Hoteliers lift glass to higher room demand from Aussie dollar drop

A tourism revival driven by a 15 per cent fall in the Australian dollar could see Queensland hoteliers among the biggest beneficiaries, according to the latest global hotel room survey. The Hotels.com Hotel Price Index, out Tuesday, predicted fresh Australian hotel room demand from both inbound and domestic travel markets, despite local industry continuing to drive price increases.

Resource industry hubs saw outstanding price growth, with Mackay pulling the biggest average hotel room rate rise of 15 per cent over the last year to $170 a night - more than a night's stay in Brisbane ($168) or Melbourne ($163).

Byron Bay ($169), the Sunshine Coast ($166) and Hobart ($162) were also cheaper on average to spend the night at than the coal hub of Mackay.

Queensland also had the highest average hotel room price of $254 a night in the Whitsunday Islands, $83 above the country's average of $171.

Hotels.com Asia Pacific vice president Johan Svanstrom said the outlook was positive as Australian hoteliers focused on taking advantage of thriving outbound markets in the Asian region, including China.

"The recent drop in the Australian dollar will likely start to affect travel demand and rates in the second half of the year, contributing to improvements in domestic travel and the start of a revival of the inbound market," he said.

For successful hoteliers, Brian and Greg Fitzgibbons of The Glen Hotel at Eight Mile Plains putting in more room stock - at the higher end of the market - was a no-brainer.

The Fitzgibbons have begun construction of an $8 million 4.5-star wing attached to The Glen Hotel, with 43 luxury rooms and suites.

"Our aim has always been to stay ahead of trends and invest back into our business," Mr Brian Fitzgibbons said. "We now feel the time is right."

The Glen's accommodation manager Ryan Dillon said the development would be complete mid-next year, in time for the massive influx of officials and media expected for the G20 Summit at South Bank just 15 minutes away. Brisbane is the host city for the ninth meeting of the G20 heads of government, scheduled for November 15 and 16 next year.

The main market for The Glen's luxury wing though would be consultants and others visiting surrounding technology and office parks (Brisbane Technology Park, Garden City Office Park, Freeway Office Park) or people who were in town for major sporting events.

"It is exciting times ahead for The Glen Hotel as it enters this new phase of expansion," Mr Dillon said.

Source: The Courier Mail, 9 September 2013