Deloitte Access Economics’ Tourism and Market Outlook has found that while 5500 new hotel rooms and serviced apartments were added in Australia during 2017, and nights spent at conventional hotels grew by 5.6% , stays in shared accommodation surged by 9.6%.
This has been put down to business travellers driving the growth of domestic hotel stays, while the increase in shared accommodation rentals is coming from those visiting friends and family on holiday, both domestic and international.
Tourism Research Australia’s latest figures on international visits show a record tourism spend up 6%, but increase in nights spent in hotels, resorts and serviced apartments up only 1%.
Both traditional and sharing economy markets will be affected by the strong pipeline of new hotel developments, with over 40,200 rooms across 200 hotel projects projected until 2025, and 2019 and 2020 tipped to introduce luxury brands including Ritz Carlton, W Hotels and Mandarin Oriental.
Room rates are still expected to climb.