Australian Hotel Sector

[greengiraffe]

Tony Fung’s plans for Cairns casino delayed
BUSINESS SPECTATOR NOVEMBER 24, 2014 3:11PM

HONG Kong billionaire Tony Fung is now hoping to list Casino Canberra in Hong Kong to fund his ambitious $8 billion development in north Queensland, after the acquisition of a Cairns casino looks set to collapse.

This is a back-up plan Mr Fung has been mulling since he unveiled his ambition for Australia’s casino market last year.

Mr Fung’s Aquis Casino Acquisitions has offered about $217 million to take over Reef Casino Trust (RCT), which owns the Reef Hotel Casino complex in Cairns. He also wants to invest about $8bn to build a six-star casino and resort at Yorkey’s Knob, 15km north of Cairns.

It is understood that Mr Fung had expected to get full control of RCT before December 31, and then list the company on the Hong Kong Stock Exchange next year.

Mr Fung needs to have operational control of the business for at least 12 months before listing it in Hong Kong, according to the listing rules.

That will allow him to use the listed company as a vehicle to raise capital in Hong Kong, both in equity and debt, to fund the Yorkey’s Knob project in 2016.

However, Aquis said this morning that Queensland’s Office of Liquor and Gaming Regulation was unable to meet a November 28 deadline for a decision on whether to grant regulatory approval for the proposed takeover.

The offer expires on November 28, and Aquis says it will not extend it, which means the offer is set to lapse.

The back-up plan for Mr Fung now has to be using another vehicle: Casino Canberra.

Aquis had previously agreed to buy Casino Canberra from Casinos Australia, which was conditional on ACT’s gaming regulatory approvals and the RCT offer.

The ACT gaming regulator has said it might be possible to grant the approvals within this year, giving the companies hope that the deal will complete before Christmas.

Aquis and Casinos Australia now have agreed that the deal is no longer conditional on the RCT offer, and also have reduced the acquisition price to $6m.

Aquis is now hoping it will list the acquired business in Hong Kong next year and then rebrand the vehicle to raise fund in 2016.

RCT shares were $1.30, or 32.4 per cent, lower at $2.71 at 12:04pm (AEDT).

[greengiraffe]

Sydney partners pay $110m for Sheraton
BEN WILMOT AND LISA ALLEN THE AUSTRALIAN NOVEMBER 27, 2014 12:00AM

Lisa Allen

Property & Tourism Reporter
Sydney
Escape Travel Sheraton Noosa.
The Sheraton Noosa Resort and Spa has been sold after a refurbishment. Agent Sam McVay called it one of the best holiday resorts in Australia. Source: Supplied

THE landmark Sheraton Noosa Resort and Spa on Queensland’s Sunshine Coast has been bought by a couple of wealthy Sydney investors for a bullish $110 million from the Valad Property Group as demand for regional hotel assets heats up.

The Karedis and Laundy families have snared the resort after spirited bidding and could look to revamp the ageing asset, that has been weighed down by uncertainty over its ownership for years.

Valad picked up the Noosa site for $93.6m in 2007 and later fund manager Ashington Group was brought into the project.

Valad and Ashington had originally planned to undertake a residential conversion, potentially with luxury accommodation, but their partnership descended into a legal battle before Valad won back the site in 2011 as Ashington collapsed.

After denials to The Australian last week Greg Karedis, son of Theo’s Liquor founder Theo Karedis, is understood to have led the purchase of the 176-room resort on Noosa’s Hastings Street in partnership with the Laundy family of publicans, led by Stuart Laundy.

The five-star Sheraton Noosa opened in 1989 and had been offered for sale several times but a recent $6m refurbishment helped the latest campaign through McVay Real Estate. Selling agent Sam McVay said the property was one of the best holiday resorts in Australia. It earned about $6m last year and is on track to generate $7.2m next year.

Vacant possession will also be available for the first time in 25 years at the end of next year which could see the hotel management changed or a new deal with Starwood stuck.

The resort was picked up by Blackstone in its 2011 takeover of the Valad Property Group. Valad has since refocused on managing Blackstone’s rapidly growing portfolio of Australian office and retail assets.

