Red tape identified as major inhibitor of hotel development

November 24, 2015

Austrade has released a report examining the costs and time involved in developing hotels in Australia. The Hotel Development Regulations in Australia Report examines the complex planning and regulatory processes that apply to hotels across the three tiers of government.

Significantly, the Report found that the hotel sector is presently hindered by overly complex, expensive ‘red tape’.

Key recommendations for reform include:

  • placing a greater emphasis on pre-approval engagement to reduce timeframes and costs;
  • streaming liquor licensing approvals and adopting a more flexible approach to design requirements;
  • setting up a one-stop shop to facilitate environmental approval processes;
  • potentially using floor space ratio bonuses to incentivise hotel developments;
  • establishing expedited approval processes for ‘low-risk’ projects; and
  • providing international investors with better guidance and information
  • streamlining approval processes for developments in national parks
  • core tourism industry priority of developing higher-end accommodation products in regional areas of natural attraction.

TAA has been heavily involved in the ‘Supply in Sydney’ work undertaken in the City of Sydney and the resulting Visitor Accommodation Supply Plan which is referenced in this document.   We strongly advocated against incentives for hotel development and for any supply to be demand driven.