertaking community consultation to inform important
decision making processes. Business owners benefit by having
an advocate and network of stakeholders with similar interests
and concerns.
It follows of course that a strong and well-organised Chamber can
have directly opposing views to the City on important issues. This
diversity of opinion is a healthy and positive contributor to the local
decision making process and should be welcomed and respected,
notwithstanding that it won’t necessarily be agreed with.
Chambers can also play an important role in business training,
skills development and facilitating networking opportunities for
new and existing business stakeholders.
The RKCC has recently undergone an organisational review and
taken the major step of appointing a Chief Executive Officer. The
CEO’s priority task is to develop sustainable revenue streams and
facilitate the membership growth that is necessary to establish a
financially viable organisation.
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City of Rockingham Economic Development Strategy 2014 – 2017
Given the new level of professionalism that the RKCC is striving
for, it may be an opportune time to develop some fee for service
relationships, where by certain initiatives and tasks currently
being delivered by the City, are outsourced to the RKCC under
normal commercial contractual conditions.
Business Foundations Inc.
Fremantle based Business Foundations Inc. is a not-for-profit
provider of enterprise development services to the community of
Western Australia.
Their Strategic Vision and Mission is as follows:
Such an arrangement would be essentially cost neutral to
the City by way of the reduction in labour, administrative and
goods and services expenditure. It would also provide the RKCC
with some additional revenue streams in the short to medium
term to assist with their organisational growth and financial
sustainability. These contracts would be based upon the delivery
of specific services and be subject to performance measurement,
the City’s requirements from time to time and the quality of
service delivered.
Opportunities also exist for the Chamber to partner with Tourism
Rockingham in conducting revenue raising events.
The very successful “Business Leadership Breakfasts” are
examples of the type of activity that could be delivered by
the RKCC. The Chamber’s involvement could also assist in
improving patronage of this and other events. Investment
attraction seminars and promotional activities underpinning the
development of the Waterfront Village and City Centre could
also involve the Chamber.
It is not proposed to provide the RKCC with any grants for
ongoing operational expenditure. The City’s very successful
Community Grant Program provides opportunity for all
community, environmental and economic development
organisations to seek “one off” funding for discrete activities,
programs and events that meet the requirements of the
Community Grants Program Policy. The RKCC should avail itself
to this program to access grants from the City.
The City has been represented on the RKCC Board over the last
five years by the Manager of Economic Development. Given
the imminent review of that role and to better align with good
practice in terms of community representation, it is proposed to
change the representative to that of elected member.
• Vision - to improve the lives of Western Australians
by assisting the community to become more enterprising,
increase economic activity and ultimately assist in
creating employment
• Mission - to be known in the community as the primary
point of reference in providing information and assistance
to new and growing small business.
Business Foundations Inc. moved to Rockingham in October
2011 and essentially took over the operations of the now
defunct South Coast Business Development Office Inc. (SCBDO).
SCBDO ceased operations due to funding agency concerns over
poor governance and financial management, which eventually
resulted in the terminal withdrawal of State and Federal
Government funding.
Fortunately Business Foundations was able to retrieve the
situation by restoring funding streams and refocussing the
business incubation efforts in both Rockingham and Kwinana.
The City provides and maintains facilities at Crompton Road for
Business Foundations, and channels funding for discrete economic
development events via the Community Grants Program.
The City does not have representation on the Business
Foundations Board, however a very sound relationship exists
between the executive of both organisations, which keeps
communication at effective levels and ensures that the City’s
best interests are served.
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Key Recommendation 7
• Explore outsourcing opportunities with the RKCC and
Business Foundations Inc. based upon normal contractual
commercial arrangements for small business support,
investment attraction events and other appropriate economic
development projects currently being undertaken in-house.
• Encourage the RKCC to explore joint revenue raising initiatives
and the conduct of community and tourism based events with
Tourism Rockingham.
• Request that the City amend representation on the RKCC
board from staff member to Councillor.
• Disband REDAC and thank and acknowledge the efforts of all
members.
• Continue to provide discrete project grant funding to the
RKCC and Business Foundations via the Community Grants
program.