Theo Karedis sold his bottle shop chain to Coles Myer for a reported $175m in cash and shares in 2002. The Karedis family owns Sydney’s Manly Pacific hotel with the Laundy family.

Mr McVay said there had been strong demand for major gateway city hotels this year that was now spilling over into property assets in regional areas, which had driven interest in Noosa and Gold Coast.

A strong field of bidders is chasing the Gold Coast Sheraton Mirage with suggestions that its owner Pearls Australasia could reap about $170m for the property. McVay Real Estate and Knight Frank are marketing the hotel.

Noosa battle hots up

Mercedes Ruehl
407 words
11 Nov 2014
The Australian Financial Review
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.

The Sheraton Noosa Resort and Spa has received record bids of more than $120 million, with the competition on to buy the iconic Queensland coastal town asset.

The Karedis family, which has invested in a number of commercial properties, is tipped as a front-runner, say sources close to the transaction.

No deal has been struck yet and a host of other strong domestic and offshore groups are understood to still be in the running for the hotel.

Noosa is the second home of many millionaires and wealthy business elite and has been dubbed a playground for the rich and famous. The 176-room Sheraton Noosa is owned by Valad Property Group, which is controlled by Blackstone.

If investment companies associated with Theo and Greg Karedis do ultimately acquire the hotel it would be one of the first big purchases of a hotel by a domestic buyer in some time. Theo Karedis, who came in at number 92 on the BRW Rich 200 list for 2014, has bought hotels in partnership with Arthur Laundy before. The pair bought the Manly Pacific Hotel back in 2003. The family invests through Karedis Investment Group and Arkadia Property Services, which is headed by Greg Karedis.

Valad could not be reached for comment and the Karedis Investment Group was uncontactable. The campaign is being run exclusively by McVay Real Estate, who also declined to comment. McVay is also handling the sale of the Gold Coast Sheraton Mirage with Knight Frank.

Leased to Starwood Hotels and Resorts, The Sheraton Noosa has been reported as having redevelopment and value add opportunities.

The sale would market yet another transaction in a record year for Australia's hotel market.

Many big ticket and iconic hotels have traded hands this year, primarily to offshore investors.

China's Sunshine Insurance Group is in the final stages of securing the Sheraton on the Park in Sydney for about $465 million.Earlier this year the Sofitel Wentworth went to the Singaporean Frasers property group, for $202.7 million.

Meanwhile The Australian Financial Review first revealed that Hilton Worldwide was putting its Sydney hotel on the market.

JLL has been appointed to sell the asset although it is understood the campaign will not officially start until 2015. Price expectations are for well over $450 million.

Key points Karedis family tipped as front-runners to buy landmark hotel. Interest from domestic and offshore investors.


Fairfax Media Management Pty Limited

Document AFNR000020141110eabb0002x

[greengiraffe]

Dexus and Brookfield chase historic sandstone
THE AUSTRALIAN NOVEMBER 27, 2014 12:00AM

Sandstone sale
The historic Department of Lands building in Sydney’s financial core has been put on the block by the NSW government. Picture: Jane Dempster Source: News Corp Australia
REAL estate heavyweights Dexus Property Group and global asset manager Brookfield are among the suitors bidding for the two historic sandstone buildings being offered by the NSW government in the financial core of Sydney.

The groups have traditionally focused on office towers but competitive pricing has led many groups to consider investing in new areas including health, social infrastructure and even residential development.

Other contenders are Singapore-based tourism and real estate giant Far East Organization which may introduce its iconic five-star Fullerton brand here and the privately owned global travel group, The Travel Corporation, which has long wanted to bring its luxury Red Carnation hotel brand to either Sydney or Perth as both hotel owner and operator.

Expressions of interest for the redevelopment of the Education and former Lands Department buildings on Bridge Street, both to be converted into hotels, close on December 3 through Macquarie Capital which is advising the NSW government.

The properties, dating back to the 1890s, will be offered in one line on a 99-year lease.

FEO, and its Hong Kong-based subsidiary Sino Group, own a string of hotels in Asia, including a stake in the local Toga Group.

