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Arafura business


The opening ceremony to Darwin’s Arafura Games never fails to spark an enormous response from the crowd packed into TIO Stadium. The climax of the opening sees the athletes and officials from all the countries involved fi le into the stadium waving to the crowd under a sky-full of fireworks, relishing the opportunity to represent their country at this bi-yearly event. In 2007, over 4000 competitors and officials from 40 countries made their way to Darwin to participate in these games that focus on developing athletes moving towards achieving higher standards. Add to that 1700 Territory competitors and a thousand volunteers. Early indications show the 2009 Arafura Games promise the same sort of numbers, irrespective of the international economic downturn.

“Macau told us that they had nine different games to attend in 2009, they could fund attendance in only four games and, of the four games, they chose Arafura.” But attracting this many participants from Australia and across the region does not happen by chance. The moment those athletes from as far away as New Caledonia, Fiji or South Africa walk out on the stadium oval is the culmination of months of work by the Territory Government organisers, the Northern Territory Major Events Company. It is their job to market and deliver the games that offer competition in 27 sporting disciplines, many of which are regional favourites such as badminton, sepaktakraw, and this year, for the first time, darts and muaythai (Thai kick boxing).

Leading the marketing effort for Major Events is Sports Minister Karl Hampton, Geoff Totham, the games’ marketing manager and games general manager Tiffany Manzie, recently returned from the Heads of Delegation meeting in Macau. It was a pre-games meeting of countries who were member countries of the Arafura Games, and 14 out of 16 attended to plan for the games’ future. It drew presidents of Olympic Committees and senior public servants who run the sports programs in their respective countries.

The meeting gave the Territory organisers an opportunity to measure how many countries and teams would be attending this years games. The interest was intense. “Macau told us that they had nine different games to attend in 2009,” recalls Totham. “They could fund attendance in only four games and, of the four games, they chose Arafura.” Unlike most countries, Macau funds its athletes’ participation. Most other competitors pay for their own travel and accommodation in Darwin.

It is the developmental aspect of the Arafura Games that remains the event’s greatest marketing tool. Placed in a unique position among major sporting fixtures, Arafura does not attempt to compete with the South East Asian Games or the Pacific Games. It is focused on attracting two sorts of athletes: the emerging athletes who will use Arafura to go on to bigger things, and those who will not make their national sides but are rewarded for their hard work. “For Macau, it’s their chance to have their emerging people compete against emerging people in the region,” explains Totham. “Not only can they compete against teams from South East Asia, but they can compete against Australian and Pacific competitors.”

Over 4000 people visiting Darwin during the games means a bonus of millions of dollars injected into the Territory economy. Just accommodating that many people at the start of the busy tourist season is a daunting task that is contracted to an events specialist. That duty is undertaken by The Best Conference and Events Company, an events and conference coordinator, that has retained one full-time employee just to look after Arafura accommodation, with more help placed onboard as the event gets closer. “We contacted all the accommodation properties in Darwin last year,” reports Jill Morris, business development manager of The Best Conference and Events Company, “including everything from bed and breakfasts and caravan parks to hotels and motels, and that took us about three months to negotiate rates and conditions for every budget.”

Some of those accommodation providers are also Arafura sponsors. The event has involved a host of Darwin businesses as sponsors, many of which have taken on that role since the first games in 1991. While some sponsors provide cash, most offer in-kind sponsorship that the organisers would have to go out and buy if it were not sponsored. Accommodation houses provide rooms, Thrifty Rent-A-Car provides vehicles for the massive fleet required to move athletes to and from events, Coca Cola provides product to thirsty volunteers.

Major Events organisers are excited about this year’s event, running from 9 to 17 May, with new innovations in store. Sepaktakraw (think acrobatic foot volleyball), one of Arafura’s most popular events, will be taking place at the new Darwin Convention Centre, with 2009 seeing the arrival of muaythai to the games for first time. So overwhelming was the response to the Thai national sport that a cap has already been placed on participation. Thai boxing, as it is more affectionately known, is sure to draw the crowds with the backing and support from Fox 8 The Contender Asia host, IFMA General Secretary Stephan Fox, on board.

Totham says he has been encouraged by the level of interest Arafura has generated across the region, with athletes and official pulling out all stops to get to Darwin for the event. He says it’s time to look at how the games can best benefit all that participate. “The Arafura Games, as a product, is entering a maturing part of its cycle where it’s earned its stripes in the region,” he says. “And it’s time to consolidate that position and really understand what value it provides these visiting countries. It’s not about quantity of competitors. It’s about quality of competition.”

The Territory rides the international economy downturn


Figures from a variety of sources show that, while the Territory has felt the chill generated by the international economic downturn, it appears to be weathering the storm better than its southern counterparts. The latest Australian Bureau of Statistics figures show economic growth in the Territory is leading the nation with the Territory’s State Final Demand increasing 8.5 per cent in 2008, more than double the national average of 4.1 per cent.

