the redevelopment of margaret river townsite: creating a...

The Redevelopment of Margaret River Townsite:

Creating a World Class Main Street Tourist Precinct

FINAL REPORT

Shire of Augusta-Margaret River

2011

Syme Marmion & Co The Redevelopment of Margaret River Townsite: Creating a World Class Main Street Tourist Precinct ii

Table of Contents

Margaret River --------------------------------------------------------------------------------------------------------------------------- 1

Population, Economy and Planning ----------------------------------------------------------------------------------------------- 1

Tourism Opportunities ---------------------------------------------------------------------------------------------------------------- 2

The Heavy Haulage Diversion Project--------------------------------------------------------------------------------------------- 4

Urban Design Response --------------------------------------------------------------------------------------------------------------- 5

Summary ---------------------------------------------------------------------------------------------------------------------------------- 6

Appendix 1 ------------------------------------------------------------------------------------------------------------------------------- 24

Background ------------------------------------------------------------------------------------------------------------------------------ 24

1.1 Project History-------------------------------------------------------------------------------------------------------------------- 25 1.2 The Heavy Haulage Diversion Road Proposal ---------------------------------------------------------------------------- 25 1.3 Policy Context -------------------------------------------------------------------------------------------------------------------- 26 1.4 Examples from Elsewhere ----------------------------------------------------------------------------------------------------- 26 1.5 Application to Margaret River ----------------------------------------------------------------------------------------------- 29

Appendix 2 ------------------------------------------------------------------------------------------------------------------------------- 30

Margaret River Population, Employment and Development ------------------------------------------------------------- 30

2.1 Resident Population ------------------------------------------------------------------------------------------------------------ 30 2.2 Projected Resident Population Growth ------------------------------------------------------------------------------------ 30 2.3 Employment ---------------------------------------------------------------------------------------------------------------------- 32 2.4 Retail -------------------------------------------------------------------------------------------------------------------------------- 34 2.5 Future Development ------------------------------------------------------------------------------------------------------------ 37

Appendix 3 ------------------------------------------------------------------------------------------------------------------------------- 39

Margaret River Tourism-------------------------------------------------------------------------------------------------------------- 39

3.1 Visitors to Margaret River----------------------------------------------------------------------------------------------------- 39 3.2 Purpose of Visit ------------------------------------------------------------------------------------------------------------------ 40 3.3 Length of Stay -------------------------------------------------------------------------------------------------------------------- 42 3.4 Visitor Accommodation -------------------------------------------------------------------------------------------------------- 43 3.5 Visitor Expenditure -------------------------------------------------------------------------------------------------------------- 44 3.6 The Future ------------------------------------------------------------------------------------------------------------------------- 45 3.7 Tourism and an Upgraded Town Centre ---------------------------------------------------------------------------------- 47

Appendix 4 ------------------------------------------------------------------------------------------------------------------------------- 51

The Margaret River Heavy Haulage Diversion Road ------------------------------------------------------------------------- 51

4.1 Highway Design and Problem Areas --------------------------------------------------------------------------------------- 53 4.2 Estimated Heavy Haulage Route Effect on Townsite Traffic --------------------------------------------------------- 54 4.3 Estimated Bypass Effect on Townsite Traffic ----------------------------------------------------------------------------- 55

Appendix 5 ------------------------------------------------------------------------------------------------------------------------------- 58

Previous Bypass Studies ------------------------------------------------------------------------------------------------------------- 58

Appendix 6 ------------------------------------------------------------------------------------------------------------------------------- 61

List of References ---------------------------------------------------------------------------------------------------------------------- 62

Syme Marmion & Co The Redevelopment of Margaret River Townsite: Creating a World Class Main Street Tourist Precinct 1

The Redevelopment of Margaret River

Townsite: Creating a World Class Main Street

Tourist Precinct

Margaret River Margaret River region is known domestically and internationally as a destination primarily for its wine, food, beaches, and landscape. It is a strong brand nationally and internationally for both the tourism and wine markets. This brand is important for both attracting tourists and supporting premium wine prices. However, there is a mismatch between the look and feel of the Margaret River town centre and the region’s otherwise premium brand image. The townsite is dissected by the Bussell Highway which is a designated high-wide load corridor carrying heavy and heavy haulage vehicles though the town centre. This creates safety risks and detracts from the town as a tourist destination. It does not allow for any of the landscape and streetscape works that are required to create an attractive and safe town centre – one that meets tourist expectations. A heavy haulage diversion route has been identified by the Shire of Augusta-Margaret River which is considered to be a high priority by government, tourism bodies, and the local community. Previous studies have shown that the removal of heavy vehicles through the town centre by using a town bypass could dramatically improve the town’s ambience as well as having a positive impact on the local economy, environment, and social aspects of the town. Currently, because of its state as a high-wide load corridor, it is not possible to substantially upgrade the Margaret River town centre. By re-routing heavy traffic away from the town’s main street, high quality streetscape and landscape treatments would become a feasible and desirable proposition – enabling the town to live up to its premium image and opening the door to increased tourism possibilities.

Population, Economy and Planning Resident population of Margaret River Townsite expected to more than double by 2031 Margaret River is a substantial centre with economic activity of State importance. The population in the Augusta-Margaret River Shire is currently around 12,500 with a transient population of around 4,400, giving a service population of approximately 16,900. The population continues to grow steadily, with the greatest increase predicted to be in the Margaret River Townsite. This is expected to grow from its 2006 resident population of 4,400 to around 12,000 to 13,000 by 2031 – an average annual growth rate of over 4%. Look and feel of the Margaret River Town Centre currently out of sync with the brand’s premium image The wine and tourism industries are overwhelmingly important to the economy of the area and of the State. These are the top two employers in the Shire and create employment in many of the other categories, for example transport and construction. The Town Centre has a role to play in fostering both of these industries; clearly by providing a better tourist experience, but also in supporting the wine industry. Indeed the two industries are irrevocably linked. Much of Margaret River labelled wine is marketed as a premium product commanding high prices throughout the world. If the image (and reality) of the local environment is consistent with the premium branding, the price levels will be supported, thus boosting the local economy. The town centre environment currently does not fit this image; an appropriately redeveloped town centre would.


A redeveloped town centre will result in increased town centre retail expenditure The thrust of the strategic planning as detailed in the Townsite Strategy and confirmed in the Local Planning Strategy is for the Town Centre to become the main retail location for the Shire. Therefore all future major retail developments will be focussed within the Margaret River Town Centre. This will create and reinforce the main street activity centre proposed for the stretch of Bussell Highway, between Higgins Street and Forest Road West. There is expected to be no trade reduction in the town centre as a result of the traffic bypass function of the heavy haulage diversion route. A redeveloped town centre will result in increased town centre retail expenditure: It will increase tourist expenditure in the town. From interstate visitors, this will represent a net benefit

to the state; from international visitors this will represent a net national benefit. It will reduce the retail expenditure leakage by local residents to centres outside of the region, with

consequent reductions in travel costs to those centres and consequent energy reductions and greenhouse gas reductions.

Almost one third of retail goods & services expenditure in the town is from visiting tourists It is estimated that tourists to the Margaret River wine region spend approximately $61 million per annum on retail goods and services, with international and interstate visitors each accounting for approximately $10 million (i.e. $20 million in total). Approximately one-third of this $61 million spend is in the Margaret River town centre. This means that $20 million of the retail expenditure in the town centre is visitor expenditure, which accounts for between 27% and 31% of all expenditure in the town centre. It is clearly central to the local economy. If this visitor expenditure were to increase by 20% as a result of improvements to the town centre arising from the heavy haulage diversion route, it would equate to an additional $4 million of retail expenditure in the town. This represents an additional 40 to 45 retail and services jobs. Demand for retail floor space in the Shire is expected to increase by around 35% over the next 15 years Demand for retail floor space in the Shire of Augusta-Margaret River is expected to increase from current levels of around 40,000m² to over 54,000m² by 2026. Existing retail floor space in Margaret River, according to the 2006 Commercial Land Use survey was over 13,000m². The majority of new development is expected to be centered in the townsite of Margaret River, which implies that demand for retail floor space in the townsite of Margaret River could double in this period. The town has a maximum capacity in excess of 100,000m² additional commercial floor space so there is ample opportunity to meet this demand. The heavy haulage diversion route is essential to economic growth in the area The bypass is required to provide access to key new industrial development areas. Without access development of the industrial zone will be delayed. With the current level of heavy vehicle activity through the town centre there is no incentive to upgrade the town centre streetscape. This impedes increased promotion of Margaret River town as a tourist destination.

