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As chair of Accommodation Australia, I hope the festive season provided an opportunity for rest and reflection as we embark on another exciting year. For those who were able to take a well–earned break, I trust it was refreshing, and for those who continued working through the holidays, thank you for your dedication to supporting our guests and upholding the strength of Australia’s tourism industry. Your efforts, whether during the holidays or throughout the year, are greatly appreciated and contribute immensely to the success of our sector.
The accommodation sector ended 2024 on a positive note, with December occupancy figures increasing by 1.8 percentage points compared to the previous year. This is a strong and commendable result, particularly given the ongoing challenges of lower international visitor numbers and the continued pressures of the cost of living on individuals, families and businesses. Our sector’s resilience and adaptability have once again been evident, and we should take great pride in our ability to navigate these challenges while continuing to deliver strong performance and exceptional guest experiences.
There were standout performance results for Western Australia and during Sydney’s New Year’s Eve Celebrations – well done to all involved.
As we step into 2025, we do so with cautious optimism. Last year, major sporting events and concerts played a crucial role in driving tourism, delivering strong benefits across the industry. The Australian Open once again provided a much-needed boost—not only to Melbourne’s hospitality and tourism sector but also across the eastern seaboard, as travellers used the event as a gateway to explore other parts of the country. However, with fewer large-scale events scheduled this year, our focus must shift toward building long-term, stable, and sustainable growth across the leisure, business, and MICE sectors. We can create a more resilient and balanced tourism landscape by smoothing out the peaks and troughs experienced in 2024. This is what true recovery looks like—ensuring enduring success for businesses of all sizes, from metropolitan hubs to regional destinations.
To support this goal, we have developed a comprehensive policy framework that reinforces our role as a strong and influential advocate for a sustainable and prosperous future. Our commitment extends beyond directly supporting our members; we recognize that a thriving Australian economy is fundamental to the success of the travel and tourism sector. By championing policies that drive economic stability, business confidence, and industry growth, we can create an environment where opportunities flow across the accommodation, hospitality, and tourism industries, benefiting operators at every level.
As we navigate the year ahead, collaboration and resilience will be essential in shaping a strong and sustainable future for our industry. We look forward to working alongside our members, industry partners, and policymakers to drive growth, innovation, and long-term success for Australia’s accommodation and tourism sector.
This year marks a federal election, and Accommodation Australia has developed a comprehensive policy document outlining our priorities, concerns, and key asks of the next government—whether it be a Liberal-National Coalition or Labor-led administration. I am pleased to see that this platform not only addresses critical issues such as workforce shortages, migration, and skills development but also includes tourism and aviation policies. Notably, for the first time, we are advocating for a balanced and pragmatic energy policy—one that reduces emissions while ensuring cost affordability for businesses.
It will also be a significant election year for Accommodation Australia itself. As we complete the final stage of our amalgamation, the interim Board of Directors will transition into a permanent structure, with representatives elected to reflect the interests of their respective states and territories. The new board will consist of two directors each for New South Wales, Victoria, and Queensland, with one director representing each of the remaining states and territories. This ballot will be conducted independently by the Electoral Commission, ensuring a fair and transparent process. I encourage all members to ensure their membership is current so they can participate in this important milestone for our industry.
Thank you, and I look forward to a year of continued success and progress for Accommodation Australia and the broader industry.
Regards,
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Message from the CEO's Desk | |
Welcome to a new year and thank you to everyone who worked through the holiday season.
As 2024 rapidly fades into the past it’s important to reflect on a year of success and recovery for the accommodation sector. For me, personally, it was a year of highlights including taking on the role as CEO of Accommodation Australia and meeting many of the passionate people who work in our industry.
At the end of 2024 I launched with the Federal Minister for Tourism and Trade, Hon. Don Farrell, the new jobs and skills platform – eeger. This is specifically designed for the hospitality, travel and tourism industries and will better connect employees and employers. I urge all industry partners to help promote eeger as we prepare for the public launch in early 2025.
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When it comes to the performance of the accommodation sector in 2024, the hotel occupancy rate was 71.3% compared with 69.5% in 2023 – an overall increase of just 1.8 percentage points.
If it wasn’t for some welcome ‘sugar hits’ it might have been lower. Indeed, it was the year that brought us a new term – the “Taylor Swift effect”. These big concerts provided a huge boost early on but, as we all know, we can’t rely on regular visits by international superstars to keep our hotels and motels full, visitors happy and staff employed on a regular basis.
That's why 2025 will be all about consolidation for our sector. Building on what we have achieved in the past few years since the pandemic and lessening our dependence on those 'sugar hits' to keep our heads above water.
2025 has got off to a solid start in terms of occupancy with some great feedback from the cricket, Australian Open tennis, and Lunar New Year celebrations.
So, we do have a solid base from which to consolidate but let’s hope for stronger growth in international tourists and that people still prioritise domestic holidays during this period of cost-of-living pressures.
