Survey of CBD businesses highlights pain coming with paid parking expansion
Smashed by doubled parking fees, CBD businesses have painted a bleak picture for businesses in the firing line of Townsville City Council’s paid parking expansion. Read their survey feedback.
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CBD businesses being smashed by doubled parking fees have provided a gloomy preview of the pain heading for businesses in North Ward, South Townsville and Pimlico, when paid parking is expanded next year.
Despite Australia being gripped by a cost of living crisis, the majority of Townsville City Councillors voted against pausing and consulting with the community about doubling parking fees to $2 per hour and expanding paid parking to areas around The Strand, Gregory St, Mitchell St, Palmer St and the Fulham Rd medical precinct from January 6, 2025.
Rather than speaking with affected businesses, councillors relied on PSA Consulting’s 2022 Parking Report, which looked at existing parking supply and demand within and nearby Townsville city, to forecast future parking growth and utilisation.
Following the council’s parking fee hike on July 29, a CBD business survey conducted by the Townsville Bulletin has highlighted the challenges faced by struggling businesses, who want the council to reconsider its parking approach.
Speckled Hen Antiques and Collectibles
As one of the longest privately owned businesses in the CBD, Speckled Hen Antiques and Collectibles partner Ian Fleming said they had seen the viability of the CBD as a retail centre rapidly diminishing.
“Visitors to Townsville regularly ask what has happened to Townsville – as this is often their only contact with the city,” Mr Fleming said.
“I understand the council’s position and the need to raise revenue. While the proposed parking fees are not excessive in comparison with southern capital cities, locals compare them with the local shopping centres which are free, and often under shade.
“This is just another reduction to shoppers available to the city traders and may well prove the last straw added to the camel’s back – many traders have left this year, and I know several are considering their options as their current leases become up for renewal.”
Mello Cafe
After recently celebrating their fifth anniversary in the CBD, Mello Cafe owner Danielle Davies said increased parking costs were negatively impacting both businesses and employees in the city.
“Many workers aren’t in the city for just two hours, and there isn’t sufficient all-day parking. Additionally, if someone is going to court, they cannot predict how long it will take,” Ms Davies said.
“The overall impact of parking fees has been negative. With the recent increase, fewer people are willing to come into the city.”
She said their business relied on local workers as its main clientele, and if their customers found parking fees unaffordable, many would choose to work from home instead.
There was also the concern that more people would turn to suburban shopping centres.
“The cost of parking has already discouraged many from visiting the city, leading them to prefer suburban shops instead,” she said.
“One major challenge is finding staff willing to pay for parking, especially since we have limited parking spaces available.”
My MaLi
My MaLi owner Lisa Hullick said parking has always been a big issue for the city centre.
While the council has traditionally played a supportive role by providing free CBD parking every December to “substantially” increase customer numbers, she said council has refused to have any communication with store owners about the increase in paid parking fees.
She said the parking increase had a negative impact on her customer numbers, adding to the pressure created by the increased cost of living.
“Cost was an issue at $1 per hour so no one will be happy to pay more. I have already had customers stating that they are not happy with the increases,” Ms Hullick said.
“(Customer) numbers are definitely down. Many locals refuse to pay for parking and shop at the larger shopping centres where there is plenty of parking and it’s free,” Ms Hullick said.
“There is also the issue of 2 hour parking where shoppers risk a big fine if they are late getting back to their car.”
She said it was embarrassing to have to explain over and over again the reasons for the sad state of the city heart.
“We feel very let down by the council with no communication and feeling like the city centre has been put into ‘the too hard basket’.”
Betty Blue & The Lemon Tart, Papa Christo’s
After a considerable investment to transform the CBD building hosting Papa Christo’s deli, business owner Chris Christensen was in favour of timed parking in the CBD but opposed the increase in parking costs.
“We haven’t found any immediate change to trade at this stage. I think any increased cost provides an opportunity for the consumer to take a moment to reconsider some habits,” Mr Christensen said.
“I feel it would be safe to assume some customers will look elsewhere but the majority of our customer base will remain as they reside or work within the CBD.”
He said inflationary increases were the biggest contributor to costs within the business.