Tourism Opportunities In WA Margaret River is the most visited region outside of the Perth area Tourism WA identifies the Margaret River Wine Region as the most visited region outside of the Perth area. It has around 9% of all interstate and international visitors to the State. Events are also attracting a growing number of visitors to the South West Region with the Margaret River Wine Region Festival, Telstra Drug


Aware Margaret River Pro surfing competition, SunSmart Busselton Festival of Triathlon, The West Australian Great WA Bike Ride, and Quit Forest Rally, as the major events. International and interstate tourism in the Shire of Augusta-Margaret is a very important element of the State’s overall tourist offering. While the majority of visitors to the region are from WA, the area has a high percentage of interstate and international tourists. It has almost twice the combined total of international and interstate visitors and visitor-nights than that of Busselton. There are on average 782,300 overnight visitors per year to the Margaret River Wine Region with an average length of stay of 3.6 nights. A decline in tourism could be expected in Margaret River if the industry is not constructively managed The tourism industry in Margaret River is well established, but its future is not assured without active management. It is considered to be in a mature phase on the Tourism Area Lifecycle (Tourism WA 2010) and has reached a point where decline could be the next step. Tourism is a hotly competitive industry and the prospect of a high Australian dollar for some time to come means that Australian tourist destinations must work particularly hard to retain business. The next most likely step on the lifecycle, without an effort to rejuvenate the area, would be decline. The construction of the heavy haulage freight route as an enabling project for the redevelopment of the town centre is recognised as a main initiative to support the tourist industry in many recent government documents, including: The South West Action Statement (SWDC 2010; The Capes Regional Economic Development Strategy (2009); and Australia’s South West Tourism Development Priorities (Tourism WA 2010). The Town of Margaret River itself is just as much an attraction as the surrounding wineries, beaches, and parks. It is also the primary location for tourists to choose their accommodation when visiting attractions throughout the Shire and immediate surrounding areas, and therefore the town centre plays an important role in the holiday experience. For maximum visitor satisfaction, town amenities and retail outlets need to reflect the destination image and visitor expectations. Currently the Margaret River town centre does not live up to the image of the Margaret River brand. An upgrade of the town centre is impeded by the current streetscape which was designed for and is constantly used by heavy vehicles. Construction of the heavy haulage diversion route would enable an upgrade project for the town centre to be addressed. There are ample opportunities to increase tourism to both the area and the town There is potential to extend the length of stay in the region for all visitor categories and particularly for

interstate and intrastate visitors, who have relatively shorter stays than those visiting Busselton. Day-trippers are an important aspect of Margaret River tourism. There is opportunity to extend the day-

trip experience to include more time in the Town of Margaret River and to convert day-trippers to overnight stays.

The data indicates considerable seasonality, with an opportunity to increase occupancy in winter months. Margaret River Township has a significant bearing on the ability to achieve this. Visitors equally value the activities and tourism experiences that take place within the Town Site as those external such as beaches and wineries. The proposed heavy haulage diversion route and redesign of the streetscape will enable increased winter promotion of Margaret River.

Margaret River has substantially fewer tourist and short-stay accommodation units than Busselton. There is opportunity for additional town-centred tourist accommodation as part of a redeveloped town centre. This would expand the overall tourist offering for Margaret River to include town-based tourism, including greater use of attractions and walk-trails that are easily accessible from the town.


An upgrade to the town centre could result in an increase in expenditure of more than 11% over current levels An upgrade to the town centre could provide out-of-season town amenity and activity, and is likely to increase the length of stay and to increase visitor numbers, particularly during winter months. Total expenditure by visitors could be expected to increase from $240 million to approximately $267 million per annum as a result of the town centre upgrade project. This would result from a combination of additional tourist accommodation built in the town and increasing occupancy. The development of the town centre is therefore expected to add $27 million per annum or 11.25% to the base 2009/10 visitor expenditure, generating up to 205 jobs directly and 103 jobs indirectly. Approximately 19.5% of this additional expenditure, or over $5 million annually, is from international visitors. To the extent that these visitors spend additional time in the country or the State than they otherwise would have as a result of the Town upgrade, represents a net national or state benefit. It is likely that the majority of the jobs generated directly would be located within the Shire of Augusta Margaret River, with a large proportion of the indirect jobs being generated in the South West area generally and in the Perth metropolitan area.

The Heavy Haulage Diversion Project Margaret River is located on the Bussell Highway which runs from Bunbury through to Augusta in the south. Wallcliffe Road joins the Bussell Highway at the centre of Margaret River, and is used by traffic travelling from Prevelly and Gnarabup on the coast, as well as traffic from Caves Road. The town is not directly serviced by rail or aviation services, although two coach companies provide daily services, and it has easy self-drive access. The result is high levels of traffic on highways and roads and through the Town Site. There are estimated to be approximately 260 heavy and heavy haulage vehicles passing through the town centre daily impacting on safety This figure can be expected to increase along with increased development in the area. The Bussell Highway is a designated high-wide load corridor where vehicles up to 4.5 metres wide can travel without a permit and vehicles with high and wider loads are allowed with a permit. Many of the vehicles which currently pass through the town centre are in the heavy haulage category. Heavy loads result in very heavy road wear, damage and constant severe deterioration, particularly on the relatively steep up-hill slope through the town centre up to Wallcliffe Road. Current safety concerns will increase over time. Trucks with heavy loads are difficult to control on the steep central section of the road and almost impossible to stop in an emergency. It is likely that traffic accidents will increase on the main street, with potentially serious outcomes if a heavy vehicle is involved. The current section of the Bussell Highway through the Margaret River Townsite is in poor condition in places and in need of reconstruction. However, the heavy vehicle use means that this would include a major base reconstruction costing up to $1.5 million. Modelling indicates the heavy haulage diversion route would take 3,500 – 4,100 vehicles per day There are likely to be three main components to this traffic: Vehicles by-passing the town centre; Vehicles accessing the new industrial estate planned south of Rosabrook Road and accessed form the

bypass road; and Vehicles accessing new development areas of the town. By decreasing the flow of traffic through the town centre the way will be paved to redesign the main street and create a much higher level of pedestrian amenity. Suggested urban design improvements are centred on sub-precincts with themes of ‘art in place’, ‘water’, ‘trees’, and ‘people’ (See pages 7-18). These


improvements would provide the opportunity for the Town Centre to live up to the quality ‘brand’ of the Margaret River region and become a must-visit destination. The bypass is estimated to result in direct time benefits to commercial vehicle operators By reducing the time taken to bypass the town, there will be a resulting reduction in costs for transport operators. There will also be environmental benefits which will be of wider value to the community These include reductions in greenhouse gas emissions, air and noise pollution and road trauma. These benefits will be increased by the configuration of the new road, with constant speed and few intersections, compared with the existing need to travel through the town centre in town traffic and stop-start conditions. The heavy haulage diversion route is essential to economic growth in the area It is of particular importance to the growth of the service and logistics base of the economy as the location of the industrial land zone means that it will not be developed until the heavy haulage road has commenced. The road is required to provide access to key new development areas, in particular the industrial estate east of the heavy haulage diversion route and to the south of Rosa Brook Road; general development areas; and, through access to John Archibald Drive, to give better access to the East Margaret River Structure Plan area and particularly the planned commercial area. The need for more industrial land at Margaret River was identified in the Townsite Strategy and reinforced in the draft South West Industrial Land Strategy (Department of Planning/LandCorp). The existing Margaret River service commercial zone is at capacity and there is a current need for additional land, particularly to serve the logistics and servicing requirements of the wine industry.

