Consumer spending in the Cairns Local Government Area has increased over the past year, despite the impacts of COVID-19.

However, the trend looks to have been a direct result of the Federal Government’s support, particularly JobKeeper and Job Seeker.

Total consumer spending in the Cairns LGA for the year ending 31 August 2020 was $3.16 billion, an increase of 2 per cent on the previous 12-month period ($3.08 billion), according to Spendmapp, a browser-based analytics tool.

Developed by Geografia, Spendmapp uses bank data to measure consumer spending, of both locals and visitors, in a geographic area over time.

The Spendmapp data revealed that while there was a 15.3 per cent reduction in visitor spend, this was offset by significant increase by Cairns locals (up 10.3 per cent on the previous year).

There was also a 4.3 per cent decrease in the amount Cairns residents spent outside the region, and a 2.6 per cent decrease in online spend by Cairns residents.

Spendmapp analysis, which uses EFTPOS and credit/debit transaction data, showed a sharp dip in consumer spending in April 2020, but Government support was pivotal in supporting the rebound in the Cairns region.

Notably, when these two payments were at their maximum levels (up until the end of September), they were delivering about $80 million a month in direct government support to Cairns residents.

“This analysis underlines the importance of government interventions to support the economy in times of crisis.” Mayor Manning said.

“Council has recognised this and it’s why we implemented a series of initiatives, such as the three-month payment extension for Council’s February 2020 half yearly rates and subsequent implementation of a rates hardship policy, a dedicated investment incentive policy aimed at stimulating local development, and a record capital expenditure program of $181 million for 2020/21.”

The stepped phasing out of the JobSeeker supplement (extended to March 2021) and the JobKeeper payment (to end on 28 March 2021), coinciding with the region’s traditional slow wet season, could present significant challenges for the Cairns economy.