FEO already operates a number of historic building hotel conversions, including the prestigious Fullerton Hotel in Singapore, as well as the Amoy hotel, a heritage temple conversion.

The company has previously expressed an interest in bringing a number of its hotel brands to Australia, including Quincy and Oasia.

FEO declined to comment, but it is understood the group has yet to decide whether to bid for the buildings by itself or as part of the Toga joint venture.

The company recently purchased two sites to be converted into hotels, one each in Sydney and Brisbane. The office block on the corner of Elizabeth and George Streets in Brisbane could be converted into a hotel as early as next year.

FEO, Singapore’s largest private developer, has quietly built an Australian portfolio worth $1.4 billion, acquiring six office properties in Sydney and Perth this year.

Brookfield has about $200 billion of assets under management including a portfolio of Australian hotels, which it acquired through its acquisition of the $410m Thakral hotel portfolio in 2012 as part of a grand plan to redevelop Sydney’s Wynyard railway station. Brookfield has been trying to sell off the five-hotel portfolio for the past few years with mixed results.

There has been growing interest by Asian hoteliers in Sydney and Melbourne in the last year. Hong Kong-based Ovolo Hotels will open a regional headquarters in Melbourne after acquiring four hotels this year, including BLUE Sydney, at Woolloomooloo. The group has plans to rebrand the hotels, two in Sydney and two in Melbourne, under their own brand.

But not all of the world’s luxe brands are interested in the heritage-listed sandstone buildings.

Peninsula Hotels chief operating officer Peter Borer in Sydney recently confirmed to The Australian the company would not bid for the sandstone buildings. However, Mr Borer reaffirmed the hotelier’s interest in Sydney.

Dexus declined to comment, and Brookfield could not be reached.

[greengiraffe]

Challenger takes $145m Next step
THE AUSTRALIAN NOVEMBER 27, 2014 12:00AM

Challenger takes Next step
Next Hotel in Brisbane Source: Supplied
FINANCIAL services giant Challenger has aggressively delved into the booming hotel sector buying Brisbane’s Next Hotel from a Singaporean group for about $145 million.

Challenger is not alone in gaining a foothold in the booming hotel sector — last Friday Chinese behemoth insurer Sunshine shelled out $463m for Sydney’s 557-room Sheraton on the Park hotel in an Australian record. Not to be outdone, a smaller Chinese outfit is about to plough $53m into the local hotel sector, buying Jerry Schwartz’s Holiday Inn hotel at Sydney Airport, while the Goodman group and Accor yesterday announced a $100m deal to develop a five-star Pullman nearby.

In Brisbane, the vendor of the 4½-star Next Hotel, the SilverNeedle Group, has ploughed $50m into refurbishing the former Lennons Hotel on Queen Street Mall almost doubling its room count to 304 after acquiring it for $57m in 2012. Forecast revenue per available room for the hotel is expected to grow by nearly 4 per cent a year until 2022 given Brisbane hotel occupancies have averaged more than 76 per cent since 2000.

Global fashion label Forever 21, one of the largest private companies in the US, inhabits the ground floor retail space of the hotel in its first Australian presence. The deal was negotiated by Dean Dransfield of Dransfield Hotels and Resorts and Simon Rooney of JLL along with the firm’s hotel division. The agents and parties declined to comment.

Challenger has also been linked to plans to develop an $80m five-star “Botanic Hotel’’ on the southeast edge of Sydney’s Domain.

The financial services group has emerged as one of the most nimble property funds players and has snapped up assets including The Barracks complex in Brisbane, and shopping centres, including a $602m portfolio of Federation Centres assets.

Challenger has also been active in office property, as well as chasing property debt deals, and is acting for both its life unit, which took the $560m Challenger Diversified Property Group private, and foreign mandates.

[greengiraffe]

New 240-room hotel for Perth

Samantha Hutchinson
228 words
29 Nov 2014
The Australian Financial Review
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.

The InterContinental Hotels Group will plant its first five-star flag in Western ­Australia at a former Rydges Hotel site in the middle of Perth.

The hotel operator and UNIR Hotels, a south-east Asian investment group, will open a 240-room InterContinental Hotel on the corner of Hay and King streets.