Urban Design Response The implications of having no alternative route for approximately 260 heavy vehicles each day includes no alfresco dining; no pedestrian islands; restricted and dangerous pedestrian crossing; inability to close the road for community events; poor paving quality; and severely restricted landscape. Operators have indicated that once traffic is able to bypass the Town Centre, they will be able to upgrade their facilities and include more alfresco areas. Other issues identified by local organisations and business owners are lack of parking and easy parking access; insufficient signage; a need for public art; and a desire for a grand entry statement. Other improvements that would enhance the town as a tourist destination include access to walk trails; creation of a museum and a focus on historical features; and an increase of current town activities. The construction of a heavy-haulage deviation road around the Margaret River town site, and the subsequent removal of the requirement for the Bussell Highway through the town centre to function as a route for wide and heavy loads, means there would be a great deal of freedom to redesign the street and create a much higher level of pedestrian amenity. The improvement to the Bussell Highway through the town centre would provide the much-needed opportunity for the Town Centre to live up to the quality ‘brand’ of the Margaret River region, and raise the perceived quality of the town centre precinct from a utilitarian farm town to a must-visit destination. The suggested urban design improvements that could be undertaken are structured around a series of precincts and themes, which together form a sequence of experiences that lead people to, and through, the heart of the town centre. These precincts are identified in the precinct veplan on Pages 13, and elaborated on in pages 14-22.


The precincts consist of: The River precinct at the northern end of the town which is characterised by an emphasis on landscape

both in the street reserve and the adjacent setback areas. This would provide a gentle transition from the bushland setting of the river to the more urban environment of the town centre. This treatmnent also provides an appropriate and sympathetic setting for the older remnant bulding stock in the adjacent part of town that formed the original settlent area.

The Festival precinct, which is characterised by a narrower carriageway, decorative paving and shade

structures. This would provide a very high level of pedestrian amenity and would signal to drivers that this is a slow, pedestrian-rich place. The festive character of the precinct would be enhanced by imaginative lighting and street art that help to celebrate the life of the town.

The Hilltop precint, which is characterised by a landscaped median with regularly spaced trees. These would lead the eye forward to the town centre core, as well as creating a transition between the central festival precinct and the civic ‘boulevard’ experience of Reuters Park and Wallcliffe Road.

Within the precincts, there is a recurring set of themes that are drawn from a suggested suite of general design principles. These themes are: Art in place – inspired by the creative and culturally rich-community of the Margaret River region. Water – inspired both by the Margaret River itself, and the underground stream that runs under the

Bussell Highway to the river. Trees – reflecting the most visually dominant element of the landscape in and around the town. Light - giving a whole new experience to extend the life of the town after dark. People – ultimately, the whole reason for the town’s existence. The intent of these themes are illustrated vsually on pages 9 to 13. The dominance of these themes varies depending on the precinct. For example, the themes of water and trees would clearly dominate in the River precinct, whereas the themes of people and art in place would naturally dominate in the Festival precinct. The images on pages 9 through to 23 suggest, through a series of typical street plans, cross sections, perspective sketches, and examples from other places around the world, how the above themes could be integrated to establish a distinctive identity for each of the sub-precincts along the Bussell Highway in the Margaret River town centre.

Summary In summary the effects of an upgraded Margaret River town centre made possible by the heavy haulage diversion road are expected to include: Increased tourist activity, with longer tourist stays in the area and consequently higher tourism

expenditure generally; Support for marketing and image of the Margaret River brand – applicable to both the tourist and wine

industries; Increased retail trade activity, with reduced leakage to other areas and higher tourist retail expenditure; Accessibility to expansion areas of the town, in particular the proposed industrial area; and Traffic and transport benefits, including:


Greatly improved road safety (pedestrians and vehicles) in the town centre; Reduction in travel times for commercial vehicles with consequent improved productivity; and Reduced road wear and tear.


Appendix 1

Background Margaret River is located within the South West Region of Western Australia situated on the Bussell Highway, 291 kilometres south of Perth. It is the largest urban centre within the Shire of Augusta-Margaret River. The Shire covers an area of 2,370 square kilometres, including 30 kilometres of coastline. The Old Coast Road and the South Western Highway link Perth to Margaret River, making the Shire easily accessible from Perth for weekends. The Shire is well known for its wineries, beaches and surfing, and is a popular tourist destination both nationally and internationally. The Shire of Augusta-Margaret River had an estimated resident population of 11,830 as at June 2008 with 6,000 in the Town of Margaret River. It is estimated that by 2031, the population in the Shire will have grown to 19,000 with a town population of around 12,000. In addition to permanent residents, Margaret River is visited by over 550,000 tourists each year from within Australia and internationally. It is estimated that in 2006, 13,600 vehicles passed through Margaret River on the Bussell Highway on an average weekday and by 2031, Main Roads WA (2007) expect this to increase to 25,900 vehicles. As the Highway is a designated high-wide load corridor and heavy vehicle route, large trucks constantly pass through the centre of the Margaret River Town Site, creating safety issues and conflicting with the image of Margaret River as a tourist destination. A heavy haulage diversion route is therefore planned to bypass through-traffic away from the CBD. A substantial redevelopment of the town centre, particularly the main street, is essential to support the tourist Industry and align the town with the strong Margaret River tourist and wine brand. Not to do so risks a decline in both. This town centre redevelopment will only be made possible if the proposed Margaret River heavy haulage diversion route eventuates. This report examines the effect that this road will have on the local economy and community as a whole; current and forecast traffic levels including the nature of trips; tourism profiles including expenditure and length of stay; current and forecast population growth; local demographics; heavy haulage diversion route and town centre upgrade timing; and the streetscape enhancement requirements to fully capitalise on the benefits of the heavy haulage diversion route. Figure 1: The South of Western Australia Source: West Coast Visitors Guide


1.1 Project History The South West began as a forestry and agricultural region in the 1870s. Together with wine making, these sectors remain sole elements of its economic base, but in recent years it has grown in popularity as a tourist destination. By the 1980’s, Margaret River was identified as a premier destination for its wine, food and beaches, and was attracting visitors from throughout Australia and internationally. As a result of the growing concerns regarding the level of passing traffic through Margaret River, The Shire of Augusta-Margaret River in conjunction with Department of Planning (DoP), WA Planning Commission (WAPC), South West Development Commission (SWDC), Regional Development Australia (RDA), Main Roads, Tourism WA, and the WA Tourist Commission, have all been involved in the investigation and planning of a heavy haulage diversion route that will bypass the Margaret River Township to enable a significant upgrade of the town centre. A bypass of the Margaret River Township is seen as a means to significantly reduce traffic safety risks and will result in improved CBD ambience, accessibility, health and wellbeing, and enjoyment by residents and visitors to the Region. In particular, removal of the high-wide load designation through the town centre will enable significant improvements in townscape and landscape to be made. From a planning perspective, the WAPC sees the heavy haulage diversion route as a boundary of the Margaret River Townsite, with the urban land located within the road and priority agricultural land on the outside of the road. As the population of Margaret River is expected to at least double in the next 20 years and due to an increased focus on tourism with continually increasing visitor numbers, the pressure on the current route will only intensify.

1.2 The Heavy Haulage Diversion Road Proposal Figure 2: Proposed Heavy Haulage Diversion Road

Source: Shire of Augusta-Margaret River


Through a series of consultations and planning between 1996 and 2008, a proposed route was established and adopted by Council and the WA Planning Commission. Figure 2 shows the proposed route around the Town Site. It is estimated that project construction will cost $25 to $30 million, with additional costs for land assembly.

