Big smoke woos tourists, regional NSW needs new game plan
A new report reveals regional accommodation operators are struggling and in need of government intervention to aid significant investment in tourism and infrastructure or risk losing out on achieving NSW’s 2020 objective.
The research – Addressing the poor performance of the Accommodation sector in regional NSW – commissioned by Tourism Accommodation Australia (TAA) NSW reveals regional NSW’s share of the State’s visitor nights fell 45% in 2012-13 from its base of around 50%, and is expected to further decline to 40% by 2022-23.
According to TAA, the results are in stark contrast to most city hoteliers who are reporting growth, and will make NSW Government’s 2020 objective of doubling the State’s overnight visitor expenditure for regional operators “challenging”.
Over half of regional NSW visitors are domestic day trippers, which TAA said means “the NSW situation reflects a national trend towards declining regional performances”.
In 2005-06, regional Australia made up to 61.2% of all tourist visits, dropping a fraction to 60% in 2012-13 but overnight visitor stays has declined from 50.5% to 48.1% over the same period which TAA’s interim ceo claiming the accommodation sector has been affected by the “increasing attractiveness and affordability of overseas destinations, the lack of perceived reasons to visit regional destinations, poor infrastructure and a reduction in business events”.
“The NSW Government adopted a goal of doubling overnight visitor expenditure from $18.3 billion in 2009 to $36.6 billion in 2020, but this target is rapidly getting out of reach, because half of the expenditure has historically come from regional NSW, a market which is expected to decline steadily without serious remedial action,” Giuseppi said.
Giuseppi outlined a strategy addressing three major challenges – improving the reason to visit, diversifying visitor profiles and addressing barriers to investment.
“There is a need to attract more overnight visitors to regional NSW. More infrastructure projects are required, day trips need to be converted into overnight stays, more major events need to be developed, and visitors need to be encouraged to stay longer. While many destinations enjoy strong weekend occupancies, the decline in business-related travel has particularly affected mid-week trading in many centres.
“Investment in regional destinations will be essential if NSW is to reach the 2020 tourism targets, and – even more importantly – help grow employment, which is now beginning to feel the impact of the mining sector slowdown.”
While the NSW Government has committed $110 million toward a Regional Tourism Infrastructure Fund, its projects have not yet been defined.
“In 2012 The NSW Government established the Visitor Economy Taskforce which produced a report aimed at doubling overnight visitor expenditure to NSW by 2020,” Giuseppi said.
“The Taskforce committed to developing a NSW Regional Business Events Strategy in its first year. It is now year two and the industry has still not seen the Regional Business Events Strategy.”
“There is limited scope for most regional operators to reduce costs further, given the continuing high level of employment-related costs, so the aim must be to generate increased demand through greater investment in infrastructure development, marketing and events in regional areas.”
“Governments need the regional tourism and hospitality sector to thrive to ensure that employment opportunities grow and local economies flourish, but at the moment there is a serious gap between intent and delivery” Giuseppi said.
Pic: Crowne Plaza Hunter Valley
Email the Travel Weekly team at traveldesk@travelweekly.com.au
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