It's a Federal Election year and there is no better time to make sure your issues are kept in the forefront of political minds. Of course, this is something AA does all the time but in an election year we really go into overdrive.
At the time of writing there is still a Federal Budget due to be handed down in Canberra on 25 March 2025 however, there is a strong possibility an election could be called ahead of this date - meaning any Budget would be delayed until after that election.
Regardless, our broad policy objectives on the national front remain the same and we are prepared for all possible outcomes - from a March Budget and a May election or a possible early election and no Budget at all. Of course, it goes without saying that we have a good relationship with all sides of politics and are ready to work with whomever forms Government post-election.
Most of you reading this will be well aware of the chronic problems facing our sector - they didn’t happen overnight and they will take time to fix. And that is going to be a major focus of 2025.
Whether it's skills or migration, tourism or aviation, short-term rental or spiralling energy costs - these are issues Accommodation Australia will be focused on in the lead up to the election and beyond. They are the issues which make a real difference to our members and the broader travelling public.
I trust you have had a chance to liaise with your state or territory accommodation managers over the past year and if not please don’t hesitate to reach out to them in 2025. They have been working hard with their state advisory committees and member events to ensure your businesses are supported but your formal or informal contributions are invaluable to help with our collective advocacy efforts.
I hope you find the first Key News Update of the year useful and I ask that you support our corporate partners and suppliers listed in the update.
All the best for a successful 2025 and please reach out to me or your state accommodation manager throughout the year.
Kind Regards
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James Goodwin
Chief Executive Officer
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By Jenny Lambert, National Policy Director | |
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With the federal election now on the near horizon, in the last few months Accommodation Australia has been updating its key policy issues to take forward to both parties within the election context. Even though it is not very likely that the Federal Budget scheduled for March will go ahead, the AA’s pre-budget submission, which can be seen here, provided a useful mechanism to bring all of our policies together. Labour force issues, including skills and migration head up the policy needs list, as well as issues relating to tourism, taxation, aviation and energy.
In December, the government released the Consolidated Skills Occupation List (CSOL) that will enable employer sponsorship of temporary migrants paid between the Core Skills Income threshold (previously TSMIT) of $73,150 and $135,000 pa. The list, which will also apply to the sponsorship of permanent migrants under the Employer Nomination Scheme, was mostly good news for our industry, with Hotel Managers, Hotel Service Managers (Exec Housekeepers), Cooks, Chefs, Pastrycooks and Finance Managers remain accessible for sponsorship. Of the occupations we advocated for, the two that are missing are restaurant managers and security managers.
Earlier this month, AA CEO James Goodwin and I met with the Department of Home Affairs to discuss key issues on migration raised in the pre-budget submission. It was clear that outcomes from last year's regional migration review (to which AA made a submission) will not be seen this side of the election. Issues such as the concern that restaurant managers are no longer available for sponsorship, improving the processing of inter-company transfers, reducing the Skilling Australians Fund levy and broadening the regional definition used for specified work of working holiday makers were also discussed.
Action on short term rental accommodation continues, with the Victorian 7.5% levy having commenced on 1 January 2025. The ACT government has now established a process of consultation for a proposed 5% Short Term Rental Accommodation levy to apply from 1 July 2025. Although the proposal may not be the final position, the ACT government's statement indicates that the levy will apply for stays of less than 28 days and not apply to hosted accommodation or to commercial residential premises such as hotels. boarding houses, residential parks, and backpackers' accommodation. AA ACT has made a submission, taking the opportunity to point out that a levy is not the most effective mechanism to convert STRA properties to long term rentals and that capping the number of days and effective enforcement is a better approach.
The latest data for apprenticeships released late last year showed that for the year to June 2024 of the seven categories of trade apprenticeships used by the NCVER, only food trades (including cooks, butchers and bakers) had less apprentices in training as at June 2024 compared with 2020. Compared with more than 10,000 food trades commencements in 2014, and 9,060 in 2022 (when the Boosting Apprenticeship Incentive was in place during COVID), in the 12 months to June 2024, only 5,905 commenced. In at least some positive news, commencements for food trades apprenticeships in 2024 were 13.5% better than 2023 when there were only 4,980 commencements. The data illustrates the success of the substantial subsidies available during COVID, and the dramatic fall coinciding with the drop in financial support. Certificate III hospitality traineeships fell by a dramatic 35% in the year to June 2024 and it is expected the will decline even further given the employer incentive was discontinued on 30 June 2024.
Last week the Opposition Leader Peter Dutton announced that the Liberal National Coalition if elected would allow small businesses (up to $10 million in turnover) to claim up to $20,000 in business-related meal and entertainment expenses as tax deductions and that these not be subject to Fringe Benefits Tax. This policy change has long been sought by the Australian Hotels Association who welcomed the announcement. Large businesses have always been able to get around the tax and FBT rules by offering in house catering but for small businesses, client and worker relationships are critically important and are often best cemented over a meal or in a social setting. It is hoped that both parties take forward the change in taxation treatment of entertainment expenses as it would not only be a major stimulant for spending in hotels across the country, but also a major benefit to small businesses in all industries who use this type of expenditure to improve their relationships with customers, suppliers, investors and staff.