UNIR has managed the site for 18 years. It is chaired by Carl Tong, a Macau ­gaming magnate who also chairs Macau Legend, which operates casinos under the licence of casino mogul Stanley Ho.

The new luxury hotel opens in early 2017. It will be the sixth InterContinental Hotel in the country.

The group in past weeks has opened the InterContinental Hotel in Sydney's Double Bay, and is continuing a roll-out of Holiday Inn Express branded hotels at the same time.

A transparent regulatory environment, high occupancy and strong yields have made Australian hotels attractive for SE Asian investment groups, IHG acquisitions head Steven Carroll said.

"Its a safe entry market and it offers higher yields compared to Asian cities . . . and occupancy is above 80 per cent in most markets," he said.

The hotel is near Perth's Convention Exhibition Centre, His Majesty's Theatre, and a short distance from the prestigious King Street shopping with luxury brands such as Prada, LV, Gucci and Chanel.


Fairfax Media Management Pty Limited

[greengiraffe]

Big deals make up for lower volumes
THE AUSTRALIAN DECEMBER 02, 2014 12:00AM

Lisa Allen

Property & Tourism Reporter
Sydney
MORE than $2.35 billion worth of hotels are expected to change hands this year, but transaction volumes are well down on previous years.

A report from Savills Hotels says 2014 transaction volumes were 22.5 per cent down on 2013 figures, although a number of high-price landmark establishments sold during the year.

Apart from the recent $463 million sale of the Sheraton on the Park Hotel in Sydney to China’s Sunshine Insurance Group, other big deals this year were the $360m sale of the Sofitel Hotel Darling Park in Sydney to private hotelier Jerry Schwartz and the $135m sale of the Park Hyatt Melbourne Hotel.

Led by Perth, national hotel occupancies jumped to 80.9 per cent in October, up from 79.2 per cent in the previous year.

Perth achieved the highest hotel occupancies in October, averaging 89.7 per cent, followed by Sydney and Melbourne both achieving 87.4 per cent, and Adelaide with 85.7 per cent, according to STR Global.

The Savills Hotels report says the emerging Asian middle class with its thirst for overseas travel, coupled with improved domestic business conditions, was benefiting the Australian hotel sector.

French hotelier Accor, meanwhile, continues to expand its network, yesterday announcing it would rebrand the 109-room Four Points Sheraton Geelong as the Novotel Geelong and the 223-room Chifley Hotel Penrith as the Mercure Penrith.

Accor is focusing on regional areas because of new infrastructure projects planned, including Badgerys Creek Airport in Sydney’s west. “Areas such as Geelong and Penrith have been targeted for major infrastructure projects that will attract both significant business travel as well as larger local populations as a result of increased work opportunities and proximity to Melbourne and Sydney respectively,” Accor Pac­ific COO Simon McGrath said.

The InterContinental Hotels Group, the world largest, also recently announced it would manage the former Rydges Hotels site in the heart of Perth. Owned by an Asian investor, the 240-room hotel will open as an Inter-Continental by early 2017.

Big regional hotel sales during the year included the $48m sale of the Novotel Northbeach Hotel in Wollongong, south of Sydney.

[greengiraffe]

Tough visas for China a drag on tourism, says TTF
PUBLISHED: 28 NOV 2014 01:06:31 | UPDATED: 28 NOV 2014 01:06:31

TTF chief Margy Osmond says Australia’s visa application process has fallen behind the rest of the world.  Photo: Daniel Munoz
Fast-tracking travel
HUGH ARNOLD

It is far easier for independent Chinese people and business travellers to visit the United States, Britain and ­Canada than Australia since the introduction of online visa applications and the slashing of processing times in those countries.

“If you’re an aspirational Chinese traveller, you have to fill in a 15-page form, in English, which takes between 15 days and a month, for you to get a visa and then pay $130 for it,” Tourism & Transport Forum (TTF) chief executive, Margy Osmond says.

“Here we are putting all this ­emphasis on China and yet we’re not making it easier for Chinese people to come here. If you’re coming to ­Australia from Hong Kong, you can get a visa online for $20. If you’re coming from Malaysia, you can get it online for $20. You have to ask about the prioritisation of our key market in terms of ­customs, border control et cetera and their willingness to push the visa issue.”

