03 Jul 2013
Words Tim Admin

Tourism: State of the Nation

I recently attended the Tourism & Transport Forum (TTF Australia) Outlook ’07 conference, which attracted CEOs from Australia’s leading accommodation, aviation and tourism companies.Many operators are still complaining about the “same old things” – no money to refurbish, can’t find good staff, overly aggressive room discounting, etc. Key challenges raised by delegates were:

• Whilst overseas accommodation offerings are going ahead rapidly, there are virtually no new developments or conversions underway in Australia.
• The over-regulation and delays in the approval process deter investors/developers. Building costs are too high to justify new motel development.
• Australian occupancy rates are generally quite healthy, yet average daily room rate growth has been inhibited by overly cautious owners and operators.
• A major imbalance in government spending on national and international campaigns versus regional promotions.
• Labour costs and the difficulty in recruiting qualified labour is responsible for the emergence of new limited-service accommodation product.
• The industry has given little thought to the issues associated with climate change.
• Current Australian restrictive aviation policies serve to interfere with hotel performance in the wide spectrum, as compared to the recent liberalisation on European routes.
• The threat of disease and security breaches is increasing and planning must address such incursions.
• The new generation of tourism and hotel leaders must be encouraged by strong mentoring programs paid for by the industry.These were generally agreed as the major stumbling blocks to increased profitability, and that only a co-ordinated approach by industry bodies, in partnership with government, will clear the path to growth.