East Coast Tasmania is a regional hotspot in Australian tourism, presenting an exciting opportunity for savvy investors.
The East Coast of Tasmania is a destination boasting a diversity of landscapes and experiences for visitors. It is home to the renowned Freycinet National Park, Wineglass Bay and Saffire Freycinet luxury lodge. It is a destination where visitors can experience natural beauty, world class food and wine experiences in a beautiful, relaxing environment and truly feel like they can get away from the pressures of the every day.
Visitation to the East Coast of Tasmania has been on an upward trajectory over the past five years with growth in visitation increasing at an average rate of 11% per annum with 1.35 million visitor nights being spent in the destination in 2017, up from 901,249 in 2012.
East Coast Tasmania Tourism Growth 2013 to 2017
All visitation - 11.0%*
International visitation - 22.4%
Domestic visitation - 9.0%
Overnight stays - 8.6%
*This figure includes day trips, representing a lower growth figure and a larger proportion of visitors to Tasmania.
Visitor arrivals into Tasmania’s main airport, Hobart International Airport, have been increasing on average by 5% each year, boosting visitation to the region. There will soon be the potential for direct flights from Asia with a runway extension completed in February 2018 and discussions with international carriers underway. Launceston Airport - the winner of Australia’s “Major Airport of the Year” for three consecutive years - also services the East Coast well. Additional flights from more destinations will mean increased demand for tourism infrastructure and accommodation options in the East Coast of Tasmania
Traditional accommodation operations including hotels, motels and serviced apartments (HMSA), have experienced strong revenue per available room (RevPAR) growth, averaging 6.8% per annum over the four years to FY16. The higher room rates that operators have been able to achieve have been the primary driver with Average Daily Rate (ADR) increasing 3.9% per annum, up from $160 in FY12 to $186 in FY16. This represented a 22% ADR premium when compared to the accommodation providers in the Hobart Tourism Region.
East Coast Tasmania: HMSA Historical Trading Performance FY12 to FY16
|FY13||37.5% (-7.2%)||$167 (4.1%)||$63 (-3.3%)|
|FY14||41.2% (9.9%)||$168 (1.0%)||$69 (11.0%)|
|FY15||40.5% (-1.7%)||$183 (8.9%)||$84 (13.4%)|
|FY16||45.2% (11.6%)||$186 (1.6%)||$84 (13.4%)|
Continued interest in Tasmanian hotel and tourism property is expected, with state-wide economic growth continuing to outpace the national annual average, driven by positive population growth, an active consumer sector and strong tourism numbers. This backdrop of strong tourism arrivals, airport expansion and positive accommodation performance bodes well for future accommodation and tourism infrastructure investment in the region.