Brisbane hotels and the
    tourism industry
Brisbane CBD Hotels 2000-08
 Occupancy peaked in 2008 at 81.5%

 RevPAR peaked in 2008 at $128.40 per
 night

 Room nights...
Brisbane CBD Hotels 2009-10
 Occupancy fell to 74.2%

 RevPAR fell to $113.34 per night

 Room nights sold fell to 2.14 mi...
Brisbane CBD Hotels
      Forecast to 2017
                      2017 Forecast    Change 2010-17

Occupancy               ...
Gross Avg. Annual Income per Hotel Room ($)
                      2008      2009       Change
Gold Coast            $42,98...
Change in Brisbane Room Rates &
     Occupancy 1999-2009
                                                 occupancy % poin...
Return on Investment
     Business Type (AUST)              ROI 1998-2004
     Tourism Businesses                   11.8% ...
International Visitor Arrivals to Australia and Shocks to Growth

                      6                                 ...
Domestic Visitors
                               QLD Regions 2000-09
      1,000,000
                                     ...
International Visitors QLD
                            Regions 2000-09
           6,000,000

                             ...
Domestic Visitor Nights
                                             QLD Regions 2000-2009
                               ...
International Visitor Nights
                                     QLD Regions 2000-2009
                                 1...
Brisbane Airport
 Recorded a minimal net loss of three
 international inbound flights in its 2010 schedule
 Gained flights...
The Introduction of a Resort Tax?
 Common throughout the USA, Canada &
 Europe (in the range of 2-14%)

 It sits on top of...
Resort Taxes - Advantages
 They do not burden the normal income tax
 collection system but are a tax on
 consumption
 They...
Resort Taxes - Disadvantages
 Any new tax is generally opposed on
 principle, but this is not a tax on all taxpayers,
 rat...
Resort Taxes in Florida
                    (introduced in1967)
                   Tax                                 Per...
Australian Industry Size – Annual
        Turnover 2007-08
 Food & Beverage              $72bn    9.0%

 Tourism          ...
Annual Council Funding for
   Tourism Marketing

 Local Council    Budget   $ per capita

 Brisbane         $16.6m        ...
Annual Federal Funding for
   Tourism Marketing
       Country           Budget      $ per capita


       New Zealand    ...
Conclusions
 In absolute terms, Brisbane attracts a greater
 share of the tourism market than rivals Gold
 Coast and Sunsh...
Also in the Latest Midwood Report

 Population trends & forecasts
 Non-residential building trends
 Dwelling activity (app...
Website:
www.midwoodaustralia.com

  Annual Subscription:
     $375 (incl.GST)
  Includes four quarterly
reports and on-li...
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Brisbane Hotel Stats

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Facts and figures for hotel performance in Brisbane, case for resort tax and need for further tourism promotion.

