Lord Mayor’s Brisbane Economic Snapshot January 2013
KEY STATISTICS
BRISBANE - THE STATE OF PLAY Brisbane is back in business after the January 2013 weather event. The impact of the event on Brisbane’s economic growth outlook for 2013 is anticipated to be minimal, with the city expected to stay on track after delivering a strong performance in 2012.
Key economic indicators, including the recent release of the Australian State Accounts, demonstrate Brisbane’s strong prospects. Queensland maintained 4% Gross State Product growth between the 2010 -11 and 2011-12 financial years. This strong performance has lifted Queensland’s share of Australia’s Gross Domestic Product to 19.8%, an increase of 1.7% over this period.
For Brisbane, which accounts for almost half of the State’s economy, this suggests that the city is continuing to punch above its weight in the national economy.
This economic growth was supported by the increase in exports passing through Brisbane’s ports. The volume of exports increased by 25% on last year to reach 16 million tonnes, exceeding all annual growth figures in the last ten years. This in turn led to a 16% increase in export value to reach $13.6 billion in 2011-12. This shows that despite the high Australian dollar, export-related industries in Brisbane and surrounding regions are performing above expectations.
Employment in metropolitan Brisbane increased by 8,636 people over the 12 months to December 2012 bringing total employment to 1,075,400. This represents annual employment growth of 0.6%.
The value of commercial construction increased by 10% from 2011, reaching $2.04 billion in 2012. Continued growth is expected with new commercial developments including the 34 story ‘174 Ann Street’ and 37 story ‘480 Queen Street’ towers to commence construction in 2013.
Indicator / Region(annual data unless specified) / Brisbane LGA1 / Metropolitan Region2
Key Facts
a)Value of Brisbane’s Economy (June 2011) / N/A / $114 billion
b)Employment (Dec 2012) / 765,900 / 1,077,400
c)Unemployment Rate (Dec 2012) / 5.2% / 5.5%
d)Population (June 2011) / 1,089,743 / 2.082,696
Latest Release
e)International Visitor Expenditure / N/A / $1.5 billion
f)Value of Commercial Construction Growth / N/A / $1.95 billion
1Brisbane City Council Local Government Area
2Australian Bureau of Statistics Brisbane Statistical Division (BSD)
a)Brisbane City Council estimate
b,c,d,f) Australian Bureau of Staitistics
e)Department of Resourses, Energy & Tourism – Int’l Visitor’s Survey
g,h)Property Council of Australia
Table 1: Brisbane Economic Indicators
Census 2011 Update – Second Release
THE SECOND RELEASE OF CENSUS 2011 DATA,FOCUSING ON LABOUR FORCE AND MIGRATIONTRENDS IN METROPOLITAN BRISBANE, SUGGESTSTHAT BRISBANE IS EXPERIENCING STRONGECONOMIC GROWTH AND IS TRANSFORMING INTOA HIGHLY SKILLED, SERVICE-BASED ECONOMYFORCE AND MIGRATION
TRENDS IN METROPOLITAN BRISBANE, SUGGESTS
EMPLOYMENT GROWTH
The size of metropolitan Brisbane’s workforce at the time of the 2011 Census was estimated to be 1,004,949 people (see census undercount insert). The workforce grew by 12.2% between Census 2006 and 2011.THAT BRISBANE IS EXPERIENCING STRONG ECONOMIC GROWTH AND IS T
Figure 1: Employment in Metropolitan Brisbane
INDUSTRY PROFILE OF THE WORKFORCE
Census 2011 revealed strong growth in employment in the Mining and Professional Services industries for Brisbane. This relates to the growth in the resource sector and the associated businesses servicing it.
As shown in Figure 2, manufacturing employment declined in metropolitan Brisbane between Census 2006 and 2011. This reflects a long term trend as manufacturing businesses become more capital intensive and employ fewer people. The impact of the high Australian dollar has also constrained manufacturing exports.
CENSUS UNDERCOUNT
Census 2011 figures reflect an undercount of employment. This is because Census only reports a person’s ‘main’ job on Census night, thereby excluding part-time and contracting arrangements and fluctuations in employment over the year. Therefore, Census data presents a point-in-time perspective and is hence susceptible to any temporary fluctuations in thelabour market at the time of Census.
