Growth in the number of accommodation rooms in Australia is necessary and should be economically sustainable, according to the Accommodation Association of Australia.

Speaking following today's launch of the Australian Tourism Investment Guide, the Association's Chief Executive Officer, Richard Munro, said the aim of the Federal Government to grow tourism spending through greater investment is a sound one.

"It is important that Australia continues to plan for increased demand for accommodation from domestic and international visitors, particularly the emerging markets of China and India," Mr Munro said.

"For operators of existing accommodation businesses, it is crucial that growth in room inventory is economically sustainable and does not compromise returns.

"The industry acknowledges that there are some parts of Australia which are in need of new hotels – notably the Perth CBD – however the Australian market is a patchwork quilt of accommodation performance.

"For example, some operators in Tasmania are currently forecasting a further decline on last year's winter of only 47% average occupancy, while the Cairns, Sunshine Coast and Gold Coast markets are intermittent."

Mr Munro said other measures may be required to encourage greater levels of investment in tourism accommodation infrastructure in Australia.

"As the number of rooms increase, there should be a suite of measures to maximise the chances of these rooms being occupied, such as greater funding for marketing, better aviation access, a stronger commitment to major events and resources to attract more business events," Mr Munro said.

"Strong consideration should also be given to introducing measures similar to those in WA and NSW where concerted attempts are being made to boost accommodation rooms by making available government land and buildings respectively."

www.aaoa.com.au