MORE HOTELS NEEDED TO ATTRACT BIG BUCKS
Written on the 11 April 2014 by Karen Rickert
STATE and local governments are working to encourage more hotel infrastructure in the city and boost visitation with an updated 2014 Guide to Hotel Investment in Brisbane.
The guide informs developers on economic conditions, demand drivers and supply requirements.Speaking at the launch yesterday, Lord Mayor Graham Quirk (pictured) says he hopes to build on the additional 575 hotel rooms and 337 serviced apartments already in the pipeline.
“Due to a shortage in internationally-recognised, full-service hotel room supply, Brisbane is forgoing about 121,000 visitors a year.“The shortage is causing the market to defer an estimated 278,000 room nights every year – about 14 per cent of current demand,” he says.
Quirk says lack of supply equates to a loss of about 1,100 jobs and $114 million for the economy.He applauded the council’s three year moratorium for new four and five star hotel developments, but says more is needed to secure international events.
Minister for Tourism, Major Events, Small Business and the Commonwealth Games Jann Stuckey says the plan will restore confidence in the tourism sector.“In doing this, we’re delivering a pro-business environment which supports new and renewed investment in accommodation.
“We want to maximise visitor numbers to the State and achieve our goal of doubling annual overnight visitor expenditure from $15 billion to $30 billion by 2020,” she says.Cr Stuckey says Brisbane is a “very attractive” hotel development opportunity, with the lowest payroll taxes in the country.
Consultants AECGroup estimate the city could sustain up to 330 rooms each year until 2022, in the new report.