Osmond insists, despite the benefits of the recently concluded Australia-China free trade agreement, the TTF should continue to lobby about the visa issue because Canada, the United States and Britain – big rivals for the Chinese dollar – have done something about it.

“In the US last year, they had ­1.8 million Chinese visitors, and they spent something like $21 billion, and the US government is predicting that the reforms that they’ve made to their visa process will result in $85 billion going into their economy by 2021.

“I think that’s a pretty compelling reason to do this. If you look at Chinese travel growth into Australia over the last 12 months, it’s sitting just over 10 per cent. In the US they’ve seen 23 per cent growth, and in Canada they’ve seen 30 per cent growth. At the moment the UK is offering a 24-hour visa.

You can get a visa within 24 hours ­from certain parts of China if you’re going to the UK.”

The US, Britain and Canada also have similar procedures for visitors from other growth markets in Asia, such as India, Indonesia and Vietnam; countries TFF says will fuel the next travel boom.

GLOBAL HUB
Osmond says the visa issue should have been part of the recent trade ­discussion process. “It doesn’t mean the Chinese have to do it, it’s something we have to do.

“TTF estimates the tourism industry generates $100 billion in expenditure every year and directly employs more than 540,000 people, and visa reform would see that economic contribution become even bigger.”

Conversely to the visa issue, Osmond and the TFF are positively enthusiastic about the benefits for business and travel in Sydney and beyond, stemming from Premier Mike Baird’s recent expansive infrastructure announcements and the G20 decision to install Sydney as a global infrastructure hub.

“There is more infrastructure ­construction under way in Sydney than any other city in the world at this point in time, so we’re a natural place for the hub to be,” Osmond says.

“We are going to be the focus of a huge amount of development, design, engineering and logistics: the ­opportunities for increased visitation, for conferences, businesses or simply with the people who will be helping us deliver those infrastructure projects, are really outstanding.”The concept of ­infrastructure and business tourism being critically linked is an “absolute no-brainer”, Osmond says.

“If we don’t make cities that are good to live in and that operate well as cities, with the right kind of transport infrastructure, the right kind of public transport . . . they’re not going to be good places to visit or do business;.

“They’ve got to be good places that ­operate well within that modern infrastructure environment.”

INFRASTRUCTURE
As well the huge reinvestment in transport infrastructure, the TFF has also welcomed the investment in ­cultural and sport infrastructure from the state government’s proposed asset recycling, which it says will also boost the NSW visitor economy and help the state achieve its target of doubling ­overnight visitor expenditure by 2020.

“This is the kind of big-picture ­thinking that the tourism industry has been keen to see,” Osmond says.

“These investments mean a more liveable, exciting Sydney that continues to attract international and domestic visitors. Sporting events and the arts play a critical role in the NSW visitor economy and today’s announcement will help those sectors to contribute even more in the future.”

The establishment of the infrastructure hub by the G20 is estimated to add around $US2 trillion ($2.3 trillion) in global ­infrastructure capacity up to 2030, another $US600 billion in GDP and ­10 million jobs annually.

The intention is the hub will be funded by the Australian government, the other G20 members, other participating countries and big business, with an initial four-year brief that will be re-assessed after the first three years.

The Australian Financial Review

[greengiraffe]

Tempting China’s real estate entrepreneurs
THE AUSTRALIAN DECEMBER 04, 2014 12:00AM

Lisa Allen

Property & Tourism Reporter
Sydney
HILTON HOTEL SYDNEY
Sydney’s Hilton Hotel. Source: News Corp Australia
BILLIONS of dollars worth of Australian real estate is being eyed by some of China’s wealthiest entrepreneurs as the federal ­government attempts to meet self-imposed infrastructure in­vest­ment targets by the end of the decade.

A delegation of some of China’s wealthiest entrepreneurs, with a combined net worth of $US82 billion ($98bn), were offered 10 multi-million-dollar projects in Sydney this week, including the $400 million Hilton Hotel, as well as development opportunities in Brisbane’s Queens Wharf, ­Sydney’s Barangaroo and Perth’s City Link.