Tourism
In 2012 the City engaged consultants to develop a strategy
for Tourism in Rockingham. The draft strategy developed some
broad aspirations for tourism development and undertook
market research and data analysis of levels of activity at the time.
The document did not make specific recommendations on the
methodology, resourcing or prioritisation of these aspirations and
it was therefore decided to incorporate their consideration and
execution as part of this strategy.
The recommended aspirations were as follows:
• position Rockingham Foreshore as a leading example of the
innovative use of urban coastal strip and have it recognised as a
major Western Australian tourist destination in its own right
• build on Rockingham’s brand and recognised strengths as
a place where its unique natural environment and coastline
attract visitors
• actively seek investment in tourism infrastructure, including
short stay accommodation on an ongoing basis
• have a coordinated approach to destination marketing and
visitor servicing by partnering with others to maximise impact
• ensure accessibility is quick, affordable and efficient when
travelling to and within Rockingham
• ensure that planning and zoning strategies, policies and plans
recognise tourism as a major influence in Rockingham
• actively seek to position Rockingham as a location noted for
the variety of its events year round
• actively pursue and encourage the development of new
attractions in the Rockingham region
• ensure the City of Rockingham is responsive to the
requirements of a developing tourism industry
• ensure tourism in Rockingham is acknowledged by the
business sector and the community as a vital contributor to
the City’s economic and social fabric.
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City of Rockingham Economic Development Strategy 2014 – 2017
The following excerpts from the draft strategy’s executive summary provide a useful synopsis of tourism in Rockingham:
Rockingham is commonly viewed as a day trip destination by
many people residing in the Perth Metropolitan region, but
has never progressed to become a true overnight tourism
destination. There have been a number of reasons for this
but a significant barrier has been the lack of quality tourist
accommodation to cater for overnight visitors, which in turn
rises to interstate and international visitors as the reputation of
the area grows. This lack of quality accommodation has had a
negative effect on related areas such as staging major events
and attracting the conference market. However, Rockingham’s
strengths are in its natural environment, coast and beaches,
which cater for water sports and diving, as well as providing the
backdrop for its iconic tourist attraction, Penguin Island.
The lack of suitable hotel accommodation has also meant that
Rockingham has been unable to maximise the potential of
business tourism, which it is ideally placed to do with the naval
base at Garden Island and the Kwinana industrial strip in close
proximity. The attraction of hotel accommodation is and should
remain the number one priority of the City in order to attract
business and leisure tourism.
Much debate has occurred concerning the attractiveness of the
various foreshores in the Perth metropolitan area. Cottesloe,
Rockingham and Scarborough all have their supporters; but
how does Rockingham compare with well-known foreshores in
Victoria, New South Wales and Queensland? Evidence suggests
not favourably. While Rockingham Foreshore has standard
picnic areas, BBQ’s, shade, toilets etc, it has a “well-worn” feel
doing little to portray it as a tourism destination, and indeed
it is not recognised as such. Many East Coast foreshores make
use of public art, coastal pools, adaptable space and vibrancy
supported by good quality businesses offering a high level of
service. One of the aspirations of this strategy is to make the
Rockingham foreshore a tourist destination in its own right with
its own brand and personality leading it to be viewed as the best
urban foreshore in metropolitan Perth.
Rockingham is unique in Western Australia in that it has a
naval base at one end and a major industrial strip at the other,
two entities which should create demand for short term
accommodation. With the added potential to build on the day
trip market creating a short-break market, it is only a matter
of time until a hotel development is secured for the area.
However the City needs to continue to be proactive in attracting
investment and should work closely with the state government
to identify potential crown land sites for future short-term
accommodation development.
The low recognition of Rockingham in its primary target market
(metropolitan Perth) is a direct result of a lack of a coordinated
approach to destination marketing. Currently any marketing
is seen as the responsibility of the Visitor Centre and seems to
be undertaken on an ad hoc basis with no annual planning
or formulation of a specific budget. In order to be effective
destination marketing must be targeted, consistent and promote
the unique selling points of an area. Without a well-considered
and coordinated approach Rockingham will fail to positively
impact visitor numbers.
