Mining downturn hits hospitality industry
by Leon Gettler
Restaurants and takeaway food eateries in Western Australia and Queensland are struggling because of the mining downturn.
According to Australian Bureau of Statistic data, spending growth in the hospitality sector has fallen from 4 per cent in February 2015 to 2.4 per cent in February 2016.
While the hospitality trade was booming in the non-mining states, it was heading backwards in states relying on the mining industry.
In Western Australia, spending in February fell $30.3 million from the same month last year to $417.1 million. Spending in Queensland was also subdued, with spending falling by $43.2 million to $714.2 million.
Ben Dorber, manager of the ABS retail survey said the figures were very telling.
"Queensland and WA are both really weak – both of those states are down over 5 per cent compared to the same time last year – whereas for every other state growth is up," Mr Dorber told Fairfax Media.
“We have heard some anecdotal evidence from some of those takeaway providers about being affected by mines closing and directly affecting their businesses.”
In the non-mining parts of the country it was a different story.
In New South Wales, business grew by 7.5 per cent year-on-year to $1.17 billion. For Victoria, it was up by a healthy 5 per cent to $796.9 million. And the most impressive sales were in the ACT, rising a whopping 14 per cent.
Smaller outlets were doing it harder.
According to the ABS data, trade at smaller cafes, restaurants and takeaway stores decelerated more than large businesses in late 2015 and early 2016.
The figures show that retail sales were being driven by household goods retailing and department store spending during the month. On the other hand, spending at cafes, restaurants and takeaway stores actually fell. Food retailing overall was flat.
6th April 2016