Figure 2: Change in Employed Persons, by Industry Metropolitan Brisbane, Census 2006-2011
OCCUPATION PROFILE OF THE WORKFORCE
As Figure 3 shows, between Census 2006 and 2011 there was a substantial increase in professional and managerial occupations in metropolitan Brisbane. Combined with the decline in employment growth in low skilled and labour intensive industries, these data indicate that Brisbane’s economy is shifting towards a highly skilled, service-based structure.
Figure 3: Change in Employed Persons, by Occupation Metropolitan Brisbane, Census 2006-2011
SKILLED MIGRATION
The Census data indicates that 23,000 overseas migrants arrived in metropolitan Brisbane in 2010. Around one third of these migrants (7600) self-identify as workers in a skilled occupation and around 60% (13,600) are not in the labour force. In order to meet Brisbane’s forecast increase of 443,000 additional jobs and the demand for professional and managerial occupations by 2031, the region must focus effort on attracting a higher proportion of skilled migrants.
BRISBANE’S GROWING VISITOR ECONOMY
BRISBANE’S POSITION AS AUSTRALIA’S NEW WORLDCITY HAS BEEN FURTHER STRENGTHENED BY THEGROWTH IN THE CITY’S BUSINESS AND TOURISTVISITOR ECONOMY.
BRISBANE CITY COUNCIL’S 2012-31 BRISBANEECONOMIC DEVELOPMENT PLAN PROMOTES THEATTRACTION OF MAJOR EVENTS AND CONVENTIONSTO THE CITY IN ORDER TO RAISE BRISBANE’S GLOBALREPUTATION AND ATTRACT VISITORS WHO INJECTEXPENDITURE INTO THE LOCAL ECONOMY.
BRISBANE’S VISITOR ECONOMY
Brisbane’s visitor economy is performing well, having recovered from the impacts of the global financial crisis on tourism in Australia between 2008 and 2010. Since then, Brisbane has achieved annual average visitor growth of 6.4%, which is the second highest growth rate of major Australian capital cities behind Perth (7.4%).
As Figure 1 shows, visitors’ total length of stay in Brisbane has increased since 2010 to reach 34 million nights in 2012, despite a slight decline in domestic nights this year. Figure 2 conveys a similar story, with total visitor expenditure increasing to $3.9 billion in 2012.
Importantly, international visitors’ expenditure and length of stay increased despite challenging global economic conditions and the high Australian dollar.
Figure 1: Visitor Nights in Metropolitan Brisbane 2008-2012
Figure 2: Visitor Expenditure in Metropolitan Brisbane 2008-2012
GLOBAL BUSINESS EVENTS AND CONVENTIONS
An important aspect of Brisbane’s visitor economy is the attraction of business delegates to high-profile business events and conventions in the city.
In 2011, business conventions contributed $212 million to Brisbane’s economy. As Table 1 shows, Brisbane recently hosted a range of international business conventions and is scheduled to hold some major upcoming events such as the G20 Summit in 2014. The summit is expected to attract over 7000 people and inject $50 million into the economy through demand for local suppliers and hotel accommodation.
Brisbane’s ability to attract major international conventions underlies its growing profile as a global hub for business activity and world-class knowledge institutions.
Table 1: Selected Major Business Conventions in BrisbaneConventions / Delegates Attracted / Economic Contribution*
Recently Held
34th International Geological Congress (Aug 2012) / 6012 delegates (from 112 countries) / $23.9 million
The IPOS 14th World Congress & 39th COSA Annual Scientific Meeting (November 2012 / 1271 delegates / $4.2 million
Mining 2012 Resources Convention (November 2012) / 1483 delegates (from 140 companies)
Upcoming
29th International Conference on Data Engineering (2013) / Expected 500 delegates / Expected $1.5 million
Developing Unconventional Gas Australia Conference / Expected 750 delegates / Expected 1.5 million
The International Conference for Tropical Medicine and Malaria / Expected 3000 delegates / Expected 9 million
IWA World Water Congress / Expected 5000 delegates / Expected 9.5 million
*Economic contribution is the total delegate expenditure on consumables and accommodation in the city during their stay
VISITOR INFRASTRUCTURE
Brisbane business’ anticipation of future growth in the visitor economy has seen significant hotel and conference investments take place across the city.
