3 minute read
SPRING BRINGS OPTIMISM – AND GROWTH
from Hotel SA Sep 2024
by Boylen
From the CEO
As an industry association, we are pleased that the government is acutely aware of the seasonal nature of the hotel sector and the severe dip in occupancy rates in Winter.
This has led to a range of initiatives, including a multimillion dollar investment for events and tourism specifically for the colder months of the year.
As the football season draws to a close, we see that ‘spring has sprung’ and we’re now entering the gateway to a period of rising occupancy rates.
There is a lot to look forward to and be optimistic about, including the VAILO Adelaide 500, Test cricket, the Tour Down Under, the Adelaide Festival, Adelaide Fringe and LIV Golf (see story on page 10).
After suffering through winter and reduced demand, we have recently been reminded how good events are for us.
The case in point is the Port v Geelong AFL qualifying final atAdelaide Oval. While the result was possibly a disaster (depending on who you barrack for), it attracted a huge number of people from interstate.
Hotel occupancy rates were above 90% for both the CBD and the greater metropolitan area on the Friday night, which gave people the opportunity to enjoy a long weekend and visit our regions.
Since Covid, we have added 20% more room nights to the market and yet the occupancy rate is holding. That’s a clear sign that we have a growing tourist economy. Now we need that demand growth to continue.
When it comes to inflows of new money into the economy from interstate visitors, it all starts with the bed night.
We continue to impress upon the State’s leaders that once someone has booked a room in South Australia, they need to buy breakfast, lunch and dinner, which helps fill our cafes, bars and restaurants. We also know that tourists like to shop, which is great for retail. They also travel into our regions, buying our wines and spending at every stop. After a quick taste of what SA has to offer, many of them return for a longer holiday.
Destination State
The Government is on a mission to make South Australia a “destination state” - and they are well on the way. Looking forward, we will continue to work with government and its tourism and events bodies to attract more business events and conferences to supplement sporting events during winter. Conferences are not weather dependent.
Of course, this focus needs to be a year-round effort.
Why? Because research clearly shows that the business traveller spends three times more than the leisure visitor.
In closing, there is a growing sense of belief in South Australia as an event and destination state. SATC’s promotional campaign “Travel. Our Way” will only boost this.
So, too, will the recent announcement that China Southern Airlines - one of the three largest airlines in China - is resuming direct flights to Adelaide.
Reconnecting South Australia with its second largest international tourism market is very significant for both tourism and trade.
Finally, I want to thank all of the people – from hotel staff right through to the peak decision-makers in government - who work every day to grow our sector. Your hard work is greatly appreciated.
Anna Moeller, AHA|SA CEO
