- Thursday, 03 May 2012 08:40
Article Read: 599
Economic modelling by the Tourism Association of Australia found that Sydney will require up to 500 new hotel rooms every year until 2020 to meet the demands of booming tourism.
TAA commissioned AEC Group to produce the first extensive economic modelling of the Sydney accommodation market incorporating price and return on investment.
But the Sydney Hotel Industry Report also warned the government had to be wary of over stimulating the market to avoid the massive boom and bust cycles in the past that saw the over supply of hotels forcing their conversion into residential apartments and interest dry up.
Visitors to Sydney are forecast to grow by 1.8% year to 2020 creating a need for between 150-600 new rooms a year. Discouraging hotel investment could see Sydney miss out on $189 million per year or $1.7 billion in investments by 2020.