1.3 Policy Context The significance of Margaret River as a tourist destination and the role of the heavy haulage route has been identified by a number of different bodies. The Shire of Augusta-Margaret River has played an integral role in the identification and planning of the proposed heavy haulage diversion route with the objective of enabling significant improvements in the town centre. The need for the bypass road was identified as an outcome of the Margaret River Enquiry-by-Design (EBD) workshop in 2002, and the WAPC endorsed East Margaret River Structure Plan (including Commercial Centres Strategy) 2005 that evolved as a result of the EBD. The 2008 Margaret River Townsite Strategy and the Shire’s Local Planning Strategy, both reflect urban design and transport considerations associated with the future heavy haulage diversion route. The South West Action Statement (SWDC 2010) identifies major projects in in the South West Region that will not only benefit local communities but are believed to be able to contribute to the development of the Region as a whole and ultimately, to the State and national objectives. The Margaret River heavy haulage diversion route is included in that report due to the main street being the main freight route for agriculture and logs from the south, as well as one of the busiest pedestrian streets. The current situation is a serious safety concern and is impacting on the town’s ability to reach its full potential as an international tourism destination. The Capes Regional Economic Development Strategy (2009) recognises the part tourism plays in the South West economy and the subsequent generation of employment. The mission of the South West Development Commission (SWDC) is “To develop the region’s economy and enhance those qualities which make the South West the best place in which to live, work and invest”. Included in their Strategic Plan 2010-2015 (SWDC 2010) under the strategic priority of ‘Urban Renewal’, the Margaret River heavy haulage diversion route is listed as a priority project to be completed between 2010 and 2015. Between 2015 and 2020, it is envisioned that traffic volumes through the town will have reduced, allowing the CBD to have a more tourism focused character. Australia’s South West Tourism Development Priorities (Tourism WA 2010) estimates that the tourism industry in WA directly and indirectly, contributes over $7.3 billion to the WA economy. It is therefore essential that investment is made in developing, promoting and refreshing tourist destinations to reinforce its brand promise. This report identifies the Margaret River heavy haulage diversion route a ‘very high’ priority and as an essential project due to heavy traffic raising safety issues and conflicting with the region’s holiday feel. The South-West Framework (WAPC 2009) reiterates the tourism significance of Margaret River as one of the key destinations in the South West Region.

1.4 Examples from Elsewhere A substantial number of Australia towns have been bypassed, are in the process of constructing a bypass, or have been identified as requiring a town bypass. Examples include: - Hume Highway – Tarcutta Bypass - Hume Highway – Euroa Bypass - Hume Highway – Woomargama Bypass - Hume Highway – Seymour Bypass


- Dilston Bypass – East Tamar Highway - Pacific Highway – Kempsey Bypass - Great Western Highway – Leura Bypass - Goulburn Valley Highway – Nagambie Bypass - Pacific Highway – Ballina Bypass - Goulburn Valley Highway – Shepparton Bypass - D'Aguilar Highway – Kilcoy Bypass A variety of reasons exist regarding the importance of the bypass for each town, however a summary for those provided for the list above include: safety; reduced travel time; reduced travel costs for road users; improved town traffic conditions; greater freight transport efficiency; improved town amenity; reduction in traffic noise for residents; road improvements to benefit cyclists; removal of most heavy vehicles from town centre; improved pedestrian safety; easier and safer access for residents and visitors to the township; uninterrupted highway traffic flow; to cater for long term traffic growth; and to relieve congestion. The literature review and case studies summarised in Appendix 5 provide research and examples of towns that have been impacted by the construction of an alternative town bypass. The majority of studies focused on towns that were heavily reliant on traffic-serving business (petrol stations, food outlets, and accommodation) and were bypassed due to highway upgrades rather than for the purpose of reducing traffic through the town centre. Business owners and communities therefore expected negative economic and social impacts as a result of the bypass. A limited number of bypass studies have been conducted in Australia and the majority of the studies outlined in Appendix 5 have not assessed the impacts on a community in a town that has initiated a bypass route; they do however give an indication of what Margaret River could expect following the construction of a heavy haulage diversion route. The results of these studies show that, depending on the circumstances, a bypass can provide both benefits and shortfalls to a town, in the short, medium and long-term after the bypass is constructed. These implications can be divided into two categories: economic and social. A summary of the impacts outlined in the various studies are shown in Table 1.


Table 1: Effects of a Perimeter Bypass Economic Social

Advantages Increase in number of local businesses with

corresponding increase in local employment Local business expansion and sales growth Increase in tourism Reduced transport costs resulting in reduced

prices to consumers, increased sales and increased profits to industry

New business opportunities along bypass Promotion of local economic development Economic benefits during construction phase e.g.

employment; retail Opportunity to grow new customer base

Disadvantages Loss of trade on old route from passing traffic Loss of business, employment, and work hours as

a result of trade reductions Large expenses incurred due to required changes

to streetscape to suit altered purpose e.g. parking and speed limits

Cost of construction of new bypass road or alteration of existing road for bypass suitability

Relocation of businesses Loss of customer base

Advantages Reduced local traffic congestion Traffic noise and vibration reduction Reduction in heavy vehicle traffic from central

areas Improved town ambience Improved traffic safety both locally and on main

highway Health improvements due to less exposure to

emissions and hazardous materials Increase in resident exercise Reduced travel time both on bypass route and

for local traffic Main street improvements including parking and

pedestrian access Population increases lead to improved services

and community development Reduction in vehicle related accidents on bypass

route as well as in the town centre

Disadvantages Increased traffic noise and vibrations in

alternate areas Reduction in ambience in sites surrounded by

bypass route

A study conducted by the Bureau of Transport and Communications Economics (1994), examined the regional development effects of infrastructure investment (highway upgrade including town bypasses) to determine if resultant economic growth benefits are adequately captured in conventional benefit-cost analyses. The study took place in the towns of Berrima and Mittagong which are located in NSW on a major highway between Sydney and Melbourne with large volumes of inter-city travellers. Both towns were bypassed due to Hume Highway upgrades in 1989 and 1992. The study found that the town of Berrima had an estimated increase in gross sales of 7.1% and an increase in employment of 1.7%, four years after the bypass was built. The nearby town of Mittagong had suffered an estimated decline in sales of 5.9% and decline in employment of 2.9%. Business owners however predicted an improvement in gross sales and employment beyond 1995, and the following table shows the population growth of Berrima and Mittagong, approximately 20 years from the time of the bypass to the 2006 Census. Table 2: Population Growth in Berrima and Mittagong

Town Population

1986 2006 Change

Berrima 655 766 16.9%

Mittagong 4,240 6,298 48.5% Source: Australian Bureau of Statistics

The Southern Highlands of NSW tourism website makes the following comments with regards to the impact of the bypass on the towns of Berrima and Mittagong respectively.


“Diversion of the highway to bypass the town has allowed for improvement of the streetscapes and the proliferation of more "trendy" tourist oriented businesses - cafes, restaurants, boutiques, accommodation, art and antique galleries.” and “Finally, the construction of the freeway bypass (1992) has allowed the village to return to a more tranquil and beautiful setting, and countless thousands of cars and trucks no longer rumble through its streets as in the days of its position on the main southern highway.” Helaakoski et al. (cited in Babcock & Davalos 2003) found that the economic effects of bypasses in small cities differed and that some experienced positive economic impacts whereas others had a negative effect. The conclusion by the authors was that the state of the economy prior was enhanced by the bypass and therefore declining economies were negatively affected and growing economics flourished as a result. Karuah, located 200 kilometres north of Sydney on the Pacific Highway, was bypassed in 2004 to reduce bottlenecks on the Highway resulting from increased traffic. A report by Phibbs, Heidrich and Cooney (2009) measured the effects of the bypass five years after it was opened. Prior to opening it was feared that negative economic and social effects would result from the bypass construction as the town had relied on highway traffic since the late 1950’s. It was found that both negative and positive effects had been experienced including a shortfall in economic activity that needed to be addressed, and an opportunity to transform the town into a tourist destination. 90% of residents considered the long-term effects to be positive and that overall safety and amenity had been improved. Council were however criticised for their lack of communication regarding strategies for improving the economic situation. A 1990 study on small Texas towns between 1955 and 1984 by Buffington and Burke (cited in Babcock & Davalos 2003) found that statistically, bypasses, loops and radial highways had a significantly positive effect on local economic activity.

