Economic Opportunity
Economic Opportunity
In addition to being considered as a sport and recreation opportunity, the Manjimup Trail Bike Hub (MTBH) project presents a unique economic development opportunity for Manjimup and the Shire of Manjimup area. Perhaps the most appealing aspect of the Hub is the point of difference this type of hub would provide. Unaware of any similar offering currently available for trail bike riders in (Western) Australia, the MTBH has untapped potential to attract significant numbers of visitors to the region.
An Economic Impact Assessment was undertaken for the MTBH, which showed that the potential of the MTBH to attract over 33,600 visitors annually and to inject $12.8 million annually in visitor expenditure in the Manjimup region once fully completed. This level of expenditure would contribute (directly and indirectly) $7.9 million to the local economy, in Gross Regional Product (GRP) terms. It will also directly and indirectly support 75 full-time equivalent (FTE) positions in the area. At the selected real discount rate of 7% for this project, the analysis yielded a Benefit to Cost Ratio of 4.1 meaning that it is economically desirable and provides a net benefit.
Beyond these quantifiable economic benefits, there are numerous additional economic benefits stemming from the development of the MTBH, including:
- Economic Diversification: business activity in small towns that rely on only a few industries can be volatile, susceptible to macroeconomic events and shocks outside of the town. A more diversified economy is important for the longer-term sustainability of the region. The MTBH can provide greater diversity to the growing adventure and exploration trail tourism market that the region is becoming renowned for.
- Sustainability of the Town: Manjimup’s population has been trending lower for more than 15 years, with the region’s resident population also ageing rapidly over the past decade. An increased tourism industry presence has the potential to increase the town’s job opportunities, particularly for younger residents (who are more likely to work within the tourism industry) and help to reverse the decline in the region’s younger population.
- Increased Business Confidence and Sustainability: any investment that takes place in areas such as Manjimup that can diversify the local economy has significant flow-on benefits, with the project having the potential to greatly increase local business confidence, which could trigger additional investments and job creation across the economy. Any increase in infrastructure that generates additional activity in the town is important and will assist with the ongoing sustainability of local businesses.
Profile of Manjimup: as the MTBH development proceeds, Manjimup will benefit from a raised profile as the MTBH is marketed and visitors begin to associate Manjimup with trail bike riding. The Southern Forests are already a recognised trail destination with the Bibbulmun Trail (walking) and the Munda Biddi Trail (mountain biking) traversing the region. The MTBH further accentuates the existing profile, adding a new dimension – specifically for trail bike riding. Additionally, this increased recognition of Manjimup as a trail bike hub could also attract future events and other forms of tourism, generating additional economic benefits.
Keep Reading: Project History.