KAVHA Economic Feasibility Study

Australia’s Department of Infrastructure and Regional Development commissioned the CIE to conduct an economic feasibility study of Kingston & Arthur’s Vale Historic Area (KAVHA).

A computable general equilibrium model for the Norfolk Island economy, previously built by the CIE, was updated to evaluate the contribution of KAVHA to the economy and the impacts of proposed enhancement to KAVHA. Consultations were also conducted to inform the modelling and development of options.

We found Norfolk Island’s economy has been shrinking, with Gross Territory Product (GTP) at AU$66 million in 2015–16. Tourism is a significant part of the Norfolk economy, making up about 58% of activity. KAVHA is a key draw: 78% of visitors go there, with 16% saying they wouldn’t have come otherwise—making KAVHA responsible for AU$5.1 million in tourism spending (range AU$3.5–6.7 million) and $4–8 million in GTP.

Yet, conservation funding fell to $440 000 in 2016–17, well below the ideal $1.3 million. A number of options, ranging from entry fees, better facilities, to governance improvements, were identified to enhance conservation and visitor experience which could boost visitation and economic returns.

DOWNLOAD (PDF)