The Brisbane Convention and Exhibition Centre recently invested $140 million into expanding capacity, while the new $59 million Royal Convention and Exhibition Centre located at the RNA Showgrounds will open in March 2013. Brisbane City Hall’s refurbished auditorium will also come on line in 2013.
Major hotel developments are also underway to accommodate the expected inflow of business and tourist visitors (see ‘Business News’ section for more information).
BUSINESS NEWS
MURARRIE MANUFACTURER HIGHLIGHTS BRISBANE’S EXPORT POTENTIAL
Brisbane-based voltage switchgear manufacturer NOJA Power was recently crowned ‘Queensland Exporter of the Year’ at the 2012 Premier of Queensland’s Export Awards held in November.
Located in the industrial hub of Brisbane’s Australia TradeCoast precinct, NOJA exports to 70 countries and has won many awards acknowledging its innovative development of environmentally friendly switchgear technology. Growing to 80 employees, NOJA recently built a $7 million purpose-built facility to provide additional capacity for expansion.
The Australia TradeCoast precinct incorporates the world-class Port of Brisbane and Brisbane Airport facilities while housing many globally competitive and innovative export businesses.
COUNCIL LAUNCHES BRISBANE’S FIRST DIGITAL AUDIT
Download your copy of Brisbane’s first ever digital audit at
The audit, developed by the University of Queensland Business School in collaboration with Ernst and Young, reveals that Brisbane businesses are at an advancing stage in their adoption of digital applications, but that many could improve their productivity and competitiveness by adopting digital strategies.
The audit delivers on recommendations put forward by Brisbane’s business community and will contribute to the implementation of a digital strategy in 2013.
COUNCIL LAUNCHES DRAFT NEW CITY PLAN
In December 2012, Council released Brisbane’s draft new City Plan for public viewing and feedback. The plan will guide how land in the city can be used and developed. It will also facilitate planning around future infrastructure to support growth, and reduce regulatory red tape.
You can view the draft plan and submit feedback by visiting Council’s corporate website at and searching for ‘Brisbane’s draft new City Plan’.
MAJOR CANNON HILL DEVELOPMENT HAS COMMENCED CONSTRUCTION
The Lord Mayor recently attended the opening day of construction for the $600 million ‘East Village’ Cannon Hill development owned by the Anthony John Group. Billed as an ‘Emporium for the East’, the centre will accommodate 750 apartments serviced by 17,600 square metres of retail and commercial premises. Up to 70% of the serviced apartments have already been sold since January 2012. Construction is due to be completed by late 2013.
LORD MAYOR’S MULTICULTURAL ENTREPRENEUR OF THE YEAR
Nominations will open soon for the 2013 Lord Mayor’s Multicultural Entrepreneur of the year. If you would like to recognise an entrepreneur from a multicultural background who has made a significant contribution to Brisbane’s economy, find out more by contacting or calling 3403 6026.
HOTEL DEVELOPMENT IN BRISBANE SURGES
Council’s three year moratorium on infrastructure charges for four and five-star hotel developments, launched in 2011, has helped stimulate new hotel investments in Brisbane.
The Chifley at Lennons hotel on Queen Street has proposed a $35 million refurbishment to expand capacity to 300 rooms. Singaporean Silverneedle Group, who recently purchased the hotel for $57 million, stated that the upcoming G20 Summit in 2014 was a major incentive to invest in the establishment.
Other examples include the proposed Four Points by Sheraton development, which will be a 32 storey, 246- room hotel located on Mary Street, and a five-star hotel on 949 Ann Street, which will accommodate 150 rooms. Other refurbishments have been proposed by existing hotels such as the Hilton Brisbane, Stamford Plaza, Pullman and Mercure King George Square and the Watermark Hotel.
The information in this newsletter provides general information on the Brisbane economy, and is not intended to be relied upon for commercial decisions. While care is taken to ensure accuracy, Council disclaims all liability for any expenses, losses, damages or costs you might incur as a result of this content being inaccurate or incomplete.
For more information, visit or email . To make a business-related enquiry, call Council’s 24 hour Brisbane Business Hotline on 133 BNE (133 263)