Despite hotel visitor nights continuing to grow nationally, RevPAR in the year to June 30th 2019 declined in most of the country’s major markets. Growth in visitor nights has been offset by new supply and thus occupancy rates have fallen and hoteliers have responded by dropping room rates. Hobart and Canberra were the only major markets to record positive RevPAR growth in the year to June 2019.
A weaker AUD will continue to support growth in international visitors and the amount they spend in Australia, while also encouraging Australians to travel domestically rather than internationally due to stronger purchasing power at home.
Importantly, the depreciation of the Australian dollar will likely persist over the medium-term outlook period, meaning that the AUD from 2019 to 2024 will be weaker than the average for the preceding five years therefore encouraging more tourism.