Company and home journey key to tourism restoration: Deloitte

Deloitte published the 2021 edition of its on Friday Deloitte Access Economics Tourism and Hotel Market OutlookThis suggests that hotel operators are expected to recover to 95 percent of 2019 occupancy by 2023.

“The business travel segment will clearly be critical to recovery,” said Adele Labine-Romain, national tourism guide at Deloitte.

“Markets where business travelers make up a relatively large proportion of demand will face major challenges, especially since so many businesses, large and small, have settled in people who connect through technology.”

Deloitte’s forecast follows estimate Job losses of up to 150,000 after JobKeeper expires, although employment returns Prepandemic levels in February and an advanced targeted A $ 1.2 billion support package for the tourism sectorwhich will subsidize 50 percent of the 800,000 domestic flights for selected tourist destinations from the beginning of April.

The report forecast that domestic overnight trips will climb to 113 trips by the end of this year, just below 2019 levels, as COVID-19 remains in control domestically and the rollout of vaccinations continues uninterrupted.

On the same growth path, 125 million domestic trips are expected by the end of 2022 and 134 million trips by 2023.

Projected growth in this sector is likely to be fueled by pent-up demand and increased consumer confidence, which hit a 10-year high in late 2020, due to the pandemic and accompanying government incentives.

Despite the devastating impact of the pandemic on the tourism sector, more than 5,000 new hotel rooms came onto the market in 2020, according to the report. Another 32,000 new rooms are set to be added to the country’s hotels, 40 percent of which are likely to open in 2022.

“With plenty of new inventory and more in the pipeline, hoteliers will face significant headwinds as the average occupancy in the key markets covered in the report is expected to remain significantly lower than in previous years, but remain at 95 percent of that for the year 2019 will recover levels in the final year of the forecast horizon, ”said Ms. Labine-Romain.

“This will be influenced by the new space pipeline, but also by the expected slow recovery in business travel and the gradual return of international visitors.

However, all cities are not expected to recover at the same rate. According to the report, occupancy rates in Brisbane and Perth are expected to return to 2019 levels by 2023, while the Gold Coast, Adelaide, Hobart, north Queensland and west Sydney are expected to recover more slowly.

Canberra and Hobart have had less of an impact due to international border closings, according to the report, with international visitors making up a smaller proportion of their guests at 9 and 17 percent, respectively.

In addition to preparing for a surge in domestic business travelers, hotels in Australia’s major cities need to find ways to encourage local vacationers to fill the void in the short term, the report said.

Business and Domestic Travel Keys to Tourism Recreation: Deloitte

Last updated: April 09, 2021 Published: April 09, 2021

John Buckley

John Buckley is a journalist for Accountants Daily.

Before joining the team in 2021, John worked at The Sydney Morning Herald. His coverage was published in a number of branches including The Washington Post, The Age, and The Saturday Paper.

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John Buckley is a journalist for Accountants Daily.

Before joining the team in 2021, John worked at The Sydney Morning Herald. His coverage was published in a number of branches including The Washington Post, The Age, and The Saturday Paper.

Email John at This email address is being protected from spam bots! You need JavaScript enabled to view it.