1.5 Application to Margaret River The literature gives confidence that the effect of the bypass at Margaret River will be positive rather than negative. It will enable a substantial upgrade of the town centre to take place, substantially increasing its attractiveness to local residents and visitors alike. In summary the expected effects include: Increased tourist activity, with longer tourist stays in the area and consequently higher tourism

expenditure generally; Support for marketing and image of the Margaret River brand – applicable to both the tourist and wine

industries; Increased retail trade activity, with reduced leakage to other areas and higher tourist retail expenditure; Traffic and transport benefits, including:

Greatly improved road safety (pedestrians and vehicles) in the town centre; Reduction in travel times for commercial vehicles with consequent improved productivity; and Reduced road wear and tear; and

Accessibility to expansion areas of the town, in particular the proposed industrial area.


Appendix 2

Margaret River Population, Employment and Development

2.1 Resident Population The estimated resident population of the Augusta-Margaret River local government area as at June 2008 was 11,830. This was an increase of 222 or 1.9% over the estimate as at June 2007. Over the five year period 2003-2008, the average annual growth rate (AAGR) of the population was 2.1%. As a comparison, the entire South West Region had an AAGR of 3.3% over 2003-2008 and the Perth Metro area grew by 2.2% per annum, indicating the Shire of Augusta-Margaret River has recently experienced a lower rate of population growth than the surrounding region, but is in line with the Perth Metro. Preliminary estimated resident population (ERP) for the Shire of Augusta-Margaret River at 30 June 2010 is 12,509

1.

The Shire’s Local Planning Strategy estimates that there was an additional transient population of 4,437 in 2006, giving a total service population at that time of 14,789. Assuming the transient population is approximately the same in 2010, this would give a service population in the Shire at June 2010 of approximately 16,900.

2.2 Projected Resident Population Growth The main population projection tool used by the Western Australian government is WA Tomorrow (Western Australian Planning Commission 2005). The ABS has also released statistical local area population projections that were developed for the Department of Health and Aging. The following chart shows both sets of population projections for Augusta-Margaret River LGA along with the estimated resident population (ERP) for the period 1996-2008. Figure 3: Population Projections – Augusta-Margaret River LGA

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Augusta-Margaret River ERP Augusta-Margaret River WAT

Augusta-Margaret River ABS Trend Based on ERP


These projections indicate that the WA Tomorrow (WAT) data gives a slightly higher level of growth, with approximately 1,200 more people expected by 2027 than under the ABS projections. The ABS data appears to provide a good level of fit when compared with historical population growth. This data indicates that the region will have approximately 19,000 residents by 2031. This translates to a population increase of 7,000, or 60%, over the estimated 2008 population. When considering the level of growth likely to be experienced in Margaret River Town Site, it should be noted that projections decrease in accuracy as the size of the geographic region decreases and data is generally not provided for areas smaller than local government area. If it is assumed that the Margaret River Town Site will have the same proportion of the overall shire population in 2031 as at present, this would indicate a population in the town of approximately 8,000. However, this is likely to be an under estimate of growth as the concentration of services and facilities in the town should mean this area grows at a faster rate than the overall Shire population. This effect can be seen in Table 3 which compares the Town Site and Shire proportions from the 2001 and 2006 Census. Table 3: Percentage of LGA Population in Margaret River

2001 2006

Margaret River 3,629 4,415

Augusta-Margaret River 9,820 10,352 Percentage 37% 43%

Source: Augusta-Margaret River Townsite Strategy, 2008

In 2001, the town accounted for 37% of the Shire population while in 2006 the equivalent figure was 43%. If this trend continues, the population of the town would account for over 60% of the Shire population and number approximately 12,000 people by 2031. If the population did grow to 8,000, this would imply an average of 150 people per year moving to the town while a population of 12,000 would imply an additional 300 people per year. The Shire’s Local Planning Strategy provides for an ultimate Town population of around 16,000 people. The population distribution of Margaret River’s resident population is shown in the following map. The population numbers (shown in the white boxes) are based on collection districts (CD) which are spatial regions the ABS uses to organise the census. The data indicates that the CD with the largest population (921 people) is located to the east of the Bussell Highway and slightly south of the town centre. The map indicates the central position of the Town’s main street on Bussell Highway immediately to the north of Forrest Road.


Figure 4: Population Distribution as at 2006 - Margaret River Town Site

Source: ABS (2006) – Census of Population and Housing

2.3 Employment As at the 2006 Census, there were 8,186 people aged 15 and over who indicated that their normal place of residence was the Shire of Augusta-Margaret River. Of these, 5181 (63%) were employed in some capacity, 165 (2%) were unemployed and looking for work, 2,244 (27%) were not in the labour force and no information was available for the remaining 596 people. As a comparison in the South West statistical division, which takes in the region from Mandurah to Walpole, 55% of the population (aged 15 and over) were employed, 2.5% unemployed and 35% not in the labour force. It is also notable that approximately 40% of Augusta-Margaret River residents who indicated they were employed worked in a part time capacity while the equivalent figure for the South West as a whole was 34%. This indicates that while overall workforce participation is high in the Shire, it is associated with a high level of part time employment. 90% of Shire’s residents who were employed worked in private enterprise, 7% worked for the state government, 2% for local government and 1% federal government. Of the 2,244 residents in the Shire of Augusta-Margaret River who indicated they were not in the work force, 42% were aged 65+ and were therefore likely to be retired. The equivalent proportion for the South West division was similar - 45% aged 65+. The main industries of employment for Augusta-Margaret River are shown in the following table.


Table 4: Main Industries of Employment – Shire of Augusta-Margaret River

Industry Number of People

Employed % of Working

Population Cumulative %

Beverage Manufacturing (Wine Making) 407 8.1% 8.1%

Accommodation 321 6.4% 14.4%

School Education 246 4.9% 19.3%

Fruit and Tree Nut Growing (Grape Growing) 245 4.9% 24.1%

Cafes, Restaurants and Takeaway Food Services 215 4.3% 28.4%

Supermarket and Grocery Stores 155 3.1% 31.5%

Residential Building Construction 154 3.0% 34.5%

Sheep, Beef Cattle and Grain Farming 150 3.0% 37.5%

Building Completion Services 130 2.6% 40.1%

Specialised Food Retailing 119 2.4% 42.4%

Building Installation Services 109 2.2% 44.6%

Dairy Cattle Farming 105 2.1% 46.6%

Local Government Administration 101 2.0% 48.6%

Real Estate Services 95 1.9% 50.5%

Source: ABS (2006) Census of Population and Housing These 14 industries employ 50% of the workforce in the region. The data indicates the importance of the wine industry and tourism to employment in the region, with high levels of employment in beverage manufacturing, accommodation and cafes/restaurants. Approximately 1,200 people who were resident in the Shire of Augusta-Margaret River on the date of the Census and who were employed in some capacity indicated they lived elsewhere in Australia or overseas on the same date 1 year prior to the census. This indicates almost a quarter of employed residents are relatively new to the region. The industries with the largest new work force were accommodation and food services (210 people, 35% of industry’s workforce), manufacturing (165 people, 25% of the industry’s workforce), construction (154 people, 25% of the industry’s workforce), and retail trade (130 people, 21% of the industry’s workforce). 2.3.1 Employment Location Quotients A location quotient (LQ) provides a method of quantifying the concentration of a particular industry in a region compared to a larger geographic region by using the number of employees as a proxy indicator of activity. An LQ of less than 1 indicates the industry is underrepresented in the region compared with the larger region’s average and imports goods and services whereas a value greater than 1 indicates a highly concentrated industry that exports to external markets. Industries with a high LQ are significant as these are the activities that bring new money to an area rather than circulating existing money. In addition, industries with both a high LQ and high employment numbers overall generally form the region’s economic base and any economic strategy would need to incorporate the direct and indirect effects of these activities. For this exercise, the LQ has been calculated by comparing industry concentration within the Shire of Augusta-Margaret River with the South West statistical division. Industries with an LQ >= 1.5 and more than 30 employees are included in the table.


