In a recent report by Deloitte Australia, it has been revealed that visitor arrival figures have grown by a considerable 8.2 per cent in the previous 12 months up until May 2014. This is the quickest the market has improved across a 10-year period, signalling that Australia is in the travel market spotlight.
The Tourism and Hotel Market Outlook paper by Deloitte predicts that arrivals will increase by 5.1 per cent in the next three years. In the same period of time, the number of international visitor nights is expected to similarly increase by 5.2 per cent.
Part of this healthy growth has been attributed to the rise of less expensive airfares provided by Asian airlines who also have greater capacity to offer customers. In addition, the strengthening of the markets in the US and the UK could mean that long-haul travel is becoming more of an option for consumers, along with improved financial confidence and spending ability.
Despite the Australian dollar continuing to strengthen, this has not put off tourists and other types of visitors from making an Australia a sought-after destination. Lachlan Smirl, a representative from Deloitte Access Economics, confirmed that “economic growth is the big driver of travel.”
With an increasing amount of international tourists in key Australian cities, businesses including restaurants and shops as well as hotels are likely to reap financial rewards as tourist spend their cash around the cities.
The research found that hotels are at or near reaching capacity across the seven nights of the weekly period in both Sydney and Melbourne. As hotels receive more guests, so too are stores and restaurants more likely to receive an influx of consumers.
These interesting findings suggest that as the hospitality industry in the country improves, retailing in Australia must match this increasing demand too.