Unprecedented development, particularly in the tourism sector, is generating a huge economic windfall for Tasmania, with no signs of it slowing down.
Across the state, business sector confidence is booming, as multiple multi-million projects take shape.
Launceston has benefited from a huge investment courtesy of the JAC Group, with the $28 million Silo Hotel project due for completion next month and work rapidly progressing on the CH Smith site.
Combined, the two projects are pumping $2 million a month into the Launceston’s economy.
Up to a 100 tradies a day are working on the silo project, which will open in June providing 108 rooms with eye popping views of the Gorge and the Tamar River Valley.
The development, transforming the old wheat silos into a 4.5-star hotel with conference and restaurant facilities, was the brainwave of JAC managing director Errol Stewart.
It’s hoped the new, quality accommodation rooms, using $7 million worth of Tasmanian materials, will reduce the demand for Airbnb .
Many buildings previously used as traditional rental accommodation have been removed from the rental lists and converted into lucrative Airbnbs to attract the accommodation spend of national and international tourists.
Across the road, Mr Stewart is combining forces with architect Scott Curran to turn the controversial CH Smith site into modern office space – the major client is the State Government which will lease offices for 350 Launceston public servants from a variety of departments – as well as 330-odd car parking sites.
The momentum looks set to continue, with a Development Application expected in a few months for the $50m Gorge Hotel on the site of the TRC Hotel.
The 130-room hotel, to be built on the corner of Patterson and Margaret Streets, will be an expansion of the Chromy Group’s development connecting to Penny Royal.
The Fragrance Group has indicated it will expand the Clarion Hotel in Launceston with a $50m expansion – the Hotel Verge will be located on the previously owned car-park in Cimitiere St with 86 rooms and convention areas.
Building work is also expected to start later this year on the $300 million development of the University of Tasmania campus at Inveresk.
In the state’s capital, 10 Murray St is tumbling down to make way for a luxury 128-room hotel on the waterfront to complete the Parliament Square development.
The floor-by-floor demolition of the former State Government office building is on track to be completed by the end of June.
Hobart’s hive of construction activity is being led by the $689 million redevelopment of the Royal Hobart Hospital and the reopening of the full Myer store site after flooding interrupted reconstruction of the building following fire damage in 2007.
The university’s investment in the state includes a $50 million, 450-bed student accommodation complex in Melville St, which will be funded by commercial partners and is due to begin by the end of the year.
Other significant projects in Hobart include the new H&M clothing store in Collins Street, while MONA’s $300 million plans to build HOMO, a hotel on their Berriedale site, heads the list of major commercial construction projects in the pipeline.