brisbane hotel stats
DESCRIPTION
Facts and figures for hotel performance in Brisbane, case for resort tax and need for further tourism promotion.TRANSCRIPT
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
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