Rising costs a concern for Aus accomm

The Accommodation Association of Australia has warned that industry growth must keep pace with rising expenses in order to compete with destinations such as Fiji, Thailand and Indonesia.

The latest Australian Bureau of Statistics (ABS) figures regarding industry performance revealed an increase in occupancy levels and RevPAR rates during the June quarter, compared to the same period last year.

Accommodation occupancy rose 0.3 percent and revenue per available room (RevPAR) jumped $3.89.

“It’s important that growth keeps pace with expenses that are rising due to the imposition of taxes and charges, including the carbon tax, minimum wage increases, utilities and council rates, among others,” Accommodation Association Australia chief executive Richard Munro said.

RevPAR in Western Australia and the Australian Capital Territory showed dramatic leaps.

“In the ACT, RevPAR was the highest in Australia for the June quarter of 2012 at $128.74,” Mr Munro said.

“The industry’s concerns lie with three jurisdictions that saw RevPAR decrease - Victoria, SA and Tasmania.”

Planned increases in air capacity are set to benefit Tasmania.

“At a time when a record 8 million Australians are travelling overseas, it’s important that we are able to compete,” Mr Munro said.

“There are fantastic experiences right here in Australia and there has never been a better time to enjoy them, particularly with warmer weather ahead.”

Source: eTravel Blackboard, 2 October 2012