Margaret River is a regional hotspot in Australian tourism, presenting an exciting opportunity for savvy investors.
The Margaret River region is located a comfortable 3.5 hours' drive south of Perth ans boasts an extensive coastline with 120 kilometres of beaches, bays and rocky points with popular surf spots and opportunities to spot whales. The region boasts natural icons such as the tranquil waters of Geographe Bay, the ancient cave system carved beneath the Leeuwin-Naturaliste Ridge, the breathtaking Karri forest and world-class food and wine region has more than 55 square kilometres under vine and over 138 wineries.
Tourism in the Margaret River area has been on an upward trajectory over the past five years with growth in visitation increasing at an average rate of 13.7% per annum and with a high proportion choosing to stay overnight.
Margaret River Tourism Growth 2013 - 2017
All visitation - 13.7%
International visitation - 6.9%
Domestic visitation - 14.5%
Overnight stays - 16.6%
Note: The Margaret River Regions (which includes the City of Busselton) differs from Margaret River (as the town or Shire).
Currently airport access to the region is through the main airport at Perth, however this is set to change with a dedicated airport in Busselton, just a half hour drive to the Geographe/ Margaret River wineries. The Busselton-Margaret River Airport is currently undergoing a transformation with a $69.7 million project to facilitate interstate flights to Margaret River from destinations such as Melbourne and Sydney, and international passenger and freight opportunities to South East Asia and China.
A range of accommodation can be found in Margaret River region with the most significant being holiday homes and hotels. Together these two property types account for more than 60% of nights spent in the region. Hotel and serviced apartment properties have experienced revenue per available room (RevPAR) growth increasing on average by 3.9% per annum. Higher room rates have been the primary driver of growth with average daily rates (ADR) increasing 2.9% per annum, up from $141 in FY12 to $159 in FY16. Margaret River properties achieve an 11.5% ADR premium when compared to the total South West Tourism Region of Western Australia.
Margaret River: HMSA Historical Trading Performance FY12 to FY16
|FY13||63.8% (13.5%)||142.64 (1.1%)||91.0 (14.7%)|
|FY14||55.3% (-13.3%)||134.10 (-6.0%)||74.2 (-18.5%)|
|FY15||58.3% (5.4%)||158.90 (18.5%)||92.6 (24.9%)|
|FY16||58.3% (0.0%)||158.50 (-0.3%)||92.4 (-0.3%)|
Continued investment into the Margaret River hotel and tourism region is expected against the backdrop of strong visitation, new and improved direct airport access and positive accommodation operator performance. The notoriety of the region as a producer of premimum wine will also stand it in good stead as affinity with local producers grows in line with higher consumption, particularly in Asia.