The region’s business confidence is the highest in the state, according to the Tasmanian Chamber of Commerce and Industry’s Q4 Survey, and the number of developments underway, jobs growth and retail sales all point to that attitude continuing into 2019.

We spoke with three key organisations – Northern Tasmania Development Corporation, Launceston Chamber of Commerce and Cityprom – to help us sum up business in the region this year.

Business confidence is heartening, Northern Tasmania Development Corporation chief executive Maree Tetlow said, but more could be done to take advantage of that.

“The business confidence has increased over the past 12 months, which is very important, but we could continue to leverage that and support business to invest in their equipment and commercial premises, or establish [businesses] or expand,” Ms Tetlow said.

Construction projects like the C.H. Smith building and Milledge Lane are the visual representations of positive business activity, but the city’s newly-constructed pedestrian shopping areas are also attracting crowds.

Brisbane Street Mall’s redevelopment as a major retail precinct and the upgrades for Civic Square and Quadrant Mall have received mixed responses, but have drawn more people into the CBD, Cityprom executive officer Steve Henty said.

“They’ve been done with varying success. The Quadrant Mall probably took a bit longer than was first expected, and we’ve seen a little bit of shop vacancy in there,” Mr Henty said.

“It’s important to remember that those developments are part of the wider City Heart project. When you look at the success of The Avenue design, we’re certain to have more of that type of style with trees, wide footpaths, pedestrian-focused spaces expand through the CBD,” he said.

While footfall might be strong, not all of Launceston’s businesses had a good year, Launceston Chamber of Commerce executive officer Neil Grose said.

“Launceston had a really tough winter, particularly on that retail side of things,” Mr Grose said.

“It’s almost a two-speed economy in Launceston, with construction and the business of business going very well, but that’s not translating as strong as we’d like into the retail space.

“Foot traffic is about the same, or a little bit higher, transactions are about the same, or a little bit higher, but the average quantity of that transaction is a lot less. Whereas someone might spend $100 on something a year ago, this year they’ll spend $60 on it. Same number of transactions, the same number of people in the shop, but half the amount being spent. The average sale is down,” he said.

Anecdotally, retailers selling fashion have lessened their exposure as more of this type of shopping has gone online, while homewares purchases and experience-based stores, such as health and beauty and hospitality, have increased.

“Most people – once they know their size, once they know what they like – it’s very easy just to get online and order what they like,” Mr Grose said.

“The real strength in retail now seems to be in homewares, so pots and pans and that sort of thing. It’s a growth area, particularly when you’ve got vibrant CBDs where you can go and compare one store to another.”

Mr Henty said shoppers were looking for more experiences than simply purchases now, which was changing the makeup or the CBD.

“There’s a change in the way people are looking at retail and visiting their CBDs ... people are finding [Launceston to be] destination to come and do their shopping and dining and more health and beauty,” he said.

Tasmania’s ageing population plays multiple roles in the region’s business.

The state’s demographic already shows the population is older than the national average, but many new residents also fit into an older demographic, which means more younger people and families are needed to keep the Northern Tasmanian economy going.

“We’re attracting more older people back to Launceston,” Ms Tetlow said.

“Our ageing population is going to be an issue for us, but I think in the last 12 months a lot of people are acknowledging that population will be a focus. We need to have a focus on attracting working age people back to Launceston, or encouraging those that are here to stay longer – they are going to be the workforce and business owners of the future.”

One of the ways to attract the people that will help Launceston and Northern Tasmania thrive is to sell the positives of living and working here, but this can be hindered by business owners using their networks to find staff, rather than casting a wider net.

“People won’t consider a move for a job if they can’t see a job that will allow them to continue to sustain their lifestyle,” Ms Tetlow said.

“We tend to rely on tapping people on the shoulder a lot for work, so it’s your network. The downside of that is that people who are interstate, or people who are looking to return to Tasmania, can’t see the jobs because we’re not highlighting them,” she said.

A strong economy leads to greater confidence, which Mr Grose predicts will continue while governments – both local and state – continue to spend within the region.

“If you think of small councils, quite often they will be a third of the economic activity in any region,” he said.

“It’s really important that local government spends, as well as state government. State government having a really ambitious infrastructure spend breeds confidence within a community.”

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