The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Interested in a Corporate TUD+ Membership? Access premium content, site tours, event discounts and networking opportunities
Interested in a Corporate Membership? Access exclusive member benefits today
Enquire NowEnquire
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Partner Lab
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
54
print
Print
HotelTed TabetFri 15 Feb 19

Tourism Boom Drives ‘Unprecedented’ Hotel Development

7c954849-6fbe-45b5-9bde-20288a80e7a5

Australia's accommodation sector is set welcome 45,000 new rooms over the next six years catering to changing demands, travellers and demographics.

According to Tourism Accommodation Australia a wave of almost 300 new hotels, currently proposed or under construction, will boost the hotel industry which has suffered from a development hiatus of almost two decades.

The pipeline of projects will add to the $8 billion tourism industry which currently employs over 187,000 people.

Melbourne leads the growth push with 10,208 rooms approved or under construction, while Sydney has 6,084 in the pipeline.

Perth also has a significant amount of hotel rooms currently under construction, with 1,755 rooms to be added over the next two years.

TAA has forecast that 11,600 rooms are due to be added to the Sydney market and more than 15,100 expected in Melbourne.

Related: Investors Target Secure Income in Australia's Hotel Market


Hotel rooms under development between 2018-2025

CityUnder ConstructionApprovedProposedTotalHotels
Sydney1,0205,0645,51911,60377
Canberra7499224212,09215
Brisbane976600492,71819
Perth1,7554,2901,7077,75247
Adelaide4981,2545422,29414
Darwin03498231,1729
Hobart7014571,1512,30916
Melbourne3,0997,1094,98615,19475
Total8,79820,04516,29145,134272

The last time Australia experienced a boom in hotel development coincided with the 2000 Sydney Olympics and has since remained dormant due in part to the 2008 global financial crisis.

Sydney, in particular, did not see a new-build 5-star international hotel developed in 18 years between 1999 and 2017.

Just 3,000 hotel rooms were added in both Sydney and Melbourne each between those years.

Current forecasts suggest Australia’s current visitation of around 8.8 million international visitors per annum will rise to 16 million a year within a decade with expanding wealth in China resulting in a booming number of tourists seeking new travel destinations.

Australia, which currently attracts only 1 per cent of China’s international outbound travellers, now looks set to benefit from the open skies agreement with China, signed in December 2016, which allows Chinese airlines direct access to Australia.

According to Tourism Research Australia, China, together with Australia's other top five markets, the United States, Britain, New Zealand and Japan, delivered more than half of the $42.5 billion in international visitor spending in 2017-18.

Related: Newcastle Gets Its First Five Star Hotel

The $500 million Ritz-Carlton Sydney hotel is one of 5,519 new hotels proposed for Sydney.Image: FJMT


“What is unprecedented about this development boom is the diversity of hotel product being constructed,” TAA chief executive Carol Giuseppi said.

“The global hotel groups have responded strongly to the rapid increase in demand by unveiling many of their designer, lifestyle brands, while local brands such as QT, the Art Series and Veriu have taken advantage of changing demographic trends in travel to build their profile.”

“Cities such as Brisbane and Perth will experience a doubling in their international-standard hotel stock which will enable them to cater for a vast increase in tourism, conferences and events and deliver a major economic boost to compensate for the softening of the resources sector.”

The impact of millennial needs and trends has prompted a complete renaissance in the products and services the hotel industry offers guests.

New brands, new designs, new technologies and new guest-centric services have already begun to transform Australia’s accommodation sector.

The Australian hotel industry has also shifted, originally basing design and amenities on “brand fidelity”, but now shifting towards cutting-edge innovation and emphasis on localism and experiential travel.

The uptick in development has been strongly linked to investor confidence, growing demand, low interest rates and solid exchange rates for global investors.

HotelAustraliaConstructionConstructionSector
AUTHOR
Ted Tabet
The Urban Developer - Journalist
More articles by this author
website iconlinkedin icon
ADVERTISEMENT
TOP STORIES
Exclusive

Brains, Balls and Determination: How Salvo Property Has Shaped Melbourne’s Skyline

Marisa Wikramanayake
5 Min
Fraser and Partners founder Callum Fraser
Exclusive

Saving Our CBDs: Architect’s Blueprint Paves Way for Office-to-Resi that Works

Leon Della Bosca
8 Min
Exclusive

Watchdog’s Court Loss Throws Spotlight on Union Balancing Act

Clare Burnett
6 Min
Time and Place's The Queensbridge Building at 90 Queens Bridge Street in Melbourne's Southbank.
Exclusive

Innovation Keeps Time & Place’s Southbank Skyscraper Rising

Marisa Wikramanayake
6 Min
Breathe Architecture founder Jeremy McLeod in front of his Featherweight Home design
Exclusive

Nightingale Founder’s Bid for Affordable Architectural Kit Homes

Leon Della Bosca
7 Min
View All >
Residential

Graya Banks $80m from Broadbeach Tower Sales

Taryn Paris
West End Stockwell Vulture Street DA hero
Development

Stockwell Files Tower Plans in West End Stomping Ground

Phil Bartsch
Exclusive

Brains, Balls and Determination: How Salvo Property Has Shaped Melbourne’s Skyline

Marisa Wikramanayake
Data, 3D tech and careful research are vital, but count for little without the courage to back it up, says James Maitlan…
LATEST
Residential

Graya Banks $80m from Broadbeach Tower Sales

Taryn Paris
2 Min
West End Stockwell Vulture Street DA hero
Development

Stockwell Files Tower Plans in West End Stomping Ground

Phil Bartsch
3 Min
Exclusive

Brains, Balls and Determination: How Salvo Property Has Shaped Melbourne’s Skyline

Marisa Wikramanayake
5 Min
PBSA DA Hindmarsh Square student accomodation tower
Student Housing

Student-Friendly Adelaide Draws 35-Storey PBSA Proposal

Renee McKeown
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/boost-in-tourism-creates-hotel-boom-