Table 5: LQ Calculations for the Shire of Augusta-Margaret River Industry Location Quotient Number of Employees

Beverage Manufacturing (Wine Making) 6.34 407

Fruit and Tree Nut Growing (Inc Grape Growing) 3.69 245

Accommodation 2.83 321

Dairy Cattle Farming 2.79 105

Agriculture and Fisheries Support 2.77 35

Specialised Food Retailing 1.89 119

Source: ABS (2006) Census of Population and Housing This data provides an indication that the major sources in income to the region are connected with tourism and wine making/viniculture, both of which are highly dependent on the specific location and natural features of the area. The effect of wine making on the region is most likely understated in this calculation as the manufacturing and grape growing segments of the industry have been split in line with ABS industrial classifications. Although this analysis indicates that the region is dependent on a small number of industries, this concentration is most likely sustainable for the foreseeable future. The Western Australian wine industry now has a favourable international reputation and, although some adaptation may be required to respond to changes in the climate (e.g. cultivating different grape varieties); it is not likely to be significantly detrimental. The wine and tourism industries are overwhelmingly important to the economy of the area. These are the top two employers in the Shire and create employment in many of the other categories, for example transport and construction. The Town Centre has a role in supporting both of these industries. Its impact on the tourism industry and tourism expenditure is investigated in following sections of the report. However, it also can support the wine industry. Much of Margaret River labelled wine is marketed as a premium product commanding high prices throughout the world. If the image (and reality) of the local environment is consistent with the premium branding, the price levels will be supported, thus boosting the local economy. The town centre environment currently does not fit this image; an appropriately redeveloped town centre would.

2.4 Retail The Margaret River town centre has ample opportunity for expansion to improve its role as the centre of a diverse tourism and lifestyle area. The Townsite Strategy for Margaret River estimates a total capacity within the town centre north of Wallcliffe Road of approximately 108,000m

2 of additional commercial floor space.

The 2006 Commercial Land Use Survey by the Department of Planning and Infrastructure indicates there is 33,300m

2 of commercial floor space in the town centre, of which 13,200m

2 is shop/retail floor space.

Expansion is possible in all of the key land uses, including shop/retail and other retail; tourist accommodation and office accommodation. It is estimated that shop/retail uses in the town centre could grow to 20,000m

2 –

25,000m2 over time. A development of 5,300m

2 including a Woolworths supermarket has been approved

which will bring to three the number if supermarkets in the town centre. The ABS – Household Expenditure Survey 2003/04 (HES 2003/04) provides detailed information about the net levels of expenditure, income and household characteristic of a sample of household residents in private dwellings throughout Australia. The demand for floor space calculated from the overall population and the average annual household expenditure, for the Shire of Augusta-Margaret River is shown in the table below.


Table 6: Floor Space Demand and Average Annual Household Expenditure – Shire of Augusta-Margaret River

2010 2016 2021 2026

Population 12,544 14,218 15,637 17,041

Av. Residents Per household 2.5

Total Households 5,018 5,687 6,255 6,816

Household Expenditure per week ($2006)

963

Total Household Expenditure per annum ($,000,000)

251.261 284.792 313.215 341.338

Floor space required (m2)

Retail productivity of $6,280/ m2 40,010 45,349 49,875 54,353

Source: ABS Household Expenditure Survey 2003/04

The data indicates that a demand of 54,353m

2 of total retail floor space is generated by the overall household

expenditure within the Shire of Augusta-Margaret River by 2026. This retail floor space will be distributed across the Shire and also outside the Shire in areas such as Busselton, but with the highest concentration in the Margaret River Town Centre. This includes all categories of retail expenditure. The 2006 Commercial Land Use Survey conducted by the Department of Planning and Infrastructure, indicates there is an existing total retail floor space of 33,044m

2 within the Shire of August-Margaret River, of

which 24,589m2 is ‘Shop / Retail’. Of this 13,243m

2 (54%) is in the Margaret River Town Centre. Overall,

therefore, there is an expected demand for additional total retail floor space of around 21,000m2 for the

Shire by 2026. There is a total maximum development capacity of over 108,000m2 in the Town Centre, north

of Wallcliffe Road, so there is more than sufficient planned capacity in the Town Centre to cater for expected demand. There is no significant retail destination to the south of the Margaret River townsite, with only a small retail centre in Augusta approximately 43 kilometres to the south. There is therefore expected to be no trade reduction in the town centre as a result of the traffic bypass function of the heavy haulage diversion route. In fact the expectation is that it will increase retail expenditure due to the following:

It will increase tourist expenditure in the town. From interstate visitors this will represent a net benefit to the state; from international visitors this will represent a net national benefit.

It will reduce the retail expenditure leakage by local residents to centres outside of the region, with consequent reductions in travel costs to those centres and consequent energy reductions and greenhouse gas reductions.

It is estimated that tourists to the Margaret River wine region spend approximately $61 million per annum on retail goods and services

2, with international and interstate visitors each accounting for approximately $10

million (i.e. $20 million in total). Approximately one-third3 of this $61 million spend is in the Margaret River

town centre. This means that $20 million of the retail expenditure in the town centre is visitor expenditure, which accounts for between 27% and 31% of all expenditure in the town centre. It is clearly central to the local economy. If this visitor expenditure were to increase by 20% as a result of improvements to the town centre arising from the heavy haulage diversion route, it would equate to an additional $4 million of retail expenditure in the town. This represents an additional 40 to 45 retail and services jobs.

2 Tourism WA 3 Based on overall retail expenditure breakdown


2.4.1 The Town Centre and Retail Location

According to the Local Planning Strategy, the Margaret River Town Centre area consists of three major streets: Bussell Highway, Town View Terrace and Fearn Avenue, all of these are north of Wallcliffe Road. Under the Local Planning Strategy the Town Centre is to be maintained as the core retail, commercial and cultural-recreation centre for the Margaret River town site and surrounding areas. The thrust of the strategic planning as detailed in the Townsite Strategy and confirmed in the Local Planning Strategy is for the Town Centre to be the main retail location for the Shire. Therefore, all future major retail developments should be focussed within the Margaret River Town Centre. This would create and reinforce the main street activity centre proposed for the stretch of Bussell Highway, between Higgins Street and Forest Road West.

The Margaret River Town Centre north of Wallcliffe Road currently extends 820 metres in length. To maintain its integrity as a single centre, the average length of a town site should not span more than 800 metres in length. This is around a 10 minute walk at normal to brisk walking pace and is considered the maximum extent that the majority of shoppers and other town centre users will accept without seeking some means of transport other than foot (generally it will be car) to get from one part of the centre to another. Examples of other town centre sites within Western Australia which span less than 800 metres in length are:

Subiaco : 721m

Joondalup : 700m

Claremont : 470m

Mandurah : 360m

Bunbury : 665m

East Perth : 543m

Therefore, limiting the development of a town centre to approximately 800 metres from one end to another will enable it to be a one stop destination, which will be consistent with the Margaret River Townsite Strategy, by:

Focusing activities along the main street; Encouraging park-and-walk initiatives; Increasing pedestrian interaction; and Reducing overall vehicular activity within the town centre. These will effectuate the policies and objectives for the Town Centre contained in the Townsite Strategy to ensure the viability of the Town Centre.