The strong result in the Territory over this period was driven by strong growth in private sector investment, a rising population and high levels of consumer and business confidence. According to the Sensis Business Index, which charts business confidence, Territory business people are the nation’s most optimistic. With national business confidence flat at 12 per cent, the confidence indicator in the Territory has jumped 19 percentage points over the last three months to 43 per cent. Of the 150 Territory businesses surveyed, 60 per cent were confident about their business prospects for the next 12 months.

The Territory has not been immune from the effects of the world economic meltdown with job losses at the Territory Insurance Office and in the mining sector, but most of the Territory’s major mines remain in operation and are poised for expansion. ERA’s Ranger Mine has enjoyed record profits and is set for a $57 million expansion. Further investments include a $100 million expansion of the McArthur River Mine, a $167 million expansion of GEMCO’s Groote Eylandt project, and the $175 million development of Compass Resources’ Brown’s Oxide mine near Batchelor.

Exports increased by $2.02 billion (51 per cent) to $5.97 billion in 2009, mainly driven by higher mineral production, and Liquefied Natural Gas from ConocoPhillips' Darwin LNG plant. Imports also increased by $996 million (37.4 per cent) to $3.66 billion,driven by increased imports of petroleum based products and feedstock gas for Darwin LNG.

The ABS retail trade data shows Territorians spent $218 million in January 2009 – up 17.1 per cent on the previous January - and almost three times higher than the 5.9 per cent increase recorded nationally. That is due, in part, to the Territory’s increase in population, estimated at 2.34 per cent to 219 948. That’s the second highest growth figures in the country (tied with Queensland) but well above the national level of 1.71 per cent.

Access Economics, in its December 2008 Business Outlook publication, forecast the Territory’s Gross State Product would grow 2.0 per cent per annum for the five years to 2012–13, a 2.3 percentage point drop from previous forecasts. However, INPEX’s selection of Darwin as the site for its onshore gas processing facilities, servicing the Ichthys gas and condensate field, has not been factored into any revised forecasts for the NT.


The territory economy: fast facts

Economic growth


The Northern Territory Treasury’s 2008–09 Mid-Year Report forecasts economic growth to increase by 4.5% in 2008-09.

GSP

2004-05

2005-06

2006-07

2007-08e

2008-09f

% Change

5.6

6.5

5.2

3.9

4.5




  • In 2008 the Northern Territory’s State Final Demand, a measure of the demand for goods and services in the economy, increased by 8.5%, compared with a national average increase of 4.1%.

  • Total consumption rose by 2.4%, while total investment increased by 23.4% to a record level of $5.4 billion.

  • In 2008, inflation adjusted total construction work done increased by 25.8% to $2.52 billion.

  • In the year to January 2009, the number of residential building approvals in the Territory decreased by 33% to 906.

Employment


  • Employment in the Territory increased by 4.0% in the year to January 2009 to 112 734.

  • The trend unemployment rate was 4.2%.¹

  • The trend participation rate was 73.1%, the highest of the jurisdictions.

  • The ANZ Job Advertisement Series reports that the number of job vacancies in the Territory, in seasonally adjusted terms, decreased by 24.7% over the year to January 2009. Nationally they declined by 40.7%.

Population


  • As at 30 June 2008, the Northern Territory’s population was estimated to be 219 948.

  • The annual rate of increase was estimated to be 2.3%, above the national growth rate of 1.7%.

Inflation


  • In annual terms, Darwin’s CPI increased by 3.7% in the December quarter 2008. Nationally, the annual inflation rate was 3.7%.

Average weekly earnings


  • In the November quarter 2008, Average Weekly Earnings per full-time adult employee in the Territory increased by 4.7% to $1163.30 in annual terms, compared with a national average of $1216.80.

  • Over the same period, the Territory’s Wage Price Index rose by 4.8%, compared with 4.3% nationally.

International trade


  • In the year to January 2009, Northern Territory goods exports grew by 51.2% to a record level of $5,972 million.

  • Imports increased by 37.4% to $3660 million, giving a balance of trade surplus of $2312 million.

Retail trade


  • In 2008, inflation adjusted retail turnover increased by 8.7% in the Territory compared with a 1.8% increase nationally.

  • In the year to January 2009, total sales of new motor vehicles increased by 5.4% to 10528 in the Territory while decreasing by 5.5% at the national level.

1 Due to extreme volatility in monthly Territory labour force figures, the ABS does not publish seasonally adjusted data.

