FREMANTLE Chamber of Commerce CEO Chrissie Maus has raised concerns that a proposed three-day Christmas market could compete with the permanent businesses it is intended to support.

The City of Fremantle is planning the market at Esplanade Reserve from December 18 to 20 as part of A Very Freo Christmas.

Ms Maus said the Chamber supported the City investing in Christmas activation but questioned whether the market would divert spending from existing businesses during their most important trading period.

“The Chamber has been contacted by a number of members concerned about the City’s proposed three-day Christmas Market at Esplanade Reserve,” Ms Maus said.

“For Fremantle’s permanent traders, the weeks leading into Christmas are not just busy, they are critical.”

Ms Maus said many businesses carried significant costs throughout the year and relied on Christmas trading to finish strongly.

“It is therefore understandable that some are questioning whether a temporary market, operating in the heart of the city during this peak period, may draw spending away from existing businesses rather than adding to it.”

She said the key question was whether the market would increase spending across Fremantle or simply shift where people spent their money.

“This is the key issue: does the activation grow the pie, or simply redistribute it?”

Ms Maus said a market could increase visitation and encourage people to spend more time in Fremantle, but warned this could not be taken for granted.

“Without careful design, there is a huge real risk of cannibalisation, where visitors spend within the temporary market rather than in surrounding shops, cafés and venues that operate all year round.”

She also questioned the economic imbalance between temporary market operators and permanent traders.

“That imbalance raises a fair question for the community: are we unintentionally creating a subsidised temporary trading environment that competes with long-standing local businesses?”

Ms Maus said even a small diversion of Christmas spending could have significant consequences for small businesses.

“These businesses have invested in Fremantle. They employ locally. They activate our streets every day of the year. They are the foundation of the very destination experience the Christmas program seeks to promote.”

The Chamber is seeking clarity from the City on whether an economic impact assessment has been undertaken on the markets, how the risk of cannibalisation will be managed and whether stallholder selection will prioritise local businesses.