Insights - 19 January 2024
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SYDNEY HOTEL ROOM RATES HIT RECORD HIGH
Sydney’s hotel industry recorded its highest monthly average daily room rate on record in December according to preliminary data from CoStar.
The daily data shows Sydney hotels achieved their highest occupancy level on New Year’s Eve (94 per cent), followed by 2 December (93.8 per cent). The market’s daily occupancy levels remained above the 60 per cent mark throughout the month except for two days.
Overall occupancy in December was 77.1 per cent (up 9.9 per cent on December 2022), while the average daily rate was $313.27 and the revenue per available room was $241.66. On New Year's Eve the daily rate rose to $776.69.
JLL Hotels managing director Peter Harper said: “Driving the high average daily rates has been the reset we have seen post-COVID-19, with a number of new hotels driving a higher rate ceiling such as Crown, the Capella and most recently the W.
“It wasn’t that long ago there was only one hotel, Sydney’s Park Hyatt, that could command rates above $1000 a night, now we have several."
NYE FOOTFALL SURGE FOR SYDNEY WATERFRONT
New Sydney Waterfront Company data shows total precinct footfall was up 22 per cent in the Sydney Western Harbour precinct in December compared with the previous month, with New Year's Eve being the strongest performing day across the month (37 per cent ahead of the average for other Sundays in December)
Visitation across the month was up 27 per cent year-on-year and up eight per cent versus December 2019. Year-to-date total visitation was 3.8 per cent ahead of the same time period in 2019.
NSW GOVERNMENT LIFTS CONCERT CAP AT SCG PRECINCT
Visitor economy stakeholders have welcomed the SCG precinct concert cap being lifted from an average of four events a year to 20 events a year.
It is estimated the additional 16 concerts will inject up to $120 million a year into the NSW visitor economy, securing billions of dollars for the state over the lifetime of Allianz Stadium.
Since opening in 2022, Allianz Stadium has hosted Bruno Mars, Sir Elton John, Sir Paul McCartney and Robbie Williams concerts.
NSW Premier Chris Minns said: “NSW is well and truly open for business. This is a huge win for the NSW economy, and it’s great for live music. For too long NSW has missed out on world class acts because of an archaic restriction that killed fun in our city and hurt the economy.
“Sydney is Australia’s only global city and now it will finally be able to host more global acts on the world stage.”
Accommodation Australia NSW Manager Stacey McBride said: “Lifting the cap from four concerts per year to 20 just makes good sense.
“It will bring in more international artists who, in turn, attract visitors from interstate, overseas and other parts of NSW into the CBD.
“Events consistently increase occupancy rates at hotels, we saw it with Ed Sheeran, Elton John and Harry Styles and we are seeing it again in a big way ahead of Taylor Swift. Early statistics for the Swift concerts in February show, on average, a 36 per cent increase on bookings compared to this time last year. These extra concerts will bring in $120 million dollars a year into the NSW visitor economy and accommodation hotels will be some of the main beneficiaries.”
Contemporary music also generated more than $217 million in revenue in NSW in 2022 with ticketed attendance of 2.75 million according to data collected for the Live Performance Australia 2022 Ticket Attendance and Revenue Report.
Live Performance Australia Chief Executive Evelyn Richardson said: ‘Stadium tours have been a big driver of the return of live music post-pandemic, with more to come throughout 2024.
"More stadium capacity means even more opportunities for our promoters to bring Australian audiences the performers they love. It also generates more job opportunities for those who bring the shows to life, including production and technical crews and venue staff, and people working in hospitality and tourism."
MILLENNIALS AND GEN Z DRIVE AUSSIE CRUISE BOOM
New research from the Tourism & Transport Forum (TTF) Australia shows Millennials and Gen Z passengers are driving increased demand for cruise holidays, with 35 per cent of Australians under 35 planning to cruise this year, versus 18 per cent of over 65s.
The national survey also revealed the percentage of Australians surveyed who plan to cruise in 2024 has risen from seven per cent to 26 per cent in the past 12 months, despite cost-of-living pressures.
More than a quarter of Australians are also ‘cruise curious’, meaning they have never been on a cruise before but are now considering it. The most ‘cruise curious’ Australians are those under age 35, with residents in the Northern Territory leading the tally, followed by NSW.
TTF CEO Margy Osmond said: “Cruises offer great value for money, which Australians care about now more than ever. Combined with all the exciting new experiences available in Australia’s cruise sector, that’s why we’re seeing cruising take off.
“Any misconception cruises are only for retirees and families is outdated. This year, more young Australians will enjoy a cruise catered to their preferences. From Michelin-star restaurants and yoga, to tattoo parlours, free wi-fi and other services for remote workers, there’s something for everyone."
Learn more here.
