Economic SectorsCessnock City Council recognises that the wine and tourism industries are an integral and important part of the future economic development and employment growth within the area. Support for the continued competitiveness of the tourism industry and the creation of an environment where businesses can succeed are central to Council’s objective.
The following factors combine to make a positive investment environment in Hunter Valley Wine Country:
The Hunter Valley wine-growing area is Australia’s oldest wine region and one of the most famous, with around 4,500 acres under vine. The vineyards of Pokolbin, Rothbury, Mount View and Allandale with their rich volcanic soils tendered by entrepreneurial vignerons, are also the focus of a thriving and growing tourism industry. Both wine production and tourism are expanding industries.
Hunter Valley Wine Country has around 60 wineries plus 80 independent grapegrowers. Most of the Hunter’s fine table wines come from the Pokolbin area. These wines are world-renowned and contribute to the region’s export growth.
Approximately 39 million litres of wine was produced in the Hunter Valley in 2004/05 at a value of $273 million. Total turnover in the wine industry was estimated at $362 million, with flow-on effects of $231 million. Therefore, the value of total output generated by wine production in the Hunter region is $594 million in 2004/05.
The Hunter Valley Wine industry has seen a recent surge of investment in winemaking capacity and a pipeline initiative that will help to stabilise vineyard production. Major wineries, including McWilliams, Drayton, McGuigan, Rosemount, Tyrrells, Rothbury and Tulloch have committed to multi-million dollar investments in increased crushing, bottling, fermenting and production capacity.
The $18 million Lower Hunter Water Pipeline Project, will provide irrigation water to around 250 properties in the lower Hunter vineyards. This will increase the productivity and grower returns from existing non-irrigated vineyards and promote investment in new vineyards with the security of a guaranteed water supply.
In turn, increased productivity and increased investment in new vineyards will create opportunities in downstream investment in the wine sector. It has been estimated that the pipeline project will lead to additional investment in the area of around $140 million.
The Hunter already crushes more than twice the tonnage of grapes it grows, with that ratio set to increase. It has become the natural processing hub for vineyard expansion under way throughout the region and in the NSW west because of the area’s proximity to suppliers, export ports and the Sydney market, winemaking expertise, marketing experience and the Hunter brand.
The Hunter is one of the most important markets for national and international tourism in NSW, ranking as the most popular tourist destination outside Sydney. In turn, the lower Hunter vineyards represent the single most important tourist attraction within the Hunter region.
Hunter Valley Wine Country is considered a relatively established tourism destination, but the tourism and hospitality industries in Hunter Valley Wine Country have experienced significant growth over recent years. Approximately one and a half million visitors are attracted to Hunter Valley Wine Country every year, and visitor numbers and overnight stays are continually expanding, providing an impetus for further investment and employment within the area.
Tourism in the area generated $220 million for the local economy in 2008. Visitation for the same period was 2.7 million.
Recent research undertaken by the Hunter Valley Research Foundation for the Hunter Valley Vineyard Association estimated that total direct employment in the Vineyards district was 4,700. A further 2,100 indirect jobs were created by the flow-on effects.
Confidence in the economic future of Hunter Valley Wine Country is strong, as indicated by the growth in investment.
Despite the shift of employment from the primary and secondary industries to tertiary industries that has occurred over the last decade, Cessnock is striving to maintain a diversified economy.
Cessnock is an important producer of aluminium, with the Hydrosmelter at Kurri Kurri generating 15 per cent of Australia’s output. The majority is exported around the world while around one quarter remains in Australia for use in the building, transport and packaging industries.
HydroKurri Kurri and Orica Explosives are major employers in the area, taking advantage of the abundant labour, spacious sites and proximity to overseas markets. A large number of manufacturing, engineering and mining support businesses are located in the Kurri Kurri/ Weston industrial area, contributing significantly to local employment.
The Hunter Economic Zone has become a regional focus for employment. The Hunter Economic Zone has the potential to attract employment-generating industries such as:
Clothing, textiles and rural industries are also important to Cessnock. Poultry farming contributes $15 million per year and there is substantial investment in chicken meat and egg production, timber milling, dairying and beef.