Macquarie Group, Goodman and the local arm of Chinese developer Greenland helped Austrade and Tourism Australia promote the assets to the 31-­member China Entrepreneur Club. Established in 2006, members of the CEC include Frank Wu, chairman of Central China Real Estate (assets $US5bn) and Ma Weihua, chairman of the Wing Lung Bank, (assets $US32bn).

Following the meeting, instigated by Tony Abbott, the Chinese delegates said they were planning to buy more local real estate. “It was clear that some of the Chinese attendees had specific intentions in relation to additional investment in Australia. There was a cross-section of people who had existing investments and some were looking for new investment,” said one delegate.

Mainland Chinese investors have purchased nearly $1bn of Australian commercial property this year, according to JLL.

The chairman of private equity group China Equity Group, Wang Chaoyong, said he was in Australia to learn, study and understand more about investment opportunities. “We are looking for marinas in major coastal cities and we also want to invest in wineries,” Mr Wang said.

He said Australia was well known for its natural resources and agricultural sector.

“(But) this trip we learned Australia is a very good tourist destination with many opportunities to invest in infrastructure related to the tourist industry such as new hotels, upgrading hotels, travel agencies, and better hospitality programs,” Mr Wang said.

“With the growing sailing community in China, we are looking for investment opportunities in marinas and yachting industries, which could make sail boats for ­export to China.”

Commenting on China’s ­Sunshine Insurance Group, which has just paid a record $463m to buy Sydney’s Sheraton on the Park Hotel, Mr Wang said “insurance companies in China are looking for low but steady income. We have an insurance company ... I ­believe they may have a similar idea in the future.”

He added: “I had a good meeting with the Prime Minister and we were very encouraged and share the same sentiment as the free trade agreement. I think Chinese customers will have a great opportunity to enjoy the lower cost and higher quality Australian agriculture and dairy products.”

Austrade chief executive Bruce Gosper said a focus of the meetings was on the economic relationship and tourism given the Chinese were Australia’s second-largest source of tourist income and the highest spending. “They are going to be very important for our tourism sector and we are very interested in facilitating investment in tourism infrastructure. If we want to reach some of the projections that industry and government have set for the tourism sector we need big improvements for our tourism infrastructure.”

Under the Tourism 2020 plan the government wants to increase investment in tourism, noting that in the decade to 2010 investment in tourism grew at just half the pace of investment in the rest of the economy.

[greengiraffe]

Listed as 4-star Hotel, seemed to have been sold @ A$212,000 per key...

http://www.holidayinn.com/hotels/us/en/s...v=99618083

Schwartz sells out of Sydney airport
THE AUSTRALIAN DECEMBER 04, 2014 12:00AM

Kylar Loussikian

Journalist
Sydney
Lisa Allen

Property & Tourism Reporter
Sydney
HOTELIER Jerry Schwartz has finalised the sale of the 250-room Holiday Inn at Sydney Airport, which has been purchased by Hong Kong interests for $53 million.

Dr Schwartz listed the property after securing the rights to buy one of Australia’s largest hotels for $360 million from Lend Lease as part of Darling Habour’s $2.5 billion redevelopment.

The country’s largest private hotel investor, Dr Schwartz will bankroll a five-star, 35-floor hotel to be run by French hotelier Accor as a Sofitel.

The 616-room property is expected to open in late 2016.

The sale of the Holiday Inn, brokered by JLL’s Mark Durran, allowed for the redirection of funds into that project.

The Sydney airport hotel market has continued to record high levels of occupancy, despite the opening of a Rydges Hotel last year. Year to date occupancy rates above 80 per cent have been sustained.

The sale of the Holiday Inn Sydney Airport comes as Canberra rich-lister Nick Georgalis completed the sale of his Abode Hotel property in Woden.

Mr Georgalis’s GEOCON will continue to manage the hotel, known as Juliana House, which was sold for $28.8m to a Melbourne-based group with a number of international interests. This is that group’s first Canberra acquisition.

GEOCON purchased the property in 2012 and opened the 151-room apartment-style hotel late in 2013 after a lengthy refurbishment.

