DRAFT ECONOMIC DEVELOPMENT STRATEGY, RETAIL AND TOURISM ACTION PLANS PUBLIC EXHIBITION

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1 ITEM 2. FILE NO: DRAFT ECONOMIC DEVELOPMENT STRATEGY, RETAIL AND TOURISM ACTION PLANS PUBLIC EXHIBITION S SUMMARY Sydney is Australia s largest and only global city. It is the leading knowledge-based economy in the nation, with the greatest share of knowledge-intensive services jobs of all Australian cities. It is recognised as the only global city in Australia with global linkages maintained through networks, connections, the export of advanced services and cultural exchange. As the heart of Sydney, the city economy shares these qualities. Sydney possesses important economic advantages, including a mature commercial environment that is regionally-focused, servicing the Asia-Pacific region. Sydney has a sophisticated, cosmopolitan and highly-skilled pool of workers attracted by economic opportunities and Sydney s unique lifestyle and physical attributes, including a world class natural environment and climate. This combination makes Sydney one of the most attractive cities in the world. As the core of Australia s global city, the economy of the City of Sydney Local Government Area drives the metropolitan Sydney economy and contributes significantly to the NSW and Australian economies. In 2011/12, the City of Sydney s economic output was forecast to be $100.8 billion. This represents 7.5 per cent of the Australian economy ($1,473 billion) and almost a quarter of the NSW economy ($455 billion). The City of Sydney is charged with a responsibility to engage in long-term strategic planning on behalf of the local community, workers, visitors and businesses who occupy the city each day and, in doing so, address economic, social, environmental, cultural, civic leadership and land use issues in an integrated manner. The City does this at the highest level through Sustainable Sydney 2030 and in a more detailed manner, through the development and implementation of specific strategies and plans, such as the two presented in this report. A draft Economic Development Strategy has been prepared and the first two of the detailed Action Plans to support specific sectors of the city economy: Retail and Tourism. The exhibition of the draft Strategy and Action Plans will provide an opportunity for the community to comment on the City s vision and plans to strengthen the economy and support business. Feedback received during the exhibition period will then be incorporated into the final Strategy and Action Plans, which will be presented to Council for adoption. RECOMMENDATION It is resolved that Council approve the Draft Economic Development Strategy, Retail and Tourism Action Plans, as shown at Attachments A, B and C, respectively, to the subject report, for public exhibition for a minimum period of two months.

2 ATTACHMENTS Attachment A: Draft Economic Development Strategy Attachment B: Draft Retail Action Plan Attachment C: Draft Tourism Action Plan

3 BACKGROUND 1. Sustainable Sydney 2030 provides the direction for the City s actions over the next 17 years. Direction 1 identifies that keeping Sydney globally competitive is central to Sydney s and Australia s future and that the City must focus on the global economy and sustained innovation to ensure continuing prosperity. A key action arising from this objective is the development and implementation of an economic development strategy for the city. 2. Building on the broad economic themes set out in Sustainable Sydney 2030, City staff have developed the draft Economic Development Strategy that accompanies this report. 3. It is a ten year strategy, which aims to strengthen the city economy and support business. It centres on further improving the solid foundations for success that exist within the city economy, as well as creating opportunities for individuals, businesses, the community and future generations. It also acknowledges and addresses the challenges that might otherwise limit Sydney s potential growth as a global city. 4. The draft Strategy provides an overview of the city economy, which is estimated to contribute $101 billion to Australia s GDP, and identifies the future directions it may take. It sets out the City s vision for the future economy of Sydney and the strategies and actions needed to achieve that vision. 5. The draft Strategy provides an overarching framework to inform the City s economic development initiatives and articulates the City s role, priorities and approach. 6. Within this framework, it is intended that Action Plans will be developed, which set out in more detail the contemporary issues faced by each industry or economic sector or location and the projects and programs designed to respond to those challenges and opportunities. 7. The Action Plans include actions to be delivered by the City directly or in partnership with other levels of government and industry, as well as those where the City is an advocate for change. 8. The approach to developing specific plans for each sector or location has been taken to ensure that the City remains flexible and adaptable and able to respond to changing priorities as circumstances in the economy change over time. 9. It is also consistent with the approach taken by the NSW Government, which in 2012 released its Economic Development Framework and action plans to support the Visitor Economy, Digital Economy, Professional Services, International Research and Education and Manufacturing Sectors. A plan to support the Creative Industries sector was subsequently released in Two of the identified Action Plans have been prepared and accompany the draft Economic Development Strategy. 11. The retail sector represents more than 7,800 of the approximately 21,500 businesses in the City of Sydney Local Government Area (LGA) and is a major employer.

