Planning Report IDAS Forms Cover letter, Owner's consent, Appendices 2- PLM minutes & 3 - Economic Needs - Email 1 of 4 MCU16/0153 & REC16/0041

3.0 ACCOMMODATION MARKET
3.1    TRENDS IN SHORT-TERM ACCOMMODATION

The international accommodation industry has seen several changes, disruptions and emerging
trends over recent years. Investment in accommodation has largely been driven by demand from
Asia, with 33% of global hotel investments in 2015 coming from Asian investors, according to
Ernst & Young’s 2016 Global Hospitality Insights report. The sharing economy has also had a
significant impact upon the market. With more than 1.5 million peer-to-peer listings across 190
countries, Airbnb has significantly increased competition particularly for low cost
accommodation providers, although there is debate as to whether this disruption is likely to help
or hinder the accommodation industry.

Recent growth in the Australian tourism and hotel sectors has been extremely strong, with
international visitation growing 8.2% and domestic tourism increasing 7% in 2015 according to
Deloitte Access Economics’s ‘Tourism and Hotel Market Outlook 2016’ report. Furthermore,
overall occupancy rates for Australian hotels were 68.4% in 2015 according to data from STR
Global. This is expected to grow to 71.8% by 2018 based upon forecasted growth demand for
accommodation and expected increase in supply.

The relative maturity of the Australian tourism market, the age of accommodation stock and lack
of significant investment post the 2000 Olympic Games, the upcoming 2018 Commonwealth
Games on the Gold Coast, coupled with concessions offered by councils such as Brisbane City
Council, has stimulated interest from international operators. This level of investment and
commitment to the Australian market will have a significant impact on the quality and nature of
the accommodation stock available, and the markets that the Queensland tourism sector can
target, including the growing Asian travel markets.

Much of Queensland’s tourist accommodation infrastructure is dominated by small, privately run
enterprises as well as older accommodation stock in need of renewal and redevelopment.
Investment in the hotel and tourism industry typically comes in waves, with incentives in the
Brisbane CBD for instance, attributed to the announcement of several new hotel and short-term
accommodation facilities.

The significant new development of hotels and resorts in Brisbane, including boutique hotels,
coupled with investment in new infrastructure such as the upgrade to the Sunshine Coast Airport,
is expected to have a flow-on effect to other destinations such as the Gold and Sunshine Coasts,
attracting new visitor markets to Brisbane, who will then seek to extend their stay in other
destinations.




                                                                                        7 | Page