Hotel room occupancies constant in 2011 and room rates trending upwards in 2012DOWNLOAD
Monday, 23 May 2011: The Deloitte Hotel Market Outlook Q2/2011 today reported that key demand drivers to the Tourism, Hospitality and the Leisure sector have softened. This is due primarily to the marauding $A, amid a climate of uncertainty with anticipated higher interest rates on the one hand and the continued national ‘swing’ to savings on the other.
According to the Deloitte report, prevailing economic impacts on the Tourism, Hospitality and Leisure sector produced a less than favourable business backdrop, with stagnant numbers of tourists arriving in Australia, combined with more Australians taking advantage of the surging $A, preferring Disneyland instead of Dreamworld.
The key city markets throughout Australia continue to record improvements in performance primarily due to an almost total absence of new supply and significant increases in corporate-based demand.
National Leader for Tourism, Hospitality & Leisure, Rutger Smits, says the longer the Australian dollar remains above parity to its US cousin, the harder it will be for tourism and international education, two key sectors which dominate our service export earnings.
“The two speed economy has influenced growth in the Australian hotel market in contrasting ways. Strong growth in corporate demand tied to the resources sector and improvements to the business environment following the global economic downturn in recent years, has allowed for continued growth in hotel occupancy and rate in these markets.
“With no significant supply increases announced for the foreseeable future, there is large investment potential in several key locations within Australia, Sydney in particular. Until new developments go ahead there will be a lot of opportunities in Australia,” said Rutger Smits.
Hotel Market Outlook Q2/2011 overview:
Overall, room occupancies throughout Australia are forecasted to remain relatively constant for 2011, while average room rates are anticipated to grow by 5.2% to $146, resulting in revenue per available room (RevPAR) estimated to increase by $4.35 (4.9%) to $93.
Looking ahead to 2012, we predict occupancy growth throughout Australia to remain marginal, increasing by a further 0.5% to 64.0%. In the absence of supply growth, average room rates are set to increase further by $9.58 (6.5%) to $156, increasing RevPAR by $6.75 (7.3%) to $100, nation-wide.