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Brisbane Hotel Stats

  1. 1. Brisbane hotels and the tourism industry
  2. 2. Brisbane CBD Hotels 2000-08 Occupancy peaked in 2008 at 81.5% RevPAR peaked in 2008 at $128.40 per night Room nights sold peaked in 2008 at 2.23 million
  3. 3. Brisbane CBD Hotels 2009-10 Occupancy fell to 74.2% RevPAR fell to $113.34 per night Room nights sold fell to 2.14 million
  4. 4. Brisbane CBD Hotels Forecast to 2017 2017 Forecast Change 2010-17 Occupancy 77.9% +3.7% RevPAR $118.36/night +$5.02/night Room nights sold 2.86 million +720,000 Source: Dransfield Hotels, 2010
  5. 5. Gross Avg. Annual Income per Hotel Room ($) 2008 2009 Change Gold Coast $42,985 $40,522 -6% Cairns & TNQ $36,137 $28,200 -22% Brisbane $55,730 $51,165 -8% Queensland $42,572 $39,457 -7% Hotel Occupancy Rates (%) 2006 2007 2008 2009 Gold Coast 70.8 72.9 71.5 69.9 Cairns & TNQ 67.3 64.2 60.9 53.1 Brisbane 81.3 81.5 77.8 75.1 Queensland 69.0 69.3 67.9 64.2 Source: ABS 8635.0
  6. 6. Change in Brisbane Room Rates & Occupancy 1999-2009 occupancy % point change room rate % change 20.0 11.0 10.0 7.0 7.0 6.0 7.0 10.0 5.0 1.0 0.1 0.0 -3.0 0.0 5.2 2.2 3.1 3.4 3.2 1.5 0.2 -0.6 -1.7 -10.0 -3.8 -4.2 -20.0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: ABS 8635.0
  7. 7. Return on Investment Business Type (AUST) ROI 1998-2004 Tourism Businesses 11.8% pa All Businesses 14.9%pa (AEC Group, National Tourism Investment Strategy, 2006) The tourism industry has been saved by technology and innovation Low cost airfares and accommodation packaging Online booking and virtual tours
  8. 8. International Visitor Arrivals to Australia and Shocks to Growth 6 30 25 5 LHS, Arrivals RHS % chg 20 Arrivals (millions) 4 Sydney Olympics 15 % change 3 10 5 2 0 1 Asian Financial Crisis -5 Pilots' Strike Sept 11 Bali SARS Bombing GFC 0 -10 1981 1985 1989 1993 1997 2001 2005 2009 Sources: ABS Overseas Arrivals & Departures (ABS Cat 3401.0)
  9. 9. Domestic Visitors QLD Regions 2000-09 1,000,000 Brisbane -0.6%pa 900,000 Gold Coast 3.3%pa 800,000 700,000 TNQ 0.7%pa Visitors 600,000 500,000 400,000 Sunshine Coast 0.9%pa 300,000 200,000 Whitsundays 0.7%pa 100,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Year Ended Source: Tourism Research Australia , Tourism QLD
  10. 10. International Visitors QLD Regions 2000-09 6,000,000 Brisbane 2.4%pa 5,000,000 Visitors 4,000,000 Gold Coast -0.5%pa 3,000,000 Sunshine Coast 2.7%pa 2,000,000 TNQ -2.0%pa 1,000,000 Whitsundays 0.7%pa 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Year Ended Source: Tourism Research Australia , Tourism QLD
  11. 11. Domestic Visitor Nights QLD Regions 2000-2009 20000 18000 16000 Gold Coast 0.7%pa 14000 Brisbane 3.7%pa Visitor Nights p.a. * ('000's) 12000 10000 Sunshine Coast 2.7%pa 8000 TNQ 0.6%pa 6000 4000 Whitsundays -0.3%pa 2000 0 98/99 00/01 02/03 04/05 06/07 08/09 Year Ended * Visitor nights include all commercial accommodation premises, not visiting friends or relatives, not children <14 Source: Tourism Research Australia , Tourism QLD
  12. 12. International Visitor Nights QLD Regions 2000-2009 18,000,000 Brisbane 8.8%pa 16,000,000 14,000,000 Visitor Nights p.a. * ('000's) 12,000,000 10,000,000 Gold Coast 3.3%pa 8,000,000 6,000,000 TNQ 1.2%pa 4,000,000 Sunshine Coast 5.3%pa 2,000,000 Whitsundays 2.7%pa 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Year Ended * Visitor nights include all commercial accommodation premises, not visiting friends or relatives, not children <14 Source: Tourism Research Australia , Tourism QLD
  13. 13. Brisbane Airport Recorded a minimal net loss of three international inbound flights in its 2010 schedule Gained flights from India, South Pacific Islands and Thailand Maintains 270 international inbound flights per week, compared to 273 in 2008 International inbound seat capacity at a record high of 55,071 per week (+10% over 2008)
  14. 14. The Introduction of a Resort Tax? Common throughout the USA, Canada & Europe (in the range of 2-14%) It sits on top of a GST or VAT All resort taxes in Australia deemed illegal with the introduction of the GST in 2000 A resort tax of 2%pa in Brisbane would yield $107m and 10%pa would yield $535m on current accommodation turnover
  15. 15. Resort Taxes - Advantages They do not burden the normal income tax collection system but are a tax on consumption They do not drain state or local operating budgets They can be applied to the specific problem area, i.e. marketing of tourism by directing collections into relevant tourism authorities
  16. 16. Resort Taxes - Disadvantages Any new tax is generally opposed on principle, but this is not a tax on all taxpayers, rather it is user-pays There are additional administrative costs, as with the GST They can create market distortions if too large and not widely applied
  17. 17. Resort Taxes in Florida (introduced in1967) Tax Percent Municipal Resort 2% Food & Beverage 2% Tourist Impact 2% Convention Development 2% Tourist Development 1% Enacted legislation to be used for: • The creation and maintenance of convention centres, cultural/arts centres •The enhancement and promotion of tourism •Appropriate signage installation and maintenance
  18. 18. Australian Industry Size – Annual Turnover 2007-08 Food & Beverage $72bn 9.0% Tourism $75bn 9.4% Retail $150bn 18.8% Motor Vehicles $173bn 21.6% Manufacturing $250bn 31.3% Other – Education/Govt etc $80bn 10.0% Total GDP $800bn
  19. 19. Annual Council Funding for Tourism Marketing Local Council Budget $ per capita Brisbane $16.6m $9.20 Sunshine Coast $8.5m $27.50 Gold Coast $10m $20.00 Cairns $4m $2.60
  20. 20. Annual Federal Funding for Tourism Marketing Country Budget $ per capita New Zealand AUD$190m* $45.25 Bali AUD$43m $31.70 Fiji AUD$29m $27.65 Australia AUD$169m $7.68 * Air New Zealand contributes $90m
  21. 21. Conclusions In absolute terms, Brisbane attracts a greater share of the tourism market than rivals Gold Coast and Sunshine Coast The tourism industry in Australia is underfunded by comparison with its contribution to GDP A fresh approach for additional funding for tourism marketing is needed. A resort tax could be the answer
  22. 22. Also in the Latest Midwood Report Population trends & forecasts Non-residential building trends Dwelling activity (approvals, commencements) New apartment sales/stock survey QLD-wide Regional tourism and accommodation trends House & Unit price movements General property & tourism market commentary
  23. 23. Website: www.midwoodaustralia.com Annual Subscription: $375 (incl.GST) Includes four quarterly reports and on-line access

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