Visitation from and exposure to the interstate and international
markets are currently restricted primarily to the visiting friends
and relatives (VFR) sector and those attracted to the naturebased experiences of swimming with dolphins and visiting
Penguin Island. Both present opportunities for greater impact.
Additionally, access to Rockingham by car from the Kwinana
Freeway is poor, with cars required to exit the freeway either
north or south of the City. The proposed Mundijong Road
extensions will make a big impact, however it is essential
that appropriate signage be installed and that Rockingham is
promoted along the Freeway through the use of billboards.
Moreover, while the train has assisted Rockingham residents
reach central Perth there is no evidence to suggest that it has
assisted Rockingham to attract more tourists.
The summary highlights some common themes; a lack of suitable tourism accommodation, the uniqueness of the Rockingham
Foreshore, the proximity of HMAS Stirling and the Western Trade Coast and the significance of Kulija (Mundijong) Road as
Rockingham’s principal entry statement.
The summary also highlights the poor demarcation of tourism marketing efforts and the important role of the Visitors Centre.
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City of Rockingham Economic Development Strategy 2014 – 2017
STATISTICAL ANALYSIS
The following data from the Western Australian Tourism Commission provides an excellent
comparative measurement of overnight tourism activity within the City.
Rockingham Visitors Summary
3 year average ends 2012
3 year average ends 2010
%Variation
100,400
59,700
68%
15,300
13,700
12%
Estimated Visitors
Domestic
International
Accommodation
Domestic
Home of Friend or Relative
68,300
48,300
41%
Hotel, resort, unit or caravan park
10,300
11,400
-10%
11,400
11,400
0%
1000
2300
-57%
51,700
38,000
36%
Holiday or Leisure
22,700
22,000
3%
Business
10,300
6700
54%
6000
4000
50%
10,400
11,100
-6%
3400
3500
-3%
900
400
125%
1,100
700
57%
International
Home of Friend or Relative
Hotel, resort, unit or caravan park
Purpose of Visit
Domestic
Visiting Friends and Relatives
Other
International
Visiting Friends and Relatives
Holiday or Leisure
Business
Other
The data clearly provides that the majority of visitation to the
City is visiting friends and relatives (VFR). The data also provides
that there has been no real growth in overnight leisure tourism
in the last two years.
Business tourism has increased significantly albeit from a
relatively small base. Given that highest and best yield is derived
from Holiday and Leisure and Business visitors staying overnight,
the City clearly is not maximising its economic potential as a tourism
destination. It follows that any resources the City applies to Tourism
must be seen to either maintain or increase economic yield.
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The following table demonstrates the difference between day visitors and overnight stayers.
WA – YE September 2013
Domestic intrastate daytrip
visitors Average daytrip spend
Holiday or leisure
$105
Domestic overnight visitors
Average nightly spend
International visitors
Average nightly spend
$152
$75
Visiting friends and relatives (VFR)
$67
$90
$62
Business
$78
$133
$130
$101
$126
$83
Total
“Spend” is essentially what visitors spend when they visit
Rockingham. Accommodation, food and beverage, retail and
tourism product (e.g. “Swim with the Dolphins”) all attract
revenue for local businesses.
It must be emphasised that this direct expenditure goes further
than the profits of the business owner. Employee wages and
expenditure on goods and services from local suppliers, (and
their employees and local suppliers and so on), add considerable
value to the local economy.
A business traveller who stays in a hotel in Rockingham spends
money on accommodation, food and beverage, entertainment
and retail. That same business traveller staying in Fremantle or
the Perth CBD will spend little or nothing in Rockingham.
A leisure traveller staying in a hotel in Rockingham will have a
slightly different spending profile but will still spend far more in
Rockingham as opposed to staying outside of the City area and
being a daily visitor.
Obviously visiting, friends and relatives staying at a resident’s
house have a lower spending profile.
