Inside this issue

Advertisement

We are well positioned to help you recognise opportunities in the Oil and Gas Industry.

The Territory Tourism Experience

Tourists go to different places to satisfy their personal needs. They go to Bali to lie on the beach or ‘shop till they drop’. They travel to Monaco to dress in their finery and try their luck at the gaming tables. In New York they flock to Broadway to catch the latest ‘hot ticket’ show, and in Singapore they arrive eager to sample the fine cuisine. But last year, 1,162,000 visitors landed in the Northern Territory and it was not to sunbake on the beach or queue up for a theatre ticket. They came to experience the majesty of the landscape and the oldest surviving culture on earth.

The Territory landscape is varied and spectacular. People travel across the globe to stand next to the world’s greatest monolith, Uluru, or as it was known since European colonisation, Ayers Rock. They come to Kakadu National Park in the Top End of the Territory to take a boat ride on Yellow Waters where they are more than likely to encounter a massive saltwater crocodile. Or they visit Alice Springs—the desert capital—and buy a painting by an Indigenous artist that looks more contemporary than a Jackson Pollack.

Visitors choose the Northern Territory to experience something new and adventurous. Something that touches them in a place tourism usually does not. They may strike out on a dusty track at sunrise that takes them to a high desert outlook where the view is simply awe inspiring. Or they venture out on a Territory river with rod and reel in an effort to catch the famous barramundi —the species of fishing legend. They might spend a day gathering bush tucker with Aboriginal people, in the same way Indigenous Australians have done for millennia.

While natural wonders like Uluru or Katherine Gorge are world class destinations, the Territory is not the last frontier when it comes to tourism amenities. The region has much to offer in the way of accommodation to match every budget. After visiting Kakadu National Park, visitors stop in Darwin. There they take the time to relax in the comfort of five star hotels, or, for the budget traveller, a wide range of backpacker lodges. There are distinctive bed and breakfast homestays for more personalised accommodation.

Darwin has become a tourism destination in its own right. The Territory capital has a distinctive relaxed atmosphere all its own, featuring friendly outdoor cafés plus a wide range of attractions. See giant crocodiles up close and personal at Crocodylus Park or in the city centre at Crocosaurus Cove. Browse the city shops or grab a bargain at one of the city’s weekend markets. Take a sunset cruise on Darwin Harbour or dine on the Territory’s famous fresh seafood at a harbourside restaurant.

While Alice Springs may be the Territory’s second city, it is the unofficial capital of the sprawling central Australian region. Basking in arid zone sunshine, Alice gives travellers a chance to rest their weary feet after walking the trails that bisect the rugged West MacDonnell Range that borders the township. They stroll through the mall where Aboriginal art takes centre stage.

But Territory tourism is still a young industry with enormous potential for growth and development. Already the Territory’s largest employer, the industry provides 19,800 jobs or 17 per cent of total Territory employment. The job of enticing more visitors and therefore, creating more jobs in the industry falls to government body Tourism NT. It is their purpose to market and influence the development of the Northern Territory as a quality, experiential tourism destination for the continuing benefit of all Territorians.

Tourism NT works closely with the Territory’s two regional tourism organisations, Tourism Top End and Tourism Central Australia. They are charged with promoting destinations and attractions once travellers have arrived in the Territory, and helping facilitate increasing regional travel and extending their length of stay. And it appears to be working well.

A recent international visitor survey found that holiday travel to the Northern Territory remained steady but was better than the national average, with visitation increasing from the United States and new markets in Asia.

Advertisement

Territory Transport Vast Distances – Strong Infrastructure

Transport links are the lifeline to both social services and industry. With about 50 per cent of the Territory’s population living in the Darwin region, and 25 per cent living in remote and very remote communities, transport and communication are important to ensure access to essential services such as health and education. The transport of passengers and freight by road, rail, sea and air is also vital to major Territory industries like tourism and mining—major contributors to the growth of the Territory economy.

Reliable and appropriate transport and communication links are critical to the Northern Territory’s development, given the small size of the local market, and the relative isolation from major markets in Australia. In 2009–10, the transport sector accounted for $779 million or 4.6 per cent of gross state product, compared to 4.8 per cent nationally. Growth in the freight transport industry was experienced in 2009–10 as a result of a higher volume of goods being traded through the port and railway.

The transcontinental railway was completed in January 2004, establishing a rail link between Adelaide and Darwin. In late 2010, Genesee and Wyoming acquired the Tarcoola to Darwin line from Freight Link Pty Ltd, and today operates approximately 12 intermodal freight train services and 24 bulk train services per week. In 2009–10, total freight carried on the railway was 3.8 million tonnes (including bulk minerals), a 24.9 per cent increase from 2008–09.

