At present, the tourism industry has outperformed the coal industry in Australia, being the country’s second-largest sector to grow 11.5% year-on-year to AU$53 billion in 2016.
This is due to the high tourism spending and visitation of the Chinese tourists in Australia, drastically propelling upwards both hotel rates and occupancy levels.
Marketwide occupancy has reached a record high of 67% while popular destinations such as Sydney and Melbourne enjoy occupancy rates as high as 90 percent.
According to Deloitte Access Economics, the pipeline of tourism-related projects are worth nearly AU$20 billion.
Australia expects approximately 120 new hotels in the pipeline till 2021, which will contribute around an additional 30% of total hotel room supply.