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The STR data for the calendar year 2024 is showing that the Australian average occupancy and Average Daily Rate for 2024 were both up compared with 2023. The average occupancy in the month of December across Australia was 69.8% compared with 68.5% in December 2023, and the Average Daily Rate was 1.3% higher at $265.27 compared with $261.95 in December 2023. Revenue per available room in December 2024 was $185.21, an increase from $179.31 in December 2023. For the year to December 2024, the average Australian occupancy rate was 71.3% compared with 69.5% in 2023. The rise in the ADR over this period was only 1.1% to $239.65, which remains below the inflation rate. Growth in revenue per available room increased from $164.88 in the year to December 2023 to $170.87 in 2024. Occupancy rates for calendar 2024 were up in all States and Territories, with particularly strong performance in WA followed by Queensland and Victoria. The same can't be said for the ADR changes, with falls in ADR in Tasmania, NT, ACT and Victoria. In contrast to the rise in occupancy rates in Australia, New Zealand continues to struggle, with an occupancy rate for the year at 67.1% compared with 68.0% in 2023. ADR for the year was also down, being NZD226.83 in 2024 compared with NZD228.49 in 2023.
The graphs below derived from the STR data show the performance of occupancy and ADR across the full calendar year. As can be seen, occupancy rates were better than 2023 in every month, but the average ADR improved only in February and March and then finished well up on last year in October to December.
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Information provided by STR | |
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eeger is changing the future of Tourism, Hospitality, and Travel careers in Australia. It’s Where People People Grow!
Managed by Accommodation Australia on behalf of the Tourism, Hospitality, and Travel industries and this project received funding from the Australian Government via Austrade, eeger is an industry-led platform for the visitor economy, aiming to:
- Serve as a central source of information for education, training, and careers in the visitor economy
- Connect job seekers with employers across Tourism, Hospitality, and Travel
- Provide education and training opportunities as well as career pathway information
- Offer businesses in the visitor economy insights and resources to help them advertise jobs and find employees.
Join our pre-launch registration to stay up to date on industry and career opportunities at eeger.com.au!
Accommodation Australia is working closely with various industry organisations across Tourism, Hospitality, and Travel to create eeger.
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Accommodation Australia is hosting numerous events across the country. Please visit the links below for updated list of events in each state/territory. | |
Other events include Hotel Market Updates across Australia. Please keep an eye out for the calendar of events from your state /territory representatives. | |
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Marching forward to close the gender super gap
It’s International Women’s Day on 8 March. As a society, we’ve made lots of progress toward gender equality. But Australian women are still retiring with 25% less super than men.1
For International Women’s Day on March 8, Hostplus will host two webinars on improving women’s financial wellbeing. Members can sign up for these webinars and plenty more throughout the year at hostplus.com.au/webinars.
Click here for more information.
1 An update on superannuation account balances, ASFA, November 2023
The information in this email is general advice only and does not take into account your personal objectives, financial situation or needs. You should consider if this information is appropriate for you in light of your circumstances before acting on it. Please read the relevant Hostplus Product Disclosure Statement, available at hostplus.com.au before making a decision about Hostplus. For a description of the target market, please read the Target Market Determination, available at hostplus.com.au Issued by Host-Plus Pty Limited ABN 79 008 634 704, AFSL 244392 as trustee for the Hostplus Superannuation Fund (the Fund) ABN 68 657 495 890, MySuper No 68 657 495 890 198.
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Make Sustainability a Top Priority in 2025
Sustainability is not just a buzzword — it’s a business essential. Booking.com's 2024 study confirmed that sustainable travel is important to 83% of travellers. Is your tourism business prepared to meet your visitors’ expectations?
The Strive 4 Sustainability Scorecard, proudly supported by Tourism Australia, offers you a valuable opportunity to gain insights, improve operations, and strengthen your brand.
Did you know nearly 600 businesses have signed up for the Scorecard? The program is open to accommodation providers, offering tailored support to help hotels, resorts, lodges, and campsites enhance their sustainability practices. Whether you operate a boutique B&B or a large-scale property, the Scorecard is designed to help you asses your business practices and guide you as you start your sustainability journey.
Stand out in a competitive accommodation sector—begin your sustainability journey by applying for the Strive 4 Sustainability Scorecard today.
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CLEARSIGHT - IHS has significantly invested in cutting-edge digital infrastructure to capture, analyse, report, and act on key business insights. By integrating data from various areas, IHS provides a comprehensive, real-time, 360-degree view of operations
The IHS Clearsight platform enhances operational efficiency, mitigates risks, and improves facility traceability by leveraging predictive and operational analytics to proactively detect and address issues, leading to better site performance and management.
Click here for more information.
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