The Port of Darwin is connected to the national rail network through the Adelaide to Darwin railway, which enables movement of goods including bulk minerals and liquids and live cattle exports. The port is also used by passenger cruise ships, naval, fishing and pearling vessels, and general freight operators.

Great Southern Rail operates the Ghan passenger train service between Adelaide and Darwin. The service consists of a twice weekly return trip from Adelaide to Darwin during peak season, with scheduled stops of several hours at Alice Springs and Katherine, where passengers can take the opportunity to experience the local attractions.

The Port of Darwin is the Northern Territory’s major port and Australia’s closest port to the markets of South-East Asia. Currently, key exports from the Port of Darwin are bulk minerals and cattle.

Trade through the Port of Darwin increased by 21.3 per cent in 2009–10 to 4 577 532 tonnes, the fourth consecutive annual increase in trade volume. This was due to additional shipments of bulk iron ore, manganese and copper concentrates to China, container line services between China and Darwin, and livestock exports to South-East Asia.

Other significant ports in the Territory are mainly used by mining companies. These regional ports include Alyangula port, which is used by the Groote Eylandt Mining Company (GEMCO) to export manganese; the Port of Gove, which is mainly used by Rio Tinto Alcan to export bauxite and alumina; and Bing Bong Port at Borroloola, which is mainly used by the Xstrata Zinc Company to export mixed lead-zinc concentrate.

A regular shipping service between Darwin and China, operated by the Singapore-based Mariana Express, commenced in 2009. Capacity on the Darwin to China service was increased in early 2010 to cater for a 200 per cent increase in the company’s trade volume between Asia and Darwin.

Swires Shipping is another company running regular services to Asia, stopping in Dilli and Singapore.

In addition to using the regional port facilities for mining exports, more than 30 remote communities rely on shipping services using these ports for access to goods and consumables. Perkins Shipping provides integrated land and sea logistics services to remote communities and resource industry customers across the Top End, as well as providing a trans-shipment service through Singapore. In 2009, Perkins Shipping was sold to Toll Holdings, a large Australian-based transport and logistics operator looking to expand its Asian operations.

There are more than 36,000km of road in the Territory. The national highway network links the Territory to Queensland via the Barkly Highway, South Australia via the Stuart Highway, and Western Australia via the Victoria Highway. These major sealed roads provide the gateway to the Territory for interstate self-drive tourism, as well as the essential road transport connections between the Territory’s major centres. Interstate and regional road freight movements continue to increase.

Airports are critical infrastructure and play a key role in generating economic growth. Major airports with regular scheduled passenger services operated by commercial airlines are located in Darwin, Alice Springs, Yulara and Nhulunbuy. In 2009-10, the number of domestic passengers through Darwin Airport increased by 6.2 percent to 1,744,309, while international passenger traffic increased by 11.3 per cent to 395,633 flights. The number of passengers through Alice Springs Airport also increased, with domestic passenger travel rising by 0.8 per cent to 680,958. These increases were driven by higher capacity and price discounting that saw passenger numbers boosted by several special offer periods.

Seat capacity on international flights from Darwin International Airport increased significantly in 2008 with the introduction of the Jetstar hub providing services from Darwin to Singapore, Bali, Manila and Japan. A host of smaller regional airlines including Airnorth (providing services to Timor Leste), Vincent Aviation and Hardy Aviation provide services to remote communities, regional centres and charter services.

Further additions to the Darwin airline network include full service Silk Air commencing flights between Singapore and Darwin, with connections from across the world through the Star Alliance. Virgin Australia offers full service flights between Sydney and Darwin. To accommodate expected growth, Darwin Airport has commenced work on its expansion on the passenger terminal including the construction of new business lounges for both Qantas and Virgin Australia.

Transport activity is likely to strengthen, primarily driven by increasing volumes of exports from the mining sector. The seat capacity of flights to and from the Territory is expected to grow with the continued development of the Darwin-based Jetstar hub.

Priorities over the next five years include upgrading the Port of Darwin facilities and developing the Marine Supply Base to better service oil and gas supply ships in northern Australia; expanding the Darwin International Aviation Hub by developing increased regional, domestic and international airline links across the Territory; and the ongoing upgrading and maintenance of the major highway and road network.

“Transport activity is likely to strengthen in 2010, primarily driven by increasing volumes of exports from the mining sector.”