Figure 5: Maximum Town Centre Length

2.5 Future Development The map in Figure 2 shows the relationship of the heavy haulage diversion route to key new development areas. The heavy haulage diversion route is required to give access to these areas, in particular: The industrial estate east of the perimeter road and to the south of Rosa Brook Road; General development area, DIA M1, M2, M3 and M5; and Through access to John Archibald Drive to give better access to the East Margaret River Structure Plan

area and particularly the planned commercial area. The first of these, access to the projected new industrial estate, is particularly important. The requirement for more industrial land at Margaret River was identified in the Townsite Strategy and reinforced in the draft South West Industrial Land Strategy (Department of Planning/LandCorp). The existing Margaret River service commercial zone is at capacity and there is a current need for additional land, particularly to serve the logistics and servicing requirements of the wine industry. Market research has indicated a current demand for around 40 hectares of industrial land. A major transport and wine logistics firm has indicated that they would immediately develop 20,000m

2 of land with around 3,000m

2 under roof. The location of the industrial land

zone means that it would not be developed until the heavy haulage diversion route has commenced.

Margaret River Town Centre


Summary Points

The population in the Shire continues to grow steadily, with the greatest increase planned to be in the Margaret River Townsite. This is expected to grow from its 2006 resident population of 4,400 to around 12,000 by 2031.

The wine and tourism industries are overwhelmingly important to the economy of the area. These are

the top two employers in the Shire and create employment in many of the other categories, for example transport and construction.

The Town Centre has a role in supporting both of these industries; clearly in providing a better tourist

experience, but it also by supporting the wine industry. If the image (and reality) of the local environment is consistent with the premium branding, higher price levels will be supported. The town centre environment currently does not fit the image; a redeveloped town centre would.

The thrust of the strategic planning as detailed in the Townsite Strategy and confirmed in the Local

Planning Strategy is for the Town Centre to be the main retail location for the Shire. Therefore, all major retail developments will be focussed within the Margaret River Town Centre. This will create and reinforce the main street activity centre proposed for the stretch of Bussell Highway, between Higgins Street and Forest Road West.

There is not expected to be a reduction in trade in the town centre as a result of the traffic bypass

function of the heavy haulage diversion route. A redeveloped town centre would result in increased town centre retail expenditure: It will increase tourist expenditure in the town. While benefiting the town and the Shire, by

bringing in more interstate and international visitors it will also be of net benefit to both the State and nationally.

It will reduce the retail expenditure leakage by local residents to centres outside of the region, with consequent reductions in travel costs to those centres and consequent energy reductions and greenhouse gas reductions.

Between 27% and 31% of all retail expenditure in the Margaret River town centre is from visitors to the

area. It is clearly central to the local economy.

If this visitor expenditure were to increase by say 20% as a result of improvements to the town centre arising from the heavy haulage diversion route, it would mean an additional $4 million of retail expenditure in the town. This represents an additional 40 to 45 retail and services jobs in the town.

The heavy haulage diversion route is essential to the growth of the service and logistics base of the economy. The location of the new industrial land zone means that it will not be developed until the heavy haulage road has commenced.


Appendix 3

Margaret River Tourism The South West Region is well known for its wineries, fine food, beaches, and forests. Tourism plays a major role in employment and the WA economy and is expected to continue to grow into the future. It is estimated that six out of every 100 jobs in WA is a direct or indirect result of the tourism industry (Tourism WA, 2006). Margaret River has strong brand recognition throughout Australia as a prominent holiday destination for a diverse range of activities including wine, food and sightseeing. A destination salience study undertaken by the Cooperative Research Centre for Sustainable Tourism (CRC for Sustainable Tourism 2008) assessed travel preferences and behaviours to identify the process of destination choice for holiday travel within Australia. The participants were based in Sydney and Melbourne and it identified Margaret River as one of the few locations in all of the Activities/Experience categories of ‘Travelling around Australia, Camping, Enjoying Food and Wine in a Natural Environment’, ‘Sightseeing by Car, Sightseeing’, ‘Enjoying Food and Wine, Sightseeing’, and ‘Wine Region’. This section provides details of visitors to the Augusta-Margaret River local government area (LGA). The Shire of Busselton is used throughout this section as a comparison for statistical information. Busselton is the closest major town to Margaret River and as at the 2006 Census the town had a population of 15,386. The Shire of Busselton estimates that the local government area has a population greater than 26,000. As an initiative of the Shire of Busselton and Main Roads (Main Roads Western Australia 1995), the town of Busselton was bypassed in 2001 for the purpose of relieving traffic congestion in the town centre and to service developments to the south.

3.1 Visitors to Margaret River Margaret River has been the focus of years of promotion and marketing and as a result has become a brand identified with wineries, food, beaches, and a pristine environment. Tourism WA (2010) identifies the Margaret River Wine Region as the most visited region outside of the Perth area. This region includes the townships of Margaret River, Dunsborough, Yallingup, Augusta, Busselton, and Cowaramup. Events are also attracting a growing number of visitors to the South West Region with the Margaret River Wine Region Festival, Telstra Drug Aware Margaret River Pro surfing competition, SunSmart Busselton Festival of Triathlon, The West Australian Great WA Bike Ride, and Quit Forest Rally, as the major events. The average number of visitors to the entire Margaret River Wine Region for the period 2001-2008, is 782,300 overnight visitors per year, with 3.6 nights being the average length of stay. Table 7 is sourced from Tourism WA Overnight Visitor Fact Sheets for the years ending 2007/08/09 and figures are stated in an annual average for this period. (It should be noted that this data is based on survey sampled data, rather than actual numbers). The state average (which is also data based on a survey sample) is reflective of the year ending December 2009, and is sourced from the Quarterly Visitor Snapshot (Tourism Western Australia, Dec 2010). The table provides an overview of the number of domestic and international visitors to the Shire of Augusta-Margaret River and the Shire of Busselton each year. The data shows that the majority of the visitors to the region are from within WA; however Augusta-Margaret River has a much higher percentage of interstate and international visitors when compared to Busselton. These visitor numbers are used throughout this section of the report.


Table 7: Overnight Visitor Summary

2009 Shire of Augusta-Margaret River

Shire of Busselton Whole of WA

Estimated Overnight Visitors

Intrastate 315,000 69% 484,300 86% 4,174,000 72%

Interstate 81,000 18% 42,700 8% 947,000 16%

International 59,400 13% 33,800 6% 694,100 12%

Total 455,400 100% 560,800 100% 5,815,100 100%

Estimated Visitor Nights

Intrastate 953,000 61% 1,673,000 84% 14,936,000 34%

Interstate 269,300 17% 148,000 7% 7,556,000 17%

International 344,900 22% 178,500 9% 21,391,100 49%

Total 1,567,200 100% 1,999,500 100% 43,883,100 100%

Source: Tourism WA – Overnight Visitor Fact Sheets, Years Ending December 2007/08/09; Quarterly Visitor Snapshot, Year Ending December 2010

