Global financial turmoil and the high Australian dollar are expected to remain as the major ongoing challenges for Australia’s tourism and hospitality industry, as Perth solidifies its position as the fastest growing hotel market in the country, new analysis from Deloitte says.
Deloitte’s Hotel Market Outlook forecast tourism consumption nationally to decline by 0.3 per cent in 2011, with international visitor arrivals predicted to grow just 0.4 per cent this year.
Outbound departures are expected to remain strong, with 9.2 per cent growth.
In Perth, hotels are experiencing record room occupancies and there is significant opportunity in the market to increase room rates, Deloitte said.
“Our room occupancy forecast for 2011 remains on track with an expected 84.5 per cent at year end, along with some 11 per cent growth in room rate to $174,” the report said.
“This makes Perth the fastest growing market in the country, with expected revenue per available room (revPAR) improvement of almost 14 per cent over 2010.”
Deloitte said revPAR growth for 2012 was expected to be higher again, at 18/6 pre cent, exceeding Melbourne room rates and inching closer to Sydney’s.
“Whilst occupancies are at record levels, development of new accommodation facilities remains difficult in Perth, though recently announced government incentives may see the initiation of some much-needed new hotel rooms being constructed,” Deloitte said.