SLOW economic growth and poor resident retention is costing the region $828 million annually, Grampians Tourism says.
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In a bid to identify current barriers to growth Grampians Tourism has partnered with Wimmera and Grampians councils on a project called the New Resident and Workforce Attraction Strategy and Action Plan which aims to address barriers to long term resident retention and economic growth.
Ararat Rural City, Horsham Rural City, Northern Grampians Shire and Southern Grampians Shire Councils have all signed onto the project.
"The poor retention and lack of growth in new residents and workforce (will be addressed)," Grampians Tourism business manager Serena Eldridge said.
"Across the four Local Government Areas the population has grown by only 1.56 per cent between the 10 years from 2006 to 2016.
"By comparison, the population in Victoria has grown by 20.16 per cent in the same decade. This lack of population growth equates to a loss of approximately $828 million of gross regional product per annum for the region."
Furthering the problem is an ongoing labour shortage that Ms Eldridge said is expected to intensify with the development of the Bulgana Green Power Hub, Western Freeway bypass, Ararat Prison expansion and other major projects in the region.
"The Opportunities Pyrenees Ararat Northern Grampians (project) estimates that there will be up to 2000 new jobs in the region in the next 5 years," she said.
"The total labour force - including employed and unemployed looking for work - in the four local government areas declined by -1.63 per cent from 2006 to 2016, whereas the total labour force in Victoria grew by 21.83 per cent.
"Without action, the Grampians region will face significant economic and social challenges in the years to come. This is and will continue to be felt most in smaller, rural townships with the closure of local schools, government service offices and small local businesses that service these communities."
Each council involved will contribute some funding and staffing resources to the project and the Victorian Government's Stronger Regional Communities Fund is contributing $50,000.
Ararat Shire chief executive Tim Harrison said the project will market the region to "tree changers" and others who are fed up with city life.
He said it forms part of an overall strategy that brings the OPAN project and the Ararat East Development Zone together with it to move the region forward economically. Each project focuses on a different aspect of the barriers the region is currently facing.
"We need increased population to meet future economic needs but spinning off that is a range of needs like housing, and we need to make sure that grows with us," Dr Harrison said.
"(This project) is looking at attracting a particular targeted audience who have the means to engage with the market as it is now, so the housing issue isn't as great a need here ... as it is with other projects.
"With (the New Resident and Workforce Attraction Strategy and Action Plan) we're trying to identify people who see living opportunities in moving out here and how we can market to those groups."
Horsham Rural City Council and Northern Grampians Shire Council were both contacted for comment but were unavailable.
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