The redevelopment would have delivered an additional 4,500m2 of space for the convention centre as well as a hotel and an outdoor theatre.
In a media release on Thursday, the state government said the $1.6 billion cost of the redevelopment “cannot be justified at this time” with the money to be redirected towards a $1.5 billion Building Hospitals Fund. The government was expecting to bear the entire cost of the project.
The state has already spent $35 million on the redevelopment, first announced in January 2024, for early design, engineering and geotechnical work, as well as on the business case. The outcomes of this investment will remain in the hands of government going forward.
A $500 million cost for road and rail works within the project and the disruption to business events already secured for Perth were cited as additional reasons why the redevelopment has been “discontinued”.
“Our existing business events and tourism program is an important part of our government’s strategy to diversify the economy and ensure it remains the strongest in the nation,” said WA Premier, Roger Cook.
“This is an important focus for my government; however, I refuse to compromise on major projects that will deliver better health outcomes for Western Australians.
“We want to expand our major conference capacity, but it needs to occur in a way that delivers value for taxpayers and doesn’t interrupt the impressive forward program of business events activity.
“I thank the leaseholders for their commitment to the existing facility and to the future events capacity of Western Australia and look forward to working with them to find a new way forward, in the future.”
The chair of Business Events Perth, Bradley Woods – also CEO of the Australian Hotels Association WA – said the bureau and the association were “disappointed” by the decision to halt the redevelopment of PCEC.
“There remain significant opportunities to grow business events, conferences and exhibitions in WA,” said Woods.
“We recognise that there are many factors in play and commend the significant review and planning process which has been undertaken across public and private stakeholders, over the last four years.
“We respect the WA Government’s decision and remain focused on practical options to unlock capacity while still competing at the highest level.
“BE Perth, Western Australia’s convention bureau, is actively pursuing national and global business events and has identified strong support for even more capacity and additional facilities,” he said.
“We understand that planning and funding processes for major infrastructure projects evolve over time. Regardless of timelines, the business events industry remains committed to supporting Perth’s future growth and ensuring the state maintains world-class facilities to meet global demand.
“Perth and WA’s hotel industry has invested heavily in new, high-quality inventory and Perth Airport’s expansion will boost access and opportunity for WA.
“We must match that with the right mix of venues and facilities to win and host the world’s most prestigious meetings to sustain jobs and drive hospitality investment across the state.
“Western Australia and Perth are increasingly recognised for their impressive built environment, featuring landmarks such as Elizabeth Quay, WA Museum Boola Bardip, Crown Perth, Optus Stadium, RAC Arena and a range of new luxury hotels, alongside unrivalled natural assets and expansive, clear skies.
“This unique combination of world-class infrastructure and natural beauty has established the region as a highly attractive destination, supporting a resilient and expanding business events market,” said Woods.
When announcing the proposed redevelopment at the start of 2024, the WA premier called the centre “one of the oldest and smallest convention centres in Australia”.
“And one of the important things that we know is that if we are going to attract prosperous business events to Perth, we need to continue to upgrade the facilities we make available to them,” Cook said at the time.
“This vision…is all about making sure that we can continue to improve the convention centre so we can attract larger international events, which is all part of continuing to diversify through tourism and hospitality.”
