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Why the hotel sector is booming – A rapid increase in Tourism means more hotels!

Hotels are the places we stay when we travel on holiday or when we just want a weekend away in the city, or if we’re just staying overnight for business travel.

Although the need for hotels hasn’t changed, they are still viewed as a place of accommodation, rest and relaxation for any type of travel or stay purposes. There has been a rapid increase and high construction demand from many building and construction groups to build more hotels in the hotel sector of construction.

Between 2017-2018 there was half a million tourism increase in Australia, meaning that in 2018, tourism reached a peak of 8.5 million international guests from all areas. These numbers continue to rise throughout 2019 and are said to go up 500,000 each year.

The construction pipeline has been under the pump as the hotel sector has boomed demanding the need for more hotel constructions to accommodate for this tourism increase in Australia. 

Three years ago, Tourism Accommodation Australia (TAA)  began preparing for this tourism boom with an increase in hotel sector demand and a total of 40 new hotels were built across Australia during the first initial tourism observations. 

The TAA anticipates that by the next six years, a total of 272 hotels will be in the construction pipeline and evidently built to accommodate the rapid increase in tourism across Australia. 

Australia is a very popular place to travel and is usually sitting somewhere within the top 5 to 10 travel destinations on peoples checklists. There are many reasons why people want to visit Australia and travel, this is the reason for our rapid tourism increases and the growing demand in the hotel growth construction pipeline.

Why do people want to visit Australia?

Here are the main reasons:

      Want to see more about the Aussie lifestyle

      The beaches, snorkelling, Great barrier reef and beach lifestyle

      Food and Drink

      Nightlight

      Adventure opportunities

      Work

      Study

      Family vacations

For these reasons, in Victoria alone, tourism has skyrocketed at 82 million people in 2019 and construction faces some major designing, planning and building to accommodate for these numbers.

With recent new air service agreements allowing for more flights to be travelling directly to Australia and Victoria, hotel sector growth will continue to boom and more hotels will need to be built not only to accommodate, but also to create an environment that people can grow accustomed to as if they were in their own home. 

Tourism also means that tourists are seeking to learn more about the destination they are travelling to by immersing themselves within the lifestyle and culture of the country and the city they are visiting directly.

One of the major reasons why people choose to travel to Australia and Victoria is to learn more about our fascinating lifestyles, our buildings and architecture. People are attracted to Victorian and Australian hotels because a majority of the upper-end constructions have 5-star energy ratings, they are more sustainable and eco-friendly and with the issues of environmental harm and damage, hotels that inhibit the sustainable qualities, features and installations automatically become more attractive the tourist.

In addition, on a more design and construction level, people respond very well to environments and rooms that break away from tradition and promote better relaxation, calm, open space and modernised, minimalistic furniture and set-ups.

Unlike traditional hotels that are mainly all white with large block-like furniture, hotel construction in Australia has adopted a more modernised and versatile look and approach to construction. As tourists view Australian lifestyle as relaxed, easy-going and simple, our hotels are expected to be a representation of this lifestyle and they are!

Recent hotel constructions in Australia have utilised more home-style and unique furnishings and colours to give a more relaxed and calm feel to the room environment. When travelling, tourists want to see bits and pieces of our city everywhere and in all aspects to give them the full experience of travelling and getting to know our culture, customs, style and design and lifestyle.

Melbourne’s hotels have continued to portray the essence of the carefree, relaxed and easy-going lifestyle of the city throughout the design and construction process and this is what makes Australia so appealing to tourists, which in turn has increased demand on hotel construction.

Tourism is estimated to continue to grow over time and with more than 200 projects that have been lined up in the hotel sector construction pipeline for the next six years throughout Australia, primarily Melbourne and Sydney, tourists will continue to visit Australia and immerse themselves within our unique, relaxed and home-style hotels and truly experience the Australian lifestyle.