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TASMANIA & HOBART - Investment Destination Profile ::

Tasmania, Australia’s island state, offers many opportunities for investors.  Business confidence is high and there are plentiful, cost-competitive energy sources from natural gas and hydro electricity.  Shipbuilding, mining, energy, aquaculture, gourmet food and wine, information, tourism, and biotechnology are among the sectors which provide opportunities for investors.


MARKET SIZE


Tasmania's Gross State Product (GSP) reached $20,907 million in 2007-08.


KEY PLAYERS

Aurora Energy

Australian Newsprint Mills

Cadbury's Chocolate Factory, Tasmania

Cascade Brewery

Charles Davis Limited

Copper Mines of Tasmania

Emu Bay Railway

Federal Group

Hydro Tasmania

Mount Lyell Mining and Railway Company


Invest Tasmania: http://www.development.tas.gov.au


GROWTH FIGURES AND FDI FIGURES

In 2007‑08, Tasmania's Gross State Product (GSP) grew by 3.4 per cent, outstripping the growth rate of both New South Wales and Victoria. This result follows very steady growth of around 3.2 per cent over the past seven years.


KEY INVESTMENT AREAS

Key investment areas include:


Agriculture

Tasmania's temperate climate, coupled with its fertile soils and absence of any major pests and diseases, provide excellent conditions for its thriving agricultural industry.


Agriculture is a major industry in Tasmania representing an important component of the Tasmanian economy. Agriculture and value-added products provide significant overseas and interstate exports.


Agricultural activities in Tasmania fall into five main areas:


  • Traditional mixed farming enterprises incorporating broad acre cropping (including poppies and pyrethrum), wool and livestock production.
  • Dairy.
  • Fruit and vegetable production.
  • Viticulture and hops.
  • Alternative agricultural enterprises and niche products such as wasabi and ginseng. 
  • Olives, truffles, herbs, cut flowers and bulbs.

 

COMMERCIAL FISHING

Tasmania is home to a strong commercial fisheries sector comprising:


  • Wild fisheries, dominated by abalone and rock lobster production with a small amount of giant crab and deepwater trawling
  • Aquaculture, predominantly salmonids (Atlantic salmon and rainbow trout), Pacific oysters, mussels and scallops.


The gross value of Tasmanian fishing production in 2006-07 was $488 million.  This comprised $185 million of wild fisheries catch and $303 million in aquaculture production.


High-quality produce and minimal disease ensures that local production attracts a premium price in overseas markets.  The vast majority of Tasmania's fish products is sold interstate or overseas, including Hong Kong, Japan, Taiwan, USA and China.


FOREST INDUSTRIES

Tasmania is the most forested state in Australia endowed with vast forestry resources including:


  • Forest covering 50% of the state's landmass - just under half of which is reserved.
  • 23 per cent of Australia's hardwood plantation and seven per cent of softwood plantation areas.
  • Over 20 per cent of total Australian log production in 2006-07.
  • Value-added wood products including sawn logs, woodchips and veneers, a major input into Tasmania's manufacturing industry.


MANUFACTURING

Manufacturing is Tasmania's largest industry and remains an important and growing sector of the Tasmanian economy.  The manufacturing industry contributes over 15 per cent of the state's economic activity and employs more than 10 per cent of the state's workforce. 


Food and beverage processing, wood and paper products manufacturing and metal products manufacturing account for the bulk of Tasmania's manufactured goods.  Metal product manufacturing is the largest sector by income with the food and beverage-processing sector the largest employer.


Manufactured goods continue to be the state's main exports including world-competitive products in underground mining equipment, wind towers, marine sector, wood processing, automotive components, communications technology, lightning protection, aquaculture equipment and fine food and beverages.  Tasmania's main export markets for manufactured goods are South Korea, Hong Kong, Taiwan and Japan.


MINING

The extraction and processing of mineral resources, found mainly in the west and north west of the state, has historically been a significant sector of Tasmania's economy.  Those minerals currently extracted and exported are copper, gold, silver, iron ore, tin, lead and zinc.


