The Australian hotel industry is responding to continued record international visitor growth with a record level of hotel investment – over $8 billion – that is set to transform Australia’s accommodation and tourism sectors.
Figures released by Tourism Accommodation Australia (TAA) identify 228 hotel projects (34,702 rooms) under construction, approved for development or in advanced planning stages in the six State capitals and Darwin.
TAA’s hotel ‘pipeline’ report follows the release of the latest International Visitor Survey (IVS) results, which revealed 11% growth in visitor arrivals for the 2016 year, taking the total number to 7,624,665. Korea and Japan led the increases with 24% annual growth, followed by China (17%) and USA (16%). Total international visitor spend grew 7% to reach $39.1 billion, injecting an additional $2.5 billion into the Australian economy in 2016.
Table: Reported hotel development projects in Australia 2017 – 2022 (Source: Tourism Accommodation Australia)
Recent hotels announced for development include:
- Marriott International’s Luxury Collection Hobart: a 128 room hotel at Parliament Square, which is part of a $150 million urban regeneration project, due for completion in 2018
- IHG’s Holiday Inn Sydney Central: the 305 room hotel will be in the Central Park precinct at the southern end of the CBD and is scheduled to open in 2020
These announcements follow a strong flow of openings in 2016, capped off by the opening of Australia’s most expensive hotel development, Crown Towers Perth, in December.
In addition, a massive rejuvenation of Australia’s existing hotel stock is underway, highlighted by the recent announcement of a complete upgrade of the InterContinental Hotel Sydney.
CEO of Tourism Accommodation Australia Carol Giuseppi said record levels of investment – both local and overseas – would revolutionise Australia’s hotel industry over the next five years.
“This is the most extensive and all-encompassing hotel rejuvenation phase in Australia’s tourism history. It is both responding to the massive growth in tourism demand and anticipating long-term growth in the visitor economy.”
Image: Crown Towers Perth