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Tourism industry suffers as economy slides

The hotel and tourism sectors have been hit hard by a weakening economy, as demand for beds falls.

Consumers are choosing instead to save their money and stay home, with the latest Tourism & Transport Forum’s Capital City Accommodation Index revealing that hotel occupancy levels in all capital cities are down.

Ross Beardsell, the senior vice-president of Jones Lang LaSalle Hotels, said the sector was in for a tough ride.

“During the December quarter Sydney’s accommodation establishments experienced a softening in demand (minus 3.2 percent) as Australia caught the world’s recessionary chill, causing occupancy levels to slip 4.3 percent, to 80.8 percent.

“Despite this, hoteliers were able to hold rates, which meant RevPAR fell only slightly, to $151.28.”

While the RevPAR (revenue per available room) grew slightly in December 2008, this was driven by a rise in average room rates across all capital cities, despite occupancy levels dropping.

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Jessica Stanic

Jessica Stanic

Jessica has a background in both marketing and journalism and is dedicated to making the website the leading online resource for small to medium businesses with ambitions to grow.

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