CRUISE LINES BOOST AUSTRALIAN PRESENCE
Australia is heading into a bumper year of cruising in 2024, as cruise lines offer more local ships, sailings and cabins.
Cruise Lines International Association (CLIA) Managing Director in Australasia Joel Katz said: “We will see 81 cruise ships operating in Australian waters over the course of 2024, which is 14 per cent more than last year.
“Many of these ships will be staying longer and offering more local sailings, which means Australia will welcome more than 3700 port calls around the country – an 18 per cent increase over last year.
“The total cruise passenger capacity in Australia this year will be up by 42 per cent over 2023, which reflects the huge passion Australians have for cruising and the strong overseas interest in sailing down under.
“Cruising delivered a record economic impact worth $5.6 billion to the national economy last financial year, and all signs suggest cruise tourism will continue to be enormously valuable to Australia throughout 2024 and well beyond.”
FINALISTS ANNOUNCED FOR CLIA AWARDS
Cruise Lines International Association (CLIA) Australasia has announced the finalists for its 21st Cruise Industry Awards ahead of a sold-out celebration in March.
CLIA Managing Director in Australasia Joel Katz said: “All these travel agents have been a big part of the spectacular comeback cruising has achieved in Australia and New Zealand, so our 21st Cruise Industry Awards will recognise their enormous contribution to our industry’s success.”
Hosted by entertainer Tim Campbell, CLIA’s 21st Cruise Industry Awards will be held at The Star Event Centre in Sydney on 9 March 2024.
DESTINATION NETWORKS SEEK DIRECTORS
Destination NSW, on behalf of the Destination Networks, is inviting applications for four Director roles, two for Destination Country and Outback and two for Destination Central West. Destination Networks are the champions of the visitor economy in regional NSW, engaging with stakeholders to identify, prioritise and facilitate opportunities to grow their visitor economies. A Board Director Recruitment Pack is available that includes the role description, how to apply and the requirements for the positions. Applications close 2 February 2024.
FOCUS ON INDIA SHOWCASE RETURNS
Destination NSW will host its second annual Focus On India 2024 event in Sydney on 20 March 2024. Focus On India will showcase NSW products and destinations to key India-based travel buyers and will include an appointment-based workshop for export ready NSW visitor economy businesses. View the prospectus link below for more information and the selection criteria, plus a link to the online application form. Registrations close on 24 January 2024. View a highlights video from Focus On India 2023 here.
WOLLONGONG TO HOST WORLD TRIATHLON TITLES
Destination NSW has joined forces with AusTriathlon and Wollongong City Council to secure a three-year partnership to bring World Triathlon racing to Australia. The 2024 World Triathlon Cup will be held in Wollongong from 20-21 April 2024, followed by the 2025 World Triathlon Championship Finals. More than 4000 athletes and families are expected to travel to Wollongong for the 2025 Finals. NSW Minister for Jobs and Tourism John Graham said: “Events like the triathlon are a great way to showcase the unique surrounds of the region. NSW has an outstanding track record for hosting major international sporting events and World Triathlon competitors, officials and supporters will benefit from those credentials when they travel to Wollongong over the next three years."
VIVID SYDNEY LOCAL BUSINESS WEBINAR
Destination NSW will host a Vivid Sydney Local Business Opportunities webinar on
7 February 2024. Vivid Sydney will transform the city from 24 May to 15 June and the webinar will be an opportunity to learn more about joining the Vivid Sydney Local Business Program. It will cover inclusions and advantages for participating businesses, information on the various tiers of involvement available, how and when to apply and tips for effectively promoting and selling your experiences leading up to the festival. Becoming part of the Vivid Sydney Local Business Program is an opportunity to become a member of the Vivid Sydney community and provide an offer or a memorable experience during the festival or allow Destination NSW to enhance your storefront window with Vivid Sydney assets.
BUSIEST DAY FOR FLIGHTS IN FOUR YEARS
This December holiday period recorded the strongest growth in international travel in Australia in the last four years, driven by popular markets and China’s recovery. At Sydney Airport, international demand surpassed pre-pandemic levels. The Airservices Australia Network Overview report for December shows there were 2645 regular passenger transport flights on 22 December 2023 in Australia, with 1959 domestic and 686 international flights, the highest daily figure since 26 September 2019. On average, December 2023 saw 3546 passenger flights per day, 97 per cent of 2019 levels. There were 89,929 domestic and 19,988 international flights, translating to 98 per cent and 94 per cent of December 2019 levels respectively.