“Where costs from suppliers were staggered and able to be managed periodically, now we find increases arriving simultaneously,” he said.
Empire Alternacade and Events
While Empire Alternacade and Events hadn’t been too affected by the hike in parking fees due to its later trading hours, owner Jason Lynch said he felt for his fellow business owners, whose customers might be “thinking twice about dropping into the city”.
“It is possibly easier to get a park now as there are less people hogging spaces in the day time,” Mr Lynch said.
“Yes I do think … it will have negative effects on retailers in the city. We trade seven nights in the city and there is close to no foot traffic between Sunday and Thursday.
“Thankfully we have a good number of regulars that support us. It would be better if more places were trading to increase overall vibes and traffic in the CBD at night.”
Chamber roasts council’s paid parking approach
Townsville Chamber of Commerce chief executive Heidi Turner said the council’s decision to double parking fees was a major concern for the Chamber members operating in the CBD, whose feedback has been “overwhelmingly negative”.
“Townsville’s CBD lacks the amenities of larger cities like Sydney or Brisbane, and public transport isn’t a practical alternative here. Comparing our parking fees to those of major cities or regions with significantly lower council rates isn’t productive,” Ms Turner said.
“The parking fee increase is effectively an additional tax on CBD workers, and with private parking rates rising as well since the council parking increase, it’s further driving up the cost of doing business.
“Speaking to CBD retailers it’s clear that over many years parking fees and cashless systems have already deterred both locals and visitors from the CBD, and this increase only adds to the challenge.”
She was already hearing that customers were choosing suburban shopping centres where parking was free.
“CBD businesses are dealing with rising costs across the board — wages, insurance, energy, inflation, and more. Consumer spending is also decreasing, making survival difficult,” she said.
“The lack of consultation prior to (Townsville City Council’s) budget being passed, particularly on parking, has only added to these challenges and voting against consultation when businesses have expressed concerns and confusion is not at all business friendly.
“The challenges we have seen caused by paid parking in the CBD will spread to Fulham Road, Palmer Street, Gregory Street and the Strand should paid parking go ahead at the end of this year.”
With the CBD facing several challenges, including vacant spaces, anti-social behaviour, paid parking and a lack of vibrancy, she said collaboration was needed between all levels of government and the private sector to build a viable, vibrant CBD precinct that attracts both people and businesses, rather than initiatives that deter people.
“With tens of thousands of cruise ship passengers expected next year, we have a critical opportunity to create a city heart where people want to spend time and money,” she said.
“The Chamber continues to advocate for better consultation on decisions that impact the business environment in Townsville.”
Townsville City Council responds to paid parking criticism
A Townsville City Council spokesman said Townsville CBD’s issues were ongoing and existed prior to the council’s introduction of increased parking fees on July 29.
Questions were not answered about paid parking consultation, the community’s paid parking feedback, the issue of customers being driven towards suburban shopping centres, or the future impact of expanded paid parking on North Ward, South Townsville, and Pimlico businesses.
“Like everyone, council is not immune to the challenge of rising costs across the board,” the spokesman said.
“The increase in paid parking fees and locations will balance the needs of businesses, residents and workers and enable council to deliver the core services the community deserves.
“Revenue included in the 24/25 budget for increased and new paid parking is $2,020,760 which is calculated for six months to account for new parking meter installation.”
This revenue will go towards delivering core services and the maintenance of much-loved community assets like the Strand, which costs more than $6 million annually.
He said it wasn’t solely a local government’s responsibility to enliven the city, although the council was investing considerably in grants such as the City Activation and Housing Incentive Policy, activating vacant shopfronts and spaces through council leases, extending leases on council buildings such as the Cbar to allow further private investment, and the recent approval of a new office tower to be constructed on Walker St.
The council was committed to working with all levels of government, businesses and the wider community to enliven and grow the city, recently reallocating funding to enable the much-loved Reef HQ to take pride of place in our city once again.
“Council is proud to work hand-in-hand with Townsville businesses to help grow Townsville and maintains a high level of local procurement. In 23/24, council’s expenditure with local businesses was $231 million, with 656 local suppliers engaged,” he said.
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Originally published as Survey of CBD businesses highlights pain coming with paid parking expansion
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