HotSpotting: Cairns on the comeback trail as tourism revives after the crisis

CAIRNS looks ready to make a strong comeback in its economy and property market.

Having been hit hard by the global financial crisis, which reduced overseas tourism on which its depends, Cairns has shown signs of economic revival and unemployment in the region has halved.

In the 1980s, Cairns was one of the stars in the Australian property firmament, boosted by surging tourism and investment from Japan. Those glory days have long since faded and Cairns has been overtaken by Townsville as the key city in North Queensland.

However, there are signs Cairns is ready to challenge again.

Figures published recently indicate Cairns is one of Queensland's fastest-growing regions.

Nearly 5200 people moved to Cairns in the 2009 fiscal year, bringing its population to 164,356.

The 3.2 per cent growth put Cairns among the top four fastest-growing regions in the state, after Ipswich, Moreton Bay and the Fraser Coast.

According to Tourism Australia, the Cairns region is the fourth-most popular destination for international tourists in Australia after Sydney, Melbourne and Brisbane.

It is a popular travel destination for foreign tourists because of its tropical climate and proximity to attractions such as the Great Barrier Reef, Daintree National Park and Cape Tribulation.

Cairns has Australia's seventh-busiest domestic airport and sixth-busiest international airport.

A new $200 million terminal is now open and tourist numbers are improving. The latest figures show international arrivals at Cairns airport are up 30 per cent, with the number of Japanese visits increasing 45 per cent.

Improvements in the economy of Cairns and the far north show in unemployment figures.

The jobless rate for the region in September 2009 was 13.8 per cent but by November last year it was down to 6.8 per cent -- still above the national average of 5.2 per cent but trending in the right direction.

Thousands of jobs that were lost during the global crisis have reappeared.

The upswing has been buoyed by growth in the tourism sector and flow-on booms in related areas such as retail.

A new carpark at Cairns Base Hospital was opened in November as part of a $450m upgrade.

The old carpark will close to make way for major redevelopment.

The first stage of this will be construction of the new clinical services building, due for completion in 2013.

At the same time there are hopes for a second public hospital in Cairns, after an announcement in December that 20ha had been bought by the state government for "future health services".

A 10-point plan to establish the $240m Cairns cultural precinct has been established by Cairns Regional Council. Councillors have agreed to an action plan as the next stage towards construction at Trinity Wharf late this year.

The plan to upgrade an alternative route to the frequently flooded Bruce Highway has been hailed as "a multi-million-dollar lifeline for the far north" in the wet season.

Although it will take six years to complete, the sealing of the 155km stretch of the inland Hann Highway has been labelled "a vital economic saviour for the region".

The far north is crippled financially each wet season when flooding cuts the Bruce Highway for days at a time.

Meanwhile, there have been several positive events for tourism in Cairns.

Five hundred extra tourists a week could pass through the airport as a result of Cathay Pacific upgrading its Hong Kong flight to a daily service late last year.

Also, in November it was revealed that Japanese officials were pushing for a third direct aviation link between Japan and Cairns.

A delegation from Nagoya has been to Cairns, Sydney and Brisbane to talk about reinstating flights between the far north and their city.

At the moment, there are direct flights from Cairns to Osaka and Narita.

Another key event for tourism in November was the opening of a cruise ship terminal and the arrival of the first cruise vessel. The Silver Shadow docked at the new facility with 382 passengers and 276 crew members.

Growing income from conventions is in prospect.

Ten international conventions are expected to bring 8500 delegates spending $40m in Cairns over the next three years.

This follows a visit by the decision-makers of 12 prestigious conventions to the region, hosted by the Cairns Convention Centre.

The resources sector is not a major part of the Cairns economy, but a tin mine is being developed near the city.

Cairns-based Consolidated Tin Mines is making strong progress towards the start of its large-scale mining operation at Mount Garnet. The $125 million mine is due to start milling in 2013.

Managing director Ralph De Lacey says the mine has a potential 30-year lifespan and, based on projections, would produce one million tonnes of ore which would be processed into 5000 tonnes of concentrate, worth conservatively $100m a year.

Source: The Australian January 27, 2011, Terry Ryder