If the trials and tribulations of the last few years have taught us anything, it’s that our industry is resilient. Through fire, flood and plague, accommodation hotels have endured, adjusted, and continued to do their best to support staff and guests, no matter the challenges. As I write this our members are being tested yet again. The eastern seaboard has just been battered by another East Coast Low and many members have again endured terrible flooding. Members in NSW in particular have suffered with major flooding in the Hunter, the MidNorth coast, the Shoalhaven and south-western Sydney. The weather event struck right in the busy school holiday period and our hearts go out to these members. TAA will be working with those affected to help them get the support they need. Despite the flood damage in coastal parts of the south-east, from a national perspective, things are looking very positive for our industry. If you take a step back and reflect on where we were as an industry at this time last year, the news is overwhelmingly good. The borders are open. Our hotels are restriction free. Demand is high and confidence is returning. All our gateway cities are experiencing resurgent occupancy figures and regional areas not effected by the recent flooding have seen a school holiday surge in bookings. Brisbane is currently trading at approximately 72 percent occupancy, and the school holidays are proving profitable for the Gold Coast, Sunshine Coast and Perth.
TAA VOICE
Weathering the storm Demand is high and confidence is returning
Michael Johnson CEO, Tourism Accommodation Australia
reduced number of tourists and office workers in our cities.
The biggest improvements have been in our major markets of Sydney and Melbourne, boosted significantly by the return of big events like the Formula One Grand Prix and the Vivid Festival of Lights.
Data for the last week of May showed revenue per available room in Sydney was up 65.5 percent against the same week in May last year. Occupancy peaked at 82.8 percent on 28 May 2022.
April 2022 figures released by STR show Melbourne’s hotel industry recorded its highest monthly room rates on record during the Australian Grand Prix.
It is sad many hotels must cap room numbers at these busy times due to the chronic staffing issues faced by all, however, the trickle-down effects of these events are clear.
And the news was just as good in Sydney during Vivid. The lights extravaganza saw hotel bookings jump to above 80 percent for the first time since the pandemic began.
For example, more than 2.1 million Vivid visitors enjoyed a sit-down or take-away meal at the festival, with people dining in restaurants up 24 percent on 2019.
This is a far cry from last year when entire floors of hotels were closed (indeed some accommodation hotels were actually shut) due to the lack of visitors Vivid Sydney 2022 smashed attendance records, with more than 2.58 million visitors flocking into the city from across regional NSW and interstate. The festival celebrated its largest-ever opening night, with more than 140,000 attendees, plus the biggest opening weekend in the event’s history, with 440,000 attendees. Large events like Vivid bring foot traffic and much needed revenue into city hotels which have suffered badly during the last two years and are still struggling to cope with staff shortages and the much-
Destination NSW and the State Government should be congratulated for staging an event which gave our sector such a boost in the quiet winter months. It is a great example other states and territories should be paying close attention to. Out of the cities, regional NSW, Victoria, and the ACT saw a surge in bookings from the first day of the school holidays. A stark contrast to the winter break last year when COVID restrictions were rigid, and all the borders were closed. Bookings in places like Albury/ Wodonga, on the Victoria and NSW border were up 75 percent on last year and similar figures were recorded in areas
INDUSTRY
like Goulburn and Orange in NSW, the border regions of the ACT and in popular Victorian holiday areas like the Mornington Peninsula. The biggest issue for all our hotels continues to be staffing. Many hotels struggled to keep up with demand in the holiday period and had to limit services because of a lack of skilled staff and the continued problem of staff being off sick with COVID or the latest strain of influenza. TAA recently held a seminar with immigration experts to inform members how to make the most out of the recently negotiated temporary labour agreement. The new labour agreement means a list of key occupations, including restaurant manager, hotel or motel manager, hotel service manager, accommodation and hospitality manager, cook, chef and pastry cook, will now have a pathway to permanent residency. A pathway to permanent residency is a huge drawcard. Countries like New Zealand and Canada have had this in place for a while and this agreement will make Australian hotels much more competitive in attracting key staff. It is not a silver bullet that will solve all our labour shortcomings, but it is a very good step forward, and it has been encouraging to see so many of our hotels starting the process. AccomNews - Winter 2022
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