Years Serving the SA Hotel Industry
From the President DAVID BASHEER – AHA|SA PRESIDENT
Cause for Optimism We have all suffered the frustrations of COVID-19 and the financial challenges it has inflicted upon us.
Because pubs are such a part of South Australians’ DNA , we are well placed to capitalise on that.
But looking at the facts, I am optimistic there are blue skies ahead.
After the first lockdown last year, we saw how strong trade was at re-opening. Most businesses reported strong trade in the weeks before the June border closures and July lockdown. When I look at the overseas experience, it also supports the argument for a period of strong trading in 2022.
It won’t be 100% smooth sailing and as Ian Horne forecasts in his column, there will be setbacks – but I expect those to be periods of short-term pain. Here are the top 10 things to look forward to for a positive 2022 in business. 1. EVERY DAY CAN BE A BIT LIKE CHRISTMAS Vaccination rates are on the rise, meaning the threat of mass lockdowns and large scale restrictions are diminishing. I am convinced the pent up demand for events, travel or just going out uninhibited with friends will result in a sustained period where every day can feel a little like Christmas. So many events and special occasions were postponed - and many people will want to celebrate when finally given the opportunity.
Bring it on!
Interest rates continue to be low. After their October board meeting, the Governor of the RBA confirmed the 0.1% rate was unlikely to rise until 2024 at the earliest. For any pubs that have been forced to take on extra debt through COVID-19 or are looking to invest in their business, this is welcome news. With the economy having an optimistic outlook and unemployment low, SA is considered a centre for good growth industries going forward.
2. HOTEL VALUES UP
4. REGIONAL VENUES GROW
The spate of hotel sales in recent months, including renewed interstate interest, has seen hotel valuations rise. Even if selling your hotel is not part of your current thinking, a healthier valuation in the eyes of your bank releases opportunities for many.
A great legacy of the border closures is that South Australians have discovered their own backyard. Seeing what the regions have to offer and spreading the word to others will lead to regional tourism re-establishing itself and growth for our country venues who did it tougher than most.
It wasn’t that long ago that every hotel sale in this State seemed to be a distressed one. How quickly that tide has turned. 3. LOW INTEREST RATES AND BUSINESS CONDITIONS
4 | Hotel SA | W W W . A H A S A . A S N . A U
5. GAMING GROWTH SUSTAINED The new gaming legislation which came into effect on February 19 this year has seen a sustained growth
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