Government action of targeted hotel supply welcomed
An accommodation supply plan to be co-ordinated directly by the State Government has been welcomed by the tourism and hospitality industry as a key plank of the Visitor Economy Taskforce Report (VET) released today.
“We are very pleased that the NSW Government has supported the majority of the recommendations in the report and has taken a considered, whole of government approach in their response,” TAA (NSW) director Carol Giuseppi said.
“In particular we welcome the NSW Government’s commitment to delivering an Accommodation Supply Plan.
“We have strongly advocated the need to monitor the hotel market in Sydney in order to better understand the development cycle and how best to encourage a long-term, sustainable operating environment for hotels. This is vital in sustaining investor confidence and we welcomed the Government’s commitment made in the VET.”
Ms Giuseppi said the Supply in Sydney study commissioned by TAA (NSW) in early 2012 was the first economic modelling into hotel room supply increases in the Sydney market.
“The research clearly showed that in order to have a sustainable hotel sector in Sydney, Government must take a balanced approach focused on supply, demand and infrastructure.The study also recommended that any intervention in the market needs to be targeted and undertaken in a responsible manner – so we welcome the Government’s initiatives.”
Ms Giuseppi said there had been considerable investment in supply over the last year with the opening of the 171 room The Darling at The Star - the first purpose-built five-star hotel since the Olympics, the 196 room QT Sydney Hotel and an additional 52 rooms at Four Points by Sheraton.
“The past couple of years has also seen up to $100 million spent on refurbishments in the Sydney market,” she said.
“There are also a number of planned increases to supply with the opening of the 317 room Rydges Sydney Airport mid next year, the 170 room Adina Royal Randwick racecourse in 2014 and the up to 900 room hotel at Darling Harbour. We do not want to put our current and future investment at risk.
“Our concern remains that supply is targeted to the particular need. Currently the Sydney market is undersupplied with 3 star accommodation – only 21% of the market is currently 3 star, which limits the ability to meet the needs of some of the more budget conscious travellers.”
Source: Tourism Accommodation Australia, 19 December 2012
