Yesterday the Deloitte Access Economics Report* (commissioned by Sydney Water) was released at Bondi Beach and it confirmed what we all knew: Australia's liveable cities and beach lifestyle is iconic all over the world. Twenty five years on from the start of the Deep Ocean Outfall program, we have vastly cleaner beaches - but what is the social and economic value of that improvement? Sydney Water commissioned Deloitte Access Economics to investigate.
The Report – the first of its kind in evaluating water’s contribution to Australia’s liveable cities – values Sydney's beaches at around $1.3 billion per year. Yes that’s right - $1.3 billion per year, 3500 jobs - a significant part of the economy. Of that at least $94 million is attributable to water quality alone.
As an island we are fortunate to have an abundance of beaches and having clean beaches is a priority for many. The Report shows a significant proportion of recent immigrants (11 per cent) specifically nominate clean beaches as a priority issue when they consider Sydney as a city to move to. The same could probably be said for Perth, the Gold Coast, Torquay and Glenelg, in fact our whole glittering coastline from Tasmania to Darwin. If Australia is going to compete for talent and investment on a global scale, we need to create cities and places that people love to live in.
However, it’s not just those living near the beach that love them - surprisingly 60 per cent of beach non-users (people who hadn’t visited a beach in the past 12 months) valued clean water and beaches simply because of the iconic value they provide to the city.
Tourism Australia’s research shows that Australia’s key tourism drawcards includes beaches. Almost 70 per cent of international visitors make a visit to the beach, and beaches consistently rank first as one of the most appealing attractions in Australia.
Even more compelling is that good water quality and clean beaches, as demonstrated by the implementation of the Deep Ocean Outfall program, enhances capital uplift of properties. Based on analysis, the Report shows that on average, properties in suburbs close to the beach are valued at around $350,000 more. Importantly, this Report identifies opportunities for capital uplift for any improved waterway that connects people, provides green space amenity and beauty and lifts the local economy. Studies from around Australia show that improving bays, creeks (channelised to naturalised), rivers and providing water to create green spaces also leads to capital uplift.
It is clear from the evidence presented in the Deloitte Report that clean waterways have multiple benefits: better health (physical and mental), increased capital value, increased profitability of local businesses, reinforced iconic value (even for non users), and increased biodiversity of marine life.
This Report strongly aligns with the Federal Government’s Smart Cities Plan but highlights further area for improvement. While there has been a leap in improvement in water quality at our beaches, we still need better integration of stormwater management and improved coordination of infrastructure planning and delivery across the four essential services sectors of transport, energy, water and telecommunications.
Realising these improvements will only increase the value to our beaches and waterways, escalating our attractiveness in the international knowledge economy and increasing value to property.
12 Sep 2016