Stephen Garnett on the knowledge economy – Twitcher territory


To ordinary people the slightly grubby white bird in a puddle near Brinkin was unremarkable. To birdwatchers it was the first Australian record of a common Indonesian bird, the Javan pond heron. The sighting sent a ripple through chatrooms around the nation. Within 24 hours a small coterie of Australia’s most dedicated bird watchers had descended on Darwin from Brisbane, Sydney, Melbourne and Perth.

Most added the bird to their list of bird species that they have seen in Australia. They also stayed in hotels, hired cars, ate out. Some stayed longer, since they were here, and travelled around the Top End. Overall that one lost bird injected tens of thousands of dollars into the economy.

In fact Darwin is a first class place for birds, and gradually the tourism industry is starting to appreciate the value of this natural asset. Even the common birds are exotic to tourists from down south or overseas. Birds here are colourful, abundant and diverse - it is even possible to see 100 species before breakfast. Also, unlike in every other large town or city in Australia, all Darwin’s birds are native. Sometimes a flock of homing pigeons misbehaves but there are no sparrows, starlings or mynahs.

While for many years the most abundant birds - the magpie geese and other waterbirds - have featured as spectacles for the mass market, there is also a smaller but still valuable clientele seeking the Territory’s special species, often at premium rates.

A typical city tour will take in the Rufous Owls in the Botanic Gardens, Rainbow Pittas at East Point and Oriental Plovers at Nightcliff.”

To cater for that niche, a small group of bird guides is earning a living taking people to the best places.

Recently Birds Australia, the principal bird society in the country, ran an accreditation process for bird guides to be sure they knew what they were talking about. “Bird tourists are pretty discerning,” says Guy Dutson, who ran the course. “Quality guiding is one of the important prerequisites of a healthy bird tourism industry.”

Dutson, and his colleagues Steve Hughes and Toni Wythes, also ran a project funded by the Northern Territory Natural Resource Management Board to train Aboriginal guides in Arnhem Land. “The sandstone country has many of the Territory’s most distinctive birds,” explains Dutson. “Many birdwatchers also appreciate the cultural understanding of birds that the Aboriginal guides can share.”

The sandstone birds are also one of the attractions for those attending the annual bird weeks, this year at the Arnhemland Barramundi Nature Lodge at Maningrida, from 22 to 29 June, and in Kakadu from 10 to17 October. “Last year we saw nearly 200 species around Maningrida,” says one of the bird week experts, Charles Darwin University’s Richard Noske. “The week was an outstanding success and we expect to have no trouble filling the places on the trip.”

The week also enables the visitors to see cultural sites with the Bawinanga Aboriginal Rangers, among the most experienced of the ranger groups now operating across the Territory. “Specialist bird tourism can certainly add to the range of income sources for Aboriginal people living in remote areas,” says Noske. “There is also a remarkable knowledge of signifi can’t species among the old people.”

For those bird tourists who don’t have time to visit Arnhem Land, Darwin itself has extraordinary variety. “A typical city tour will take in the Rufous Owls in the Botanic Gardens, Rainbow Pittas at East Point and Oriental Plovers at Nightcliff,” says Dutson. Knuckey’s Lagoon, Lee Point and Buffalo Creek are also favoured birdwatching sites. So too, for those who have a permit from Power and Water Corporation, is Leanyer Sewage Ponds. “Leanyer is the only place in Australia known to be visited regularly by little Ringed Plovers,” says Dutson.

“Power and Water are to be congratulated for their policy of allowing controlled access to the area - in their own way they too are contributing to bird tourism in the Territory.” In other parts of the world bird tourism has become a major component of the local industry. There are famous birding routes where news on what has been seen is exchanged each night at hotels known to cater for birdwatchers, a plethora of guided tours and a network of links to the national birding community.

Darwin has started on this road. Next time a pond heron gets blown off course the tens of visitors may have grown to hundreds.

Paddock to plate by Sam McCue: in the pink


If ever there were a seafood popularity contest, it’s highly likely that prawns would win. Fancier than fish, easier to crack than a crab and more affordable than lofty lobster, prawns have a special place in many cuisines – from Goan prawn curry to Spanish paella to that retro Australian favourite, the prawn cocktail.

In Darwin, it’s become something of a Christmastime ritual to go down to the Duck Pond near Fisherman’s Wharf and buy a few kilos of prawns direct from the boat.

Louise Deacon-Casey and Ean Casey, who together have the only private family owned prawn fishing operation in Darwin, have been selling tiger and banana prawns off the back of their trawler, the Austral, at the end of the season for the past 15 years. The prawns are blast frozen at sea as soon as they’re caught and packed.

The Austral has plenty of regulars - and it’s the taste and quality that keep the customers coming back.

“There’s just no comparison with farmed prawns,” says Deacon-Casey, who grew up in the industry and has fishing “in the blood.” “Farmed prawns are totally different; they’re bland,” she says. “They’re only as good as what you feed them.”