4 12. It is recognised that a vibrant retail sector in Sydney services local residents, as well as those working or passing through the city each day. It is an attractor for visitors; contributing to the everyday cultural and social fabric of the city. It contributes to the liveability of Sydney, an important factor in attracting global businesses and their highly skilled workers who seek a high-quality lifestyle and work environment. 13. To support the development of the retail sector, a draft Retail Action Plan has been developed. It sets a course to position Sydney as Australia s premier retail destination with a shopping experience in the city centre that matches those found in comparable global cities and thriving main streets in each of the villages. 14. Sydney is Australia s premier destination city and the gateway to NSW, attracting 10.5 million visitors in 2012, with 4.3 million visitors staying directly in the City s LGA. It is recognised as Australia s premier destination city for good reason; with its beautiful natural harbour, iconic architectural landmarks, and world-renowned events and attractions. The wide range of reasons to visit means Sydney currently receives approximately 50 per cent of all international visitors to Australia, exemplifying Sydney s status as the nation s only global city. 15. The tourism sector makes a significant impact on Sydney s economy, benefiting the city s businesses and communities. Visitor direct expenditure contributed over $5 billion to the city economy in By its very nature, tourism is a broad sector, supporting diverse industries such as transport, accommodation, education, retail, cultural and recreational services. The city s vibrant 24/7 tourism industry underpins the health and vitality of more than 10,000 businesses in the city, and provides important employment opportunities. 16. A draft Tourism Action Plan has been developed which sets out a range of actions for the City to work with industry and government partners to create an environment that allows tourism in Sydney to diversify, grow and develop. 17. Over time, a range of industry Action Plans will be brought to Council for consideration. Future Action Plans will encompass sectors such as the Creative and Digital Industries, Finance and Business Services, Green Economy, and International Education. As well, place based Action Plans will focus on the specific actions to support the economies of the Village main streets, as well as that of central Sydney. Consideration will also be given to locations such as Green Square as that new town centre develops. 18. Across each of the Action Plans are some common themes, which are broad and overarching subjects that are integral to the vision of the city economy and important for all of the Action Plans. These include sustainability, Aboriginal employment and enterprise, small business and entrepreneurs, knowledge and innovation and connections with Asia. Support for these economic sectors will be addressed through the industry or place-based action plans. At times, economic sectors may be addressed through the development of a specific plan. 19. Together, the sector and placed-based strategies work to deliver on the current 2030 target to achieve 465,000 jobs in the City s LGA (noting that the draft Metropolitan Strategy for Sydney includes an increased target of 480,000 jobs by 2031). As well, they contribute to growth in economic output and the achievement of a dynamic, resilient economy.

