TDP Experience Perth - Tourism Western Australia

Accommodation
The Perth region is currently served by range of accommodation options including
hotels, serviced apartments and backpackers, most of which centre around the
CBD and Northbridge areas. Despite a range of accommodation stock, there
is seen to be a chronic under supply of accommodation in the region. This
under supply in accommodation has been driven mainly by significant increases in
demand, particularly amongst business travellers. These increases in demand have
resulted in Perth having some of the highest occupancy rates of any city in the
world which has both reduced the availability and affordability of accommodation
for leisure travellers to the region.
As a result, stakeholders are unanimous in their view that the region requires
fresh and varying styles of accommodation to suit different traveller needs.
Most importantly, it is felt that work is needed to ensure that the city is able
to offer a range of quality accommodation at different price points, such as
an internationally regarded five star hotel and self-contained apartment style
accommodation on the edge of the city.
In addition to the need to develop additional stock, there is also seen to be
an urgent need to refresh existing accommodation stock in the region. High
occupancy rates due to increased demand have resulted in establishments
choosing not to take their room’s offline in order to upgrade them. This has
resulted in some accommodation stock being old and tired and in significant need
of rejuvenation.
Despite these needs, it must also be acknowledged that there are a number
of significant impediments to both refurbishing existing accommodation and
developing additional accommodation in the Perth region. Firstly, economic
growth in WA over the last decade has been substantial, driven largely by the
resources sector which has created high competition from the corporate sector
for what limited amount of land is available in the Perth CBD area. Secondly, this
strong economic environment has also increased labour and building costs, which
have in turn made it cost prohibitive to either refurbish existing accommodation
or obtain an adequate return on investment from developing additional
accommodation. As a result, investors and developers are encouraged to develop
property for commercial business leasing purposes, rather than accommodation
purposes, due to the higher economic returns achieved.
While these macro-economic factors may limit opportunities, the development and
rejuvenation of accommodation stock in the Perth region is still seen as an urgent
priority. As part of addressing this priority, the release of hotel sites in areas of
precinct development, such as the Perth Waterfront, Northbridge Link, Riverside
in East Perth and China Green in Subiaco is seen as essential. More detail on these
precinct developments and their significance can be found in the amenities section.
Experience Perth
Tourism Western Australia | Tourism Development Priorities
13