Tourism investment at risk
Tourism investment will be placed at risk if a proposal to radically change the collection of accommodation industry data by the Australian Bureau of Statistics (ABS) goes ahead.
The Accommodation Association of Australia is strongly opposed to the proposed change, which would see ABS tourism accommodation statistics released on an annual basis instead of quarterly, as they currently are, which would save the ABS $600,000 but impede billions of dollars' worth of vital new hotel infrastructure.
"The accommodation industry is extremely concerned about the proposed cuts to the provision of accommodation statistics by the ABS," said the Accommodation Association's Chief Executive Officer, Richard Munro.
"If you can't measure industry performance on a regular basis, then our industry can't manage it, which is why we have written to the ABS and the Federal Government to request that this proposal does not proceed.
"For the accommodation industry, the proposed change would be like driving a car without a fuel gauge.
"It would compromise efforts to further increase the standard of existing tourism accommodation businesses and the development of new ones, due to a lack of data for investors and potential investors to analyse.
"It's disappointing that despite the annual budget of the ABS being in the vicinity of $400 million, it can't continue to allocate the $600,000 required to continue providing data about an industry which is one of largest employers in Australia. This figure may be less, if improved collection procedures are put in place."
It's extraordinary that Tourism Australia, one arm of the government is spending millions to attract foreign investment while the other is undermining our strong investment story.
The Accommodation Association has communicated its concerns to Treasury through its 2013/14 Pre-Budget Submission; to access a copy of the submission, please click here.
Leading accommodation industry investment advisory, Dransfield Hotels & Resorts is also opposed to the change.
"ABS information about tourism accommodation performance is extremely important, if not the most important foundation, for existing and new hotel investment in Australia," said the Managing Director of Dransfield Hotels & Resorts, Dean Dransfield.
"If the availability of short-term accommodation data is materially reduced, this will inevitably lead to reduced confidence in hotel investment, as well as less actual investment."
Source: Accommodation Association of Australia, 19 April 2013
