$8.5M MOTEL/CONFERENCE CENTRE FOR WAGGA WAGGA
A classy new motel with conference facilities worth $8.5m planned for Edward Street and Lake Albert Road.
The November 29, 2011 issue of the Daily Advertiser contained an article announcing that construction was to begin on Wagga Wagga's latest motel. The total investment in this site will be $8.5 million and when complete it will feature 81 hotel units, a 100 seat restaurant, a 250 seat conference centre and 125 parking spaces on 7,729sqm of land.
The conference centre is expected to be a drawcard that brings business and visitors to Wagga Wagga that would normally not have visited because of a lack of supply for these facilities in the city.
So besides a new place to have lunch and some additional traffic why would the average Wagga Wagga resident care? To answer this question the Wagga Wagga Council's Commercial & Economic Development Directorate used economic modelling software called Remplan.
We looked at the effect on the economy of the additional visitors. If we estimate conservatively that the new conference centre is booked for 26 events a year that draw 250 visitors and split those visitors equally between day-trips and people that spend 2 nights in Wagga then we have a total 6,500 new visitors to our area.
Under this scenario Gross Region Product is estimated to increase by $1.285 million (0.03 %) to $3,791.437 million. Contributing to this is a direct increase in output of $1.456 million, 9 additional jobs, $0.412 million more in wages and salaries and a boost in value-added of $0.712 million.
From this direct expansion in the economy, flow-on industrial effects in terms of local purchases of goods and services are anticipated, and it is estimated that these indirect impacts would result in a further increase to output valued at $0.602 million, 2 more jobs, $0.147 million more paid in wages and salaries, and a gain of $0.257 million in terms of value-added.
These industrial effects represent the following Type 1 economic multipliers:
Type 1 Multiplier: Includes the Direct Effect + Industrial Effects (1). For example, if you have a Type 1 output multiplier of 1.57 then for every direct one dollar increase in output you would expect to see an extra $0.57 of activity generated within the region.
The increase in direct and indirect output and the corresponding creation of jobs in the economy are expected to result in an increase in the wages and salaries paid to employees. A proportion of these wages and salaries are typically spent on consumption and a proportion of this expenditure is captured in the local economy. The consumption effects under the scenario are expected to further boost output by $0.589 million, employment by 3 jobs, wages and salaries by $0.140 million, and value-added by $0.316 million.
Under this scenario, total output is expected to rise by $2.647 million. Corresponding to this are anticipated increases in employment of 14 jobs, $0.698 million wages and salaries, and $1.285 million in terms of value-added. The total changes to economic activity represent the following Type 2 economic multipliers:
Council's Economic Development team is available to discuss enquiries you may have regarding investment opportunity, business expansion or the construction approval process. Please call customer service 1300 292 442.
