Special focus Electricity, Gas, Water and Waste Services

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1 Special focus Electricity, Gas, Water and Waste Services In regional Victoria, business establishments are concentrated in major regional centres. In contrast to metropolitan Melbourne, one third of business establishments in the industry in regional Victoria are involved in water supply (dam operation, distribution and irrigation). Like in metropolitan Melbourne, the industry was relatively stable with modest change in the number of business establishments between and Figure 6.43: Change in Electricity, gas, water and waste services business establishments, regional Victoria, to Mildura Figure 6.42: Number of Electricity, gas, water and waste services business establishments, regional Victoria, Mildura 1 to 2 2 to 3 3 to 5 5 to or more Maryborough Bendigo Kyneton Shepparton -6 Shepparton Wodonga Portland Ballarat Geelong Myrtlebank Kyneton Yarram Ballarat Bacchus Marsh Bairnsdale Warrnambool Traralgon Source: WorkSafe Victoria and DSDBI Source: WorkSafe Victoria and DSDBI Services in Victoria 103

2 Special focus Electricity, Gas, Water and Waste Services Changes in employment Over the past decade, half of the employment growth that occurred within the industry was in metropolitan Melbourne. One third of Melbourne s related workforce is located within the City of Melbourne, due to the presence of large electricity, gas and water utilities with extensive customer services and retailing focus. Figure 6.45: Change in Electricity, gas, water and waste services employment by place of work, Melbourne, 2001 to 2011 Figure 6.44: Employment in Electricity, gas, water and waste services by place of work, Melbourne, 2011 Melbourne (C) Melbourne (C) Whitehorse (C) 4,000 2, Kingston (C) 20 to to to 1,000 1,000 to 6,000 6,000 or more 104 Services in Victoria

3 Special focus: Electricity, gas, water and waste services Within regional Victoria, most of the jobs growth over the past decade occurred in major regional centres where the majority of the workforce is employed. An exception was a rise in activity in Bass Coast Shire due to the development of the desalination plant to provide metropolitan Melbourne with a rain-independent source of drinking water. The largest decline in employment occurred in the City of Latrobe, where many workers are engaged in the generation and supply of electricity. Figure 6.46: Employment in Electricity, gas, water and waste services by place of work, regional Victoria, 2011 Figure 6.47: Change in Electricity, gas, water and waste services employment by place of work, regional Victoria, 2001 to to to to to 1,500 1,500 or more Greater Bendigo (C) Ballarat (C) Greater Shepparton (C) Greater Shepparton (C) Greater Geelong (C) Latrobe (C) Greater Geelong (C) Latrobe (C) Services in Victoria 105

4 Services are an important source of Victorian exports. Major contributors to the rise in services exports have been an increase in demand for Victorian education, tourism and business services from the Asia region. Globally, demand for services exports is growing fastest in the Asia region and an increasing share of Victorian services exports are being directed to Asian economies. Education was Victoria s highest value services export in ($4.5 billion). Education exports capture tuition fees and spending by international students while in Victoria. Personal travel (tourism) exports, which totalled $2.5 billion in , capture spending by international visitors to Victoria while on vacation or visiting family and friends. Other important services export categories were Other business services and Business travel. Figure 6.48: Victorian services exports ($ million), Source: ABS, International Trade in Services by Country, by State and by Detailed Services Category, Financial Year, (cat. no ) 106 Services in Victoria

5 Services exports Education Education exports were Victoria s most valuable services export in Victoria has generated strong growth in international education exports over the past decade. Despite the appreciation of the Australian dollar and changes to visa requirements, demand from China, India and south east Asian countries has remained strong. Tertiary education workers in Melbourne employed in the higher education and vocational education and training (VET) sub-sectors are concentrated in municipalities with major education facilities including Melbourne, Monash, Darebin and Whitehorse. In regional Victoria, tertiary education employment is concentrated in LGAs with universities or TAFEs and other major training institutions including Greater Geelong, Greater Bendigo, Ballarat and Latrobe. Figure 6.49: Tertiary education employment by place of work, Melbourne, 2011 Figure 6.50: Tertiary education employment by place of work, regional Victoria, 2011 Darebin (C) Whitehorse (C) 1 to to to to 1,000 1,000 or more Melbourne (C) Monash (C) 1 to to 1,000 1,000 to 3,000 3,000 to 15,000 15,000 or more Greater Bendigo (C) Ballarat (C) Greater Geelong (C) Latrobe (C) Services in Victoria 107

6 Victoria s education exports ($4.45 billion) were 30.1 per cent of total education exports for Australia ($14.77 billion) in China consumed the largest proportion of education exports in Chinese students studying in Australia spent over $4 billion in The next largest sources of education exports for Australia were India ($1.4 billion), South Korea ($814 million), Vietnam ($761 million) and Malaysia ($739 million). Figure 6.51: Origin of Australian education exports ($ million), $4,100m $2,050m $410m 108 Services in Victoria Source: ABS, International Trade in Services by Country, by State and by Detailed Services Category, Financial Year, (cat. no )

