Highest proportion of holiday rentals might not be where you expect
With holiday homes contributing an estimated $31 billion to national economic growth, according to a report undertaken by BIS Shrapnel, commissioned by the Holiday Rental Industry Association, it’s surprising which locations take out the top holiday rental suburb spots.
With the report finding that holiday rentals generate $5.2 billion in direct spending, on an estimated 276,000 holiday rental dwellings, with more than 25 million nights spent in holiday rentals, spending on average $145 per night per booking, it also sees $3 billion being spent in ancillary industries, such as car hire, restaurant meals, self-catering and similar.
Chair of the association, Allison Manners, said that this explains the economic significance of the holiday rental market, particularly in the areas outside of the cities where there was a strong distribution.
Regional and coastal areas were most likely to benefit from holiday rentals compared to commercial accommodation. There are a number of pros and cons, even with finances aside, when it comes to considering a holiday home investment.
The overall figure, which is both based on direct and indirect spending, should see regional and coastal areas likely to benefit more from holiday rentals, compared to commercial accommodation. Which aligns with their top areas list.
Based on the share of holiday rental accommodation within a suburb, the below list has some surprising, and some not so surprising, entrants.
The top areas:
Fleurieu Peninsula, South Australia (45%)
Hobart, Tasmania (45%)
South West, Western Australia (41.5%)
Sunshine Coast, Queensland (32%)
Mornington Peninsula, Victoria (26.6%)
South Coast, New South Wales (24%)
Gold Coast, Queensland (21%)
“From a regional perspective, State and Local Government policies that support the sustainable growth of the holiday and short term rentals will drive economic growth, jobs and visitation in these regions” said Manners.
If you're considering a holiday home as part of your long-term investment plan, read this guide by David Airey.