The challenge for the City therefore is to facilitate an increase
in economic yield from tourism by getting leisure and business
tourists to stay for at least one night. The establishment of
a hotel in Rockingham will obviously go a long way towards
addressing the issue.
The need for a major hotel is certainly no reflection on existing
accommodation offerings in the City. We enjoy a range of very high
quality bed and breakfast establishments, short stay self-contained
units and small scale hotel/motels. These facilities do a good job in
servicing established clientele, but have nowhere near the excess
capacity or mode of operation to establish and grow what would
be a virtually new business and leisure tourism market.
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City of Rockingham Economic Development Strategy 2014 – 2017
ATTRACTING A MAJOR HOTEL BRAND TO ROCKINGHAM
In attracting a hotel, the City should be very clear on what it is targeting.
For the purposes of this strategy the following criteria all
contribute to a facility that will genuinely attract and retain both
leisure and business tourists:
• a well-known “brand” with several existing major capital
City locations
• a customer loyalty program with links to Qantas Frequent
Flyer and/or Virgin Velocity Rewards
• established networks with major travel agents (i.e. Flight
Centre/Harvey World)
• established relationships with tourism industry wholesalers
and marketers
• established links with on-line booking portals (i.e. Expedia/
Wotif/Lastminute)
• central reception/welcome area
• in-house food and beverage facilities and room service
• business/meeting facilities
• at least 150 rooms.
New hotels are extremely difficult to bring to fruition. The
financial risks involved are significant and generally not borne by
the hotel operator. Developers and investors must be prepared
to make long-term multi-million dollar financial commitments
that are reliant upon a hotel operator operating profitably and
sustainably for the life of the project.
Major lending institutions have historically been reluctant to lend
for hotel developments so finance must generally be internally
generated by private investors and equity participants. Some
major chains providing mainly self-contained apartment facilities
have had some success in deriving funds from strata - title
arrangements with individual buyers, who in some cases obtain
limited occupancy rights.
It follows that any business case to justify the significant financial
risks in establishing a hotel must be incredibly robust and realistic.
The development of new hotels in the Perth CBD over the last
decade has been driven by business tourism fuelled by the very
high levels of resource sector activity. This investment was very
definitely not driven by leisure tourism activity. Indeed without
business tourism, and relying solely on leisure travellers, there
may well have been a decline in the number of major hotel
establishments in Perth.
The City’s strategy to attract a hotel should therefore also be
based upon business tourism.
Notwithstanding the attractiveness and uniqueness of
Rockingham Beach Road, Churchill and Bell Parks, the north
facing beach and the plans to significantly upgrade the foreshore
area, these features and initiatives will count for nought unless a
strong business case is developed that can demonstrate significant
latent long term demand for business tourism.
The City contains major attractors for the growth of the business
tourism market. HMAS Stirling, the Western Trade Coast and
Rockingham Shopping Centre would all receive reasonable
levels of interstate, and to a lesser degree, international business
visitation. Anecdotally, it seems that the majority of these visitors
elect to stay either in Fremantle, Perth or Mandurah.
In order to commence the investment attraction process, it
is proposed to engage expert tourism/development industry
consultants to prepare a business case for the development of a
hotel in Rockingham. The business case should be developed in
the same manner and using the same industry return rates and
risk profiles as a hotel operator, investor or developer would in
collecting the data and undertaking the analysis necessary to
make an investment decision.
If the business case demonstrated a genuine and financially
attractive proposition for investment, then the document
would be promoted with key operators within the hotel/
development industry.
If it became clear from the exercise that the business case was
either unsustainable or financially marginal, then the City should
not apply any more resources to the exercise and defer any
action on this issue for at least two years.
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Key Recommendation 8
• Engage expert tourism/property development industry consultants to undertake the development of a business case for the
establishment of a major hotel in the Waterfront Village Precinct based upon the latent demand for business tourism visitation.
• Should the business case demonstrate a potentially feasible project then undertake a targeted investment attraction campaign to
relevant industry stakeholders.
