Retail and hospitality spending continues to soar

​Acting Lord Mayor Arron Wood will today release the final annual report of the Melbourne Retail and Hospitality Strategy 2013-17 which details the success the strategy has driven over the past four years.

"Our thriving retail and hospitality industries employ 66,664 people and contribute $5.7b to Melbourne's gross local product," the Acting Lord Mayor said.

"Melbourne is an increasingly popular visitor destination which means more customers for our retail and hospitality businesses. Last financial year we welcomed 12.4 million visitors, an increase of 9.5 per cent on the year before.

"We know that 95 per cent of all international overnight visitors to Victoria choose to come to Melbourne, which is testament to the strong tourism experience we offer."

In 2016 the retail and hospitality sectors contributed $5.7 billion to Melbourne's economy, a 3.5 per cent increase from 2015. 

The 2016 spending boom was driven by Melbourne's fast growing residential population, up by almost 12,000 people on the previous year, and increasing visitor and worker numbers. 

"The City of Melbourne employs a range of strategies and policies to stimulate growth in our retail and hospitality industries including event sponsorship, business grants, marketing campaigns and precinct support funding," the Acting Lord Mayor said.

"Central Melbourne's low retail vacancy rate of 2.7 per cent is now below the historical average of 2.9 per cent, which shows how popular space is in the city. We have doubled the number of international retailers compared with five years ago."

Small Business, Retail and Hospitality Portfolio Chair, Councillor Susan Riley, said retail and hospitality traders are the heartbeat of the city, contributing 6.1 per cent to the city's $92.1 billion economy.  

"Melbourne is a fashion and food capital. People are continuing to flock to the city for the premium shopping and dining experiences on offer across the municipality," Cr Riley said.

"This includes interactive retail activations, such as Shop the City, which brings promotions, special offers and extended trading hours to 1000 participating stores across three city blocks.

"Last year's Shop the City event generated an increase in foot traffic of 9.2 per cent over the average daily figure."

Over the past decade, the City of Melbourne has provided $8 million in grants to more than 360 businesses, leading to a $70.9 million economic turnover and more than 900 new jobs.

Cr Riley said: "In 2016-17 City of Melbourne's Small Business Grants Program provided 12 businesses with $286,000 in funding, which is expected to generate 82 new jobs, $7.1 million in gross turnover and $2.7 million in equity investment. 

"We are committed to helping build and maintain sustainable retail and hospitality sectors, we're investing $10.7 million on a range of initiatives designed to support the local economy, residents and businesses as the city goes through an unprecedented transformation in the coming years."

The one-day Shop the City event will run from 10am – 10pm on Friday 18 May and includes more than 300 special offers for shoppers.