Tourism Investment Pipeline Reaches $59.8 Billion
27 July 2016
Strong growth in aviation projects, particularly new aircraft orders, has helped Australia’s tourism investment pipeline rocket to $59.8 billion (up $6.5 billion) for the year ending 2015.
According to The Tourism Investment Monitor 2016 released this week by Tourism Research Australia (TRA), continued investor appetite for Australian tourism infrastructure investment projects is supporting the current strength of the pipeline. Demand for tourism services is also going from strength to strength, further increasing the importance of the industry to Australia’s economy.
The pipeline incorporated 173 projects, up by a net six projects, worth an extra $6.5 billion, compared to 2014.
Accommodation projects were valued at $7.6 billion potentially providing 15,900 new rooms to accommodation supply.
In addition to the $59.8 billion pipeline, the continuing shift towards mixed-use developments contributed $35.1 billion in investment and will potentially create a further 24,000 new rooms, suggesting the Tourism 2020 accommodation targets are likely to be achieved.
Significantly, increased investment activity continues across regional areas, with 32 projects valued at $2.8 billion occurring outside capital cities or the Gold Coast. These projects include regional airport developments that will help improve access to regional areas, and disperse visitors beyond the major gateways.
Recent investments such as Fullshare Group’s acquisition and upgrade of Sheraton Mirage Port Douglas and Mirage Whitsundays in Queensland, as well as Red Hill Estate, Mornington Peninsula in Victoria, reflect positive changes in some of the challenges that regional areas have traditionally faced in attracting investment.
The increase in investor appetite supports Tourism Australia and Austrade’s focus on attracting tourism investment into regional Australia.
Recently Tourism Australia hosted Chinese investor and media familiarisations across key tourism destinations in Queensland. The famil was a whole-of-government initiative, supported by Austrade and the Queensland Government that showcased iconic regional tourism areas with the intention of testing investor appetite for opportunities outside of Australia’s capital cities.