The Great Ocean Road is a regional hotspot in Australian tourism, presenting an exciting opportunity for savvy investors.
The Great Ocean Road begins 90 minutes from Melbourne's city centre, spanning 243 kilometres from Torquay to Allansford. This diverse and dramatic region is home to the world-class surf at Bells Beach and the craggy limestone spires of the 12 Apostles.
Tourism to the Great Ocean Road region is currently at the highest level ever recorded with 6.1 million visitors in 2019 and having recorded strong growth, averaging 9.2% per annum over the past five years.
Great Ocean Road Tourism Growth 2015 - 2019
All visitation - 9.2%
International visitation 10.1%
Domestic visitation 7.4%
Overnight stays - 5.1%
The Great Ocean Road is serviced by Melbourne Tullamarine Airport. Unbound by a nightly curfew, international passenger movements through Melbourne Airport have increased by 49.4% over the five years to FY18. Melbourne is expected to be a primary beneficiary from the recent open skies agreement with China.
A range of accommodation can be found along the Great Ocean Road with the most significant being holiday letting, caravan and camping and friends and relatives properties. Together these property types account for more than 74% of nights spent in the region. Hotels and serviced apartments have experienced modest revenue per available room (RevPar) growth increasing on average by 4.2% per annum. Higher room rates have been the primary driver of growth, with ADR increasing 2.47% per annum, up from $133 in 2013 to $152 in 2018. Occupancy levels averaged 74% in 2018 which represents a high level for a regional destination.
Great Ocean Road: HMSA Historical Trading Performance FY13 to FY18
|FY14||71.3% (3.6%)||$138.1 (3.7%)||$98.50 (7.5%)|
|FY15||74.3% (4.2%)||$139.3 (0.9%)||$103.50 (5.0%)|
|FY16||76.3% (2.7%)||$145.2 (4.2%)||$110.7 (7.0%)|
|FY17||76.6% (0.4%)||$147.0 (1.3%)||$112.6 (1.7%)|
|FY18||74.0% (-3.4%)||$152.3 (3.6%)||$112.8 (0.1%)|
Continued investment into the Great Ocean Road hotel and tourism region is expected against the backdrop of strong visitation numbers and new and improved visitor infrastructure. There is a significant opportunity to capture a share of the 5.5 million visitors to the area and to entice them to stay overnight.