Sydney hoteliers are confident of a strong summer amid a shifting inbound travel landscape, reported at Accommodation Australia (AA) NSW’s recent Hotel Market and Economic Outlook.
Addressing 160 hotel managers and directors at The Fullerton Hotel Sydney, Roy Morgan’s Head of Travel and Tourism, Adele Labine-Romain, said that while Australia’s international arrivals are up, markets are changing.
“Current travel trends show while the domestic market has softened, international recovery continues to strengthen,” Labine- Romain told
“Over the past three months, international arrivals have reached 95% of pre-pandemic levels, helping to offset slower local demand.
“Meanwhile, intrastate visitors remain a key driver for Sydney, accounting for more than half of all visitor nights and 44% of total visitor spend.
“Among international travellers, holidays now lead as the main purpose of travel (44%), surpassing visiting friends and relatives (34%), business (9%), and education (6%).”
Labine-Romain pointed to strong growth from South Korea, a “stabilising trend” from India, and ongoing gaps in the traditional markets of China and New Zealand.
The outlook follows a successful August for Sydney hotels, with the Sydney Marathon providing the ultimate boost in bookings.
“It’s pretty clear August was one of the strongest performing months of the year and we have high hopes for summer,” said AA NSW General Manager, Stacey McBride.
“The city really has a positive vibe after events like the Lions Tour and the marathon – and with events ahead like the busy Christmas/ New Year period and then Mardi Gras hopes are high.”
During the marathon period alone, hotels had one of Sydney’s strongest trading results on record with ADR up more than 50% and occupancy nearly 46% higher YOY, according to STR Account Manager, Joanne Cohen.
“It’s an encouraging outlook for Sydney’s accommodation market, noting continued rises in occupancy and room rates, though at a steadier pace than earlier in the pandemic recovery,” Cohen told those gathered.
“Occupancy patterns have normalised in Sydney, with five of seven days averaging above 80%. Weekends are strong and midweek corporate and group travel has rebounded, helping hotels lift average daily rates (ADR).”