The project, which is going to be implemented by the government of Sydney as well by some private companies, can radically transform the landscape of Barangaroo suburb and the city in general.
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This development plan includes the construction of new Casino Events Centre, Multifunctional Convention and Entertainment Centre, and expansion of Exhibition Center (Whiteling, 2011, unpaged). This project can yield very good results for the community and investors.
However, one has to remember this plan will require considerable invest into infrastructure of this area. First, we can speak about the development of transportation infrastructure (roads, highways, seaports, railways, etc). The existing transportation infrastructure of Barangaroo may not have sufficient capacity to cope with inflow of visitors from Australia and all over the world.
Secondly, one should bear in mind that the new event centers can become the largest consumers of energy in this particular area. This is why it may be necessary to construct electrical power networks, generation plants or electric grid. Furthermore, this developmental project will inevitably involve changes in water distribution system of Sydney.
This includes the construction of a new pipe system, storage reservoirs, sewage collection and so forth (Goodman & Makarand, 2006). Finally, we need to mention recreational infrastructure that comprises such elements as parks, green areas, restaurants etc. Overall, people, who are responsible for the implementation of this expansion plan, should take these issues into consideration.
Each of these infrastructural elements is indispensible for successful work of event centers that are going to be constructed in Sydney. They will not yield considerable return on investment but without them this plan will not be put into execution.
In the future, this project may have great ramifications for Melbourne which is one of the largest tourist destinations in Australia as well as in the world. On the one hand, it will create stiff competition in the labor market. Many people, working in Melbourne hotels, restaurants, or casinos may be willing to look for employment in Sydney, especially if they will be offered a better compensation package.
So, there is great likelihood that many Melbourne service companies will have to incur great expenses on the recruitment and training of new employees. This is one of the challenges that they should expect. Their major task is to develop strategies for retaining the most qualified employees.
Apart from that, successful implementation of the Sydney expansion project can significantly diminish the attractiveness of Melbourne for tourists. However, such scenario is possible only if the new event centers will be superior in terms of customer service.
At any rate, Melbourne event centers, hotels, restaurants, or casinos will need to prove to the customers that they do offer the best ratio of price and quality.
On the whole, one should not assume that this Sydney expansion plan poses a threat to Melbourne; more likely, it will force Melbourne service sector to become more competitive and improve the quality of its services. Therefore, one should not regard this plan only as some negative phenomenon.
This example indicates that development projects in rural areas can entail a great number of consequences in the infrastructure of this city. Secondly, such projects can affect people and companies, located in other areas. It can also result into the changes in the labor market in the region.
Goodman. Alvin & Hastak Makarand. 2006. Infrastructure planning handbook: planning, engineering, and economics. NY: McGraw-Hill Professional.
Whiteling, Ian. 2011. “Australian city to invest billions in meetings infrastructure”. MR Australia. Available at: http://www.internationalmeetingsreview.com/