Room count falls short as Australia seeks more hotels
Andrew Robb, right, has said at least 16 luxury hotels must be developed in Australia every year for the next five years. Source: Supplied
FEDERAL Trade and Investment Minister Andrew Robb has said at least 16 luxury hotels must be developed in Australia every year for the next five years, but new analysis shows the expected room count for new hotel development has fallen.
The Deloitte Access Economics Tourism and Hotel Market Outlook report reveals that 75 properties are in the development pipeline for the next three years, up from 71 properties six months ago.
But there are not sufficient hotel rooms in each property.
“Critically, the number of rooms in the three-year pipeline is 15 per cent lower than this time last year,” said Deloitte Access Economics partner Lachlan Smirl.
“Despite occupancies charting higher and higher, especially in Sydney and Melbourne, the number of new projects on the cards remains modest relative to the demand outlook.”
The Deloitte report to be released today foreshadows demand for hotel rooms growing at double the pace of supply over the next three years while national occupancy rates are expected to jump by 2.5 per cent to reach 70.8 per cent by 2017.
Sydney and Melbourne will remain the market leaders, with both cities expected to reach hotel occupancies of about 90 per cent by 2017. Sydney averaged 87 per cent occupied last year, slightly above Melbourne’s average of 86 per cent.
Perth hotels are copping the fallout from the softening mining boom, with hotel occupancies falling 4 per cent last year. Brisbane hotels recorded a modest 1.9 per cent rise in occupancies. Canberra’s hotels reported average occupancies of 67 per cent last year.
But Mr Robb warned the tourism industry last week that it required 20,000 five or six-star rooms to be developed by 2020 to cope with growing inbound tourists.
Source: The Australian - 26th February 2015
