Visitor numbers to Darwin's Territory Wildlife Park and the Alice Springs Desert Park have dropped by almost half since 2004, raising questions about their future viability, according to new government documents.
The Northern Territory's auditor-general has outlined the parks' questionable financial performance in its latest report to the NT parliament, citing their continued reliance on government subsidies through Community Service Obligation (CSO) payments.
These payments cover the losses of a government-owned entity implementing social policy or objectives, with Territory Wildlife Parks receiving $7–9 million each year.
However, the report also found the parks face potential financial collapse, with current liabilities of $1.6 million exceeding current assets of $1.2 million.
"Negative working capital indicates that, without support from the Northern Territory government, Territory Wildlife Parks is unlikely to have sufficient available funds to meet its financial obligations as they fall due," Auditor-General Julie Crisp said in her report.
"It is also an indicator of the potential for financial failure in the future without ongoing financial support."
Since 2004, the government-owned parks have operated at a loss of between $8–12 million each year.
The report also found the parks' popularity is in steady decline, with annual visitor numbers dropping from more than 160,000 in 2004/05 to about 95,000 in 2021/22.
'Prudent investment' needed to keep parks afloat
Shadow Parks and Rangers Minister Bill Yan said both the Wildlife Park in Darwin and the Alice Springs Desert Park were NT tourism icons, but there needed to be serious conversations about their operating and business models.
"I don't think we will ever get into a position where the revenue from visitation is going to be able to support those parks longer term, but the government certainly needs to make sure that we have effective facilities for tourists to come and see and get that territory experience," he said.
"By all accounts, there needs to be some upgrades and some refurbishment of the parks, and I think prudent investment should hopefully bring in more visitors."
In addition to the annual CSO payments, the NT government has spent $2.8 million on upgrades to the Territory Wildlife Park and gave the parks a $1.2 million lifeline to keep them afloat during COVID-19.
However, Mr Yan said future spends should be focused on improving exhibitions, particularly in Darwin.
"The upgrades were predominantly for car parking and other bits, and the visitor entrance, but there hasn't been, from what I can see, much investment into the exhibits within the park," he said.
"That's probably the critical investment."
In statement, Chief Minister Natasha Fyles said increasing visitor numbers was a key focus for the government.
"The recent investments at Territory Wildlife Park were targeted to contribute to its viability and long-term sustainability, and the Department of Environment, Parks and Water Security is working to ensure a sustainable operating model for the future," she said.