Events
The City currently conducts two major community events
being the New Year’s Eve and Australia Day Celebrations both
conducted on the Rockingham Beach Foreshore. Both events,
facilitated by the City’s Community Development Division,
are extremely popular and have a very strong target market
of families and children. The New Year’s Eve event has grown
considerably in popularity since the decision was made to ban
alcohol consumption.
The annual net cost of delivering these events is $169,000.
The City is fortunate to enjoy the support of government and
corporate sponsors which generally account for about 12% of
the total cost. It is estimated that the events are attended by
approximately 25,000 people.
In past years, two other ‘major’ events have been conducted.
The “Spring Festival” was delivered by the Rockingham Kwinana
Chamber of Commerce and the “Musselfest” by Tourism
Rockingham. Both events were extremely popular with locals
and anecdotal advice suggests that there was a small leisure
tourism visitation component. Generally however, the majority
of patrons to both of these events were local residents with
some visitation from adjoining Local Government areas.
The City had historically provided quite significant funding to
both events. In recent years funding was channelled through the
Community Grants Program and before that via direct budget
line item.
Australia Day Celebrations
New Year’s Eve Celebrations
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City of Rockingham Economic Development Strategy 2014 – 2017
Funding for the last five years of the event was as follows:
Spring Festival
Musselfest
2008/2009
$16,000
$15,000
2009/2010
$16,000
$20,000
2010/2011
$15,000
$20,000
2011/2012
N/A
$20,000
Both events are now defunct. An ever diminishing number of
dedicated volunteers, rising costs driven by a need to engage
professional events coordinators and increasing difficulties
in obtaining sponsorship essentially made these events
unsustainable.
Many other community events are organised by local community
groups with some receiving grant monies via the Community
Grants Fund.
There was also some question as to the actual economic yield
coming from tourism visitation for these events given the
predominance of patronage by local residents.
Some examples of recent successful events funded by the City are:
Event
Convenor
Grant
Baldivis Country Fair
Baldivis Primary School P&C Association
$ 5555
Rockingham Community Fair
Secret Harbour Residents’ Association
Regional Business Awards
Rockingham Kwinana Chamber of Commerce
$ 3850
Cockburn Regatta
Cruising Yacht Club
$ 6700
National Soccer Championships
Rockingham City Football Club
This ‘capacity building’ approach of empowering and enabling
community groups to deliver events is very successful. These
events deliver outstanding benefits. They provide residents
with the opportunity to engage with other people in the
neighbourhood, engender a great spirit of community and sense
of place and of course entertain, amuse and enlighten.
In early 2012 a “market validation and feasibility study” was
undertaken with the objective of determining the viability of
conducting a major tourism event in Rockingham. The study did
not conclude that an event would be viable in financial terms,
however recommended that an annual budget of between
$100,000 and $200,000 (excluding staff costs), be allocated as
$12,550
$11,000
leverage for Eventscorp funding in order to attract a “major”
event. Total annual cost with labour and overheads is estimated
to be in the vicinity of $400,000 per annum.
Discussions with Eventscorp at the time concluded that there
were no major event opportunities forthcoming in the short
to medium term. Because of this lack of opportunity and the
anticipated annual cost, it was decided to defer consideration of
the matter until the development of this strategy.
Examples of major “Tourism” events are the Mandurah Crabfest
and the Busselton Ironman.
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The annual net cost (excluding staffing costs) and staffing requirements of these events are:
Net Cost
Staff FTE
Grants/Sponsorship
Busselton Ironman
$200,000
140 hours
$ 17,500
Mandurah Crabfest
$628,000
4
$150,000
Both Local Governments are the event organisers and as such
bear all corporate and financial risk. This risk and expenditure
is offset by the significant economic yield that is delivered by
way of leisure tourists and event participants staying in local
accommodation, and purchasing food and beverage, retail,
tourism product etc.
Busselton accommodation houses, normally struggling for
occupancy at that time of year flourish as a result of the
event. This significant economic yield is therefore a reasonable
justification for the expenditure and corporate commitment
made by the City of Busselton.
The City of Rockingham has a very different tourism scenario
based around day visitors, visiting friends and relatives and a
demonstrated lack of short stay accommodation. If the City
was to attract an “Eventscorp” type of event then the City’s
economic yield would be constrained by a lack of suitable
accommodation.