Eight mines account for over 90% of total industry employment.

 

BIOTECHNOLOGY

In 2006 the biotechnology industry in Tasmania was valued at over $200 million, with growth opportunities for existing and new biotechnology enterprises.

 

ICT

The Tasmanian ICT and digital industries sector generates annual revenue estimated at $1.3billion, spends $9.5 billion on research and development, and employs around 2,700 people.

 

FDI / INVESTMENT POLICY

Australia’s Foreign Direct Investment policy is as follows:

  • An investor’s operations are independent from the relevant foreign government.
  • An investor is subject to and adheres to the law and observes common standards of business behavior.
  • An investment may not hinder competition or lead to undue concentration or control in the industries or sectors concerned.
  • An investment must be taxed on the same basis as other commercial entities.
  • The Government considers the extent to which investments might affect Australia’s ability to protect its strategic and security interests.
  • The Government considers the extent of Australian participation in ownership, control and management of an enterprise that would remain after a foreign investment, including the interests of employees, creditors and other stakeholders.

 

SPECIAL INCENTIVES

Tasmanian Department of Economic Development, Tourism and the Arts offers counsel on the following forms of assistance.


Its initiatives include business and industry development programs; support for innovation, science and technology; and export and marketing assistance.


Targeted assistance may be available and is assessed on a case-by-case basis, ensuring it is designed to meet the specific needs of individual clients and the best investment outcomes.


INVESTMENT DEALS

The Federal Government could consider the provision of investment incentives to strategic investment projects in limited and special circumstances where the project would generate significant net economic and employment benefits for Australia. Incentives could include grants, tax relief or the provision of infrastructure services. Incentives are considered by the Australian Government on a case-by-case basis, using the following criteria:


  • The investment would not be likely to occur in Australia without the incentive
  • The investment provides significant net economic benefits through:
    • Substantial increase in employment
    • Substantial business investment
    • Significant boost to Australia's R&D capacity
    • Significant benefit to, or investment by other industries, either users or suppliers (cluster investment) 

 

RESOURCES

Invest: http://www.development.tas.gov.au.


WHY INVEST IN TASMANIA AUSTRALIA

Hobart is an attractive center of investment for world-wide businesses due to its:

 

Strategic Location:

Tasmania is strategically located for business opportunities in Asia. Tasmania enjoys strong trade links into Southeast Asia, and relative proximity to China and India.


Time Zone Advantage: Tasmania’s time zone advantage, plus our cultural affinity with both the Asian and American/European business environments, provides a perfect business bridge between Asia and other western locations. Companies can benefit from ‘follow-the-sun’ operations because the close of trade in United States’ markets and the opening of European markets is in line with most Asia-Pacific centers.


Lower Cost of Living: The cost of living in Tasmania is generally lower than other regions of Australia. Inflationary pressures, as measured by the Consumer Price Index (CPI), are usually lower in Hobart than other Australian capital cities.

 

Agricultural Advantages: Our island status results in relative freedom from many pests and diseases. Bass Strait, the body of water separating Tasmania from the Australian mainland, is now an effective quarantine moat that protects the state’s agricultural industries.


Tasmania’s natural environment delivers a mild, seasonal climate with reliable rainfall and some of the cleanest air in the world. Together with rich, fertile soils, our location enables the production of world-class food and beverages and also serves as a tourism drawcard.


Tasmania’s counter-seasonality to the northern hemisphere also offers significant strategic advantage in food production and agri-business through our relatively late ripening season and ability to supply out-of-season fresh produce to northern hemisphere markets.

 

FACTS

According to Invest Tasmania:


  • Regulated industry: Tasmania's conservation system surpasses international benchmarks, creating an effective reserve system that protects land and ecosystems for future generations.  More than two-thirds of Tasmania's public land and 47 per cent of its forests are in reserve.


  • Resource advantages: 49% of the state's land mass is covered by forest.


  • Low cost base: Tasmania is a low-cost manufacturing region due to low labor, land and accommodation costs, low taxation severity, competitive energy costs and easy access to ports.