NSW VISITOR ARRIVALS: NOVEMBER 2023
Australian Bureau of Statistics data shows there were 255,670 short-term visitor arrivals to NSW in November 2023, an increase of 74,630 compared with November 2022. The number of trips for November 2023 was 14.2 per cent lower than November 2019. The three leading source countries for NSW were New Zealand (34,690 trips), United States (33,810) and South Korea (23,430). Total arrivals to Australia in November 2023 were 1,562,520, an annual increase of 372,600. New Zealand was the largest source country, accounting for 18 per cent (116,350 trips) of visitor arrivals, followed by United States (61,660) and United Kingdom (57,860). There were 34,550 international student arrivals to Australia, up 1480 from November 2022.
NATIONAL VISITOR SURVEY: OCTOBER 2023
Tourism Research Australia (TRA) has released its monthly snapshot for October 2023, which shows domestic visitor expenditure was $9.9 billion, down 11 per cent on October 2022. There were 10 million overnight trips, down two per cent on October 2022. Visitors spent 34.4 million nights away, down seven per cent on October 2022. Early data shows domestic overnight trip rates for November 2023 were weaker compared to November 2019 and 2022. Data for the first two weeks of December 2023 shows stronger results when compared to December 2022 and on par with 2019.
INTERNATIONAL VISITOR SURVEY: OCTOBER 2023
Tourism Research Australia (TRA) has released data for October 2023, which shows international visitor expenditure in Australia was 89 per cent of pre-COVID-19 levels. Trips and nights to Australia were 79 per cent and 89 per cent of pre-COVID-19 levels respectively. International visitors took 572,000 trips to Australia, had 18.4 million nights away and spent $2.1 billion. There were 42,000 trips from China, 42 per cent of pre-COVID-19 levels. Business trips reached 75 per cent of pre-COVID-19 levels (77,000). Spend was $252 million, 130 per cent of pre-COVID-19 levels.
VISITOR ARRIVALS: 2022-23 FINANCIAL YEAR
Australian Bureau of Statistics data for the 2022-23 financial year shows there were 5,856,440 visitor arrivals to Australia, nearly five times higher than the previous year. New Zealand was the largest source country, accounting for 18 per cent of visitors, an increase of nearly 4.7 million on the previous year. The top five source countries for 2022-23 were New Zealand, United Kingdom, United States, India and Singapore. India was the only one of the top 10 source countries in 2022-23 to exceed pre-COVID-19 levels, reaching 103 per cent of 2018-19 arrivals. There were more visits to Australia by females than males in 2022-23 (2,851,540 males compared with 3,004,900 females). The median age for both male and female visitors was 42 years. The largest group of visitor arrivals was 25–29-year-olds.
FREE AUSTRALIA DAY PROGRAM FOR NSW
Communities across NSW are encouraged to come together on Australia Day 2024 at free events across the state. Sydney’s January 26 program is presented by the NSW Government and the Australia Day Council of NSW and will kickstart a long weekend. The day will begin at dawn with the sails of the Sydney Opera House featuring a piece of Aboriginal art, followed by a smoking ceremony at Barangaroo Reserve. As the day warms up Harbourfest will swing into action with activities on sea, sky and shore. The grand finale will be the Australia Day Live concert on the Forecourt of the Sydney Opera House where Australian stars will entertain the nation, alongside fireworks and a maritime show on Sydney Harbour. Click the link below for the full list of events in NSW.
WESTERN SYDNEY AIRPORT STUDENT PROGRAM
Undergraduate students at Western Sydney University are being given opportunities to work directly with lead designers, technologists and business stakeholders at Western Sydney International Airport (WSI) and technology services company DXC Technology on real-world research and design projects. Students will gain industry experience while they complete their final year capstone project and earn credits towards completing their studies.
NEWCASTLE AIRPORT UPGRADE DELAYED
Supply chain issues have delayed construction of the new terminal at Newcastle Airport. It is anticipated the terminal will be complete by early 2025, a few months later than originally planned. An approximately $250 million program of works is currently taking place across the entire Newcastle Airport site. The demolition of the old terminal building is complete, while work on lift pits and underground baggage handling tunnels is underway.
CONFERENCE WIN FOR HUNTER VALLEY
Destination NSW is proud to support the Meetings & Events Australia (MEA) Evolve Conference which has been confirmed for the Hunter Valley in June 2024. Destination NSW has worked closely with MEA to secure the event for regional NSW, the first time it has been held in the state since 2017. The conference will welcome more than 200 events industry delegates to the region, delivering significant economic and industry benefits to the Hunter's visitor economy. Events are a vital part of achieving the $25 billion regional NSW visitor economy target for 2030, and Destination NSW is excited to be a strategic partner for the delivery of the conference. Evolve 2024 and the 2023 MEA National Awards Dinner will be held from 12-13 June 2024 at Rydges Resort Hunter Valley.
