ALGA conference: Impact of COVID-19 and recovery in the City of Melbourne

Date: 22 June 2021Presenter: Acting Lord Mayor Nicholas Reece

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The City of Melbourne was the engine room of Victoria’s economy before COVID-19

City of Melbourne’s economy was booming before COVID-19:

• $104 billion in Gross Local Product – a record

• 1 million pedestrians on any given week day

• Central city economy home to almost 500,000 jobs

• Docklands coming of age and home to more than 72,000 jobs

• 52,000 international students live or study in central Melbourne, supporting our tertiary sector and stimulating our economy

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Pedestrian traffic in City of Melbourne plummeted

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This chart compares pedestrian activity year (magenta) to date to 2020-08-09 to last year (blue). This sensor provides an indication of commuter activity.

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Flinders Street Station Underpass pedestrian activity – 2020 vs 2019

This Year 7 Day Moving Avg Last Year 7 Day Moving Avg

Jan Apr Jul

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Student visa data shows a decline of 60,908 students compared with end of March 2020.

City supported 12,000 students with $200 food vouchers in “Our Shout” program.

International student community hit hard

4International student data current as of 7/06/2021. Source: Department of Home Affairs – current student visa holders. Refer Appendix for further details. ^Revised figures as of 31/05/21.*Student loss estimates current as of October 2020. Source: Victoria University, Mitchell Institute, Coronavirus and International Students (author: Peter Hurley)

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Stage 1: Immediate City of Melbourne response to COVID-19

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ZEROnet increase

in rates for commercial and residential

properties

BIKE LANES

CITY CLEANING

40kmsof bike lanes

fast-tracked in the central city

173People redeployed to

ensure city cleanliness,jointly with Victorian

Government

BUSINESS GRANTS

$5.5MIn business grants

to assist small to medium businesses

BUSINESS CONCIERGE HOTLINE

FREE PARKING

9500frontline workersprovided with free parking vouchers

22,000+businesses contactedthrough our expanded COVID-19 Business Concierge Service

RATES

A comprehensive

program of

support for local

businesses.

ARTS GRANTS

$2.4Min arts grants

to creatives who were hit hard because of COVID

PARKING PERMITS

3000hospitality parking

permits to help businesses with delivering takeaways

RECOVERY PACKAGE

$50MCOVID-19 recovery

packageto assist businesses

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Stage 2: Reactivation and recovery

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City of Melbourne and the VIC Government establish a $200 million Melbourne City Revitalisation Fund:

• Greening the City: 175,000 new trees, shrubs and grasses planted - 64 jobs.

• Revitalise the city’s laneways - 156 jobs.• 209 outdoor dining ‘parklets’: $ 9 million• 9 Precinct Associations supported with

$100,000 COVID-19 recovery grants.• Dozens of events reimagined: Music in the City,

Urban Blooms, Melbourne Fashion Week, Melbourne Food and Wine Festival, Comedy Fesitval, Christmas Festival, New Year’s Eve, Moomba, Rising

• FOMO marketing campaign, FOMO Fridays• Melbourne Money rebate on diners’ bills,

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Stage 2 continued: Reactivation and Recovery Budget

A Record $244.7 million Infrastructure Budget

Infrastructure program

• Creating more than 2800 jobs

• Queen Victoria Market precinct renewal

• Kensington Community Recreation Centre

Support for vulnerable residents

• $2 million to support people experiencing homelessness

• $2.5 million to support vulnerable older residents

• $4.8 million in rates discounts

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Are workers returning to the city?

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In May 2021, 45% of the Melbourne central city's usual office worker population was attending the office for work. All other capital cities in Australia are over ~70%.

Victorian office workers had been returning to the office up until commencement of state-wide COVID-19 lockdown on Friday 28 May 2021.

Data current as of 10/06/2021. Source: Property Council of Australia. Refer Appendix for further details.NOTE: The Property Council’s CBD office occupancy data has previously been presented as a percentage of overall office space. To provide a more accurate measure of the reactivation of the Australia’s CBDs, from Jan-21 this data will now be presented as a percentage of the pre-COVID rate of office occupancy, which is estimated at 90%. If a CBD achieves the same level of occupancy as the pre-COVID norm this will now be presented as “100%”.

34%27%

39%45% 45%

0%

20%

40%

60%

80%

100%

Jan-21 Feb-21 Mar-21 Apr-21 May-21

Office Attendance as a percent of Pre-COVID - Melbourne CBD

Source: Property Council of Australia

45%

68% 71% 71%78%

93%

77%

93%

0%

20%

40%

60%

80%

100%

Melbourne Sydney Brisbane Canberra Adelaide Hobart Perth Darwin

Office Attendance as a percent of Pre-COVID by CBD May-21

Source: Property Council of Australia

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Are visitors returning to the city?

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Arts Centre: 14 June 2020 – 13 June 2021

Variation in visitor activity across the work week.• By June 2021, pedestrian activity at the Arts Centre was the highest on Sunday but

overall was down by 68.4% compared to the same time in 2019.

• At City of Melbourne visitor centres (Fed Sq, QVM, and Town Hall) pedestrian activity was highest on Sunday but down by 78.8% compared to the same time in 2019.

• Visitor numbers at these centres are being impacted by recent lockdown and the lack of international tourists.

Arts Centre: 7 June 2021 – 13 June 2021

Pedestrian activity data current as of 13/06/2021. Source: City of Melbourne Pedestrian Counting System. Refer Appendix for further details.Visitor activity data current as of 13/06/2021. Source: City of Melbourne Visitor Centre Visitation data. Refer Appendix for further details.

Fitzroy, QVM, and Town Hall Visitor centres: 7 June 2021 – 13 June 2021

Events boost - weekly comparison

Week Comparison - Pedestrian Activity Compared to the 2019 BenchmarkMonday Tuesday Wednesday Thursday Friday Saturday Sunday

12-Apr 13-Apr 14-Apr 15-Apr 16-Apr 17-Apr 18-AprLast Week of the Comedy Festival 65% 62% 62% 72% 79% 87% 77%

03-Aug 04-Aug 05-Aug 06-Aug 07-Aug 08-Aug 09-AugLowest Days of Lockdown 2 13% 12% 12% 11% 9% 11% 15%

31-May 01-Jun 02-Jun 03-Jun 04-Jun 05-Jun 06-JunFirst Full Week of Lockdown 4 22% 18% 20% 18% 15% 20% 24%

source: City of Melbourne Pedestrian Activity

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Stage 3: Economic Development Strategy (Draft for consultation)

Commits us to key priorities:

• A business-friendly city: Invest Melbourne, Digital permitting, Business Concierge.

• A joint effort: Night Time Economy Advisory Committee, Precinct Associations, City Economy Advisory Board

• A creative resurgence (CBD to CED) • Postcode 3000 v 2.0 / Homes Melbourne• Beyond the Office (economic diversification)• Unlock climate capital• Diverse City – international students, start ups• Digitally-connected city

Vaccinate and open up

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