By contrast, the wild-caught prawns come from an 800 000 square kilometre patch of sea known as the Northern Prawn Fishery. It extends from Cape York in Queensland to Cape Londonderry in Western Australia, between the low water mark and the outer edge of the Australian fishing zone. The fishery is regulated by the Australian Fisheries Management Authority (AFMA), an Australian Government body.

“We’d have to be the most heavily regulated fishery in Australia, if not the world,” says Casey. “There are 52 licences in the fishery, compared with 283 when I first started in 1983. It would be one of the healthiest fisheries.”

The management of the Northern Prawn Fishery, which relies heavily on feedback from the operators themselves, aims to ensure that the fishery is not overfished and that bycatch, particularly species such as turtles, is minimised - and it seems to be working.

“We don’t fish down to zero,” says Deacon-Casey. “We have our own protocols.”

And that’s good news for anyone who likes their prawns. Although Casey and Deacon-Casey have “rarely been to a restaurant and ordered prawns because we have a freezer full”, they recommend La Beach and the Hanuman as two Darwin restaurants that take their seafood seriously.

At the Hanuman, prawns feature in a range of Thai, Nonya and Indian dishes: hot and sour Thai tom yum soup; tandoori prawns; kapitan prawns in a rich curry sauce of coconut and spices; black pepper prawns with garlic, onion and fresh curry leaf; and the Hanuman prawns—wok tossed in a coconut wild ginger and curry sauce. There’s also the Hanuman Thai Prawn Salad (see recipe).

But if you want to keep it quick and easy, take a tip from Louise Deacon-Casey: “You can’t beat a nice prawn boiled in salt water.”

Simply delicious.

Hanuman Thai Prawn Salad


10 medium sized prawns

1 stalk of lemongrass, finely chopped (white part only)

1 kaffir lime leaf, finely sliced

5 cherry tomatoes, halved or quartered

¼ medium sized red onion, finely sliced

2 spring onions, sliced

6-8 Thai basil leaves

1 chilli, chopped

2 teaspoons chilli paste

2 teaspoons lime juice

2 teaspoons fish sauce

2 teaspoons white sugar


Method:

  • Boil prawns for two minutes or until just cooked.

  • Mix together thoroughly with chopped ingredients and sauces before serving.

Parting shots!


  • Manganese miner OM Holdings has demonstrated that the commodities sector is still alive and kicking by doubling its net profit to $115.6 million in the year to 31 December 2008.

The result was built on a 98 per cent increase in sales revenue to $574.1 million from $290.5 million in 2007 and reflected ‘exceptional contributions’ by OMH’s manganese mining, marketing and ferro-alloy business units.


OMH management said more than half of the sales were made during the second half of 2008 despite the suspension of product shipments during the fourth quarter because of the impact of the global financial crisis.



  • Territory Q science columnist Professor Stephen Garnett and his wife Dr Gabriel Crowley have been awarded this year’s D.L. Serventy Medal for research on birds. The medal is awarded annually for outstanding published work on birds in the Australasian region by Birds Australia.

Stephen Garnett is Director of the School for Environmental Research, Institute of Advanced Studies, at Charles Darwin University, and Gabriel Crowley is a project officer with the Tropical Savannas Management CRC.


The award states that: “partners in life and work, Stephen and Gay have made a significant, pivotal and unique contribution to the knowledge and conservation of Australian birds. This contribution has been through hands-on intensive research, through the compilation of systematic overviews of the conservation status of Australian birds, and through the development and maintenance of networks of ornithologists and others, nationally and internationally, with interest in the management of Australia’s threatened birds.”


Birds Australia Chief Officer Graeme Hamilton praised their work with glossy black cockatoos and golden shouldered parrots.



  • The largest commercial law firm in the Northern Territory is celebrating 50 years since its origins as a oneman business in 1959. Cridlands MB celebrated the fiftieth anniversary of its inception at a special function at the Darwin Convention Centre on 6 February, attended by more than 150 guests including its founding father George Cridland.

  • A partnership between Gumatj traditional owners from north-east Arnhem Land and Forestry Tasmania will support a new Indigenous timber industry in East Arnhem Land.

A Memorandum of Understanding was signed in Hobart between Forestry Tasmania’s Managing Director Bob Gordon, and Galarrwuy Yunupingu AM representing the Gumatj Corporation.


The Gumatj clan are Yolngu people and traditional owners of land on and around the Gove Peninsula in north-east Arnhem Land in the Northern Territory, including the Rio Tinto Alcan bauxite mine near Nhulunbuy.


Under the terms of the MOU, Forestry Tasmania will work with the Gumatj Corporation to develop a sustainable timber industry, based on selective harvesting and management of hardwood on the Gumatj clan estate and use of the timber for a range of associated industries.



Next Q: Territory Thunder …the business of going professional …June 09



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