5 20. It is proposed that the draft Economic Development Strategy and Retail and Tourism Action Plans be placed on public exhibition from 31 July to the end of September During this time, key business and industry stakeholders will be briefed, either at an event hosted by the City or briefings of their organisations. 21. City staff will then analyse the feedback during the exhibition period and incorporate it, where relevant, into the Economic Development Strategy and Retail and Tourism Action Plans. They will then be submitted for adoption by Council at the end of 2013 or early KEY IMPLICATIONS Strategic Alignment - Sustainable Sydney Sustainable Sydney 2030 is a vision for the sustainable development of the City to 2030 and beyond. It includes 10 strategic directions to guide the future of the City, as well as 10 targets against which to measure progress. The Economic Development Strategy and Retail and Tourism Action Plans are aligned with all ten strategic directions and objectives. However, they have a greater emphasis on the following strategic directions: (a) (b) (c) (d) Direction 1 - A Globally Competitive and Innovative City the draft Economic Development Strategy responds to all five objectives that support this strategic direction. In particular, it has been developed in direct response to Action The draft Tourism Action Plan sets out an agenda to deliver on Objective 1.5, to enhance tourism infrastructure, assets and branding of the City; Direction 5 - A Lively and Engaging City Centre the draft Retail Action Plan supports the objectives generally in this strategic direction and specifically addresses Action to support Sydney as Australia s premier retail destination; Direction 6 - Vibrant Local Community and Economies the draft Economic Development Strategy and Retail and Tourism Action Plans address objectives 6.3 (develop and support local enterprise and employment) and 6.4 (develop and support a network of dynamic, robust local economies); and Direction 7 - A Cultural and Creative City the draft Economic Development Strategy includes provision for the development of future Action Plans to support the development and growth of the creative economy (Objective 7.3) and to develop and implement the Eora Journey Economic Development Plan (Action 7.4.1). Social / Cultural / Community 23. The draft Economic Development Strategy takes an integrated approach, recognising that the city economy is influenced by a range of factors, such as liveability and amenity, access to affordable housing for key workers and childcare for parents; a diverse and well educated community. The Strategy also recognises the influence of those factors more commonly associated with the economy, such as market access, sector specialisation, innovation and productivity.

6 24. The draft Strategy also recognises that many issues of interest to business and employees are the same issues that are important to residents. The high level actions set out in the draft Strategy and the more detailed actions in the draft Action Plans have been designed with this in mind. Environmental 25. Sustainability has been identified as a common theme of interest to all sectors of the economy. Specific actions appropriate to each sector have been incorporated in the draft Retail and Tourism Action Plans. BUDGET IMPLICATIONS 26. The costs associated with the development and release of the draft Economic Development Strategy, Retail and Tourism Action Plans are included in the Research, Strategy and Corporate Planning budget for 2013/ Provision has also been made in the 2013/14 budget for the delivery of priority projects across a range of Council business units. The financing of projects from 2014/15 and beyond will be considered on an annual basis and incorporated into capital and operating budgets as relevant each year. RELEVANT LEGISLATION 28. Local Government Act CRITICAL DATES / TIME FRAMES 29. The timetable below identifies milestones and key activities associated with the delivery of a final Economic Development Strategy and Retail and Tourism Action Plans. 29 July 2013 Council endorsement for the exhibition of the Draft Economic Development Strategy, Retail and Tourism Action Plans 31 July 2013 Exhibition period commences Briefing of key business stakeholders August September 2013 Briefing of internal and external stakeholders including: relevant Advisory Panels, industry briefings, and staff 30 September 2013 Exhibition period closes October November 2013 December 2013 / February 2014 Feedback consolidated and incorporated into the Economic Development Strategy, Retail and Tourism Action Plans Council adoption of final Strategy and Action Plans sought PUBLIC CONSULTATION 30. Consultation has occurred with key business and government representatives to inform the development of the draft Economic Development Strategy, Retail and Tourism Action Plans.

7 31. Where relevant, the findings from the extensive consultation that took place to inform the development of OPEN Sydney Future Directions for Sydney at Night have been incorporated in the draft Strategy and Action Plans. 32. It is proposed that during the exhibition period, briefings will be offered to key business and industry organisations, commencing with an event to be held on 31 July. 33. All key points raised during the public exhibition period and engagement with business stakeholders will be captured and provided to Council as part of the report proposing the adoption of the Economic Development Strategy, Retail and Tourism Action Plans. KIM WOODBURY Chief Operating Officer Andrea Beattie, Executive Manager, Research Strategy & Corporate Planning

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