Sydney, Melbourne hotel performance leads national pack: Savills

Sydney, Melbourne hotel performance leads national pack: Savills
Sydney, Melbourne hotel performance leads national pack: Savills

A weaker dollar has positioned Australia as a key international travel destination with holidaymakers from China, New Zealand and the US preferring Sydney and Melbourne, according to Savills.

The Hotel Market Report 1H/2015 from Savils noted near full mid week capacity in the key corporate months of the year.

Savilss director of hotels, NSW, Vasso Zographou said Sydney and Melbourne are also the primary recipients of the annual 6.6 million international visitors to Australia receiving 51% and 32% respectively, which represents 5.5 million of the total pie.

Increased cruise ship business, he said, particularly in Sydney, has also contributed to increased pre- embarkation and post disembarkation overnight stays.

"China, which represents 13% of total visitors, recorded 829,000 visitors, representing an increase of 130,000 YoY (up 19%)," he said.

"We note however that the impact of the recent rout on China’s stock market and the devaluation of the Renminbi on China’s middle class and their appetite for long haul travel is yet to be tested, albeit we nonetheless expect continued growth. In particular, growth has been expected in destinations like Australia, where there has been far greater currency devaluation, making it more cost effective for Chinese travellers.

"New Zealand, which represents 18% of total visitors and is Australia’s largest international source market, recorded 1,142,000, representing an increase of 50,000 YoY (up 5%) and the USA, which represents 8%of total visitors recorded 535,000, representing an increase of 47,000 YoY (up 10%) on the back of a stronger green back as the USA economy continues to grow."

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Sydney, Melbourne hotel performance leads national pack: Savills

 

Michael Crawford

Michael Crawford

Michael is the real estate reporter for western Sydney and loves writing about homes and the people who live in them. A former production editor and news journalist, he enjoys writing about real-world property purchases as well as aspirational buys and builds. Following a recent move from Sydney’s northern beaches, Michael now actually enjoys commuting.

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