Hitting the ground running

It’s great to be able to write my first column for AccomNews as CEO, and I’m looking forward to the opportunity to communicate with you regularly and directly.

My focus in my first couple of weeks in the new role has been to fully understand the issues in our sector, and it’s very clear that workforce challenges remain a huge priority. Attracting and retaining skilled staff is critical across the sector and understanding current and planned changes to visa and migration rules is also crucial.

I’ve already had meetings in Sydney and Canberra with Jobs and Skills Australia Commissioner Professor Barney Glover, the Department of Education and Training, and the offices of the new Minister for Home Affairs and the new Minister for Skills and Training.

It’s encouraging to see the importance placed on our sector, and we have strong access and engagement with these decision-makers. The key is to ensure this access translates into a proper understanding and respect for our issues. That’s why we need to maintain evidencebased advocacy and a united voice. Indicators like occupancy rates and staff shortages are key for the government and tell an important story about the state of the accommodation sector.

I was surprised to see that much of the data being relied on is from 2021 or 2022. Relying on pandemic-era data doesn’t provide an accurate or upto-date assessment of what you’re experiencing right now. Current data is crucial, and we rely on our hard-working members to provide it.

As some of you might know, I came from the aviation sector, where I worked as CEO for the peak body, the Australian Airports Association. It’s no surprise I maintain an interest in related issues that affect both tourism and accommodation.

Wherever we are in Australia, we should all welcome the news that Melbourne Airport’s long-awaited third runway has been cleared for construction by the Federal Government. I note AA Victoria’s Dougal Hollis recently welcomed this very announcement in the media.

This key infrastructure project will commence construction in 2025 and is set to open in 2031. It couldn’t come at a better time. Melbourne Airport’s annual passenger numbers are expected to grow from 36 million currently to 76 million by 2042. To meet this demand, the hotel development pipeline will see more than 7000 new hotel rooms across 30 new properties open in the state over the next few years.

Melbourne Airport’s increased capacity will drive more inbound demand to fill our expanded accommodation inventory and encourage visitor dispersal to regional areas and other parts of Australia. We know that wherever international tourists enter Australia, they often travel around the country to experience as much as they can. Around 30 percent of domestic flight passengers are international tourists. While infrastructure is one part of the equation, we must collectively work to attract more international visitors to Australia. Promoting our unique destinations and accommodation offerings to new people and markets will remain vital for some time.

International tourist numbers remain at just 83 percent of pre-COVID levels, according to July 2024 figures from the Australian Bureau of Statistics.

Our top source country for international visitors is New Zealand, followed by China, the United States of America, Japan, and the United Kingdom. Chinese visitors are still at 69 percent of pre-COVID levels, and predictions suggest they may not return to previous numbers. Diversifying our markets will be important, and the accommodation sector needs to be ready to support growth in new and emerging markets.

It’s great to see that arrivals from South Korea are at 149 percent of pre-COVID levels and arrivals from India are at 103 percent. There’s also strong growth from South-East Asian countries.

I’m excited to lead the sector during this exciting period of growth and renewal.

Despite challenges such as rising operating costs, chronic workforce shortages, and increasing regulatory burdens, it’s clear to me that the passion of the people in the accommodation sector makes it all possible. That passion drives us all to do better for our industry, the communities we operate in, and ultimately, the guests we serve.