Local Spending Holds Steady
Published on 29 September 2026
Residents Continue to Back Colac Otway Businesses
New spending insights for August 2026 show that Colac Otway's economy remains resilient, with local residents continuing to support local businesses and visitor spending providing a substantial contribution to the region's economy.
Analysis from SpendMapp found that total local spending reached $38.4 million in August, demonstrating stable economic activity despite ongoing cost-of-living pressures and a challenging broader economic environment.
Residents Choosing Local
A key positive for local businesses is the continued commitment of residents to spending within the municipality. Local businesses captured 40.1% of resident spending, a figure that remains above the average for comparable rural municipalities.
At the same time, spending outside the region remains lower than average, indicating that local businesses continue to successfully meet many of the needs of local consumers and retain a strong share of household expenditure.
Growth Opportunities Emerging
While overall spending growth has remained modest, several sectors are experiencing strong momentum, highlighting opportunities for business expansion and investment.
The strongest growth areas over the past two years include:
- Trades and contractors: +41%
- Transport: +11%
- Professional services: +5%
- Travel: +4%
These results suggest ongoing demand for skilled services, business support, infrastructure-related activity, and visitor-related spending across the municipality.
Visitor Economy Continues to Deliver
Tourism remains an important driver of local economic activity, contributing approximately $10.6 million in spending during August, representing 28.1% of total local spend.
Visitor expenditure continues to be strongly supported by Victorian markets, with the majority of spending generated by visitors from:
- Regional Victoria: 56.7%
- Greater Melbourne: 28.3%
These figures reinforce the importance of maintaining strong connections with key Victorian visitor markets and continuing to promote Colac Otway as a destination for leisure, recreation and regional experiences.
Understanding Consumer Trends
The data also provides valuable insights into consumer behaviour. While cost-of-living pressures continue to influence household spending decisions, some demographic groups remain significant contributors to the local economy.
Women aged 65 years and over remain the municipality's highest-spending demographic, contributing approximately $4.9 million in monthly spending. Understanding spending patterns across different age groups can help businesses tailor products, services and marketing strategies to meet changing customer needs.
Looking Ahead
While spending growth has been slower than inflation and comparable rural municipalities, the latest insights point to a local economy that continues to demonstrate resilience. Strong local purchasing habits, stable visitor expenditure and growth in several key industry sectors provide encouraging signs for businesses across the region.
For local businesses, the message is clear: residents continue to choose local, visitors continue to spend locally, and opportunities exist for businesses that respond to evolving consumer needs and emerging market trends.