Last week Council decided to proceed with the proposal to develop a 100-room 4-star hotel in the city centre.
There were a range of differing opinions in the community about whether the City should support this development or not. Council therefore spent a great deal of time discussing and debating the merits of the proposal, including whether it should receive investment from the City.
After carefully reviewing public feedback and incorporating a range of conditions into the project documentation, Council considered that the risks were low and the benefits significant. These include local employment from the $20m hotel construction, approximately 50 ongoing full and part-time jobs, rates and rental fees.
While we are often advised that a higher standard of accommodation is necessary in Karratha, our consultants advised that having a luxury hotel would also assist in attracting both business and leisure tourism to our region.
Council considered that the hotel fulfils a clear need, creates employment and income for the City and is a sound investment opportunity. It also continues the momentum we have recently gained through our beautiful new infrastructure, including the Leisureplex, Airport and Red Earth Arts Precinct.
It is notable that the funds deployed do not come from rate income, but from the businesses owned and operated by the City. We have healthy financial reserves and this investment has the potential to provide a long-term sustainable income stream not derived from rates revenue.
With significant resources projects in the pipeline and a growing conferences market, compliments of the REAP, it is critical we plan for the future so we don’t end up with an overpriced, undersupplied market. This development will promote Karratha as a great place to live, work and invest.