Perth hotels remain at record levels of occupancy, with hotels operating at 83 per cent of capacity over the March quarter, new data shows.
The ABS Survey of Tourist Accommodation for the March quarter also showed average room rates were up 7 per cent, to $189 per night.
Last March Perth hotels were operating at 80 per cent capacity.
The ABS survey includes all hotels, motels and serviced apartment complexes with 15 or more rooms.
Despite occupancy and room rates rising, the survey showed the supply of rooms declined from 5,836 to 5,802 due to refurbishments.
Tourism Council WA chief executive Evan Hall called for new planning policies to ensure at least 300 hotel rooms are built in Perth each year.
"Our hotels are basically full mid week and we are turning people away," he said. "There is some space on Friday and Saturday nights but that's about it."
"Hotel rooms are a critical link in the supply chain for the resources and tourism sectors.
"If there are no rooms there are no holidays, corporate travel or business meetings."
Mr Hall said a recent Access Economics report forecast the economic cost of the hotel shortage in WA to reach $660 million by 2020.
