Regional accommodation continues to lag in performance

November 24, 2015

Tourism Research Australia’s State of the Industry 2015 showed a growing disparity between the performance of city accommodation and regional/remote accommodation. According to the research, regional occupancies have fallen 2.2 percentage points to 53.8 percent and total takings from accommodation regionally declined by 2.7 percent.

TAA completed a major research project on the poor performance of the accommodation sector in regional NSW and presented to the Destination NSW Board on the barriers to investment in regional NSW.   One of the recommendations of the report is that the development of high-end accommodation product needs to be a core tourism industry priority in regional areas.  Planning barriers and poor co-ordination between government agencies and local government authorities need to be addressed.

Importantly, any new supply needs to be demand driven. This will require additional resources in tourism promotion and events, and investment in infrastructure and jobs in regional areas.

Regional operators also require greater protection from unregulated accommodation providers, who contribute little to tourism promotion of the destination and even less to jobs creation.