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STR: regional hotel occupamcy hit by bush fires
Bush fires across New South Wales and Victoria have sent hotel occupancy and revPAR plunging in rural areas, although the hotel industry in the big cities has weathered the storm so far.
Hospitality industry analysts STR says there was a 14.7% decline in room nights sold in December in the Sydney Drive Regional market, which covers a two-hour-drive radius of Greater Sydney.
Occupancy was down nearly 15% to 52.2% and revenue per available room is down by nearly one-third.
"Because the physical impact of the bushfires has been predominantly across the Great Dividing Range of New South Wales and Victoria, we’ve not yet seen significant demand decreases in the major city areas of Australia," said Matthew Burke, STR’s regional manager – Pacific.
"However, these regional locations are popular tourist spots for family holidays in vacation homes, hotels and holiday parks. The post-Christmas period is peak season, when so many local businesses rely on the transient tourist trade."
STR says across New South Wales the situation is mixed, with the NSW North Coast submarket showing increased demand and higher average daily rates.
STR notes the devastation on Kangaroo Island which will have a direct impact on tourism there for some time due to the number of destroyed or heavily damaged properties.
"Certainly the focus is on the wellbeing of those dealing with incredible devastation around the country," Burke said. "We also want to do our part to keep the industry informed of hotel performance developments particularly in the recovery phase," Burke added.
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