With tourism slowly picking up again (thanks in part to our low Australian dollar) some experts are predicting this strained recovery will lead to waves of international tourists once again hitting our shores within the next 5 to 10 years, a boom which may eventually hit a 10 year high.
The Australian Construction Industry Forum is predicting the accommodation and tourism sector will sink $7.913 billion into building renewal and new construction projects over the next 5 years, up by 49%. The latest industry report from research company BIS Shrapnel also arrived at this increased percentage and Frank Gelber, their senior economist is pleased with the opportunities which are arising, mentioning so at a Melbourne conference session in April 2015.
“All of those neglected premises (over the last decade) had no revenue, didn’t even do the maintenance, some of them shut down, others stayed open on a shoestring. Now, as the tourists come back, we’ve got to do them up again and make them attractive destinations and then as they fill up, build new ones. The next building boom, first property, then building boom, will be in the tourism sector. It’s not this year or next year, but over the next five years, you are going to see this come through really strongly.”
So What Do We Know?
According to Frank Gelber, most Australian hotel investment comes from foreigners.
In the 12 months up until September 2014 short term arrivals into Australia jumped by 7.1%.
The Tourism Forecasting Council predicts international visitors will increase by 4.5% annually until 2023.
In 2014, hotel occupancy hit a national high of 68%.
This tourism boom could last 5 to 10 years.
Projects in the Pipeline in QLD
$4.2 billion for the Aquis Great Barrier Reef Resort in Cairns.
$600 million for the Capricorn Integrated Resort Yeppoon.
Huge renovation and renewal of Great Keppel Island Resort and Commonwealth Games Athlete’s Village.
Potential Projects to Enter the NSW Pipeline
$620 million for the Anvil Creek Residential and Golf resort in Allendale.
$230 million for the Anna Bay Resort in the Hunter Valley region.
$250 million for residential, tourism and commercial developments at Lake Jindabyne in the Snowy Mountains.