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Hotel market outlook positive despite slowdown in mining boom

March 5, 2014 Statistics & Trends No Comments Email Email

Despite the slowdown in the mining and natural resources boom, the latest Hotels.com™ Hotel Price Index™ (HPI™) has found Australian hotel prices rose by 4% in 2013 to $177* a night, above the average global rise of 3%.

This is the fourth consecutive year of positive growth since hotel prices nose-dived following the global financial crisis.

While the slowdown of the mining boom and the subsequent drop in corporate demand drove average hotel prices down in major cities such as Perth, falling 8% to $195, and Brisbane, falling 3% to $168, other parts of the country, including tourist favourites, enjoyed upward price moves.

For the first time in four years, Sydney overtook Perth as one of the cities in the country where travellers paid high prices following a rise of 9%, taking average room rates to $200. Melbourne witnessed a 6% rise to $171 while Hobart followed a 5% lift to reach $165 and the nation’s capital, Canberra, saw a slight lift of 2% to reach $180.

The fall in the Australian dollar over the second half of 2013 coupled with a 5% lift in overall visitor numbers to Australia for the year meant popular tourist hotspots benefited from overseas travellers looking to take advantage of the cheaper Australian dollar. A series of innovative marketing campaigns also played a part in attracting international custom.

Darwin, a draw card for many Chinese travellers (Australia’s biggest source market for travellers), saw  the largest rise – 12% – taking its average price to $204 and making it the only Australian city to witness double digit growth.

Once again, The Whitsunday Islands topped the price chart with a 4% rise taking the popular Island to an average rate of $257, while a 3% increase took Cairns to $136 and Launceston to $141.

At the other end of the table, Alice Springs saw a 3% fall to $109 as did Adelaide, which slipped 1% to $146. World-renowned Australian wine regions Margaret River (down to $190) and Hunter Valley (averaging $172 per night) both slipped 1%.

Abhiram Chowdhry, Vice President and Managing Director, Asia Pacific of the Hotels.com brand, said: “While parts of Australia did witness hotel price drops in 2013, prices in cities such as Perth had been inflated following the mining boom of previous years, so I look upon this as just a correction from that level. Overall, Australian hoteliers enjoyed a solid year thanks to a weaker Australian dollar which not only helped attract overseas travellers but also retain the domestic market.”

“These factors combined with continued inbound growth, particularly from Asia as a result of increased access to low-cost carriers and Australia’s long-term strategy to double tourism’s contribution to the country’s GDP, will see Australian hoteliers enjoy a positive year ahead.” 

Average price per room per night in 2013 compared with 2012 across Australia in AUD:

Destination

2013 AU

2012 AU

% change

Whitsunday Islands

$257

$247

4%

Darwin

$204

$182

12%

Sydney

$200

$183

9%

Perth

$195

$212

-8%

Margaret River

$190

$192

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