DWS Senior Consultant, Jude Bolger delves into the performance of Queensland’s accommodation industry over the past 12 months in comparison to previous years.
The following table identifies the occupancy, average room rate and revenue per available room performance for Queensland tourism regions. Data is derived from ABS Catalogue 8635355001, Queensland Small Area Accommodation Data. All figures are exclusive of GST.
Overall, data across most designated tourism regions is positive with RevPAR growth above that of the consumer price index recorded for the traditional leisure destinations of the Gold Coast, Far North Queensland and the Whitsundays; however, the Sunshine Coast continues to demonstrate a sluggish performance with marginal growth over the previous year.
The major corporate centre of Brisbane continues to show good performances with RevPAR growth of 5.4%, down from significant growth of 11.6% the previous year. The majority of growth in the 12 months to September 2012 arises from increases in average room rates with marginal, although positive occupancy growth. Easing supply constraints over the forthcoming three years, will likely place downward pressure on RevPAR.
The Darling Downs posted strong RevPAR growth of 12.4% in the 12 months to September 2012 and is as a result of increased resources activity west of Toowoomba. Other resources centres continue to see growth in RevPAR with strong performances demonstrated in Mackay, although down from the previous year. Bundaberg is also demonstrating a recovery in RevPAR; however, both occupancy and average room rates still have some ground to make.
Overall, Queensland posted strong RevPAR growth of 7%, up from 4.7% the previous year and signals that the significant declines in performance in the major leisure centres have ceased. Notwithstanding this, the main factors that led to a decline in the Queensland leisure markets persist and include the strong Australian dollar and uncertainty, albeit improving in the global economy.
If you would like to discuss this further please contact Jude Bolger on 0488 100 539 or Jude@dws.net.au.
