First quarter results from the Australian edition of the HotelBenchmark Survey by Deloitte & Touche, showed that despite declining international visitor arrivals in February and March hotel performance managed to hold up well.
Overall revPAR (revenue per available room) increased by 4.7 percent compared to the same period last year - returning revPAR to the same levels (AUD$103) as those achieved during the first quarter of 2001.
Of the 13 markets tracked across Australia, nine reported positive revPAR growth during the first three months of the year. Of the nine cities monitored, all, apart from Adelaide, experienced an increase in revPAR, with both Hobart and Sydney reporting double-digit growth of 13.7 and 10.3 percent respectively. Both markets benefited from increased demand from festivals such as the Sydney Festival held from 4-26 January and the Fringe Festival in Hobart from 15-30 March.
Although latest figures from the Australian Tourist Commission (ATC) estimate that there were 40,000 less international tourist arrivals to the country during the first three months of 2003, many are expecting the second quarter to be harder hit due to knock-on impact of SARS (severe acute respiratory syndrome) on the region. Already tourist arrivals in April and May are anticipated to be 20 percent lower than in 2002, with demand from SARS affected countries likely to fall by 30 percent. The European long-haul market is also expected to suffer with some travellers concerned about stopovers in Asia en-route to Australia.
Clearly the uncertainty surrounding SARS has necessitated that the ATC realign their marketing strategy again, immediate campaigns are planned in two of Australia's largest single-source markets, New Zealand and Japan. Whilst these are not expected to fully compensate for the overall decline in international visitors numbers they are expected to strengthen demand in the short-term. Looking to the future however, the country still has the Rugby World Cup later in the year to look forward to. Held from the 10 October - 22 November 2003 and expected to attract 40,000 international fans to the country, this should provide Australia's tourism industry with a much-needed boost.
Note: all analysis in Australian dollars.
The Australian edition of the HotelBenchmark Survey by Deloitte & Touche tracks the performance of 53,000 hotel rooms every month. For further information please contact Pooja Madhok at pmadhok@deloitte.co.uk
Logos, product and company names mentioned are the property of their respective owners.
