WA hotel room occupancy rates, room prices drop amid mining slowdown, figures show

Room occupancy rates and prices for hotels in WA have dropped significantly, figures show, with the industry blaming the slowdown in the mining sector.

Data released by the Australian Bureau of Statistics (ABS) showed the room occupancy rate for hotels, motels and other accommodation providers in the state fell to 63 per cent in the 2013-14 financial year.

That figure was down from 68 per cent the previous year.

The drop came as providers cut prices, with the average room rate falling 3.6 per cent to $184.

The reduced demand was also highlighted by the revenue per available room, which fell nearly 11 per cent to $115.

Tourism Council of WA chief executive Evan Hall said the data reflected a big drop in corporate travel linked to the mining sector.

"That travel has really dried up and a lot of hotels are really struggling," Mr Hall said.

"During a period of time where you'd normally like to see a gradual increase, we have seen quite a significant decrease in rates."

But Mr Hall said the figures also reflected some good news, with an increase in the number of rooms available and a drop in prices helping to attract tourists.

"Corporate travel was simply outstripping the number of rooms available, that really drove up the price and we were turning people away sadly," he said.

"Now it does make WA more competitive and with the rates at a lower price and the Aussie dollar at lower levels, it means WA is really back in the (tourist) market.

"There probably hasn't been a better time for a long time in terms of what we've got to offer and what good value we have and we need to get that message out."

Source : ABC News   December 19th 2014