This data indicates that approximately 8% of the overnight visitors in WA stayed in the Shire of Augusta-Margaret River. This is broken down into 7.5% of intrastate visitors, 8.6% of interstate visitors, and 8.6% of international visitors. Of visitor nights less than 4% of total state nights are spent in Augusta-Margaret River, however this is 6.4% of intrastate visitor nights, 3.6% of interstate visitor nights, and only 2% of international visitor nights. The international visitor night proportion and to a similar extent the interstate proportion of the WA total are expected to be lower than intrastate visitor proportions due to the isolate nature of WA and the tendency of out-of-state visitors to undertake multi-destination trips to maximise travel benefits. Tideswell and Faulkner (1999) list several reasons for this including travel time constraints, economic rationalisation, visiting friends and relatives, and destination familiarity. Tourism in the Shire of Augusta-Margaret is a very important element of the State’s overall tourist offering. For example, it has almost twice the combined total of international and interstate visitors and visitor-nights than that of Busselton. Destination familiarity is particularly relevant to Margaret River. Margaret River has a very strong international tourism brand, implying high recognition and a perceived low rate of disappointment for an international visitor. If the reality is disappointing then the brand strength will dissipate over time. This could occur if, for example, the reality of a destination does not meet the expected image. Town amenity is just as important as the facilities and businesses available to visitors, when endeavouring to increase the number of visitors as well as the number of visitor nights. Day-trippers are an important aspect of Margaret River tourism. Tourism Australia reported that for the four years to June 2007, on average 694,000 domestic day trips were made to the Capes Region per annum (AMR 289, Bus 405). A popular reason for visitation is the Leeuwin-Naturaliste National Park which has the highest visitation of any of WA’s national parks. During 2008/2009, 2.33 million people visited for the beaches, fishing, and visual landscape. (Leeuwin-Naturaliste Capes Area Parks and Reserves - Draft Management Plan 2010). There is opportunity to extend the day-trip experience to include the Town of Margaret River and to convert day-trippers to overnight stays.

3.2 Purpose of Visit As the South West region is well known as a holiday destination, it is not surprising that holiday or leisure is the predominant purpose for both domestic and international visitors to the Augusta-Margaret River region


and Busselton. One of the main differences regarding purpose of visit between the two Shires can be seen in table 8 below. The Shire of Augusta-Margaret River has a smaller portion of visitors who are visiting friends and relatives compared to Busselton. It is considered the reason for this is that Busselton has a resident population approximately 2.5 times larger than that of the Shire of Augusta-Margaret River. Table 8: Purpose of Visit, Overnight Visitors

2009 Shire of Augusta-Margaret River Shire of Busselton

Estimated Domestic Visitors

Holiday or leisure 306,700 77% 377,700 72%

Visiting friends and relatives 58,700 15% 111,700 21%

Business 21,300 5% 25,700 5%

Other 9,300* 2% 12,300 2%

Total 396,000 - 527,300 -

Estimated International Visitors

Holiday or leisure 55,200 93% 29,000 86%

Visiting friends and relatives 3,300 6% 4,300 13%

Business 600* 1% 300* 1%

Other 500* 1% 400* 1%

Total 59,400 - 33,800 - * Small Sample Size: Caution should be used when reporting these estimates due to lower levels of reliability Multiple response question Source: Tourism WA – Overnight Visitor Fact Sheets, Years Ending December 2007/08/09

Tourism Australia (2007) indicates that 58% of international visitors to the Shire of Augusta-Margaret River are repeat visitors. This is the same as the national average and slightly lower than the state average of 63% indicating there is potential to encourage these visitors to return to the area. Repeat visitors are likely to be the best ambassadors for promoting Margaret River as a holiday destination; therefore the actual experience must meet expectations and ideally surpass them. Whilst in the Shire, the most popular activities undertaken by overnight visitors are shown below in Table 9. These figures show percentages of visitors who undertook each of the listed activities. Local percentages are compared to state and national average percentages. Table 9: Visitor Top Activities – Shire of Augusta-Margaret River - 2007

Top Activities

Domestic International

Overnight (%)

State Average (%)

National Average

(%)

Overnight (%)

State Average (%)

National Average

(%)

Eat Out/Restaurants 63 50 52 91 92 89

Wineries 49 9 3 87 31 13

Beach 48 28 24 75 68 63

Shopping (Pleasure) 32 27 29 73 84 83

Walk/Drive Around 47 30 28 na na na

Visit Friends/Relatives 35 45 45 na na na

National Parks/State Parks

na na na 48 56 46

Pubs, Clubs, Discos etc. na na na 33 47 42 Source: Tourism Australia – Tourism Profiles for local government areas in regional Australia 2007

Of the activities shown in Table 9, the following take place within town centres such as in Margaret River or Augusta:


Eat Out/Restaurants Shopping (Pleasure) Visit Friends/Relatives Pubs, Clubs, Discos etc. These figures show that the Town of Margaret River itself is just as much an attraction as the surrounding wineries, beaches, and parks. It is also the primary location for tourists to choose their accommodation when visiting attractions throughout the Shire and immediate surrounding areas, and therefore the Town Centre plays an important role in the holiday experience. For maximum visitor satisfaction, town amenities and retail outlets need to reflect the destination image and visitor expectations. Living up to the Margaret River brand image in the Town Centre is impeded by the current streetscape which has been designed for and constantly used by heavy vehicles. Completion of the heavy haulage diversion route project would enable this be addressed.

3.3 Length of Stay Length of stay has considerable economic impact on an area as it plays a major role in determining the amount visitors spend during a visit. As the current length of stay is below both the state and national levels, the potential for improvement exists. The number of attractions can be a factor when determining the amount of time spent in a single location by a visitor and therefore creation of attractions and promotion of the Town Centre as a destination feature may assist in improving the length of stay. Table 10 shows that international visitors stay longer in the area with an average of 5.8 nights compared to intrastate and interstate visitors with an average of 3.0 and 3.3 nights respectively. State and National averages are provided by Tourism Australia (2007). Table 10: Average Length of Stay

2007 Shire of

Augusta-Margaret River

Shire of Busselton

State Average National Average

Average Length of Stay (Estimated Nights)

Intrastate 3.0 3.5 4.7 3.9

Interstate 3.3 3.5

International 5.8 5.3 25.5 28.6

Total 3.4 3.6

Source: Tourism WA – Overnight Visitor Fact Sheets, Years Ending December 2007/08/09; Tourism Australia – Tourism Profiles for local government areas in regional Australia 2007

Table 10 shows that international visitors have the longest period of stay in the Shire with an average of 5.8 nights compared to intrastate and interstate visitors with an average of 3.0 and 3.3 nights respectively. State and National averages are provided by Tourism Australia (2007). As the current length of stay is below both the state and national levels, the potential for improvement exists. However these may not be good comparisons due to the tendency mentioned before, particularly for international visitors, to visit multiple destinations within the state and country. The Hunter Valley wine region in New South Wales, however, has an overall average length of stay across all visitors of 5.7 (Tourism Australia – Tourism Profiles for local government areas in regional Australia 2007) , compared with the Augusta-Margaret River region of 3.4. This is an indication that there is potential to increase the length of stay, which would increase the average spend per trip.


The number of attractions can be a factor when determining the amount of time spent in a single location by a visitor and therefore creation and then promotion of the Town Centre as a destination feature may assist in improving the length of stay.

3.4 Visitor Accommodation The Shire of Augusta-Margaret River provides a variety of accommodation options for visitors to the region. The following table shows the accommodation break-down for the LGA, compared to Busselton LGA. Although ABS does not provide information for all accommodation types within the Shires, it provides an indication that there are substantially fewer accommodation units overall in Augusta-Margaret River compared with Busselton and prima facie evidence of the opportunity for increased supply. Table 11: Accommodation Type and Capacity

Accommodation Type

Shire of Augusta-Margaret River

Shire of Busselton

Number Total Capacity Total Capacity

Caravan Park 9 1,177 12 1,600

On-site Vans 99 - 111 -

Other Powered Sites 659 - 1,087 -

Unpowered Sites 244 - 124 -

Cabins, Flats, Units and Villas 175 - 278 -

Sits occupied long-term 54 - 143 -

Visitor Hostels 4 266 2 -

Hotels, Motels and Serviced Apartments 11 1,232 26 4,435

Total 2,675 6,035 Source: Australian Bureau of Statistics (2010)

Table 12 provides a breakdown of the types of accommodation used by visitors to Augusta-Margaret R

the redevelopment of margaret river townsite: creating a...

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