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We entered the second year of Accommodation Australia on 1 July and with much of the hard work behind the scenes now behind us, it’s a new period of exciting growth and opportunities as we continue to deliver on our purpose is to be an influential advocate for a better future.
I was pleased to welcome new CEO James Goodwin in September. James is an experienced association professional and comes to us from the Australian Airports Association. His expertise and networks with the aviation sector already providing stronger links between tourism, accommodation and the aviation industry.
I’m encouraged by how James has used the first few weeks to meet as many members as possible before now focusing on raising the profile and presence of the accommodation sector with the media and decision-makers on the national stage. As a former member of the Federal Parliamentary Press Gallery and as a government relations executive he is certainly well regarded in Canberra and well placed to represent our issues.
You tell me that workforce challenges remain the biggest concern, and the AA has been prioritising both policy and advocacy resources to this area. Whether attracting or retaining staff, migration and visa frustrations or embedding the industrial relations reforms it is clear the regulatory environment is getting increasingly complex. Your state Division is here to support you with practical advice and guidance while AA National is working to ensure our sector’s views are heard as part of the migration review and Occupations Shortage List.
I recently spoke at the HICAPs Conference and although encouraging to see the recent growth in the tourism recovery, it’s clear international tourists have still not returned to pre-pandemic numbers. The profitability of our hotels and motels has also not returned but AA is continually advocating for you – reminding everyone that lower room rates at a time of higher operating experiences is squeezing margins and the viability of our sector.
I take the opportunity to thank members for your support. It is encouraging to see the reputation and standing of our association as we work together to lead sustainable, enduring growth for our members.
Regards,
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Message from the CEO's Desk | |
This is my first column in the new role and I’m proud to be a part of the exciting and dynamic accommodation sector. I have been struck in my first few weeks by the passion of those in the industry – whether they have been in their roles for only a few weeks or a few decades – there’s a definite pride in what you do.
As I have met with members around the country there are consistent themes about concerns and challenges you’re facing. Workforce challenges including attracting and retaining the right staff, embedding the new industrial relations reforms and negotiating changes to the migration and visa systems are top of mind issues. These have been the core policy and advocacy priorities and thanks to our Policy & Research Advisor Jenny Lambert who has taken the lead on our evidence-based approach to government. You can read more detail below.
Recent elections in Queensland and the ACT mean we will need to build or strengthen our relationships with new Ministers on our key issues and I’m encouraged to see our multi-party approach to advocacy means we are well placed to connect with and be heard by our elected officials. On the national stage, we have two relatively new Ministers in key portfolios – employment and home affairs – and I’m pleased we were able to meet with them early on to discuss our issues. AA is now working on its Federal Election strategy including a pre-Budget submission with an expected election by May 2025. Growing international and domestic tourism whilst supporting the sector through the green energy transition will be key themes you’ll see from AA in coming months.
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In the past month we welcomed Emilie Howe (pictured right) as the new Project Manager for the Austrade-funded Hospitality, Tourism, and Travel Employment and Skills platform. Emilie is based in Sydney and was previously CEO of the Visitor Experience Training (VXT) - an industry training organisation established by the Tasmanian Hospitality Association (THA) and Tourism Industry Council Tasmania (TICT). In a busy first few weeks, Emilie coordinated an Advisory Committee meeting which discussed industry sectors and subsectors, key industry content, including existing content for the platform, and important dates. The platform is expected to have an industry launch in November with full public launch in February 2025. Welcome on board Emilie!
Thank you for making me feel welcome and I look forward to representing you to decision-makers as we work together to grow a better future for the accommodation sector.
Kind Regards
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James Goodwin
Chief Executive Officer
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By Jenny Lambert, National Policy & Research Advisor | |
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In the run up to the federal election, the last three months has been as much about behind-the-scenes engagement as it has about public statements and submissions.
Migration remains top of the list of priorities for members, and discussions with government including the Department of Home Affairs have continued in order to ensure members retain access to important sponsorship opportunities to fill key skill gaps. There has been no announcement as yet on the much-awaited Core Skills List, although we are aware that Jobs & Skills Australia have finalised their recommendations. As you may recall, JSA classified our key occupations into either a category that requires further consultation (including cooks, chefs, hotel & motel managers, finance managers), or a category that indicates that JSA is confident that the job roles will not be included on the final list (such as restaurant manager). Occupations not on the final core skills list will not be eligible for migration sponsorship unless the salary level is over $135,000.