The sale was also brokered by Mark Durran, with fellow JLL agent Greg Lyons and CBRE.

Mr Georgalis, GEOCON’s managing director, said the decision to sell and lease back the hotel would help the business grow.

“We have a number of exciting residential projects and new Abode hotels coming to market next year and this will definitely allow us to progress our vision to build in Canberra,” he said.

Elsewhere, the 844-room Rydges Hotel in Melbourne’s Bell City precinct will be rebranded as a Mantra and BreakFree from late December following its acquisition by Elanor Investors Group.

The Bell City site consists of two towers, a 383-room 4.5 star hotel which will carry the Mantra brand, and a larger 461-room tower which will become a 3.5 star BreakFree hotel.

[greengiraffe]

Tourist revenue growth at 9-year high

Jamie Freed
633 words
4 Dec 2014
The Australian Financial Review
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.

The rise in spending by international tourists shows no signs of letting up, with visitor spending up 9 per cent to $30.7 billion in the 12 months ended September 30.

Tourism Research Australia's latest International Visitor Survey released on Wednesday shows the rise slightly outpaced an 8 per cent rise in arrivals.

Tourism Australia chief executive John O'Sullivan believed they are among the best annual international visitor ­figures in some time and represent an early Christmas present for the tourism industry.

"You'd have to go back as far as 2005 to see visitor spending growing above this level and [it] is exactly the kind of performance we need to sustain if we are to achieve our Tourism 2020 targets," he said, referring to a goal of total domestic and international visitor ­overnight spending of $115 billion to $140 billion.

Mr O'Sullivan said leisure continued to perform strongly and noted "positive signs of a return to growth in business-related travel." Overall, 62 per cent of those visiting Australia were repeat visitors and 32 per cent of the nights booked were spent outside the major gateway cities of Sydney, Melbourne, Brisbane and Perth.Record numbers of arrivals

Arrivals into NSW, Victoria, South Australia, Western Australia and Tasmania reached record levels. However, the Northern Territory was affected by a downturn in the UK, its largest source market, and Queensland numbers continued to be hit by a decline in Japanese visitors, although the Sunshine Coast reported 9.4 per cent growth.

Spending by travellers on holidays and visiting friends and relatives rose by 13 per cent to $17.3 billion in the 12 months to September 30. There was an increase in spending on outdoor activities, with scuba diving up 13 per cent, sailing, windsurfing and kayaking up 9 per cent and snorkelling up 5 per cent.

Chinese tourists remained the biggest overall spenders over the 12 months to September 30, although New Zealand remained the top country in terms of arrivals.

The number of Chinese tourists rose by 10 per cent and their spending rose by 16 per cent to $5.4 billion, outpacing the second-biggest-spending market, the United Kingdom, which was up 14 per cent to $3.65 billion.

There was also impressive growth from other markets, including an 11 per cent rise in tourists from the United States, a 14 per cent rise from Singapore and a 23 per cent rise from Malaysia. Singapore has overtaken Japan in visitor numbers despite having a tiny population base by comparison.

"It is very encouraging to see such strength in leisure travel, and to see the strong growth in travel to Australia that Asian markets have experienced in recent years now extending to inbound markets such as New Zealand, North America and Europe," Tourism Research Australia assistant general manager Tim Quinn said.Malaysia's strong growth

The increase in tourist numbers from Malaysia fits with data from online travel agent Expedia showing Malaysia had strongest growth in demand for Australian hotel bookings from any Asian market in the September quarter.

Expedia also experienced triple-digit growth in Australian hotel bookings from Taiwan, South Korea and China during that period. Overall, Asian bookings of Australian hotels through Expedia rose by more than 80 per cent in the September quarter.

Malaysia Airlines and AirAsia X have both ramped up flights to Australia over the last year, with stiff competition leading to a sharp fall in fares. However, both airlines have indicated they could make cuts to their flying schedules next year.

Key points Visitor spending grew 9 per cent to $30.7 billion in the year to September 30. Arrivals into NSW, Victoria, South Australia, WA and Tasmania hit record levels.


Fairfax Media Management Pty Limited

Document AFNR000020141203eac40002b