Business news from across the Northern Territory: Latest highlights include AirAsia to resume Northern Territory operations in March, Alice Springs recording over 2,100 registered businesses in 2024, the proposed Momentus Hotels and Resorts Waterfront hotel facing uncertainty, and the Federal Government committing to boosting the availability of affordable housing.

Also making resource news is Empire drilling the Territory’s largest well amid delay in fracking simulation, and Legacy mine cleanup stimulating regional jobs.

Tourism

AirAsia to resume Northern Territory operations in March

Indonesia AirAsia plans to restart its flights from Darwin to Bali in 2025, with three direct services each week commencing on March 22. This route aims to offer over 1,000 seats for visitors weekly, which is anticipated to enhance tourism and boost the economy in the Northern Territory. Government officials highlighted the significance of the flights return in promoting trade, investment, and leisure travel while providing better flight options and more competitive rates for Territorians. Tickets are currently available for purchase, starting at $189 for a one-way trip.

Proposed Momentus Hotels and Resorts Waterfront hotel faces uncertainty due to its location on a sacred site

The $100 million hotel project at Darwin Waterfront, planned by Singaporean hotel chain CEL Australia, faces uncertainty as it awaits approvals from traditional owners regarding a culturally significant site. The proposed hotel, consisting of 236 rooms and operating under the Momentus Hotels and Resorts brand, is set to be the first in Australia. Since its announcement in May, progress has been slow, and local business leaders have expressed growing concerns over potential opposition from Indigenous groups.

CEL Australia is seeking certification from the Aboriginal Areas Protection Authority (AAPA) and is in talks with traditional owners, but an agreement has yet to be reached. The site in question includes a small hill near the Convention Centre, noted for its cultural importance associated with the tawny frogmouth owl. There are rising worries that the project could be scrapped, as many corporations tend to steer clear of Indigenous cultural disputes, raising concerns about the viability of future developments in the area.

Local economy

Alice Springs has over 2,100 registered businesses in 2024

In Alice Springs, the business environment saw a net increase of six companies in the 2024 financial year, rising from 2099 to 2105. The Health Care and Social Assistance sector was notable, adding 27 new businesses and growing from 162 to 189. Most new ventures were small, with companies employing one to four people, increasing from 34 to 51. Despite a net loss of 51 businesses, introducing 57 new ones helped offset the decline. The retail sector lost eight businesses, while Accommodation and Food Services lost five. Nicole Walsh from the NT Chamber of Commerce expressed hope for lower interest rates in 2025.

Real estate

Federal Government commits to boosting the availability of affordable housing

The Federal Government has new funding for housing in Tennant Creek, including plans to build 12 two-bedroom homes for Indigenous people facing homelessness and women and children escaping domestic violence. The government is investing $3 million through Housing Australia and has pledged $32 billion for housing programs under the Homes for Australia initiative nation-wide, aiming to construct 1.2 million homes by the decade’s end. Additionally, $50 million has been allocated for the Northern Territory via the Social Housing Accelerator.

Resources

Empire drills Territory’s most significant well, announces delay in fracking simulation

Empire Energy has successfully finished drilling and casing the Carpenteria 5h well, which now holds the record for the longest lateral in the Beetaloo region at 3,310 meters, surpassing the previous mark set by Tamboran. The company has postponed fracture stimulation for this well until after the Northern Territory’s wet season, scheduling it for April, to reduce financial risks linked to potential weather delays. This move is a key operational achievement for Empire and the Beetaloo Basin, ensuring the well is contained within the targeted Middle Velkerri-B shale zone. Gas production is anticipated to commence in mid-2025, backed by a 10-year agreement with the NT Government to deliver 25 terajoules of gas per day.

Legacy mine clean-up enhances safety, stimulates regional jobs: Govt

The Northern Territory Government has announced a $5.5 million initiative to clean up legacy mine sites in Tennant Creek, with additional projects set for Alice Springs later this year. This effort is part of the Legacy Mines Small Mines Safety Program run by the Department of Mining and Energy, which aims to tackle safety hazards from past mining operations while generating local employment and economic benefits. The Tennant Creek project, overseen by DAC Enterprises, includes substantial remediation work, such as backfilling mine voids and implementing safety features. This initiative will create jobs the government said and involve local businesses, showcasing the program’s positive effects on regional economies. Future clean-up efforts are planned for Alice Springs and Pine Creek, financed through a levy imposed on mining companies.