Post on 12-Jan-2015
description
Brisbane hotels and the tourism industry
Brisbane CBD Hotels 2000-08
� Occupancy peaked in 2008 at 81.5%
� RevPAR peaked in 2008 at $128.40 per � RevPAR peaked in 2008 at $128.40 per night
� Room nights sold peaked in 2008 at
2.23 million
Brisbane CBD Hotels 2009-10
� Occupancy fell to 74.2%
� RevPAR fell to $113.34 per night� RevPAR fell to $113.34 per night
� Room nights sold fell to 2.14 million
Brisbane CBD Hotels Forecast to 2017
2017 Forecast Change 2010-17
Occupancy 77.9% +3.7%
RevPAR $118.36/night +$5.02/night
Room nights sold 2.86 million +720,000
Source: Dransfield Hotels, 2010
Gross Avg. Annual Income per Hotel Room ($)
2008 2009 Change
Gold Coast $42,985 $40,522 -6%
Cairns & TNQ $36,137 $28,200 -22%
Brisbane $55,730 $51,165 -8%
Queensland $42,572 $39,457 -7%
Hotel Occupancy Rates (%)
2006 2007 2008 2009
Gold Coast 70.8 72.9 71.5 69.9
Cairns & TNQ 67.3 64.2 60.9 53.1
Brisbane 81.3 81.5 77.8 75.1
Queensland 69.0 69.3 67.9 64.2
Source: ABS 8635.0
Change in Brisbane Room Rates & Occupancy 1999-2009
7.0 6.0
11.0 10.0
5.07.0 7.0
10.0
20.0
occupancy % point change
room rate % change
Source: ABS 8635.0
-4.2
0.0
-0.63.12.2 1.5
5.2
-1.7
3.23.40.2
-3.8
1.05.0
-3.00.1
-20.0
-10.0
0.0
10.0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Return on Investment
(AEC Group, National Tourism Investment Strategy, 2006)
Business Type (AUST) ROI 1998-2004
Tourism Businesses 11.8% pa
All Businesses 14.9%pa
(AEC Group, National Tourism Investment Strategy, 2006)
� The tourism industry has been saved by technology and innovation
�Low cost airfares and accommodation packaging
�Online booking and virtual tours
International Visitor Arrivals to Australia and Shocks to Growth
3
4
5
6
Arr
ivals
(m
illi
on
s)
10
15
20
25
30
% c
han
ge
Sydney Olympics
RHS % chgLHS, Arrivals
Sources: ABS Overseas Arrivals & Departures (ABS Cat 3401.0)
0
1
2
1981 1985 1989 1993 1997 2001 2005 2009
Arr
ivals
(m
illi
on
s)
-10
-5
0
5 % c
han
ge
Asian Financial CrisisPilots' Strike Sept 11 Bali
BombingSARS GFC
Domestic VisitorsQLD Regions 2000-09
600,000
700,000
800,000
900,000
1,000,000Brisbane -0.6%pa
Gold Coast 3.3%pa
TNQ 0.7%pa
Vis
itors
Source: Tourism Research Australia , Tourism QLD
0
100,000
200,000
300,000
400,000
500,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Sunshine Coast 0.9%pa
Whitsundays 0.7%pa
Vis
itors
Year Ended
International Visitors QLD Regions 2000-09
4,000,000
5,000,000
6,000,000
Gold Coast -0.5%pa
Brisbane 2.4%pa
Vis
itors
0
1,000,000
2,000,000
3,000,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Sunshine Coast 2.7%pa
TNQ -2.0%pa
Whitsundays 0.7%pa
Source: Tourism Research Australia , Tourism QLD
Vis
itors
Year Ended
Domestic Visitor NightsQLD Regions 2000-2009
Gold Coast 0.7%pa
12000
14000
16000
18000
20000
Vis
itor
Nig
hts
p.a
. *
('000's
) Brisbane 3.7%pa
* Visitor nights include all commercial accommodation premises, not visiting friends or relatives, not children <14
Source: Tourism Research Australia , Tourism QLD
TNQ 0.6%pa
Whitsundays -0.3%pa
0
2000
4000
6000
8000
10000
12000
98
/99
00
/01
02
/03
04
/05
06
/07
08
/09
Year Ended
Vis
itor
Nig
hts
p.a
. *
('000's
)
Sunshine Coast 2.7%pa
International Visitor Nights QLD Regions 2000-2009
Vis
itor
Nig
hts
p.a
. *
('000's
)
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000Brisbane 8.8%pa
Vis
itor
Nig
hts
p.a
. *
('000's
)
Year Ended
