“Jobs factory”: Hospitality’s out-sized role in the NT economy

The hospitality sector has lifted the lid on the sizeable contribution it makes to the NT economy. Read what is.

A snapshot commissioned by Hospitality NT has put the economic value of the industry to the Territory at more than $400m in 2023 – and growing.

Deloitte’s 2023 industry snapshot showed hospitality contributed $427.2m to the Territory’s gross state product last year and 838 registered businesses contributed $187.5m in taxes to federal and local government coffers.

Hospitality employs more than 17,000 workers, about 12.1 per cent of the total Territory labor force, with 54 per cent female employees.

Forty one per cent of the workforce is full time and 59 per cent part time.

Hospitality NT’s Alex Bruce called the industry a “jobs factory”.

“We have provided a copy of the snapshot to both major political parties and asked them to show their support to our industry through the next term of parliament,” he said.

“We need both sides to show they back our industry so that we can continue to grow jobs and improve the liveability of the Territory.”

The median employee age is 25 years with a 53 per cent average employee turnover rate.

But for the thousands already employed, the industry is in the middle of a skills shortage, particularly in regional and remote areas.

Hotel Darwin owner Penny Phillips said she employed about 25 staff at the Mitchell Street pub and would look at ramping up in readiness for the approaching Dry Season.

“We’ve got a mix of staff,” she said.

“We’ve got a number of girls that have been with us for quite a number of years and it’s great to have been able to hang onto them.”

Securing chefs is the biggest challenge, with 28 per cent of businesses struggling to fill the position.

Cafe and restaurant managers are also in demand with 22 per cent of businesses struggling to fill the role.

Bar attendant supervisors (19 per cent), kitchen hands (15 per cent) and bar attendants (16 per cent) are also in demand.

Penny Phillips from Hotel Darwin. Picture: Pema Tamang Pakhrin

Tourism also plays an out-sized role in the economy. More than 800,000 visitors travelled to the Territory in 2022-23 – 713,000 domestic travellers and 104,000 international visitors.

Their total cash contribution was $1.38bn to the economy with $1.23bn of that being spent by domestic visitors.

Across 106 Territory locations there were 283,000 rooms booked in 2022-23 with domestic visitors staying four nights on average with international visitors staying six nights.

Most hospitality businesses are in Darwin, with 37 per cent below the Berrimah Line.

Crime dominated the business landscape for the hospitality industry in 2023 with three-quarters of businesses reporting they had been impacted by crime and 42 per cent expecting crime to increase.

Coming off a relatively low economic base, 44 per cent of business operators expect their business to grow during the next 12 months.

“Overall, Hospitality is a strong industry that contributes significantly to the NT economy,” the report concludes.

“Hospitality provides many job prospects, especially for young adults, right across the NT.

“While there are challenges, if addressed and supported through engagement and collaboration,

these can become opportunities to further strengthen its contribution to the NT’s economic and

social fabric.

“It should also be noted hospitality positively contributes to the ‘liveability’ challenge that continues to impact recruitment and retention of the workforce in the NT, which is needed if it is to meet its stated economic objectives.”