Kangaroo Island is a regional hotspot in Australian tourism, presenting an exciting opportunity for savvy investors.
Kangaroo Island is one of the most notable destinations in South Australia. It is a place of pristine wilderness and world class food and wine experiences. It is also home to the globally renowned Southern Ocean Lodge and Flinders Chase National Park.
Visitation to Kangaroo Island has been growily steadily with 216,000 visitors in 2019. In 2019, international visitors accounted for just over one quarter of nights spent in the Kangaroo Island tourism region.
Kangaroo Island Tourism Growth 2015 to 2019
All visitation - 6.0%
International visitation - 5.7%
Domestic visitation - 9.0%
Overnight stays - 1.6%
Visitor arrivals into Kangaroo Island airport have been steady over the past five years and are set to increase following investments in airport infrastrucure to accomodate larger aircraft and the addition of QantasLink flights which commenced in December 2017. This resulted in passenger movements through the airport surging 12.3% year-on-year.
Visitors to Kangaroo Island stay in a variety of holiday homes in the absence of significant hotels and resorts. With regards to commercial accommodation, Kangaroo Island's accommodation market has strong revenue per available room (RevPAR) growth increasing on average by 8.9% per annum over the four years to 2016. Accommodation performance data is not available on Kangaroo Island for FY17 and FY18 due to an insufficient sample size.
Kangaroo Island: HMSA Historical Trading Performance FY12 to FY16
|FY13||52.8% (1.6%)||$214 (-1.8%)||$113 (-0.3%)|
|FY14||55.8% (5.7%)||$271 (26.4%)||$151 (33.6%)|
|FY15||51.3% (-8.1%)||$183 (-32.6%)||$94 (-38.0%)|
|FY16||56.6% (10.4%)||$282 (54.5%)||$160 (70.5%)|
Increased investment into Kangaroo Island's hotel and tourism market is expected, with a number of infrastructure projects currently underway and some large-scale hotel projects planned or being marketed for sale. Three years ago, the South Australian Government committed to a phase out of stamp duty on commercial property transactions, with the aim of attracting domestic and international investment.