The final list will not only reflect whether occupations are in shortage but also it will assess whether employment and migrant outcomes for those occupations have been positive. Within this context, Restaurant Managers are one of the most vulnerable of our key occupations to not be included on the final list. This situation has been reinforced by the latest shortages analysis issued by JSA this month indicating that restaurant managers are not in shortage in any state or territory except NT. The full summary for our key occupations is below.
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The review of apprenticeship incentives which was due to report at the end of August has still not seen the light of day. As at the 1st of July 2024, the employer incentives for taking on a hospitality trainee were removed, with support now limited to the cooking trade apprenticeship, where the number of commencements continue to fall. There is a lot of concern that the review will not result in any improvement in incentive amounts, let alone a reinstatement of the incentives we have lost. Increasingly the hospitality industry, including our own accommodation sector, is becoming less engaged with the formal training system, and relying instead on in-house or on-job training and some short courses.
Action on short term rental accommodation continues, with the Victorian government finally passing its legislation to introduce a 7.5% levy from 1 January 2025. Although successful advocacy by AHA/AA ensured the levy did not apply to commercial accommodation, there may be some business models used by members relating to apartments that will be caught up in the levy as the legislation relies on definitions used in the tax system for GST purposes, and there are specific rulings that aid in understanding the definition. See this State Revenue page for more information on how a hotel, motel, hostel and boarding house has been defined. Many serviced apartments will also be exempted if they are managed in a similar way to a hotel. However, according to a relevant tax ruling on the definition, some apartments which are owned by separate individuals, even if managed by an on-site agent, may not be exempted.
In August, AHA and AA met with the Chair of the federal government's housing advisory body to discuss the impact that the increase in short term rental accommodation has on housing availability and affordability. Using our national policy as a summary of the key issues, we highlighted the international evidence available to confirm the link, and also the importance of a balanced approach to regulation of STRA. We encouraged the federal government to strive for a national regulatory framework to ensure action is taken in all states and territories rather than the current piecemeal approach.
The Department of Climate Change, Energy, Environment and Water has been undertaking consultation on extending the current Commercial Building Disclosure Program using the NABERs rating system to cover buildings such as hotels. Further information on the proposal can be found here. In the same way as the NABERs rating can impact government decisions to rent space, the concern in this extension is that it could impact government procurement decisions for accommodation. As part of the consultation process, AHA and AA have made a joint submission to follow up recent meetings on the issue. Our submission can be viewed here.
Regards,
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According to the latest STR data, average occupancy In September across Australia was 72.7% compared with 72.1% in September 2023, but repeating the performance of the last three months, the ADR was lower at $232.86 compared with $237.25 in September 2023. Revenue per available room in September 2024 was $169.29, a decrease from $171.04 in September 2023. For the year to September 2024, the average Australian occupancy rate was 70.4% compared with 68.7% in 2023. The rise in the ADR over this period was a modest $0.69 to $234.59, which is well below the inflation rate. Growth in revenue per available room increased from $160.69 in 2023 to $165.05 in the year to September. Occupancy rates for September 2024 were up in most of the capital cities except for Sydney.
The graphs below derived from the STR data show what great months February and March 2024 were, both in occupancy rates and ADR. In all other months this year, the occupancy rates have held up, but ADR has been below 2023.
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Information provided by STR | |
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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Lower fees and costs for Hostplus members
Hostplus has removed one of the fees that forms part of members’ administration and investment fees and costs. Lower investment fees and costs also apply to the super fund’s Balanced, Australian Shares and International Shares investment options. That means more money in members’ accounts, where it belongs. Read more.
Find out more at hostplus.com.au/SEN
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Did you attend the NoVacancy Expo at the Sydney Convention Centre in September? Ecotourism Australia’s CEO, Elissa Keenan, and Head of Sustainability and Business Operations, Nadine Schramm were there to connect with hotel and accommodation providers, discussing how Ecotourism Australia can support their sustainability journeys.
Elissa also joined a panel of industry leaders to explore the topic: What ecotourism can teach us about enhancing guest experience and sustainability. It was an insightful exchange on the future of sustainable hospitality.
Ready to start your sustainability journey? Find out more.
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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.
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