* Visitor nights include all commercial accommodation premises, not visiting friends or relatives, not children <14
Source: Tourism Research Australia , Tourism QLD
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Gold Coast 3.3%pa
Sunshine Coast 5.3%pa
Whitsundays 2.7%pa
TNQ 1.2%pa
Brisbane Airport
� Recorded a minimal net loss of three international inbound flights in its 2010 schedule
� Gained flights from India, South Pacific Islands and Thailandand Thailand
� Maintains 270 international inbound flights per week, compared to 273 in 2008
� International inbound seat capacity at a record high of 55,071 per week (+10% over 2008)
The Introduction of a Resort Tax?
� Common throughout the USA, Canada & Europe (in the range of 2-14%)
� It sits on top of a GST or VAT� It sits on top of a GST or VAT
� All resort taxes in Australia deemed illegal with the introduction of the GST in 2000
� A resort tax of 2%pa in Brisbane would yield $107m and 10%pa would yield $535m on current accommodation turnover
Resort Taxes - Advantages
� They do not burden the normal income tax collection system but are a tax on consumption
� They do not drain state or local operating budgets
� They can be applied to the specific problem area, i.e. marketing of tourism by directing collections into relevant tourism authorities
Resort Taxes - Disadvantages
� Any new tax is generally opposed on principle, but this is not a tax on all taxpayers, rather it is user-pays
� There are additional administrative costs, as with the GST
� They can create market distortions if too large and not widely applied
Resort Taxes in Florida (introduced in1967)
Tax Percent
Municipal Resort 2%
Food & Beverage 2%
Tourist Impact 2%
Convention Development 2%Convention Development 2%
Tourist Development 1%
Enacted legislation to be used for:
• The creation and maintenance of convention centres, cultural/arts centres
•The enhancement and promotion of tourism
•Appropriate signage installation and maintenance
Australian Industry Size – Annual Turnover 2007-08
Food & Beverage $72bn 9.0%
Tourism $75bn 9.4%
Retail $150bn 18.8%
Motor Vehicles $173bn 21.6%
Manufacturing $250bn 31.3%
Other – Education/Govt etc $80bn 10.0%
Total GDP $800bn
Annual Council Funding for Tourism Marketing
Local Council Budget $ per capita
Brisbane $16.6m $9.20Brisbane $16.6m $9.20
Sunshine Coast $8.5m $27.50
Gold Coast $10m $20.00
Cairns $4m $2.60
Annual Federal Funding for Tourism Marketing
Country Budget $ per capita
New Zealand AUD$190m* $45.25
Bali AUD$43m $31.70
Fiji AUD$29m $27.65
Australia AUD$169m $7.68
* Air New Zealand contributes $90m
Conclusions
� In absolute terms, Brisbane attracts a greater share of the tourism market than rivals Gold Coast and Sunshine Coast
� The tourism industry in Australia is � The tourism industry in Australia is underfunded by comparison with its contribution to GDP
� A fresh approach for additional funding for tourism marketing is needed.
� A resort tax could be the answer
Also in the Latest Midwood Report
� Population trends & forecasts
� Non-residential building trends
� Dwelling activity (approvals, commencements)Dwelling activity (approvals, commencements)
� New apartment sales/stock survey QLD-wide
� Regional tourism and accommodation trends
� House & Unit price movements
� General property & tourism market commentary
Website: Website:
www.midwoodaustralia.com
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$375 (incl.GST)
Includes four quarterly
reports and on-line access