Thursday, November 22, 2018

Areas on the rise in the Australian accommodation sector

It’s rare to glance across any of Australia’s major city skylines without spotting a crane or development of some description. New residential and commercial properties are being developed at a steadfast pace, supporting not only population growth, but for some areas, an increase in tourism. Accomnews looked into which areas are on the rise, how they’re supporting growth, and what to expect in terms of development in the months and years ahead.

There are a number of factors contributing to the requirement for development, not least of which is international travel to Australia. According to a recent accommodation industry report from Bankwest for Business, international tourism is becoming increasingly crucial for the industry, and tourists from areas such as China and India have risen by 22.6 and 9.7 percent respectively. New Zealand is still the country’s biggest provider of international tourists, with over 1.2 million New Zealanders travelling to Australia for business or leisure each year.

The industry is also driven by the declining Australian dollar, with favourable exchange rates driving visitors, as well as a growth in digital accommodation services and sites, allowing holiday hunters to scope out their options and book on a whim.

The current environment

According to the Bankwest for Business report, New South Wales currently has the biggest accommodation offering of any state, with a total of 4,141 accommodation options in operation. Queensland comes in second, with 3,256, while Victoria has 2,988 and Western Australia has a total of 1,195.

States with a smaller offering include South Australia with 847 accommodation businesses, Tasmania with 527, the Northern Territory with 188, and lastly the Australian Capital Territory with just 99.

Growth areas

Despite the ACT having a small number of recognised accommodation businesses, it has been a growth leader in the accommodation industry over the past 12 months, having seen significant development and growth of 22.6 percent.

According to the report, Western Australia and the Northern Territory have also shown significant growth, with the local accommodation industry growing by 11.6 and 9.7 percent respectively.

The future

Bankwest for Business indicates that the outlook for those in the accommodation industry is positive, anticipating that revenue for all accommodation and sub industry classes will grow by at least 1.8 percent. Of the five sub industry classes, serviced apartments are expected to experience the fastest rate of growth until 2020, with an average expected rise of three percent per year. The hotels and resorts sector is also expected to rise significantly, with revenue growth of 10.3 percent over the next five years, purportedly taking revenue up to $8.6 billion.

While motels and holiday houses are only expected to see slight growth, caravan parks and camping grounds should also see an increase of approximately 1.2 percent.

According to the report, in 2021-2022, Australia will have approximately 8,586 hotels and resorts, 2991 motels, 1481 caravan parks and camping grounds, 3648 serviced apartments, and 1,188 hostels, making up a total of 17,893 accommodation businesses.

About Lauren Butler

Lauren Butler is a junior journalist here at accomnews. You can reach her at any time with news, opinions and submissions.

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