A report conducted by Tourism Accommodation Australia (TAA) NSW reveals that many regional accommodation operators have been struggling in recent years, and fall further behind, if the Government ignores the need for significant investment in regional tourism and infrastructure.
The report titled Addressing the poor performance of the Accommodation sector in regional NSW –shows regional NSW’s share of the State’s visitor nights has fallen to 45 percent in 2012-13, and is predicted to decline to 40.2 percent by 2022-23.
The poor performance of NSW regional operators is in stark contrast to most city hoteliers, and will make the NSW Government’s 2020 objective of doubling the State’s overnight visitor expenditure challenging unless the issues impacting regional NSW are addressed.
It’s a concern for tourism NSW as the figures show six in ten visitors to regional NSW are domestic day trippers. That means NSW is not maximising regional visitor expenditure. The NSW situation reflects a national trend towards declining regional performances.
TAA acting chief executive officer Carol Giuseppi said it was concerning that the tourism numbers were continuing to decline even before the GFC. She added the NSW government’s projected tourism numbers have not been forthcoming due to a dwindling regional NSW market.
“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,” she added.