Short-term high a long-term boon for Australian hotels

Hotels have been hot property in the first half of 2015

Australia’s tourism and hotel markets are the beneficiaries of a boost in overseas travellers making pitstops in our capital cities, according to new research.

A CoreLogic report shows short-term arrivals to Australia are at an all-time high, with almost 7.7 million recorded in the 12 months to May – an 8.6% rise on the previous year.

The low Australian dollar is drawing tourists and businesspeople in droves, according to the report, with China figuring significantly.

“In fact, annual Chinese short-term arrivals to Australia have increased by 23.7% over the past year and have doubled since March 2012,” the report says.

The longer-term benefits can’t be overlooked, potentially encouraging some of these travellers to return for longer holidays in the future

“Looking at the top six countries for short-term arrivals to Australia shows that arrivals from New Zealand are starting to trend lower while UK arrivals are fairly flat.”

“Growth is largely coming from China, while short-term arrivals from Singapore, Japan and America are recording moderate increases.”

The Pullman Cairns sold earlier this year for $75 million. Picture: Pullman Hotels

Australia’s hotel market is set to benefit from an increase in short-term travel.

Countries recording the greatest increase in short-term arrivals in Australia over the past year are China (23.7%), Philippines (20.7%), Poland (19.0%), Vietnam (17.4%) and Taiwan (17.1%), according to the research.

While almost half of short-term arrivals into Australia are for holidays, with almost 3.8 million visits for that purpose over the past year, around 2 million visits are for family visits.

Meanwhile, short-term arrivals aren’t the only category experiencing growth, with stays of between one and two weeks, two weeks to a month, and more than month all on the rise.

Growth is largely coming from China, while short-term arrivals from Singapore, Japan and America are recording moderate increases

“The longer-term benefits can’t be overlooked, potentially encouraging some of these travellers to return for longer holidays in the future or even to immigrate to the country in the future,” CoreLogic’s report says.

“Although it is encouraging to see that so many people are prepared to come to Australia for just a short length of time, the growth in stays for between one and two weeks is encouraging.”

“If travellers stay longer in Australia, ultimately they are also more likely to end up spending more in Australia, which provides a boost to the local economy.”