New Melbourne and Perth hotels will reduce occupancy (Breakthrough 7)
Australia's tourism industry is expected to continue to grow strongly. However, with the opening of new hotels, the vacancy rates at Melbourne and Perth hotels are likely to rise, according to a new report.
According to Radio 7, (Deloitte Access Economics) partner at Deloitte economic Research Institute, Adele Labine-Romain, said 32 new hotels will open in Melbourne over the next two years, adding 6500 rooms to the current supply of about 20, 000 rooms.
Rabe-Roman said that in recent years the Melbourne market has come to absorb a large number of new hotels. However, due to the number of new hotels, hotel occupancy is forecast to drop to less than 80 percent by 2020.
Perth is also set to welcome a number of new hotels, including the Ritz-Carlton in Elizabeth wharf (Elizabeth Quay), which has pushed local hotel room occupancy below 70 percent.
Meanwhile, the overall hotel occupancy rate in Australia is heading in the opposite direction, rising 2.4 percent a year over the next three years. In addition, the average hotel rate is expected to exceed A $200 per night by 2021.
According to Deloitte's Tourism and Hotel Market Outlook (Deloitte's Tourism and Hotel Market Outlook),) released today, the number of Australian international tourists is expected to grow by an average 6.2 percent a year over the next three years and is expected to exceed 10 million next year.
Chinese tourists to Australia will continue to grow, but growth is likely to fall short of the double-digit average of the past five years. Indian tourists are expected to grow the fastest, growing 3.5% a year over the next three years.