PCO ASSOCIATION
Room boom or bust
New hotel development responds to record occupancies – yet are we building enough? Asks Bryon Merzeo
from Deloitte Access Economics.
long. Consumers have accepted these
different types of overnight rooms both in the
city and more often, outside of CBD areas.
Conferences overseas have embraced these
options for delegates, and we’re starting to
see more and more companies and events
support them here in Australia.
While the accommodation sales managers
are enjoying the nearly full occupancy levels
and ability to charge higher rates, they
are also building many more hotels to fulfil
the demand. Deloitte is currently tracking
143 new accommodation properties across
Australia at the moment, which will see new
brands from global hotel chains entering
our country for the first time. The majority
of these new hotels will be located around
major demand drivers such as conference
centres, airports, and sporting facilities.
These will be a much needed and welcome
option for event organisers.
Australia’s tourism industry continues to be
a ‘super sector’ for the nation’s economy,
with strong growth in both international
and domestic visitor numbers. The extreme
levels of occupancy we are experiencing in
Sydney and Melbourne CBDs translates to
upwards of 100 nights per year above 95
per cent occupancy. As we discussed at the
recent PCOA conference in Brisbane, this
may be welcome by the hoteliers to have
a full house, yet this is a major concern for
conference organisers.
The story behind our nation’s booming
tourism sector and high occupancy levels
has a few components. One of the main
goals of the Tourism 2020 plan is to
increase the value of the tourism economy
to $116 billion per year.
International visitor arrival