Realistically it would be unlikely that a major event would be
willing to locate in Rockingham, given the logistical problems
that organisers would face in transporting participants, officials
and spectators to and from their accommodation in Perth,
Fremantle or Mandurah.
Once again the need for a major hotel emerges. It is suggested
that any significant resource allocation for a “major tourism
event” be deferred until such time as the City has a much better
understanding of the likelihood or otherwise of a major hotel
coming to Rockingham.
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Key Recommendation 9
• Continue to grow and improve the New Year’s Eve
and Australia Day Events given their wide community
support and acceptance.
• Encourage and promote the delivery of community
events by local not-for-profit organisations by way
of funding through the Community Grants Program
Visitor Servicing
The Rockingham Visitors Centre is operated by Tourism
Rockingham Inc. and is situated in City owned premises in the
Garry Holland Centre, Kent Street Rockingham in the Waterfront
Village Precinct.
Tourism Rockingham Inc. has three different contractual
relationships with the City:
• a nominal rental lease
• a fee for service contract for $70,000 per annum to deliver
visitor servicing on behalf of the City
• a fee for service contract for the facilities management of the
rentable (hireable) space of the GHCC for $125,000 per year.
The Centre is competently managed and has full-time staff of
three overseen by a Board of volunteers, mostly involved in the
local tourism industry. The City is represented on the Board by
an elected member and staff member. It is proposed to reduce
this membership to elected member. City staff enjoy an excellent
working relationship with the Centre Manager Mr Scott Hewitt,
and will continue their close liaison on operational matters.
Revenue streams are generated by accommodation and product
booking commissions, memberships, retail sales and facilities
management and visitor servicing contracts with the City.
and our normal club support and ongoing community
capacity building initiatives.
Defer the allocation of resources for a major tourism
“Eventscorp” type of event until such time as the
feasibility or otherwise of a major hotel being located
in Rockingham is better understood.
Product booking commissions, and a significant non-grant
revenue stream for visitors centres, have been marginalised in
recent times by the rapid development of web based products,
delivered via home computers, tablets and smartphones. A vast
majority of travellers now use applications such as Wotif and
Expedia to buy their tourism product such as “Swimming with
the Dolphins” and book and pay on-line either direct with the
company involved, or through a variety of web based portals.
There is no doubt that accurate and timely visitor information
is important, not only in heightening the visitor experience,
but also in maximising economic yield from tourism. As the
Waterfront Village develops and visitation increases, visitor
servicing activities will become even more critical. A wellmanaged and customer focussed visitors centre is an important
element of the overall development objectives of the area.
Commissions and memberships revenue is unlikely to grow and
therefore the sustainability of Tourism Rockingham will rely in
part on the revenue generated from their contracts with the City.
As with all other local economic development stakeholders
the Community Grant Program is available to assist in discrete
project funding.
Opportunities may also exist for Tourism Rockingham and the
RKCC to collaborate on revenue raising activities and events.
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Key Recommendation 10
Review the current agreement between the City and Tourism Rockingham Inc. with the objective
of continuing the fee for service relationship for the delivery of visitor information services.
Encourage Tourism Rockingham to explore joint revenue raising
activities and the conduct of community and tourism events
with Rockingham Kwinana Chamber of Commerce and continue
to provide discrete project grant funding to Tourism Rockingham
via the Community Grants Program.
Request that the City amend representation on the
Tourism Rockingham Inc. Board from staff member and
Councillor to Councillor.
