Watch development controls at lower end of accommodation market

The latest ABS Survey of Tourist Accommodation figures show the supply of serviced apartment rooms has increased by a hefty 8.5% for the September Quarter 2005(compared with Sept Qtr 04). Over this period hotel room supply has increased by just 1.6%. Victoria (13.2%), NSW (9.6%) and WA (9.35) have seen the greatest increase.

The Tourism & Transport Forum (TTF) warns of looming problems with little development control at the lower end of the accommodation market and calls on Australian governments and the tourism industry to ‘better embrace’ this booming sector.

Chris Brown of TTF makes the following comments:

1)”The serviced appartment hotel sector has responsed to a growing demand for self-contained, flexible and diverse accommodation options and has reaped the rewards. In many cases, it has also tapped into the large retail investment market, using strata sales and negative gearing opportunities.”

2)”While tourists might spend less on their hotel accommodation at an apartment, we do not know if this means another day at the theme park, a better restaurant and longer stays – or simply a lower tourism spend?”

3)”The (operators at) the top end of the market… have produced legitimate apartment hotels that have proved very attractive to business and leisure consumers as well as investors.”

4)”However there are some operators at the bottom end of the market that continue to flout local planning laws and whose development and operational practices threaten industry profitability and duty of care to visitors.”

WHAT IS THE TOURISM & TRANSPORT FORUM?
TTF Australia describes itself as a national, member-funded CEO forum, advocating the public policy interests of the 200 most prestigious corporations and institutions in the Australian transport, property, tourism & infrastructure markets.