Gold Coast accommodation and the tourism industry

Gold Coast Hotels(excluding motels/serviced apts)

� Occupancy peaked in 2007 at 72.9%

� Room nights sold peaked in 2007 at � Room nights sold peaked in 2007 at

1.69 million

� Supply peaked in 2007 at 25,550 rooms

Source: ABS/Dransfield

Gold Coast Accommodation(hotels/motels/serviced apts)

� Occupancy peaked in 2007 at 70.7%

� RevPAR peaked in 2007 at $92.28per � RevPAR peaked in 2007 at $92.28per night

� Room nights sold peaked in 2007 at

3.38 million

Source: ABS/Dransfield

Gold Coast Accommodation 2009

� Avg occupancy fell to 62.8%

� RevPAR fell to $80.58 per night

� Room nights sold fell to 3.16million

Source: ABS/Dransfield

Gross Avg. Annual Income per Hotel Room ($)

2008 2009 Change

Gold Coast $42,985 $40,522 -6%

Cairns & TNQ $36,137 $28,200 -22%

Brisbane $55,730 $51,165 -8%

Queensland $42,572 $39,457 -7%

Hotel Occupancy Rates (%)

2006 2007 2008 2009

Gold Coast 70.8 72.9 71.5 69.9

Cairns & TNQ 67.3 64.2 60.9 53.1

Brisbane 81.3 81.5 77.8 75.1

Queensland 69.0 69.3 67.9 64.2

Source: ABS 8635.0

Change in Gold Coast Hotel Room Rates & Occupancy 1999-2009

20.0

occupancy % point change

room rate % change

Source: ABS 8635.0

2.7

1.8

-0.6 -0.2 0.4

7.3

2.30.3

3.0

-1.9 -2.2-5.0

6.0 6.0

2.04.0

5.0

5.0

8.06.0

0.0 -0.1

-20.0

-10.0

0.0

10.0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Gold Coast Accommodation

� The Gold Coast reached its cyclical peak in 2007, ahead of Australia as a whole

� A low performing year in 2008, due to � A low performing year in 2008, due to GFC, which avoided oversupply but constrained short-term growth

� Forecasts indicate recovery from 2010

� Soul & Hilton will bring 319 rooms to the market by 2012

Gold Coast Hotels 2017 Forecast

2017 Forecast Change 2009-17

Occupancy 67.6% +4.8%

RevPAR $117.49/night +$34.50/night

Room nights sold 4.10million +940,360

Source: Dransfield

Return on Investment

(AEC Group, National Tourism Investment Strategy, 2006)

Business Type (AUST) ROI 1998-2004

Tourism Businesses 11.8% pa

All Businesses 14.9%pa

(AEC Group, National Tourism Investment Strategy, 2006)

� The tourism industry has been saved by technology and innovation

�Low cost airfares and accommodation packaging

�Online booking and virtual tours

International Visitor Arrivals to Australia and Shocks to Growth

3

4

5

6

Arr

ivals

(m

illi

on

s)

10

15

20

25

30

% c

han

ge

Sydney Olympics

RHS % chgLHS, Arrivals

Sources: ABS Overseas Arrivals & Departures (ABS Cat 3401.0)

0

1

2

1981 1985 1989 1993 1997 2001 2005 2009

Arr

ivals

(m

illi

on

s)

-10

-5

0

5 % c

han

ge

Asian Financial CrisisPilots' Strike Sept 11 Bali

BombingSARS GFC

Domestic VisitorsQLD Regions 2000-09

600,000

700,000

800,000

900,000

1,000,000Brisbane -0.6%pa

Gold Coast 3.3%pa

TNQ 0.7%pa

Vis

itors

Source: Tourism Research Australia , Tourism QLD

0

100,000

200,000

300,000

400,000

500,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Sunshine Coast 0.9%pa

Whitsundays 0.7%pa

Vis

itors

Year Ended

International Visitors QLD Regions 2000-09

4,000,000

5,000,000

6,000,000

Gold Coast -0.5%pa

Brisbane 2.4%pa

Vis

itors

0

1,000,000

2,000,000

3,000,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Sunshine Coast 2.7%pa

TNQ -2.0%pa

Whitsundays 0.7%pa

Source: Tourism Research Australia , Tourism QLD

Vis

itors

Year Ended

Domestic Visitor NightsQLD Regions 2000-2009

Gold Coast 0.7%pa

12000

14000

16000

18000

20000

Vis

itor

Nig

hts

p.a

. *

('000's

) Brisbane 3.7%pa

* Visitor nights include all commercial accommodation premises, not visiting friends or relatives, not children <14

Source: Tourism Research Australia , Tourism QLD

TNQ 0.6%pa

Whitsundays -0.3%pa

0

2000

4000

6000

8000

10000

12000

98

/99

00

/01

02

/03

04

/05

06

/07

08

/09

Year Ended

Vis

itor

Nig

hts

p.a

. *

('000's

)

Sunshine Coast 2.7%pa

International Visitor Nights QLD Regions 2000-2009

Vis

itor

Nig

hts

p.a

. *

('000's

)

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000Brisbane 8.8%pa

Vis

itor

Nig

hts

p.a

. *

('000's

)

Year Ended

* Visitor nights include all commercial accommodation premises, not visiting friends or relatives, not children <14

Source: Tourism Research Australia , Tourism QLD

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Gold Coast 3.3%pa

Sunshine Coast 5.3%pa

Whitsundays 2.7%pa

TNQ 1.2%pa

Accommodation Type Used ‘09

Domestic Visitors International Visitors

Friends & relatives 26% 16%

Hotel, motel, resort, motor inn

37% 49%

Rented house/apt/flat 17% 12%Rented house/apt/flat 17% 12%

Serviced apartment 10% 8%

Caravan park, campground

4% 3%

Backpackers 1% 10%

Source: NVS,IVS, Tourism QLD, Tourism Research Australia

Gold Coast Airport Int’l Arrivals

� Net international inbound capacity for 2010 up four flights per week to total of 44 per week

� Additions from Auckland (Pacific Blue) Kuala � Additions from Auckland (Pacific Blue) Kuala Lumpur (Air Asia X)

� 35% increase on 2009 weekly international inbound seat capacity to a record high of 10,840

Gold Coast Town Plan - North

Gold Coast Town Plan - South

Gold Coast Town Plan

� The Plan does not have tourism precincts

� This increases the land value to the highest use, which is residentialhighest use, which is residential

� Only distinct precinct in the Plan is an eco-tourism area in East Coomera but it is outside the development footprint in the SEQ Regional Plan

Conclusions

� Gold Coast accommodation and tourism operators need to see increasing tourists, both domestic & international

� The industry recovery is expected from 2010 � The industry recovery is expected from 2010 onwards

� Further Federal & local funding is needed to assist in tourism promotion

Also in the Latest Midwood Report

� Population trends & forecasts

� Non-residential building trends

� Dwelling activity (approvals, commencements)Dwelling activity (approvals, commencements)

� New apartment sales/stock survey QLD-wide

� Regional tourism and accommodation trends

� House & Unit price movements

� General property & tourism market commentary

Website: Website:

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