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Strong tourism performance tends towards luxury

July 23, 2018 Headline News No Comments Email Email

More travellers in Australia are checking into hotels, motels and serviced apartments, the latest national accommodation survey reveals – and travellers have an increasing appetite for lavish indulgence.

The Australian Accommodation Monitor (AAM) shows occupancy rates averaged 75% in 2016-17, an increase of 0.5% on 2015–16. Accommodation takings also grew, with revenue per available room averaging AUD 139 per night – 1.6% higher over the same period.

The Australian Government is delivering the AAM in partnership with global data analytics company STR, providing industry with year-on-year analysis of occupancy rates and business takings across Australia, to promote investment in the sector.

Tourism Australia’s focus on high yielding visitors is paying dividends, with the data revealing travellers have an appetite for high-end offerings. Luxury properties recorded an 81% occupancy rate, revenue per available room of AUD 204 per night, and an average rate paid by visitors of AUD 253 per night.

Tourism Minister Steven Ciobo said that was ‘a positive signal for existing luxury products, like Luxury Lodges Australia, and a strong gauge of traveller expectations.

“The Turnbull Government’s introduction of the Boosting Business Events Bid Fund will also support continued growth in the luxury category as business travellers spend, on average, twice the amount of leisure travellers,” Ciobo added.

Properties in Australia’s major cities performed strongly, with an average occupancy rate of almost 80% for state and territory capitals – higher than 2015–16. This growth in supply was mainly seen in Perth, Brisbane and Sydney.

Revenues per available room in the capital cities reached AUD 152. Sydney rates continued to climb, reaching AUD 192 per available room, while Canberra, Adelaide and Hobart saw high growth through increased demand and higher occupancy rates.

Cape Lodge, a Luxury Lodges of Australia offering

The accommodation pipeline is strong, with 18 properties adding 2650 rooms to the market in 2016-17 and an additional 102 stand-alone accommodation projects worth AUD 10.8 billion expected to add 19,730 rooms once completed.

“The Turnbull Government is supporting Australia’s AUD 135.5 billion tourism industry as part of its plan to create jobs and grow Australia’s economy,” Ciobo said.

“We are addressing regional dispersal of tourists through our Regional Tourism Infrastructure Investment Attraction Strategy. “

Edited by Peter Needham

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