AUSTRALIAN REGIONAL TOURISM CONVENTION
Australian Regional Tourism will host the 2024 Australian Regional Tourism Convention from 9–11 October 2024 in Mackay, Queensland. Attendees will include local councils, regional tourism organisations, visitor economy professionals and government personnel wanting to contribute to the future of regional tourism in Australia. Australian Regional Tourism Chair Joel Chadwick said: "The convention is renowned as the preeminent event for industry stakeholders to share insights, network, and collaborate. With the recent surge in attendance, attracting over 200 delegates in recent years, it is evident that the interest in growing Australia's regional tourism sector is on the rise." The 2023 convention was held in Newcastle and supported proudly by Destination NSW.
ALL ABOARD THE PARKES ELVIS FESTIVAL EXPRESS
The 2024 Parkes Elvis Festival was attended by 25,000 people in the state’s central west from 11-15 January. Supported proudly by Destination NSW, it is estimated the multi-award-winning event brings around $11 million to the region each year, with all accommodation fully booked in Parkes and flow-on bookings in surrounding towns. Around 250 Elvis Presley impersonators and fans kicked off this year's pilgrimage to one of the world's biggest Elvis festivals aboard the NSW TrainLink Elvis Express for the seven-hour journey to Parkes. This year’s theme for the festival was ‘Jailhouse Rock’.
TAMWORTH COUNTRY MUSIC FESTIVAL BEGINS
Country music fans will have the opportunity to experience 10 days of free entertainment at the 2024 Toyota Country Music Festival, Tamworth. The 2024 festival officially kicks off today with an Opening Concert and more than 100 artists will take to the stage during the festival including Golden Guitar nominee for 2024 Travis Collins, two-time Golden Guitar winner Aleyce Simmonds, rock legend Andrew Farriss, five-time Golden Guitar nominee Jayne Denham, multi-Golden Guitar winner Kristy Cox and many more. Tamworth Country Music Festival is supported proudly by Destination NSW.
INDOOR SKI RESORT PLANS FOR PENRITH
Australia’s first indoor snow resort in Penrith is one step closer after being granted State Significant Development Application (SSDA) approval by the NSW Department of Planning and Environment. Winter Sports World is planning to include an advanced open run for experienced skiers and snow boarders, learn-to-ski runs and a snow play area; a competition venue for snow sports such as alpine skiing, ice climbing and crevasse outdoor rock climbing; a 4.5-star 170-room hotel, conference and function rooms; plus a restaurant and cafes with snow views. Developer Peter Magnisalis said the resort would generate more than 1350 new ongoing visitor economy jobs once open and inject more than $220 million a year into the local economy with around one million visitors annually.
GREAT SOUTHERN NIGHTS ADDS MORE STAR POWER
Great Southern Nights has added even more artists to its huge line up for the 2024 series, which will take place over 17 nights across seven key entertainment precincts in NSW. It aims to reignite the state’s live music scene with more than 300 live gigs across Sydney’s inner city, Western Sydney, Wollongong, Newcastle, Wagga Wagga, Tamworth and the Northern Rivers. The 11 additional artists joining the line-up are G Flip, Kita Alexander, Methyl Ethel, Mia Wray, Montaigne, Ninajirachi, Pete Murray, Richard Clapton, The Black Sorrows, The Jungle Giants and The Teskey Brothers. Great Southern Nights is a Destination NSW initiative delivered in partnership with the Australian Recording Industry Association (ARIA). It will take place across NSW from 8-24 March 2024.
VISITOR ECONOMY WEEKLY HIGHLIGHTS
NEW NSW CROSS-BORDER COMMISSIONER ANNOUNCED: The Department of Regional NSW has appointed Kalina Koloff as NSW Cross-Border Commissioner. Learn more
TIME TO TAKE ACTION ON WOMEN IN BUSINESS EVENTS LEADERSHIP: Business Events Sydney (BESydney) and the world’s largest association for business events strategists, PCMA, have released the findings of a new global study into Advancing Women in Business Events. Learn more
BOAT RESCUES UP 18 PER CENT AS MORE PEOPLE FLOCK TO WATERWAYS: Marine Rescue NSW has completed its busiest year on record with 4786 search and rescue missions across the state in 2023. Learn more
OUTDOORS NSW & ACT LAUNCHES 2024 OUTDOOR CENSUS: Conducted annually, the census aims to track industry changes, identify trends and gather crucial data. Learn more
SLASHING COSTS ON NSW ROAD TRIPS: New analysis from the Climate Council shows driving a lower or zero emissions vehicle could reduce petrol bills to a quarter of what Sydney drivers would otherwise pay. Learn more
FOLLOW DESTINATION NSW ON LINKEDIN: Stay up to date with all the latest Destination NSW initiatives by following us on LinkedIn. Click here
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