Business confidence spreading across Tasmania, says TCCI boss Michael Bailey

A POPULAR city cafe is spreading its wings as business confidence continues to soar across Tasmania.

Naser and Cheryl Daci are fitting out a second store in New Town. Picture: SAM ROSEWARNE

BUSINESS confidence in Tasmania is at its highest in 20 years, and it is not just Southern business owners who have a positive outlook, the Tasmanian Chamber of Commerce and Industry says.

Releasing the chamber’s latest quarterly business expectations survey on Tuesday, chief executive Michael Bailey said business confidence remained strong in the South and he was pleased to see growing confidence in the North and North-West.

“We’re seeing right around Tasmania a growth in business and, more importantly, confidence in the future,” Mr Bailey said.

One Tasmanian business that is expanding is popular Hobart bakery Daci & Daci, which is opening a new store on New Town Rd in the coming weeks.

Following the success of the Murray St cafe, owners Naser and Cheryl Daci decided to open a second European-style cafe.

“Opportunity knocked when the new site became available and we thought it was an ideal position,” Mrs Daci said.

“We felt ready to expand into another shop. We like to stay busy so we think this will be a great project.”

Mr Bailey said in the 20 years the chamber’s business confidence index had been running, the latest results were the best yet.

“There isn’t much confidence in the federal economy but great confidence in where Tasmania is heading,” he said.

He attributed the growth, particularly in the North and North-West, to a range of factors.

“I think businesses were comfortable with the outcome of the [State] Election, but, more importantly, what we’re seeing is the economy growing strongly in those regions,” Mr Bailey said.

“We’re seeing construction growing, the return of forestry, which is very important to those communities, and agricultural exports still very strong,” he said.

“It really is a perfect storm of good news for business.”

Tasmanian Chamber of Commerce and Industry CEO Michael Bailey. Picture: LUKE BOWDEN

Mr Bailey said the chamber was particularly impressed with increasing confidence in Launceston and the North-East.

He said the University of Tasmania relocation, the success of Derby as a mountain biking destination, and the Silos hotel and the CH Smith building developments in Launceston had contributed to business confidence in the North.

“Now it’s time to maintain this great opportunity that we’ve got,” Mr Bailey said.

“There are lots of issues that Tasmania is still facing.”

He said education and health needed to be improved, and the state needed to take greater advantage of population growth in Melbourne and Sydney.

“Both those cities are predicted to grow by 2 million each in the next few decades,” he said.

“What we need to understand as a state is how we can access those markets better, how we can get our products into the markets of Melbourne and Sydney and work better with those state governments to make sure that we can support the growth in those two communities.”

The survey results showed 59 per cent of business owners in the North-West had a positive view of the Tasmanian economy, and 27 per cent had a neutral view. In the North, 72 per cent had a positive view and 20 per cent were neutral. In the South, 69 per cent were positive and 27 per cent neutral.