  • Stable, highly-skilled workforce: Tasmania has the lowest levels of labor turnover and industrial disputes in Australia and a skilled workforce with a proven track record of delivering world-class manufacture.


  • Innovation active - global recognition for ingenuity, with approximately 80% of Tasmanian manufacturing companies classified recently as 'innovation active'.


  • Exploration expenditure: a significant increase over the last three years, totaling $14.3 million in the six months to 31 December 2008.


TRENDS

Agriculture: The Tasmania Brand: The Tasmania brand has allowed for product differentiation and strong advances in market share: a trend that will continue as products like cherries, cool climate wines, truffles and wasabi gain greater recognition.



Current Investment Opportunities in Australia:


For current investment opportunities in Australia, please click here  :   http://investinaustralia.com/current-opportunities



 

REFERENCES

 

1)    Unknown, “Tasmania”, Austrade, 2010, http://www.austrade.com/TAS/default.aspx.

2)    Unknown, “Tasmanian State and Regional Indicators”, Australian Bureau of Statistics, 2009, http://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/1307.6Main+Features4Jun+2009.http://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/1307.6Main+Features4Jun+2009.

3)    Unknown, “Resilient Economy”, Invest Tasmania, 2010, http://www.development.tas.gov.au/invest/a_strong_economy.

4)    Unknown, “Key Industries and Opportunities”, Invest Tasmania, 2010, http://www.development.tas.gov.au/invest/key_industries_and_opportunity

5)    Unknown, “Australia Foreign Direct Investment Policy”, Australian Government, 2010, http://www.firb.gov.au/content/_downloads/Australia's_Foreign_Investment_Policy_September_2009.pdf.

6)    Unknown, “Assistance”, Invest Tasmania, 2010, http://www.development.tas.gov.au/invest/assistance.

7)    Unknown, “Inward Investment in Australia”, lowtax.net, 2010, http://www.lowtax.net/lowtax/html/offon/australia/ausinc.html.

8)    Unknown, “Why Invest in Tasmania”, Invest Tasmania, 2010, http://www.development.tas.gov.au/invest/why_tasmania.

9)    Unknown, “Key Industries and Opportunities”, Invest Tasmania, 2010, http://www.development.tas.gov.au/invest/key_industries_and_opportunity

10) Unknown, “CIA World Factbook: Australia”, CIA, 2010, https://www.cia.gov/library/publications/the-world-factbook/geos/as.html.

11)  Unknown, “Foreign Direct Investment Inflows”, Australian Government, 2010, http://www.business.nsw.gov.au/aboutnsw/Trade+and+Investment/B7_foreign_dir_inv_inflow.htm.

12)  Unknown, “Goods exported from Australia: top 30 destination countries, 2009–10p”, Australian Government Office of Economic & Statistical Research”, 2010, http://www.oesr.qld.gov.au/products/tables/goods-exported-aus-top30-destination/index.php.

13)  Unknown, “Top Commodity Exports of Australia”, Top Foreign Stocks, 2010, http://topforeignstocks.com/2009/07/17/top-commodity-exports-of-australia.

14)  Unknown, “Why Visit Australia?”, Love to Know-Travel, 2010, http://travel.lovetoknow.com/wiki/Why_Visit_Australia.

15)  Unknown, “Australia’s Culture”, Australian Government - Tourism, 2010, http://www.australia.com/about/culture.aspx.

16)  Unknown, “About Australia: People, Culture & Lifestyle”, Australian Government, http://www.dfat.gov.au/facts/people_culture.html.

17)  Unknown, “CIA World Factbook: Australia”, CIA, 2010, https://www.cia.gov/library/publications/the-world-factbook/geos/as.html.

18)  Unknown, “Australian Facts & Figures”, Australia Travel, 2010, http://www.australiatravelsearch.com.au/trc/facts.html.

19)  Unknown, “Australian Facts & Figures”, Australia Travel, 2010, http://www.australiatravelsearch.com.au/trc/facts.html.