|Focus on North Queensland accommodation market|
|Written by Jude Bolger | DWS Consultant | email@example.com|
|Thursday, 10 May 2012 10:42|
A number of factors have conspired to make tough
trading conditions for the accommodation industry in North Queensland over recent years.
In particular, leisure destinations in North Queensland have felt the impact of a high Australian dollar value, disaster association and an oversupply of accommodation.
We take a look at the current conditions affecting the market in the North Queensland region and the relationship of supply and demand.
The following graph shows the occupancy and average room rate (adjusted for GST) for the Northern Queensland market derived from ABS Small Area Tourist Accommodation Data and is inclusive of the major leisure destinations of Cairns and Port Douglas.
Figure 1 – Northern Queensland Hotels, Motels & Serviced Apartments Occupancy & Average Room Rate
To understand performance on the previous year, the following graph depicts monthly revenue per available room (RevPAR) for 2010 compared to 2011.
Figure 2 - Northern Queensland Hotels, Motels & Serviced Apartments RevPAR 2010 versus 2011
The destinations of Cairns and Port Douglas have been experiencing poor performances for a number of years and anecdotal evidence suggests that the decline in performance has bottomed out. To understand the cyclical nature of supply and demand in Northern Queensland, the following graph presents a six year view of room supply and occupancy.
Figure 3 – Northern Queensland Room Supply versus Occupancy
Notwithstanding this, data from Cairns airport shows that domestic inbound travellers has significantly increased over the past two years and is as a result of some diversification of the regional northern economy away from tourism to new sectors such as resources.
For the accommodation market in Northern Queensland to grow further, reliance on leisure tourism will need to be reduced within the local economy and diversification into other areas grown for exposure to the strong cyclical nature and leisure tourism risks to be reduced.
For any accommodation enquiries or for more information please contact our Accommodation Specialist Jude Bolger on (07) 3878 9355 or by email.