Australia Among Countries Leading Global Hotel Rebound

Australia Among Countries Leading Global Hotel Rebound

The Australian hotel industry has rebounded strongly from the global financial crisis having recorded one of the highest percentages of occupancy globally and one of the largest percentage increases in revenue per available room (revPAR) for the year to May 2010, according to Deloitte.

STR Global figures show hotel occupancy in Australia for the year to May 2010 were 73 percent, up 4.7 percent. In the same period, revPAR was up 34.8 percent to US$108.86, considerably higher than the averages for Asia Pacific (24.2 percent), Central and South America (18 percent), Europe (5.3 percent), and North America (1.9 percent). The Middle East remains the only region in the red (-9.4 percent revPAR drop).

Ian Breedon, Deloitte Real Estate lead partner, said the results were welcoming news for Australia’s hospitality industry.

“Australian hotels weathered the GFC well and their rebound was among the most impressive in the world. Sydney, in particular, had an excellent 12 months and led most other major tourist destinations in occupancy levels and increase in revenue per available room,” Mr Breedon said.

“We expect the recovery to continue in the next 12 months and beyond as the global economy improves and business travel picks up, while baby boomers move into retirement and take those pre-planned overseas trips.”

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In Asia Pacific, Singapore (82.3 percent) and New Zealand (73.2 percent) were the only countries to have higher occupancy than Australia, with the Asian country also ahead in revPAR increase (37.9 percent). Of the other major tourist country destinations, only Egypt recorded occupancy above 70.0 percent, while UK achieved 66.9 percent, U.S. 54.7 percent, France 64.5 percent, Spain 57 percent, and Italy 54.9 percent. Apart from Egypt (20.2 percent), those countries didn’t break double figures in revPAR increases.

When it comes to cities in the year to May 2010, Sydney was the standout performer having recorded occupancy of 83.4 percent (up 9.8 percent) and a whopping 45.8 percent increase in revPAR (to US$132.59). Brisbane’s occupancy was 76.6 percent with revPAR up an impressive 38.1 percent to US$114.42, while Melbourne had occupancy of 75.4 percent (up 2.7 percent) and revPAR increase of 28.1percent to US$118.34.

Sydney’s occupancy (83.4 percent) was the highest of the major cities in Asia Pacific, with Hong Kong the closest at 79.5 percent, followed by Seoul with 79 percent and Osaka at 77.3 percent. Sydney’s occupancy is even more impressive when compared to some of the world’s largest tourist cities, such as New York (77.6 percent), London (77.4 percent), Dubai (75.7 percent) and Paris (72.1 percent). Their revPAR percentage increases didn’t exceed 13.4 percent, paling in comparison to Sydney’s 45.8 percent increase.