The New South Wales government has set out plans to dramatically increase the impact of tourism on its regional economy.
A target of growing the sector to annual revenues of AUD91 billion by 2035 has been set out. To achieve this, a 40% increase in scale against the previous target, the government says that the Australian state will need around 40,000 more hotel rooms. In addition, new business event facilities will be needed.
A co-ordinated approach
As part of the strategy, the NSW government is focused on growing inbound air connections. A terminal at Newcastle Airport, opening in 2025, the opening of a new Western Sydney airport in 2025 and growth at other airports will add capacity to welcome to 8.5m more visitors every year. Talks with airlines should lead to new routes and capacity being added, and the hope is that prices will fall, making Australia a more attractive destination for European visitors.
The growth is expected to create 150,000 new jobs. However, that in itself will create challenges, as the government expects there will be “significant worker and skills shortages” in key roles, which will need to be addressed.
New South Wales premier Chris Minns commented: “NSW is an unbeatable hotspot for tourists across the globe. People coming to New South Wales for a holiday is at an all time high, but this review shows there are opportunities to grow it even more, partially due to more airports opening and more flight routes being secured. We are ready to put our shoulder to the wheel and attract even more travellers to NSW, boosting local business and creating thousands of jobs.”
Tourism minister John Graham added: ““This review dares us to dream big, but it also outlines the hard work needed to meet the opportunity. To reach this ambitious new target we need to build more hotel rooms, attract and train more workers and create and market the experiences that connect visitors with the culture, nature and people of NSW.”
Current pipeline falling short
The demand for hotels to meet the government plan will require a 41% increase in hotel rooms across the state, whose major cities are Sydney, Canberra, Newcastle and Wollongong. The Sydney market is seeing new brands arriving, such as Accor’s Handwritten Collection, which recently opened Hotel Woolstore 1888 – with more brands including 25hours, Rydges, and Waldorf Astoria following.
In the planning phase is a Moxy in Pitt Street, Soho House Sydney, a Lyf co-living development and 254 room NH Collection Sydney, expected to launch at the end of 2025. However, these alone will not be sufficient to meet the demands of the new tourism growth plan, and a whole new phase of hotel development is now needed.
