Home' Hotel Management : HM JUNE 2016 Contents Tourism Australia
Why is Tourism Australia looking to attract investment into the sector?
Nominated as a national investment priority of the Government, Tourism
is one of Australia's largest and most dynamic industries. We are working
hard -- and on course -- to grow the sector to more than AUD$115 billion
annually by the end of the decade, and if we are to achieve this ambitious
target we will need investment to increase the supply and improve the
quality of Australia's tourism product offering, ensuring that Australia
remains a 'must see' destination.
Where are we seeing most of the offshore investment interest?
We continue to see capital out of South East Asia, particularly Singapore
and Malaysia, but are now starting to see increasing interest out of North
Asia, particularly China and Hong Kong. No surprise really, given the
strength of the China inbound market for Australian tourism, with
Chinese visitor expenditure growing by 44% last year and projected to
reach more than AUD$13 billion annually by 2020.
Why are they interested in investing in our tourism industry,
what makes Australia so attractive to foreign investors?
Australia has strong fundamentals in place for attracting investment
including a quarter of a century of uninterrupted economic growth, a
stable government, and a highly liquid and transparent investment market.
Australia too has the combined advantage of a growing, high-yielding
tourism market and being a major destination for business investment.
Located in the world's strongest growing tourism region and largest
aviation market, it's no surprise that foreign investors are attracted to the
opportunities on offer in Australia.
What are some of the trends you are seeing in terms of tourism
It's great to see government-led initiatives making good progress such
as the International Convention Centre and the Sandstone Precinct in
Sydney, Queens Wharf in Brisbane, and FESA House and Elizabeth
Quay in Perth. It's not just capital cities though that are generating
interest. As we heard at AHICE recently, investors are increasingly
looking at regional opportunities for leisure assets such as Daydream
Island's acquisition by China Capital Investment Group, Mulpha's
redevelopment of Hayman Island, and the purchase of Lindeman
Island by Whitehorse Group with plans for a AUD$200 million luxury
resort development. n
With Australia welcoming record inbound arrivals, HM spoke to Tourism Australia's
Managing Director JOHN O'SULLIVAN to get his perspective on how the Australian
tourism industry is placed to attract the investment required to drive its continued growth.
Investing in Australia
as consumers are looking for more experiential products that leads to
'bragging' rights amongst peers.
"SilverNeedle aims to bring our luxury SilverNeedle Collection Brand
to Australia, following successes in South East Asia for offering one of a
kind, localised experiences.
"We are also in the midst of designing a brand (upper-midscale)
product introduced very soon to Australia."
"In markets where residential and commercial
investment has flattened out, such as Darwin, Perth
and Brisbane, developers are increasingly turning their
attention to hotels. They are looking at hotels as one of
the few viable alternate options in those areas. In some
cases they are looking at changing what was intended to be a residential
project into a hotel project because of the expected returns. Developers
are [also] now looking for a level of underwrite from us as hotel
operators, as required by their banks for financing purposes. They want us
to provide a guaranteed component for a certain period of time.
"We have some beautiful hotels in our pipeline at present. These include
a great new Adina Apartment Hotel in Fremantle, which we call the
foodie heartland of Western Australia, and two incredible new 'luxe' Adina
Apartment Hotels -- one next to Australia Square in Sydney CBD and one
in Brisbane at the new Queen Street Wharf. Both of these hotels will feature
high end specifications and will be finished in 2018 and 2017.
"On the Vibe Hotel front we have a next generation Vibe Hotel
coming up in Hobart in Argyle Street, and another building at
Northpoint in North Sydney. We are also undertaking two major
refurbishments at Vibe Rushcutters Bay and at Vibe Hotel Sydney.
"We have a new Travelodge Hotel being built near the airport in
Mascot, which will feature 209 rooms and a great restaurant and bar.
"In Europe we are due to open two new Adina Apartment Hotels in
Nuremburg and Frankfurt, Germany, towards the end of the year. We
have also signed operating agreements with developers for new Adina
Apartment Hotels in Hamburg, Leipzig and Munich.
"Our ambitions are to secure at least another six operating agreements
in Australia and New Zealand in the next financial year. As the only truly
integrated hotel management company in Australia, with end to end
development, construction and operating capability in-house, we are in a
unique position to advise developers and their consultants to achieve
maximum returns on their investments through value engineering
efficient design and optimising operational results."
President and Managing Director of Wyndham
Vacation Resorts Asia Pacific and Wyndham Hotel
Group South East Asia and Pacific Rim
"With 16 brands in our portfolio, Wyndham Hotel
Group is well equipped to cater to a range of hotel
owners from our economy Days Inn brand, to the
mid-scale Ramada and Wyndham Hotels and Resorts brands, as well as
A TOURISM AUSTRALIA PROMOTION
Links Archive HM APL 2016 HM AUGUST 2016 Navigation Previous Page Next Page