Economist.com Cities Guide: Sydney Briefing - August 2005

News this month

The big dry

Like most of the Australian continent, Sydney is cursed by a shortage of water. The problem has been particularly acute lately—a drought across New South Wales has sent the level of the Warragamba Dam, Sydney's main catchment, to below 40%. April, the start of Sydney’s autumn, was hotter than March for the first time on record, and had a quarter of its normal rainfall (though there were heavy floods in Sydney at the end of June). Thirsty Sydneysiders are pushing for action, though they don't seem to like one possible solution put forward by the New South Wales state government: a desalination plant in Kurnell on Botany Bay, south of the city centre, where Captain James Cook first made landfall in 1770.

Bob Carr, the state's Labor premier, announced plans for the plant on July 11th. At an estimated cost of A$2 billion ($1.5 billion), the plant could ultimately produce 500m litres of water a day—one-third of Sydney’s needs—Mr Carr said. But he seems to be lonely in his enthusiasm: green groups, opposition parties and John Howard, Australia's conservative prime minister, have collectively condemned the scheme as too expensive and environmentally unsound—the plant would use a lot of power from Australia's mainly coal-fired electricity grid. Mr Carr has yet to propose a starting date. Sydney's dryness may persist for some time yet.

Trading places

As John Howard's government attempts to negotiate a free-trade agreement with China, a maverick diplomat at China's consulate in Sydney has complicated matters. Chen Yonglin defected to Australia in May, claiming his life was in danger in China because of his dissident views, particularly about government corruption and the poor treatment of the Falun Gong religious cult. He asked for asylum in June, but immigration officials declined his request and informed the Chinese consulate. Mr Chen then went into hiding, but continued to campaign for asylum through regular media statements.

Meanwhile, his supporters, including several leading Australian newspapers, criticised the government's rejection. In July, Australia granted Mr Chen a protection visa, which gives him the rights of a permanent resident, and extends to protect his wife and six-year-old daughter. China has condemned the action, accusing Mr Chen of “fabricating all kinds of lies” in order to stay in Australia. Just how this will affect the trade negotiations remains unclear.

From the top

Sydney's status as Australia's centre of business, finance and culture now faces a surprising challenge from the north, in the shape of Brisbane, capital of the state of Queensland. On July 16th, Peter Beattie, Queensland's premier, announced a A$4.5m advertising campaign to lure business to the northern “sunshine state”. Queensland promises cheaper business and property taxes than those in New South Wales (NSW), of which Sydney is capital.

Leading Sydneysiders reacted sniffily, with some suggesting they had no need to stoop to such tactics to persuade investors. But they would do well not to be complacent. Mr Beattie, riding a wave of popularity, has brought dynamism to his state, formerly a hub of conservatism. Its population and economy are growing faster than NSW. Brisbane also boasts fantastic beaches, nearby rainforests and plenty of sunshine.

As seen by others

Outsiders still see Sydney as Australia's top city, for now, at least. In July, Travel + Leisure, an upmarket and influential American travel magazine, announced that its readers had named Sydney as the “world’s top city” for the eighth time. The magazine asked readers to rate cities according to several categories, including food, culture, sights, shopping and people. Sydney just managed to outscore Bangkok, followed by Rome, Florence, Chiang Mai, New York, Istanbul, Cape Town, Oaxaca and San Francisco. Since the magazine started the award ten years ago, Sydney has lost first place only twice.

Happy return

Two years after closing for refurbishment, the once-unloved Hilton Hotel reopened in July. Constructed on a prime inner-city site in the 1970s, the Hilton won a reputation as one of the city's ugliest buildings. Adding insult to injury, two elegant 19th-century treasures were flattened to make way: the Royal Arcade, an 1882 Italianate shopping arcade, and its neighbour, Adams’s Hotel, dating from 1873. Sydneysiders still speak of their passing with disbelief.

That was then, however. After the A$200m rebuild, the new Hilton is a vast improvement. The ugly car ramps have been replaced by a swish new entrance, bathed in natural light, that complements the grand Queen Victoria Building just opposite. And the hotel now includes a fitting tribute to its missed predecessor: the Marble Bar (pictured), the only survivor from Adams’s Hotel and famed for its tiles and seven varieties of marble, is now in the new Hilton.
The London-based Hilton group has reported that the property is its biggest single-site investment, and it is in talks to sell the office tower and basement car park; the hotel itself is not yet for sale, but the company does not seem to be ruling this out.

Catch if you can

August 2005

Sydney Design 05

August 6th-21st 2005

This annual international design festival offers a feast of shows and events for anyone intrigued by modern design. The varied exhibitions range from “Houses of the Future”, which features six different houses with shapes and materials that challenge conventional design, to “Morris & Co”, which concentrates on the interior designs of William Morris, an influential British interior designer of the late 19th and early 20th centuries.

Also expect inventive installations and “design environments”, such as “Flip”, an array of weird modules in the courtyard of the Powerhouse Museum. This museum—Australia’s leading design venue—houses most of the shows and events, though exhibits can be found all over the city.

Powerhouse Museum, 500 Harris St, Ultimo, Sydney. Tel: +61 (02) 9217 0111. See the websites for Sydney Design 05 and the Powerhouse Museum.

More from the Sydney cultural calendar