Hobart and Greater Hobart Accommodation Supply Analysis
The 2017 Accommodation Supply Analysis for the Hobart and Great Hobart Region follows a 2014 study to assess the status of tourism demand and identify the extent of accommodation supply required to meet future demand. The 2017 study also sought to gain insight into key visitor segments, particularly the high yield category.
The study was undertaken by BDA Marketing Planning on behalf of the Office of the Coordinator-General.
- Tourism demand has grown strongly over the past four years, with the biggest gain from the international market.
- Average annual occupancy levels are high with Hobart City at 82 per cent and Greater Hobart at 78 per cent to June 2016, with Hobart City’s occupancy sitting at over 90 per cent for six months of the year.
- With analysts advising that 75 per cent occupancy is good for a vibrant sector, these results indicate that accommodation businesses in Hobart and surrounds are practically full year round.
- Under a number of demand growth scenarios, with the current pipeline considered, more rooms are required in Hobart and Greater Hobart to meet growing demand.
- For the T21 target, Greater Hobart requires an additional 1 700 rooms by 2020 which includes 1 478 rooms in Hobart City. If visitor numbers continue to grow at the current growth rate the requirements could be as high, or higher than 1 763 rooms in Hobart and 2 069 in Greater Hobart.
- The number of visitors to the state who spend over $2 000 per trip has grown by over 50 per cent in the last three years.
- These higher spending visitors are evenly split among genders, are more likely to be older, are working or retired with above average income. They spend an average of 15 nights in Tasmania compared to the current state average of 8.5 nights.
- This high-yield group spend around double that of the average visitor and prefer 4-5 star accommodation options.
- As a result, there has been especially strong growth in demand for these 4-5 star hotels.
- Demand for rental accommodation is rising strongly and the sharing economy is estimated to be used by about 10 per cent of domestic visitors.
- BDA also advised that 17 per cent of members of high-end hotel loyalty programs are either driven (3 per cent) or at least influenced (14 per cent) in their decision of holiday location by the presence of branded properties.
- Given that between 50 and 60 per cent of guests staying in the Australian properties of the top branded programs are loyalty members, it is expected that the introduction of premium brands such as Hyatt, Marriott, InterContinental and Accor to Tasmania will introduce new visitor demand of around 10 per cent of all guests who stay in these hotels, even without any distribution impact of these loyalty programs.
The Tasmanian Government’s Visitor Economy Strategy is a partnership between government and industry that aims to grow annual visitor numbers to Tasmania to 1.5 million by 2020, and so generate visitor expenditure of around $2.5 billion a year, greater capital investment and more jobs.
The Office of the Coordinator-General has been established by the Government to promote and attract investment into Tasmania, to facilitate major projects and to reduce red tape.
The Office is the principle agency for investment attraction and is your first point of contact within the Tasmanian Government if you want to establish, relocate, diversify or expand your business in Tasmania.
The Government, through the Office is providing low interest loans through the Tourist Accommodation Refurbishment Loans Scheme to commercial tourism operators to revitalise and raise the standard of their accommodation offering.
Hobart Accommodation Supply Analysis Summary (pdf 132.4kb)