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Australia Tourism Report Q2 2016

Australia Tourism Report Q2 2016

BMI View: Tourism, while already well-established in Australia, continues to grow, supported by extensiveglobal marketing campaigns, public investment in supporting infrastructure and the country's broad rangeof attractions. Arrivals are expected to increase throughout the forecast period, with particularly stronggrowth in travel from major markets within the Asia Pacific region. The hotel market is already well-placedto support increased demand, though Australia's attractive investment environment along with growingvisitor numbers mean we continue to see new hotel projects added to the development pipeline. While manyof these are in up-and-coming tourism destinations away from the major cities, we are also seeing majorinvestment into city centre and luxury hotels, particularly in Sydney and Melbourne, reflecting theconfidence held by investors in Australia's tourism growth potential.

Key Updates and Forecasts

Australia continues to improve air travel connectivity - vital as a far flung holiday destination for manysource markets. The new terminal 4 at Melbourne Airport was officially opened in December 2015 and iscapable of handling 10mn passengers annually. The airport plans to spend up to AUD10bn (USD7.17bn)on upgrade over the next 20 years. The government has also recently approved plans for expansion worksat Gold Coast Airport.

The hotel sector continues to attract investment. As well as new openings by major hotel groups such asStarwood and domestic group Mantra, 2016 will also see expansion by smaller hotel groups. QT Hotelsand Resorts is opening a new hotel in Melbourne in mid-2016, the group's seventh hotel in Australia.

Overall, we are forecasting healthy annual growth in terms of international arrivals throughout theforecast period, with total arrivals expected to grow from 7.8mn in 2016 to 10.8mn in 2020. China willremain one of the most important growth markets, with spending by Chinese tourists reportedly up 32%in 2015, according to Tourism Research Australia.

BMI Industry View
Table: Key Forecasts (Australia 2013-2020)
Industry Forecast
Table: Inbound Tourism (Australia 2013-2020)
Table: Tourism Receipts (Australia 2013-2020)
Table: Hotel Accommodation (Australia 2013-2020)
Table: Tourist Departures and Consumption (Australia 2013-2020)
Industry Risk/Reward Index
Tourism Risk/Reward Index
Table: Asia Tourism Risk/Reward Index
Market Overview
Competitive Landscape
Domestic Hotel Groups
Table: Domestic Hotel Groups
International Hotel Groups
Table: International Hotel Group
Industry Forecast Methodology
Risk/Reward Index Methodology
Table: Weighting Of Indicators

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