Price war over Perth parking
Parking in central Perth could become cheaper as carpark operators cut fees and offer specials to compete in the face of weaker demand.
The City of Perth plans to cut rates selectively and fast-track a pay-as-you-go system into its carparks after lower-than-expected parking revenue left a $3.8 million hole in its budget.
Wilson Parking Australia, the city's major private parking operator, has not reported a fall in activity but has introduced weekend and night rates and specials.
A report to Perth council blamed a downturn in business activity, construction in the city and the impact of the State Government's parking levy for a near-$1 million shortfall in parking revenue for the first three months of 2014-15.
It also revealed revenue had taken a hit from rival operators cutting their fees at nearby carparks to "well below" what the city-operated carparks charged.
_The West Australian _understands city officials believe competitors have been undercutting the city-operated carparks on block fees or by offering specials for certain times of the day.
Perth's acting chief executive Martin Mileham said an increase in carpooling, public transport use and cycling played a part in declining revenue.
"We actively encourage people to make use of public transport or use healthier travel options when visiting the city - for example, walking, cycling or carpooling - so some impact on parking revenues is a logical outcome," Mr Mileham said. He said the city would not consider raising fees to cover the budget shortfall.
The city was planning an advertising campaign to publicise its fee reductions and said it would pursue partnerships with sporting groups to increase revenue in some carparks, targeting out-of-hours revenue.
Wilson chief executive Craig Smith said the group had recently increased its specials for weekend parking in the CBD.
It had also seen growth in its book-a-bay option, which offered online specials.
