Strong growth in aviation projects, particularly new aircraft orders, has helped Australia’s tourism investment pipeline rocket to AUD 59.8 billion (up AUD 6.5 billion) for the year ending 2015.
Tourism Investment Monitor 2016, released on Friday by Tourism Research Australia (TRA), reports that continued investor appetite for Australian tourism infrastructure investment projects is supporting the current strength of the pipeline. Demand for tourism services is also going from strength to strength, further increasing the importance of the industry to Australia’s economy.
- The pipeline held 173 projects, up by a net six projects and worth an extra AUD 6.5 billion, compared to 2014.
- Aviation projects accounted for the majority of the pipeline at AUD 37.6 billion. Most of the increase on 2014 was in new aircraft orders (valued at AUD 28.2 billion) which appreciated due to the exchange rate.
- The arts, recreation and business services pipeline was valued at AUD 14.6 billion, up AUD 700 million. Fifteen new projects valued at AUD 1.6 billion entered the pipeline in 2015.
- Accommodation projects were valued at AUD 7.6 billion, potentially providing 15,900 new rooms to accommodation supply.
In addition to the AUD 59.8 billion pipeline, the continuing shift towards mixed-use developments contributed an additional AUD 35.1 billion in investment, and will potentially create around 24,000 new rooms.
Increased investment activity also continues across regional areas, with 32 projects valued at AUD 2.8 billion occurring outside capital cities or the Gold Coast.
These projects include regional airport developments which will help improve access to regional areas, and disperse visitors beyond the major gateways, and arts, recreation and business services infrastructure projects, which can promote visitation, as well as encourage longer stays and repeat visits.
There were also an additional 16 mixed-use projects worth an estimated AUD 5.7 billion in regional areas.
Edited by Peter Needham