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Poor quality unpopular

LOWER quality tourist accommodation continues to remain less popular, with a higher percentage of vacancies than in three, four and five star accommodation.

This is pushing owners to upgrade their establishment or close down.

In the year to March 31, 11 one and two star establishments dropped out of the WA market leaving just 27 accommodation providers in the cheaper end of the market.

At the same time, an additional 19 four and five star accommodation providers – mainly in the serviced apartments and guesthouse markets – and another 12 upgraded properties have been added.

Nationally, 102 one and two star establishments closed or were upgraded during the past year.

About 121 four and five star properties were brought on stream during the year.

According to Australian Bureau of Statistics, during the March quarter one and two star providers experienced occupancy rates of 25 per cent and 40 per cent respectively while four and five star properties reported occupancy rates of 63 per cent and 73 per cent.

Occupancy rates were highest in Perth, with 67 per cent, and lowest in the Kimberley at 31 per cent.

The Gascoyne region had the lowest takings in WA , with less than $1 million for the March quarter.

Perth takings increased $4 million from the 1999 March quarter to $60 million during the March 2000 quarter.

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