The G20 is going to present Brisbane with a number of opportunities for tourism, however the question being raised is, 'will the city be able to meet the demand?'
Some commentators believe Brisbane is short six to eight hotels which will be needed in the next ten years. Last year’s opening of the Sheraton on Mary Street was the first internationally branded hotel to open within the last 16 years in Brisbane.
Brisbane’s Lord Mayor Graham Quirk has said this lack of internationally recognised hotels has lost Brisbane 121,000 visitors a year. This equates to over 1000 jobs and a loss of $114 million in economic opportunities.
Developers and Investors need to remember what Expo 88 did for Brisbane. The Expo brought the world to Brisbane and opened our eyes culturally. It brought business, tourism, night life and modernity. G20 can do the same if we seize the opportunity.
The main reason for this lack of hotels, is a fear amongst developers in building high-end hotels. Most developers believe there are more returns in the residential building industry.
There is the reason for fear due to the high risk of the venture, however, with expert advice it presents huge opportunities for everyone involved.
There is a hope however, that increased activity, strong profits and an increase in land sales across the construction industry will eliminate some of this fear.
Commercial building is at its highest level since the Global Financial Crisis due to an increase in the business conditions of commercial builders.
The same can be said for residential builders as land sales increase dramatically. The total number of sales for the 2013/14 financial year is up ten percent compared to the 2012/13 financial year
This increase in confidence will dramatically increase the number of people in the workforce and have a flow on effect to suppliers, real estate and tourism.
The Federal Government has planned to spend $8 million refurbishing Brisbane’s major hotels, however ditched the plans, believing the hotels were more than suitable.