Key Elements
6.2.1 Foreshore Redevelopment
Implementation Action
Estimated Cost Estimated staff
days to complete
Responsible Deadline
Rockingham Foreshore Masterplan
$ 350,000
6 months
MIA/MPS/MSP
December 2014
Rockingham Foreshore Redevelopment
$ 7.5 M
2-3 Years
MCP/MPS
June 2017
6.2.2 Investment Attraction
Implementation Action
Estimated Cost Estimated staff
days to complete
Responsible Deadline
City Centre Marketing Plan
$25,000
3 Months
MIA
June 2015
Waterfront Village Marketing Plan
$25,000
3 Months
MIA
June 2016
Dixon Road Marketing Plan
$10,000
3 months
MIA
December 2015
Business Tourism Hotel Feasibility
$50,000
3 months
MIA
June 2016
Deadline
6.2.3 Small Business Leadership
Implementation Action
Estimated Cost Estimated staff
days to complete
Responsible
Business Leadership Forums
$35,000
3 per annum
MIA
Business Communications Forums
$35,000
3 per annum
MIA
Disband REDAC
MIA
Encourage partnerships between Tourism
Rockingham and RKCC
MIA
6.2.4 Tourism and Events
Implementation Action
Estimated Cost Estimated staff
days to complete
Review contract with Tourism Rockingham
3 Months
Encourage and promote Community Events
via CGP
Ongoing
Explore Business Improvement District
Concept for Rockingham Foreshore Traders
$10,000
3 Months
Responsible Deadline
MIA
December 2014
MIA
June 2015
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7. Implementation
Year 1: 2014/2015
Implementation Action
Estimated Cost
Represented in which Team Plan?
or in Asset Management Plan
or in Infrastructure Plan?
Rockingham Foreshore Masterplan
$350,000
Parks Services
BID Concept
$10,000
Investment Attraction
Leadership Information Forums
$70,000
Investment Attraction
City Centre Marketing Plan
$25,000
Investment Attraction
Implementation of Marketing Plan
$35,000
Investment Attraction
Implementation Action
Estimated Cost
Represented in which Team Plan?
or in Asset Management Plan
or in Infrastructure Plan?
Rockingham Foreshore Redevelopment
$3.75 M
Infrastructure Plan
Waterfront Village Marketing Plan
$25,000
Infrastructure Plan
Dixon Road Marketing Plan
$10,000
Infrastructure Plan
Implementation of Marketing Plan
$75,000
Investment Attraction
Leadership Information Forums
$70,000
Investment Attraction
Business Tourism Hotel Feasibility
$50,000
Investment Attraction
Implementation Action
Estimated Cost
Represented in which Team Plan?
or in Asset Management Plan
or in Infrastructure Plan?
Rockingham Foreshore Redevelopment
$3.75 M
Infrastructure Plan
Leadership Information Forums
$70,000
Investment Attraction
Implementation of Marketing Plan
$75,000
Investment Attraction
Year 2: 2015/2016
Year 3: 2016/2017
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8. References
I
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
Jones S. et al (2009) “A Generic Approach to Conceptualising Economic Development in Australian Local Government”,
Journal of Economic and Social Policy; Vol. 13: Issue 1, Article 8
Bingham, R.D. & Mier, R. (1993) “Theories of Economic Development; Perspectives from Across Disciplines” Sage, London
Bachelor (1994) “Regime Maintenance, Solution Sets and Urban Economic Development” Urban Affairs Quarterly,
29,4,596-616
Jones et al (2009) “A Generic Approach to Conceptualising Economic Development in Australian Local Government”,
Journal of Economic and Social Policy; Vol. 13: Issue 1, Article 8
Douglas J, et al (2009) “Local Government and Local Economic Development in Australia: An Iterative Process”, Just Policy,
Vol. 50 pp 54-60
Porter M.E. (1985) “Competitive Advantage”, Free Press, New York
Prahalad, C.K. and Hamel, G. (1990) “The Core Competence of the Corporation”, Harvard Business Review (v. 68, no. 3)
pp. 79–91
WA Planning Commission (2010) “Directions 2031 and Beyond, Metropolitan Planning Beyond the Horizon”
Government of Western Australia
Hawke A. & Smith R. (2012) “Australian Defence Force Posture Review”, Australian Government
Department of Defence (2012), “ Defence White Paper “ Australian Government
Margetts et al (2010), “Rockingham Strategic Regional Centre Plan” City of Rockingham
Sandford M (2013), “Business Improvement Districts” House of Commons Library, U.K. Parliament and Constitution Centre.
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