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07-08-2014, 10:37 PM
Better infrastructure is attracting overseas investment in tourism
THE AUSTRALIAN AUGUST 08, 2014 12:00AM
Lisa Allen
Property & Tourism Reporter
Sydney
‘The planets are aligning for a prosperous tourism sector for the next decade,’ says Accor boss Simon McGrath. Source: News Limited
RECORD foreign tourist arrivals coupled with backing of state and federal governments is attracting more offshore investors to the $100 billion-plus tourism industry, according to Australia’s largest hotelier.
Accor’s chief operating officer for the Pacific, Simon McGrath, said the Victorian, Queensland, NSW and South Australian governments were shoring up the nation’s tourism sector with new infrastructure, which was attracting European funds and investors.
“These governments are giving offshore investors more certainty. We are seeing increased interest from Asia, the Middle East and Europe in hotel developments in Australia,” said Mr McGrath, who runs more than 200 Accor hotels in Australia.
“The pleasing shift in government is they are understanding that to drive new-hotel supply they need to build tourism infrastructure such as convention centres (and) stadiums, and improve access to city airports. We are seeing evidence of that …
“This is why we are getting interest from the Middle East and Europe.”
While revenue per available room grew in Accor’s Sydney and Melbourne hotels by an average of 8 per cent this year, Mr McGrath said revenues in Perth and Brisbane remained flat “due to a recalibration because of the high occupancy levels experienced during the mining boom”.
He added: “We are starting to see growth now. European funds and investors are looking at assets currently up for sale that is based on the strength of the industry here. The planets are aligning for a prosperous tourism sector for the next decade.”
International visitor arrivals grew almost 500,000 in the 2013-14 financial year, according to the Australian Bureau of Statistics.
Tourism lobby group Tourism & Transport Forum said the annual growth rate of 7.9 per cent was the highest in a decade.
For the year to June, 6.65 million international visitors came to Australia.
Meanwhile, Mr McGrath said Accor’s Pullman brand was now the fastest growing luxury hotel chain in Australia, with the group announcing a new Pullman to be developed at Brisbane Airport by the Flynn Group.
Of the 200 hotels Accor runs in Australia, its franchise portfolio controls 70. “We are targeting to have 100 hotels in our franchise portfolio by 2016.”
THE AUSTRALIAN AUGUST 08, 2014 12:00AM
Lisa Allen
Property & Tourism Reporter
Sydney
‘The planets are aligning for a prosperous tourism sector for the next decade,’ says Accor boss Simon McGrath. Source: News Limited
RECORD foreign tourist arrivals coupled with backing of state and federal governments is attracting more offshore investors to the $100 billion-plus tourism industry, according to Australia’s largest hotelier.
Accor’s chief operating officer for the Pacific, Simon McGrath, said the Victorian, Queensland, NSW and South Australian governments were shoring up the nation’s tourism sector with new infrastructure, which was attracting European funds and investors.
“These governments are giving offshore investors more certainty. We are seeing increased interest from Asia, the Middle East and Europe in hotel developments in Australia,” said Mr McGrath, who runs more than 200 Accor hotels in Australia.
“The pleasing shift in government is they are understanding that to drive new-hotel supply they need to build tourism infrastructure such as convention centres (and) stadiums, and improve access to city airports. We are seeing evidence of that …
“This is why we are getting interest from the Middle East and Europe.”
While revenue per available room grew in Accor’s Sydney and Melbourne hotels by an average of 8 per cent this year, Mr McGrath said revenues in Perth and Brisbane remained flat “due to a recalibration because of the high occupancy levels experienced during the mining boom”.
He added: “We are starting to see growth now. European funds and investors are looking at assets currently up for sale that is based on the strength of the industry here. The planets are aligning for a prosperous tourism sector for the next decade.”
International visitor arrivals grew almost 500,000 in the 2013-14 financial year, according to the Australian Bureau of Statistics.
Tourism lobby group Tourism & Transport Forum said the annual growth rate of 7.9 per cent was the highest in a decade.
For the year to June, 6.65 million international visitors came to Australia.
Meanwhile, Mr McGrath said Accor’s Pullman brand was now the fastest growing luxury hotel chain in Australia, with the group announcing a new Pullman to be developed at Brisbane Airport by the Flynn Group.
Of the 200 hotels Accor runs in Australia, its franchise portfolio controls 70. “We are targeting to have 100 hotels in our franchise portfolio by 2016.”