After bad bushfire press, the Blue Mountains works to regain its footing
The bushfires that travelled through New South Wales’s Blue Mountains in October last year went nowhere near the region’s tourism hubs. Nevertheless, in December the Blue Mountains Economic Enterprise estimated that as a result of the negative media attention around the bushfires, which contributed to a downturn in the region’s tourist visitations, the region’s economy is down by $71 million.
Donald Luscombe, the Blue Mountains Economic Enterprise chairman, said that although none of the region’s attractions were affected, tourists stayed away.
“As a result of lost tourism visitation over the first 42 days after the bushfire emergency, the total impact to economic output (revenue) for the Blue Mountains was $71.3 million,” he said.
“The data indicates a decrease in wages and salaries of up to $17 million over that 42 day period. Obviously, the flow-on impact of that in terms of consumption and expenditure is significant. The total impact to the economy of the fires is yet to be calculated but as you can see, the impact from the tourism sector alone has had a truly significant effect.”
Tourist properties have also weathered the impact of poor media coverage. Federation Gardens Lodge (pictured below) was prepared to list in October last year through First National Tourism. But according to broker Nick Brook, although the property was unaffected by the bushfires themselves, the vendors and First National Tourism decided to hold off on listing the property.
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“We did all the preliminary work, including the research, and were ready to put it on the market. But because of the fires, we held off. We’ve only just listed the property this month,” he said.
The Clarendon Guesthouse in Katoomba (pictured below) sold late last year, with market sources suggesting that the hotel went for close to $2 million.
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The sale was handled by Paul Kapiris and Andrew Jackson of CBRE Hotels. Although he says it is too early to draw conclusions from market values, Kapiris has noticed interest in the area recently, including from foreign investors.
“Interestingly, there’ve been a few sales in the area,” says Kapiris. “Whether it’s reflected in the values is probably unclear. But there has been a little bit of movement, particularly in Katoomba.”
Kapiris points to foreign investors and tourists as a possible source of revival for the region.
“We’ve seen a mix of local buyers seeking assets and foreign buyers, particularly those that have connections to tourism.
“The Australian dollar should have an impact – a lowering Australian dollar should help regional tourism. But how long that will take would be anyone’s guess.
“And the lowering Australian dollar and the growing Asian middle class are part of the reason that we’ve had such an increase in interest from Asian groups.”
Meanwhile, the Blue Mountains Economic Enterprise has launched a number of initiatives to strengthen the region’s economy, including a “Creative Industries cluster”. With research suggesting that creative industries provide 8% of the region’s available jobs – close to double the state average – the range of events and advocacy initiatives will seek to consolidate the area’s reputation as a creative hub.
While the holidays brought some relief to the Blue Mountains, Luscombe says that sustained interest is what the region needs.
“We saw a lift in visitation over the Christmas period, which is traditionally a peak time but the best way for Australia to assist this region continue its recovery is to visit and savour the cooler weather, glorious local food and world-class tourism attractions,” he said.
“We are absolutely open for business.”