7 Services exports Tourism Victoria s multicultural and cosmopolitan society, scenic attractions and sporting and cultural events attract international visitors. The Victorian tourism industry provides a broad range of services including accommodation, restaurants, pubs and cafés, entertainment, arts and recreation events. In the year to December 2012, there were almost 1.7 million visitors to Victoria for purposes other than education, who spent $1,625 each on travel and accommodation or $2.78 billion in total. The Accommodation and food services and Arts and recreation services industries are important generators of tourism exports in metropolitan Melbourne and regional Victoria. At the time of the 2011 Census, over three quarters of the Accommodation and food services workforce within metropolitan Melbourne was employed in the City of Melbourne in the large number of hotels, motels, hostels, cafés and restaurants located there. The number of Accommodation and food services business establishments in the City of Melbourne increased by almost 700 in the ten years to as the city expanded into Southbank and Docklands. In regional Victoria, Accommodation and food services employment was concentrated in major regional centres as well as in tourist locations such as Victoria s Alpine region and coastal areas. In , employment in the Arts and recreation services industry was also heavily concentrated in the City of Melbourne in major sporting facilities, art galleries, museums, theatres, concert halls and a major casino. In regional Victoria, employment in the Arts and recreation services industry was concentrated in major regional centres and in tourist destinations close to Melbourne such as the Macedon Ranges and Bass Coast shires. Services in Victoria 109

8 Figure 6.52: Accommodation and food services employment by place of work, Melbourne, 2011 Figure 6.53: Arts and recreation services employment by place of work, Melbourne, 2011 Melbourne (C) Melbourne (C) 800 to 2,000 2,000 to 3,000 3,000 to 4, to 20,000 20,000 or more 200 to to to 2, to 12,000 12,000 or more 110 Services in Victoria

9 Figure 6.54: Accommodation and food services employment by place of work, regional Victoria, 2011 Figure 6.55: Arts and recreation services employment by place of work, regional Victoria, to to to 1,000 1,000 to 2,500 2,500 or more 1 to to to to or more Greater Bendigo (C) Greater Bendigo (C) Ballarat (C) Ballarat (C) Greater Geelong (C) Greater Geelong (C) Services in Victoria 111

10 With the appreciation of the Australian dollar over the past decade, the cost of travelling to Australia has increased. Despite this increased cost, international visitor numbers to Victoria have continued to rise, largely due to an increase in visitors from Asia, and China in particular. Figure 6.56: Victorian international visitors and annual expenditure, 2012 Expenditure Visitors Note: Visitors aged 15 years and above for year ending September. Expenditure for year ending June. Source: Tourism Victoria Research Unit, December Services in Victoria

11 Not including education exports, the United Kingdom was Australia s largest tourism export market in ($2.1 billion), followed by New Zealand ($2 billion), the United States of America ($1.5 billion), China (excluding Hong Kong) ($1 billion) and Japan ($838 million). Japan was Australia s second largest tourism export market in Figure 6.57: Origin of Australian tourism exports ($ million), $2,200m $1,100m $220m Source: ABS, International Trade in Services by Country, by State and by Detailed Services Category, Financial Year, (cat. no ) Services in Victoria 113

12 Services exports Other business services Improvements in ICT have led to innovations in the design and delivery of business services, opening up new export markets for Victoria s Professional, technical and scientific services businesses. Figure 6.58: Victorian business services exports by sub-category, These advances in ICT have facilitated the export of Victoria s services. While some initial face-to-face contact may still be required, ongoing interaction can be conducted at a distance. Professional reports and designs can be delivered electronically; scientific analysis compared and discussed through digital media and online forums; data and statistics accessed online; and geography viewed virtually. Compared to the delivery of manufactured goods, the cost of delivering business services digitally is negligible. Globalisation and improvements in ICT have resulted in industrial supply chains that spread research and development, product design, manufacturing and marketing across international locations. These activities make use of services such as delivery, legal, information technology and financing in multiple legs of product development and manufacture. Specialised Victorian services firms have emerged and expanded to take advantage of the growing use of global supply chains to export their services. Demand for business services is growing fastest in developing regions such as Asia and South and Central America, as emerging economies in these regions have become more sophisticated and income and wealth increases. In total, Victoria generated $1.7 billion in other business services in Technical services, including architectural and engineering services, was the largest sub-category ($683 million) followed closely by professional services including legal, accounting and public relations ($675 million). Environmental, agricultural and mining, $50m Advertising, market research and public opinion, $63m Other business services, $78m Research and development, $132m Operational leasing services, $35m Trade-related, $12m Architectural, engineering, scientific and other technical services, $683m Legal, accounting, consulting, PR and other professional, $675m Source: ABS, International Trade in Services by Country, by State and by Detailed Services Category, Financial Year, (cat. no ) 114 Services in Victoria

13 The United States of America was Australia s largest business services exports market in ($1.9 billion), followed by Singapore ($1 billion), the United Kingdom ($703 million) and New Zealand ($428 billion). Figure 6.59 : Australian Other business services exports destination ($ million), $1,900m $950m $190m Source: ABS, International Trade in Services by Country, by State and by Detailed Services Category, Financial Year, (cat. no ) Services in Victoria 115

14 116 Services in Victoria

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