Renewal SA adding value to state’s economy
About Renewal SA’s contribution to the state
Renewal SA has wide and varied responsibilities across its role in urban renewal and development. These responsibilities include managing and facilitating urban renewal projects in South Australia, helping develop and maintain a vibrant Adelaide, and facilitating training and employment opportunities.
Renewal SA’s urban renewal projects in South Australia include facilitating residential and industrial construction and devleopment projects, managing the sale of residential and commercial lands, and replacing old South Australian Housing Trust (SAHT) dwellings with new homes. Recent projects include Tonsley, Bowden, Playford Alive, Glenside, Fort Largs, Port Adelaide and the Adelaide Riverbank – including the redevelopment of the old Royal Adelaide Hospital site and the Adelaide Festival Plaza.
Renewal SA also has a significant role in helping develop and maintain Adelaide as a thriving community, with the ultimate aim of strengthening the connection between people and the places they share and attracting people to the city to live, work and play.
Renewal SA fosters relationships and enables collaboration and partnerships that provide social and economic wellbeing for the communities in which they work. Key to this is Renewal SA’s Vibrant City agenda, which supports small venues, demonstration projects and grant programs – and Renewal SA’s delivery of activation, placemaking and public art activities – such as winter demonstration projects (e.g. Winterlicious and the Alpine Winter Village), Playford Alive Community Fun Days, Wonderwalls street art festival and the Laneway music festival to name a few. Placemaking activities facilitated by Renewal SA contribute to building communities for all South Australians to enjoy.
The purpose of The Economic Value of Renewal SA report is to identify and provide estimates of the fiscal contribution to the South Australian economy of projects and initiatives managed, undertaken or facilitated by Renewal SA.
Summary of Renewal SA’s activities and economic contributions
|Gross State Product||Employment|
Construction/development projects and land releases
|Current contribution to the economy while the projects are being constructed||0.24% ($242 million per year in 2016-17 terms or $1.9 billion in total over 2012-13 to 2020-21)||2590 jobs on average per year|
|Ongoing contribution shows that there are significant ongoing benefits even after the construction is complete – this is through owners/businesses use of an estimated $7.5 billion in new infrastructure||1.5% ($1.5 billion per year in 2016-17 terms)||1900 ongoing jobs|
|Small bars activation||$44 million (in 2016-17 terms)||415 ongoing jobs|
|Festivals and events||$88 000 for every 1000 additional overnight stays||1.3 additional jobs for every 1000 additional overnight stays|
|$16 million in 2015-16 terms||2008-2015: 739 jobs
2015-2016: 439 jobs
Real value added
Construction and development activities, and land releases facilitated by Renewal SA stimulate economic activity and raise aggregate emand in the state economy. The $709 million in capital expenditure, on average, per year on these projects is estimated to boost annual Gross State Product (GSP) during 2012-13 to 2020-21 by 0.24 per cent (equivalent to $242 million per year in 2016-17 terms or $1.9 billion in total over 2012-2021).
It is estimated that the $709 million in capital expenditure per year in 2012-13 to 2020-21 on construction, development, and land release activities also contributes nearly 2600 jobs, on average, per year to the South Australian economy. Once the development is complete, the use of the resulting infrastructure by owners and businesses is estimated to contribute over 1900 jobs to the state’s economy.
A positive flow-on impact for SA businesses
On the whole, South Australia benefits from construction and development activities facilitated by Renewal SA. Current Renewal SA facilitated activity is estimated to provide a significant boost to real value added in the construction sector. Industries such as retail trade, financial services, information and telecommunications – and professional services that support the construction industry through its supply chain – are also stimulated by additional demand.
Helping the SA community access affordable housing
It is estimated that Renewal SA contributed nearly 15 per cent of all dwelling units completed in SA in 2014-15. This share grew to over 16 per cent in 2015-16, equivalent to more than 1200 dwellings.
A more vibrant community, attracting additional visitors
Placemaking events implemented by Renewal SA also bring benefits to the state by attracting local, interstate and international visitors. Since 2013, placemaking events, such as the Adelaide Riverbank winter activations in 2016-2017, have attracted nearly 300 000 attendees. Expenditure by visitors on food and drinks, accommodation, transportation, entertainment and general shopping stimulate economic activity and would have an ongoing contribution to GSP and employment in South Australia.
It is estimated that every 1000 additional overnight stays as the result of a placemaking event will contribute an additional $88 000 in GSP and 1.3 additional jobs to the state (in 2015-16 terms).
Through placemaking, Renewal SA is developing diverse, sustainable and inclusive neighbourhoods that embrace their community and help unlock the economic, social and cultural potential of the city and state.
Creating a vibrant city
Renewal SA’s Vibrant City initiative has assisted with the development of small bars in the Adelaide CBD through the Small Venue License (SVL) case management service. Since the introduction of the SVL, Renewal SA has case-managed over one third of small licensed bars in the Adelaide CBD. It is estimated that the small bar activation facilitated by Renewal SA contributes an additional $44 million in GSP and 415 additional jobs to the SA economy.
Renewal SA also defined and delivered a number of innovative demonstration projects including a Public Art lighting project, place management projects, the City Makers grant program and the Hub Adelaide Spark entrepreneurs program.
Job outcomes through training
Through its Works Program Renewal SA’s provides local job seekers with accredited qualifications and hands-on experience in various industries. Economic benefits associated with the Works Program are delivered through work experience and pre-employment programs. It is estimated that the Works Program has delivered 739 paid employment outcomes within major development projects between 2008 and 2015. It is also estimated that in 2015-16, the Works Program led to 439 more South Australian jobs.