brisbane hotel stats

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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