4 minute read
Government Kicks Tourism Goal
from Hotel April 2024
by Boylen
From the President
DAVID BASHEER
Not since the earliest years of the Formula One Grand Prix has South Australia embraced an event quite like Gather Round.
It truly was ‘Adelaide Alive’ and our members played a massive part in the visitor experience that was so highly praised.
It also sent a clear signal on how Government should best invest in tourism.
When investing in tourism, the absolute single key measure is how an event or campaign fills hotel rooms.
Once a hotel room is filled with new money coming into the State, the tourist or business traveller then spends money in bars, restaurants, taxis, retail shops, tourist sites and more.
There will always be a need to invest in local events, but the reality is they merely drag local money from one part of the city or state to another.
INVEST TO FILL HOTEL ROOMS AND THE STATE BENEFITS.
The figures coming out of the weekend are phenomenal. The AHA|SA will always cast a critical eye over Government policies and activities but they deserve a massive bouquet for the energy and inspiration in firstly securing this event - and then making it our own.
It is universally recognised this entire concept has been championed by Premier Peter Malinauskas. Perhaps Gather Round should be renamed ‘Mali Round’.
The Premier had lofty ambitions to bring either Gather Round or Liv Golf to Adelaide. In doing both, he has transformed the way not only interstaters view our State, but indeed how South Australians ourselves.
South Australians have lived being derided by the Vics, with former Premier Daniel Andrews in 2020 taking it one step further by saying ‘I don’t want to be offensive to South Australians but why would you want to go there?’
How views have changed. Anna Moeller did an interview with Victorian radio where they noted that South Australia is now the new destination state to visit. Music to the ears of many of our members!
AHA | SA - COMMISSIONED RESEARCH
The financial return for the weekend exceeded all expectations.
The AHA, working with data firm STR, quicky analysed the impact of Gather Round on the accommodation sector.
The results were stunning. Coming off last year’s high base, occupancy was relatively stable but income rose sharply.
The four actual nights of Gather Round produced a premium of $8.3m of added CBD accommodation revenue over a normal April period. That encourages those hotel owners, many from abroad, to further invest in their properties and our State.
Beyond the metropolitan area, regional venues enjoyed the upside. No surprise the Hills regionextending as far as Murray Bridge - was extremely strong, but so too were areas like Mt Gambier and the South East. One of the keys to Gather Round’s success is it falls in Victorian school holidays. The South East enjoyed the benefit of those casually driving to Adelaide and back home during this period.
Further analysis demonstrated the financial upside of our Gather Round was far superior to the NRL’s corresponding event in Brisbane. The returns may not have matched Melbourne’s Formula One Grand Prix, but given the cost of running the two events, we would say Gather Round is government money better spent.
Of course, it was not just our accommodation members who enjoyed Gather Round’s economic uplift. Our general membership largely reported very positive trading. Those in the Adelaide Oval precinct, Norwood and Mt Barker were on the frontline, but the upside was very widespread and continued into the days the last match was completed.
In an added bonus, many of our members were able to host formal events around the week. I think the only sector that did better than hospitality during that period were a few ex-footballers from the 1980s and 1990s!
Full credit to the Premier and SATC for the manner in which they presented Gather Round. It is one thing to win these prestigious events, another to ensure the visitor experience is such that people spread the word, and return themselves.
That is a fabulous investment in ensuring we maintain these key events beyond a few short years.
WARNING
As we bask in the glory of the football festival and Liv Golf, the AHA|SA does deliver one warning note. I would encourage you to read Anna Moeller’s column on our State budget submission around the labour shortage and tourism.
We remain concerned about the ‘Winter Valley of Death’. Last winter’s accommodation numbers were poor, and the forward numbers over the next few months are highly concerning.
Yes, let’s revel in the extraordinary success of these events, but never lose sight of the fact that our bread-and-butter tourism economy must factor in those rainy Tuesdays in June.